Project times ans costs Assignment Example | Topics and Well Written Essays - 1250 words

Project times ans costs - Assignment Example One would need to consider time and costs in project management since these are the major inputs that need accuracy. To control any project well, accuracy of estimates in mandatory since good project control entirely depends on the extent to which the estimates are accurate. There is no need for under/overruns in a project. In fact, poorly managed project shows such symptoms majorly because of inaccuracies that existed during estimation or estimations were totally absent Project managers usually need to make good and informed decisions concerning the amount of the estimates that they require for the specific projects. For instance, in a project to construct a building, the construction manager would need to make accurate estimates of all the materials required so that cost estimates can be made. This will enable the manager to make informed decision on how much the cost of completing the construction would be without making any losses. This show how important accurate estimates are i n decision making. Another important factor to know in a project is how long the project would take as well as the total cost that the project will need to completion (Michael, 2008). These are questions that can only be responded to well by carrying out accurate estimation of both costs and time. Resources are very scarce, therefore the available ones should be planned well with to meet the intended needs. This can only be achieved in project management by good management of time and financial resources through accurate estimates. To control and manage a project well, one needs to develop cash flow needs. This will enable the project manager to predict the payback period of the project and even make the breakeven analysis. From the payback period, is easy to know whether the project is viable or not. It also becomes easy to know how much funds are required for the project maintenance and to achieve all these correctly, accurate estimate is required. Any good managed project require s a time phased budget. To develop this and establish a baseline for the project, accurate estimates must be done. The time passed budgets include the prices of different materials and how they change with time. Time might cause changes in the prices of materials; therefore, proper estimates need to be done to give accurate allowance for such adjustments when they occur in the future. Errors normally occur to anyone doing anything. The only difference is to what significant is the error to the project. Normally errors occur when estimations are not done correctly or just not done at all. To avoid or reduce errors in a given project, there is need for an accurate estimation to be done. This also helps in reducing under/overruns. The differences between bottom-up and top-bottom estimation techniques One must first appreciate that both bottom-up and top-bottom are project estimation techniques. However, bottom-up technique proves more accurate as compared to the top-bottom technique an d this marks the major difference between the two (Mark, 1997). The bottom-up technique, however, takes much time to carry out in as much as it is accurate. The top-bottom technique on the other hand is very fast to execute but less accurate. Bottom up technique is carried out by thoroughly by estimating each and every package of work in a WBS. This technique is normally applied once the management and its client are already committed to the project and