Week 5 with Chapter 5 : Estimating Project Times and Costs
In this chapter we discuss about estimating time and cost which are important. That are need to support good decisions, schedule work, develop cash flow needs, etc. there are 2 type of estimating. First, “Macro Estimates” or another word “Top-down Estimates” like its name, the Macro Estimates are derived from the top manager and use for the them to make the strategic decision and etc. Second, “Micro Estimates” or “Bottom-up Estimates” are estimated from the cost elements in the WBS.
At my work place I work as an engineer who design pipe line system and make the bidding document for the construction of pipe lining. Before we start to design, the planning department need to estimate the rough estimating price for preparing the budget for the contract. Then pass the contract to my department for design. After we finish the construction plan we have to estimate again but deep in detail of construction to set the contract price for bidding. On this stept we have learn on the chapter 5 as a Micro Estimates that are important for the bidding. If we estimate the contract price efficiency we get the good result for MWA. Not only this micro estimates are importain, also the macro estimates need to be a good estimate for plan the yearly budget in the effective way.If we estimate more than the true we lost the opportunity to do the other project or if we estimate less than the true we will have the problem with the budget when we start the project.