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Analogous Estimating.
You use this technique when limited project information is available. This technique does not provide a reliable estimation. The benefits of this technique are a quick result with less effort.
You estimate the cost of the project by comparing it with any similar project in the past. You will look into the organization’s historical records. Then you will use your expert judgment to find your project’s cost estimate. If your organization has completed many similar projects, you will select the one that most closely resembles yours. You will then draw a parallel between current and past projects and make adjustments to get the project cost.
**This is the fastest but least accurate technique. This technique is useful when you have fewer details.
Bottom-up estimating
This is the most accurate but the most time-consuming and costly technique. Here, you will calculate the cost of every single activity with the highest level of detail and roll them up to calculate the total project cost. Simply put, you will break the project work into its smallest work components. Then, you will estimate the cost of each component and aggregate it to get the project cost estimate.
**This is the most accurate technique and provides reliable results. You can use this technique when you have all the project details. This technique is costly and time-consuming.
Parametric Estimating.
Like analogous estimating, parametric estimation uses historical data to calculate cost; however, it uses statistical data. It takes variables from similar projects and applies them to the current one.
Similarly, you can calculate the cost of other parameters: human resources, materials, equipment, etc. Parametric estimation is more accurate than analogous estimation.
**This uses the statistical relationship between historical data and variables. This technique is more accurate than the analogous estimation.
It is important to note that the more accurate the method, the more costly and time-consuming it becomes. You will use the estimation technique best suited to your situation. It is not always advisable to use bottom-up estimating when you are short on time or resources.
//Explain the following terms:
Requirements Taxability matrix:
The Requirements Traceability Matrix (RTM) is a tool to help ensure that the project’s scope, requirements, and deliverables remain “as is” when compared to the baseline. Thus, it “traces” the deliverables by establishing a thread for each requirement- from the project’s initiation to the final implementation.
The RTM can be used during all phases of a project to:
Track all requirements and whether or not they are being met by the current process and design
Assist in the creation of the RFP, Project Plan Tasks, Deliverable Documents, and Test Scripts
Help ensure that all system requirements have been met during the Verification process.
The Matrix should be created at the very beginning of a project because it forms the basis of the project’s scope and incorporates the specific requirements and deliverables that will be produced.
Work Breakdown Structure (WBS): is a deliverable-oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. A WBS is the cornerstone of effective project planning, execution, controlling, monitoring, and reporting. All the work contained within the WBS is to be identified, estimated, scheduled, and budgeted.
There are four steps to construct a WBS:
–Identify major deliverables
-Decompose deliverables
-Continue until deliverables are the right size
-Review
//RISK CHART: Low impact/low probability – Risks in the bottom left corner are low level, and you can often ignore them. Low impact/high probability – Risks in the top left corner are of moderate importance – if these things happen, you can cope with them and move on. However, you should try to reduce the likelihood that they’ll occur. High impact/low probability – Risks in the bottom right corner are of high importance if they do occur, but they’re very unlikely to happen. For these, however, you should do what you can to reduce the impact they’ll have if they do occur, and you should have contingency plans in place just in case they do. High impact/high probability – Risks towards the top right corner are of critical importance. These are your top priorities, and are risks that you must pay close attention to.
//CALCULATE EARNED VALUE: (EV=PV x Percent complete)
(CV=EV-AC)(SV=EV-PV) If +0= 🙂 Under budget *Actual cost>Earned value/Ahead of schedule*Actual cost>Planned value -0= 🙁 Over budget *Actual cost<Earned Value/Behind schedule*Actual cost<Planned value
(CPI=EV/AC)(SPI=EV/PV) If +1 🙂 -1 🙁
Estimate at completition:BAC(budget at completition)/CPI
Estimated time to complete: original time estimate/SPI