Guide to Bottom-Up Estimating
Why it is important:
Bottom-Up Estimating is crucial as it brings a higher degree of accuracy to project management. By breaking down complex problems into individual costs and time estimates, it enables accurate forecasting and procurement planning.
What it is:
Bottom-Up Estimating is a technique in project management where each task is individually estimated for costs and time and then summed up for total project estimation. It is often used when there is a high level of clarity regarding project tasks.
How it works:
It starts by breaking the project into smaller, manageable tasks. Each task is then estimated separately, and the estimates are added together to determine the overall project estimation. This method allows more detailed and accurate estimates, but it is also time-consuming and resource-intensive.
Exam Tips - Answering Questions on Bottom-Up Estimating:
1. Define the term: Clearly define what Bottom-Up Estimating is - a detailed and accurate method of project estimation by calculating each individual task.
2. Provide examples: Include an example of how to carry out Bottom-Up Estimating, breaking down a project into tasks, estimating each, and summing them all.
3. Highlight the advantages: Emphasize on the accuracy and detailed nature of this technique. Discuss how it can lead to better project planning and management.
4. Discuss the downsides: Note that it is time-consuming and requires more resources.
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Bottom-Up Estimating practice test
As the name implies, bottom-up estimating starts at the lowest level of the Work Breakdown Structure (WBS) and moves upwards to calculate the total estimate. This method gives a detailed and accurate estimate because it identifies costs at the task level. Though time-consuming and resource-intensive, it gives a thorough understanding of where the project costs are going, and can hence be used to justify costs to stakeholders.
Time: 5 minutes Questions: 5
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Certified Associate in Project Management Preparation Package (2024)
- Earn 15 PDUs needed for your CAPM certification
- 6432 Superior-grade Certified Associate in Project Management practice questions.
- Accelerated Mastery: Deep dive into critical topics to fast-track your mastery.
- Unlock Effortless CAPM preparation: 5 full exams.
- 100% Satisfaction Guaranteed: Full refund with no questions if unsatisfied.
- Bonus: If you upgrade now you get upgraded access to all courses
- Risk-Free Decision: Start with a 7-day free trial - get premium features at no cost!