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Project Management Triangle
The project management triangle (called also the ''triple constraint'', ''iron triangle'' and ''project triangle'') is a model of the constraints of project management. While its origins are unclear, it has been used since at least the 1950s. It contends that: # The quality of work is constrained by the project's budget, deadlines and scope (features). # The project manager can trade between constraints. # Changes in one constraint necessitate changes in others to compensate or quality will suffer. For example, a project can be completed faster by increasing budget or cutting scope. Similarly, increasing scope may require equivalent increases in budget and schedule. Cutting budget without adjusting schedule or scope will lead to lower quality. "Good, fast, cheap. Choose two." as stated in the Common Law of Business Balance (often expressed as "You get what you pay for.") which is attributed to John Ruskin but without any evidence and similar statements are often used to encapsula ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Project Management Body Of Knowledge
The Project Management Body of Knowledge (PMBOK) is a set of standard terminology and guidelines (a body of knowledge) for project management. The body of knowledge evolves over time and is presented in ''A Guide to the Project Management Body of Knowledge'' (''PMBOK Guide''), a book whose seventh edition was released in 2021. This document results from work overseen by the Project Management Institute (PMI), which offers the CAPM and PMP certifications. Much of the ''PMBOK Guide'' is unique to project management such as critical path method and work breakdown structure (WBS). The ''PMBOK Guide'' also overlaps with general management regarding planning, organising, staffing, executing and controlling the operations of an organisation. Other management disciplines which overlap with the ''PMBOK Guide'' include financial forecasting, organisational behaviour, management science, budgeting and other planning methods. History Earlier versions of the ''PMBOK Guide'' were recogn ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vendor Bid Analysis
Vendor Bid Analysis (Vendor analysis) is a technique used to figure out the cost of a project by comparing the bids submitted by many suppliers. This can be accomplished by considering the costs (via quotes, bids, proposals, etc.) presented for project work. By using a selection criteria divided into categories, vendor proposals have to meet these criteria or may be eliminated. Evaluating Bids While analyzing the bids of a product or service, the buying side may consider the following: * Records from previous deals * Meeting with quality needs * Seller capacity and resources * Meeting deadlines in records * Financial capability See also * Construction bidding * Design–bid–build * Cost estimate A cost estimate is the approximation of the cost of a program, project, or operation. The cost estimate is the product of the cost estimating process. The cost estimate has a single total value and may have identifiable component values. A proble ... References External lin ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Escalation
Cost escalation can be defined as changes in the cost or price of specific goods or services in a given economy over a period. This is similar to the concepts of inflation and deflation except that escalation is specific to an item or class of items (not as general in nature), it is often not primarily driven by changes in the money supply, and it tends to be less sustained. While escalation includes general inflation related to the money supply, it is also driven by changes in technology, practices, and particularly supply-demand imbalances that are specific to a good or service in a given economy. For example, while general inflation (e.g., consumer price index) in the US was less than 5% in the 2003-2007 time period, steel prices increased (escalated) by over 50% because of supply-demand imbalance. Cost escalation may contribute to a project cost overrun but it is not synonymous with it. Over long periods of time, as market supply and demand imbalances are corrected, escalation wi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Cost Contingency
When estimating the cost for a project, product or other item or investment, there is always uncertainty as to the precise content of all items in the estimate, how work will be performed, what work conditions will be like when the project is executed and so on. These uncertainties are risks to the project. Some refer to these risks as "known-unknowns" because the estimator is aware of them, and based on past experience, can even estimate their probable costs. The estimated costs of the known-unknowns is referred to by cost estimators as cost contingency. Contingency "refers to costs that will probably occur based on past experience, but with some uncertainty regarding the amount. The term is not used as a catchall to cover ignorance. It is poor engineering and poor philosophy to make second-rate estimates and then try to satisfy them by using a large contingency account. The contingency allowance is designed to cover items of cost which are not known exactly at the time of the estim ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Risk Management
Risk management is the identification, evaluation, and prioritization of risks, followed by the minimization, monitoring, and control of the impact or probability of those risks occurring. Risks can come from various sources (i.e, Threat (security), threats) including uncertainty in Market environment, international markets, political instability, dangers of project failures (at any phase in design, development, production, or sustaining of life-cycles), legal liabilities, credit risk, accidents, Natural disaster, natural causes and disasters, deliberate attack from an adversary, or events of uncertain or unpredictable root cause analysis, root-cause. Retail traders also apply risk management by using fixed percentage position sizing and risk-to-reward frameworks to avoid large drawdowns and support consistent decision-making under pressure. There are two types of events viz. Risks and Opportunities. Negative events can be classified as risks while positive events are classifi ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Reserve Analysis
