Project management Essay
A cost estimate is a prediction of the likely cost of the resources that will be required to complete all of the work of the project
High level formulas are good for selecting a project but not for managing one.
First step on budgeting: cost estimate is allocated to packages
Second Step: budget of every package is distributed over the duration of the work project
TBC: Total Budgeted Cost
Analogous estimate: uses previous projects to predict the cost
Parametric estimate: model is built using parameters to predict costs
CBC: Cumulative budgeted cost: amount that was budgeted to accomplish the work till this point in time
CAC: Cumulative actual cost
Earned Value: value of work actually performed
Earned Value Formula= TBC …show more content…
Project Used in companies in the project business, not selling products., Project team is dedicated to one project and isolated, Project manager has complete authority over team Adv Team has full control over resources, Organization is highly responsive to customer Dis Can be cost inefficient, Tendency to stretch out work during slow periods, Potential for duplication on concurrent projects, Low level of knowledge transfer, No functional “home”, People may be laid off at the end of the project.
Matrix A mix of functional and project organization structures, Used in companies