Liangsiyue Essay

285 Words2 Pages
Below is a project WBS with cost apportioned by percents. If the project cost is estimated to be $600,000, what are the estimated costs for the following deliverables? (a) Design? Cost =600,000*0.4=$240,000 (b) Programming? Cost=600,000*0.2=$120,000 (c) In-housing testing? Cost=600,000*0.4=240,000 What weaknesses are inherent in this estimating approach? This is the classic top-down estimate with apportion methods. For apportion methods, since good historical data about past projects concerning cost is needed to make a proper apportion method, the potential weakness may lies in that good data and experience about past projects are not available or the current data we base our estimate on is not accurate or correct. In that case, the percent we assign to each task under the project, such as 20% for programming cost, may be not reasonable or accurate. For top-down estimating approach, Disadvantages of this approach include:1You could miss low-level technical issues or special components of the system. 2This approach offers little or no basis for the cost justification of subsequent estimating iterations. 3There is a tendency to define the scope in terms of the resources allocated rather than in terms of the activities or deliverables. 4You need some basis for apportioning the overall project estimate across the various sub-components. 0 May miss low-level technical issues. 1 Has little or no basis for the cost justification of subsequent estimating iterations. 2 May omit special components of software system. 3 Need basis for proportioning estimates across project sub-components. Tendency to define scope in terms of resources allocated rather than in terms of activities or

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