Estimating Activity Durations: Definition, Methods, Practical Uses

Before you begin developing the schedule of a project, you need to know the expected durations of all activities of a project. Project management frameworks such as the PMI’s PMBOK contain different tools and techniques for estimating durations. The expected amount of time for the completion of an activity is the basis for developing the …

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Estimating the cost of a project

Estimating Cost of a Project: Techniques and Examples

Estimating cost is an important process in project management as it is the basis for determining and controlling the project budget. Costs are estimated for the first time at the beginning of a project or even before a project has started. Subsequently, the (re-)estimation of the project cost is repeated on an ongoing basis to …

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Project manager doing earned value analysis

Earned Value Analysis & Management (EVA/EVM) – Definition & Formulae

Managing cost, performance and progress is one of the most important responsibilities of a project manager. In practice, this is usually one of the areas that receive a lot of attention by project sponsors, steering committees and other stakeholders, given that the budget is often one of the relevant constraints of a project. Despite its …

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A Project Team performs a cost benefit analysis

Cost-Benefit Analysis for Business Cases (Definition, Steps, Example)

When you prepare a project in line with PMI or other established project management methodologies, you will have to create a project business case. This business case is usually a study on the expected qualitative and financial benefits of a single project or different project options. An essential part of this process is the cost-benefit …

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A white board used for Agile Project Management

What Is Agile Project Management? Definition & Agile Methodologies.

Agile project management refers to the management of agile projects, being the counterpart to traditional project management in (relatively) predictive projects. What Is Agile Project Management? Agile project management – originally referred to as “Agile Software Development” – is a set of principles and values rather than a methodology. They have their roots in the …

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Definitive Estimate vs. Rough Order of Magnitude (ROM) Title

Definitive Estimate vs. ROM/Rough Order of Magnitude (+ Calculator)

When the cost of projects (or parts of a project) is estimated, the accuracy of these estimates depends on various factors. These include but are not limited to the availability and quality of information and the estimation technique used. The available options and data to estimate costs typically vary among the phases of a project. …

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Title Project Schedule Network Diagram

Project Schedule Network Diagram: Definition | Uses | Example

When you need to schedule the activities of a project you might want to consider using a project schedule network diagram. This is a proven technique for determining and documenting the sequence of activities taking interdependencies among them into account. It is also suggested by the Project Management Institute’s framework (PMBOK®, 6th ed., ch. 6.3.3.1). What …

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Precedence Diagramming Method - Title incl. example image

PDM – Precedence Diagramming Method [FS, FF, SS, SF] (+ Example)

When you determine the sequence of activities in a project you need to pay attention to dependencies between these activities. Some activities might require predecessor or successor activities to be completed or started before they can be started or completed themselves. According to the Guide to the Project Management Body of Knowledge (PMBOK®, 6th ed., ch. …

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How Project Management Software Improves Productivity

The success of a business project relies heavily on a number of factors: individual and collective expertise of the team members, budget, resources, communication, and productivity among other things. Productivity, however, is becoming a serious concern for many project-based firms. According to a recent productivity survey by VoucherCloud that interviewed nearly 2,000 employees, the average …

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Title_Bottom-Up-Estimating

Bottom-Up Estimating – Definition, Example, Pros & Cons

Bottom-up estimating is a technique that involves estimations on a granular level for parts of a project. These are then aggregated to a total estimate for the entire project. It is often referred to as one of the most accurate ways of estimating. Estimating cost, duration or resource requirements of a project typically starts with …

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Title Balanced Scorecard Project Management

Balanced Scorecard in Project Management – Uses, Pros & Cons

The Balanced Scorecard, or Integral Scorecard, is a strategic management methodology used to define and monitor the strategy of an organization. Robert Kaplan and David Norton created this methodology in 1992 (original article). The Balanced Scorecard was originally developed as a tool to implement the corporate strategy and is a common method in companies of …

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Title 5 step guide to analogous estimating

How to Do Analogous Estimating – an Illustrated 5-Step Guide

Analogous estimating is a common technique in project management to determine cost, schedule or resource estimates. It is often used in situations where a rough estimate meets the needs of the stakeholders or at a time when not many details are known about a project (source). Applying the technique involves the selection of similar projects, …

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