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Unformatted text preview: roject, the pool may include "junior and senior engineers" in large numbers. During later phases of the same project, however, the pool may be limited to those individuals who are knowledgeable about the project as a result of having worked on the earlier phases. .5 Organizational policies. The policies of the performing organization regarding staffing and the rental or purchase of supplies and equipment must be considered during resource planning. .6 Activity duration estimates. Time durations (described in Section 188.8.131.52). ment ment geE L geE PL P 7.1.2 Tools and Techniques for Resource Planning .1 Expert judgment. Expert judgment will often be required to assess the inputs to this process. Such expertise may be provided by any group or individual with specialized knowledge or training, and is available from many sources including: Other units within the performing organization. Consultants. Professional and technical associations. Industry groups. .2 Alternatives identification. Alternatives identification is discussed in Section 184.108.40.206. .3 Project management software. Project management software has the capability to help organize resource pools. Depending upon the sophistication of the software, resource availabilities and rates can be defined, as well as resource calendars. 7.1.3 Outputs from Resource Planning .1 Resource requirements. The output of the resource planning process is a description of what types of resources are required and in what quantities for each element at the lowest level of the WBS. Resource requirements for higher levels within the WBS can be calculated based on the lower-level values. These resources will be obtained either through staff acquisition (described in Section 9.2) or procurement (described in Chapter 12). 7.2 COST ESTIMATING
Cost estimating involves developing an approximation (estimate) of the costs of the resources needed to complete project activities. In approximating cost, the estimator considers the causes of variation of the final estimate for purposes of better managing the project. When a project is performed under contract, care should be taken to distinguish cost estimating from pricing. Cost estimating involves developing an assessment of the likely quantitative result--how much will it cost the performing organization to provide the product or service involved? Pricing is a business decision--how much will the performing organization charge for the product or service--that uses the cost estimate as but one consideration of many. 86 NAVIGATION LINKS ACROYMNS LIST ACRONYMS LIST ACROYMNS LIST A Guide to the Project Management Body of Knowledge (PMBOK Guide) 2000 Edition 2000 Project Management Institute, Four Campus Boulevard, Newtown Square, PA 19073-3299 USA Chapter 7--Project Cost Management Cost estimating includes identifying and considering various costing alternatives. For example, in most application areas, additional work during a design phase is widely held to have the pote...
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