There are various ways to take information you have, the opinions of your team, and other business information to increase your estimating accuracy. In this video, look at various approaches to building your estimates—and their pros and cons.
- A great way to increase your notoriety…as a project manager is to ignore…sound estimation techniques…and get your project estimates all wrong.…I guarantee that you'll get many visitors…to your desk and even more emails and phone calls.…Unfortunately, they won't be happy visitors.…So you don't lose sleep considering this scary fate,…let me share a few trusty approaches…for building your project estimates.…
First is expert judgment.…This is when you ask an expert what they think.…Someone who's been there and done that on similar projects.…Their insights can help you estimate appropriately.…The second technique is known as analogous estimating.…Simply, it uses analogies.…Completed projects that are similar…to what you're about to do.…These similar projects can help lead you along…the right estimation path.…The third is parametric estimating.…
This uses industry specific mathematical formulas…to come up with estimates.…For example, if you're planning to build a warehouse,…there are building and engineer formulas for how much…
Note: This course follows the latest guidance from Project Management Institute, Inc., as outlined the PMBOK® 6 Guide.
- Recall best practices for project budgeting and estimation.
- Distinguish common estimation approaches used to build project budgets, and understand when to use them.
- Identify best practices for budget expectation management, while utilizing sound budget refinement techniques.
- Describe and explore agile project budgeting techniques.
- Review various approaches for correcting project budget overruns.
- Review sound budget reporting approaches, including how they can be used to report project status.
- Recognize the issues and changes that can put a project budget in jeopardy.