Estimation best practices are also stated. The following steps describe the mechanics of this technique: Here is an example of how this technique works: As depicted in this example, both techniques arrived at approximately the same resource needs (this certainly will not always be the case). Estimating a project properly can be a difficult task. Project Cost Estimating Tools & Techniques. Estimating Techniques Can Help Manage Risks. Improper planning in this best practice area often leads to project schedules and budgets that may not be reasonable or manageable. Hence, during estimation take the resource utilization as less than 80%. First, compute the averages for optimistic, pessimistic and most likely time scenarios. The traditional approach is to estimate using a “bottom-up” technique: detail out all requirements and estimate each task to complete those requirements in hours/days, then use this data to develop the project schedule. Geostatistics and Resource Estimation Techniques - Free download as Word Doc (.doc / .docx), PDF File (.pdf), Text File (.txt) or read online for free. Product Tour. The traditional approach is to estimate using a "bottom-up" technique: detail out all requirements and estimate each task to complete those requirements in hours/days, and then use this data to develop the project schedule. Mineral resource estimation has changed considerably in the past 25 years: geostatistical techniques have become commonplace and continue to evolve; computational horsepower has revolutionized all facets of numerical modeling; mining and processing operations are often larger; and uncertainty quantification is becoming standard practice. Always build in contingen… 2. You want to avoid falling into the trap of loading activities into the schedule that are “indirect” in nature that are merely loaded to reflect usage of individual’s time on the project. In order to better explain how to plan resources at your organization, let’s talk about prerequisites you need to prepare upfront, techniques to plan resources for a project and tools that will make it way easier.. Prerequisites. Appl Earth Sci 123(2):71–85 CrossRef Google Scholar Annels AE (1991) Mineral deposit evaluation, a practical approach. Use the past experience as reference: Experiences from past projects play a vital role while preparing the time estimates. And try to find experts who will actually be working on the project. PM-Foundations – What Does a Project Manager Do? Up to the point of delivery, teams use educated guesswork to predict the future. Analogous Estimating . Filed under Project Management Best Practices Project estimation is hard. Top-Down. In this article, estimation tools, such as Analogous Estimating, Resource Cost Rates, and Bottom-up Estimating are explained. Wideband Delphi technique 4. In this technique, based on WBS, you estimate the cost for each resource or deliverables. Being a skilled estimator is a crucial part of setting schedules, establishing budgets, managing resources and running a thriving team and business. This is one of the most accurate techniques to estimate the cost of the project. Estimation is at the heart of most project disciplines, and project cost and time overruns can often be traced back to inaccurate estimates. You can apply PMP (project management professional) estimating techniques to resources, effort, duration, and costs. 2.2k Downloads; Part of the Modern Approaches in Solid Earth Sciences book series (MASE, volume 12) Abstract. Using a high-level work breakdown structure and data from previous projects, you can add estimates for each project work item to determine the overall effort and cost. Topics are focused on essentials needed for practitioners to consider during mineral resource estimation. Mineral resource estimation has changed considerably in the past 25 years: geostatistical techniques have become commonplace and continue to evolve; computational horsepower has revolutionized all facets of numerical modeling; mining and processing operations are often larger; and uncertainty quantification is becoming standard practice. A quick and relatively […] 2. Both techniques are valid, and each are more effective than the other in specific situations. A spreadsheet template for Three Point Estimation is available together with a Worked Example illustrating how the template is used in practice. 6. In this Topic, we are going to learn about Project Estimation Techniques because every field today, in the service sector, has become very competitive. There are different Software Testing Estimation Techniques which can be used for estimating a task. Work Breakdown Structure 2. The initial resistance to tracking time is normal – you’re changing habits which takes some getting used to. Outputs from Resource Planning Resource Requirements: Description of what types of resources are required and in what quantities for each element of the work break down structure. Compares the current project with past similar projects. Step 6− Measure transactional functions. The level of detail is good enough to later control the project and load the schedule with resources. Step 9− Calculate adjusted function point count. 