Preview

Whistler Ski Resort Project

Good Essays
Open Document
Open Document
1187 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Whistler Ski Resort Project
CHAPTER 5
Review Questions
2 – Organization culture can significantly influence the estimates. How the difference of culture appears on human beings can also be seen in an organization. In some organizations, padding estimates is normal and even encouraged in some cases. On the other hand, another organization which is sensitive on estimates can put much more effort to increase the accuracy of the project estimates. It is all about their approach to the project management. Some believe that it is always impossible to predict the future and worthless to spend so much time on it. However, the rest subscribe to the belief that accurate estimates are the key points of effective project management.
3 – Top-down estimates are derived from people who put experience and information on the issue to determine the project duration and costs. Such estimates are sometimes made by top managers who have less knowledge about processes on the work packages. However, bottom-up estimates are obtained from the people most knowledgeable about the estimates needed. These people are usually from the WP level. If the company has already engaged in a similar project in the past, I would leave the budgeting to the top managers and let the lower-level employees focus on their jobs instead of having to deal with measuring the budgeting and planning concerns. However, if the organization concerns too much about the accuracy of the estimates than dedication of the WP level employees to the real tasks, I would use the bottom-up approach. In this way, top managers have more money to work on other areas.
Exercises
3 – The total function point count is; Complexity Weighting | Element | Count | Low | Average | High | Total | Inputs | 10 | 10 x 2 | | | = | 20 | Outputs | 20 | | 20 x 6 | | = | 120 | Inquiries | 10 | | 10 x 4 | | = | 40 | Files | 30 | | | 30 x 12 | = | 360 | Interfaces | 50 | | | 50 x 15 | = | 750 | | | | | TOTAL | = | 1.290 |

a) 1290 / 5

You May Also Find These Documents Helpful

  • Better Essays

    Acct 505 Week 4 Paper

    • 1167 Words
    • 5 Pages

    The company should compare the actual figures with the flexible budget not the static budget. Company should also take into consideration the work to be done in future. The company should also revise its estimate, if the estimate is for less work to be done the budget will be on the lower side, but if the work is according to the capacity of the company then the budget will be reasonable, which will not create problem for departmental head to work more when their budgets have been attained, if they would have been made on unrealistic estimate.…

    • 1167 Words
    • 5 Pages
    Better Essays
  • Satisfactory Essays

    Nt1310 Unit 4

    • 555 Words
    • 3 Pages

    | A ROM estimate is based on high-level objectives, provides a bird's-eye view of the project deliverables, and has lots of flexibility. Most ROM estimates, depending on the industry, have a range of variance from –50% all the way to +100%. This estimate is typically done very early in a project or even before it is officially started.…

    • 555 Words
    • 3 Pages
    Satisfactory Essays
  • Satisfactory Essays

    CMGT Project Budget Paper

    • 660 Words
    • 4 Pages

    The first step of the project is to develop a budget. The budget management process involves the project manager in developing all the cost, estimates, and the total amount of money resources necessary for the implementation of all the activities. All the tasks and events are defined and stated in the WBS and Schedule in the lower section of the memorandum.…

    • 660 Words
    • 4 Pages
    Satisfactory Essays
  • Powerful Essays

    Project Costing wk4TeamB

    • 1051 Words
    • 6 Pages

    Cost estimates are the one that could have a high risk over the project and it is the one…

    • 1051 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    JDT@ task 1A

    • 625 Words
    • 2 Pages

    Or WBS Project cost management can use earned value once the project has started by calculating what has beenn completed versus what needs to be completed. An also use a gannt chart anuse the tale in the case study to show how much people were paid to complete part of the project and the time spent. Can conduct skype meetings weekly to share the information to all team members. Using Skype to meet will be more efficient because team members could not set a day and time for ALL to meet in one location. A WBS can also be helpful here to separate all the costs and budgets to organize in a manner where the team can understand what money goes where.…

    • 625 Words
    • 2 Pages
    Satisfactory Essays
  • Better Essays

    A budget is a tool that helps managers to ensure that the required resources are obtained and used effectively and efficiently as the organization moves towards achievement of its objectives. The budgets are determined yearly and are based upon the previous year’s budget and variances. This paper will discuss a development of operating budget, comparison expense results with budget expectations, description of possible reasons for variances and strategies to keep results aligned with expectations, recommendation some benchmarking techniques that might improve budget accuracy.…

