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Estimate Cost Tool

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umeshbww
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Estimate Cost Tool

Postby umeshbww Sun Aug 24, 2014 12:29 am

PM sits down with the contractor who did similar work and asks him to help how much project will cost. He takes a look at her equipment and specs; tells her what she can afford to do with budget she has. Which tool/technique did PM use to estimate project cost?

Analogous Estimating or Expert Judgement?

Source : Head First PMP (not satisfied with explanation in book)
GOAL : PMP Certified by 24th Sept 2014 -- ACCOMPLISHED
signor_rk
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Re: Estimate Cost Tool

Postby signor_rk Sun Aug 24, 2014 2:12 am

Expert Judgement as he is basically looking at the equipment and specs , budget , which means he is applying this tool for ESTIMATE ACTIVITY RESOURCES.
Regards ,

Ranjit
umeshbww
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Re: Estimate Cost Tool

Postby umeshbww Sun Aug 24, 2014 2:56 am

Thanks for reply - Book mentions it as Analogous Estimating (with explanation) - confused me.
GOAL : PMP Certified by 24th Sept 2014 -- ACCOMPLISHED
signor_rk
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Re: Estimate Cost Tool

Postby signor_rk Sun Aug 24, 2014 4:57 am

That means the referred book is giving more emphasis on his earlier expertise of similar work executed and the method of quick estimating which leads to an Analogous Estimating.
Regards ,

Ranjit
nagarwal
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Re: Estimate Cost Tool

Postby nagarwal Mon Aug 25, 2014 1:56 pm

The right answer should be Analogous Estimating. How can looking at your equipment and specs give you an estimate? The answer ideally is hidden in the statement "the contractor who did similar work" meaning that contractor is probably referring to one of the similar historical projects.
namita
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Re: Estimate Cost Tool

Postby namita Tue Aug 26, 2014 6:25 am

few important things

1. Expert judgement is about contractor knows everything and knowledge in his head. In this question, its mentioned that you are going to that contractor not because he is expert in that area but he has done similar projects. Also in case of expert judgement, we go to experts because if we miss that we may end up skipping or missing some important aspect of project

2. Analogous estimation is purely about knowledge of past SIMILAR projects. Here important point is if the reference from past you are taking is not what you are goign to do you will end up estimating wrongly.

As explained above - question's emphasis is more on analogous

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