How can a project manager ensure that estimates are accurate and how bad estimates can lead to good projects failing
Estimating is a critical part of project planning, involving a quantitative estimate of project costs, resources or duration. Typically, a project estimate shows the client: Tasks – What’s going to be done, Resources – By who, Rate – At what billing rate, in what currency, with how much tax, Duration – For how many hours or days, and + any mark-up and 3 rd party costs (such as hosting, photography, travel or subsistence). Accurate Estimates 1. Designate a Lead Estimator 2. Encourage Bottom-Up Estimating 3. Gather Detailed Requirements 4. Determine Pessimistic, Best Guess, and Optimistic Estimates 5. Encourage Communication among Project Members 6. Include Finance and Legal Staff The project manager can ensure that his estimates are correct by beginning with estimating the time needed for each task rather than for the project as a whole. The level of detail they need to go into depends on the circumstances. For example, you may on...