Detailed planning – Initial estimation - Simple cost plan

Initial estimation

Simple cost plan

Obviously, until a detailed plan is available covering the initial stage of the project it is very hard to estimate costs.
As part of project approval the Project Board must be presented with an overall estimate of the project costs.

The first stage plan is required in more detail for the project approval process.

Initial cost estimation will be less accurate and the extra effort involved for a more detailed costing may be too high for the majority of the project early on.

Hence, the initial cost estimate may be rather simplistic as shown below.
The summary shows the costs for a variety of resources for different periods of the project.
These can be totalled for each period to represent a simple cash flow.

Any estimation of costs should be done in liaison with the financial department for their expert input.

Non - PRINCE2 information

Purchase the full product

Non – PRINCE2

Estimating [see Detailed planning – part 6 - Estimating - overview]
Estimating [see Detailed planning – part 7 - Estimating - why are estimates too long?]
Estimating [see Detailed planning – part 8 - Estimating - why are estimates too short?]
Estimating [see Detailed planning – part 9 - Estimating - data usage]
Estimation [see Detailed planning – part 3 - Initial estimation - high level plan (first review)]
Estimation [see Detailed planning – part 4 - Initial estimation - high level plan (second review)]
Estimation [see Detailed planning – part 5 - Initial estimation - budget cost plan]

PRINCE2 2005

Introduction

Definition [see Introduction part 1]
Terminology [see Introduction part 2]
What is a project? Scope [see Introduction part 3]
The processes [see Introduction part 4]
Introduction to processes [see Introduction to processes]
59The components [see The components]

Organization [see Organization - part 1]
Planning [see Planning (PL) - part 1]
Project Board [see Organization - part 2]

PRINCE2 2009

Introduction

Foreword [see Foreword]
Purpose [see Introduction part 1]
What does a project manager do? [see Introduction part 2a]
What is it we wish to control? [see Introduction part 2b]
The structure of PRINCE2 [see Introduction part 2c]
What PRINCE2 does not provide [see Introduction part 3]

Organization [see Organization - Purpose]

Process

Final delivery stage [see Introduction to processes - The PRINCE2 journey - Final delivery stage]
Initiation stage [see Introduction to processes - The PRINCE2 journey - Initiation stage]
Pre-project [see Introduction to processes - The PRINCE2 journey - Pre-project]
Subsequent delivery stages [see Introduction to processes - The PRINCE2 journey - Subsequent delivery stages]

Project

Stage

Time management

Introduction

Resources [see Resources]
Workaholic [see Workaholic]
What is time management? [see What is time management? Problem Time solving]
What is time management? [see What is time management? General]

Key time destroyers

Key Time Destroyers [see Key Time Destroyers]
Action chasing [see Action chasing]
Being disorganised [see Being disorganised]
Cant say 'No' [see Cant say 'No']
Crisis management [see Crisis management]
Desktop management [see Desktop management]
Friends [see Friends]
Large reports [see Large reports]
Low energy levels [see Low energy levels]
Meetings 1 [see Meetings 1]
Meetings 2 [see Meetings 2]
Multiple tasks [see Multiple tasks]
Others errors [see Others errors]
Other's jobs [see Other's jobs]
Paperwork [see Paperwork]
Perfection [see Perfection]
Poor communication [see Poor communication]
Poor control and reporting [see Poor control and reporting]
Poor delegation [see Poor delegation]
Poor information [see Poor information]
Poor leadership [see Poor leadership]
Poor planning [see Poor planning]
Poor preparation [see Poor preparation]
Poor self discipline [see Poor self discipline]
Putting things off [see Putting things off]
Resource issues [see Resource issues]
Responsibility, accountability and authority [see Responsibility, accountability and authority]
Socialising [see Socialising]
Staff issues [see Staff issues]
The boss [see The boss]
The telephone 1 [see The telephone 1]
The telephone 2 [see The telephone 2]
Travel time [see Travel time]
Unfinished tasks [see Unfinished tasks]
Unwanted callers [see Unwanted callers]
Work overload [see Work overload]
Your own errors [see Your own errors]

Planning

Assessment and planning [see Assessment and planning]
Implementing [see Implementing]
Prioritising [see Prioritising]
Scheduling [see Scheduling]
Review [see Review]

Risk management

Introduction

What is risk? [see What is risk?]
6 questions to define the project [see 6 questions to define the project]
The key areas of concern [see The key areas of concern]
What should risk analysis provide? [see What should risk analysis provide?]
3 Ways to view risk management [see 3 Ways to view risk management]
General comments on risk assessment [see General comments on risk assessment]
Accountability [see Accountability]
General comments on planning [see General comments on planning]
What are the core process steps to assess a risk? [see What are the core process steps to assess a risk?]
Simple process outline [see Simple process outline]
What are the basic overall process steps? [see What are the basic overall process steps?]
Stakeholders [see Stakeholders]
Success measures [see Success measures]
Why carry out Risk Assessment? [see Why carry out Risk Assessment?]

Leadership

Introduction

Definition of leadership [see Definition of leadership]
Leadership and effectiveness [see Leadership and effectiveness]
Leadership qualities [see Leadership qualities]
Leadership functions [see Leadership functions]

other sites of interest in the series