Friday, October 12, 2007

Common Project Estimation Techniques

In PMP, the common project estimation techniques include:

Analogous Estimation (Top-down)

  • Pros
    Can ensure no work is inadvertently omitted from work estimate
  • Cons
    Can sometimes be difficult for lower-level managers to apportion cost estimates.

Bottom-up Estimation

  • Pros
    Is very accurate and gives lower-level managers more responsibility.
  • Cons
    May be very time consuming and can only be used after the work breakdown structure (WBS) has been well defined.

Parametric Estimation

  • Pros
    Using parametric model is not time consuming.
  • Cons
    May be inaccurate depending on the integrity of the historical information used.

1 comment:

Andrew Rayy said...

I enjoyed reading your blog ~ thanks for posting such useful content on Project estimation.Nice article . Very nicely done!

Recommended Books on PMP

Suggested Study Materials

  • PMP-Preparation Recommended Books
  • PMP Exam Prep, Fifth Edition: Rita's Course in a Book for Passing the PMP Exam
  • A Guide to the Project Management Body of Knowledge, Third Edition (PMBOK Guides)
  • The PMP Exam: How to Pass On Your First Try (Test Prep series)