Podcast
Questions and Answers
According to a good engineering project manager, cost estimation should precede schedule estimation.
According to a good engineering project manager, cost estimation should precede schedule estimation.
False
Defining tasks is the last step in creating a credible schedule prediction.
Defining tasks is the last step in creating a credible schedule prediction.
False
Only the final task in each chain is fixed to an actual calendar date.
Only the final task in each chain is fixed to an actual calendar date.
False
Task-to-task dependencies can only take the form of a chain of tasks.
Task-to-task dependencies can only take the form of a chain of tasks.
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Independent tasks cannot be estimated simultaneously.
Independent tasks cannot be estimated simultaneously.
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A credible schedule prediction is a basic expectation for a bad engineering project manager.
A credible schedule prediction is a basic expectation for a bad engineering project manager.
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Estimating the schedule is not a necessary step in project management.
Estimating the schedule is not a necessary step in project management.
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Estimating the cost is a prerequisite to estimating the schedule.
Estimating the cost is a prerequisite to estimating the schedule.
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Task durations are estimated in a deterministic fashion.
Task durations are estimated in a deterministic fashion.
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The work-breakdown structure is used to estimate the cost of the project.
The work-breakdown structure is used to estimate the cost of the project.
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Study Notes
Elements of Cost Estimates
- Cost estimates consist of:
- Cost related to task duration (duration × number of people × hourly cost of each person)
- Number of trips to various locations required to perform the work
- Quantity of materials and unit cost of each material
The S-Curve
- The S-curve represents cumulative probability (Y-axis) plotted against likely project cost (X-axis)
- The curve shows the probability of completing the project within a certain cost range
- For example, if the curve shows a 10% probability at a cost of $123,000, it means there is a 90% chance the project will cost more than $123,000
Factors Affecting Schedule Predictions
- Resource availability: Access to resources directly affects project completion time
- Number of workers: The number of workers and their skill levels affect project duration
- Project location: Environmental and legal factors can impact project duration
Estimating Cost and Schedule
- Cost prediction is the process of forecasting financial resources required to complete a project
- The schedule for each task is converted to a cost estimate for that task
- The project's business manager adds up cost estimates for every task and includes a management reserve to create a cost estimate for the entire project
- Three-point estimates can be created for cost, similar to schedule estimates
Predictions for Schedule and Cost
- Predicting schedule and cost are basic expectations for a good engineering project manager
- Predictions about cost depend significantly on schedule estimates
- Schedule is estimated before cost
Credible Schedule Prediction
- Define tasks through the creation of the work-breakdown structure
- Identify interdependencies between tasks
- Estimate the duration of each task in a statistical fashion
- Only the initial task in each chain is fixed to an actual calendar date; all other dates are derived from task interdependencies and task durations
Task Interdependencies
- Task-to-task dependencies can take various forms
- Examples include:
- Two tasks, where the second is dependent upon the first
- Multiple tasks awaiting the completion of a task
- One task waiting upon the completion of multiple tasks
- Two tasks, where the tasks are independent of each other
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Description
This quiz covers the elements of cost estimates, including cost related to task duration, trips to locations, and material quantity and unit cost. Learn how to estimate project costs and represent them in a graphical S-curve.
