BUS 361 Lecture Notes - Lecture 4: Work Breakdown Structure, Cost Estimate, Point Estimation

• School: Simon Fraser University
• Department: Business Administration
• Course: BUS 361
• Professor: Zorana Svedic

Document Summary

Lecture 4 costs and resource management : introduction to estimation. Top-down estimates: driven by the top managers, project sponsors give you the budget, specific deadline, giving you resources (human and others, therefore, the project becomes one in which the scope must match the time, budget, and resources given. There is often some element of top-down budgeting in any project: sponsors are within the support role, recommendations for sponsors are very situational whether it"s moral support or concrete support. Accurate information about previous projects: this can be considered a top down method as well, doesn"t look too deeply into details. Parametric estimates (only possible if you keep the documentation for past projects: estimating based on rules of thumb or a guidebook, use actual costs of older, similar projects. Apply a multiplier to account for the impact of inflation, labor and material increases, and other reasonable costs. Can be used to estimate time, money and other resources.