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How to use management reserve for estimating duration activities

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Tam Nguyen Annandale, Va, United States
How to use management reserve for estimating duration activities
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Kathy Castle Author at https://www.projectcubicle.com/| Freelance Tx, United States
Hi Tam,
Why dont you use PERT calculation to estimate the activity duration ? Maybe it can be helpful to integrare both concepts. What do you think ?
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Kiron Bondale Retired | Mentor| Retired Welland, Ontario, Canada
Tam -

Management reserve is there to protect projects from unknown-unknowns and usually would not be applied at an individual activity level.

Even contingency reserve is better estimated and allocated at a milestone, phase or other sequence of activities level to avoid incurring Student Syndrome/Parkinson's Law.

Also, while contingency reserve is applicable to both cost and time budgeting, I haven't run across the use of management reserve from a scheduling perspective. It's confusing enough to distinguish between our internal target date vs. the customer committed date to then add a third "management committed date" in between the two...

Kiron
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Kevin Drake Perth, Western Australia, Australia
As far as I know, you do not use management reserve in estimating activities duration.
Management reserve is not included in the performance measurement baseline (PMB).
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1 reply by HENDRY CHARLES.A
Feb 09, 2020 5:36 AM
HENDRY CHARLES.A
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Please explain ,why is it included in baseline
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Kevin Drake Perth, Western Australia, Australia
Project Budget = Cost Baseline + Management Reserve
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HENDRY CHARLES.A Additional Chief Engineer| BANGALORE METRO RAIL CORPORATION LTD Thillai Nagar,Managiri, Tamil Nadu, India
Apr 19, 2018 8:58 AM
Replying to Kevin Drake
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As far as I know, you do not use management reserve in estimating activities duration.
Management reserve is not included in the performance measurement baseline (PMB).
Please explain ,why is it included in baseline
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Sergio Luis Conte Helping to create solutions for everyone| Worldwide based Organizations Buenos Aires, Argentina
In my actual work place we decided to add a percentage to duration in the concept of risks, where risks are all type of risks. That´s the risk threashold the organization is willing to accept. This percentage is related to costs. In the case you are talking about, duration, we have a second threshold related to scope. Both are our traffic lights related to cost and schedule that we use to control the project.

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