Hybrid Project Management

10Estimating

Estimating is one of the more challenging aspects of managing a project; it is also one of the most important. Project managers develop estimates for effort, duration, resources, costs, and even reserve. That is a lot of estimating. Estimating for a hybrid project is even more challenging. Different development and work methods use different estimating methods. Therefore, there are a number of different techniques you can use to estimate, and because of that, there are different ways to track progress and report on project status.

In this chapter we will talk about how estimating ranges and accuracy evolve over the project life cycle. We will describe six techniques for estimating and when each technique is best used. Then we will look at how you can use cost estimates to develop a project budget.

ESTIMATING RANGES

When you are first given a project, you usually have a broad understanding of the project objectives and the desired outcomes. In some cases, you have data from similar projects that can help you estimate the cost and duration. In other situations, there is no previous historical data that you can reference, which makes the estimates more uncertain. It stands to reason that the more you understand about the scope, available resources, the nature of the work, and the environment, the more accurate your estimates will be.

FIGURE 10‐1 Range estimates ...