Duration: 3 Days
Course Overview
Project managers and business analysts need to be able to accurately forecast costs at both the individual and project level. Effective and accurate estimation techniques allow you to predict both future benefits, and the value of the project to the business.
Cost estimation is the process of approximating the total cost of a product or project, using available information. Unfortunately, in today’s business environment we are often estimating for products or projects where we have only partial information about cost.
You will leave the workshop having created a cost estimate that clearly communicates the information that your audience needs, and with the knowledge that you can create a cost estimate to deliver business- critical information in a more productive and effective manner.
How can I attend my course?
Course Content
What is Estimation?
• Business Analysis Body of Knowledge (IIBA)/Project Management Body of Knowledge (PMBOK)
• Other Definitions
• The common element
• Why do we estimate?
• Example: Time estimates
Cost Estimation Overview
• Key terms and concepts
• Cost estimation challenges
• Iterative cost estimation
• Estimating with formal and change-driven life cycles
• Clarifying the estimation request and scope of work
What Are The Problems Faced?
• Issues facing the estimator
• How might this lead to failure?
• An approach to take
• Benefits for sellers
Estimation Techniques
• Units of measure
• Estimation techniques for developing cost estimate
• Four Common Estimation Techniques:
– Planning estimate or “ball park” estimate
– Budget estimate
– Firm estimate
– Not-to-exceed/Not-less-than-estimate
Estimation Techniques (cont.)
• Pros and cons of each technique
• Using the different estimation techniques to create cost estimates
What Estimation Options Can We Consider?
• Analogous
• Parametric
• Bottom-Up
• Rolling Wave
• Three Point
• Historic
• Expert
• Delphi
• Wideband Delphi Estimation Technique
Interfacing with the Business
• As a business analyst
• As a project manager
• Issues with the building plan
• What if our estimates is seen to be incorrect?
Creating a Final Estimate
• End-to-end cost estimation process
• Accounting for Individual characteristics of resources
• Documenting an estimate to ensure clear understanding of the cost estimate, assumptions, accuracy, confidence, etc.