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In reality,combining these three approaches is what works better for example top-down with a bit of bottom-up. Parametric estimates are easy to calculate but will not apply to every expense, so use this approach when it is possible.

It depends which project you are going to start for my project Top-down budget practice is fine.

I've already read all your comments. And found it out very interesting... Thanks again

I believe that you should use the top-down approach whenever possible because you first of all consult with your director or experts that had done budgeting for similar activities, and when you seek vendors you can always consult with your budget to give them the range of your financial resource. However, you can apply all three approaches depending on the type of the activities.

Exactly my opinion too

Estimating cost is use to predict the quality cost and price of the resources require by the scope of the project . cost estimate is needed to provide decision making with the means to make investment decision.

Bottom up approach is the because it creates cost estimates that are realistic through individual involvement

The best approach would be careful planning and multiple sources.

On paper I think the best approach to ensure staying on budget would be the parametric approach. With knowing the cost of what you need, it helps eliminate the issues that can occur with the other approaches. However, we do not live in a perfect world and I do not think this approach would work for every type of project. For that reason, I think a combination of the three approaches to try to ensure an accurate budget would be best.

Creating a proper estimate involves detailing every expenditure you expect to make throughout the duration of a project. Compiling this information will help you charge the client enough to make a profit on the job, and will also guide you in keeping the project within budget.
I beleave that one of this approach we have to chose whenever we find is possible bottom-up and top-down. Each entails accounting for each item and labor cost, but there are particular projects and instances where one may be better than the other.

Hello ! For me i believe parameric approach is the best, because it may give average expenses where you may not spend more or less instead range btn loss and profit low risk of mis management

How do we estimate costs? does the project need financial analysis?

Based on my experience, it is best combining the (3) three approaches Top-down, Bottom-up and the parametric to get a more realistic or accurate estimates in the budgeting process.

I think top down is the best. Because for one to learn you need some kind of a mentor

For me, a combination or top-down and bottom up approaches is the best way to estimate costs. It caters for top level views and on the ground views. It also has an advantage of including even the most subjective costs that need to be factored into the budget, such as going rates for local labour or other services, which the parametric approach may not cover.

In my opinion, the top-down approach to cost estimation is the most effective approach since it is relatively quick and simple. This therefore saves time which is key in scheduling projects and is a constraint to project management.

I believe that you should use the top down approach whenever possible because the project can be execute as soon as possible

I believe that you can vary the approach to take to generate cost estimates based on your familiarity with the project and previous experience. Ideally, a bottom-up approach can often provide most realistic estimates, however.

I believe that you should use the Bottom-up approach as much as possible because it is the most holistic approach in my opinion. who better to say the cost of an activity or a product than those directly involved with its procurement or use? I understand that there might be inflation of costs but that can be checkmated by mixing this approach up with all the other approaches.

For me, the parametric approach is the best option because it is more simplified and relatively accurate, and sincere. And because the cost is generated per unit it gives additional room for the product quality assessment

I feel it is important to first look at the project and see which estimate works better. Even a combination can be okay but then you have to be smart about it because, combining can be costly.

I believe that parametric estimates is the best means because once one is able to ascertain the current prevailing market cost of it the items on the list of activities, it will go a long way in ensuring that a realistic budget.

I think parametric is a good approach. It is realist, sincein the end one gets the exact price and will know exactly how much will be spent for a particular item, which cumulatively will provide cost of the entire project.

I would align my thoughts with the Course's submission that any or all of the three approaches to estimating costs should be used, should the specific context require such.

Parametric is the most realistic approach. It makes you do real some research to estimate the budget. It will get you more familiar with real situation.

All approaches have advantage and disadvantage.So they must be used combinedly. When one approache is difficult to apply easyly,it has to be skipped and the other must be applied.

for me, the most effective method for generating cost estimates is the top-down method. although it is not 100% reliable, it allows you to have a clearer idea of the costs and to save time

Bottom-up approach is best option for estimating the cost of activities because it give opportunity to person that implement the project. Lower people have better understanding of the market and it will be easy for them to estimate the cost of each activities in the WBS.

Personally, I would look at the expense at question and use my judgement to generate the budget because some of expenses can be easily estimated because they are generally easy to verify, but some require proper research and inquiry. So i will combine the 3 approaches to ensure almost accurate estimates on the budget.

For me parametric approach is uses an algorithm or statistical relationship between historical data and other variable eg square footage in construction to calculate resources quantities needed for an activity based on historical data and project parameter

I believe that all the approaches to budgeting are important to consider. This is because they have their advantages and shortcomings. It is also dependent on several factors like type of project, governance structure and maybe donor requirements. I also see this as a methodology issue that can be included in the project proposal stage, design and planning stage as this allows key project stakeholders to deliberate on it. In my experience combining bottom - up and parametric methods have proved to be more effective.

