Historical Information Review is the process of examining and analyzing data from previous projects that are similar in nature, scope, or complexity to the current project. This data can provide valuable insights into the cost estimation process, helping project managers establish more accurate and…Historical Information Review is the process of examining and analyzing data from previous projects that are similar in nature, scope, or complexity to the current project. This data can provide valuable insights into the cost estimation process, helping project managers establish more accurate and reliable cost estimates for their projects. By reviewing historical data and understanding how past projects were executed, project managers can identify trends, patterns, and lessons learned that can be applied to the current project. This can help reduce the likelihood of cost overruns and improve project success. Historical information should be carefully reviewed and compared to the unique requirements of the current project to ensure that the cost estimates derived from past experiences are applicable and reliable for the present situation.
Guide on Historical Information Review for PMP Cost Estimating
Historical Information Review is one of the key concepts in the Project Management Book of Knowledge (PMBOK) Guide Seventh Edition's Cost Estimating process.
What is Historical Information Review? Historical Information Review involves assessing past project data and information. It is a technique used for estimating costs in project management by leveraging learnings and insights from prior projects. This can include understanding prior cost performance, resources used, tasks performed, project methodologies implemented etc.
Why is it Important? Knowing the cost of similar projects helps project managers to plan the current project's budget with more accuracy. It provides a reliable base for cost estimation and allows project managers to avoid the pitfalls from the past or repeat successful strategies. Moreover, it can save time and reduce the level of uncertainty in the estimation process.
How Does it Work? To perform a Historical Information Review, project managers generally refer to documents like previous project files, project management plan components, or organisational process assets to extract relevant data for estimating the current project's costs.
Exam Tips: Answering Questions on Historical Information Review 1. Understand the significance of historical data in cost estimating. Always think from the perspective of learning and insight extraction from past projects. 2. Don't get confused between Historical Information Review and Analogous Estimating. Both use historical data, but the first involves a detailed review while the latter is a cost estimating technique that draws a parallel with past projects. 3. Be aware that historical data could be subject to inflation, changes in technology, or changes in stakeholder requirements. Always consider these factors while interpreting historical data. 4. The accuracy of Historical Information Reviews largely depends on the accuracy, reliability and relevance of the historical data. Remember this while answering related questions.
PMP - Historical Information Review Example Questions
Test your knowledge of Historical Information Review
Question 1
A project manager joins a new company and is tasked with leading a project for a new product launch. What is the best way to familiarize themselves with the company's specific project management methods?
Question 2
A project manager wants to reduce repetitive errors in a construction project. Historical information has been recently reviewed. What is the best action to take?
Question 3
A project manager is overseeing a software development project. During the planning phase, he realizes that some similar projects have been done in the past. What is the best step for him to take?
🎓 Unlock Premium Access
Project Management Professional + ALL Certifications
🎓 Access to ALL Certifications: Study for any certification on our platform with one subscription
Earn 35 PDUs needed for your PMP certification
10338 Superior-grade Project Management Professional practice questions
Unlimited practice tests across all certifications
Detailed explanations for every question
PMP: 5 full exams plus all other certification exams
100% Satisfaction Guaranteed: Full refund if unsatisfied
Risk-Free: 7-day free trial with all premium features!