Analogous Estimation Technique in Project Management

Analogous Estimation Technique in Project Management

Today, we will discuss the cost and schedule estimation technique called analogous estimation. Project managers often need to make a project cost or duration prediction with limited information For example, the management needs an initial budget to perform a cost-benefit analysis for a feasibility study. There is no detailed project scope available. However, you have…

Parametric Estimation Technique in Project Management

Parametric Estimation Technique in Project Management

Parametric estimation is a quantitative technique. You can use this to estimate project cost, project schedule, or resource requirements. This provides a reliable prediction. However, you will need mathematical data from a similar past project. In the case of large amounts of data with mathematical correlations, you can use the info from your organizational process…

Three-Point Estimation Technique in Project Management
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Three-Point Estimation Technique in Project Management

Today, we will discuss the three-point estimation technique in project management. Three-point estimating is a quantitative assessment technique that uses a mathematical process to calculate estimation.  Workflow cost and schedule estimation are crucial for project managers. The three-point estimation technique offers an effective method to balance timelines, prepare for uncertainties, and interpret estimate disparity.  Let’s…

Project Cost Estimation: Examples and Techniques
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Project Cost Estimation: Examples and Techniques

The process of project cost estimation is vital. You quite literally cannot afford any mistakes, as errors may put you over budget and lead to project termination. Before we discuss the project cost estimation, let’s check a real-world example. A local government floated a multi-year contract to construct several metro train stations. Several contractors placed…

Bottom-Up Estimation Technique in Project Management
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Bottom-Up Estimation Technique in Project Management

Today, we will discuss the bottom-up estimation technique. This is a quantitative estimation technique that helps you provide the most accurate estimation. Let me give you an example of this technique. The government has floated a contract to build a commercial building with a detailed scope of work. The contract must be a firm fixed…

Rough Order of Magnitude (ROM) Vs Definitive Estimate

Rough Order of Magnitude (ROM) Vs Definitive Estimate

Cost estimation is an important process for any project for an obvious reason – it involves cost. Therefore, the estimation should be accurate within its acceptable limit.  Today in this blog post, we will discuss two such estimates: Rough Order of Magnitude (ROM) Vs Definitive Estimate. These estimations are helpful in cost estimation and serve…

To-Complete Performance Index (TCPI) in Project Cost Management
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To-Complete Performance Index (TCPI) in Project Cost Management

The To Complete Performance Index (TCPI) is the third forecasting tool mentioned in the PMBOK Guide.

This is a relatively new term which was coined by the PMI to assist project managers in calculating the future cost performance of the project.

Since the concept of TCPI is new and there is not much research available on this topic, it often confuses many people.

However, there is some good news for you. Now that I have passed the PMP exam and have a better understanding on this topic, I am writing this blog post to make this concept easier for you.

First I will explain to you the definition, next I will show you a real world example, and then finally I will give you mathematical examples to hit the last nail in the coffin.

Okay let’s get started.

Estimate to Complete (ETC) – Another Project Forecasting Tool
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Estimate to Complete (ETC) – Another Project Forecasting Tool

You will often want to know how much more money you need to complete a remaining task.

In your personal matters, you can go with a guess, but in your professional life you must adopt a professional approach and use proven techniques to reach a decision.

In project management one such technique is the Estimate to Complete (ETC), which is another forecasting technique used along with the estimate at completion.

This technique gives you an approximate idea of how much money will be required to complete the remaining balance of work.

Since this is a very important forecasting technique, I will explain this topic with three simple examples in three different scenarios, so you can understand it properly and then we will move on to mathematical examples.

This topic is very important for the PMP exam. You may see a few questions from this topic on your exam.

Okay, let’s get started.