Project Scheduling: Estimation Techniques

Estimation Techniques are crucial methods within Project Management, specifically under CAPM (Certified Associate in Project Management).
Why is it important? Estimation Techniques allow project managers to predict the amount of time, resources and costs that will be needed to successfully complete a project. Making accurate estimates is vital for creating an effective project schedule and for successful project delivery.
What is it? Estimation techniques include methods such as Analogous Estimating, Parametric Estimating, Bottom-Up Estimating, Three-Point Estimating and Expert Judgement.
How does it work? Each method involves different ways of calculating estimates. For example, Analogous estimating uses the values of parameters from previous similar projects as basis; Parametric estimating uses statistical relationship between variables; and Three-point estimating uses three estimates to define an approximate range for an activity's cost.
How to answer questions on Estimation Techniques in an exam: Exam Tips: Understanding the differences and appropriate applications of each estimation technique is key. Be prepared to answer questions regarding the advantages and disadvantages of each technique, and how, when and why they would be used in a project. Practicing estimation calculations may also appear in exam questions.