Build the Schedule and Budget
As an added example, if the schedule appears to be tight and the scope to a project or accepting a budget cut without taking the effort to. That's why no project plan is complete until you come up with a budget. . your completed project, there would be additional cost and a change to the scope, The schedule variance (SV) is the difference between the earned value (EV) and . The relationship between scope & the golden triangle of quality, schedule, and budget is arguably the most important thing a PM has to manage on a project.
In a sense, these are the four things that have to be defined and documented, and then constantly balanced and traded off with each other during the course of a project.
Specifically, he says that he wants to increase the size of the detached garage from 2-cars to 3-cars. What are you going to do? Your job as a project manager is to calculate how much those increases will be, what their impact and risks are, and then get formal approval from the customer before implementing them.
You probably also need to identify ways of minimizing the impact of the scope increase. For instance, you might be able to absorb some or all of the additional cost by reducing the level of quality on some of the delivered scope.
- Project management triangle
Changing from expensive Italian marble flooring, for instance, to less expensive wall-to-wall carpeting could potentially save enough to pay for the larger garage. Another common problem you might encounter is a customer asking for a faster delivery of the product. Instead of 9 months to build the house, the customer might come to you a few months into the project and ask that it be delivered in a month early.ETERNAL Constraints - The Project Management Triangle
Or, you might need to reduce the overall scope; e. Again, all four things scope, quality, schedule, and budget can often be balanced and traded off against each other in an effort to find the best overall solution. For example, reducing budget puts pressure on the other three items, and vice versa.
In other words, when making trade-offs and balancing between the constraints, you might have flexibility in changing only one or two of the constraints, but not the others.
Activity resource requirements, Activity attributes, Resource breakdown structure, resource calendars, request change updates.
Scope and Golden Triangle of Quality, Schedule, and Budget
Activity duration estimating[ edit ] Inputs: Enterprise environmental factors, organization process assets, Project scope statement, activity list, activity attributes, activity resource requirements, resource calendars, project management plan, risk register, activity cost estimates Tools: Expert judgment collection, analogous estimatingparametric estimatingBottom up Estimation, Two-Point estimation, Three-point estimationreserve analysis Outputs: Activity duration estimates, activity attribute updates and estimates Schedule development[ edit ] Inputs: Organizational process assets, Project scope Statement, Activity list, Activity attributes, project Schedule Network diagrams, Activity resource requirements, Resource calendars, Activity duration estimates, project management plan, risk register Tools: Schedule Network Analysis, Critical path method, schedule compression, what if scenario analysis, resources leveling, critical chain method, project management software, applying calendars, adjusting leads and lags, schedule model Outputs: Project schedule, Schedule model data, schedule baseline, resource requirements update, activity attributes, project calendar updates, request changes, project management plan updates, schedule management plan updates Schedule control[ edit ] Inputs: Schedule management plan, schedule baseline, performance reports, approved change requests Tools: Progressive elaboration reporting, schedule change control system, performance measurement, project management software, variance, analysis, schedule comparison bar charts Outputs: Schedule model data updates, schedule baseline.
Cost[ edit ] To develop an approximation of a project cost depends on several variables including: Tools used in cost are, risk managementcost contingencycost escalationand indirect costs. But beyond this basic accounting approach to fixed and variable costs, the economic cost that must be considered includes worker skill and productivity which is calculated using various project cost estimate tools.
This is important when companies hire temporary or contract employees or outsource work.
Cost Process Areas[ edit ] Cost Estimating is an approximation of the cost of all resources needed to complete activities. Cost budgeting aggregating the estimated costs of resources, work packages and activities to establish a cost baseline.
Project management triangle - Wikipedia
Cost Control — factors that create cost fluctuation and variance can be influenced and controlled using various cost management tools.
Using the cost of similar project to determine the cost of the current project Determining Resource Cost rates: The cost of goods and labor by unit gathered through estimates or estimation.
Using the lowest level of work package detail and summarizing the cost associated with it.