Bg007 Project Management And Calculative Assessment Answers

I will undertake following analysis to identify root cause of delays:

Forensic schedule analysis: It involves the usage of CPM or other calculative methods, fish bone diagrams to investigate the events (Sedky, 2017).

There are two approaches for delay analysis - Retrospective and Prospective. In retrospective approach As-planned versus as-built (APAB) method is used which analyses the differences between planning and implementation of the project.

Progressive approach includes a) Time-Impact analysis (TIA) dealing with the progress and the timing of the project; b) Impacted as planned (IAP) method where the delay is considered by the imposition of events on the model depicting original baseline.

Time impact analysis is done by project scheduler by insertion of activities that indicate delays in updates scheduled.

Primary causes of bad estimates

Most of the projects overrun time and cost due to the estimation issues. There are two primary reasons for bad estimates - Insufficient time to deal with the uncertainties; and creation of a fake low budget estimate in order to get the project approved (Smarter Solutions, Inc., 2017).   

Time pressure can degrade the quality of the estimates. This may lead to omission of certain points of considerance. The project is usually completed after the deadline. If the quality of project is commendable, then the time overrun may be sometimes a lesser issue. Also, managing the project in short time duration can lead to additional cost input. The availability of less time for project completion leads to crashing of the resources and assets of the company by the manager. This crashing of resources leads to over budgeting of the project (Kolinger & Associates, 2010).

The reasons for improper cost estimation lies behind the creation of fake low budgets to get the project approved. The team managers give unexpectedly low budget assumptions for their projects so that they may induce the administrative authorities to approve their project. Apart from this, many of the projects run out of time and to compensate this, the crashing of resources and assets leads to over budgeting. 

Other factors contributing to bad estimate

False analogies: It is assumed that the project estimates based on the historical data are more reliable in comparison to expert judgment but actually this implication belongs only when the project is identical to the one mentioned in history. In reality, the projects differ in critical ways.

Subjectivity: It is an issue when the projects are based on the gut feel or some other subjective notions. Such projects are more prone to cognitive biases and overconfidence.

Coordination neglect: In a project, most of the tasks need to be coordinated and integrated. Usually this side of project implementation is underestimated and tends to create problems.

Wrong team: The estimation of a good team of developers is important. Choosing the right team and then maintaining the same team throughout is a challenge. In case any team member gets removed or leaves the task, it becomes difficult for the new member to understand the framework of the project.

Forgetting the estimate: This problem arises when people working on the project forget about the pre decided estimates and continue with the project. This leads to misinterpretation of the cost and time estimates.

Steps of prevention from bad estimates:

• Taking the required time before estimating the time and cost of project. A long term planning can resolve the issue.
• Involvement of the stakeholders in the beginning can help in the resolution of the issue. Once the project starts, they forget about the estimates and this leads to bad estimate (Brown, 2011).
• Communication at every step is essential. The leaders must communicate the assumptions and uncertainties with their team members on every step.
• The leaders must proceed through their project with an optimistic number, i.e., keeping the worst case estimate in mind and communicating it.
• The three major steps that must be remembered while project estimation are- "Prediction of future; remembrance of past; and proper organization of resources" (PM Tools that Work, 2017).

References

Brown, J. T. (2011). What Causes Bad Estimates …and What You Can Do About It. PMI Community Post.

Kolinger & Associates, L. (2010). 7 Signs of Bad Project Estimates - And How You Can Fix It. Retrieved from www.slideshare.net: https://www.slideshare.net/jkolinger/7-signs-you-have-a-bad-project-estimate-and-what-you-must-do-about-it

PM Tools that Work. (2017). Three Ways Project Management Estimates Fail And How To Avoid Them. Retrieved from https://pmtoolsthatwork.com: https://pmtoolsthatwork.com/three-ways-project-estimates-fail-and-how-to-avoid-them/

Sedky, A. F. (2017). Selecting the Best Delay Analysis Technique. ProjectManagement.com.

Smarter Solutions, Inc. (2017). What Causes Bad Project Estimates: Time And Cost. Retrieved from www.smartersolutions.com: https://www.smartersolutions.com/what-causes-bad-project-estimates-time-and-cost.html