Activity Resource Estimation

5 minutes 5 Questions

Activity Resource Estimation is the process of determining the quantities and types of resources, such as human resources, equipment, and materials, required to complete each project activity. This process provides input to project planning, budgeting, and scheduling by helping project managers all…

Guide: Activity Resource Estimation in PMBOK Guide Seventh Edition

The Activity Resource Estimation is a significant concept as per the PMBOK Guide Seventh Edition. This revolves around resource planning and management, specifically looking at time management. This technique holds a crucial spot in project management as it aims at accurately estimating the quantity and type of resources that a particular task needs to be accomplished.

It involves determining the standard of resources and their respective quantities necessary to carry out the project activities. Resources might include people, hardware, software, or other physical resources.

Exam Tips: Answering Questions on Activity Resource Estimation:
1. Always read the question carefully and understand what is being asked.
2. As most questions will be situational, try to visualize the situation and understand the resource requirements.
3. Use your knowledge on dependencies and assumptions to make the best possible decision.
4. Remember, the answer which results in the most efficient and effective utilization of resources is often the correct one.
5. Practice as many questions as possible on this topic to gain mastery.

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PMP - Activity Resource Estimation Example Questions

Test your knowledge of Activity Resource Estimation

Question 1

You are managing a project in an organization that operates under a Matrix structure. You are about to estimate the resources for an upcoming project. Which problem are you most likely to face?

Inability to determine activity resource's cost Conflict over resources Inability to use software tools Miscommunication between team members

Correct Answer: Conflict over resources

In a matrix organizational structure, resources are shared across projects, resulting in potential conflicts over resource allocation. The answer 'Conflict over resources' is therefore the most likely problem to face. Miscommunication can occur in any organizational structure and is not specifically linked to the matrix structure. The ability to use software tools is a skill that does not directly relate to the structural setup of an organization. Lastly, estimating a resource's cost is part of the process and not a problem likely faced due to a matrix organizational structure.

Question 2

As a project manager, your team has provided information on resource requirements for each sub-activity. You need to calculate the total resources for the entire activity. Which estimating technique suits this situation?

Analogous Estimating Bottom-up Estimating Parametric Estimating Expert Judgement

Correct Answer: Bottom-up Estimating

The most appropriate method in this situation is 'Bottom-up Estimating'. This estimation technique involves estimating individual work items or activities and summing them to get an overall estimate. This technique is especially useful in situations where you have detailed information for each sub-activity, as in this situation. The other options, 'Expert Judgement', 'Parametric Estimating', and 'Analogous Estimating', are not the best choices in this case. 'Expert Judgement', while potent, relies on subjectivity and expert insights that might not be optimal for such detailed analysis. 'Parametric Estimating' involves statistical relationships between variables, which is not mentioned in this case. 'Analogous Estimating' uses data from similar past activities, which might not reflect the current complex situation.

Question 3

Your project involves setting up a new data center which requires precise technical skills, various materials, and cutting-edge technology. The project's complexity is increased due to the need for specialized labor, including security experts, network engineers, and project managers with specific certifications. During the planning phase, you are tasked with estimating the resources for the design and implementation phases. You have historic data from a similar project, although the technology used was slightly different. Given the critical nature and the specialized requirements of this project, what would be the most effective approach to ensure an accurate Activity Resource Estimation?

Utilize expert judgment in combination with analogous and parametric estimating, adjusting for technological differences. Apply bottom-up estimating alone, considering each activity individually to ensure no detail is overlooked. Convene a meeting with all stakeholders to discuss and agree upon the resources required, ensuring a democratic decision-making process. Rely solely on the project management software's built-in estimation features, based on the historical data.

Correct Answer: Utilize expert judgment in combination with analogous and parametric estimating, adjusting for technological differences.

The most effective approach to ensure an accurate Activity Resource Estimation in this scenario would be to utilize expert judgment in combination with analogous and parametric estimating, adjusting for technological differences. Expert judgment is crucial due to the project's complexity and the need for specialized labor. Experts in security, network engineering, and project management can provide valuable insights and accurate estimates based on their experience and knowledge. Analogous estimating, using historical data from a similar project, can serve as a starting point. However, it's essential to adjust the estimates to account for the differences in technology between the previous project and the current one. Parametric estimating can help refine the estimates further by using statistical modeling and historical data to calculate the resources required for specific project parameters. Relying solely on bottom-up estimating, project management software, or stakeholder meetings would not be as effective in this case. Bottom-up estimating can be time-consuming and may miss the bigger picture. Project management software may not account for the unique aspects of this project. Stakeholder meetings alone may not provide the necessary expertise to create accurate estimates.

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