Running Head: PROJECT MANAGEMENT 1

Project Management

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Reflection

Throughout the presentation and readings from chapter 11, it was quite important to

take note of the essentiality of project estimates. Projects are often put in place to give light to

the company’s future since they are the tools or weapons of success. Projects are meant to

benefit the company through improving a service or good or product. That aside, the

company has to be sure of how much they will have to spend on a given project. For a plan to

be considered effective, the benefits must surpass the cost of the project. Take, for instance;

you want to design an operating system for use in your business and to give customer use.

The organization through the board or committee will have to decide whether or not the

project will be effective. Efficiency and effectiveness are determined by how much the

company will spend in estimates vis-à-vis the outcome of that given plan.

Estimates can also be used to determine the time of the project completion, resources

to be utilized during the project, and cost of the entire process. Such prepares the organization

for worse in the future because the firm will have to lay down a contingency plan that may be

relied upon in case the first plan fails. The essential thing to have in a project is the plan of

how to achieve the goals, and this cannot happen without estimates as resources may be

wasted in the process. In the future project planning, it would be important to have cost

estimates of a project to help in knowing how much in estimates the entire project would

cost, and how long it will take for the whole project to be complete.

Part 2:

Cost estimate

Cost estimation is the forecasting process usually done to determine the cost and

resources required to complete a project or plan in project management. It is important

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because it enables the planner to identify risks associated with a project with an opportunity

of discussing alternatives should new requirements be needed. Work breakdown structure is

important in helping you get familiar with the work that has to be done during the project.

Such tasks to be performed during the project will help you estimate the cost of the plan by

knowing how much each task will require based on the resources needed to complete the

task. Lastly, the project schedule shows the tasks to be done, the resources to be used, and the

due date of the project. When determining the cost estimate of a project, it is important to

calculate the amount of money to be used for resources, tasks and at what time the project

should be done (Sanchez et al., 2020).

Functional point analysis

Functional point analysis is used in measuring the productivity of a software and the

cost of its development and maintenance. Information systems are meant to help the user, but

the needs can change over time. The changes would require an improvement hence

maintenance which may also be as a result of damage. When you have a recently hired

programmer, the project’s planner would have low estimates, which are contrary to what may

happen if the programmer has been there in the company for quite some time and may take a

little time for the maintenance process but will require a lot of resources due to the

complexity of the system or project (Rowe, 2020).

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References

Rowe, S. F. (2020). Project management for small projects. Berrett-Koehler Publishers.

Sanchez, F., Steria, S., Bonjour, E., Micaelli, J. P., & Monticolo, D. (2020). An approach

based on bayesian network for improving project management maturity: an

application to reduce cost overrun risks in engineering projects. Computers in

Industry, 119, 103227.