Cost Estimation for Projects: How to Estimate Accurately

Good cost estimation is essential for keeping a project under budget. Many costs can appear over the life cycle of a project, and an accurate estimation method can be the difference between a successful plan and a failed one. Estimation, however, is easier said than done.

Risk Analysis 101: How to Analyze Project Risk

Before you’re able to analyze the risk in your project, you have to acknowledge that risk is going to happen in your project. By planning for risks, you begin the process of knowing how to identify, monitor and close out risks when they show up in your project.

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Project Management Processes & Phases

If so, it might be time to start implementing proven project management processes and phases at your organization in order to bring your company’s workflow under control. Phases of Project Management. Administrate: Manage the contracts secured in the project.

Ask a PM: How to Get Proper Estimates


Dear Elizabeth: I work in a technical team as a project manager. How do you deal with a team that refuses to estimate how long tasks will take? It is difficult to estimate when the task is too big. Built the behind-the-scenes login features—you can estimate that part.

Risk Management Plan - What is the Process?

Brad Egeland

An ideal way to ensure this is by having a risk management plan so that you can avoid a data breach, which will ruin your IT supply chain up and down. Risk Management Planning What is the Risk Management Process?

How To Be An Estimating Superhero

Girl's Guide to PM

A statistical model for estimating isn’t normally something I’d put in the ‘make my job easy’ box, but I might just have found one that works. Davis, MSPM, PMP and Project Management Superhero. Davis, MSPM, PMP and Project Management Superhero. How reliable is this estimate?”.

How to Evaluate Risk Velocity

Project Risk Coach

Life is filled with risks. Some risks occur slowly. Let’s look at how to evaluate risk velocity and why it matters. What is Risk Velocity? Risk velocity is the time to impact. Think of velocity as an estimate of the time frame within which a risk may occur.

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Analogous Estimation Vs Parametric Estimation


As a Project Manager, doing project ESTIMATION is a key responsibility but how often are we able to deliver the project under budgeted cost and time? What will help in this scenario would be the right understanding of estimation tools and techniques. There are many techniques for project estimation like Bottom-Up Estimation, Parametric Estimation and Analogous Estimation. Comparative details of Analogous and Parametric Estimation.

Project Estimation: Master the Tools and Techniques

Online PM Courses

There are two reasons why Project Estimation is a big deal for project managers. And second, poor estimates are often a primary reason for a project cost or schedule over-run. What is Project Estimation? Why is Project Estimation so hard? The Estimation Knife Edge.

Estimating the Risk

Herding Cats

Risk is everywhere on projects. This risk comes from two types of uncertainty. Aleatory uncertainty, which is the naturally occurring yields variances in the underlying processes. Epistemic uncertainty comes from probabilistic processes that can be addressed with handling responses. The idea of risk and its management and handling is a critical success factor for all software development. Without these estimates, there is no risk management.

Difference between Quantitative and Qualitative Risk Analysis


These uncertainties or risks can prevent us from achieving our project goals or objectives. The more we know our risks, the more we can evaluate and prioritize them timely for: Reducing their probable negative impacts, or. We record these identified risks in Risk Register.

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Software Estimating Resources

Herding Cats

This blog page is dedicated to the resources used to estimate software-intensive systems using traditional and agile development methods. COSMIC Software Estimation Approach,” Alain Abran, ICEAA Workshop, Portland Oregon, June 6?9, Estimating Probable System Cost,” Stephen A.

Your Guide to Accurately Estimating Projects


Estimation is an invaluable tool for anticipating and managing project uncertainties. Accurate project estimates help identify cost and schedule requirements with relative precision, and reduce the risk of running out of time, resources, and budget during a project.

RBS is one more technique for your estimation tool belt!

Kiron Bondale

Project managers need to be comfortable with different estimation techniques. Foundational project management courses will teach you about analogous, bottom-up, parametric and three-point estimating. Estimate the size or effort of that story or work package.

How to Build a Robust Project Risk Culture [8 Steps]

Online PM Courses

A robust risk culture goes beyond having a strong basic risk management process. Some of my readers may hope to influence the risk culture of their whole organization. For you, the right aspiration is to build a positive risk culture within your project.

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The Project Manager’s Guide to Simple Risk Analysis

Online PM Courses

Risk analysis is both easy and hard at the same time. No project manager can get by without knowing how to analyze risk on your project. Risk is important, because it is baked into the nature of projects. Risk analysis is one part of the wider Risk Management process.

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How to Improve Results With Better Risk Statements

Project Risk Coach

Vague risk statements lead to poor risk response planning. When organizations or project teams fail to respond to significant risks (i.e., Risk management starts with identifying risks and writing clear risk statements. Test Your Risk Statements.

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Six Steps of Risk Management

Herding Cats

Risk Management has six steps: Planning risk management - decides how to approach and plan the risk management activities for the project. Performing qualitative risk analysis - prioritizes risks based on their probability and impact of occurrence.

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Principles of Cost and Schedule Estimating

Herding Cats

One of the 4 summary root causes of project performance failures is Unrealistic Cost and Schedule Estimates based on inadequate risk-adjusted growth models. Managing in the presence of uncertainty is standard business practice. IT Risk Management.

How to Talk About Estimates

Herding Cats

What is an estimate? An estimate as a noun is an approximate calculation or judgment of the value, number, quantity, or extent of something. An estimate as a verb is to roughly calculate or judge the value, number, quantity, or extent of. Estimates. IT Risk Management.

Estimates, Forecasts, Projections

Herding Cats

Estimates. An Estimate is a value inferred for a population of values based on data collected from a sample of data from that population. The estimate can also be produced parametrically or through a simulation (Monte Carlo is common, but Method of Moments is another we use). . Estimates can be about the past, present, or future. We can estimate the number of clams in the Pleistocene era that are in the shale formations near our house. Estimate to Complete.

