Od:                                  prepcast-nl@aweber.com za uživatele The PM PrepCast [support@pmprepcast.com]

Odesláno:                       11. května 2008 6:42

Komu:                             Arnost Katolicky

Předmět:                        Arnost, learn how to Estimate

 

The PM PrepCastTM




Estimating types and ranges


Arnost,

There are various ways in which you can perform an estimate. Here are the most common types: 

  • Estimation by expert judgment
  • Analogous Estimating
  • Parametric Estimating
  • Top-down Estimating
  • Bottom-up Estimating

The PMBOK Guide and the PM PrepCast both explain the concepts and approaches behind these types. For the exam you not only need to know these types but you also have to know the estimation ranges.  And they are as follows: Order of Magnitude: -25% to +75%, a Budget Estimate is -10% to +25%, a Definite Estimate is -5% to +10% and a Final Estimate has a 0% range.

And just to emphasize: When giving a quote to a customer, you will never give a single number (i.e. $10) you will always give a range ($8 - $12).

Until next time,
Cornelius Fichtner, PMP
The Project Management PrepCastTM




Today's Question


Your project brings together team members from all over your company. Some are from accounting, some from operations and others again from sales and marketing. Although they report to you on questions regarding the project they will continue to perform their usual work for their "home" departments at 40% of the time. Never the less, it has been decided that for the time of the project all of these team members will move their desks to the third floor of the company's main building. What type of organizational structure do you have on your project. 

A.) Collocation
B.) Projectized
C.) Matrix
D.) Functional

Yesterday's Answer


Your customer has asked you for an order of magnitude estimate. You estimate that the project will be around $1000. What is your response to the customer?

A.) $1000
B.) $900 - $1250
C.) $760 - $1600
D.) $1000 - $2000

C.) is correct.  An order of magnitude estimate should be between -25% to +75% of the estimated cost. C is closest to this guideline.
 

Take Action


Understand the estimation types from the PMBOK Guide.

Memorize the estimation ranges from the PMBOK Guide.

Let the PM PrepCast explain them to you...

Add the estimation ranges to your brain dump sheet..

Learn all the Formulas and Important Values from the PMP Exam Formula Study Guide...


 


ScopeCreep Project Management Consultants, PO Box 863, 29300 Hazel Bell, Silverado, CA 92676-0863, USA




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