Project Costing, Risk Evaluation, and Quality Control

Topics: Project management, Management, Cost Pages: 7 (1989 words) Published: July 29, 2012
Project Costing, Risk Evaluation, and Quality Control
Precious Reid
Managing Human Resource Projects – HRM 517
Professor Lowe
August 21, 2009

A strategic focus for the firm is to have employees that are well trained, ready to solve problems, and attend to customer needs. The Human Resource department has been tasked to estimate the project cost and evaluate the project risk, as well as, design a plan to monitor the project quality for the project that will address the training needs of the employees. Today we will focus on project costing, risk evaluation and quality control for a Project Plan for Blackboard Software Implementation.

1. Cost estimating methods most appropriate for use in estimating training project cost
In the Blackboard training the team had to decide on the appropriate cost estimate method to use for project completion. The team discussed several cost methods such as analogous estimating, parametric estimating, and bottom-up estimating when trying to make the right cost selection for the training project.

First, the team discussed Bottom-up estimating which allows the user to obtain a more refined estimate of a particular component of the work. Individual estimates are developed to see what specifically is needed to meet the requirements of each of the smaller areas of the work. The estimate becomes much more accurate since it allows for careful consideration of the small areas of the project. Eventually in Bottom-Up estimating all considered estimates is combined making then one large estimate that would not consider all the individual components of the training project. The team decided not to use bottom-up estimating because it was felt that it was too time consuming and the overall effort for trying to consider an appropriate cost may grow with each planning phase and we just did not want that type of estimating.

Second, the team discussed Parametric estimating which is an estimate that utilizes the statistical relationship that is between a series of historical data and other variables. Variables that could be used in parametric estimating could be square footage; the number of lines in a code of software; and any other similar variable. Normally you may find this on the Work breakdown structure as another level of detail in a graphic. The Parametric estimating method gives a higher level of accuracy depending on how sophisticated the original data was entered. The team decided not to use parametric estimating because the accuracy of the cost would only be an assumption.

Third, the team discussed Analogous estimating which allows you to look at a variety of project parameters and scale measurements. Analogous measures could include project cost, budget, project scope, and how long the project takes until completion. The team compared the similarities of the Blackboard training project to another software training project that had just been completed less than six months prior. The estimating method used on the previous software training project was Analogous and some of the same stakeholders were a part of the Blackboard project as well. Most of the team members are familiar with Analogous estimating and are considered to have expertise in using this method. After careful consideration of the three cost methods discussed, the Blackboard training team elected to use Analogous estimating as the most appropriate use for estimating the training project cost. The Analogous estimating method was chosen because it was familiar to the entire team and no extra time was needed to understand what was to be done to complete the cost estimate of the training. 2. Estimate cost of training with significant elements of cost

As the Blackboard training is progressing it was time for the project team to estimate the cost of this training as it was near final completion. The team considered start up cost to get the project started and recurring cost for each time the training...
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