Question

Incorrect cost estimates can negatively impact project schedules. Consequently, it is critical to have an effective estimating process, which can vary by project. For this discussion, post the following:

• Provide a brief project scenario (describe the purpose of the project) and use Bottom-Up Estimation approach. Be sure to cite the source of the estimation approach in your post.
• Provide reasons for why the Bottom-Up Estimation approach is appropriate for the given situation.

Answer 1

Evaluation is an important part of project planning, especially for scheduling and project costs. There are several assessment techniques, including bottom-up evaluation. Learn about bottom-up assessments and their advantages and disadvantages.

Lance is a construction project manager who needs to change his approach to evaluation. He usually does not spend much time evaluating, confident in using his experience with similar projects as a guide. However, the last few projects he worked on exceeded expectations, so he decided it was worth the effort to be more accurate. He decides to try to evaluate bottom-up.

Bottom-up evaluation is a way of estimating total costs by estimating prices for small components and using these sums as total costs. In project management, this type of evaluation is used to create a schedule or budget. Project work is usually broken down or broken down into smaller components, and time and cost estimates are assigned to each component. The schedule is determined by summarizing each period's estimates, while the budget is determined by summarizing individual cost estimates.

Planned to use this new method, Lane wants the support of his team as well as the project stakeholders. It starts with the drawbacks and advantages of using this method. From there, he plans to give them practical examples using the method.

Lance's decision to accept a subordinate rating came after he considered the trade and determined that the advantages outweighed the disadvantages. The advantage of top-down evaluation is that it leads to greater accuracy. That's what Lance needed. The accuracy results as this method takes into account each component of the project work. Accuracy is also achieved because assessments for each component are provided by the person responsible for the components: those who know the job well.

The main disadvantage of bottom-up evaluation is the time taken to complete. While other forms of evaluation may use the high level requirements used to begin the basic design process, top-down evaluations require low-level components. To consider each element of the project work, these components must be predetermined by decay. The process is long and can be even more so when a large amount or complex work is involved.

Another disadvantage of bottom evaluation is that it can be expensive. The time spent destroying the project work is free. In addition, assessments made for each component are provided by the person responsible for completing the component. These team members usually do not participate in the project during the planning phase. Attract people, especially if they are contracted, increasing the cost of planning, which increases the cost of the project.

In general, a top-down evaluation is not the best choice for projects that do not allow for long-term projects or projects that do not have a contract, usually starting on the project sooner rather than later. Lane can use this method because he has a project team that can assist with the evaluation and because stakeholders are more concerned with accuracy than speed.