Department of Business Management

Institut Teknologi Sepuluh Nopember

(Manajemen Proyek TB 141207)

5th week course material:

Estimating Time and Cost

Dr. Yani Rahmawati

yanirahmawati@mb.its.ac.id
Estimating Guidelines
Seven guidelines to
develop useful work
package estimate
1. Responsibility
2. Use several people to
estimate
3. Normal Condition
4. Time Units
5. Independence
6. Contingencies
7. Risk Assessment
Estimates should be made by the person most
familiar with the task, with purpose to get the
project done on time & on budget.
Usually first line supervisor/technicians.
The estimates will be given based on experiences
and best judgment.
Asking advise & give the responsibility to estimate
work packages to these people will directly make
them have responsibility and have feeling that their
roles are needed to get the project done.
This approach will eliminate failures of project
success.
YaniRahmawati / MB-ITS / MP / 2017
Estimating Guidelines
Seven guidelines to Several heads are better than one.
develop useful work Good estimates can be achieved by involving
package estimate several people, in which the estimates are build by
1. Responsibility lots of experts.
2. Use several people to Building estimates by involving one person will lead
estimate and tend to bias and errors.
3. Normal Condition
4. Time Units
5. Independence
6. Contingencies
7. Risk Assessment

YaniRahmawati / MB-ITS / MP / 2017

Estimating Guidelines
Seven guidelines to Estimates should be based on NORMAL CONDITIONS,
develop useful work efficient methods, and normal level of resources.
package estimate
1. Responsibility Ex:
2. Use several people to Estimate time & cost in
This data is used in
estimate preparing catering for
estimating the duration
wedding ceremony
3. Normal Condition and cost for work package.
project
If the project manager
4. Time Units Producing 1000 meals
want to fasten it, it will be
usually (normally) takes 12
5. Independence done on the resource
hours, and it also cost IDR
scheduling.
6. Contingencies 50 million including
materials and 100
7. Risk Assessment employees.

YaniRahmawati / MB-ITS / MP / 2017

Estimating Guidelines
Seven guidelines to Determine the time unit that is used for standard.
develop useful work The determination of time unit will be useful for
package estimate network analysis.
1. Responsibility All task time estimates need consistent time units.
2. Use several people to The time unit can be hour, minute, day, week, shift,
estimate etc. Project only need one type of time unit.
3. Normal Condition Ex1. The surgery (operation) project have to use
4. Time Units minute as time unit, since it related with patients
life.
5. Independence
Ex2. The project of 5 hotel building construction
6. Contingencies using day as time units.
7. Risk Assessment

YaniRahmawati / MB-ITS / MP / 2017

Estimating Guidelines
Seven guidelines to Every task/activities in WBS has to be treated
develop useful work independently, particularly in estimating the time
package estimate (duration).
1. Responsibility Every tasks should be estimated individually, one by
2. Use several people to one, although there are some tasks/activities that are
estimate planned to be done by similar department. This
approach is essential to keep the planner/supervisor
3. Normal Condition to estimate each tasks as the way it is, not as the
4. Time Units whole process.
5. Independence
6. Contingencies
7. Risk Assessment

YaniRahmawati / MB-ITS / MP / 2017

Estimating Guidelines
Seven guidelines to Work packages estimates should not include
develop useful work allowances for contingencies.
package estimate The estimates should assume normal or average
1. Responsibility conditions.
2. Use several people to Extra fund is essential for contingencies that can be
estimate used to cover unforeseen events.
3. Normal Condition
4. Time Units
5. Independence
6. Contingencies
7. Risk Assessment

YaniRahmawati / MB-ITS / MP / 2017

Estimating Guidelines
Seven guidelines to Identify any risk that may be appear during the
develop useful work implementation.
package estimate Risk: economic situation, the material/workforce
1. Responsibility availability, material deliveries, etc.
2. Use several people to Risk causes extra time and cost. By identifying the
estimate risk, planners can add extra time & cost in their
3. Normal Condition estimation.
4. Time Units
5. Independence
6. Contingencies
7. Risk Assessment

YaniRahmawati / MB-ITS / MP / 2017

Methods for Estimating
Top-Down Approaches
Bottom-Up Approaches

YaniRahmawati / MB-ITS / MP / 2017

References
Larson, E.W., and Gray, C.F., (2014), Project Management: The Managerial
Process, 6th Ed., New York: McGraw-Hill Education.
Kerzner, H., (2009), Project Management: A System Approach to Planning,
Scheduling, and Controlling, 10th Ed., New Jersey: John Wiley & Sons.
Project Management Institute (PMI) Standard Committee, (2013), A Guide to
the Project Management Body of Knowledge (PMBOK), 5th Ed., PMI.

YaniRahmawati / MB-ITS / MP / 2017