:AACE CERTIFICATION 2009-2010:

WBS

So surprisingly, our blog page is visible to the world and my previous posting on "the estimate process" was one of the blog entries viewed and commented by a leading name in the world of on-line project management, Josh Nankivel, at http://pmstudent.com/. Hopefully, Transformers can make the best use of the blogging time as one of preparation pages for selling your self in the PM market. Visiting http://pmstudent.com/ and reading Josh Nankivel's paper on the "Top 7 WBS Mistakes Project Managers Make" also bring me passion to study more intensively on "the estimating process" in connection with WBS development.

* Estimate development
Cited from Humphreys, chapter 23, Estimate development, the estimate development is so specific based on what is being estimated. So talking about estimate development means that we are talking about the factors in the development process of which the estimate process is a part.
+ The estimating process
In this week entry "the estimate process" is more on details of components and ways to do for processes that I've mentioned in the previous post.
1. Project Definition (Scope) - The starting point of any estimate is a description of the project. Or in other words, before making a plan or estimate for any project a clear scope or definition of the project should be specified clearly. A good estimate starts with a good and clear understanding on the project scope, what should be done or fulfilled in a time frame to reach the set target.
2. Contracting Strategy - A basic understanding of how the work is going to be accomplished contractrually is neccessary.
3. Quantities Estimates - this kind of estimate is often based on the similar project experience to quantify the work to be done because there may be a little project that provide the estimate development in the early stage.

4. Labor Installation Rates (Hours) - Normally this type of data is available in the company's commercia database where type of works is listed and rated.

5. Apply hourly rates - the hour estimate shoud be converted to dollars

In establishing a WBS each of activity including in the WBS should have the above 14 factor reviewed. The 14 factors in the estimate process are a very good referential source for those projec managers who would like to thrive for cost estimate success. Without the understanding each of above factors PM may fail to reach the successful estimation at the end of the day.