There are four elements in accurate estimating a project. First step is estimating the fundamentals of the project. Then, estimating techniques that the project need to apply. Afterward, building the detailed budget estimate to calculate how much budget need in this project. The last step is generating the cash flow schedule.
In this chapter, I learned three estimating techniques: apportioning, parametric estimates, and bottom-up estimating. Apportioning (top-down estimating) begins with a total project estimate, then, assigns a percentage at that total to each of the phases and tasks of the project. Parametric Estimates that seeks a basic unit of work to act as a multiplier to size the entire project. Bottom-up estimating requires the most effort, but it is also the most accurate. All the detailed tasks are estimated and then combined, or “rolled up”. Everyone (customer, management, project manager, and team) is better served when a cost target is realistically calculated from a detailed plan.
Cash Flow Schedule is a projection that get high visibility by the stakeholders.
ReplyDeleteThe schedule is best shown with focus on Receivable Collections and Inventory Purchases.