Detailed Estimates

Detailed estimates are sometimes referred to as bottom-up estimates, because they are based on all the various steps involved in project planning. A detailed estimate includes all the schedule and resource information (as discussed in Chapter 7) and a forecast of a project budget and cash flow (described later in this chapter). This is the estimate that will be used to manage the project and evaluate its success.

There is a huge difference in accuracy between an order-of-magnitude estimate and a detailed estimate, because the latter assumes a detailed understanding of the product and is based on the availability of key resources. Enormous amounts of work specifying product requirements and design work take place between the order-of-magnitude estimate, when there are no specifications, and the detailed estimate, which is based on specifications. This work required large expenditures of time and money, but this money was not spent until the inexpensive ballpark and the order-of-magnitude estimates had determined that the project was feasible.

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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