This course is designed to provide guidance to Project Managers on the principals of how credible cost and schedule estimates are derived. It will explain how estimates can be interpreted and will highlight areas for special attention. Real case studies and practical exercises will be included.
At the end of the course delegates will be able:
- Define the information required to produce a robust project estimate.
- Explain fully the importance of underpinning estimates with clearly defined assumptions.
- Critically evaluate an estimate to determine the effect of exclusions on the likely final cost.
- Describe the most appropriate estimating methods to use during the project lifecycle.
- Explain strengthens and weakness of a range of estimating techniques.
The course follows the following structure:
1. An overview of estimating
• What is an estimate
• Why produce an estimate
• How do you establish a sound estimate
• What makes a credible estimate
2. How to derive an estimate
• Estimating methodology
• Boundary of your estimate
• Life cycle phases
• Cost breakdown structure
3. Types of estimating and different tools/techniques with examples of each
4. Data gathering
• Data requirements
• Data sources
• Data gathering and normalisation
• Data recording and assumptions
5. Detailed estimating
• Getting started - Estimating checklist
• Establishing estimating strategy
• Building an estimating model
• Verification and validation
6. Risk management
• Risk assessment
• Risk Analysis
• Managing risks
• Risk maturity
7. Economic analysis
• Investment appraisal
• Discounted cash flow
• How to deal with Exchange Rates
8. Reporting and understanding estimates
• What to report
• How to report
• Business Cases
• Best practise examples