Estimation Techniques
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==References== | ==References== | ||
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| + | https://project-management.info/estimating-project-cost/#2-rough-order-of-magnitude-vs-definitive-estimate | ||
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| + | https://www.researchgate.net/figure/Illustration-of-the-Triangular-distribution-vs-a-PERT-distribution-Vose-2006_fig6_224061457 | ||
Revision as of 22:06, 19 February 2023
Contents |
Abstract
Estimations are a crucial part of project management, providing critical information to help project managers plan, execute, and control projects effectively. Project estimations help to identify the scope and requirements of a project, allocate resources, set realistic timelines, and develop budgets. They provide a roadmap for the project team to follow, helping to ensure that the project is completed on time, within budget, and to the required level of quality.
Accurate estimations are essential for effective project management, allowing project managers to identify potential risks and challenges early on and to develop strategies to mitigate them. They also enable stakeholders to make informed decisions about whether to proceed with a project, how to allocate resources, and how to manage any potential risks or challenges that may arise.
Effective estimation requires a combination of experience, skill, and data analysis. Project managers must be able to assess the requirements of a project, understand the capabilities of the team, and factor in potential risks and uncertainties. They must also be able to use historical data and industry benchmarks to make informed estimates and track progress against these estimates throughout the project lifecycle.
In short, estimations are a critical component of successful project management, providing the foundation for planning, executing, and controlling projects effectively. Accurate estimations help to ensure that projects are completed on time, within budget, and to the required level of quality, helping organizations to achieve their goals and objectives.
The Big Idea
The big idea behind top-down and bottom-up estimations is that they are two different approaches to estimating the size, scope, and cost of a project or initiative.
Top-down estimation involves starting with an overall estimate for the project and then breaking it down into smaller components. This approach is often used when there is limited information available about the project or when there is a need for a quick, high-level estimate. Top-down estimation can be useful for setting initial goals and identifying potential risks, but it may not provide a detailed understanding of the project's requirements and may not be accurate enough for budgeting and planning purposes.
Bottom-up estimation, on the other hand, involves breaking down the project into smaller, more manageable components and estimating the time, effort, and resources required for each of these components. This approach is often used when there is more detailed information available about the project and when a more accurate estimate is needed. Bottom-up estimation can be time-consuming, but it can provide a more accurate understanding of the project's requirements and can be useful for budgeting and planning purposes.
Both approaches have their advantages and disadvantages, and the choice of which to use will depend on the specific needs of the project and the available information. In some cases, a combination of top-down and bottom-up estimation may be used to provide a more comprehensive estimate.
