Estimating Projects

Estimating Projects 

•Estimating

–The process of forecasting or approximating the time and cost of completing project deliverables.

–The task of balancing expectations of stakeholders and need for control while the project is implemented.

•Types of Estimates

–Top-down (macro) estimates: analogy, group consensus, or mathematical relationships

–Bottom-up (micro) estimates: estimates of elements
of the work breakdown structure

Importance of Estimating Time and Cost-

•To support good decisions.

•To schedule work.

•To determine how long the project should take and its cost.

•To determine whether the project is worth doing.

•To develop cash flow needs.

•To determine how well the project is progressing.

•To develop time-phased budgets and establish the project baseline.