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Cost Estimation In Project Management

Determine Resource Needs: By evaluating the Skills Inventory and the Candidate Project repository, this process will identify anticipated requirements for quantities and capabilities of future resources. This information will provide The identification of critical training needs, A basis for employment opportunities and Criteria for contract personal.

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Helps to keep control of costs: Depending on the scope of the project, some projects can incur organisations significant costs. It is important therefore to keep on budget and to control spending. Project management greatly reduces the risk of budget overruns.

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Knowledge: The more projects a business undertakes, the more knowledge it will acquire over time. This will serve as an asset to any business and project management helps to capture and retain knowledge.Creates an opportunity for learning: Sometimes, projects work out perfectly and other times, project fail miserably. Either way, much can be learned from previous experience and past mistakes can be avoided in the future. Project management ensures that these lessons are learned and applied in the future.

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Establishes an agreed schedule and plan: Schedules help to eliminate delays or overruns and provide a plan to be followed for all those involved with the project. Creates a base for teamwork: People are required to work in a team on a project. This is due to team synergy benefits through the sharing and support of knowledge and skills. Bringing people together in this way inspires team members to collaborate on a successful project.

Project Identification is a repeatable process for documenting, validating, ranking and approving candidate projects within an organization.Due to the changing financial conditions within the total organization, it is necessary to establish a stable process for approving projects for initiation. This process will validate the business reason for each candidate project.

Due to the triple constraint which project managers face with regards to quality, time and scope, the way in which a PM deals with these constraints on top of all the other aspects of the project that need to be managed means a lot when judging a PM's skill on a project manager resume. Without Project Management there would be chaos in organisations which would induce stress, uncertainty and higher rates of failure, highlighting project management's essential nature to organisations.

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