Cost Estimation And Cost Analysis

1671 Words7 Pages
Cost estimation challenges can be well addressed through adopting the following set of strategic approach. The key steps undertaken during the given process drives right cost estimation and those actions are as follows:  Documenting assumptions and best estimations: the assumptions can be documented in advance and ensuring that best estimations is done using the right technique. There are various methods of effort estimation and cost analysis however the right one should be selected on basis project complexity and requirement. The documentation of assumptions can also help define clear scope for the project that need to be achieved.  Activity quantification: all process steps and their related activities need to be quantified in advance. The quantification to be done primarily on basis of human recourse requirement, technical requirements, and effort needed to manage project complexity and other key factors.  Detailing out cost factors: the major cost factors for the project like labour and non-labour elements need to be analysed in advance. The deliverable against each cost factors should be determined while aligning other key costs like overheads, inflation should be done accordingly.  Setting up logic between cost and activities: the logical process between the cost factors and related activities need to be established so that right rationalizes to do cost estimation correctly. 3.2.10. Conclusive findings to manage cost worries The key findings out of complete
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