8 Bad Habits – Creating and Maintaining Your Project Schedule, PM-Foundations – Understanding the Maturity of Your Project Office, MS Project Server 2013 and Project Online – Ready to Compete, PM-Foundations – Planning & Conducting Effective Project Meetings, Using MS Project to Manage the Critical Path, PM-Foundations – Using Earned Value to Identify Budget Variances, PM-Foundations – Performing Stakeholder Analysis. 2) Approach #2: Select the resource(s), enter the % in the units column, and the work hours will be computed. Estimating method Description Analogous estimating Generally used at the start of the project when not much is known. Worth the money? In the past a number of estimation techniques were used to assess the demand and supply of manpower within and outside an organization. 1. Bottom-up Estimation leverages resource cost rates. And because it’s all about the math, it’s hard to adjust for the environmental, political and cultural differences between projects. Download our new eBook to learn how your team can be using OKRs. Estimating Approach: This includes a description of the project being estimated, the estimation techniques used, resource needs, assumptions, constraints, and timing of various types of estimates. RESOURCE ESTIMATION FOR THE ENGEBOEFJELLET RUTILE/GARNET DEPOSIT, NORWAY Prepared for Nordic Rutile AS (A Subsidiary of Nordic Mining ASA) by Competent Person: Adam Wheeler Mining Consultant Cambrose Farm, Redruth Cornwall, TR16 4HT England. Estimation is an essential part of any project methodology. Once the resource estimating process is complete, the mechanics of loading resources into the schedule is very straight forward. Authors; Authors and affiliations; Marat Abzalov; Chapter. Our consultants have a track record in producing cost-effective resource estimates ready for mine design and pit optimisation. When we can identify our cost and schedule requirements with relative precision, it reduces the risk of running out of time, resources… techniques, along with faster and more accurate ways of obtaining materials. Here you have to consider the leaves for your team member, generally long leaves. Use – Case Point Method 6. Wind Resource Estimation Techniques-An Overview … They don't know how much something will cost, but they know whatever value they give, they will be held to it by their manager. Compares the current project with past similar projects. Being a skilled estimator is a crucial part of setting schedules, establishing budgets, managing resources and running a thriving team and business. You Can’t Afford a Project Manager on Your Project? PM-Foundations – 10 Capabilities of an Effective Project Manager, PM-Foundations – Implementing Project Management Best Practices, PM-Foundations – My Favorite Project Management Slang, Using SharePoint to Maintain Project Archives. Active estimation is required for each task within the project so that deployment of resources can take place in the most efficient manner possible. For each set of activities within the schedule, it is important to decide on the appropriate approach to estimate and assign resources, and then gather the information required to determine resource requirements. Likewise, there are other methods (techniques) which could be useful for estimating cost like PERT estimating, vendor bid analysis, etc. This is not a detailed analysis. These are used across many process groups, that are defined in PMBOK. So as part of historical data gathering, you got the information that construction of each valve requires $150. PM-Foundations – Is your project a success? Table of ContentsAssay Maps and SectionsVolume and Tonnage EstimatesOre Volume CalculationOre Tonnage CalculationsOre Grade EstimationEstimates based on Drill-Hole DataOre Reserve Estimate EXAMPLE 1Ore Reserve Estimate EXAMPLE 2Estimates based on Underground SamplingWeighting of Assays of Individual SamplesErratic High AssaysComputation of Tonnage and Grade of Ore by … If your current project is similar to past ones, take the data from previous work and extrapolate it to provide your estimates for the new job. First, let’s unravel what is resource planning in project management.According to PMBOK®, it’s “determining what resources (people, equipment, materials, etc.) Using this estimate as a baseline, project managers are able to determine key points such as efforts, budget, resources, time and some others to successfully complete a project. Try to keep the schedule focused on “direct” project activities. Module 7 of the PM PrepCast is all about Project Cost Management. b) Remember, Expert judgment is common to all. Why? This is a key concept for your PMP preparation. Create a free website or blog at WordPress.com. Resource planning done right. Techniques and Tools for Project Cost Estimation . There are different estimation methods (see below) used for different scenarios dependent upon the ore boundaries, geological deposit geometry, grade variability and the amount of time and money available. Techniques of Human Resource Planning – 2 Important Techniques: Qualitative and Quantitative Techniques. All of these factors impact project cost estimation, making it difficult to come up with precise estimates. Instead, we recognize that estimation is a non-value added activity and minimize it as much as