Project Estimates Essay

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Project Estimates Logistics Department Relocation Project Mary Adams September 10, 2012 University of Phoenix CPMGT 303 Tony Taylor Project underestimation of resources and costs is one of the majority frequent contributors to project failure. Project managers must be knowledgeable of and regard as the variety of industry techniques and tools in the definition and implementation of project cost estimation. According to Project Management Body of Knowledge (PMBOK), “cost estimation is the iterative process of developing an approximation of the monetary resources needed to complete project activities.” Project teams ought to estimate costs for all resources that will be charged to the project. Precise cost estimates help you finish a project on-budget. The tools and techniques used to perform the estimates for the project would be a Project Management Estimating Software, using the Gantt chart tool, and the use of an expert’s judgment. The project management estimating software, using the Gantt chart was pretty tricky at first. After learning what information was needed to fill in the chart, it was very helpful. The Gantt chart made it easier to come up with a final estimate. The expert judgment approach was helpful as well because Baker Hughes Inc. relocated once the project management team have the experience with taking care of the relocating the department. The expert judgment method relies on the experience of their knowledge in similar environments in the previous completed projects and the accurateness of these projects. With a budget estimate the project manager can figure the goal or ideal amount the company is willing to pay for the services rendered. This figure the project manager obtained by the use of the budget is as follows; first the PM called the previous vendors to work out a deal for using their services again. Then the PM

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