Project Management: The Managerial Process Chapter 5 Vocabulary/Notes
Planning horizon factor - (correct Answer) - estimates of current events are close to 100 percent accurate
but are reduced for more distant events.
New technology factor - (correct Answer) - has a habit of expanding in an increasing, nonlinear fashion.
Poorly written scope specs result in errors in estimate time and costs
People factor - (correct Answer) - accuracy of estimates depends on the skills of the people making the
estimates
Project structure factor - (correct Answer) - a dedicated project team has concentrated focus and
localized project decisions versus a matrix environment that may reduce costs but take longer to
complete (divided attention and coordination demands)
Pad estimates factor - (correct Answer) - We add a little padding time to reduce the risk of being late.
Organizational culture factor - (correct Answer) - can significantly influence project estimates. Some
people believe the estimates while others just figure it out as they go.
Nonproject factors - (correct Answer) - i.e. equipment downtimes, national holidays, vacations, and legal
limits
Estimating Guidelines for Times, Costs, and Resources - (correct Answer) - 1) Responsibility - at the work
package level, estimates should be made by the person(s) most familiar with the task.
2) The use of several people to estimate - crowdsourcing has a better chance of being reasonable and
realistic for cost or time estimates.
3) Normal conditions - estimates should be based on normal conditions, efficient methods, and a normal
level of resources.
4) Time units - all task time estimates need consistent time units (calendar days, workdays, workweeks,
person days, single shift, hours, minutes, etc.)
5) Independence - estimators should treat each task as independent of other tasks that might be
integrated by the WBS
Planning horizon factor - (correct Answer) - estimates of current events are close to 100 percent accurate
but are reduced for more distant events.
New technology factor - (correct Answer) - has a habit of expanding in an increasing, nonlinear fashion.
Poorly written scope specs result in errors in estimate time and costs
People factor - (correct Answer) - accuracy of estimates depends on the skills of the people making the
estimates
Project structure factor - (correct Answer) - a dedicated project team has concentrated focus and
localized project decisions versus a matrix environment that may reduce costs but take longer to
complete (divided attention and coordination demands)
Pad estimates factor - (correct Answer) - We add a little padding time to reduce the risk of being late.
Organizational culture factor - (correct Answer) - can significantly influence project estimates. Some
people believe the estimates while others just figure it out as they go.
Nonproject factors - (correct Answer) - i.e. equipment downtimes, national holidays, vacations, and legal
limits
Estimating Guidelines for Times, Costs, and Resources - (correct Answer) - 1) Responsibility - at the work
package level, estimates should be made by the person(s) most familiar with the task.
2) The use of several people to estimate - crowdsourcing has a better chance of being reasonable and
realistic for cost or time estimates.
3) Normal conditions - estimates should be based on normal conditions, efficient methods, and a normal
level of resources.
4) Time units - all task time estimates need consistent time units (calendar days, workdays, workweeks,
person days, single shift, hours, minutes, etc.)
5) Independence - estimators should treat each task as independent of other tasks that might be
integrated by the WBS
