Description
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| Parametric Estimating |
A technique that is used to calculate the cost, budget, effort, and time (duration) based on project parameters.
Example – Let us say, you are a project manager for a project that is working on a statewide electric transmission setup. Your project requires running electric cables of 200 KM. You have a team of 180 people who are engaged in the cable layout. Based on reference data you know it costs 5000 USD to run a cable of 50 Meters and it takes 5 Days for 3 people (1 week). Based on this data you can calculate the effort, time, and cost.
Cost of laying 50 M cable = 5000 USD
Cost of laying 200 Km cable = 5000*200*1000 / 50 = 20,000,000 USD
Time taken to lay 50 Meter cable by 3 People = 5 days
Time taken to lay 200 KM cable by 3 People = 5*200*1000 / 50 days
Time taken to lay 200 KM cable by 180 People = 5*200*1000*3 / (50*180) days = 333 days
Elapsed Time taken (5 days / week) = 333*7/5 = 466 Days = 67 Weeks / 16 Months
Effort = Time * people = 466 * 180 = 83880 PD
Based on the above parameters we can calculate that, it will cost 20 Million USD, and have an elapsed time of 67 weeks (16 Months), with an effort of 83880 Person Days to complete the entire project.
Where it is Used
Process Group | Knowledge Area | Activity |
Planning | Project Cost Mgmt. | Estimate Costs |
Project Resource Mgmt. | Estimate Activity Resources | |
Project Schedule Mgmt. | Estimate Activity Durations |
