By: Ray Myers, Jr., PMP The accuracy of an estimate can be improved by considering uncertainty and risk. PERT uses 3 estimates to define a range for an activity’s cost. This formula can be used for cost estimating and for scheduling. Most Likely – based on a realistic assessment Optimistic – estimated... »
By: Ray Myers, Jr., PMP There are 4 cost estimating techniques discussed in the PMBOK: Expert Judgment Influenced by variables such as labor rates, material costs, inflation, risk factors, etc. Guided by historical information and insights from prior similar projects May be used to determine whether to combine other estimating methods or reconcile differences... »
By: Ray Myers, Jr., PMP The accuracy of project cost estimates varies depending on position in the project life cycle. Rough Order of Magnitude (ROM) Very early in the project ROM estimates are used for selection decisions Accuracy is usually plus/minus 50%, but could range from -25% to +75% Budgetary Early in the project Budgetary estimates are... »
By: Ray Myers, Jr., PMP Financial considerations are an important consideration in selecting projects. Three common methods to determine projected financial value of projects are: Net Present Value (NPV) analysis Return on Investment (ROI) Payback Analysis About the Author: Ray Myers, Jr. is a PMP certified project manager with over 2o years experience planning... »
By: Ray Myers, Jr., PMP A project is a temporary endeavor undertaken to provide or produce a unique product or service. A project: Involves a single definable purpose or end result Requires resources May have many stakeholders Involves uncertainty A Project is Temporary With a definite (defined) beginning And a definite end Temporary does not mean short A Project... »
By: Ray Myers, Jr., PMP A good scope statement does more than describe what a project will do or produce. The best scope statements will also describe what is not to be part of the project. In other words, the scope statement builds a fence around the project that contains... »
1. Excitement 2. Confusion and disillusionment 3. Panic 4. Search for the guilty 5. Punish the innocent 6. Distinction and praise for the uninvolved »
Not every project should be completed. Here are 3 reasons to kill a project: When the project no longer aligns with the business strategy When the balance between the project constraints (scope, schedule, budget) can no longer be aligned with reasonable expectations When the risks exceed the expected benefits Not enough reasons, here... »
