In order to develop the estimates, the budget, the ROI and the quality plan, while MS
Project is the central backbone, we also use additional plugins. MS Project does not work very
well with network diagram execution, for example, and yet because of their utility over Gantt
charts we prefer the former.
There are three methods to go about estimating with MS Project. These are analogous
estimating, parametric estimating and bottom up estimating. With analogous estimating, a past
experience is utilized, such as a similar experience in the past or an estimate. Parametric
Estimation requires that mathematical calculations be made to calculate based on historical data
as to how much paint will essentially be needed. Extrapolating can also be done.
Bottom Up Estimating
Bottom up estimating consists of estimates from a variety of people for different
activities. Each person may be an expert in the specific activity estimate they provide. Since here
an eclectic collection of expenses are involved, since there are advertising, franchising, printing,
leasing etc costs, we used the bottom up estimating principles.
Budgeting Tools and Techniques
Budgeting tools enable to focus on the most important aspects of the project and
relinquishing the least important ones. The four most important techniques for budgeting include
cost aggregation, reserve analysis, historical data and funding limit reconciliation.
Cost aggregation progresses from the activity level to the work package level, so they can
be managed and overseen at the work package level. Project expenditures are controlled by the
tool managers using a cost baseline.
Reserve analysis concerns the buffer allocated to protect against cost overruns. This
contingency reserve does not become a part of the cost baseline but is included in the project
budget. The greater the risk, the greater the buffer allocated for a project.
Using historical data is similar to using parametric estimation because here historical data
from a similar project in the past is used to estimate another in the future. What makes the
technique relevant is there should be a small time gap and the projects should be increasingly
Funding Limit Reconciliation
Funding limit reconciliation refers to the minding of the supply of money at any given
time. Therefore the pressing concern is the release of funds and when they become available.
When there is limited funding or released in steps, then the order and magnitude of tasks
undertaken must be carefully analyzed (Haynes, 2002).
Return on Investment
ROI has been calculated as a ratio of the return to the investment.
ROI = Return/Investment
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