WEEK 5-BLOG-ESTIMATING COSTS AND ALLOCATING RESOURCES
WEEK 5-BLOG
BLOG ASSIGNMENT: ESTIMATING COSTS AND ALLOCATING RESOURCES
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This website provides 10 tools for estimating the project cost. These tools use a variety of methods to estimate costs, such as historical data, the use of experts, or mathematical calculations, risk management, conformance, vendor analysis, group decisions, and project management applications. triangulation or beta distribution formulas to arrive at an estimate. These estimation tools vary in complexity, ease of use, and accuracy. The most useful thing about this website is that it gives the prospective project manager many options to estimate cost based on what might be available to them, such as experts, historical data, and mathematical calculations, and uses parameters like scope, budget, duration, size, weight, and complexity of previous projects.
This website not only provides a project management web application to assist with cost estimation and budgeting for projects but offers various methods to calculate the cost or budget. On this website, the project estimate is based on historical data, information from the client, and duration as a means for determining resources and cost estimates. What I like about this website is that introduces me to a new tool in costing referred to as a cost breakdown structure (CBS), which is similar to the WBS where each item in the hierarchy represents a type of cost ( projectmanager.com, n.d.). This website explores the various types of costs and the various cost estimation techniques. What I like about it is that it also provides a sequential ten-step Cost Estimate procedure which guides inexperienced project managers on how to do the costing for their project (projectmanager.com, 2023).
This website has useful tools for allocating resources for project management. This website explored four critical resource allocation methods and outlined the steps for effective resource allocation, namely: the critical path method, the critical chain method, resource leveling, and resource smoothing. These methods attempt to allocate and schedule resources based on what is needed to get the job done using various criteria. What I find useful in this website is the explanation of the sequential steps for creating effective resource allocation.
This website provides a web-based application that assists prospective project managers on how to allocate resources to the tasks in their projects. The author of this website opines that allocating the wrong resources to a project can negatively impact its success and client satisfaction (Marks, 2023). This website reveals that resource allocation constitutes allocating time and resources to deliver a return on investment to the organization while minimizing the risks. Resource allocation requires the PM to balance the budget, schedules, and deliverables to attain a return on investment for the organization. What is particularly useful in this website are the tips and tools for allocating resources, and the author warns against the impact of such circumstances as under and over-allocation of resources.
REFERENCES
Hoban, S. (2023). 4 Best Resource Allocation Methods in Project Management. https://thedigitalprojectmanager.com/projects/pm-methodology/resource-allocation-methods-in-project-management/
Koeneke, B. (2023). Project Cost Estimation: How to Estimate Project Cost. https://www.projectmanager.com/blog/cost-estimation-for-projects
Marks, L. (2022). How to Allocate Resources to Projects. https://www.runn.io/blog/how-to-allocate-resources
Tutorialpoint (n.d.). Top 10 Tools and Techniques to Estimate Project Cost
Hi Carol,
ReplyDeleteThis is Kaitlyn Zimmerman. I enjoyed reading your post and learning about some new resources you came across for project cost estimation and resource allocation. You provided four resources, and two of them I had never heard of before. It's always helpful to learn more about different resources out there. I especially like the you provided tips about things you liked from each resource and what each resource can do.
A question I want to ask you is not necessarily geared towards one of these resources in particular, but since you did list four different resources, I wanted to ask you this question. At first when I saw you posted four resources, I got excited and overwhelmed at the same. I got excited because there were new resources I had never heard of before, and overwhelmed because there were many resources to look at and learn about. With that said, I am sure there are other people in the same boat of being overwhelmed with knowing what resource to use for project cost estimation and resource allocation. Doing a quick Google search brings up thousands of sites to visit and learn from, and knowing where to start can seem daunting. What advice would you give to someone who is trying to figure out where to start with their search for learning more about project cost estimation and resource allocation so they don't shut down from being overwhelmed before they even start?
As I end, I think tools such as the CBS that is offered on Project Manager's site is very helpful. It is very easy to see that a CBS makes you aware of all the nitty-gritty pieces that consume costs so you are aware up front how much the project will really cost (Angeline, 2022). With that said, did you come across any other resources during your search that help to provide a helpful tool or outline for PMs as they create a CBS? (Because doing a CBS from scratch can be hard, time-consuming, and has the potential for something to be left out.)
Thanks Carol!
Reference
Angeline, M. (2022, August 4). Cost breakdown structure: How to create a CBS in 5 easy steps.
Runn. https://www.runn.io/blog/cost-breakdown-structure#:~:text=A%20cost%20breakdown
%20structure%20(CBS)%20is%20a%20document%20that%20details,form%20of%20bottom
%2Dup%20analysis.
Hi Carol,
ReplyDeleteThe sites you posted consist of information that is for reinforcement. I particularly liked the second website because it provided a general explanation of project cost estimation, the different types, and techniques (Koeneke, 2023). There was also a template on the site that can be used as a guide for managing every aspect of a project which includes the template with formulas for the cost estimate. I always go to project manager.com to learn more about the duties of a project manager and view the tools needed to develop and execute a project.
Reference
Koeneke, B. (2023). Project cost estimation: How to estimate project cost. Retrieved from https://www.projectmanager.com/blog/cost-estimation-for-projects
Hi Carol,
ReplyDeleteThank you for your post. It seems that ProjectManager is a popular website with all the resources it offers. I also appreciate the other resources you highlighted. Estimating the budget can make or break a project, creating pressure to get it right.