Project Management Report: Analyzing Project Delays and Estimates

This report delves into the critical aspects of project management, focusing on the analysis of project delays and the challenges associated with accurate estimations. It begins by outlining the methods used to identify the root causes of delays, including forensic schedule analysis, which utilizes techniques like CPM and fishbone diagrams, along with retrospective and prospective delay analysis approaches. The report then shifts its focus to the primary causes of inaccurate project estimates, highlighting issues such as insufficient time for uncertainty management and the creation of artificially low budgets. It also explores other contributing factors, including false analogies, subjectivity, coordination neglect, team selection, and estimation oversight. Finally, the report provides actionable steps to prevent bad estimates, emphasizing the importance of adequate planning, stakeholder involvement, effective communication, and a proactive approach to project management. It concludes by summarizing key principles for successful project estimation, including future prediction, past remembrance, and resource organization.

Running head: PROJECT MANAGEMENT 1
Project Management
Student’s Name
University’s Name

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I will undertake following analysis to identify root cause of delays:
Forensic schedule analysis: It involves the usage of CPM or other calculative methods,
fish bone diagrams to investigate the events (Sedky, 2017).
There are two approaches for delay analysis - Retrospective and Prospective. In
retrospective approach As-planned versus as-built (APAB) method is used which analyses the
differences between planning and implementation of the project.
Progressive approach includes a) Time-Impact analysis (TIA) dealing with the progress
and the timing of the project; b) Impacted as planned (IAP) method where the delay is
considered by the imposition of events on the model depicting original baseline.
Time impact analysis is done by project scheduler by insertion of activities that indicate
delays in updates scheduled.
Primary causes of bad estimates
Most of the projects overrun time and cost due to the estimation issues. There are two
primary reasons for bad estimates - Insufficient time to deal with the uncertainties; and creation
of a fake low budget estimate in order to get the project approved (Smarter Solutions, Inc.,
2017).
Time pressure can degrade the quality of the estimates. This may lead to omission of
certain points of considerance. The project is usually completed after the deadline. If the quality
of project is commendable, then the time overrun may be sometimes a lesser issue. Also,
managing the project in short time duration can lead to additional cost input. The availability of
less time for project completion leads to crashing of the resources and assets of the company by
the manager. This crashing of resources leads to over budgeting of the project (Kolinger &
Associates, 2010).

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The reasons for improper cost estimation lies behind the creation of fake low budgets to
get the project approved. The team managers give unexpectedly low budget assumptions for their
projects so that they may induce the administrative authorities to approve their project. Apart
from this, many of the projects run out of time and to compensate this, the crashing of resources
and assets leads to over budgeting.
Other factors contributing to bad estimate
False analogies: It is assumed that the project estimates based on the historical data are
more reliable in comparison to expert judgment but actually this implication belongs only when
the project is identical to the one mentioned in history. In reality, the projects differ in critical
ways.
Subjectivity: It is an issue when the projects are based on the gut feel or some other
subjective notions. Such projects are more prone to cognitive biases and overconfidence.
Coordination neglect: In a project, most of the tasks need to be coordinated and
integrated. Usually this side of project implementation is underestimated and tends to create
problems.
Wrong team: The estimation of a good team of developers is important. Choosing the
right team and then maintaining the same team throughout is a challenge. In case any team
member gets removed or leaves the task, it becomes difficult for the new member to understand
the framework of the project.
Forgetting the estimate: This problem arises when people working on the project forget
about the pre decided estimates and continue with the project. This leads to misinterpretation of
the cost and time estimates.

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Steps of prevention from bad estimates:
 Taking the required time before estimating the time and cost of project. A long term
planning can resolve the issue.
 Involvement of the stakeholders in the beginning can help in the resolution of the issue.
Once the project starts, they forget about the estimates and this leads to bad estimate
(Brown, 2011).
 Communication at every step is essential. The leaders must communicate the
assumptions and uncertainties with their team members on every step.
 The leaders must proceed through their project with an optimistic number, i.e., keeping
the worst case estimate in mind and communicating it.
 The three major steps that must be remembered while project estimation are-
"Prediction of future; remembrance of past; and proper organization of resources"
(PM Tools that Work, 2017).
References
Brown, J. T. (2011). What Causes Bad Estimates …and What You Can Do About It. PMI
Community Post.
Kolinger & Associates, L. (2010). 7 Signs of Bad Project Estimates - And How You Can Fix It.
Retrieved from www.slideshare.net: https://www.slideshare.net/jkolinger/7-signs-you-
have-a-bad-project-estimate-and-what-you-must-do-about-it
PM Tools that Work. (2017). Three Ways Project Management Estimates Fail And How To
Avoid Them. Retrieved from http://pmtoolsthatwork.com:
http://pmtoolsthatwork.com/three-ways-project-estimates-fail-and-how-to-avoid-them/

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Sedky, A. F. (2017). Selecting the Best Delay Analysis Technique. ProjectManagement.com.
Smarter Solutions, Inc. (2017). What Causes Bad Project Estimates: Time And Cost. Retrieved
from www.smartersolutions.com: https://www.smartersolutions.com/what-causes-bad-
project-estimates-time-and-cost.html