Discussion unit – 3

Response:
Creating estimation is essential
for any project, not only for
cost estimate but also for time
estimate. A manager can be
seen sometimes between
overestimating or
underestimating.
Over-estimate is to think over-
optimism, that mean having
the thoughts that nothing can
goes
wrong and everything will be
done on time and there won’t
occurred any errors. On the
other
hand, underestimate is
thinking of pessimistic, which
means having the fear of
failing from
previous experiences.
I believe overestimating and
underestimating for any
situation is not a good factor.
A good
project manager should
maintain the balance while
creating estimate. A project
manager
should review the previous
failures and try to avoid them
but keeping in mind that there
are
always new errors in new
projects that we are not able to
predict before facing.
Project managers in
underestimation analyze all the
risk factors, and they are
prepared for the
worst but they fail to use that
energy to support the project
on a better level. But the
optimistic managers they fail
to encounters the failures or
the weak points of the project.
I
believe that the project
managers should ask
frequently themselves what if
we need more
time to complete the project or
what if we need more budget
to quote the project. However
pessimistic can reduce the
effectiveness of the project and
the motivation of the
employees.
Project managers should have
different opinion in certain
situations on the projects. Most
of
the managers should avoid the
risks they encounter in their
previous projects.
When we can identify our cost
and schedule requirements
with relative precision, it
reduce
the risk of running out of time,
resources, and budget during a
project (Sommers, n.d.)
In my opinion the “it’s all
about trust” approach is the
effective approach. If there is
trust
between the customer and the
company then small issues can
be fixed through
communication or any other
way. This approach tends to
bring us closer to an agile
process,
Introduction
A project estimate is an estimate of the amount of time, money, and resources required to
complete a project. Project managers forecast how much a project will cost, how long it will
take, and what tasks will be required to complete it by analysing available data and using
information provided by the client (Davey, 2021). Most successful project managers focus
on project estimation, which includes project scope, timeframes, potential milestones,
budget, and risks. Managers must have a thorough understanding of their team, their
availability, project deliverables, stakeholder expectations, tasks, and budget in order to
create an accurate project estimation. Furthermore, project estimates necessitate extensive
input from stakeholders (Davey, 2021).

Over estimation Vs Underestimations

Estimation is critical for any project, not only for cost estimation but also for time estimation
(Sommers, n.d.). A manager can be seen overestimating or underestimating at times.
Overestimation is over-optimism, which means believing that nothing will go wrong, that
everything will be completed on time, and that no errors will occur. On the other hand,
underestimating implies being pessimistic, which means being afraid of failing based on
previous failures. Overestimating and underestimating are not good factors in any situation,
in my opinion.
A good project manager should strike a balance when estimating. A project manager should
review previous failures and try to avoid them, but keep in mind that there are always new
errors in new projects that they cannot predict before they occur.
Underestimated project managers analyze all risk factors and are prepared for the worst,
but they fail to use that energy to support the project on a higher level. However, the
optimistic managers fail to encounter the project's failures or weak points.
I believe that the best thing for project managers to do is to ask themselves frequently what
if we need more time to complete the project or more budget to quote the project.
However, being pessimistic can reduce project effectiveness and employee motivation.
Proposed approaches to mitigate estimations inaccuracies
In my opinion, the delta approach is the best way to reduce estimation errors. The delta
method is a general method for calculating the variance of an asymptotically normal
random variable with known variance. The delta method uses the fact that the margin is
(usually) an infinitely differentiable function of the data, XX, and the vector of s to derive a
closed-form solution for the margin's standard errors (Alex al..2020).
This approach can undoubtedly reduce risk while increasing estimation accuracy. It is
thought that if two independent people think a task is easy or difficult, it is more likely to be
true. If they disagree, a more in-depth discussion will almost certainly result in a better
definition of scope.
This approach tends to bring the entire project closer to an agile process, in which the
deadline is fixed but the work product and deliverables are variable (Griffin, 2015). Both
parties should be aware that neither can guarantee exactly what will be delivered at the end
of the project, and both parties require a certain amount of trust and empathy on both
sides.
Conclusion
The balance between overestimate and underestimate is the most important factor in any
project estimate. As the author stated, understanding these is an art, and the managers are
performers. A manager should not be overly optimistic or overly pessimistic. A project
manager should serve as a role model for team members by demonstrating how to estimate
a project while keeping all factors in balance.
References:
Sommers A. (n.d.). 12 tips for accurate project estimating. Retrieved from
https://www.projectsmart.co.uk/12-tips-for-accurate-project-estimating.php
Griffin. M. (2015, June 18). The art of creating accurate estimates. Retrieved from
https://alistapart.com/column/creating-accurate-estimates/
Davey, L. (2021, Aug 30). How to successfully calculate project estimates for your clients.
Retrieved from: https://www.teamwork.com/blog/project-estimates/