Parametric Estimating
Parametric estimating is a way to figure out how much a project or task will cost, how much work it will take, or how long it will take by looking at statistical relationships between inputs and outputs. This method uses data from similar projects or tasks in the past to create a formula or model that can be used to predict how much a new project or task will cost, how much work it will take, or how long it will take.
In parametric estimating, the key factors that affect the cost, effort, or length of a project or task are identified, and then a mathematical formula or model is made to link these factors to the desired result. For example, if you wanted to figure out how much a construction project would cost, you could use parametric estimating to make a model that shows how the size of the building, the complexity of the design, and the cost of materials affect the total cost of the project.
Parametric estimating can be used in software development, manufacturing, construction, and project management, among other places. It is especially helpful when there is a lot of data from the past and a good understanding of the factors that affect the outcome.
Based on objective data and statistical analysis, parametric estimating can give a quick and accurate estimate of how much a project or task will cost, how much work it will take, or how long it will take. But it’s important to keep in mind that parametric estimating is only as accurate as the data and assumptions that went into making the model, and it may not be right for all projects or tasks.
Usage
It is used in schedule management