Managing the Risk, Managing the Estimates

There lies the key challenge. How do you manage the uncertainty that is naturally involved with the estimating process? Since these estimates form the foundation for the project schedule and the project budget, we must implement techniques and approaches that allow us to properly manage this risk and the expectations of our stakeholders.

While this subject of estimating and risk could easily slip into a review of statistics, probability, standard deviations, skewed distributions, and Monte Carlo analysis, we will not go there. In many real-world environments, these advanced concepts and techniques are not utilized to estimate work and to manage the associated risk, and these topics would be outside the scope of this book. Our focus will be understanding the impact that estimating the work has on our overall risk management approach and what we can do to minimize the those risks.

Estimating the work is a fundamental risk analysis step. Not only do you estimate work efforts, but you also identify the assumptions that support the estimate and the key risk factors that may impact the accuracy of those estimates. These key outputs are depicted in Figure 7.3.

Figure 7.3. Estimates are key inputs for scheduling, budgeting, and risk management.

Part i. Project Management Jumpstart

Project Management Overview

The Project Manager

Essential Elements for any Successful Project

Part ii. Project Planning

Defining a Project

Planning a Project

Developing the Work Breakdown Structure

Estimating the Work

Developing the Project Schedule

Determining the Project Budget

Part iii. Project Control

Controlling a Project

Managing Project Changes

Managing Project Deliverables

Managing Project Issues

Managing Project Risks

Managing Project Quality

Part iv. Project Execution

Leading a Project

Managing Project Communications

Managing Expectations

Keys to Better Project Team Performance

Managing Differences

Managing Vendors

Ending a Project

Absolute Beginner[ap]s Guide to Project Management
Absolute Beginner[ap]s Guide to Project Management
ISBN: 078973821X
Year: 2006
Pages: 169 © 2008-2020.
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