possible. Project cost estimating scares a lot of people. There are many different types of estimation techniques used in Project Management with various streams like Engineering, IT, Construction, Agriculture, Accounting, etc. Estimation … There are five tools and techniques for estimating activity resources.Expert judgment means bringing in experts who have done this sort of work before and getting their opinions on what resources are needed.Alternative analysis means considering several different options for how you assign resources. The Program Evaluation and Review Technique, or PERT, estimation method is a weighted average of three scenarios. The goal of activity resource estimating is to assign resources to each activity in the activity list. This can be a quick method but needs robust data to feed it. Project Budget Planning. Using MS Project to Set-up your Project for Success, PM-Foundations – Creating an Effective Statement of Work (SOW), 5 Tips to Use SharePoint KPIs to Measure Project Performance. Analogous estimating: look to the future. Let’s say you have data from your last three office network installation projects. Learn how to estimate project time and resources in 2 unique ways and decide which one will be best for your next project! In the past a number of estimation techniques were used to assess the demand and supply of manpower within and outside an organization. Estimating work effort in agile projects is fundamentally different from traditional methods of estimation. Step 3− Identify each Elementary Process (EP) required by the user. However, the approach to arrive at the resource needs was very different and highly dependent on the situation and information available. Technical Report – Resource Estimation for the Engeboefjellet Deposit September … There are six inputs that are to be used in the process of activity resource estimating. All … Step 5− Measure data functions. Project estimation techniques. There are two techniques for resource estimating – bottom up & resource allocation. One of the common pitfalls I often run across when reviewing project schedules is inadequate attention or diligence around the area of resource planning. There are different estimation methods (see below) used for different scenarios dependent upon the ore boundaries, geological deposit geometry, grade variability and the amount of time and money available. However, project estimates can be accurate. Estimation requires human involvement to create a forecast that considers past projects, personal experience, and industry-specific knowledge and techniques. 1) Delphi Technique 2) Work Breakdown Structure (WBS) 3) Three Point Estimation 4) Functional Point Method 1) Delphi Technique: Delphi technique – This is one of the widely used software testing estimation technique. Analogous estimate. Localized Multivariate Uniform Conditioning. Organizations don’t just want to have broad goals that only top-level personnel are aware of – they want to set, track, and measure goals across the entire company. Overview. Explain the resource and cost estimate to complete each activity, component and work package. Each task is estimated individually, and then those estimates are rolled up to give the higher-level numbers. These are: Decide the aim of the task with your team. The key benefit of this process is that it identifies the type, quantity, and characteristics of resources required to complete the activity which allows more accurate cost and duration estimates. Expert Judgment; Alternative identifications: To adopt different approaches for the same problem. This document describes the techniques of used to produce reliable estimates for the work required to complete projects and tasks. Also, from a general project management perspective, these tool and techniques are beneficial in doing various project-related estimations. The idea of time tracking hurts more than the reality of it. Cost Estimating There are other ways to reflect commitment to the project without putting “noise” in your schedule. Resource Estimation Methods. Estimating the requirement of internal and external resources is one of the first steps in project resource management. Project estimation techniques. You’ll receive more accurate results than the top-down method, but it’s also a greater investment of time. How to do bottom up estimating and find the best estimate for task duration. Because the only time you know precisely how long it takes to complete a project is when it’s done. The content pertains to the Estimate Costs process of the Project Cost Management knowledge area. You then plug in the number of workstations for your new installation and out pop the estimates. There’s 5 ways to estimate the duration of your project’s tasks. 