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Date Submitted: 04/22/2016 09:48 AM
Project Estimating Technique Paper
Jmb70
CPMGT/303
February 29
Instructor
Project Estimating Technique Paper
An estimate is going to tell you “about how much” something may cost. It is not an exact figure. Estimating on a project is a critical component, and truly plays a part in its success. The following information provides techniques used in estimating on a project, when it is most likely to be used most, and the advantages/disadvantages to each.
Techniques
Expert judgment: An easy to do technique when you have an expert available. The expert is the resource. Advantages to this technique are quickness and a high level of accuracy with the right expert. Disadvantages include not having an expert available, or that expert not being able to provide justification or rationale for the estimate.
Analogous estimating: One of the most commonly used forms of estimating project activities. It uses the experience from previous project and takes that information into the current project. It is appropriate for use in cases where the work is similar and the resources doing the work are the same between the two projects. Advantages are the quickness when the conditions are right, and accuracy. The disadvantage is how projects must be similar for the comparison to provide a benefit.
Parametric estimating: A formula is developed for estimating time or resources needed for the project activity. Advantages are that it is very quick and accurate. Disadvantages are that models needed for basing the formula off of do not exist until there is a large experience base.
Bottom-up estimating: This technique is one of the most accurate for the overall project. To use it means all work is broken down into small work packages. The smaller the easier to estimate cost. These estimates are then all added together to provide a full project estimate. The advantage is that the estimate is more exact and accurate. The disadvantage is that it is a time consuming...