A topdown estimate

Stage 1

Time I 8 weeks

Cost $20,000 Quality

Feasibility study report

Stage 2 8 weeks

Stage 3 10 weeks

$25,000

$45,000

Needs analysis report

Design report

Stage 4 15 weeks

$65,000

Developed solution

Stage 5 15 weeks

Tested, implemented solution its members confidence that the first stage has at least been estimated to a lower level of detail (see Figure 7.2).

In Figure 7.2, the feasibility study report (the first product in this project) has been decomposed by a product breakdown structure into a set of smaller products so that a better estimate can be made of the time and cost they will consume in their development. When added together, these estimates should match the top-down estimates. If they do not, the project manager should provide the project steering group with refined top-down estimates and a formal request to amend the proposed budgets and timescales. This is bottom-up estimating, a technique supported by the product-based approach to identifying deliverables.

As each stage is completed, the process is repeated. As more becomes known about the project, the amount of contingency requested at each stage should be reduced and confidence in the overall estimate for the end of the project should increase.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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