Ch 1 Flashcards
(17 cards)
What is the process of forecasting or approximating the time and cost of completing project deliverables called?
Estimating
Estimating is crucial for project management to balance stakeholder expectations and control.
What are the two main types of estimates in project management?
- Top-down (macro) estimates
- Bottom-up (micro) estimates
What is a top-down estimate?
Estimates derived from someone using experience and/or information to determine project duration and total cost
Typically made by top managers with less direct knowledge of the project processes.
What is a bottom-up estimate?
Estimates made by assessing elements of the work breakdown structure (WBS)
This approach checks cost elements by rolling up work packages to major deliverables.
List three reasons why estimating time and cost are important.
- To support good decisions
- To schedule work
- To determine project worth
What are some factors influencing the quality of estimates?
- Organization Culture
- Padding Estimates
- Planning Horizon
- Project Structure and Organization
- People
- Project Complexity
What is the guideline regarding who should make estimates?
Have people familiar with the tasks make the estimate
This ensures accuracy and relevance in the estimation process.
What should estimates be based on according to estimating guidelines?
Normal conditions, efficient methods, and a normal level of resources
True or False: Estimates should make allowances for contingencies.
False
The guideline suggests not making allowances for contingencies to maintain focus on actual estimates.
What is the purpose of a risk assessment in estimating?
To avoid surprises to stakeholders
What are some methods used for top-down estimating?
- Learning curves
- Apportion method
- Function point methods
- Consensus methods
- Ratio methods
What are direct costs in project management?
Costs that are clearly chargeable to a specific work package
Includes labor, materials, equipment, and other identifiable project deliverables.
What are general and administrative overhead costs?
Organization costs indirectly linked to a specific package that are apportioned to the project
What is the apportion method in project cost allocation?
A method that allocates project costs using the work breakdown structure (WBS)
Why might estimates need to be adjusted?
- Changes in project scope and plans
- Hidden interaction costs
- Normal conditions not applying
- Issues arising during the project
Fill in the blank: The _______ method is a hybrid of estimating techniques that can be applied to specific tasks.
Phase estimating
What is the relationship of improvement in labor hours known as?
Learning curves
This concept reflects how labor efficiency improves with experience on similar tasks.
