Question

What can organizations do to ensure that estimates are good? What can they do to prevent cost overruns? minimum 300 words

Answer 1

Organizations can do a lot to ensure that the estimates made by them are good enogh to stand for a long and make maximum profits to the organization. Some of the common steps include :

1)Adoption of appropriate estimation methodologies.

2)Proper utilization of historical data to make some good estimates.

3)Accurate and timely documentation of change requests.

4)Use mock ups, trial runs, field studies or other simulations as a guide.

The organization can hire Researchers , forecasters who have some good ecperience in that filed. The can conduct various surveys and help the organizations in making proper estimates.

To prevent cost overruns many steps can be taken. Some of them are listed below :

1)Paying attention to project planning, as an inappropriate project planning may lead to a lot of costoverruns as it is the most essential component of the projext estimation.

2) Checking a vendor's capabilities before hiring, beacause investment should be done on skilled perople only, The firm must check how good they are sticking to deadlines in their previous projects.

3)Using good scheduling tools and chats. Following proper scheduling processes and implementing the work according to them can help you prevent cost overrun.

4) Constantly checking the progress situation gives some early signals of project delays which gives us the opportunities to fix the issues before the boil over.