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What can affect the the reliability of a budget developed using historical data?

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What are the factors that may affect the reliability/accuracy of a budget developing using historical data gathered from other projects? Please list them all.
asked 5 years ago by anonymous edited 5 years ago by MaplePM

1 Answer

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The technique used to develop a budget based on historical data is called the analogous estimating technique. The factors that may affect the reliability of such a technique are the following:

- The current project is being compared to non-similar projects.
- The team members working on the previous project are not the same (for example, you had a very high performing team working on the previous projects - which is not the case anymore)
- The project manager is not the same one.
- The organizational structure in the company has changed. (for example, resources are no longer dedicated to a single project anymore)
- The size/culture of the company has changed.
- The technology used for the current project is different (although the objectives and the goal are similar to previous projects)
- The vendors have changed.

All in all, the main reason that affects the reliability of a budget developed using historical data is change!
answered 5 years ago by MaplePM (46,940 points)

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