small program project management. This was a new organization designed to perform low$-$cost projects. The problem was that these projects could not withstand the expenses needed for formal divisional cost estimates. For five projects, Paul's estimates were "right on the money:" But the sixth project incurred a cost overrun of $$20,000$ in the Manufacturing Division. In November $1977,$ a meeting was called to resolve the question of "Why did the overrun occur?" The attendees included the general manager, all division managers and directors, the project manager, and Paul. Paul now began to worry about what he should say in his defence.

Projoct Management Case studies $2$nd Edition pg$.25$

H$,$ Herzner $($PhD$)$

QUESTION $1$

MARKS$]$

$1\mathrm{.}1$ Paul's main task is cost estimation. Explain the steps of cost estimation.

$(2)$

$1\mathrm{.}2$ Paul's sixth project incurred a cost overrun of $$20,000$ in the Manufacturing Division. A meeting has been called and you are to advise what the popular mistakes in forecasting are that can cause cost overrun.

$1\mathrm{.}3$ It would be important for Paul to evaluate what went wrong on the project that overran. Provide the primary reasons for Paul to conduct the evaluation.

$(6)$

$1\mathrm{.}4$ Paul would need to produce an evaluation report. Identify the details that should be included in the evaluation report.

$1\mathrm{.}5$ Outline the examples of quality standards.

$1\mathrm{.}6$ Define the design phase and evaluate the role of a design phase.