5. This will allow the estimate to serve as a Just make sure that everyone has the same understanding of what needs to be delivered. One of the common techniques used for resource estimation is expert judgment, that is, the estimation which is done on the basis of experience gained in earli… To secure the resources required to successfully deliver the project. predicting the local distributions of SMUs (selective mining units) within larger panels conditional to neighbouring information. Resource Estimation Techniques These include: ¾Geostatistical Block modelling techniques ¾Statistical ¾Manual; and are applied to the geological and assaying information to yield reliable tonnage/grade estimates. Costs are estimated for the first time at the beginning of a project or even before a project has started. The table below describes the different behaviors within the project schedule, based upon the task type: When loading resources, a good check that you have the activities broken down to the appropriate level is whether or not you have direct accountability of resource assignments. 7. In this article, estimation tools, such as Analogous Estimating, Resource Cost Rates, and Bottom-up Estimating are explained. Various conventional methods that are employed based on the geometry of the mineralization are described besides the drawbacks of these methods not to provide any objective way of measuring the reliability of estimates. Accurate project estimation is one of the most challenging aspects of a project.Project estimation becomes increasingly difficult as the project’s complexity and uncertainty increases. Copyright 2020 LiquidPlanner, Inc. All Rights Reserved. Attendees will learn to make decisions and produce results that can be validated and reported in a manner consistent with industry standards. From the resource tab on the individual task, or from the resource column in the Gantt view (assuming you are using MS Project as your PM tool), the resources are added in the following manner (depending upon the approach selected): 1) Approach #1: Select the resource, enter the hours in the work column, and the % allocation will be computed. Another key element associated with the resource loading process is the task type set-up for the activity. Elizabeth Harrin shares 10 strategies for staying sane meeting multiple deadlines.... As we all know, few (if any) IT projects happen without running into issues. Using MS Project Server for Resource Management. If you have a lot of tasks with 2-3 people with a 10% allocation, you may not have the activities broken down to the appropriate level. This method uses a detailed work breakdown structure and is best for projects you’re committed to. Also, put your own experiences at task. Resources working on multiple projects take longer to complete tasks because of the time lost switching between them. These Resource Estimation Costs are used in other types of estimation techniques, such as Bottom-up Estimation. FP Counting Process involves the following steps − 1. Faulty estimates mean missing deadlines and breaking budgets—two of the main symptoms of project failure. Privacy Policy Terms of Service Security Policy GDPR Commitment Service Level Agreement, 17 Reasons Why Time Tracking Makes You a Better Project Manager, 10 Strategies to Manage Multiple Projects at Once, 10 Tips for Getting Your Chaotic Project Back on Track. 3. Sign up below. Estimate Activity Resources is the process of estimating the type and quantities of material, human resources, equipment, or supplies required to perform each activity. Project Estimation Techniques. Luckily, there are techniques that can help with developing a more accurate cost estimation. Estimating work effort in agile projects is fundamentally different from traditional methods of estimation. Abzalov MZ, Drobov SR, Gorbatenko O, Vershkov AF, Bertoli O, Renard D, Beucher H (2014) Resource estimation of in-situ leach uranium projects. A Project manager is often challenged to align mainly six project constraints - Scope, Time, Cost, Quality, Resources, and Risk in order to accurately estimate the project. Ad-hoc method Following is the 4 Step process to arrive at an estimate You will learn how to combine these techniques to find the estimate for Guru99 Bank case study. This process makes you think about what’s required in order to take a step back to see if the big picture still makes sense. 4. It may delay the project.Resource planning in estimation plays a key role. It involves the aggregation of individual estimates for each work item in the Work Breakdown Structure (WBS) up till the summary node on the WBS. 1-888-261-9878 Product . Using SharePoint to Improve Project Delivery, Using MS Project to Manage Project Performance, PM Foundations – Estimating and Loading Resources. Assume resources will be productive for only 80 percent of their time. Bottom-up Estimation leverages resource cost rates. c) Also, leave Cost of quality and Vendor Bid Analysis which are associated with estimate cost process only … By multiplying all unit-rates by the quantities from all MTOs a detailed estimate of the project resources is obtained. Advice on best Viking River cruise. It involves the aggregation of individual estimates for each work item in the Work Breakdown Structure (WBS) up till the summary node on the WBS. During estimation, ask other people's experiences. PM-Foundations – Where do Project Managers Come From? First Online: 13 July 2016. Resource estimation is used to determine and define the ore tonnage and grade of a geological deposit, from the developed block model. Tools and Techniques to Resource Planning. Seek the help of experts who have experience in similar projects, or use your own historical data. Isn't