Peter RapinSubject Matter Expect; Project Delivery| Independent ConsultantOntario, Canada
Okay, you win. ROM usually means 'Rough' Order of Magnitude, not Random. However, it seems that the ROM typically reflects what someone wants or needs it to cost to get approval or to stay within authority levels etc. My use of Random may have been a bit facetious.
Whatever interpretation you want to apply, ROM is mostly a bullshit cost estimate to which one cannot/should not apply the concept of accuracy nor precision. Saving Changes...
Rough order of magnitude estimate is calculated in the first phase of the project, and its precision may be between -25% to +75%. It's a rough estimation that is provided to stakeholders to give an idea of the project cost's magnitude.
This estimation shouldn't be so accurate as a definitive estimate (ranges from -5% to +10%), that is performed at the next phase, when the project has been planned in detail. Saving Changes...
Vijay SuryavanshiProject Manager - Engineering| RECARO Aircraft SeatingPlantation, Fl, United States
As Mark says, ROM is Rough order of Magnitude. This given to customer when you have limited information and they ask you for the cost. As you gather requirement with all details , you must be able to calculate costs that is more accurate and falls within the range of ROM. Also, please note that good estimates given by Project managers generally fall within the range of -10% to 25%. (If it exceeds this range, be prepared with explanation to your client or customer.) Hope this helps. Saving Changes...
Latha Thamma reddiSr Product and Portfolio Management (Automation Innovation)| DXC TechnologyMckinney, Tx, United States
