Projects

Question 1

Why are projects needed?

Answer 1

Organisations are faced with a constantly changing environment.

This creates problems (~minimised), opportunities (~maximised) and needs (~addressed) that all require a response (~project).

Question 2

What is an estimate, and what it is used for?

Answer 2

Estimating is the approximation of time and cost required to complete the scope of work to the required level of quality.

• Allows timescales to be set
• Investment decisions can be made
• Starting point for risk analysis and contingency setting
• Accuracy of estimates should increase through life-cycle

Question 3

Describe the different types of estimation

Answer 3

• Analogous/Comparative (Top Down) - compare like for life projects, quick but relies on similar projects.
• Analytical (Bottom Up) - time consuming, but is accurate and ensures full scope is covered.
• Delphi (Planning Poker) - avoids bias, relies on consensus, so all are responsible, but can be time consuming.
• Parametric - uses statistical relationship, such as cost per M2 of extension on a house. Quick, no bias, but relies on databases, and wont cover every project type.

Question 4

Give three reasons for re-estimating through the project life-cycle?

Answer 4

• Maintains stakeholders expectations
• Improves resource management
• Helps to manage the financial budget