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CHAPTER FIVE
Estimating Project Times and Costs
Copyright © 2014 McGraw-Hill Education. All Rights Reserved.
PowerPoint Presentation by Charlie Cook
Where We Are Now
5–2
Estimating Projects
Estimating
The process of forecasting or approximating the time and cost of completing project deliverables.
The task of balancing expectations of stakeholders and need for control while the project is implemented.
Types of Estimates
Top-down (macro) estimates: analogy, group consensus, or mathematical relationships
Bottom-up (micro) estimates: estimates of elements of the work breakdown structure
5–3
Factors Influencing the Quality of Estimates
Planning Horizon
Other (Nonproject) Factors
Project Duration
Organization Culture
Quality of
Estimates People
Padding Estimates
Project Structure and Organization
5–4
Developing Work Package Estimates
Include a risk assessment
Use people familiar with
the tasks
Use several people to make estimates
Make no allowance for contingencies
Preparing Initial
Estimates
Assume normal conditions
Assume tasks are independent
Use consistent time units
5–5
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