First of all, you need to knows about ROM importance in project life-cycle. What is rough order of magnitude estimate and why this is essential? This is very important part of project management & PMBOK standards also.
If you read PMBOK 7th edition, then you already aware about this term and its importance in project planning.
- Use strategical implementation of project (Preliminary Stage)
- Also, during in developing project scope
- According to PMBOK ROM estimate is -25%/+75%.
- Use construction, IT and other GOV and private projects
- Rough order of magnitude template
According to PMBOK 7th edition the estimation of project during initial stage is 75% and 175% or according to your actual figure.
According to Project workload (Daily 24 HOUR), Schedule, NO of resources (6 to 10 Employees) and initial costing plan ($1M) you can estimate ROM value accurate to 67%.
Importance OF ROM in Project Lifecycle?
This necessary information about project scheduling (Time & cost) is required during initial stage of project, so during project initiation phase, you use rough order magnitude templates for
According to WIKI, the actual purpose of ROM is to explain project investors (stakeholder) about BDGET costing and profit margin ratio.
Calculate ROM
How to calculate ROM for any project? Below using this formula, you can easily determine the estimates costing of project.
Upper Boundary = ROM_Estimate x (1 + 75%) = ROM_Estimate x 1.75
Check out Project Charter Document Templates in Excel and Word as a Related Template.
Categorized of Rough Order of Magnitude in Different Projects
IN order to looking specific ROM for particular project, you need special type of PM tools and template.
Rom for Construction Project
Like other general project, ROM for construction require simple project document template for construction project, which easily calculate Project costing and duration.
Related Content: Project Deployment Plan Template
Definitive Estimate VS Rough Order of Magnitude
According to above estimate value using ROM method, you can expect accurate value then definitive estimation method use.
There is other different method of getting estimate costing of any project, ProjeTImes has many costing & budget templates according to PMBOK guideline. So, if you don’t have much time of such ROM calculation, then simply try these PM Product and start your project without any delay.
Makes sure you can only use ROM data in INITIAL stage of project life-cycle, rather then project execution or tracking stage. And for initial communication with project related investors and another key person. As project grow, this data kept no worth or less then10%.
Rough Order of Magnitude Template PMP
Standard PMP template of ROM is available, as you can seen promotion link of TEMPLATE124, which guide you through PM standard template of complete project life-cycle. You can also download project portfolio and PPT slides according to PM standards & methodology.
Some of basic templates are free, but if you want some professional design template, you have to purchase Premium Template through Ucube.biz & ProjecTimes.Net.