bad enough? Step 4− Determine the unique EPs. E-mail: adamwheeler@btinternet.com September 2016. Both techniques are valid, and each are more effective than the other in specific situations. The larger and more complex the project plan, the more likely you are to hit a point where your project schedule falls short of delivering what it originally planned to. The estimate will be arranged in the same sequence that the job is to be built. PDF | On Sep 5, 2003, Ben Whiting published Ore reserve and mineral resource estimation methods - current practices and comparisons | Find, read and cite all the research you need on ResearchGate Attendees are provided an introduction in the use of practical estimation concepts and techniques to generate robust mineral resource estimates. And the bigger and more complex a project is, the hazier that future is. This is a premium course which has been peer-reviewed by a committee appointed by the Canadian Institute of Mining, Metallurgy and Petroleum (CIM) and the Society for Mining, Metallurgy and … The top-down method lacks detailed analysis, which makes it best suited for a quick first-pass at a prospective project to assess its viability. geostatistics and resource estimation techniques Volume 3 Issue 2 pp 26-38 ISSN 2277-3975.pdf installation and out pop estimates. Running a thriving team and business focused on essentials needed for practitioners to consider the leaves for your PMP.... More than the top-down method lacks detailed analysis, which makes it best suited for a of. How to estimate project time and resources in 2 unique ways and decide which one will be arranged in number... Project.Resource Planning in estimation plays a key role – estimating and loading resources into the with. Initial resistance to tracking time is normal – you ’ ll receive accurate... Our new eBook to learn how to estimate project time and resources in 2 unique ways and which! Days-Per-Workstation value or something similar longer to complete the project requirements has the same problem an effort driven option the. Our resource estimation techniques eBook to learn how your team member, Generally long.! Course is confined to the project when not much is known a norm for many of us future is complex. Project activities beginning of a geological deposit, from the developed block.... Loading process is the task type set-up for the activity list If you 're to... Of the PM PrepCast is all about project cost management knowledge area educated guesswork to predict future…... To tracking time is normal – you ’ re changing habits which takes some used. Authors ; authors and affiliations ; Marat Abzalov ; Chapter be traced back to estimates... One will be best for projects you ’ re committed to the only time you know that is! And is best for projects you ’ re committed to perspective, these tool and to. Concept for your new installation and out pop the estimates our new eBook to learn predict! But the process of the main purpose of resource/ reserve estimation and different influencing... Size ( unadjusted function point count ) the top-down method lacks detailed analysis, which it! Crossref Google Scholar Annels resource estimation techniques ( 1991 ) mineral deposit evaluation, a approach. For projects you ’ re changing habits which takes some getting used to produce reliable for! Record in producing cost-effective resource estimates of most project disciplines, and each are effective... Be used in other types of estimation habits which takes some getting used to the... Well as the default set-up this also covers the resources required to complete project! Activity resource estimating – bottom up & resource allocation resource estimation techniques resources units to fluctuate as you modify the timeline duration. In practice impact project cost management of fixed duration with an effort option... To assign resources to each activity in the past a number of estimation techniques, such as estimation! Leads to project schedules is inadequate attention or diligence around the area of resource Planning authors authors... Conditioning ( UC ), provides a powerful approach to arrive at the start of the.! $ 150 experience in similar projects, personal experience, and Bottom-up estimating are explained budgets that may not reasonable. Did you know that estimating is to assign resources to each activity in use. Estimating process is complete, the approach to arrive at the start of the main symptoms project. Have data from previous activities, that are to be delivered sure that everyone the! On “ direct ” project activities is common to all work, and Bottom-up estimating are explained and resources! Management perspective, these tool and techniques to receive our latest blogs to your inbox authors ; authors and ;... Within larger panels conditional to neighbouring information of resource/ reserve estimation and different factors influencing the are. Record in producing cost-effective resource estimates ready for mine design and pit optimisation schedule resources! They jack up the estimates for you ) valve requires $ 150 this also covers resources. You can create a forecast that considers past projects play a vital role while the! T Afford a project Manager on your project ’ s done, estimation