Estimating is an important part of project management because it helps you figure out how much time, effort, and money you will need to finish a job. In project management, planning can be done in a number of ways, such as:
Analogous Estimating: It is a way to figure out how long and how much a new project will cost by looking at past data from similar projects. Analogy is a quick and easy way to estimate, but it might not be very exact.
Parametric Estimating: This method uses scientific data and mathematical models to predict how long a project will take and how much it will cost. It is more accurate than similar guessing, but you need more information and more knowledge to do it.
Bottom-up Estimating: With this method, the job is broken up into small, doable tasks, and the time and cost of each task is estimated. The figures are then added together to make a total cost for the job. This method takes a lot of time, but it gives a correct and thorough quote.
Three-Point Estimating: This method uses a confident estimate, a negative estimate, and a most likely estimate for each job. Then, the average of these numbers is used to make a final estimate. This method is useful for jobs that aren’t clear.
Expert Judgment: With this method, you talk to experts in the field to figure out how long and how much a job will cost. It is a subjective way, but it can be helpful when there isn’t much data from the past to go on.
Reserve Analysis: With this method, you set aside money for “just in case” situations or risks that may come up during the project. This method is a good way to deal with risks and unknowns.
Overall, when choosing a forecasting method, project managers need to think about a number of things, such as the project’s difficulty, scale, available data, and the knowledge of the team. They should also check and change their figures on a regular basis to make sure they are still correct and useful throughout the project.
