Apportionment Method

last edited by: Pang DX on Dec 6, 2018 6:47 AM	login/register to edit this page

Apportionment method is also known as analogous estimating, uses historical data of past projects that are relatively standard to allocate duration and costs to various segments of the current project. This is performed by assigning percentages of the total planned duration or costs to each segment. It is commonly used in projects that are relatively standard with minimal variation. The percentages are assigned with close reference to past projects' resources and costs allocation. With good data integrity, estimates can be derived quickly with optimal accuracy. Example: Assuming the total project costs of a standardized product is estimated using a top-down approach to be $500,000, the costs of each top project deliverable are apportioned as a percentage of the total project cost as follows: Total Project Costs: $500,000 Design Cost: 25% = $125,000 Engineering Cost: 25% = $125,000 Test Cost: 20% = $100,000 Documentation Cost: 10% = $50,000 Produce Goods Cost: 20% = $100,000

last edited by: Pang DX on Dec 6, 2018 6:47 AM	login/register to edit this page

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