Estimating Flashcards
What is the Estimating Funnel?
A concept in APM that describes how estimation gets more accurate as more is understood about the work.
Therefore, throughout the project lifecycle estimates should get more accurate.
This is one of the benefits of breaking projects into smaller chunks in lifecycles to allow learning from previous stages to update understanding.
Why should you Re-estimate throughout the lifecycle?
-Estimating Funnel
-Risk becomes better understood
-Team productivity is better understood
What are the benefits of Re-estimating throughout the lifecycle?
-Improved understanding of costs as project continues
-Reduced contingency
-Allows stakeholders to be kept up to date.
What is Parametric Estimation?
-Takes detailed data from previous projects.
-Using variables for those projects and the one’s being estimated it can come up with an estimate.
-Models data to perform accurate estimates.
Only possible if information is available.
What is Analogous Estimating?
-Compares the proposed project with a similar project.
-Uses historic data from similar project to determine estimated cost and time.
-Data compared by scaling of size, complexity and type of technology employed.
-Relatively quick.
Adjustment may be necessary as not all projects the same.
What is Analytical/Bottom-up estimating?
It uses the project Work Breakdown Structure (WBS) to a level of detail that allows estimates of cost and time.
Requires a full understanding of the project scope.
Extra factors need to be considered:
-Contingency for risk.
-Cost of assembly.
-Overheads.
What is Delphi Estimating?
-A method to try and remove bias from estimation.
-Experts asked to independently estimate.
-They then meet and try to agree a consensus.
Delphi for face to face meetings may be known as ETE Estimate, Talk, Estimate.
Ability to discuss outliers?
Ability to question one another and find out why others think differently.
Repeat estimate and see if consensus reached.
What are some problems with estimating for long projects?
-Planning horizon.
-Unknown unknowns, joharis window. Emergent risks. (counter with pivot strategies).
-PESTLE factors - changes to underlying context.
-Changes in monetary value over time: Inflation, Wage rises, Exchange rates.
