Join Chris Croft for an in-depth discussion in this video Generating realistic estimates, part of Project Management: Solving Common Project Problems.
- Now the second cause of cost problems…is the failure to generate accurate cost estimates.…Estimating's really difficult because we're looking at…things that we haven't done before,…and so how do you estimate what they're going to cost?…Very difficult to do.…And I would say that there are a couple of things…that people do when they estimate costs…that are definitely a problem, and the first thing is…to use the average as your estimate for the cost.…Now if you use the average you would think…that half the time you'll be okay…and sometimes things will be over…and sometimes things will be under,…but actually it doesn't seem to work like that…because there are very few ways…that something can end up being cheaper than you thought,…but there are lots of ways that something can end up…being more expensive than you thought.…
If you have to do something twice,…or if you have to go to a different supplier,…or you have to rush it through and work overtime,…any change to your plan will cost more.…And if you think about it, any change to your plan…
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- Recall the purpose of a change request form.
- Explain how to produce a Gantt chart.
- Identify the three elements used to determine total risk.
- List three elements you can manipulate to adjust the schedule of a project.
- Recognize the best time to inform a client that the project will not be completed as scheduled.