Premium Essay

Basics of Estimation and Building a Risk Register in Project Management Office

In: Social Issues

Submitted By balbirahs
Words 1550
Pages 7
Title: Basics of Estimation and Building a Risk Register in Project Management Office
Authors Name: 1. Dr. Balbir Singh 2. Dr. Lakshmi B.
Affiliation: Administrative Staff College of India
Mailing Address: balbirahs@gmail.com
Mobile: 9059350790

Key Words: Project Management Office, Cost Estimation, Risk, Benchmark, Strategy.

Basics of Estimation and Building a Risk Register in Project Management Office

Abstract:
Analysis of measurement data from multiple projects allows the organization to formulate new estimating models and also to set certain benchmarks. Hence it is important to make measurement an integral part of the estimating process. Later, when we get ready to identify a risk, one thing that we must ask our self is what could greatly block the team or project from being able to achieve its objectives? When we take the time to figure out what may have an impact on our ability to reach our goals, this will give us the foundation which is necessary to properly construct the risk register.
Key Words: Project Management Office, Cost Estimation, Risk, Benchmark, Strategy.

Introduction:
The success of software projects depends largely on the Effort and Cost Estimation. Consequentially, a lot of work is done proposing good estimation procedure but without any convincing results. In this article we will see some ways on improving the accuracy of estimation.

What are estimates?
The word “estimate” is to produce a statement of the approximate value of some quantity. Note the word approximate. None of the estimates can be accurate because the initial estimation is based on the incomplete knowledge about the future. Hence, we should always ask ourselves “How close are we to the reality?”

Why software is difficult to estimate?
Software product differs in important ways from most other products. Unlike a construction of a building, software is composed of many…...

Similar Documents

Premium Essay

Pmo Project Management Office

...A Project Management Office (PMO) is a group or department within a business, agency or enterprise that defines and maintains standards for project management within the organization. The PMO strives to standardize and introduce economies of repetition in the execution of projects. The PMO is the source of documentation, guidance and metrics on the practice of project management and execution. In some organisations this is known as the Program Management Office (sometimes abbreviated to PgMO to differentiate); the subtle difference is that program management relates to governing the management of several related projects. Traditional PMOs base project management principles on industry-standard methodologies such as PMBOK or PRINCE2. Increasingly influential industry certification programs such as ISO9000 and the Malcolm Baldrige National Quality Award (MBNQA) as well as government regulatory requirements such as Sarbanes-Oxley have propelled organizations to standardize processes[citation needed]. Organizations around the globe are defining, borrowing and collecting best practices in process and project management and are increasingly assigning the PMO to exert overall influence and evolution of thought to continual organizational improvement[citation needed]. According to the Standish CHAOS Report (2009)[citation needed], 68% of projects do not meet time/cost/scope targets. Only 32% of projects were completed on time, within budget and delivered measurable business and......

Words: 482 - Pages: 2

Premium Essay

Project Risk Management

..."Project Risk Management" Please respond to the following: * Describe some of the tools and techniques that you can use as a project manager to mitigate risk in your projects. Support your response. * Provide realistic examples of each of the risk response strategies for both negative and positive risks. According to Schwalbe, risks can be assessed qualitatively or quantitatively. Tools for qualitative risk analysis include a probability/impact matrix and the Top Ten Risk Item Tracking Technique. Tools for quantitative risk analysis include decision trees and Monte Carlo simulation. Expected monetary value (EVM) uses decision trees to evaluate potential projects based on their expected values. Simulations are a more sophisticated method for creating estimates to help you determine the likelihood of meeting specific project schedule or cost goals. Sensitivity analysis is used to show the effects of changing one or more variables on an outcome. The four basic response strategies for negative risks are avoidance, acceptance, transference, and mitigation. Risk avoidance involves eliminating a specific threat or risk. A project team may decide to continue using a specific piece of hardware because they know it will work. Risk acceptance means accepting the consequences of a risk, should it occur. A project team can take an active approach to risk by having a backup plan if they cannot get approval for a specific site for a meeting. Risk transference is shifting the......

Words: 796 - Pages: 4

Premium Essay

Project Management Office

...The purpose of a Project Management Office is to define and maintain projects management standards that must be implemented and adhered to throughout the organisation. The project management office must standardise the way that projects are executed by ensuring that policies, processes and procedures are repeated in exactly the same way in all of the projects that are performed in the organization. The Projects Management Office is the source of documentation, guidance and metrics on the practice of project management and execution. According to Taylor, J (2006) the idea of a Project Management Office is not a new concept. It is an old concept that was brought to live again as a result of the need to manage projects, and specifically Information Technology projects, better. Information Technology organizations have struggled to deliver projects on time and within budget more than any others. In the mid-1990s, approximately 80 percent of all IT projects failed, and of those that were restarted, about 50 percent failed. Therefore, the challenge to manage projects more closely has caused a resurgence of PMO implementations. The purpose of the PMO can be divided into the following activities: Project management methodology: The most important activity of a PMO is to establish a project management methodology. In order for the PMO to establish a project management methodology it is required that the current business environment and way of managing projects are......

