A blog that looks at all aspects of project and program finances from budgets, estimating and accounting to getting a pay rise and managing contracts.
Written by Elizabeth Harrin from RebelsGuideToPM.com.
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Date
This article summarises four of the key terms that you'll come across when you start working with project estimates.
Bottom up estimating
This estimating term describes how you break down your project and estimate (as the name suggests) based on the smallest components.
Watch the video here: Bottom up estimating video
Parametric estimating
This term describes how you can use statistical and logical calculations to work out how long a project will take, based on what you know about the individual activities.
Watch the video here: Parametric estimating video
Analogous estimating
Analogous estimating relies on previous experience to calculate the estimate.
Watch the video here: Analogous estimating video
Three point estimating
Three point estimating is discussed in more detail in this article but the basic premise is that you use a formula to calculate your overall estimate. The formula is:
This calculation will leave you with a weighted estimate of the budget for the activity (although you could use it for scheduling time and work out your estimate in days). It will be weighted in favour of the most likely cost for that task, but it will also allow for the fact that things might go well – or not.
Posted on: September 24, 2015 11:59 PM |
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