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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 They rarely include our PMO group for guidance on costs, so they are often outdated, and do not align, and of course reduced to sell the project to the customer.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 They rarely include our PMO group for guidance on costs, so they are often outdated, and do not align, and of course reduced to sell the project to the customer.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

I agree with you. But this is only the best, provided you know the cost per unit of every activity. So, the first thing is to research the cost per unit of every activity.

For me, it is better to combine the 3 approaches (top down, Bottom up, parametric). This is because one approach may be suitable for some activity, while it may not be suitable for other activities

From my point of view, using a bottom-up approach is better than other options. Using this participatory approach will help boost budget accuracy and accountability. In addition to this, employees active involvement in the budgeting process increases their sense of ownership and motivates them to work hard to realize project goals.

I believe that you should use the Parametic Approach to estimate your Activity Cost because it's easier to calculate using cost per unit multiplied by number of material/product you've generated in your project plan in Work breakdown Structure(WBS)

i believe the approach to estimate the costs will totally depend on the type of the project. If the project entails something where the cost per unit is calculable then the parametric approach will be best but if the cost can't be calculated then a mix up of top to down or bottom to up approach will be useful

Generating cost estimates in project management is a crucial aspect of planning and executing successful projects. Here are some key points to consider:

Scope Definition: Start by clearly defining the project scope. Understand what needs to be done, the project's objectives, and any constraints or assumptions. This forms the foundation for estimating costs accurately.

Work Breakdown Structure (WBS): Create a detailed WBS that breaks down the project into smaller, manageable tasks or work packages. This hierarchical structure helps identify all the components that require resources and cost estimation.

Resource Identification: Identify the resources needed for each task or work package. This includes labor, materials, equipment, and any other necessary inputs. Consider both internal and external resources.

Cost Categories: Categorize costs into direct and indirect categories. Direct costs are directly attributed to specific tasks, while indirect costs (overheads) are incurred for the project as a whole. Don't forget to account for contingencies and reserves for unforeseen events.

Estimation Techniques: Use various estimation techniques, such as expert judgment, historical data analysis, parametric modeling, and three-point estimates (most likely, optimistic, pessimistic), to determine cost values for each resource and task.

Cost Data Sources: Gather cost data from reliable sources, industry benchmarks, supplier quotes, and historical project records. This helps in making accurate cost estimates.

Software Tools: Utilize project management software or dedicated cost estimation tools to streamline the process and perform calculations efficiently. These tools often provide templates and formulas for cost estimation.

Risk Assessment: Assess the potential risks that could impact project costs. Develop a risk management plan to mitigate these risks and include risk-related costs in your estimates.

Documentation: Maintain detailed documentation of your cost estimates, assumptions, and methodologies used. This documentation is essential for project audits and tracking changes.

Review and Validation: Have cost estimates reviewed by relevant stakeholders, including subject matter experts and financial experts, to ensure accuracy and completeness.

Monitoring and Control: Continuously monitor project costs throughout its lifecycle. Compare actual costs to estimated costs and implement corrective actions if there are significant discrepancies.

Communication: Keep stakeholders informed about cost estimates, changes, and financial performance. Transparent communication is essential for managing expectations.

Updates: Regularly update cost estimates as the project progresses and new information becomes available. Adjustments may be necessary due to changes in scope, resource availability, or market conditions.

Summarily, generating cost estimates in project management involves a systematic approach that combines accurate data, effective estimation techniques, and ongoing monitoring. It is a dynamic process that plays a pivotal role in project planning, execution, and overall project success.

I will go with the parametric approach any day,any time. This very approach is not only the most realistic approach but also one that deals decisively with issue of accountability,biases,manipulation, padding,delay and unnecessary bottlenecks.
In this approach,what you see,is what you get. Cost is estimated base on reality with the prices of commodities/goods,services in the market. With this approach money is assigned to specific things with their actual prices and not based on speculations.

This budget approach would would provides project managers with a more accuracy and certainty than the other approaches.

The choice between top-down, bottom-up, and parametric project cost estimation methods depends on project complexity and available data. Top-down estimates are quick but less accurate, while bottom-up offers detailed accuracy but is time-consuming. Parametric estimates use mathematical models for accuracy, but require relevant data and tools. The best approach depends on the project's specifics.

bottom to top approach and parametric approach this is because the bottom to top approach give room for people for a more realistic budget while the parametric helps to give unit cost for transparency in areas where applicable.

I'd rather Bottom up, although time consuming, because the project manger or employee IN charge knows the specific activities and will know how to source for costing. and improvise should need be. This is a great idea especially when the person IN charge has integrity.

The parametric approach trumps the bottom-up or the top-down approach when making cost estimates. parametric estimates is more of a calculation using available parameters and costs that can be be verified based on prevailing price and quantity. The other two can be subjective as employee interest could be factored into the estimates.

In my opinion, combining the three approaches remains the best option. As far as I am concerned, cost estimation is not that complicated since we have been implementing projects in a very specific area for more than 20 years. The only factor that can change certain costs is regulation and inflation.

The most best approach to use in estimating budget will be using the bottom up and parametric approach. Especially I am using a previous project guiding me.The bottom up,the implementers,experienced will help in budgeting. The parametric will assist when I know a unit cost a given amount x $ then y units will cost xy $

PARAMETRIC ESTIMATING IS THE BEST AS IT PUTS IN TO ACCOUNT ALL THE UNIT COST FOR THE PROJECT

Parametric seems to be the best option because calculations are quite accurate.

