Cost Estimation Techniques for Projects - Revision history

Tkokotas at 13:57, 18 December 2018

2018-12-18T13:57:25Z

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			''Developed by Nikolaos Gavriilidis''


	'''Cost estimation techniques''' are methods, used by project managers in order to calculate the total cost of a project before it even starts. How much the project will cost is a question that all stakeholders will make when they are being advised about the project. Therefore, it is important to make use of numerous techniques in order to estimate cost fast and accurately.		'''Cost estimation techniques''' are methods, used by project managers in order to calculate the total cost of a project before it even starts. How much the project will cost is a question that all stakeholders will make when they are being advised about the project. Therefore, it is important to make use of numerous techniques in order to estimate cost fast and accurately.

Nikolaos: /* Introduction */

2016-09-26T14:01:43Z

Introduction

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	==Introduction==		==Introduction==

	[[File:accuracy_of_estimating.jpg\|thumb\|right\|~~300px~~\|Figure 1: Accuracy of Estimating <ref name="Soft"/>]]		[[File:accuracy_of_estimating.jpg\|thumb\|right\|250px\|Figure 1: Accuracy of Estimating <ref name="Soft"/>]]

	It is crucial for the project managers to estimate the cost of the project. This cost includes:<ref name="Usmani" />		It is crucial for the project managers to estimate the cost of the project. This cost includes:<ref name="Usmani" />

Nikolaos: /* Annotated Bibliography */

2016-09-26T13:32:09Z

Annotated Bibliography

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	*'''Paul Newton (2015), ''Managing the Project Budget, Project Skills''.''' <ref name="Paul"/>		*'''Paul Newton (2015), ''Managing the Project Budget, Project Skills''.''' <ref name="Paul"/>

	''Summary:'' This book describes how to manage your budget when you take over a project. At the beginning, it provides information concerning how a manager can ~~eestimate~~ the cost of a project, in order to set the budget. Then it describes how to manage the cost during the project, thus it will remain inside the budget that has been set.		''Summary:'' This book describes how to manage your budget when you take over a project. At the beginning, it provides information concerning how a manager can estimate the cost of a project, in order to set the budget. Then it describes how to manage the cost during the project, thus it will remain inside the budget that has been set.

Nikolaos: /* Analogous Estimate */

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Analogous Estimate

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	For example, we assume that a company that develops webpages for other companies, has finished a web page in one month with cost of 5000 €. Now, the same company has to build a similar web page for another company, so they can estimate the same price and time for the new project.		For example, we assume that a company that develops webpages for other companies, has finished a web page in one month with cost of 5000 €. Now, the same company has to build a similar web page for another company, so they can estimate the same price and time for the new project.

	This technique is also used at the beginning stages of a project when there is not much detail ~~about it~~. It can provide managers with fast results with low expenses, but its results are not very reliable and they are dependent on the existence of past projects in the same company.		This technique is also used at the beginning stages of a project when there is not much detail available. It can provide managers with fast results with low expenses, but its results are not very reliable and they are dependent on the existence of past projects in the same company.

	===Parametric Estimate===		===Parametric Estimate===

Nikolaos: /* Introduction */

2016-09-26T13:10:55Z

Introduction

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	It is crucial for the project managers to estimate the cost of the project. This cost includes:<ref name="Usmani" />		It is crucial for the project managers to estimate the cost of the project. This cost includes:<ref name="Usmani" />
	*''the cost of human hours'' and in accordance necessary prior estimation of the duration of the project,		*''the cost of human hours'' and in accordance necessary prior estimation of the duration of the project
	*''the cost of the equipment'' and		*''the cost of the equipment'' and
	*''the cost of materials'' that are required for the project, as well as any		*''the cost of materials'' that are required for the project, as well as any

Nikolaos at 13:10, 26 September 2016

2016-09-26T13:10:10Z

← Older revision		Revision as of 13:10, 26 September 2016
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	'''Cost estimation techniques''' are methods, used by project managers in order to calculate the total cost of a project before it even starts. How much the project will cost is a question that all stakeholders will make when they are being advised about the project. Therefore, it is important to make use of numerous techniques in order to estimate fast and ~~accurate the cost~~.		'''Cost estimation techniques''' are methods, used by project managers in order to calculate the total cost of a project before it even starts. How much the project will cost is a question that all stakeholders will make when they are being advised about the project. Therefore, it is important to make use of numerous techniques in order to estimate cost fast and accurately.

	In this article, the most important techniques that project managers use in order to estimate the cost of a project are going to be analyzed. These techniques are, the expert judgment, the analogous estimate, the parametric estimate, the three point estimate, the bottom up estimate, the reserve analysis and the vendor bid analysis.		In this article, the most important techniques that project managers use in order to estimate the cost of a project are going to be analyzed. These techniques are, the expert judgment, the analogous estimate, the parametric estimate, the three point estimate, the bottom up estimate, the reserve analysis and the vendor bid analysis.

