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PM Module 2

Module 2 discusses the Work Breakdown Structure (WBS) as a tool for breaking down projects into manageable parts, aiding in task identification and responsibility assignment. It also covers the Project Management Information System (PMIS), which integrates various subsystems for efficient project management, and outlines cost estimation processes, including types of costs and budgeting methods. The document contrasts top-down and bottom-up budgeting approaches, highlighting their differences in accuracy, preparation time, and team involvement.

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4 views1 page

PM Module 2

Module 2 discusses the Work Breakdown Structure (WBS) as a tool for breaking down projects into manageable parts, aiding in task identification and responsibility assignment. It also covers the Project Management Information System (PMIS), which integrates various subsystems for efficient project management, and outlines cost estimation processes, including types of costs and budgeting methods. The document contrasts top-down and bottom-up budgeting approaches, highlighting their differences in accuracy, preparation time, and team involvement.

Uploaded by

14ghostrecon12
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Module 2

WBS: A WBS is a flexible tool that breaks a project into smaller parts and shows how each part contributes
in terms of performance, responsibility, cost, and schedule. It helps in identifying tasks, assigning
responsibilities, estimating costs and time, and documenting project details like resources, specifications,
and vendors. WBS can also be used to create an Organizational Breakdown Structure (OBS), which shows
which departments or individuals are responsible for each task. It helps managers understand their roles
and responsibilities in the project.
Project Management Information System (PMIS) : A PMIS is essential for planning, controlling, and
integrating project activities and resources. It consists of multiple information subsystems that are
integrated, often using modern software and databases, to manage tasks like cost, scheduling, and
reporting efficiently.
PMIS is made up of modules, which can be classified as:
Primary Modules:
Project structuring & coding
Change control
Planning & scheduling
Secondary Modules:
Risk analysis
Contract administration
Safety
Benefits:
Improves planning and control of the project
Provides accurate and timely information
Enhances communication with higher management

Cost Estimation: Cost estimation is the process of predicting the total cost required to complete a project
within its scope. It includes all resources like labor, materials, and equipment, and helps in budgeting,
project approval, and cost control.
Types of Costs:
Direct Costs: Costs directly related to the project (labor, materials, equipment)
Indirect Costs: General organizational costs (utilities, quality control)
Cost Element:
Labor: Wages and time of team members
Materials & Equipment: Tools, software, permits

Top Down Budgeting Bottom Up Budgeting

Estimated by senior managers Estimated by team members doing the work

High-level, overall project Detailed, task by task

Less accurate More accurate

Quick to prepare Takes more time

Limited team input Full team participation

Used for rough estimates Used for precise budgeting

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