Forecast in Project Management – Definition and Meaning
In project management, a forecast is a data-driven projection of a project’s future progress and expected outcomes, particularly regarding schedule, cost, and scope. It is used to identify potential deviations from the plan at an early stage and to anticipate the project’s trajectory. Forecasts are typically based on the analysis of current performance data and trends and provide updated estimates (Estimate at Completion – EAC) for key project parameters.
Example, Best Practice, and Further Information
In a construction project, for instance, a current forecast might indicate that the project is expected to be completed two weeks later than originally planned. A proven best practice is to prepare and update forecasts regularly throughout the project. This corresponds to forecasting techniques described in the PMBOK Guide and agile forecasting practices, enabling project managers to take proactive corrective actions and manage risks more effectively.