Project Management

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Project ManagementTop Down/Bottom Up methods
Consensus methods
Snr/middle managers’ guess
total project time & cost Discussing/arguing to reach a
decision on best guestimates Firms seeking greater precision:
Delphi Method:
Group decision process of chance of
certain events occurring Exp. familiar with project use insight/exp. guessing project costs/times

Ratio methods
Macro methods use ratios to guess time & cost
E.g. contractors using no. of sq. ft. to guess cost/time to
build a house

Apportion method
Common in standard projects but may differ/customise
Given good historical data, estimates made quick easy & accurately Costs apportioned to phases/deliverables

Function point methods (software/system projects)
Est. based on “function points” (inputs, outputs, no. of data files) E.g. estimating labor cost 1 person p/m could represent avr. 5 function points Weightings used to find total no. function points

Learning curves
Projects needing same tasks, or product repeated several times Repetition improves performance time
Time reduction of task performance can be predicted
Improvement pattern counted in “learning curve”

Reasons for Adjusting Estimates
Interaction costs hidden in est.
Normal conditions don’t apply
Things go wrong on projects
Changes in project scope & plans

Adjusting Estimates
Time/cost estimates of certain activities adjusted as risks Clearer defined resources/situation details

Contingency Funds/Time Buffers
Made freely to offset doubt
Reduce likelihood of project cost/completion time
Added to overall project/specific activities/work packages
Determined from previous similar projects

Changing Baseline Schedule & Budget
Unforeseen events may mean reshuffling budget & schedule

Top Down| Bottom Up|
Consensus Method| Function Point Method (software/systems)| Ratio Method| Learning Curves|
Apportion Method| |
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