PMO Operational Excellence
The $600 Million Estimate
The Challenge to the Project:
This particular client wanted to increase market share in the Latin American region (more specifically in Brazil).
PE4U acted as the PMO extension of the estimating team. We worked with the client's estimating team to arrive at a +/- 10% estimate. We also assisted and created processes to ensure consistent estimate transfers. The estimate transfer is where the PM or designee does a final "scrub" of the estimate before it is the official project budget.
The project schedule was slated for 36 months. At this point in the project we had a level high level schedule (level 1 and level 2).
This was a major project for our client. The initial estimate showed about $600 million in cost expenditures.
Multiple risk impacts were identified. Currency fluctuation, governmental interference, qualified labor shortage, multiple logistic challenges.
A significant portion of the estimate involved a risk budget.
Our client provided a more competitive estimate to their client (Petrobras) than their competitors. Our client was awarded the project verbally by their client.
This is another example of our many successes.
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