Bus517 Hw Week 4

Besides the factors described in the text, what other factors of an organizational culture could possibly influence the quality of estimates?

Aside from the factors listed in the book, there are other factors that could influence the estimate. If the organization is one that encourages its employees to take leave and provides plenty of it to be used, that would influence the estimate. When the employees take time off, you are not earning revenue. Also, if a company believes that the estimate is not that important and can always be adjusted later when the facts firm up, that would have a great impact.

List and discuss the major types of cost. Identify and discuss which of the costs are the most difficult to control and why.

There are three major types of costs. Direct costs, Project Overhead, and General and administrative (G&A).

Direct costs are chargeable to a specific task or project. The costs represent real cash outflows and must be paid as the project progresses. Individuals who work on a project bill their time directly to that project. Direct Overhead Costs more closely pinpoint which resources the organization are being used in the project. These costs can be tied to project deliverables or work packages. These costs can include facilities or PM salary. G&A Overhead costs represent costs that are not directly linked to a specific project and are carried for the life of the project. These costs include things like advertising and accounting.

I think the most difficult to control would be the indirect costs. These costs take into account many resources throughout the organization that you may not have complete control of.

Analyze and discuss why accurate estimates are critical to effective project management.

Estimates are critical because they forecast the time and cost of completing project deliverables. They are the lifeline for control; they serve as the standard for comparison of actual and plan throughout the life of the project...