‘Leads and Lags’ is a technique of several processes in the area of Project Schedule Management according to PMI’s Guide to the Project Management Body of Knowledge (PMBOK®, 6th ed., ch. 6.3.2). They refer to the potential advance or delay of activities within a project schedule and are essential when it comes to scheduling activities on …
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 …
Estimating Activity Durations: Definition, Methods, Practical Uses Read More »
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 …
Bottom-Up Estimating – Definition, Example, Pros & Cons Read More »
The PMI methodology, set out in the Project Management Body of Knowledge, introduces the number of potential communication channels as a part of the communication requirements analysis. This type of analysis is a tool and technique of the “Plan Communications Management” process (ch. 10.1.2 in the PMBOK®, 6th edition). The goal of this analysis is …
Number of Communication Channels (+ PMP® Formula & Calculator) Read More »
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. Applying the technique involves the selection of similar projects, the …
How to Do Analogous Estimating – an Illustrated 5-Step Guide Read More »
Analogous estimating is a top-down estimation technique for estimating the cost, resources and durations of projects (according to PMBOK®, 6th edition, ch. 6.4.2, 7.2.2, 9.2.2). While it is less accurate than other methods, it can be used to produce an order of magnitude or an initial estimate. Therefore, it is a common technique during the selection or …
Analogous Estimating | Definition, Examples, Pros & Cons Read More »
When you need to estimate the cost of a project or parts of a project, you almost inevitably come across the technique of parametric estimating. This is a quantitative approach to determine the expected cost based on historic or market data. It is also a method that is used in the ‘estimate cost’ process in …
Parametric Estimating | Definition, Examples, Uses Read More »
The discounted payback period (DPP) is a success measure of investments and projects. Although it is not explicitly mentioned in the Project Management Body of Knowledge (PMBOK) it has practical relevance in many projects as an enhanced version of the payback period (PBP). Read through for the definition and formula of the DPP, 2 examples …
Discounted Payback Period: Definition, Formula, Example & Calculator Read More »
Cost of quality is a technique under the Project Quality Management Knowledge Area of the PMI framework (PMBOK®, 6th edition, ch. 8.1.2.3). The concept comprises of a short- and long-term consideration of quality expressed in its two components: cost of conformance and cost of non-conformance. In this article, we will shed a light on the …
Cost of Quality (COQ) – Cost of Conformance vs. Cost of Non-Conformance Read More »
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 …
Estimating Cost of a Project: Techniques and Examples Read More »