This video discusses setting expectations for budget estimates and when they might be revised, using best practice approaches. It also covers ensuring the project lifecycle steps you use appropriately support a staged budget estimation process.
- I wish I could say all my project estimates were accurate.…They haven't been…and yours probably won't be either.…As much as that sounds pessimistic,…I share that because it's reality,…but it gives us the motivation to learn how to improve.…Before we all end up going into a corner and sulking,…take heart, let me share something else with you.…It's okay to be wrong.…Really.…You must produce estimates to move things forward…and it's often guess work.…
The idea, however, is to be wrong…for a shorter period of time as is possible…and that's where establishing an estimated structure…is essential.…The best structure involves multiple estimation points…such as a rough order of magnitude, budgetary,…and definitive estimates.…However, in the real world,…you don't have to use a fixed estimating structure.…The estimating stages and techniques…are tools to apply within the context of each project.…
They should be customized.…So here are a few tips to create an estimating structure…for a given project.…First, start with standard approaches…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.