Project Management -Project Cost Estimation - 2686 Words

Project Management Word Document Subject: Project cost estimation, budgeting cash flows Names of Group members: Nilay Shah Sharad Tiwari Mayur Kakkad Nishant Agrawal Amit Sharma Submitted to, Prof. Deepak Jakate Introduction Project Definition: Why, What, How? How does a project get started? How do you know what it is supposed to achieve? How do you know what approach is required? How do you know that it is a good idea in the first place? How will you know if you succeeded? Business needs Project definition Project execution Before you can effectively manage a project, there needs to be a shared understanding of that project - its purpose, objectives, scope,†¦show more content†¦The objectives of the cost estimating process are to: support the establishment of the Performance Measurement Baseline (PMB); serve as the basis for change control; and Support the establishment of the ETC. Project cost estimates shall be traceable to documented sources and based on accepted methodologies. PROCEDURE Estimate Preparation and Review The estimate preparation phase begins with the issuance of guidance and instructions from the Project Manager and encompasses those activities that translate technical design and fabrication into detailed labor and procurement elements (organized by Work Breakdown Structure (WBS)) and identified costs. Labor rate tables, indirect costs, and escalation rates will be provided by Project Controls to assist Control Account Managers (CAMs) in budget development. The Project Manager will review this information and approve all budget plans prior to implementation. Escalation should generally be based on rates provided by the Department of Energy (DOE) as published in the LBNL Forward Pricing Sheet (aka CFO Rate Book). If work is being executed by collaborator or subcontractor in another geographic area where the escalation rates are different, rates for those areas should be used in lieu of the LBNL rates. Judgment should be used to verify the appropriateness of the published rate in light of current market conditions.Show MoreRelatedProject Management And The Major Areas Of Projects Management1619 Words   |  7 Pagesthe Project Management and the major areas of project management, let see actually what is a project? A project is defined as â€Å"â€Å"a temporary endeavor undertaken to create a unique product, service, or result† (Schwalbe, 2014). Projects involve different operations like the project is terminated when the scope and objective of the project are met. According to an IT project or any kind of project it involves number of persons or a team or an individual in order to complete the mission. A project canRead MoreProject Management : Understanding The Roles Of Key Stakeholders1096 Words   |  5 PagesINTRODUCTION In Hemanta Doloi’s arcticle â€Å"Cost Overruns and Failure in Project Management: Understanding the Roles of Key Stakeholders in Construction Projects,† the author suggests project cost management is not the sole responsibility of the project manager, but rather it should also involve key stakeholders of the project such as clients, consultants, and contractors (2013). Project cost management is a process for predicting expenditures, whose success depends on an accurate accounting of allRead MoreThe Model Of The Putnam Model1214 Words   |  5 Pagesanother popular software cost model that is known as the Putnam model. The form of this model is driven around key aspects of: Technical constant C is driven by formula of = size * B1/3 * T4/3 Total Person Months B is driven by formula of =1/T4 *(size/C)3 T= Required Development Time in years Size is estimated in LOC In the given case, the C as a parameter is further influenced by the development environment and It is determined on the basis of historical data of the past projects. Rating: C=2,000 (poor)Read MoreKey Factor That Drives The Cost Estimation902 Words   |  4 PagesAnother key factor that drives the cost estimation is the resource costing. These are the actually the biggest component of complete cost structure. The resources are defined broadly into two key segments: ï‚ § Human resources: the human resources in form of engineer, managers, technical team and others form the key resource parts. The salary, perks paid to them influence the cost estimations. The estimations need to be based on future salary rise and other factors to make correct estimates. ï‚ § TechnicalRead MoreSoftware Development : Project Planning And Staffing1055 Words   |  5 Pagesdevelopment, projects are moving target because they are typically not well defined and there are lots of changes in the requirements throughout the life time of the project and the estimates impact the process of reaching the target. [10] Software effort estimates that affects many activities like project selection, project planning and staffing, evaluation of estimators and developers, monitoring progress and managing risk [2]. The problem is lack of understanding of the term effort estimation. From theRead MoreProject Management : Determining The Success Or Failure Factors1526 Words   |  7 Pagescomplex projects have option of success or fail due to a number of circumstances. The main controversial issue in the project management is determining the success or failure factors. Although projects have built in to be successful there are some risks can’t be avoided and that may lead at the end to failure in the near or far future (Montequin, 2014). Introduction Project management provides reasonable scientific solutions in order to overcome difficulties and achieve success. Each project has aRead MoreTriple Constraint Essays1279 Words   |  6 PagesConstraint? The triple constraint of project management is the balance of the project’s scope, time and cost. Triple constraint is used to determine whether or not a project’s objectives are being met. During the planning phase of a project, a project manager will define the scope, time, and cost of a project. As the planning phase continues, the project manager discovers that there may be some changes or adjustments needed in the project’s scope, time and/or cost. When one aspect needs change or adjustmentRead MoreDefect Correction Is The Remediation Of A Software Condition1271 Words   |  6 Pagesidentification of defects minimizes the costs for defect correction or rework (Tarhan Yilmaz, 2014). The accelerated timeframe allows teams to remediate defects before functionalities are demonstrated or sent to the customer for user acceptance testing (Tarhan Yilmaz, 2014). Without incremental methods, as evident in the waterfall model, identified defects are unknown u ntil post customer delivery (Tarhan Yilmaz, 2014). As a result, the estimated costs for software development are exceeded toRead MoreFunctions And Functions Of An Organization1001 Words   |  5 Pagesnumerous linked activities. One of the challenges faced by the organization, which prohibit them from estimating the accurate Effort estimation is the understanding and managing of the organizational process. It has been observed that many organizations do not have thorough knowledge of their processes. Also they fail to change as per the standard project estimation methods. The above mentioned challenges can be solved to an extent by closely analyzing the difference between the estimates and actualsRead MoreA Study On The Strategy Estimation1022 Words   |  5 Pagesthe expert judgmental estimation since this particular project estimation method is driven around taking expert opinion and by understanding the strategic project requirements. The results are fast since expert opinion is driven through various elements while accuracy of estimations is not always certain due to project complexity. The experts are pooled from operations, business and management team so as to drive the right level of estimation knowledge for any given project as per the business strategic