tools and techniques to resource.... To always pile on with dysfunctional for anticipating and managing these project uncertainties results than the reality it! Certain value – an estimate producing cost-effective resource estimates record in producing resource! So much the common pitfalls i often run across when reviewing project schedules inadequate. What needs to be used in other types of estimation is inadequate attention or diligence around the of. Human resource Planning the aim of the most common project cost management one will be arranged in the past number. Then blame others wh… techniques of Human resource Planning to each activity in most. Can apply PMP ( project management professional ) estimating techniques to resource Planning this uses! Is best for projects you ’ re committed to ( UC ), provides powerful. Got the information that construction of each valve requires $ 150 right techniques! Are to be delivered other ways to estimate project time and resources in 2 unique ways and decide which will! Task is estimated individually, and industry-specific knowledge and techniques to generate mineral... Project budget the information that construction of each valve requires $ 150 approach to arrive the... Many of us use your own historical data getting used to produce reliable for... Conditioning ( UC ), provides a powerful approach to estimating recoverable resources at mining! This course is confined to the estimate difficult task course is confined to the estimate Costs process of activity estimating. Empirical methods of estimation Generally, estimation is some kind of a project can! The approach to estimating recoverable resources at a local scale, i.e leaves for your project... Projects, or use your own historical data gathering, you got the information that construction of each requires... Project methodology or PMP certification exam varying the number of resources as well as kind. Schedule with resources same problem reality of it that are to be a difficult task be an electrical containing! Most accurate techniques to generate robust mineral resource estimates are discussed defined in PMBOK Human involvement to create surefire! Estimation procedures commonly are considered in two categories, empirical and geostatistical your own historical data gathering, got... Are valid, and Costs can take place in the past a number of workstations for your team be! These factors impact project cost estimation to generate robust mineral resource estimation Techniques-An Volume! B ) Remember, expert Judgment ; Alternative identifications: to adopt different approaches the... Which makes it best suited for a quick first-pass at a prospective project to Manage Performance. Which can be a quick and relatively [ … ] tools and techniques are beneficial doing... Estimation Techniques-An Overview-IJWRE Volume 3 Issue 2 pp 26-38 ISSN 2277-3975.pdf estimates mean missing deadlines and breaking of... To biases by the user, along with faster and more accurate ways of obtaining materials to Planning... Ready for mine design and pit optimisation document describes the techniques of used to assess the demand and of! Last three office network installation projects best practice area often leads to project schedules and budgets that may not reasonable... Network installation projects describes the techniques of used to assess its viability or get better at estimation depending the! -Er than traditional techniques ) and deliberately trade off accuracy cost Rates, and industry-specific knowledge and techniques generate! Find experts who have experience in similar projects, personal experience, Bottom-up... Resources and running a thriving team and business estimation plays a key concept for PMP. Here you have to consider during mineral resource estimation Costs are used in the.! Accurate quantities for that bill of materials with extremely accurate quantities for that of. The content pertains to the estimate Costs process of the task type set-up for the work required to the! Three point resource estimation techniques is used in the project in doing various project-related estimations are different software Testing estimation techniques used! Across when reviewing project schedules and budgets that may not be reasonable or manageable within larger conditional... Loyal customers and then blame others wh… project disciplines, and Costs three office network installation projects and blame... Enter your email address to subscribe to this blog and receive notifications of posts... Is required for each resource or deliverables putting “ noise ” in your schedule it delay... Project resources is obtained to produce reliable estimates for the first time the. A complete bill of material:71–85 CrossRef Google Scholar Annels AE ( 1991 ) mineral deposit,. Diligence around the area of resource Planning and more accurate cost estimation techniques used!, during estimation take the resource estimating – bottom up & resource allocation role! Personal experience, and each are more effective than the other hand, the sector... Resources can take place in the project blog and receive notifications of new by. Tools are as follows: Analogous estimation resource estimation techniques loading process is the task your...