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5 Successful Project Estimation Techniques in 2022
To successfully complete the project by gathering all the resources, it is essential to understand the project estimation techniques and how they work. Read on to learn more about project estimation techniques you can use in 2022!
Project Management is a very important task in any company, and Project Managers have to do extensive work to make the project successful. They have to perform a lot of actions and work on different strategies for the successful completion of projects. Among different techniques and strategies, Project Estimation Techniques are very important for every Project Manager to do his role perfectly.
Understanding Project Estimation
Project Estimation Techniques simply mean estimating everything related to any particular project. This includes planning, managing resources, defining cost, setting scope, creating systematic processes, time management, and delivery.
It may even need hours of extensive research and the development of novel solutions. However, you can attempt to employ the common strategies we have outlined below and can see whether they are effective.
The main problem concerning project estimation is that there is so much uncertainty in some particular projects. Given the variety of variables involved, it might be challenging to predict the cost in the initial attempt.
In more simple words, Project Estimation means estimating all essential elements in a project development cycle accurately for successful, timely and effective project delivery, ensuring maximum profits. Here are some of the best and most successful Project Estimation Techniques in 2022.
Elements of Project Estimation
Though a project consists of different elements and processes, only some of them are used in Project Estimation. Below are some of the important elements in Project Estimation. To estimate the cost, time, and resources required to accomplish a project, available data must be analyzed. Project estimation often takes into account scope, timelines, finances, and hazards.
Cost − A project's budget is an important component. Before beginning a project, everyone would like to know what it is going to cost to build it. Based on the costs of previous projects, you can estimate. It's preferable to seek budgetary advice from an individual who has successfully established a project of a comparable nature if you do not have enough access to your statistical information.
Scope − Project scope is described by CIO as a thorough outline of every facet of a project, along with all associated tasks, etc. Key stakeholders, procedures, presumptions, and limits are also described in the scope of the project, along with the nature of the project and everything that is and is not included. A scope declaration contains all of this crucial information.
Time − A thorough schedule estimation that takes into account all project components will enable you to see how long it will take to complete certain components, the dependencies between deliveries, and the dates at which significant milestones will be reached.
Resources − Staff, suppliers, contractors, and equipment are all examples of resources.
Risk − Risks are present in any project. However, they can be recognized and solutions may be developed to deal with them.
How to Estimate a Project?
This is very important because before you use estimation, you must check some factors. Here are some important factors before you start project estimation.
Type of Project
Gather more and more data
Know the requirements
Budget & Resources
Internal Working Structure
This estimation technique is also called the comparative estimation technique. Now, as the name signifies, it works by comparing projects of similar types. So Project Managers correlate with other similar projects and then estimate the current project. With this technique, Project Managers try to estimate the cost, scope and time based on other similar projects. Sometimes Project Managers combine this technique with other popular estimation techniques like Expert Judgement, which helps them get desired results easily. But you have to deeply relate every element and aspect of the project to ensure high accuracy.
The top-Down Estimation technique is one of the most popular and commonly used estimation techniques. So basically, under this technique, Project Managers try to estimate ultimate goals, size and time. Under this technique, Project Managers estimate the overall size, time and goals of the project and then they break them into smaller phases. For big projects, this technique is really effective; however, it is also used for small projects. It will help Project Managers to fulfil small objectives leading to the successful and timely fulfilment of larger objectives.
Like the Top-Down estimate, the Bottom-Up Estimation technique is also very popular and common. There is nothing new in this technique because it is the reverse of the Top-Down Estimate. Under this technique, Project Managers estimate small objectives and processes and then combine small tasks to fulfill the main one. This technique is based on the Divide and Conquer approach. This technique is more effective and accurate as the project is delivered after achieving small objectives accurately and effectively. The technique is effective when you are uncertain about the project. Here also, you can use Expert Judgement and deep analysis for excellent results.
Three Point Estimation
As the name signifies, this technique is based on three points where Project Managers estimate different aspects or elements of the project in three steps. These three steps include Positive, Pessimist and Probable. In the first step, the lowest value or level is estimated; in Pessimists highest value or aspect is estimated; and in Probable valuation, accurate or exact valuation is estimated. For example, in the case of the time element, the Project Managers first estimate the minimum time to complete the project, then the maximum time and then the exact time to complete the project. The same concept applies to all other elements like cost, resources, scope, size, etc.
As this technique uses parameters or a parametric approach, it is considered more scientific. Here estimation is done based on different parameters and data driven from earlier executed projects making it highly effective and accurate. It is also sometimes called a mathematical technique because it requires a lot of data and perfect analysis. It is a quick technique, and if you know how to perfectly use the data and apply parameters, it will give you highly accurate and effective results. You can use this technique for projects of any size and budget.
If you are new to Project Estimation, this guide is very helpful for you. Here five most popular and successful project estimation techniques are discussed, along with some other important information required for successful project completion. These techniques are used globally, and after going through this blog, it will be easier for you to choose the right technique for your project. If your project is huge, this blog will help you choose the right technique for the right element or aspect of your project, giving you ultimate accuracy and efficiency.
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