Thursday, October 3, 2013

Websites for Estimating Cost and Allocating Resources for Projects


Websites for Estimating Cost and Allocating Resources for Projects


This article is an easy read on how to estimate the cost of project management activities.  It has a “verbal” flowchart design.  It describes the most basic form of cost estimation called Analogy Estimation and the conditions that are most appropriate for using this method.  (Collet, 2013)  If your conditions are not conducive for this method, a decision should be made to continue to the next stage in the “verbal” chart.  The Parametric Cost Estimating (PCE) method helps one understand the cost drivers of a project.  In the PCE practice, cost drivers are divided into categories and ranked according to complexity and risk. The ranks are then translated into cost estimates.  This article was most useful for getting an understanding of how to categorize the cost drivers and assign a rank to better estimate a cost for each activity.  This is a quick and easy read worth reading.


This blog reminded me of the four piece puzzle logos used a lot in the back in the 80’s. 
 
This article describes four common “pieces of the puzzle” (if you will) used to estimate cost in project management.  Each piece of the puzzle represents a different method of cost estimation.  The four tools briefly discussed are Analogous Estimating, Parametric Estimating, Bottom-Up Estimating, and Three Point Estimating.  (Usmani, 2012)  Each puzzle piece describes when it is best used and the benefit it provides.  This article is most useful for potentially identifying which cost method to use for a project.


References


Collet, B. (2013, Sept. 1). Estimating the Cost of Project Management. Retrieved Oct. 3, 2013, from The.Project.Management.Hut: http://www.pmhut.com/estimating-the-cost-of-project-management
Usmani, F. (2012, June 30). 4 Tools to Estimate Cost in the Project Management. Retrieved Oct. 3, 2013, from PM Study Circle: http://pmstudycircle.com/2012/06/4-tools-to-estimate-costs-in-the-project-management/

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