Project Estimation Techniques
Project Estimation Techniques
There are mainly four project estimation techniques. Each and everyone have their own advantages and disadvantages and more so the suitability to the project that one is undertaking. Carefully choosing one that is most suitable for your project is very crucial since it will affect the final result and the outcome of everything that one is undertaking. The four are Analogous estimating, parametric estimating, three point estimating and bottom up estimating. The main determining factor that will enable you choose one of these is the nature of the project. Different projects will demand different techniques to complete and achieve the final goal. More of it can be found in the book by (Andersen, E. S., Grude, Haug, Katagiri, & Turner, 2004).
Analogous estimating is a technique which is used when not much information of the project is known. It is mainly achieved through comparing past similar projects to the one at hand. Deductions on how it can be handled are then made (Mendes, 2008). Taking old or past projects and comparing it with the project at hind is a highly inaccurate means of estimating and determining projects. Projects are not similar and thus require different interventions to handle them.
The second technique is parametric estimation. This is a quantitative means and takes into account the amount of work to be done or another similar metric that can be used. It can be some certain amount of dollars per square foot or some dollars per day depending on the agreement. This is a relatively simple technique that can be used but not everyday situations and projects will suite this. As early indicated, different projects techniques are used for different occasions. It is therefore very crucial to carefully first to determine its suitability before going for it. For this case, not everyday projects can be estimated based on the number of dollars or time spent. More are as asserted by (Moore, 1990).
The third is a three point estimating technique. This is a technique is a method where it takes into account for all the uncertainties. It is estimated by determining the optimistic or the best case scenario side of it, the most likely and the pessimistic or the worst case scenario side of it. The most likely estimate that takes more weight is taken into account (Mendes, 2008). This is used mainly where the project at hand has several aspects and points you can judge it from. It’s also in cases where there are a lot of risks are involved.
The last one, fourth, is the bottom up estimation method. This method is used when there is a significant detail known on the project at hand. A detailed amount of assessment of resources, capacity and accurate information used to determine duration and cost estimate. It is one of the most accurate estimation techniques available. It can be used in every project. It is simply applicable in most projects. The rest of it and other explanations can be found in the book by (Ratkovic, 1977).
Andersen, E. S., Grude, K. V., Haug, T., Katagiri, M., & Turner, J. R. (2004). Goal directed project management: effective techniques and strategies (3rd ed. / ed.). London: Kogan Page.
Mendes, E. (2008). Cost estimation techniques for web projects. Hershey: IGI Pub..
Moore, S. A. (1990). Structure-activity relationships and estimation techniques for biodegradation of xenobiotics project summary. Athen, GA: U.S. Environmental Protection Agency, Environmental Research Laboratory.
Ratkovic, J. A. (1977). Estimation techniques and other work on image correlation. Santa Monica: Rand.
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