I believe that you should use a combination of all three approaches. Use the parametric and bottom-up approaches first whenever possible because these approaches allow for more verifiable data to be included in the estimates. Top-down factors must be considered as well because the managers will know donor requirements and other costs such as the Human Resources costs that may not be known to workers at the implementation phase.

I agree with that because... They may require that you use a certain budget format, that you categorize your expenses in a certain way, or that you report on your budget a certain number of times per yea

Cost estimation is a crucial part of planning and executing any project, as it helps ensure that the project is completed within budget and in line with the client's expectations. Below are some key steps and considerations for conducting a cost estimation for a project:

Identify resources: Before starting to estimate project costs, it's necessary to identify the resources needed to complete it, such as personnel, equipment, materials, supplies, and others.

Establish unit costs: Once the necessary resources have been identified, it's important to establish the unit costs of each resource. For example, the cost per hour of a worker, the cost per unit of a material, or the cost per day of equipment.

Determine the quantity of resources needed: After establishing unit costs, it's necessary to determine the quantity of resources needed to complete each task or activity of the project.

Calculate total costs: With the quantity of necessary resources and unit costs established, the total costs for each task or activity of the project can be calculated.

Sum total costs: Once total costs have been calculated for each task or activity, they can be summed to obtain the total project cost.

Add a contingency margin: It's important to add a contingency margin to the total cost to cover any unforeseen events that may arise during project execution.

It's important to note that cost estimation is a task that requires experience and sound knowledge in the field, so it's recommended to seek the advice of a project management specialist. Additionally, it's important to keep in mind that cost estimation is a dynamic process that may require adjustments as the project progresses and more information is acquired.

In my opinion, the parametric approach is the most pragmatic and cost effective way of generating cost estimates. By listing out the costs this way the budget can become more transparent.

The parametric approach is so easy to understand. It means that once you know the unit price of a product then budgeting becomes easy because all you have to do is multiply. It also encourages honesty because it is so simple that anyone could understand what you are doing.

I believe there is a high chance of subjective and recall bias in the bottom-up approach.

in my opinion the parametric approach is good because it reduces the risks

In my Opinion i will apply the three approaches to Cost

1. The Top down
2. Bottom Up
3. Parametric

Combining this three methods leaves no gap in your Costing it enables you to fit into every mothod and make an actual cost from it.

I believe that the top-down approach will be better because it’s more coordinated and thereby easy to evaluate and the project manager is able to get views of other managers about the project budget

I believe that you should use the Parametric approach whenever possible because it gives the accurate calculation of items or materials and job needed to carry out.

Well, I think Parameters was best method

for me top down because it easy to use

I believe that you should use Top down because involving experts gives you a clue on the activity and generate cost estimates

I think the parametric method is the best method considering the level of transparency and accuracy it has. It is also an easy method to use once a person knows the cost per unit.

As a project manager i would prefer opting to parametric approach because it only require some one to have information on cost per unit then from there you just make calculation, its not time consuming process, no room for a lot of discussion with the team.

project break down is the main point of work

I believe that using top bottom is the best way because its a big team so it disqualifies dishonest.
Since it has a big team we can allocate each person with an item to research prices and cost involved in different items then compare them separately to see which will fit in the budget well.

Its better to use both top-down and bottom up approach. The managers could have an estimated budget allocation, but side by side, the manager should assign individual experts who will be closer to the budget to do an assessment and estimate cost for a more realistic and on the ground budget estimation.

I spend a lot of time trying to reconcile the budget that is handed down from the upper executive level. They rarely include our PMO group for guidance on costs, so they are often outdated, and do not align, and of course reduced to sell the project to the customer. So I break down what they give me, and fact check, and figure out what can be done to salvage it, based on scope and schedule. I create estimates in a hybrid way, all costs that can be anticipated from known projects are input, and other items and process are broken down to a smaller level so that they can be semi-accurately estimated and worked back up into their category for an overall cost/price.

I spend a lot of time trying to reconcile the budget that is handed down from the upper executive level. They rarely include our PMO group for guidance on costs, so they are often outdated, and do not align, and of course reduced to sell the project to the customer. So I break down what they give me, and fact check, and figure out what can be done to salvage it, based on scope and schedule. I create estimates in a hybrid way, all costs that can be anticipated from known projects are input, and other items and process are broken down to a smaller level so that they can be semi-accurately estimated and worked back up into their category for an overall cost/price.

