Unit Technique

This technique is utilized chiefly by construction-type projects, rather than design projects you find in a typical IT environment. However, there' s a possibility that you might use it as an alternative method of viewing your cost model. The unit technique requires that you provide some factor that gauges the per-unit cost of your estimates. The power plant construction industry might estimate the cost of building a new plant at so many dollars per kilowatt of capacity the plant will generate. Another unit model might describe costs in terms of the amount of revenue generated per customer served. Perhaps you' l l see a cost estimate that gauges the cost of maintenance per hour of operation.

You might have some success utilizing the unit technique in IT projects where you estimate new e-commerce applications on the basis of items ordered per customer visiting the site.

The unit technique is a metamorphosis of parametric cost estimating (discussed later).

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