Reserve or reserves may refer to: Places * Reserve, Kansas, a US city * Reserve, Louisiana, a census-designated place in St. John the Baptist Parish * Reserve, Montana, a census-designated place in Sheridan County * Reserve, New Mexico, a US village * Reserve, Wisconsin, a census-designated place in the town of Couderay * Reserve Mines, a community in Cape Breton Regional Municipality, Nova Scotia, Canada Auctions * Auction reserve, a minimum amount of money bid required for a sale, e.g., in an English auction * No-reserve auction (NR), also known as an absolute auction, an auction in which the item for sale will be sold regardless of price * Reserve price, the underlying concept Economics and finance * Reserve (accounting), any part of shareholders' equity, except for basic share capital * Actuarial reserves, a liability equal to the present value of the future expected cash flows of a contingent event * Bank reserves, holdings of deposits in central banks plus currency that ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Three-point Estimation
The three-point estimation technique is used in management and information systems applications for the construction of an approximate probability distribution representing the outcome of future events, based on very limited information. While the distribution used for the approximation might be a normal distribution, this is not always so. For example, a triangular distribution might be used, depending on the application. In three-point estimation, three figures are produced initially for every distribution that is required, based on prior experience or best-guesses: * ''a'' = the best-case estimate * ''m'' = the most likely estimate * ''b'' = the worst-case estimate These are then combined to yield either a full probability distribution, for later combination with distributions obtained similarly for other variables, or summary descriptors of the distribution, such as the mean, standard deviation or percentage points of the distribution. The accuracy attributed to the results deri ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Parametric Estimating
Estimation theory is a branch of statistics that deals with estimating the values of parameters based on measured empirical data that has a random component. The parameters describe an underlying physical setting in such a way that their value affects the distribution of the measured data. An ''estimator'' attempts to approximate the unknown parameters using the measurements. In estimation theory, two approaches are generally considered: * The probabilistic approach (described in this article) assumes that the measured data is random with probability distribution dependent on the parameters of interest * The set-membership approach assumes that the measured data vector belongs to a set which depends on the parameter vector. Examples For example, it is desired to estimate the proportion of a population of voters who will vote for a particular candidate. That proportion is the parameter sought; the estimate is based on a small random sample of voters. Alternatively, it is ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Analogous Estimating
Analogy is a comparison or correspondence between two things (or two groups of things) because of a third element that they are considered to share. In logic, it is an inference or an argument from one particular to another particular, as opposed to deduction, induction, and abduction. It is also used where at least one of the premises, or the conclusion, is general rather than particular in nature. It has the general form ''A is to B as C is to D''. In a broader sense, analogical reasoning is a cognitive process of transferring some information or meaning of a particular subject (the analog, or source) onto another (the target); and also the linguistic expression corresponding to such a process. The term analogy can also refer to the relation between the source and the target themselves, which is often (though not always) a similarity, as in the biological notion of analogy. Analogy plays a significant role in human thought processes. It has been argued that analogy lies ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Arrow Diagramming Method
Arrow diagramming method (ADM) is a network diagramming technique in which activities are represented by arrows. ADM is also known as the activity-on-arrow (AOA) method. Usage ADM is used for scheduling activities in a project plan. Precedence relationships between activities are represented by circles connected by one or more arrows. The length of the arrow represents the duration of the relevant activity. ADM only shows finish-to-start relationships, meaning that each activity is completed before the successor activity starts. Sometimes a "dummy task" is added, to represent a dependency between tasks, which does not represent any actual activity. The dummy task is added to indicate precedence that can't be expressed using only the actual activities. Such a dummy task often has a completion time of 0. Use of ADM as a common project management practice has declined with the adoption of computer-based scheduling tools. In addition, the precedence diagram method (PDM), or a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Precedence Diagramming Method
The precedence diagram method (PDM) is a tool for scheduling activities in a project plan. It is a method of constructing a project schedule network diagram that uses boxes, referred to as nodes, to represent activities and connects them with arrows that show the dependencies. It is also called the activity-on-node (AON) method. * Critical tasks, noncritical tasks, and slack time * Shows the relationship of the tasks to each other * Allows for what-if, worst-case, best-case and most likely scenario Key elements include determining predecessors and defining attributes such as * early start date * late start date * early finish date * late finish date * duration * activity name * WBS reference Slack/ Float: Determines the duration of activity delay that the project can tolerate before the project comes in late. The difference between the earliest and the latest start time. i.e. Slack = latest start date - earliest start day or Slack = latest finish time - earliest finish time. A ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
