Real Examples of Project Estimation Errors and Their Causes

Real Examples of Project Estimation Errors and Their Causes

From research, find a project that had problems with estimation (schedule, cost, or both) and describe the magnitude and causes of the problem, and the effect on the project and the project’s long-term result.

reply two other students.

JZ:

Projects require estimations about their duration and budget costs. In the past, project estimates have been developed to allow for flexibility in various project change dynamics. Nonetheless, each change during a project is reflected in the budget costs. However, errors do occur during the estimation process and may cause a project manager to struggle to manage resource constraints (Zwikael, Chih & Meredith, 2018). A practical example of a project estimation error happened within an organization I worked for, a software development firm. The mistake involved a project manager’s unrealistic projections and targets. The estimates were not realistic and, thus, an impact on the overall project.

The primary error involved false precision; specific estimates were quantified in single numbers rather than a range of numbers. Although there was minimal effect on the project results, the estimation error led to teams working towards impossible estimation targets. Many shortcuts were taken to help the concerned groups remain on schedule for the project’s timely delivery (Zwikael et al., 2018). In turn, the project manager overlooked the project’s significant aspects and factors and thus undermined the essential phases of project management. Identifying an effective way to minimize project erodes is key to avoiding such issues as the one presented above. It is also fundamental for a successful project.

KZ:

The estimation of schedules is an important aspect of planning. Despite the action being an estimation, errors are likely to occur and they could be costly and harm the plan implementation process. When making the estimations therefore planners need to be extra careful in their estimations such that they will make an accurate estimation without a high error margin (Williams, 2017). The results of a high error could be catastrophic forcing the organization to make adjustments to the budget and in other instances, constraints exist which makes the work to be terrible. In the case of schedule estimation error, it results in instances of overstretching the resources and rushing with deadlines which are not achievable and thus reducing the efficiency of the program.

I was once working in an organization that was involved in the branding of t-shirts which were to be used for events. In one of the incidences the scout who went out to take orders negotiated an order with an organization that wanted the t-shirts branded and printed for an event that was due to be produced in two weeks. The client stated that they needed the t-shirts printed the soonest as possible to allow them to be used for the event. When asked about the timeframe that would be needed to accomplish the program the scout stated that the process would take only five days. The timeframe given however was not realistic and this resulted in significant challenges in the implementation of the contract. Some of the employees involved in the production process were forced to work extra hours during the period to be able to complete the order. The cost of production was adjusted ad some employees were paid overtime which was an unnecessary cost thus reducing the profitability of the contract.

References

Williams, T. S. (2017). Pricing, estimating, & budgeting. Cincinnati, Ohi: North Light Books.