Why are accurate estimates critical to project management?
Looking back through history, projects were planned without time being an issue. Today projects are planned with time written all over the planning phase. Without accurate estimation Project Managers aren’t successful and the project is doomed from the planning phase. If the cost and scheduling estimates are planned immaculate, the project may fail for a number of reasons.
Accurate estimating a project is critical, although some feel it’s not as critical. Accurate estimation is based upon the estimation the project prioritized and selected, with the stakeholders making project approvals. If timeline are not met, finished too late and above the planned budget, the Return on Investment or ROI will become unjustifiable causing the project to fail or canned.
Thousands of years ago the Egyptian Pyramids were built by people of all walks. The Egyptians didn’t worry about cost due to the fact the majority of the workers were slaves, making the labor cost free. If projects are not finished on time Stakeholders are penalized along with Project Managers in some cases.
In my opinion accurately estimating time is of the utmost importance due to the fact it will save cost regardless of the project and regardless of the company.
What steps can project managers take to improve the accuracy of estimating projects?
To improve accurate estimated time. Project Managers and Sponsors should maintain an ongoing accurate hour database in order to record time which is spent on each phase of the project. One may use this database on other project to perfect buffer time as needed and realistically perform work on the project.
Use project plans and specifications when creating planning document. Task analyses are performed for work. Using the complexity factor will determine if a pending project is more complex than a previous one. Sets of caveats, assumptions and constraints are to accompany the calculations. When...