Project estimation refers to the process of predicting the effort, time, resources, and costs required to complete a specific project. This helps with planning, budgeting, and setting expectations for stakeholders.
Common techniques:
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Expert Judgment: Project managers and experienced team members use their knowledge and expertise to estimate the project's requirements, tasks, and duration. Use historical data, industry benchmarks, and intuition.
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Analogous Estimating: Compare the current project with similar past projects and using their actual data as a basis for estimation. This is useful when there is limited information available for the current project.
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Parametric Estimating: Use mathematical algorithms to calculate project estimates based on specific variables, such as the number of team members, work hours, or lines of code. This works well for repetitive tasks or projects with a well-defined scope.
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Three-Point Estimating: Estimate the best-case scenario, worst-case scenario, and most likely scenario for each task or activity. Combine these using a formula (e.g., weighted average) to calculate a more accurate estimate.
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Bottom-Up Estimating: Break down the project into smaller tasks or work packages and estimating the effort and resources required for each individual component. Roll up the estimates to obtain an overall project estimate.
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Reserve Analysis: Include contingency reserves in project estimates to account for unforeseen risks or uncertainties. Provide a buffer to accommodate potential schedule delays, budget overruns, or scope changes.