Cost and Time Estimation
Is a trade-off, balancing the benefits of better accuracy against the costs of secured increased accuracy.
Types of Estimates
Top-down (macro) estimates
- Analogy
- Group consensus
- Mathematical relationships
Bottom-up (micro) estimates
- based on estimates of elements found in the work breakdown structure
Why Estimating Time and Cost Is Important
- To support good decisions.
- To schedule work.
- To determine how long the project should take and its cost.
- To determine whether the project is worth doing.
- To develop cash flow needs.
- To determine how well the project is progressing.