• 64

Course Hero uses AI to attempt to automatically extract content from documents to surface to you and others so you can study better, e.g., in search results, to enrich docs, and more. This preview shows page 52 - 54 out of 64 pages.

common methods to help you estimate the cost of a project:The bottom-up estimationBottom-up estimating is a method of forecasting the cost of a project by breaking it down intoindividual activities and calculating how much each one will cost to finish. To estimate the costof a project using the bottom-up technique, gather information from previous projects, and getinput from the project team on how long they believe individual activities will take (Meier,2022).The 3-point estimationBased on relatively little knowledge, the three-point estimating approach is used inmanagement and information systems applications to generate an approximate probabilitydistribution describing the outcome of future occurrences (Puri,2022).This approach is based on the Program Analysis and Review Technique (PERT). Thisapproach takes into account the amount of time you'll spend on the project, as well as basicprices and schedules.The parameter estimationThe parameter estimation, like the bottom-up estimation, depends on previous project data toassist to make the current estimation more accurate. Begin by calculating how much time theproject team will spend on each activity. Then, collect and compare data from previous similarinitiatives done by the organization (Ward,2003).Analogous CalculationA project manager uses analogous estimating to determine the projected costs of a projectbased on the known expenses of a comparable project that was completed in the past. Thisestimating approach is based on a combination of historical data and the project manager'sprofessional opinion.In conclusion, I believe that project managers must consider team workloads, costexpectations, and any unexpected changes that have occurred in the past. Using prior projectdata to inform cost estimating methodsReference:
6/6/22, 10:41 PMTopic: Week 2 Discussion - PM Topic: Literature Review 153/64ReplyMeier, K. (2022). Understanding project cost estimation.A complete breakdown.Retrieve on6June 2022()Singh, H. (2017). Direct Costs vs Indirect Costs in Project Management.DEEP-FRIEDBRAIN.Retrieve on 6June 2022-management.html(-costs-project-management.html)Rad, P. F. (2001).Project estimating and cost management. Berrett-KoehlerPublishers. Retrieve on 6June 2022?id=dBhFDwAAQBAJ&lpg=PT2&ots=VQWCkRexEx&dq=estimating%20cost%20in%20project&lr&pg=PP1#v=onepage&q&f=false(?id=dBhFDwAAQBAJ&lpg=PT2&ots=VQWCkRexEx&dq=estimating%20cost%20in%20project&lr&pg=PP1#v=onepage&q&f=false)Puri. A (2022) 3-Point Estimating. Project Management Journal. Retrieve on 6June 2022.

Course Hero member to access this document

Course Hero member to access this document

End of preview. Want to read all 64 pages?

Course Hero member to access this document

Term
Winter
Professor
jessica
Tags
project manager