Bottom up estimate

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Bottom-up estimation works from the smallest tasks in order to estimate the duration and financial cost of a project. Once each of the smallest tasks have been accounted for, then the project budget and duration can be estimated by adding up all of the estimates to get the sum. Generally, this method for estimating cost and duration is much more accurate than the top-down method, because it considers the sum of the parts, rather than the whole.

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Estimates provide the basis for your business to secure work that clients wouldn't award without a sense of the costs their projects can engender. How you estimate affects how much you estimate and how accurately you can document prospective costs. Two of the most common estimation methods, bottom-up and top-down estimating, offer differing processes, advantages and disadvantages that can help you decide which to use when.

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What we often find is that many are practicing bottom-up estimationrather than the top-down process that QSM has found to be most effective. Bottom-up estimation requires each project team member to estimate how many hours it will take them to complete a particular task, then the manager of that project collects all of the individual task estimates and rolls them up in a spreadsheet to get the overall total of hours for that project. The bottom-up technique provides the illusion of early control and perceived accuracy due to the availability of information such as headcount and hourly cost rates.

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August 10, By Ten Six. Looking for a way to compare bottom-up estimates with top-down estimates? Look no further than Microsoft Project.

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Thank you. Software Engineering. Course Material of Software Engineering.

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Approximating the size duration, effort and cost and risk of a project or phase by breaking it down into activities, tasks and sub-tasks, estimating the effort, duration and cost of each and rolling them up to determine the full estimate. Determining duration through a bottom-up approach requires sequencing and resource levelling to be done as part of the scheduling process. Best performed by those actually intended to do the work, or those with the same skill sets required for that work.

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The cost of each project activity is estimated in the estimate costs process. An interesting point about this process is that it uses the same tools as in the estimate activity duration. In the estimate activity duration process, you determine the time taken by each activity.

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Bottom-up estimating is a project management technique in which the people who are going to do the work take part in the estimating process. Typically those people are the employees, vendors and other project team members. They work with you, the project manager, to develop estimates for tasks in the work breakdown structure WBS.

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Andy Makar shows how to develop a bottom-up estimate using Matchware MindView mind-mapping software's roll up feature. In my previous TechRepublic article, I described how to estimate costs across a project using a top-down approach with an apportion method. Top-down estimating and allocation is useful when you're estimating similar projects; however, a bottom-up estimate will yield a more accurate estimate.

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Since estimating efforts cost money, the time and detail devoted to bottom up estimates is an important decision. Yet, when estimating is considered, you as a project manager may hear statements such as these:. Bottom up estimates at the work package level can serve as a check on cost elements in the WBS by rolling up the work packages and associated cost accounts to major deliverables.

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