Scribd
Upload
44 views

Cost and Time Estimation 19IN

The document discusses different approaches to project cost and time estimation including macro, micro, and hybrid approaches. It explains that macro approaches provide quick but rough estimates while micro or bottom-up approaches are more time consuming but can provide accurate estimates. Accurate estimation is important for project planning, scheduling, and control.

Uploaded by

timesave240
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
44 views

Cost and Time Estimation 19IN

The document discusses different approaches to project cost and time estimation including macro, micro, and hybrid approaches. It explains that macro approaches provide quick but rough estimates while micro or bottom-up approaches are more time consuming but can provide accurate estimates. Accurate estimation is important for project planning, scheduling, and control.

Uploaded by

timesave240
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 7

Fair Use Notice

The material used in this presentation i.e., pictures/graphs/text, etc. is solely


intended for educational/teaching purpose, offered free of cost to the students for
use under special circumstances of Online Education due to COVID-19 Lockdown
situation and may include copyrighted material - the use of which may not have
been specifically authorized by Copyright Owners. It\s application constitutes Fair
Use of any such copyrighted material as provided in globally accepted law of many
countries. The contents of presentations are intended only for the attendees of the
class being conducted by the presenter.

10/11/2022
Cost and Time Estimation
Project Estimate
Times
Costs
Project estimation is indeed a yardstick for project cost control.
And if the yardstick is faulty, you start on the “wrong foot.” . . .
we exhort you not to underestimate the estimate.
(O. P. Kharbanda and J. K. Pinto, 1996).

Estimating is the process of forecasting or approximating the time and cost of


completing project deliverables.
Cost and Time Estimation
Cost The Macro or Top-down estimates are usually done by
Estimating senior management.
Approaches

The Macro or Top-Down approach can


provide a quick but rough estimate.
Macro Micro Hybrid

• Done when the time and expense of a


• Macro (Top-down) Approaches detailed estimate are an issue.
• Consensus methods • Usually occurs during conception stage
when a full design and WBS are not
• Expert judgment
available.
• Apportion method
• Requires experienced personnel to do the
• Learning curves estimate.
• Can be highly inaccurate
Cost and Time Estimation

Cost
Estimating
Approaches

Macro for the projectMicro


This approach begins with a top-down estimate Hybrid
and then refines estimates
for phases of the project as it is implemented.

Hybrid approach begins with a top-down estimate for the project and then refines estimates for
phases of the project as it is implemented.
Cost and Time Estimation
Cost Micro or Bottom-up estimates are typically performed by the
Estimating
Approaches people who are doing the work.
Bottom- up approach
Macro Micro Hybrid
• Most time consuming and most expensive
• Uses WBS where each task is estimated and
• Micro (Bottom-Up) Approaches then added together as reverse upward “Roll –
up of Elements”.
– Template
Bottom-up estimates methods
are typically performed by
the people who are doing the work. • Can provide an accurate estimate but is time
– Parametric Procedures consuming.
– Detailed Methods for WBS (Work • May require multiple personnel and time to
Packages) complete.
• If done properly, a bottom-up estimate can
yield accurate cost and time estimates.
Cost and Time Estimation
Why Estimating Time and Cost Are Important

❖Estimates are needed to support good decisions.


❖Estimates are needed to schedule work.
❖Estimates are needed to determine how long the project should take and its
cost.
Bottom-up estimates are typically performed by
❖Estimates are needed to determine whether the project is worth doing.
the people who are doing the work.

❖Estimates are needed to develop cash flow needs.


❖Estimates are needed to determine how well the project is progressing.
❖Estimates are needed to develop time-phased budgets and establish the
project baseline.
Cost and Time Estimation
FACTORS WHICH INFLUENCE ESTIMATION

❖Planning Horizon.
❖Project Duration.
❖People
❖Project
Bottom-up structure
estimates and
are typically organization
performed by
the people who are doing the work.
❖Padding Estimates
❖ organizational culture

You might also like