Ways to estimate projects

1. Estimation

4. Project Management - it’s not about IT or outsource, it’s about projects.

5. Which techniques of estimation we can use?
1. One-Point Estimating
2. Expert Judgment
3. Parametric Estimating
4. Analogous Estimating
5. Three-point Estimates
6. Bottom-Up Estimating

6. Expert Judgment
Expert Judgment is a technique in which judgment is provided based upon a
specific set of criteria and/or expertise that has been acquired in a specific
knowledge area, application area, or product area, a particular discipline, an
industry, etc. Such expertise may be provided by any group or person with
specialized education, knowledge, skill, experience, or training.[1].
Tools:
1. Delphi technique
2. Interviews
3. Brainstorming
4. Historical data.

7. Parametric
Used for estimates that are quantitatively based, such as dollars per square foot
or number of installations per day. A relatively simple method, but not every
activity or cost can be estimated quantitatively.

8. Analogous
Generally used at the start of the project when not much is known. Compares the
current project with past similar projects. A quick and relatively easy method of
estimating, although not terribly accurate.

9. Three-point or PERT
Accounts for uncertainty associated with estimating by determining an optimistic
(best case, represented by O), most likely (represented by M), and pessimistic
(worst case, represented by P) scenario. The most likely estimate is weighted
most heavily.
Triangular distribution: (O+P+M)/3
Beta distribution: (O+4M+P)/6

10. Bottom-up
Used when there is significant detail about the activity. A detailed assessment of
the resources, capabilities, and amounts are used to determine an accurate
duration or cost estimate. This is the most accurate method but also the most
time-consuming and expensive form of estimating.