Categories: Resource

7 Steps To Easily Build Great Estimates For Your Projects

If you are into project management, then there are several tasks that you need to undertake. One such task that you cannot skip or avoid is creating project estimation. For first-timers, it can prove to be a challenging task. You should be well aware of the process involved, tasks deliverables and your team members to come up with a workable estimation. It is equally important to clear your doubts and ask lots of questions.

About project estimation

It is considered to be the process to forecast resources, cost and time involved in delivering the assigned project. It occurs during the planning or imitation stage and takes into consideration potential risks, deadlines and scope.

Significance of cost Estimates in projects?

It is important for every business to set apart a specific budget to run smoothly. Also is essential to know if it is worth to invest in a particular project or not. Estimation provides both the business as well as the stakeholders with valuable information. It includes the amount of money, effort and time required to complete the task. Thus, developing a feasible and viable project plan and budget can become easy.

7 steps to develop project estimation

1. Know job responsibilities and team expertise:

At times, project managers are found to focus more on numbers and not on people involved. Your Business Plan should include effective estimation techniques that need to be built upon great working relationships. Getting to know individual expertise, process and work will allow evaluate their work properly.

2. PM profess functioning:

Besides developing a solid Financial Plan, you need to know how work is performed in your company. Also, identify how all moving parts of the project fit together. Find out how your project schedule will get affected in case you happen to shift a few things. Discuss with concerned stakeholders as it allows you to strategize better.

3. Historical data:

Using such data can help work efficiently on new projects. Documented history allows evaluating information to come up with better estimation. Ask team members to monitor time spent on doing different tasks. Also check tracked time to develop realistic estimation. Underestimation will only result in overdoing your Financial Plan. Project baselines can be used for comparing actuals and estimation made.

4. Study-related trends and techniques:

As a project manager, you need to be always stay updated on the recent trends, deliverables and changes taking place in your industry. Be open to learning new things. Go through relevant blogs, sites and trade publications. Attend networking events and training programs. Sit with your team to create a viable Business Plan.

5. Use WBS (Work breakdown structure):

This project planning process can help break projects into tiny components. For any task or plan, do create a WBS. It will help you to know about the work in details on any assigned project. Map properly and derive estimation for each element. You may use WBS template. Categorize project into subtasks, tasks and phases.

6. Comprehensive project questions:

You may perhaps be requiring estimation for a project based upon brief written message or RFP (request for proposal). Get to know the project detail before offering realistic estimation. Also understand different constraints involved in the project like scope, cost and time.

7. Assign hourly assignments:

Such project management techniques should be regarded as the project foundation. You should outline your WBS as well as evaluate the project’s effort and time. Then list all tasks to assign and add estimated hours. Accordingly, assign tasks to individual members.

The above steps clearly show how you can create project Estimates the right way and ensure success.

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