I believe parametric estimating method is the best because it enables you the opportunity to know the cost of each unit of materials are equipment you are buying and as such, you will be able to put together an accurate estimate for your project

For me, the best way to estimate a budget is a mix of Buttum-up and parametric. With Buttum-up, you can see how estimation are made by employees and they are accountable of the estimations they give whatever we can have lost of time. So, if the price received by the project manager a raisonable, he can trust the employee and give his the budget he asking for doing a task.
Parametric estimation is also very useful because we have the unit cost of all the thing we need to implement the project, but we should remind of hidden cost like transport fee, transaction fees, workforce.

I believe that you should use the bottom up approach whenever possible because it will likely be the most accurate. In my experience, Donors often prioritise financial responsibility, and are willing to stretch the timeline to ensure this .

thank you for educating for on the three budgeting method of Top-down, button-up and parametric

Based on my experience, a combination of parametric and bottom-up approach works best. The bottom up approach provides a first hand experience from the direct implementers of the project while the parametric approach provides the detailed computation of the costs. When these two are combined, it is easier for the project manager to adjust the itemized costs done through the parametric approach whenever there are certain adjustments to be considered in the implementation of the project.

it depends on the situation and can change. Without knowing the situation it is difficult to say which one is best to use.

The best approach for estimating a budget depends on the project's complexity, available data, and available resources. A combination of different approaches may also be used to get a more accurate estimate.

Parametric Estimate will be preferable because of precision. Again, it will give the budget more sense of reasonability, accuracy and reality.

I feel that preparing parametric estimates will be accurate while preparing budget. Because it has the component like activity, number of item, cost per item, budget and total. Same way, while preparing the budget we, the organization should ensure to involve program staff / project director, person from the implementation and finance manager. So that, it will be comprehensive, realistic and accurate. Top down, bottom -up estimates methods also incorporated into this. Its all about how we prepare the budget with the involvement of different stakeholders of the project.

I am of the opininon of using the bottom - up. It captures the core of the project budget by taking into cognisance the actual contrbutions and recommendations of project members and mangers. Parametric can be very time-consuming and doesn't necessary capture the entire project scope and resources. Top -down might not necessary reflect all the project budget because of the absence/inadequate required personnel during the budget preparation phase.

@ThaoTran said in Module 2 Discussion: Estimating Costs:

This is the module 2 discussion. You may participate in this discussion after beginning module 2.

In this module, you have learned about three approaches to estimating project costs: top-down, bottom-up, and parametric.

In your opinion, what is the most effective way to generate cost estimates? Make sure to explain your response.

Sample response: I believe that you should use the para-metrics__ approach whenever possible because it produces the actual cost estimate_____ .

In my opinion, the most effective way to generate cost estimates depends on the specific context and requirements of the project. Ultimately, the most effective approach depends on factors such as project size, complexity, available data, time constraints, and the level of accuracy required. In practice, a combination of approaches can be used to cross-validate estimates and mitigate potential biases or limitations. It's important to consider the specific project context and leverage the strengths of each approach while mitigating their weaknesses to generate the most accurate and reliable cost estimates. Thanks

I think parametric approach is the best approach, this is because it is straight forward and all that is needed is just to get the actual cost per unit, and then do the multiplication by the number of items or goods you want to purchase or need.

Its more reliable to use both top-down and bottom up approach. The managers could have an estimated budget allocation, but side by side, the manager should assign individual experts who will be closer to the budget to do an assessment and estimate cost for a more realistic and on the ground budget estimation.

Hi, the parametric method is much more suitable for cost estimation.

Informed decision-making: Parametric estimations provide more detailed information on costs, enabling informed decision-making regarding budgeting, planning, and cost control. Project managers can gain a better understanding of cost-influencing factors and take appropriate actions accordingly

pour moi le moyen le plus efficace de générer des estimations de cout est de recueillir des données historiques et de les utiliser pour établir des projections pour le projet en cours.

I think a combination of the three approaches work best depending on the nature of the project's activities. although the bottom up approach gives realistic cost estimates so I think its the best, its disadvantage of dishonesty can be curtailed by disciplinary actions and cross checking receipts.

Je préfère utiliser l'estimation paramétrique car c'est l'une des techniques les plus précises pour déterminer la durée et le coût d'un projet.

I believe parametric approach the best because it gives you the most accurate cost. when you get the cost of one of the variable you need to use multiple by the number need, you will get you estimating costs

Budgeting can be difficult. I have always used Activity-based budgeting by combining the Bottom-up and parametric approaches. Learning through this course that combining all three-top-down, bottom-up and parametric is an added knowledge and a great learning to practice.

