TAILIEUCHUNG - Lecture Project management: The managerial process (5/e): Chapter 5 - Erik W. Larson, Clifford F. Gray

Chapter 5 - Estimating project times and costs. The main contents of the chapter consist of the following: Factors influencing the quality of estimates; estimating guidelines for times, costs, and resources; top-down versus bottom-up estimating; methods for estimating project times and costs; level of detail; types of costs; refining estimates; creating a database for estimating. | Where We Are Now 5– Estimating Projects Estimating The process of forecasting or approximating the time and cost of completing project deliverables. The task of balancing expectations of stakeholders and need for control while the project is implemented. Types of Estimates Top-down (macro) estimates: analogy, group consensus, or mathematical relationships Bottom-up (micro) estimates: estimates of elements of the work breakdown structure 5– Why Estimating Time and Cost Are Important EXHIBIT To support good decisions. To schedule work. To determine how long the project should take and its cost. To determine whether the project is worth doing. To develop cash flow needs. To determine how well the project is progressing. To develop time-phased budgets and establish the project baseline. 5– Factors Influencing the Quality of Estimates Quality of Estimates Project Duration People Project Structure and Organization Padding Estimates Organization Culture Other .

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