Parameter, a set of historical data is required. However, this requires that there is statistical evidence of the correlation and if the characteristics of both projects are comparable). For instance, in highway construction, the cost and time to build 1 mile in a previous project could be the basis for calculating the resources and schedule of the current construction project. This observed correlation is then scaled to the size of the current project (source: PMI Practice Standard for Project Estimating, 2 nd edition, ch. The determination of an estimate is based on a statistical (or assumed) correlation between a parameter and a cost or time value. It is an established method in several project management frameworks such as the Project Management Institute’s PMI Project Management Body of Knowledge ( PMBOK) where it is listed under the tools and techniques of the ‘estimate cost’ and ‘estimate activity duration’ processes. Parametric estimating is a statistics-based technique to calculate the expected amount of financial resources or time that is required to perform and complete a project, an activity or a portion of a project. Example 2: Estimating Implementation Cost of an IT System.Example 1: Determining Construction Cost Using a. What Are the Advantages and Disadvantages of Parametric. Through a Regression Analysis and Further Statistical Analysis, if Needed) Determine the Parameter(s) that Drive Cost or Durations (e.g.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |