Question

Develop the link between estimation, budget, variance, project and schedule.

Answer 1

The schedule determines when work elements (activities) are to be completed, milestones achieved, and when the project should be completed. The budget determines how much each work element should cost, the cost of each level of the work breakdown schedule (WBS), and how much the total project should cost.

Answer 2

The link between between estimation, budget, variance, project and schedule can be made on the basis of business plan.

• Entire financial efficiency and potential to cover project deadlines as pe the plan determines the project success.
• Firm needs to be aware if the project is on schedule and within stipulated budget. Next, the variance is the difference between expected and real development which must be considered.
• If the project receives lesser variance value than predicted, then it is behind the schedule and changes shall be made to arrive at proper schedule.