Words: 3955 - Pages: 16

Premium Essay

Project Management - Moving Office

...GMT 401 Project Management 10/13/2013 1 Sommaire Statement ............................................................................................................................................................................................... 3 The WBS : Work Breakdown .................................................................................................................................................................. 4 Shifting of the team : Schedule............................................................................................................................................................... 7 Diagramme de PERT ............................................................................................................................................................................. 8 Diagramme de GANT ............................................................................................................................................................................. 8 2 Statement Your organization counts 250 employees. Your main customer is Mondial Assistance : your are a call center in charge of answering calls from people in need of assistance, anywhere in the world. You call center is on 24/7 running schedule. You have 55 workstations, and your employees work in 3 shifts, so as to ensure the 24/7 coverage (from 7.00am to 3.00pm, from 3.00pm to 11.00pm and from 11.00pm to 7.00am ; during that late night shift, only......

Words: 1144 - Pages: 5

Premium Essay

Project Management Office

...responsibilities related to the centralized and coordinated management of those projects under its domain. The responsibilities of the PMO can range from providing project management support functions to actually being responsible for the direct management of a project”[1] “PMO is the administrative mechanism by which a focal point is provided for organizational project management activities”[2] “A project management office is a formal, centralized layer of control between senior management and project management”[3] Refer to the page on “PMO Functions” to see what responsibilities are typical of PMOs (e.g. Templates, Methodology, etc) Other popular names for the same type of entity are: Program Management Office, Project Support Office, Project Office, Center of Excellence, etc. The letter “P” in PMO stands for “Project” (and not Program or Portfolio). PMO also refers to a multi project office, that is, one PMO to oversee all projects in an organization rather than one PMO for each project. Those projects may be independent of each other, or they may be related and contributing together towards the same outcome as a single Program, or may be grouped in a Portfolio to facilitate their effective management towards meeting a strategic business objective. This definition is aligned with the PMI terminology used in PMBoK and to the PMO whitepaper by Hobbs[4] References: [1] PMI. (2003) Guide to Project Management Body of Knowledge (2003) PMI [online with subscription]......

Words: 334 - Pages: 2

Premium Essay

Project Risk Management

...Project Risk Management "Project Risk Management" Please respond to the following: * Describe some of the tools and techniques that you can use as a project manager to mitigate risk in your projects. Support your response. * Provide realistic examples of each of the risk response strategies for both negative and positive risks. According to Schwalbe, risks can be assessed qualitatively or quantitatively. Tools for qualitative risk analysis include a probability/impact matrix and the Top Ten Risk Item Tracking Technique. Tools for quantitative risk analysis include decision trees and Monte Carlo simulation. Expected monetary value (EVM) uses decision trees to evaluate potential projects based on their expected values. Simulations are a more sophisticated method for creating estimates to help you determine the likelihood of meeting specific project schedule or cost goals. Sensitivity analysis is used to show the effects of changing one or more variables on an outcome. The four basic response strategies for negative risks are avoidance, acceptance, transference, and mitigation. Risk avoidance involves eliminating a specific threat or risk. A project team may decide to continue using a specific piece of hardware because they know it will work. Risk acceptance means accepting the consequences of a risk, should it occur. A project team can take an active approach to risk by having a backup plan if they cannot get approval for a specific site for a meeting. Risk......

Words: 289 - Pages: 2

Premium Essay

Risks in a Home Building Project

...A Review of Risks Associated With Estimating a Home Building Project Michael T Bell PMAN 637 Originality Score 6% A Review of Risks Associated With Estimating a Home Building Project Introduction In building and construction, there are risks associated with estimating a home building project. These risks in construction are all the same across the board regardless the construction. Therefore, a home building projects is confronted with the same risks as any other project in the construction industry. The risks involved are such as; project management risks. The project management risks are mainly because of improper schedule. The improper schedule may be caused by poor allocation of time in various projects that may be involved in a home building project. Poor resource planning is another management risk. This is because due to poor allocation of resources often lead to misuse and many unaccounted losses. In addition, improper and poor management of disciplines or methodologies result into management risks in a home building project. Disciplines and methodologies are tricky and need a lot of experience to manage. Therefore, a minor mistake in management of discipline and methodology is a risk that can cause a huge negative impact in a home building project. Such risks are better identified with scheduled risks. Organizational risk is a major risk that most building and construction projects have to face, Most......

