In IT companies, when the client asked, how long the production might take for development of the product? Then the manager shall calculate the estimated time for the production. The estimation of the successful project should occur when the manager has knowledge of “The Art of the Project Management”.
The Art of Project Management can include two approaches for estimation:
- Top-Down Approach
- Bottom-Up Approach
Top-Down Approach (Analogous Project Estimation):
New Analogous projects estimations are totally rely on the Past projects. With the help of previous experiences, the manager shall determine the correlation between bridge cost and key factors of the new analogous projects.
How Top Down estimation use:
The project Management estimation team needs to focus on the project areas which are vary from calculated estimations. The major key of the project management team is the accurate estimation of the projects. So, the manager needs to record the deficient and pendulum swings through the equations.
In project management, bottom-up approach starts work from the level of the bottom of the WBS (Work Breakdown Structures). This approach helps to estimates the total activities of the projects. The bottom-up estimation is also known as Resource-driven estimation. The requirements and estimations of the accurate project document may include more analytical approaches.
How Bottom-Up estimation use:
- Same as WBS, bottom-up estimation breaks the project into smallest work components.
- After that, the manager should have knowledge about their team’s skills. According to the skill of the employees, he creates the team and provides the work components to the team for developing the projects.
The good definition of Bottom-up estimation has scope, requirements of the business and skill of the team members.
How to avoid wrong estimation?
In the art of the project management, the combination of experience projects work and projects documents help to the manager to know their team’s skills and how to use their skills for productions. There are various ideas for ensuring accurate estimation:
- Statistical Risk Analysis:
In project management, the manager should have the challenge winning attitude. The manager shall analysis the statistical risks and logics associated with the production.
- Function Point Analysis:
The manager needs to figure out the functions and features available to them. On the basis of the level of complexity, he needs to divide the resources into low, medium and high requirements. As per available resources, the manager needs using those resources.
- Use of Monte Carlo Simulations:
Monte Carlo simulator helps the manager for finding the most likely solution of the simple problems. First, the manager needs to define all information and feeds into the system. After analysis all information, Monte Carlo Simulator generates the appropriate results.