Lecture Project management: A managerial approach – Chapter 7: Budgeting: estimating costs and risks

In chapter 7, we will see that the distinction between these types of life cycles plays a critical role in developing budgets and schedules for projects. It is not necessary for the PM to estimate the precise shape of the life-cycle curve, but the PM must know which type of project life cycle applies to the project at hand.

Budgeting: 

Estimating Costs 

and Risks

shares of budget

Reserve Analysis

Advantages

requirements 

Subordinate

Typical Monthly Budget

Project Budget by Task & Month

7­28

n T

rate r

n T T

1 1

1

 time Total

2 log log

Other Factors