Back to School Offer

Get 20% of Your First Order amount back in Reward Credits!

Get 20% of Your First Orderback in Rewards

All papers examples
Get a Free E-Book! ($50 Value)
HIRE A WRITER!
Paper Types
Disciplines
Get a Free E-Book! ($50 Value)

Time and Cost Estimating, Essay Example

Pages: 2

Words: 610

Essay

Estimations are an important part of business preparations and operations due to the need for the forecasting of related situations. This approach is necessary because there is a constant balance that needs to be maintained between the achievement of stakeholder expectations and control over the ongoing production processes. Most industries are too unpredictable to rely on a brief observation of current raw data for the approximation of both time and cost restraints. Accordingly, several strategies have developed over time to offer an organized and calculated perspective on these variables.

One of the most basic categorical divisions between time and cost estimate systems is the identification of the process as being either top-down or bottom-up (Gray & Larson, 2011). The former begins with the outcome and is arranged to identify the contribution of specific factors like time and cost considerations, while bottom-up analyses begin with the components and work up to an examination of the overall process. These approaches allow for the consideration of differing perspectives when examining aspects of the workflow for purposes like the estimation and/or evaluation of cost and time allowances. Approximations made possible by these processes are necessary to support decisions, set schedules, and for the assessment of project progression.

Time and cost estimations require the consideration of a variety of project-specific factors including the duration, the nature of participating people, organizational culture, project structure, and the need to pad estimates for safety. Quality issues can easily arise when these or other important variables are not given the appropriate amount or effort of attention. There are several guidelines that can help to support the validity of estimations, like having multiple people familiar with each task participate in the part of the process that is associated with their experience. The use of average values for estimate purposes is better than extremes because they best reflect the most likely scenario, each section should be treated independently, and it is vital to maintain consistent units of measurement during time-focused calculations. The addition of risk assessments can also be beneficial to prepare stakeholders for potential but unexpected problems that may arise.

Top-down assessments of time and cost estimates are typically conducted by managers who are familiar with the process by results but may not be educated on the situation regarding the various component methods that contribute to these final observations. The bottom-up approach allows for the packaging of several component evaluations/estimates to be delivered at the higher project levels and provides information from those who are directly involved in the assessed areas of the system. Each direction of estimating has benefits and disadvantages that can make them weak individually, but together they can provide a comprehensive picture of the issues that affect time and resource costs. Accordingly, both views are commonly employed in the estimation processes of full projects.

The preferred method of estimation of time and cost allowances begins with the completion of a top-down overview by higher-level participants. Some tools that can be part of top-down analyses are consensus methods, utilizing ratios, and the consideration of learning curve influences. Organizational and work breakdown structures are designed following the initial estimations to identify the expected frameworks of task assignments and managerial hierarchies. These evaluations are immediately followed by the performance of bottom-up assessment procedures, which may also include templates like the top-down analysis but also relies on the use of parametric indicators along with the completion of WBS packages. The completed integration of both top and bottom originating estimations should be comprehensive but not overwhelming in detail and must leave room for refinements as needed.

Reference

Gray, C. F., & Larson, E. W. (2011). Project management: The managerial process (5th ed.). New York, NY: McGraw-Hill/Irwin.

Time is precious

Time is precious

don’t waste it!

Get instant essay
writing help!
Get instant essay writing help!
Plagiarism-free guarantee

Plagiarism-free
guarantee

Privacy guarantee

Privacy
guarantee

Secure checkout

Secure
checkout

Money back guarantee

Money back
guarantee

Related Essay Samples & Examples

How the 2010 Earthquake in Chile Changed My Life Forever, Essay Example

About five years ago, I lived through a devastating earthquake that wracked Chile just one month prior to my leaving Chile to go live in the United States. I [...]

Pages: 4

Words: 977

Essay

International Strategy and Cooperative Strategy, Essay Example

Part I: International Strategy Determine why, given the advantages of international diversification, some firms choose not to expand internationally. Provide specific examples to support your [...]

Pages: 2

Words: 600

Essay

Dr Eris Cosmetics From Poland, Essay Example

Overall, Dr. Irena Eris Cosmetic Laboratories has been growing consistently since 2000. While they originated as a local brand, it is now beneficial for them [...]

Pages: 1

Words: 283

Essay

The Vow, Essay Example

In “The Vow”, there are two different kinds of characters; those who search for the past and those who try to ignore it. In many [...]

Pages: 2

Words: 617

Essay

Cause and Effects of Smoking Cigarettes, Essay Example

Smoking cigarettes has historically been a leisurely and highly popular social activity that a litany of people turn to as a way to assuage daily stress, lose weight, and feel [...]

Pages: 3

Words: 913

Essay

Luxury Brands, Essay Example

How luxury brands can communicate their ethics face to an increasing number of consumers who request this information? Introduction It is important for luxury brands [...]

Pages: 12

Words: 3257

Essay

How the 2010 Earthquake in Chile Changed My Life Forever, Essay Example

About five years ago, I lived through a devastating earthquake that wracked Chile just one month prior to my leaving Chile to go live in the United States. I [...]

Pages: 4

Words: 977

Essay

International Strategy and Cooperative Strategy, Essay Example

Part I: International Strategy Determine why, given the advantages of international diversification, some firms choose not to expand internationally. Provide specific examples to support your [...]

Pages: 2

Words: 600

Essay

Dr Eris Cosmetics From Poland, Essay Example

Overall, Dr. Irena Eris Cosmetic Laboratories has been growing consistently since 2000. While they originated as a local brand, it is now beneficial for them [...]

Pages: 1

Words: 283

Essay

The Vow, Essay Example

In “The Vow”, there are two different kinds of characters; those who search for the past and those who try to ignore it. In many [...]

Pages: 2

Words: 617

Essay

Cause and Effects of Smoking Cigarettes, Essay Example

Smoking cigarettes has historically been a leisurely and highly popular social activity that a litany of people turn to as a way to assuage daily stress, lose weight, and feel [...]

Pages: 3

Words: 913

Essay

Luxury Brands, Essay Example

How luxury brands can communicate their ethics face to an increasing number of consumers who request this information? Introduction It is important for luxury brands [...]

Pages: 12

Words: 3257

Essay

Get a Free E-Book ($50 in value)

Get a Free E-Book

How To Write The Best Essay Ever!

How To Write The Best Essay Ever!