An estimate is a probability assessment based on skill and experience of the time and resources required for the delivery of a specified product that has been considered at length during product-based planning. Knowing the product in greater detail makes estimating time and cost much easier. For example, how long is a piece of string (the product)? Once you know that the piece of string must be able to run twice around a package measuring im x im x im, leaving enough to form a double knot, the question can be answered.
Various techniques assist in estimating time and cost. They fall into two broad categories:
e Those that may be used without reference to any stored data or prior experience, for example:
- top down and bottom up;
- Delphi technique;
e Those that require estimation data from previous projects, for example:
- work distribution;
- standard project/product.
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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.