One of the most important jobs of the project manager is that of project resource management. Like a carpenter using a saw, like a pilot landing an airplane, like a programmer writing code, ask any project manager and they will tell you that managing the project resources is the day to day work they spend most of their time on. Project resources include everything … [Read more...]
How to Produce a Detailed Estimate
Estimating a project is one of the most important aspects of project management. Projects are by definition temporary endeavors with a defined beginning and end, hence stakeholders need to know how much expenditure they are committing to. Thus, project estimates tend to start before the project even begins and are usually updated throughout the project life … [Read more...]
The Rough Order of Magnitude Estimate
Project estimating is one of the most important aspects of project management. By their very nature, projects have fixed budgets and their owners want to know how much they will cost. Hence, project estimating begins prior to project initiation and estimates are usually updated at important project milestones. A Rough Order of Magnitude estimate, often called ROM … [Read more...]
11 Types of Estimates
Almost every project requires an estimate. Since a project is, by definition, temporary, somebody must approve a budget for it. Which means they must know how much to approve. The available types of estimates can be categorized into the following groups: Accuracy Source of Data Estimating techniques Accuracy In many industries, project estimates start … [Read more...]
Three Point Estimating for the PMP Exam
Three point estimating is a technique which utilizes an optimistic and pessimistic estimate to determine the ideal estimate value for a project task. It is a shoe-in for PMP exam questions, which is not likely to change anytime soon. It allows known risks to be quantified and built in to the project budget. Formula There are two generally accepted formulas for three … [Read more...]
Parametric Estimating for the PMP Exam
Parametric estimating is a guaranteed inclusion on the PMP Exam. This article is assured to give you at least one point (but more likely four or five). Parametric estimating is a project estimation technique whereby a unit rate is used and multiplied by the number of units. For example: A house building project is estimated at $120 per square foot A contractor … [Read more...]
Analogous Estimating
Analogous estimating uses the actual data from a previous project as the basis for estimating the current project. For example, the previous fence cost $75/foot therefore this one should cost about $100/foot. Many different variables can be compared, such as: scope cost budget duration Measures of scale: Size, weight, length, etc. Work units: … [Read more...]
Estimating the Project
In 1986, the NASA Space Shuttle Challenger exploded spectacularly upon take-off in front of one of the largest live TV audiences in history (to that time). The investigation concluded that several tiny O-rings that sealed the rocket booster to the fuel supply failed. These O-rings were about 1 foot in diameter. Just like the tiny O-rings were able to bring down the … [Read more...]
Project Management Tools of the Trade
Carpenters have hammers, plumbers have wrenches, and programmers have computers. But does a project manager have any tools which help them perform their work better, quicker, or cheaper? Absolutely! In fact, if you don't use these tools you will be at a serious disadvantage to other project managers. And if you do, your career will see an order of … [Read more...]
The Components of a Feasibility Study
A project feasibility study is a report that investigates the viability of a project. It seeks to provide its stakeholders with an analysis that results in a go/no-go decision. Feasibility studies are performed in a variety of industries. They are prominent in the oil & gas, mining, or renewable energy industries, or manufacturing industry for new plant … [Read more...]