Project Cost Estimating Process Interactions
Project Cost Estimating Process Interactions
By John Filicetti
Referring to the Cost Estimating Process Flowchart below, the individual processes are linked by their inputs and outputs. This Flowchart also indicates the key points at which the Customer review and approval is necessary for quality assurance purposes. The input, outputs and the supporting basis for the outputs on the key cost estimating processes are as follows:
| Inputs | Supporting Basis | Outputs |
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Initial meeting with Customer to gather information on current business needs and project goals. Based on the Project definition and high-level understanding of the scope, a preliminary estimate will be developed as part of the Concept Proposal for customer, Stakeholder, and Governance review. |
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Project Requirements and Project Schedule will be developed for customer’s approval and will provide the basis for a more complete estimate. The requirements will also provide a baseline for validation and verification of scope during testing. |
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The more accurate total project cost estimate is based on the knowledge gained with the creation of the Project Design. The updated Concept Proposal or Project Cost Plan will reflect the adjusted total cost. The project cost plan and expenses to date will be communicated in the Monthly Status Report. |
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Estimation Process Flow
John F. Filicetti, PMP, MBA
John Filicetti is a Sr. Sales Engineer/PM-PMO-PPM Consultant with a great depth of experience and expertise in enterprise project management, project management methodologies, Project Portfolio Management (PPM), Project Management Offices (PMOs), Governance, process consulting, and business management. John has directed and managed project management teams, created and implemented methodologies and practices, provided project management consulting, created and directed PMOs, and created consulting and professional services in such areas as project portfolio management, Governance, business process re-engineering, network systems integration, application development, infrastructure, and complex environments. John has enjoyed many years as PMO Director for large corporations in the Seattle area and leads the PMO Roundtable discussion group and forum.
