First: Tools/Techniques
Instructions: Responses to classmates’ posts comprising at least 150 words supporting, challenging, clarifying, or adding to the existing information.
First Post:
Project management involves using a company’s resources towards a specific task to ensure that is timely and accurately completed (Alnaggar & Pitt, 2019). During this time managers have to work towards cost estimation to come up with an approximation of the budget size that the project will complete within. Therefore, there are various tools and techniques that managers use in cost estimation which are discussed below.
First and foremost, there is the analogous cost estimation technique. In this, the criterion of scope, size, duration, and weight of other projects of similar nature that have been done previously (Bolt & Van Zanden, 2020). Other cost estimation techniques include three-point estimation which includes three estimations namely; most likely, optimistic which is the best-case scenario, and pessimistic which is based on the worst-case scenario (Vartiainen et al., 2020).
I would prefer to use the analogous cost estimation technique because it is less time-consuming as well as less costly. This is because it only needs historical data related to the current project. I would also prefer the parametric cost estimation technique because despite the tedious algorithmic calculations it is proven to be very accurate hence giving the best results as opposed to the previous technique which might carry along some errors.
Second Post:
As a project manager, I prefer the Bottom-Up Estimating and Reserve Analysis for cost estimation. The reason for using these tools is that bottom-up Estimating estimates activities and generates a project total to provide a thorough cost breakdown. This method helps identify cost drivers and allocate resources by thoroughly understanding the project’s cost components. Involving the project team in activity estimation fosters ownership and accountability, improving cost estimation (Opinaldo, 2022). The thorough assessment also identifies cost-saving opportunities and resource availability modifications. Bottom-up estimating’s precision can be useful for complex projects or those that require cost control, but it takes time and effort to learn.
I prefer Bottom-Up Estimates for unusual, difficult, or diversified projects. Breaking the project into components allows for more precise estimation. It offers detailed job analysis, which is useful when precision is needed. Bottom-up estimates are more time- and resource-intensive but increase cost estimate accuracy (Millward-Hopkins et al., 2020). This technique also improves cost control throughout the project’s lifecycle by revealing activity-level cost drivers. I would balance accuracy and the project’s unique characteristics to choose the method that best meets the project’s needs and limits.
Supplementing Bottom-Up Reserve Analysis is necessary to estimate uncertainties and avoid cost overruns. Reserve Analysis sets aside funds for unexpected expenditures or project scope adjustments. The project manager realizes that unforeseen events or hazards can affect the budget by including contingency reserves. This method allows for unforeseen costs without jeopardizing the project’s finances (Millward-Hopkins et al., 2020). Reserve Analysis identifies risks and costs upfront, encouraging proactive risk management. It provides a financial safety net to help the project team handle unexpected events. Bottom-up estimating and Reserve Analysis balance accuracy and risk management. It provides a full grasp of project costs and uncertainties. This method helps the project manager make educated decisions, allocate resources, and handle changes, improving the project’s chances of success within budget.
Second: Apple Inc. Strategic Marketing Analysis and Evaluation
Instructions: After viewing your classmates’ presentations, actively participate by providing insightful comments, questions, or reflections on the topic and article. This interaction is essential for enriching the learning experience and gaining diverse perspectives.