Je crois bien que l'approche paramétrique est meilleure

yeah, i believed the three approach is suitable for project implementation and it is dependent on the nature of the project

During budgeting, i strongly suggest you use the parametric method if possible because by so doing you will have a more realistic and accurate estimate for your project

yeah, i believed the three approach is suitable for project implementation and it is dependent on the nature of the project

I believe the most effective approach is to combine all of them. For instance, using the top-down approach initially to establish a rough budget and then refining the estimate with a bottom-up or parametric approach as more project details become available can strike a balance between speed and accuracy.

the most efficient way to generate estimated costs is to combine the three approaches, bottom-up, top-down and parametric

As someone who works on consultancy projects in an EU environment, I believe that the most effective approach to generating cost estimates in project management involves a combination of both top-down and bottom-up methodologies. Starting with a top-down approach allows for the quick estimation of major cost elements based on historical data or expert judgment. This initial high-level estimation provides an early indication of the project's financial scope and feasibility. However, to ensure accuracy and granularity, it is crucial to complement this with a detailed bottom-up planning phase. By breaking down the project into smaller components, analysing each in detail, and estimating their costs individually, we can identify potential cost drivers, risks, and opportunities for optimization. This hybrid approach not only provides a realistic baseline for budgeting but also offers the flexibility to adapt as the project progresses and more precise information becomes available. Ultimately, combining top-down and bottom-up techniques maximises the accuracy and reliability of cost estimates while allowing for agility in project management.

I believe that you should use the bottom-up approach whenever possible because it offers the highest precision and accuracy in cost estimation. This approach breaks down a project into its smallest components, allowing for a detailed assessment of costs at the task level. This precision is essential for accurately budgeting complex projects, identifying risks early, ensuring transparency, tracking progress effectively, and customizing the estimate to project-specific requirements. While it can be time-consuming, the bottom-up approach provides the most reliable cost estimates.

In my opinion, I believe that combining the three approaches is good because the limitations of the approaches can be compensated by each other. At the same time, one approach can be used to verify or confirm the other.

Generating cost estimates depends on the nature of markets, products, equipment, and so on. In my opinion, for a company like ours, the parametric cost estimate approach is better since most of the device's price is known.

I think personally that the most effective is the Bottom-up strategy because I think that they often have the most experience. They know how much things actually cost and are aware of hidden cost that you might not be aware of form the top-down. I also think that the parametric can be effective when you using products/ services that way but that they bottom-up still could provide more insight in hidden costs and expensives not taken into account just just cost-per-unit metrics.

I believe that you should use the bottom up cost because it is more realistic and it is better to be late than short of funds

I prefer bottom up apprach in designing budget for the project as it give clear and real costs of activities.

i think that bottom up is the best approach as it is realistic than top down

Parametric approach is the best method for me, b/ce parametric tests is that they are more powerful and precise than other.

I believe that you should use a bottom up approach with a blend of Top down to make the process faster and to increase the accuracy since you will eliminate any kind of fraud that might have occurred if you only used the Bottom up approach

When indicators are met and sustainability is maintained, top-down project management costs rise.
From the bottom up, meeting project deadlines and standards is crucial, as are parametric calculations.

Mostly, in Cambodia, they use top down.

The best way to come up with project budget is to use both of the three methods. This way you get a wider view of the project budgeting!

I believe that you should use the bottom-up approach whenever possible because it offers a highly detailed and accurate cost breakdown.
The bottom-up approach involves breaking the project down into individual work packages or components and estimating the cost for each of them. This level of detail provides a comprehensive understanding of where the project budget is allocated, making it easier to control costs and identify areas that may require adjustments.
While the bottom-up approach may be more time-consuming than top-down or parametric methods, its accuracy and ability to support cost control make it the most effective for complex and critical projects.

I believe top-down is the best way to generate costs because it gives chance to the whole team to come together and set up costs in a professional manner ,I also like the aspect of research because this means the actual costs of items will be looked into hence helping the costs listed to be within budget,top- down also gives each member of the team responsibility to be on the look out of costs and sticking to the budget inorder to manage the resources available.

Parametric is the simplest and easier way to do budgets. In most instances it provides realistic and sometimes almost near accurate costs per unit.

Top bottom and paremetric for possible items

I believe that you should use the Bottom-up of approach whenever possible because this approach can produce more realistic cost estimates

To combine the three approaches top down, bottom up and parametric

Its best to use all approaches, the top-down can be used for things that the managers know the prices of and they are sure, the bottom-up is very good when the managers do not really go into the fields and most operations are run by the other people, parametric is good for things like stationary where you can get a quotation

For me, the most effective way to generate costs would be applying the three approaches because of the different circumstances involved in the different activities. For instance; if i am to estimate the cost of salaries, i may require top-down approach based on the research for the different positions, for activities that require quotations, parametric is effective because unit costs are defined. And for field based activities where we have facilitation costs, these are easily determined by the bottom-up approach due to community dynamics.

i think we must try to use each approaches, the best option will appeared according to data based on reality that got from the information, it is important to for identify if there is something different from every information that we got.