Video Description

This lesson focuses on estimating activity resources for a project. These can be:

  • Material

  • Personnel

  • Equipment

Methods used for estimating can be: - Analogous (top down)

  • Bottom up

  • Parametric

  • Computerized

  • Program Evaluation Review Technique (PERT)

[toggle_content title="Transcript"] The next process is the estimate activity resources. This process focuses on resources for the project such as material, personnel and equipment. This process creates the activity resource requirements and the resource breakdown structure. Key inputs in this process are the schedule management plan, the activity list, resource counters, risk register, activity cost estimates, activity attribute, enterprise environmental factors, and organizational process assets. A project manager will use expert judgement, alternative analysis, publish estimating data, bottom up estimating and project management software to develop the activity resource requirement and resource breakdown structure. When your output is the resource breakdown structure, this is an example of one. To display that breakdown of resource types across the organization. In this example, I am showing project resources so I have people, material, and equipment. Just like in the WBS, I am numbering it the same way. One means the project resources, 1.1 defines the people, 1.2 defines the materials, and 1.3 is the equipment. If I break it down one more level, am now looking at wayward categories for people. So am looking at project managers, engineers, systems analyst, and production. If you notice 1.1 for each one of these different categories which indicates people. Project managers 1.1.1, engineers are 1.1.2, system analysts are 1.1.3 and production is 1.1.4. If I want to only take system analysts and break it down one more level, there are difference skills in there. There is audio visual, radio and IT. Going down one more level, I know it is going to be 1.1.3 and for audio visual its 1.1.3.1, radio is 1.1.3.2 and IT is 1.1.3.3. Your other output is the activity resource requirement. This identifies the resources required for the project based on the activities. Your resources are things that need to be used to accomplish the task. You have personnel, which is commonly referred to as resources; you also have equipment and infrastructure. Looking at the whole process, you have a lot of inputs. You have schedule management plan, which is giving you guidance, you have activity list, which you've created earlier, resource calendars, that's coming out of human resources. That's a calendar letting you know who's going to be available or what equipment or what rooms. It's letting you know what you need, who has it, and when it's available. Conference rooms are big for resource calendars. Risk registers that is out of the risk knowledge area. Activity cost estimates, activity attributes enterprise organizational factors and organizational process assets. Your tools once again you have expert judgement, you have alternative analysis, alternative analysis is trying to determine what is the best resource for that task. You have published estimating data which are standards used in the industry to give you what items will take to get done, who you are going to use, what goals are required. Bottom up estimating, basically you are taking the lowest level of WBS and you are trying to figure out what needs to be done at that level of the WBS and you are rolling up all those hours to figure how long it takes to get a task done. Very time consuming, and you also have project management software, which helps you for determining hours. It is recording as you are entering it into the boxes. Your outputs are the activity resource requirements and resource breakdown structure. Estimating methods, we have analogies, which is top-down. So this is basically comparing...I have done this on a similar project. It requires little time to figure this out. If I know it takes me two weeks to install a general conference room, putting in the projectors, the cables, the boards, I can work on another conference room and say it is going to take me two weeks to do it. Bottom up is just as I explained. You taking the lowest of WBS and you try to figure out how long it takes to do each one of those activities. Then you have parametric, and computerized which is monitoring input back into each one of these. Analogies, using an estimate based on something similar which is what I explained also know as top down. Advantage, as a margin it can be created very quickly, disadvantage lost detail. The other estimating method which is bottom up. This is created from activities. This is looking at the lowest level of WBS and assigning time to it. You are going to sum all those up and that's what is going to come up your total for that project or that task. Advantage, you are going to have a lot of detail, cause you are going from the very bottom. You are looking at every WBS and you are putting all together. I know it is going to take me four hours to hang a projection screen for example. It is going to take me eight hours to put a projector in. Disadvantages, it is very time consuming and if I am the one that's coming up with how long it takes to put up a projector screen or a projector, I like to plan my time. There's a law called [Prakansas law] which is, work is going to expand to the amount of time available. So I might say it will take me a full day to install a projector screen. This way I can relax and not be under stress for putting a projection screen up. Parametric, this is based on existing parameters. Can use industry standards, advantage, can be done quickly and accurate. An example I was giving a long time ago is in road construction. They know how many meters you go and how much it will cost and how much time it will take and what kind of terrain. With this, you already have all the information available, so it is quick and very accurate. And then there is computerized Montecarlo. I was told this was started in casinos. This is where this method came from. It's using a computer that you put a whole bunch of information in there and its spitting out how much time it is going to take, cost, and number of resources needed. The advantage is that it's very accurate, disadvantage is that it can be very time consuming to set up. PERT, stands for Program Evaluation Review Technique. You are going to look at the pessimistic, the optimistic and the most likely estimate. Most likely, you are going to multiply that by four to determine what PERT is. As I mentioned, this projection screen should take me four hours to do. So 4x4 is 16. Where is the pessimistic? Going for my PERT time that can be eight hours. So I am going to take that sixteen and add eight. Optimistic, can probably be done in one hour if everything goes well. So, am going to add up all those numbers and then divided by six and that will give me the PERT answer for that task. [/toggle_content]

Course Modules

Project Management Professional (PMP) - PMI

Instructor Background