7/22 Chapter 8 Ideas

Chapter 8:  The Art and Science of Accurate Estimating

The following are the Key Concepts in this chapter:

1. Avoid the classic mistakes;
2. Follow the golden rules;
3. Three levels of accuracy;
4. Phased estimating;
5. Apportioning;
6. Parametric estimates;
7. Bottom-up estimating;
8. Building the detailed budget estimate; and
9. Generating the cash flow schedule.

As mentioned in the chapter, the 9 key concepts (see above), the most important lesson that we can learn about estimating is that all the stakeholders are responsible for accurate estimates. For example, customers, sponsors, and management have more control than the project team over factors such as the stability of the specifications, the availability of personnel, and the deadline pressures. A cooperative approach by all the stakeholders will produce positive results, such that if all the stakeholders understand the dynamics of estimating and work honestly to reduce the uncertainty of the project, everyone will win.