Information Technology Project Management
8th Edition
ISBN: 9781285452340
Author: Kathy Schwalbe
Publisher: Cengage Learning
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Chapter 7, Problem 4DQ
Explanation of Solution
Example of preparing rough order:
- In order to provide new mobile devices for 50 people, we can have a cost estimate of around $25,000.
- It is important to have a detailed and accurate estimation rather than using a rough estimate.
- A rough order of magnitude estimate can be done 3 or more years earlier before completing the project.
- In order to take purchasing decisions on any project, we need to make fixed estimates for final project costs.
- For example, if projects require 1000 mobiles, initially they are planning to buy 50 mobiles in the next few months.
- For this we need a clear cost estimate for evaluating supplier proposals.
- The accuracy of this estimate is 5 percent loss or 10 percent more than the definitive estimate.
Examples of using tools or techniques for creating a cost estimate:
We have many tools or techniques to calculate ROM estimate. These tools and techniques are as follows:
Analogous estimate:
It uses the actual cost of mobile devices that have been purchased in any other organization or institutes...
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Chapter 7 Solutions
Information Technology Project Management
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