Words: 1501 - Pages: 7

Premium Essay

Risk Management in Projects

...2. Project Management 3 2.1 Definition of Project Management 3 2.2 Advantages and Disadvantages in Project Management 5 2.3 Success Factors in Projects 6 2.4 Control Project Progress 7 3. Project Risk Management 8 3.1 The Risk Management Process 8 3.2 Definition of Risk 10 3.3 Managing Risk 10 3.4 Identify Risks 11 3.5 Risk Quantification 14 3.6 Plan Risk Response / Methods 14 3.7 Risk Monitoring 18 4. The Organization of an International Conference in Paris, France 19 4.1 Project Identification 19 4.2 Classified the Project 20 4.3 Identification of Risks and measures to minimize the risk 21 5. Conclusion 23 6. List of Illustrations 24 1. Introduction The planned International Conference – “Launching Strategy of a new product”, reported to our management and sales persons is a new Project and has to be well organized and effectively realized. To ensure that the project leads to a suitable performance and to improve project success, a Risk Management Plan needs to be developed very early in the planning stage. For the project success, it is essential that potential risks are identified, categorized and evaluated. This seminar paper focuses on the relationship between the project organization and the application of risk management and the importance of implementing a Risk Management system to achieve the project objectives. This paper is subdivided into three parts, Project Management, Project......

Words: 3771 - Pages: 16

Premium Essay

Project Risk Management

...PM 595-Project Risk Management November 2010-Section A Project Part I Grayson Cash TCO A Identifying Project Risks The process for risk identification for a second Oresund Bridge would involve plan for risk management. This would involve first the secure risk management plan in place. This would involve meetings to clearly define the scope of the project. A second bridge and its usefulness, cost, and scheduling will be primary factors of interest. But another area would be in the enterprise environmental factors. These factors specifically are organizational structure, government/industry standards, infrastructure*, existing human resources, company work authorizations, stakeholder risks, and project information systems. The meetings would be to ensure that the risk management plan was consistent with the scope and in alignment with the desired results. It would also allow for brainstorming, document reviews, the Delphi technique, interviewing of key stakeholders, SWOT analysis, risks checklists, assumption analysis, diagramming techniques, cause and effect, and influence diagrams. Next, would be the process to meet to discuss the risks attributed with the management areas. The risks to scope, schedule, and cost. Considering the past project as a lessons learned, there were benefits that could be utilized that can limit the risks. The risks particularly associated with the second Oresund Bridge project is in its infrastructure. There are......

Words: 2042 - Pages: 9

Premium Essay

The Project Management Office System

...Project Management Office The project office is the office or department responsible for establishing, maintaining, and enforcing project management processes, procedures, and standards. It provides services, support, and certification for project managers [web definition]. In a broader sense, if an organization undertakes one or two project at any given time, it may able to easily implement project management discipline. However, the larger an organization gets, and the more projects that are executed at one time, the more difficult it becomes to develop a comprehensive methodology, train everyone and enforce the consistent use of the technology on all projects. Without this consistency, the full value of implementing a common value of a project management methodology is not reached (TenStep, Inc). There are many organizations that have started realizing the potential value of establishing a Project Management Office to strengthen their competitive advantage. The PMO structures project management into an organized, systematic approach that includes the following goals (Engle, 2005): 1. Project Definition: Goals and objectives, organization charts, and roles and responsibilities are documented. Some companies adopt a charter that lays out every aspect of the project before the first dollar is spent. 2. Project planning and control: The charter documents what is to be done, and the project plan lays out how it will be accomplished. The project plan includes the schedule,......

Words: 2770 - Pages: 12

Premium Essay

Project Risk Management Process

...1st draft Do Thi Ha Phuong 18249037 RISK MANAGEMENT 641 - ASSIGNMENT NO 1 TOPIC: PROJECT RISK MANAGEMENT PROCESS PART A – APPLICATION About the company and its functions. Joint Stock Company BT20 is established in 28/03/2012. The company operates in road construction areas. The company is implementing a restoration, renovation National Highway 20 project in Vietnam, Required main tasks of company are: clearance and compensation, the basic construction work, mine clearance, leveling, construction of roads, drainage and wastewater treatment systems, trees, power supply system. As well as any other investment, construction investment is likely to encounter risks to be inefficient investment as originally planned. Type of risks | Sub risk | Sub-Sub risk | Financial | Cost increases | Unreasonable Estimated costs.Weak Project Management | Natural | Unfavorable weather | - Raining- Storm | | Disaster | - Blood- Earthquake- Flooding | Safety | Accident in construction site | - Delay the construction- Reducing on reputant of company. | Time | Project duration is extended | - Cost for material increase- Lack of employee’s skills- Wrong estimate on cost- Lack of skill on project management. | 1. RISK IDENTIFICATION The effectiveness of the project is determined by three factors that are quality, cost and time (Saladis and Kerzner 2011). For the before and during the construction of NH20, the cost is considered to be one of the serious issues......

