Showing posts with label Reducing the Estimation Gap. Show all posts
Showing posts with label Reducing the Estimation Gap. Show all posts

Monday, February 25, 2013

Reducing the Estimation Gap




Based on a Knowledge Shelf article by Hrishikesh Karekar, PMP



Your project is going deeper and deeper into crisis as time goes on. Costs spiral upward; milestone due dates are pushed back ever later.   
We all know that cost and time overruns can lead to project cancellation or failure. Yet these overruns continue to happen. Why is that, and what can you do about it?

Why Do We Overrun?
Often, cost and time overruns are blamed on forecasting errors — imperfect techniques, inadequate data, honest mistakes, lack of experience by the forecasters, etc.
But were the planned budget and timeline correct and realistic? Or were they underestimated and impractical from the beginning?