Parametric estimating is a quantitatively based estimating method that multiplies the quantity of work by the rate. The best way to describe it is with an example. Suppose you are working on a companywide network upgrade project. This requires you to run new cable to the switches on every floor in the building. You can use parametric estimates to determine activity duration estimates by taking a known element—in this case, the amount of cable needed— and multiplying it by the amount of time it takes to install a unit of cable to come up with an estimate. In other words, suppose you have 10,000 meters of new cable to run. You know from past experience it takes 1 hour to install 100 meters. Using this measurement, you can determine an estimate for this activity of 100 hours to run the new cable. Therefore, the cable activity duration estimate is 100 hours.
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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.