Understanding, identifying, assessing and responding to risks as part of project management is a new thing I have learnt.
This course was supposed to be refresher course for me but has become a novel course for me. It helped polished what I know and have been doing for the past seven years. But I have learnt new things such as the RACI; Stakeholder Analysis Framework, and risk management from a new perspective.

I believe you should use the parametric approach while estimating activity costs in your project. This is because parametric approach has the most reasonable overall cost as one has the cost per unit and just has to multiply this figure by the number of units they require. It helps avoid overpricing of goods by biased personnel engaging in the top-down and bottom-up approaches who would want to earn something extra from the project.

I believe that you should use the bottom up approach whenever possible because the individuals who will actually be spending the money create cost estimates. .*

i believe that you should use the paremtric cost analysis. This way, you are able to get the accurate budget for that activity and should it be that the price of that particular item increases, you might need to reduce the number of the items as originally planned for, so as to ensure accountability to the donor.

Hello every body. It's a pleasure for me to be learning in project management

I believe that I should use the Bottom-up approach whenever possible because this approach can produce more realistic cost estimates than top-down.

For me parametric is good choice for budget estimation b/c most of project activities are measurable in term of unit even management cost could be estimated relative to this approach.

In my opinion, the most effective way to generate cost estimates is through a comprehensive and systematic approach that combines accurate data, thorough analysis, and expert judgment.

I think combining the three is the effective way to make the budget because it results in enhanced accuracy. By combining different methods, you can improve the accuracy of your budgeting process. Top-down methods provide an overall perspective and strategic alignment, while bottom-up methods allow for detailed input from individual departments or stakeholders. Parametric methods utilize historical data and statistical models to estimate costs. The combination of these approaches helps capture a broader range of perspectives and factors, leading to more accurate budget projections.

These all three approach could be used by our organization depending on type of activity being solved,for me parametric is preferable to me as it can be carried out by single person because the unit of measurement is already set up so it has guidance and accuracy.

I believe that you should use parametric approach whenever its possible because it defines project scope and estimates.

I believe that you should use the Bottom-up approach whenever possible because it creates cost estimate this approach can produce more realistic cost estimates than Top-down.

Parametric is the best, it takes away the element of dishonesty and gives room for a transparent and easy to understand budget.

I believe one should use the bottom-up estimates because the people involved in spending the money will likely know the cost of the materials they would be using.

Interesting

Am still finding it difficult to understand Gantt Chart

I think an overlap application of all the three approaches would be efficient. Depending on the kind of project being implemented, whether for social impact or profit-based, an input of all three is required. The parametric approach would be best-fit having set quantifiable parameters to work with. The Bottom-up approach will ensure exclusive involvement of the ground project implementers, and their input can be cross-checked using the Top-down approach where experts or project managers who have implemented similar projects before can provide input.

for me parametric, because its realistic than askimg the individuals and also finding out from other experts who may not have the same ideas as you.

I believe that the three approaches should be used interdependently whenever possible. Top down aside being fast, allows for the opinions of research and experts, bottom up being realistic as it involves the person/people to spend, and parametric approach to filter cost inflation if any.

I believe a holistic approach that would combine all the three approaches discussed above is the best.This is because the estimates are likely to be more accurate which will help to mobilize sufficient finances for the project.

I believe that the bottom-up approach is best. To me, the folks doing the work and the spending have the most realistic idea of spending.

There are three approaches to budget: top-down, bottom-up and parametric. One approach serves better in one situation but may not equally at other. In result, each approach has benefits and limitations. Therefore, it is better to use all approaches according to the demand of time and situation.

For me I think the parametric method would be best option in calculating cost. Bottom to up though would have given a more realistic picture of prices has a high probability of being inflated by the people doing the costing. Parametric method can be utilized, then maybe compared with the bottom up budget.

My opinion is that using the 3 approaches in combine may better for the quality estimating costs, as per my understanding.

In my previous role, I was also tasked with budget management and I adopted the parametric approach. However, I also liaised with the finance and procurement team to develop the budget in newer projects.

for me bottom up approach is the best as the people on the ground know the exact costs

I believe you should use the bottom up approach with the involvement of the senior Management giving guidelines because the project team understand the details of the expenses in reality than most of the top Management

Estematin G duration

In my opinion, I think the parametric approach is the most effective way to generate cost estimates, and you should use it whenever possible because knowing the cost per unit makes it reliably easy to calculate activity costs. This is only difficult to use when the cost per unit of activity is not known.

A better way to estimate cost than this will be a combination of a parametric model with a bottom-up or top-Down approach