One of the key tasks in project management is the tracking of the progress and performance of a project. As a prerequisite, the criteria for measuring performance need to be clearly defined and agreed by the project’s stakeholders. This is done by establishing a performance measurement baseline (PMB) thay serves as the yardstick for the …
Performance Measurement Baseline: Definition | Example | 6-Step Guide Read More »
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. …
Definitive Estimate vs. ROM/Rough Order of Magnitude (+ Calculator) 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 »
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 »
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 »
During the project initiation phase (or when you are preparing for a project management exam) you will likely come across the term rough order of magnitude (ROM). The PMI’s Project Management Body of Knowledge refers to the rough order of magnitude as an initial estimate in the “estimate cost” process (source: PMBOK®, 6th edition, part …
What Is the Rough Order of Magnitude (ROM) and How Is It Calculated? Read More »
If you are in the initiation phase of a project or studying the PMBOK for your PMP exam you will find this ROM Range Calculator useful. This tool helps you determine the minimum and maximum values of the range of your rough order of magnitude estimate. Introduction to the ROM Calculator There are numerous estimation …
Calculator for the Rough Order of Magnitude (ROM) Range Read More »