Unformatted text preview: the other hand, these cost-estimating models often involve terms with exponential parameters that are supposed to capture these subtle estimating relationships. The result is that these models are often unreasonably sensitive to small changes in these estimating parameters. The project manager should always use judgment in accepting the detailed cost estimates of team members, and the process of approving the labor-hour and the cost budgets for each work package should involve a dialogue between the proj - Page 46 ect team members who will be responsible for the work and the team members who will be responsible for project monitoring and control. On small projects, the only one doing project monitoring and control may be the project manager, and the dialogue may be between only the project manager and half a dozen other team members. Some companies bid on projects before a project team is formed. In fact, it is often the case that these bids are done by marketing or ''business development" teams. These bids must be based on some kind of estimate, and it is often the case that these business development teams are the ones that embrace these simple estimating models, rather than engage in detailed cost estimating. Business development teams can usually bring in experienced project management personnel to do the detailed cost estimating, but this increases the cost of bidding for a job. In this book, the assumption is made that the project manager (or business development team) will opt for detailed cost estimating and that the members of the project team responsible for the work packages will be involved in producing the detailed cost estimates for the work packages. Detailed cost estimating is not difficult, but it does take time. Detailed cost estimating is, in fact, straightforward. Since each task has already been quantified, it is not surprising that an experienced team member can give a reasonably good estimate of the labor-hours it takes to complete such a task. The labor-hour estimates for the tasks shown in Figure 2-7 appear in the Original Mhrs column of Figure 2-11. Since the example project is a hypothetical project, no great pains have been taken to ensure that these labor -hour estimates in Figure 2-11 are particularly realistic. You can now enter these labor-hour estimates into their respective tasks using the Task Entry/Edit tool (shown in Figure 2-8), with which you are already familiar. The column labeled Original Mhrs , which stands for original man-hours , is the original labor-hour budget for each task. The terms manhours and Page 47 Figure 2-11. Quantification and labor -hour estimates for tasks in Figure 2- 7. labor-hours are equivalent. In the case of man-hours, the term is used generically and does not literally mean work done by men. There does not exist a corresponding term women-hours. The classical notation of man-hours has been retained here because the classical abbreviation mhrs (manhours) is well known, while a similar abbreviation for labor- hours is not. Th...
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- Spring '10
- Project Management, project manager