cost management - type of estimate

Submitted by vijayavadrevu on Fri, 03/29/2013 - 10:32

 When a company is unsure about the cost of the project but needs to have the project accomplished, which of the following estimating methods might the company rely upon?

A) Parametric          B) Analogous             C) Bottom-Up      D)Vendor bid analysis

 

The answer is given as D) Vendor bid analysis

Why can’t the answer be Analogous?

Can someone explain the concept please?

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sandeepdel

Fri, 03/29/2013 - 11:41

 Company was unsure,..it already tried parametric,analogous and bottom up methods and could not get a confidence number. So last attempt let put this item for sellers.. The method is asking is bids...lets sellers comes with estimation . Hope it makes sense.

vijayavadrevu

Fri, 03/29/2013 - 11:43

 Thank You!!!

Renji2013

Fri, 03/29/2013 - 13:47

If the Q told, that company also dug up the EEF or OPA for similar projects and then not sure about the costs, the answer would be Vendor Bid analysis. These kind of one word questions are nightmare ..


 

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jvleminc

Thu, 07/04/2013 - 04:23

I thought the same as Sandeepdel, the company alreeady tried to assert the cost and failed, so now it tries to know what the external vendor thinks. Not the best position to be in, I'd say... 

sspawar

Fri, 03/29/2013 - 14:22

 i cant say d will be the answer.

When a company is unsure about the cost of the project

when he is unsure

will remain unsure

I personally disqualify such q.

vijayavadrevu

Fri, 03/29/2013 - 17:59

 Thank you Renji and Pawar sir

Renji2013

Sun, 03/31/2013 - 12:59

 


Parametric: historic quantified project metrics + Experts required to map it properly


Analogous : Exactly similar old project (ideally executed by the organization )


Vendor bid analysis: When we dont know any thing about it, even the RANGE of cost the project will require. . I like this one.


Bottom UP: Well, the team has expertise and time and cost to do this process


 


Renji


 


 

vijayavadrevu

Sun, 03/31/2013 - 17:15

 Thank You Renji

Eoghan256 (not verified)

Mon, 06/17/2013 - 18:45

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