Question: Which Estimating Technique Is Most Accurate?

What is top down approach example?

Public Health: The top-down approach in public health deals with programs that are run by whole governments of intergovernmental organizations (IGOs) that aid in combating worldwide health-related problems.

HIV control and smallpox eradication are two examples of top-down policies in the public health sphere..

Which type of project cost estimate is the most accurate?

During the planning phase of the project, one need the most accurate estimates known as Definitive estimates whose expected accuracy level is between -5 to +5 percentage. Definitive estimates are based on detailed Work Breakdown Structures (WBS).

When should the bottom up estimate be used?

Bottom-up estimating involves the estimation of work at the lowest possible level of detail. These estimates are then aggregated in order to arrive at summary totals. By building detailed cost and time estimates for a work package, the probability of being able to meet the estimated amounts improves substantially..

What is the advantage of top down approach?

The advantage of this approach is that decisions can be made and implemented very quickly. This is particularly important when time is limited. The other benefit of top-down project planning is that it helps align the project goals with the organization’s strategic goals as upper management is giving the directions.

What are cost estimation techniques?

Financial Management Cost Estimating MethodsParametric: The parametric technique uses regression or other statistical methods to develop Cost Estimating Relationships (CERs). … Analogy: An analogy is a technique used to estimate a cost based on historical data for an analogous system or subsystem.More items…

What is the best way to estimate a project?

How Do You Estimate Time for a Project?Break down the project into activities and then further into smaller tasks, then estimate each task.Take a look at similar projects you’ve done in the past and how many hours they took. … Take past project timelines and adjust them for differences in the new project.More items…

What is the difference between analogous and bottom up budget estimation?

Among all, analogous estimation is the least accurate, and bottom-up estimating is the most precise.

What are the disadvantages of the bottom up estimating?

The primary disadvantage of bottom-up estimating is the time it takes to complete. While other forms of estimating can use the high-level requirements used to start the project process as a basis, bottom-up estimating requires low-level components.

What are the best cost estimate techniques?

Top 10 Tools and Techniques to Estimate Project CostExpert Judgement. While estimating the project cost, the first step is to take the comments from the experts. … Analogous Estimation. … Parametric Estimation. … Bottom-Up Estimation. … Three-Point Estimation. … Reserve Analysis. … Cost of Quality. … Project Management Software.More items…•

How do you do top down estimation?

Top-down estimating is a technique used by upper-level management to estimate the total cost of a project by using information from a previous, similar project. In other words, she’s going to estimate the cost of the current project based on the last time they introduced a new boat model.

What are estimating techniques?

While accurate estimates are the basis of sound project planning, there are many techniques used as project management best practices in estimation as – Analogous estimation, Parametric estimation, Delphi method, 3 Point Estimate, Expert Judgment, Published Data Estimates, Vendor Bid Analysis, Reserve Analysis, Bottom- …

What is a top down approach in teaching?

Top-Down Education A teacher guides the instruction, the activity, the conversation, and the specific output. In this approach, the student receives knowledge from an instructor, then tests that knowledge through application, building greater understanding and clarifying confusion along the way.

Which model is most famous for top down effort estimation?

Putnam model4.1 Top-Down Estimating Method The leading method using this approach is Putnam model. This method is more applicable to early cost estimation when only global properties are known.

What is 3 point estimation in project management?

Three point estimating is a technique which utilizes an optimistic and pessimistic estimate to determine the ideal estimate value for a project task. … It allows known risks to be quantified and built in to the project budget.

What is Bottomup calculation?

A bottom up analysis is calculated by estimating potential sales in order to determine a total sales figure. A bottom up analysis evaluates where products can be sold, the sales of comparable products, and the slice of current sales you can carve out.

What are the three types of cost estimates?

Nonetheless, there are three types of cost estimation classified according to their scope and accuracy. These are (1) order of magnitude estimate; (2) budget estimate; and (3) definitive estimate.

What is the most detailed yet time consuming estimation method?

Bottom-Up Estimating The most accurate and time-consuming estimating method is to identify the cost of each item in each activity of the schedule, including labor and materials.

What is the difference between a top down and bottom up cost estimate?

In the top-down approach you will estimate the duration of deliverables and/or major deliverables. In bottom-up estimating you provide detailed estimates for each individual task making up your deliverables. … Generally, top-down estimating is done first and then later followed up with bottom-up estimating.

What is a major drawback of the top down approach?

Disadvantages of the top-down approach include: Low participation (this is likely to influence the implementation of the plans in a negative way). Requires a lot of knowledge at the top level. Does not use specialized knowledge which may be present in the lower echelons of the organization.

What are the principles of estimation?

An estimate must be an accurate reflection of reality. An estimate should show only the level of detail that is relevant to decisions. Completeness requires that it include all items yet add nothing extra. Documentation must be in a form that can be understood, checked, verified, and corrected.

What are the 2 basic approaches used to estimate the cost of project?

There are two main approaches to take when creating a budget – top-down approach and bottom-up approach.

What are the different types of estimation techniques?

In the project management profession, the following four techniques represent types of estimates based on where the data has been obtained.Expert Judgment. The best place to get project estimating data is from a technical subject matter expert. … Analogous estimating. … Parametric estimating. … Three point estimating.