Saturday, February 9, 2008

Analogous Cost Estimation in PMP

Analogous Cost Estimation is:
  • a method in which top managers use their experience, historical information from similar projects and expert judgement to determine a total project cost or time estimation.
  • often called "top-down" estimation since estimations are generated for top levels of the WBS and then apportioned downward through the levels of WBS.

Analogous Cost is used when:

  • you hae a limited amount of detailed information about the project.
  • you have a similar project to use for comparison.
  • the work package owners preparing the estimations have the requisite expertise.

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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)