Project Estimating Technique
Project management techniques are useful for any tasks where different outcomes are expected. These techniques help in minimizing the risks of failure, proper project assessing, organizing activities, and resources to obtain positive results (Pontrandolfo, 2000). There are numerous method applied to improve project estimation practice and precision, they comprise the following:
Expert Judgment
Expert judgment means using specialists who have a reputation for knowledge of a particular field and experience in estimating activity duration within it. The Project estimation necessitates for an expert judgment in both the project and business environment in which task is to be carried out. Expert judgment technique is used especially when conducting a complex project that requires expertise. The expert judgment could be involved to determine the general and progressive increase in prices over the project’s useful life or costs benefits analysis (Pontrandolfo, 2000).
Analogous Estimating
The Analogous technique represents a great method used during the early project estimation. This technique uses historical information available pertaining to the project to be undertaken. It is used when the historical data can be availed, on which assumptions of a similar project with comparable specifications can be based on. For instance, knowledge of past projects with similar complexity having taken a specific duration and having a specific number of labor hours can be used to estimate the tasks (Pontrandolfo, 2000).
Parametric Estimating
Parametric project estimation operates in a similar way like analogous estimating but has high accuracy resulting from application of statistics. Parameter estimating technique is in many cases founded on the rates that have been averaged, for instance, using the meterage in construction tasks management or the coded software lines for computer programming projects. Parametric Estimating technique relies on the effectiveness of the source of the information to be used and the facts of the project specifics. The method is used when the accuracy and age of historic data are not questionable and there is high understanding of the project specifics. Parametric technique is mostly used during the early project estimation periods (Pontrandolfo, 2000).
Bottom-Up Estimating
Bottom-up project estimation method breaks down projects into different components, and estimates are carried out for every project part. Every major section or work package is divided and crashed to enhanced heights of component. Every single cost of all work packages is computed and added up to compose the complete bottom-up project approximation. This technique takes the longest time to prepare, but when the sufficient component details are computed, it gives the estimates which are highly precise. This technique is used when there is adequate and reliable past data and funds since it is time-consuming. It is not an ideal technique to be applied during the initiation due to high estimation costs (Pontrandolfo, 2000).
Three-Point Estimates
This is the best technique of project estimation; the method increases greatly the project estimates and makes it easier for experts to add their contributions. This method is known as the PERT technique; it provides a variety of project estimates and uses weighted average as a tool to reach the estimates using best case, most likely, and the worst scenarios. This project estimation method works best due to the following reasons; making estimates using the worst case leads to less resistance since the management already knows both outcomes, and makes it easy to estimate the most likely case scenario. Additionally, the weighted average can be adjusted depending with the level of certainty. Pert chart is the tool that can be used to justify the estimates in the three-point techniques (Pontrandolfo, 2000).
References
Pontrandolfo, P. (2000). Project duration in stochastic networks by the PERT-path technique. International Journal of Project Management, 18(3), 215-222.