Posted by: Jaideep Khanduja
project cost, project estimations, project management, software management
Project estimations is not management’s ballgame. It has to come from the person who is actually conversant with in and out of at least a good amount of different type of projects running within the same organization. Project estimation is not simple mathematics. It is not just A + B.
Various components need to be considered while working out project estimations. Few generic constituents would be simple to identify and work out. Few constituents would be quite specific to that particular type of project under consideration.
Ten major constituents of project estimations can be listed down as:
1. Project Physical Cost
2. Project Intellectual Cost
3. Project Cost of Quality (CoQ)
4. Project Buffer Cost
5. Project Overrun Cost
6. Project Commercial Cost
7. Project Sales Cost
8. Project Material Cost
9. Project Inventory Cost
10. Project Indirect Cost