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PM592 Week 6 Discussion

PM592 Week 6 Discussion

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Published by Huyen Bui
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10/14/2013

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7/11/13Topic Print Viewthreadcontent.next.ecollege.com/(NEXT(c2554bec91))/Main/CourseMode/Topic/TopicPrintView.ed?topicID=29456104&sortBy=Title&sortOrder=Ascending&i…1/15
Week 6: Cost and Schedule Management - Discussion
Forecasting Project Completion Cost (graded)
We have introduced concepts in the earned value management system that allow us to forecast what it will cost tocomplete our project (Estimate To Completion, or ETC). We then use ETC to calculate the total actual project cost(Estimate At Completion, or EAC). In your own words, explain what ETC and EAC are and how the project teamuses this information to ensure project success.
Responses
ResponseAuthorDate/Time
Preparing Proactive ForecastsProfessor Orr 
6/8/2013 12:31:22 PMMy manager always likes to see the forecast and is impressed when we have it before she asks. Have you experienced this?Regards,Susan
RE: Preparing ProactiveForecastsChukie Okunzua
6/10/2013 5:43:38 AM
The final cost of a project when completed and the amount required to complete the project arevery important tool for determining if the project should proceed or be stopped. This is a vitalinformation that a manager is always eager to know as funding is at the heart of deciding what todo with a project. If a project is already over running its budget which is the case most of the time,the additional cost expected to be incurred if the project is to be completed becomes veryimportant to top management to decide what to do with the project.So every manager is happy tohave this information at her table if before requested.
RE: PreparingProactiveForecastsCauretta Bell
6/15/2013 12:19:16 PMI am working on a project currently at work and I was given a budgetof 600. I am creating a new trainingschedule for servers to lear there menu items. He would like me to forecast the amount of labor hoursthat will be spent and forecast the amount of food that we will use. he gave me the project and when heasked me how I was coming along on the project I was able to present him wit a schedule that forecastmy labor hours and the date that the training woukd be held
RE: Preparing ProactiveForecastsPhilip Effiong
6/10/2013 7:38:29 AM
Forecasting the final duration of the project is key to the success or failure of a project since itallows taking corrective actions when the predicted EAC (t) exceeds a certain threshold. Thisforecast is based on the actual time already spent on the work done and a prediction of theduration of the remaining portion of work to be done.Earned Value Management (EVM) is a well-known technique to control the time and costperformance of a project and to predict the final project duration and cost. It is an easy tool to
 
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generate early warning signals to timely detect problems or to exploit project opportunities.
RE: PreparingProactiveForecastsVarune Ramoutar 
6/10/2013 8:04:39 AM
What I have experienced is that my management always requires me to justify myforecast as well. So in addition to giving a forecast for schedule and budgetcompletion I must also give a detailed breakdown on how I arrived at those figurese.g. when creating pressure testing packages for piping systems I had a total of 8,000 packages to prepare. It took 5 hours to prepare each package => 8,000 x 5= 40,000 man hours. I had a staff of 10 persons working 40 hrs per week = 400 hrstotal per week. Thus the entire task should take 40,000 / 400 = 100 weeks. Alsothe average cost per man hour = $100 and materials for each test pack was $50thus the total cost per test pack was (40,000 x $100) + (8000 X $50) =$4,400,000.Thus my forecast to complete 8000 test packs was 100 weeks, $4,400,000 using astaff of 10.
RE: PreparingProactive ForecastsMaria Ventura6/10/2013 11:13:13 PM
Hello class,Since estimating is considered the process of forecasting a future result in terms of cost, based upon information available at the time. Forecasting only helps the manager to approximately know where the project is heading. So, you can ask before estimating,what is the budget or ask if there is a budget proposal that is being consider. This willdetermine the proposed EAC. If there is no budget proposal you can ask for therestraints, like the estimated project cost.Thank you//
RE: Preparing ProactiveForecastsNishan Ragoonanan
6/10/2013 2:46:30 PMMy manager is always excited as well to see a forecast for the schedule for a project, as we are always veryinterested in the completion date for a project. Since we're in the software development division, a lot of this is highlysubjective as far as estimates go, however we are held to the schedule and we are throughout the project expectedto continue to update our estimate to complete the project. We base this upon experience rather than metrics, usingseasoned developers to estimate the time required to complete certain work packages as we gain more insight intothe project. The cost to complete is directly based upon labor hours of software developers and so its simple tocalculate the cost once we have the time estimates.
RE: Preparing ProactiveForecastsHerminio Dionisio
6/11/2013 7:35:10 PM
Modified:
6/11/2013 7:47 PM
 
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Forecasting is the process of predicting future project performance based on the actual performance to date. As theproject progresses, there are ways on how we will be able to analyze how the project perform. Forecastinformation is about the project's past performance that could impact the project in the future and is popularlygenerated using earned value methods which is so valuable if needed as early as possible in crucial decision makingpurposes. Through accurate forecasting, project failure can be totally avoided. Corrective and preventive actionscan be effectively perform to minimized the overall impact on project cost and project schedule if detected earlythrough the use of other methods in forecasting aside from earned value analysis like time series analysis, and thelinear regression analysis to name a few.
RE: Preparing ProactiveForecastsBruce Foley
6/12/2013 11:20:15 PMWe use forecasting in our projects to estimate the profit of even doing a job. If we forecast that the cost of the job isnot of value to us due to time or cost constraints, we either work to figure out a more time or cost-conscious solutionto the benefit of our organization.
EAC and AETCSerge Ndongo
6/9/2013 6:09:03 PMThe Estimate At Completion (EAC) is simply the current costs of the project so far plus the costs related to the completion of theproject. The Estimate To Completion (ETC) is a projection of the time and or effort required to complete a project.Project teams use the work breakdown structure to facilitate estimation. They can review the tasks at the bottom of the workbreakdown structure and look for the longest path through the sequence diagram. They can then use experience from previousprojects to estimate the time it will take to complete those tasks.
RE: EAC and AETCEsperanca Rosa
6/9/2013 11:59:54 PM
Hi class,Yes, I have experienced this before. For instance, my manager asked me to handle a smallproject from the beginning. Nothing was settled down or ready for that project, and it was a bigchallenge for me. It was my first time to be in charge of a project. My boss traveled for a week,and I started working right he left. I created my project schedule, costs, and forecast. The mostinteresting thing was that I didn’t have room available with conditions. So this was my priority onthat time (focus).We had a small room that was full of foolish material, and my first decision was to take out thatmaterial and start refurbish that room for my project. I made an inventory of the resources I wouldneed to prepare the room such as painting, lamps, hard floor, etc. I had six workers that neededconditions to work. The room didn’t even have chairs, tables, computers, phone, and other important things that people needs to be to work. So I prepared everything in one week. When myboss went back, he was delighted with what I have done. He was so surprised and satisfied withthe results I’ve made in one week. He praised me saying that it was a proactive attitude. This wasa great experience for me and gave me confidence to continue working on that project.To conclude, the estimate for completion of our project was in a great way because we were in agood path to complete our project on time.Thanks,Esperanca
Credibility of your ForecastProfessor Orr 
6/10/2013 10:18:37 AM

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