5 Inputs Of Estimate Costs For Projects
In my previous articles, I have talked about some of the facts that you need to know about cost estimation for projects. In this article, I want to look at some of the inputs of estimate costs for projects. Follow me as we look at this together in this article.
Now the inputs…
#1 Project Management Plan
The project management plan is one of the vital document that can be used to estimate costs for projects. There are some subsidiary plans under a cost management plan that you will need when you want to estimate the cost for projects. Some of these include:
Cost management plan: The cost management plan describes estimating methods that can be used and the level of precision and accuracy required for the cost estimates.
Quality management plan: The quality management plan describes the activities and resources necessary for the project management team to achieve the quality objective set out for the project.
#2 Scope baseline
The scope baseline includes the project scope statement, WBS and WBS dictionary. I will highlight them in the following section:
Project scope statement: The scope statement reflects funding constraints by period for the expenditure of project funds or other financial assumptions and constraints.
Work breakdown structure: This provides the relationships among all the project deliverables and there various components.
WBS Dictionary: The WBS Dictionary and related detailed statements of work provide an identification of the deliverables and a description of the work in each WBS component required to produce each deliverable.
#3 Project Documents
The project documents that be considered as inputs for this process include:
Lesson learned register: Lesson learned register in the project with regard to developing cost estimates can be applied to later phases in the project to improve the accuracy and precision of the cost estimates.
Project schedule: The schedule includes the type, quantity, and the amount of time that team and physical resources will be active on the project. The duration estimate will affect cost estimates when resources are charged per unit of time and when there are seasonal fluctuations in costs. The schedule also provides useful information for projects that incorporate the cost of financing the project.
Resource requirements
Resource requirements identify the type and quantities of resources required for each work package or activity of the project.
Risk Register: The risk register contains details of individual project risks that have been identified and prioritized, and for which risk responses are required. The risk registers detailed information that can be used to estimate costs.
#4 Enterprise Environmental Factors
The enterprise environmental factors that can influence the estimate costs for projects include:
Market conditions: These conditions describe what products, services and results are in the market, from whom, and under what terms and conditions. Regional and or global supply and demand condition greatly influence revenue costs.
Published commercial information: Resource cost rate information is often available from commercial databases that track skills and human resource costs, and provide standard costs for material and equipment. Published sellers price lists are another source of information.
Exchange rate and information: For large scale projects that extend multiple years with multiple currencies. The fluctuations of currencies and inflation need to be considered and built into the Estimate cost process.
#5 Organisational Process Assets
The organisational process assets that can influence the estimate costs process include: cost estimating policies, cost estimating templates as well as historical information and lesson learned repository for the project.
Now Tell Us Your Own Side Of This Story.
We would also like to hear what you feel about the topic we discussed today. Your feedback is very important to us. Feel free to drop your comments and recommendations. If you have a contrary opinion, you can drop that too.
You can also become part of our Facebook Page CRMNigeria for more updates. You can do that by clicking on the link or searching for our page on Facebook.
You can also become part of our WhatsApp Group Here.
Enjoy Latest Music From across the globe. Download TubeNaira.