What Is an Estimate? (continued)
To summarize, an estimate is:
- An assessment of the likely quantitative result
- Usually applied to project cost factors and the schedule
- Used with an indication of accuracy (for example, + n%)
- Usually used with a modifier (for example, preliminary, conceptual, feasibility, or final)
- Completed at a level that is appropriate for the decisions being made with the data (for example, close-in estimates are more detailed than estimates for periods three to six months in the future)
However, an estimate is not:
- An accounting or marketing strategy
- A pricing approach, because the price might or might not accurately reflect the estimate
- An investment approach, because it is not worth taking a risk today to get business later
- A way to ensure sponsor satisfaction, such as arbitrarily reducing your estimate to meet some implied number (You must present reality)
- Software or tools
- Finding the fastest way. (The schedule should not unduly influence the estimate be realistic and honest.)