Estimation techniques Well, this is part of ungrouped techniques as part of pm book six. The reason I combine them here is to give you a complete overview of how different estimation techniques we have how they are intending, what what we need to what kind of a technique we should be using at what level Well, if we are using a specific technique, it is dependent on which information what kind of information we need to go and select a technique at what stage we need that technique. And it will also give you a complete overview that how the techniques are going to be work. And then when you are talking about the schedule and the cause these estimates plays a very vital role. So, very important. I mean our projects are dependent on our productions.

Our projects are dependent on our estimation, but what is going to happen in the future None of us knows. Although we have been doing the same thing again and again and again and again, it's still we cannot say with the guarantee or hundred percent surety that yes, this is going to happen. No, it is we don't have that capacity and in our start, we can predict the future, we have to estimate as a human being we are very not very good in terms of estimation. But still we need to estimate because we have to give the project timelines we have to estimate the cost that is going that will project will incur the man the money that financing requirements so that this is the point where we need the money this is the primary we need the money. So if we don't give the estimates we will not able to deliver the project you're not able to identify that okay.

100 Days is going to be 100 days to deliver project what is the cost of the project. So all these things plays a very vital role in our estimation in our real life. Project So, it's a different stages is a different feedback different stages different estimation when we start from the bidding stage when we start from the defining whether we should be looking into the project or not we might be looking at expert judgment or analog or statement expert judgment is estimating sorry another estimating expert judgment is we will be using expert judgment even when we are doing a planning because we would be requiring a people who have done the job before the same category or the same type of a job or a So, that he can tell us that what is the estimated current timeline for this project, but at the beginning it is historical data and estimation estimator expertise, it is my expertise that I have done this job before this is where I will be used.

Then we have analog as estimation between historical data and lots less costly obviously it is a quick it's a top down approach we are looking at okay we need to deliver this project we have done this kind of a project before. It is going to cost us X amount. This is the project that we should do in the X amount and x phase. This is what the analog is costing us then we go into the parametric costing parameter costliness commercial databases. parametric costing is just statistical relationship. It is technically you know the one unit of major and then you move into the multiple units of multi a multiplication of that unit.

Then bottom of how detailed you could go what you need to do what how the one packet level plays a role when you are talking about bottom up how the activities plays a role when we are doing a bottom up point estimates how important the point estimates our will three point estimate will save you from padding or an illogical buffers. This is all we would be looking at starting from expert judgment as to how confident can a project manager be when it comes to estimation is a very important question. Because your confidence will tell the product the sponsors and the team that yes, we can deliver this project with the project work has been done in the past project, the level of confidence is obviously very high. But if it's a new project, we might need to associate some time and identify some time for risk management for uniqueness for identification of new job, but this is you have to estimate even if you have not done the job before you need to estimate or doing estimation we need to take care of the take care of the duration and efforts.

Duration is number of hours that we need efforts is how many how number of people we might say to men effort in 18 to 18 hour of duration. duration is how long an activity stayed while effort is a billable time for the labor to complete the activity. So this is how we will start the estimation This is an introduction of estimation technique. We'll be going estimation expert judgment analog as parameters bottom And the point estimate. Thank you very much. We'll see you in the next session.