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 »
Projects take place in organizations that are normally applying a form of performance management. Do you know the balanced scorecard, for instance? – “Of course!” You will say. It has been on everyone’s lips for many years and is used in many companies. The performance prism is a related concept that emphasizes the needs of …
Performance Prism for Performance & Stakeholder Management Read More »
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 …
Balanced Scorecard in Project Management – Uses, 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 (source). Applying the technique involves the selection of similar projects, …
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 are preparing for your PMI-ACP exam, studying formulas has probably not been your top priority so far. Although the PMI-ACP exam puts less emphasis on calculations than other certifications (such as the PMP, for instance) you should be familiar with a few formulas. As they are not overly complicated, they are ‘quick wins’ …
PMI-ACP® Formulas for 19 Agile Metrics (incl. Explanations) 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 …
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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 PMBOK (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 technique …
Cost of Quality (COQ) – Cost of Conformance vs. Cost of Non-Conformance Read More »