Bottom-up estimation
Posted: Sun Dec 15, 2024 9:08 am
Bottom-up cost estimating is the opposite of estimating by analogy. Instead of starting from a possible total cost of the project, the costs of each task are estimated individually and then added together.
Bottom-up estimating is more accurate because it starts with very small tasks that can be easily defined--for example, tasks that take less than an hour or can be completed within a single work shift.
The great advantage of bottom-up estimating is that it is possible to have a realistic view of the costs of a project by breaking down each element of which it is composed. However, it is a more exhaustive and more expensive cost estimation method, since it involves going into detail to be able to encompass an entire project.
Additionally, projects that consist of many repetitive tasks may incur a higher budget than necessary, as a poor estimate of each task accumulates and multiplies.
Parametric estimation
Par metric estimation is similar to estimation qatar number for whatsapp by analogy in that it also uses data from past projects, with some notable differences.
The biggest difference is the use of very precise variables and data points to estimate possible differences between other projects and the current estimate-- for example, taking into account possible supplier changes or price differences from one year to the next. Or even taking into account the difference in the productive capacity of employees, if any.
Parametric estimating involves knowing in detail how a project works and why inefficiencies occur during the development of a project. Small details such as changes in the price of materials can make a big difference in the cost of a project, and taking them into account can produce a more accurate estimate.
How to perform a project cost estimate
As we have mentioned before, to make a good cost estimate in a project, it is necessary to have different types of attitudes:
Know the industry you work in thoroughly
Prevent unforeseen events common in projects of the same nature
Know the company you work for and its strengths and weaknesses
In addition to this, the most accurate cost estimates often share qualities such as:
Full coverage
The most important thing in a cost estimate is to cover the most complete possible factors that represent a cost for the project. As we have seen before, there are many different forms of costs, each with its own set of characteristics.
Bottom-up estimating is more accurate because it starts with very small tasks that can be easily defined--for example, tasks that take less than an hour or can be completed within a single work shift.
The great advantage of bottom-up estimating is that it is possible to have a realistic view of the costs of a project by breaking down each element of which it is composed. However, it is a more exhaustive and more expensive cost estimation method, since it involves going into detail to be able to encompass an entire project.
Additionally, projects that consist of many repetitive tasks may incur a higher budget than necessary, as a poor estimate of each task accumulates and multiplies.
Parametric estimation
Par metric estimation is similar to estimation qatar number for whatsapp by analogy in that it also uses data from past projects, with some notable differences.
The biggest difference is the use of very precise variables and data points to estimate possible differences between other projects and the current estimate-- for example, taking into account possible supplier changes or price differences from one year to the next. Or even taking into account the difference in the productive capacity of employees, if any.
Parametric estimating involves knowing in detail how a project works and why inefficiencies occur during the development of a project. Small details such as changes in the price of materials can make a big difference in the cost of a project, and taking them into account can produce a more accurate estimate.
How to perform a project cost estimate
As we have mentioned before, to make a good cost estimate in a project, it is necessary to have different types of attitudes:
Know the industry you work in thoroughly
Prevent unforeseen events common in projects of the same nature
Know the company you work for and its strengths and weaknesses
In addition to this, the most accurate cost estimates often share qualities such as:
Full coverage
The most important thing in a cost estimate is to cover the most complete possible factors that represent a cost for the project. As we have seen before, there are many different forms of costs, each with its own set of characteristics.