Cost Estimation for Projects: How to Estimate Accurately

ProjectManager.com

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

ProjectManager.com

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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Ask a PM: How to Get Proper Estimates

LiquidPlanner

How do you deal with a team that refuses to estimate how long tasks will take? Estimating can be done in several solid ways, and frankly, it sounds as if your colleagues don’t know how to estimate properly or are scared to give you the timescales that pop into their heads.

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. What if you want an estimate that is, say, 75% reliable? PERT can’t give you those kinds of estimates. How reliable is this estimate?”.

How To Improve Schedule Estimates

Project Risk Coach

Let's talk about the challenges of schedule estimates and three estimating techniques that can help us do a better job with our estimates. Lastly, we'll look at how to respond to future requests for estimates. Challenges With Schedule Estimates. unique risks).Use

Everyone estimates!

Musings on Project Management

We all make estimates; and we all make estimates all the time. When I make the 20 mile trip each Tuesday to a client site, I estimate adjustments to a baseline based on weather and road construction and if I know about an accident. Really, no one sets out to do anything meaningful without some estimate in mind re time, or cost, or risk; usually we can also notionally estimate the scope. So, agile estimate

3-point estimates. good for you!

Musings on Project Management

Here's my three point estimate paradox: We all know we must estimate with three points (numbers). so we do it, reluctantly None of us actually want to work with (do arithmetic with) the three points we estimate. In a word, three point estimates suck -- not convenient, thus often put aside even if estimated -- and most of all: who among us can do arithmetic with three point estimates? But Monte Carlo Risk Management Statistics

Difference between Quantitative and Qualitative Risk Analysis

iZenBridge

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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It’s Easy to Miss Project Risks

Project Risk Coach

It's easy to miss project risks. And, until a project manager has identified the threats and opportunities, the risks cannot be managed properly. Projects rise and fall with the project manager's ability to properly identify and manage their most significant risks.

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Estimating the Risk

Herding Cats

Risk is everywhere on projects. This risk comes from two types of uncertainty. The idea of risk and its management and handling is a critical success factor for all software development. One of the most rigorous theorems of economics [1] proves that the existing means of production yields greater economic performance only through greater uncertainty that is, through greater risk. Without these estimates, there is no risk management. NoEstimates Risk

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.

Evaluating Project Schedules Utilizing Quantitative Risk Analysis

Project Risk Coach

Often times, risks occur and project managers lack adequate schedule reserves. If a project is estimated at 120 days, the project manager may add a 10% pad, an additional 12 days. The project manager estimates the project duration to be 132 days. Analyzing the Highest Risks.

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No more initial estimates? NOOOOOOOOOOO!

Kiron Bondale

You are assigned to manage a project and before you or your team have had an opportunity to start to chip away at the looming mountain of uncertainty, you get put on the spot to provide a cost or schedule estimate by your project sponsor or some other stakeholder.

Analogous Estimation Vs Parametric Estimation

iZenBridge

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. To start with, let’s understand Analogous Estimation, what exactly does it mean?

Evaluating Project Schedules Utilizing Quantitative Risk Analysis

Project Risk Coach

Often times, risks occur and project managers lack adequate schedule reserves. If a project is estimated at 120 days, the project manager may add a 10% pad, an additional 12 days. The project manager estimates the project duration to be 132 days. Analyzing the Highest Risks.

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Can Project Duration Estimation be done without Assumptions?

MPUG

That is why duration estimation is one of the most important aspects of project management. In most real life scenarios, clients and mangers are reasonable, giving us some freedom to determine duration estimates for doing our tasks, but this can create other problems. Exact Estimates.

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.

Estimating from the master

Musings on Project Management

s "The Mythical Man-month" "It is very difficult to make a vigorous, plausible, and job-risking defense of an estimate that is derived by no quantitative method, supported by little data, and certified chiefly by the hunches of the managers" Bookmark this on Delicious. estimateToday's quote: Here's a quotation that is a favorite of mine drawn from Fred Brooks, Jr.'s

Your Guide to Accurately Estimating Projects

LiquidPlanner

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.

Fred P. Brooks on Estimates

Musings on Project Management

There are dozens of quotes from this book floating about, but here's one worth writing down: "It is very difficult to make a vigorous, plausible, and job-risking defense of an estimate that is derived by no. business analysis estimate QuotationsFred Brooks, Jr.'s s "The Mythical Man-month" is still required reading, even if written decades ago. And, as these things go, it has a lot of humor, but also a lot of wit.

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. Why do people define risks poorly?

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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. If you have no uncertainty, then estimates provide no value. Risk Management is how adults manage projects - Tim Lister.

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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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.

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.

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.

How To Better Your Quantitative Risk Analysis

Project Risk Coach

How can we better your quantitative risk analysis? What is Quantitative Risk Analysis? The Importance of Quantitative Risk Analysis. When to Perform Quantitative Risk Analysis. Three-point estimate. The quantitative risk analysis is not always required.

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A risk management ode to project managers!

Kiron Bondale

Father’s Day might be a holiday which is much newer than the project management profession itself, but let’s not miss the opportunity to celebrate the many ways in which project managers help their projects succeed through effective risk management.

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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. Identifying the Risks - determines with risk are likely to affect the project and documenting the characteristics of each.

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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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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. This includes planning for and execution the project by phase and activity level cost estimates.

10 Point Checklist for Better Project Estimates

Planview

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.

Your Guide to Accurate Project Estimate Projects

LiquidPlanner

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. Don't assume, Estimate. This process is the basis of all risk management. IT Risk Management.

Risk Management: Known / Unknown Unknowns

Project Health Check

It would become so famous that it would become the title of his autobiography "Known and Unknown: A Memoir", and provides a superb basis to discuss our approach to Project Risk Management: ". Known Unknowns - For us this is our Risk Log. Cost Management Project Planning Risk Managemen

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Uncertainty creates Risk, Decisions in Presence of Uncertainty Requires Estimating

Herding Cats

According to ISO 31000, a risk is the effect of uncertainty on objectives and an effect is a positive or negative deviation from what is expected. Every step has an element of risk that needs to be managed and every outcome is uncertainty. In the context of risk management, uncertainty exists whenever the knowledge or understanding of an event, consequence, or likelihood is inadequate or incomplete. Let's define what an estimate is. IT Risk Management.

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

Herding Cats

Risk Management is How Adults Manage Projects - Tim Lister. Risk Management requires making estimates of many things. Just like risk management, estimating is how adults manage projects. No risk management no adult managemnt. NoEstimates Risk

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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. Here's some materials that provide the tools and processes needed to learn how to estimate.