Concept explainers
Why are accurate estimates critical to effective project management?
To determine:
The reason accurate estimates are significant for an effective project management.
Introduction:
Project management can be effective if the time of delivery of project and the costs involved are estimated accurately. These are estimated in advance to make a baseline for any project.
Explanation of Solution
The accurate estimate is critical to effective management for the following reasons:
- Accurate estimates help in making good decisions,
- Work can be scheduled effectively,
- It helps in determining the timeframe to complete the project and cost of completing the project.
- It helps in determining whether doing the project would be beneficial.
- It can help in determining whether cash flow needs can be developed.
- Helps in determining the progress of the project.
- It helps in developing time phased budgets and helps establish the project baseline.
Also, any inaccurate estimate can lead to false expectations which can result in customer dissatisfaction.
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Chapter 5 Solutions
PROJECT MANAGEMENT
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