    • 1735 Words
    • 7 Pages
    Better Essays
  • Better Essays

    As organization grow larger and develop, so do their structure and complexity; increasing the complexity of budgeting with it. Various departments are created to meet created requirements in operations. Integration of the separate divisions results in a sharing of resources, which then complicates overall budgeting within the organization. The resulting accepted practice to account for these costs and account for them accurately is to implement an accurate cost allocation of shared expenses. “The cost allocation is an essential part of the multipurpose planning process where cost-sharing will be required. It provides information needed to determine the magnitude and share of estimated project costs that are reimbursable. This information is essential to the tests of financial feasibility and plan acceptability. During subsequent planning and construction, it provides the information required for allocating actual expenditures and insures that cost accounts are maintained consistent with the plan formulation and allocation principles” (USACoE, 2009). With and accurate and detailed cost allocation process, funding can be tracked and analyzed throughout complex integrated processes involving numerous departments within an organization.…

    • 1070 Words
    • 5 Pages
    Better Essays
  • Better Essays

    Hcs 571

    • 1318 Words
    • 6 Pages

    A budget is an instrument used to help managers ensure that the resources used effectively and proficiently toward the goals of an organization. A budget projection can be made on a yearly base depending on previous year or existing one. They can further be broken down quarterly or monthly depending on it use. Generating a budget is complex undertaking, and for a budget to be effective the organization ought to follow it strictly. However, no matter how closely a business follows their guidelines there will always be some form of variances. The organization should expect a few variances and be able to work these discrepancies in any budget constraints.…

    • 1318 Words
    • 6 Pages
    Better Essays
  • Powerful Essays

    A budgeting process based on sound concepts of planning and control can help a company create value. Budgeting serves as a planning and controlling system by documenting the goals and performance objectives in financial terms, then using those plans throughout the year. Monthly performance reports compare budgeted results, with actual results. To control…

    • 1600 Words
    • 10 Pages
    Powerful Essays
  • Satisfactory Essays

    The next type of estimating is bottom-up. Bottom-up estimating utilizes information from individual estimates through the Work Break Down structure. This type of estimating is one of the most common types of estimating because it uses estimates from the floor tasks. These floor tasks are estimated by subject matter experts with years of experience, and can be very beneficial to ensuring that not only the estimate is accurate, but the scope of the task is correct.…

    • 746 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    There are two different types of budgeting periods, periodic moving budget and milestone budgeting (Liebler & McConnell, 2012). Both types of budget periods are very useful, however the company should pick the type that best suits their requirements and limits. In addition, there are also various types of budgets and different approaches to budgets; again, the company should pick the method that best suits their needs and limits. It might also be beneficial for a company to have a general audit in order to prevent issues such as fraud. In addition, I would also make sure to follow the budgetary process. There needs to be an initial preparation, review and approval process, and then an implementation phase (Liebler & McConnell, 2012). Furthermore, I would also follow the six requirements of a sound budgetary procedure, which includes: a sound organizational structure, consistent budget period, development of adequate statistical data, reporting system, uniform code, and a regular audit system (Liebler & McConnell, 2012). By following the budgetary process and the six procedure requirements, I could ensure that my budgeting plan would be effective and fit the requirements…

    • 666 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Alike the top-down analysis, the bottom-up development has few advantages and disadvantages. The bottom-up analysis is less complex, faster to implement, and inexpensive, as it concentrates on the operational needs of its sponsor, which reduces the time, resources, and amount of work necessary to accomplish a project. However, as the project…

    • 370 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    Time and Elimination Rate

    • 447 Words
    • 2 Pages

    Order of rxn-it refers to the way in w/c the conc of a drug or reactant influences the rate of chemical rxn…

    • 447 Words
    • 2 Pages
    Satisfactory Essays
  • Satisfactory Essays

    mgt 250

    • 550 Words
    • 3 Pages

    Assignments MGT250. Project Management MGT 250. Project Management Course Assignments Assignment 1  Bottom-up cost estimating exercise (Module 3, pp 19-20)  Parametric cost estimate exercise (Module 3, pp. 43-44)…

    • 550 Words
    • 3 Pages
    Satisfactory Essays
  • Good Essays

    Eco Assistance

    • 1878 Words
    • 8 Pages

    The “5 units” total fixed cost is 55. And the “5 units” total cost is 210.…

    • 1878 Words
    • 8 Pages
    Good Essays