Words: 4121 - Pages: 17

Premium Essay

Project Risk Management Paper

...Course Project Project Risk Management Contents Introduction 4 Statement of work 5 Statement of Work—Project Description and 6 WBS 8 Risk Analysis and Probability Matrix – Qualitative Analysis 10 Risk Register 11 Decision Tree 11 Decision Tree Analysis 11 Fault Analysis Tree 12 Fault Tree Analysis Summary 12 Conclusions 13 Works Cited 13 Introduction Sherdon and Anissa Webb have been working parents for over 18 years. Both individuals understand the hardship of starting out and making yourself marketable in the corporate world. Now that their eldest son is in college, and they have seen how hard it was for him to get summer jobs and student work studies, they want to make the path a bit easier for their younger children. Their hope is to start a small business that will eventually become a family affair. This business will help the community as well as allow their children to have summer work growing up and instill in them the entrepreneurial spirit. As part of working class America, Sherdon and Anissa do not have a lot of income at their disposal. They will be investing all of their savings into this business, therefore, proper planning is a must. The business that they have decided to open is an employment agency. After researching the industry, both feel as though there is a market for this service and that the time it will take to open the business is......

Words: 2262 - Pages: 10

Premium Essay

Risk Register

...CIS517-IT Project Management VoIP Implementation-Risk Management Introduction: Risk is for all intents and purposes anything that debilitates or limits the capacity of a group or philanthropic association to accomplish its main goal. It can be startling and erratic occasions, for example, devastation of a building, the wiping of all our PC records, loss of stores through robbery or harm to a part then again guest who stumbles on a tricky floor and chooses to sue. Any of these or a million different things can happen, and on the off chance that they do they can possibly harm our association, money loss, or in a most dire outcome imaginable, cause your association to close. [1] Risk Management: Risk management is the procedure of distinguishing risk, surveying risk, and making moves to diminish risk to a worthy level. The risk management methodology decides the procedures, strategies, instruments, and group parts and obligations regarding a particular task. The risk management plan portrays how chance administration will be organized and performed on the venture. As an administration procedure, risk management is utilized to recognize and maintain a strategic distance from the potential cost, timetable, and execution/specialized dangers to a framework, take a proactive and organized way to deal with oversee negative results, react to them on the off chance that they happen, and distinguish potential open doors that may be covered up in the circumstance. The risk management......

Words: 1755 - Pages: 8

Premium Essay

Project Risk Management

...Eric Bani Professor James Young “Politics, Institutions, and Project Finance: The Dabhol Power Project. Strayer University 2011 Project risk management has been identified as the number one cause of project failure by most if not all organizations. In view of that project risk management is given prominent place in any project undertaken by businesses. Project managers are therefore are under immersed pressure to practice the best risk analysis methods in order to complete projects in time and within budget for the organization to be profitable. Project risk management is a science if you will, that uses several methods in identifying and accessing the risk factors and opportunities associated with a particular project and devising an effective response plan to avoid, mitigate, transfer or accept the risk. The project manager should assemble a professional team of different technical skills needed to complete the project making sure the project specifications are met. As a leader the project manager has to possess leadership qualities and most importantly communications skills to be effective in managing his/her team. The Dabhol power project was a good idea designed to generate additional electricity to India’s growing population but there were several problems including political, institutional and financial from the onset. Politically, India was a communist country aligned with the former Soviet Union thus the country was run by the central......

Words: 1006 - Pages: 5

Premium Essay

Project Management Office

...1. What is the current process of initiating projects within the organization? There are several functional departments that manage projects and have established standard processes and templates although these are not consistent across the organization. The PMO has developed a methodology and process, including standard tools and templates for project management to the implementation of the strategic programs of the company. 2. What is the operational relationship of the various locations vis-à-vis the implementation of strategies and execution of projects across these locations? Each strategic program has an assigned executive sponsor and is managed by a program leader. These program leaders are responsible for implementing the strategic projects across all Champion locations. 3. What type of organizational structure does Champion Technologies operate i.e. functional, projectized or matrix? The organization as a whole is largely functional, although as we continue to reorganize departments to better meet current and future challenges, we have some roles that have been matrixed. A matrixed organization has to be carefully monitored for conflicts where interdependencies lie so we follow a RACI model is these cases. In terms of the PMO, this is a small organization that reports to the President and CEO of the company. We serve as a functional interface with several executive leadership teams and the strategic Program......

Words: 1226 - Pages: 5

Login in with Twitter | Olay Mist Calming Ultimate Hydration Essence 3.4 oz | 1 pcs pedras e minerais naturais malaquita cura reiki bola esfera de cristal para decoração de casa com a base