What Is Estimator And Project Manager?

Author

Author: Richelle
Published: 31 Mar 2022

The Relationship Between Estimation and Project Management

The connection between estimating and project management is not separate. The project manager would be out of a job if the estimator were not there. The company needs a quality project manager and a quality estimator.

There is a Hopefully, that is the goal. The real prize is not in blaming or praising.

Estimating in the Early Stages of Project Planning

In the earliest stages of project planning, initial, high-level estimates can be used to determine whether or not a project is pursued. Once a project is approved and an organization chooses to move forward with it, more detailed and granular cost estimates are necessary in order to appropriately allocate various resources. A number of factors affect how project managers complete a cost estimate.

Some organizations require all projects to be budget for according to specific policies, while others may only allow the project manager to make the final decisions. Many organizations will work off of rough estimates in the earliest stages of project planning compared to later stages where more exact estimates are required. Calculating is limited because no two projects are the same.

Estimating Project Costs and Duration

Estimating is a critical part of project planning and involves a quantitative estimate of project costs, resources or duration. One dilemma in estimating is that sometimes the estimates are too optimistic in order to win the business.

Estimating Project Cost

If the earned value management measures used for controlling project cost indicate significant variances from the budget, a re-estimation of the cost and schedule and a revisiting of the overall budget can be inevitable. Cost estimates are used to allocate budget to work packages and deliverables which can be politically sensitive within a project as well as among its stakeholders. Budget determination and assignment require stakeholder involvement, communication and their approval.

Both bottom-up and top-down estimating can be done with expert judgment. The number of experts involved, the clarity of the planned activities and steps, and the type of project are all factors that affect its accuracy. The other estimation techniques have their own inherent advantages.

If the current project is compared to previous work, the adjustments to the estimates are determined. If a project has access to historical data on similar types of work, analogous estimates are used, while the details and resources for more accurate estimates are not available. Parametric estimating is a method of determining the expected resources.

It is based on the relationship of parameters and values. The implementation cost per data field is an example of a simple example. The project team's expertise and experience are considered.

If a previous project was delivered by highly skilled and experienced resources while the current team is just at the beginning of its learning curve, using unadjusted historic data may understate the estimated cost. The accuracy of the figures can be determined by the quality of the input data and the applicability of the current work. Resource are needed to perform the data gathering and statistical analyses if the accuracy is higher.

Estimation of Costs

Estimation of Costs is a process. Costs estimated during the early stages of the project have less accuracy than those estimated later in the project. The project manager should make cost estimates in the form of ranges.

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