Nikolaos: /* Annotated Bibliography */

2016-09-26T12:22:32Z

Annotated Bibliography

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	*'''Paul Newton (2015), ''Managing the Project Budget, Project Skills''.''' <ref name="Paul"/>		*'''Paul Newton (2015), ''Managing the Project Budget, Project Skills''.''' <ref name="Paul"/>

	''Summary:'' This book describes how to manage your budget when you take over a project. ~~First~~, provides information concerning how a manager can eestimate the cost of a project, in order to set the budget. Then it describes how to manage the cost during the project, thus it will remain inside the budget that has been set.		''Summary:'' This book describes how to manage your budget when you take over a project. At the beginning, it provides information concerning how a manager can eestimate the cost of a project, in order to set the budget. Then it describes how to manage the cost during the project, thus it will remain inside the budget that has been set.

Nikolaos: /* Annotated Bibliography */

2016-09-26T11:41:51Z

Annotated Bibliography

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	==Annotated Bibliography==		==Annotated Bibliography==

	*'''Paul Newton (2015) ''Managing the Project Budget, Project Skills''.''' <ref name="Paul"/>		*'''Paul Newton (2015), ''Managing the Project Budget, Project Skills''.''' <ref name="Paul"/>

	''Summary:'' This book describes how to manage your budget when you take over a project. First, provides information concerning how a manager can eestimate the cost of a project, in order to set the budget. Then it describes how to manage the cost during the project, thus it will remain inside the budget that has been set.		''Summary:'' This book describes how to manage your budget when you take over a project. First, provides information concerning how a manager can eestimate the cost of a project, in order to set the budget. Then it describes how to manage the cost during the project, thus it will remain inside the budget that has been set.


	*'''Gary R. Heerkens, PMP (2002) ''Project Management''.'''<ref name="Gary"/>		*'''Gary R. Heerkens, PMP (2002), ''Project Management''.'''<ref name="Gary"/>

	''Summary:'' This book describes project management tools and techniques used during the entire project management process. But instead of providing information only about their proper use, it describes also the principles behind their use. Thus, project managers can understand both how and why they need to do things.		''Summary:'' This book describes project management tools and techniques used during the entire project management process. But instead of providing information only about their proper use, it describes also the principles behind their use. Thus, project managers can understand both how and why they need to do things.

Nikolaos: /* References */

2016-09-26T11:38:36Z

References

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	Attribution-NonCommercial-ShareAlike 3.0 License, p.279-284 ''Summary:'' This book provides an overview of project management and introduces the challenges that come with project complexity.</ref>		Attribution-NonCommercial-ShareAlike 3.0 License, p.279-284 ''Summary:'' This book provides an overview of project management and introduces the challenges that come with project complexity.</ref>

	<ref name="Gary"> Gary R. Heerkens, PMP (2002) ''Project Management''. McGraw-Hill Companies, p.109-110 ''Summary:'' This book describes project management tools and techniques used during the entire project management process.</ref>		<ref name="Gary"> Gary R. Heerkens, PMP (2002) ''Project Management''. McGraw-Hill Companies, ISBN:0-07-139449-4, p.109-110 ''Summary:'' This book describes project management tools and techniques used during the entire project management process.</ref>

	<ref name="Soft"> http://www.softwaremetrics.com/Articles/estimating.htm [Accessed 15 Sep. 2016] ''Summary:'' This site develops estimating software.</ref>		<ref name="Soft"> http://www.softwaremetrics.com/Articles/estimating.htm [Accessed 15 Sep. 2016] ''Summary:'' This site develops estimating software.</ref>
	</references>		</references>

Nikolaos: /* References */

2016-09-26T11:35:34Z

References

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	<ref name="Chris"> Chris O'Halloran (2013) ''Improving Project Estimation Accuracy.'' [online] strikingprojectmanagement.com. Available at: http://strikingprojectmanagement.com/project-estimation/ [Accessed 15 Sep. 2016] ''Summary:'' This article describes how to improve your estimation accuracy in projects by using specific techniques.</ref>		<ref name="Chris"> Chris O'Halloran (2013) ''Improving Project Estimation Accuracy.'' [online] strikingprojectmanagement.com. Available at: http://strikingprojectmanagement.com/project-estimation/ [Accessed 15 Sep. 2016] ''Summary:'' This article describes how to improve your estimation accuracy in projects by using specific techniques.</ref>

	<ref name="Paul"> Paul Newton (2015) ''Managing the Project Budget, Project Skills''. free-management-ebooks, p.14-19 ''Summary:'' This book describes how to manage your budget when you take over a project.</ref>		<ref name="Paul"> Paul Newton (2015) ''Managing the Project Budget, Project Skills''. free-management-ebooks, ISBN: 978-1-62620-982-9, p.14-19 ''Summary:'' This book describes how to manage your budget when you take over a project.</ref>

	<ref name="Saylor"> Saylor Foundation ''Project Management in a Complex World''. http://www.saylor.org/books/, under the Creative Commons		<ref name="Saylor"> Saylor Foundation ''Project Management in a Complex World''. http://www.saylor.org/books/, under the Creative Commons