We have already covered several Tools and Techniques of the Estimate Costs process. To be more specific they are all listed below,
- Analogous Estimation
- Parametric Estimation
- Three-Point Estimates – PERT Method
- Reserve Analysis – Contingency Reserve and Management Reserve
- Top Down Estimating and Bottom Up Estimating
Still there are some other Tools and Techniques that you should be aware of,
1.Project Management Software
Pretty straightforward. The software could be as simple as a spreadsheet that takes inputs like resource estimates, labor and material costs and performs calculations to provide activity cost estimates
2. Vendor Bid Analysis
There are projects that require you to select and work with an external contractor. This analysis is basically vetting the different vendors that have applied for the contract
3. Cost of Quality
There are several activities that are performed just to maintain the quality of the project. Remember it is always cheaper to find bugs earlier in the project than later. What activities do you need to perform to find bugs early? The cost of those activities is the cost of quality. A casual definition is,
Cost of quality is the money it takes to do the project right
4. Group Decision Making Techniques
Remember Group Decision Making Techniques? Sometimes you need to work with a group of people to figure out the costs. It also helps in getting the project team to commit to the overall budget and schedule
5. Reserve Analysis
Reserve Analysis is yet another technique that we have already discussed. It basically means keeping some money aside just in case your project needs it
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