What is an Estimate? What is Estimating?

Herding Cats

I work in a domain where estimates are made every single week. Estimate to Complete (ETC), Estimate at Completion (EAC), Estimated Completion Date (ECD) are the life blood of our software intensive system of systems programs. But Estimating is NOT Guessing.

Beginner’s Guide to Project Management Process


For Beginners, it is important to understand essential elements of Project Management. Who is the Project Manager? A project Manager should own the following skills to succeed: Technical Skills (Knowledge of Subject matter, need not be an expert). What is Project Management?

Project Risk Management: 10 Surprisingly Brilliant Tactics to Reduce Risk


Every project has some risk of failure. This guide on project risk management will help you understand and manage risks better. If there is one thing you can be certain about in project management, it's this: Every project carries some risk.

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Risk Management is How Adults Manage Projects

Herding Cats

In a recent exchange in social media, it was clear the notion of risk and the sources of risk, the consequences or risks and managing in the presence of risk was in very unclear, when it was conjectured , we can simply slice the work into small bits and REDUCE risk. .

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Your Guide to Accurate Project Estimate Projects


Estimation is an invaluable tool for anticipating and managing project uncertainties. Accurate project estimates help identify cost and schedule requirements with relative precision, and reduce the risk of running out of time, resources, and budget during a project.

Decisions Without Estimates?

Herding Cats

Can you make a decision without an estimate? There are NO means of making a credible decision in the presence of uncertainty without estimating the outcome of that decision. These two points of view are the basis of any credible business management process.

Risk Response Strategy (Definitive Guide with Examples)

PM Basics

How to select a Risk Response Strategy? Here you will find examples of risk responses for both threats and opportunities. But there’s a catch: You may have a limited mindset in regards to dealing with risks. Click here to read how I managed different kinds of threats.

10 Point Checklist for Better Project Estimates


The following content is based on the whitepaper, “Bigger Than a Breadbox: 10 Tips for Better Project Estimates, Part 2,” written by Jerry Manas. Part 1: Improve Project Estimates and Escape Crisis Mode. Use Horizon-Based Estimates. Part 3: Project Estimation Methods.

Let’s add a few tools to your risk identification tool belt!

Kiron Bondale

Risk identification is our first step towards converting unknown-unknowns to known-unknowns. It is neither possible nor advisable to identify all risks which could impact your project’s objectives – like any other project planning process, too much is as bad as too little.

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Top Tips for Realistic Project Estimations

Strategy Execution | PMO Perspectives

Poor estimation is a major cause of project failure. According to the PMI, inaccurate cost estimates is a contributing factor in 28% of projects that fail. Producing Realistic Estimates for Strategic Projects. Why Estimations Go Wrong. How else can we estimate it?

Risk Management Resources

Herding Cats

Risk Management is essential for development and production programs. Risk issues that can be identified early in the program, which will potentially impact the program later, termed Known Unknowns and can be alleviated with good risk management. Estimation of Long?Term

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Why Johnny Can't Estimate?

Herding Cats

Risk Management is How Adults Manage Projects - Tim Lister. Since all risk comes from uncertainty - reducible (Epistemic) and irreducible (Aleatory), estimating is a foundation of all we do. There is no discussion of the conjecture that estimates are a waste, estimates can't be done, estimates are evil, estimates must be stopped immediately. Paradigm of agile project management from Glen Alleman. .

Signs that Your Project Management Process Needs an Update


Whatever the case, here are five signals from the universe that indicate your project management process is due for a refresh. Process vs Methodology. Let’s first clarify what is meant by the word ‘process’ and how it is not to be confused with the term ‘methodology’.

Closed Loop Control and Granularity of the Estimating Process

Herding Cats

For any closed loop control system ‒ let’s assume we want to manage our project with such a system ‒ has a signal representing the current state of the system. DP6Jw is an overview of this process. To control this process using feedback and corrective actions ‒ in the same way, your closed loop controller for your air conditioner or heater does - a sampling rate is determined based on the rate of change of the underlying processes. Complex Project Management.

How Does Probabilistic Estimation Reduce Project Uncertainty?


When you replace fixed-date deterministic scheduling with probabilistic estimations, you’ve got a whole new ball game. Probabilistic estimation is one of the reasons LiquidPlanner is the most realistic project management tool in the world.

Estimating is a Learned Skill

Herding Cats

Estimating is a learned skill, used for any purpose from every-day life to management of projects. When I left for the airport this morning to catch my flight to a customer site I estimated, given the conditions, how much time I need to get to my favorite parking spot at DIA. The same process for estimating is applied to multi-billion dollar projects we work. And the same process is applied to the Scrum development processes on those projects. .

Reasons to Estimate and Measure

Herding Cats

Estimating Software-Intensive Systems: Project, Products, and Processes , Richard D. Stutzke is a starting point for estimating software projects. I recommend it for anyone starting out in the estimating business all the way to seasoned veterans. IT Risk Management.

Why Johnny Can't Estimate? (Update)

Herding Cats

Risk Management is How Adults Manage Projects - Tim Lister. There is a discussion of the conjecture that estimates are a waste, estimates can't be done, estimates are evil, estimates must be stopped immediately. This would be like saying, risk management is a waste , control system engineering is a waste, thermal analysis of the computer system is a waste, assessment of the reliability, repairability, survivability - all the.

Beyond the Risk Register

Herding Cats

Risk Management starts with a collection of risks. Their probability of occurrence, the probability the risk will unfavorably impact the project. On actual projects, this approach is naive at best and produces more risk at worse. NoEstimates Risk