Be it a small business or an enterprise; project estimation is not child’s play. If you need to build one, you will need to understand processes, deliverables, tasks, and your team like the back of your hand.
An online estimate maker can help you assess the cost, resources, and time needed to deliver a project. The process of estimation is initiated during project planning and is done keeping in mind factors like scope, deadlines, and risks.
Why Is Cost and Time Estimation Important in Project Management?
Now, why do we need cost and time estimation for project management and a tool to make that. First, online project estimation software is needed to get your stakeholders in agreement and set your organization for success.
Here is what you need to do for making the perfect project estimates.
1. Understand Your Team’s Roles and Responsibilities
Using numbers to evaluate projects is one thing. But, not focussing on people is a recipe for disaster. Good estimates are built on long-term relations. The more you know about someone’s working style, the easier it is to get tasks sorted.
For this, you will need to have a solid understanding of your team’s strengths and projects. Then, make your team a part of the planning process and see what can be done to avoid issues down the road. Also, be clear on the things you don’t know. While it may sound like a bruise to the boss in you, understand it is completely ok.
2. Understand PM Processes of Your Organization
Now that you have an idea about your team, the next step is to understand how work is done in your organization. For example, you might be working with a company that works the Agile or waterfall methods. To work these methods with ease, you will need to develop an understanding of your dependencies.
Also, if your organization uses a hybrid approach, make it a point to understand how things are done and how they will impact your project schedule. One of the most important things is to have conversations with people who have a stake in your project.
Make sure there is no confusion and you clarify your doubts from time to time about how things are done. The better understanding you have, the easier it will be to collaborate with your team and clients and find ways to estimate projects with your online project estimation software and save on effort.
Also, keep your team involved in all discussions, as it is simply not worth signing up for a project your team isn’t invested in.
3. Develop an Understanding of Trends
A job in project management means you will always need to keep up with trends and happenings in your industry. While it is not easy, it will surely impact your career as a project manager.
If you treat your job like continued education, read blogs and trade publications, and attend networking events, you will drastically shift your project management skills.
4. Get Access to Historical Data with Online Estimate Maker
Historical data is one of the hidden gems you will need for project estimation. When you have your old projects documented, you can analyze information and create better estimates.
One thing you must do is to ask your team to track their tasks. Thus, you will have a better sense of your project. It is not about micromanaging them but about getting the job done while maintaining transparency.
While every project is unique, online project estimation software will help you make the process far smoother. If nothing major, you will develop an understanding of how to estimate project costs and hours. Make sure not to underestimate any task and create issues if budgets and timelines go haywire.
5. Make A List of Detailed Questions
Time, cost, and scope. If these three things are managed properly, your project is a hit. But, for that, you will need to ask questions to understand the time and budget more accurately. Some of the questions include:
- Define the goal of your project
- What is project success for you?
- Who will be communicating from the client’s side?
- What are the services required for the project?
- What’s the approved budget?
- Are there any tools involved? If yes, what are the tools?
- Does the client-side have a subject matter expert?
- When should the project be submitted? Will there be any extensions?
- What will post-sales support be required by the client?
6. Have A Clear Work Breakdown Structure
Having your project broken into smaller components will help you analyze projects on a granular level and assign work accordingly. If you can map all components and estimate each element, you will have a solid project estimate.
The first step is to break your projects into phases and tasks. Once you have the basic framework for cost estimation, you will have more control over the project. The next step is to apply a time estimate to each component in your WBS. Be it weeks, hours, or days, having a structure will help you understand if your estimate will be covered in the budget or not.
Besides, it will also help you negotiate on scope and projects. If the client comes back and says that your project estimate is more, you can always check back your structure to scale back. This will help you create estimates as per fixed budgets and also work on project requirements with ease.
Assign Hourly Estimates
Using these techniques will help you lay a solid foundation for your project and make the best plans. Besides, you will be able to calculate your work breakdown structure and make sure efforts are not wasted.
All you will need to do is list out tasks and add the hours. If you have organized your project into phases, you will automatically get the estimated time for each task with your online estimate maker. Once this is done, you can assign them tasks, and your team can make a schedule accordingly.
Capacity Estimation To Rescue
At the end, please remember that it comes down to the fact that if you have enough people and the right skills to complete the tasks.
One of the biggest issues even the best project managers continue to face is whether their team can actually deliver a project or not. This is nothing but an outcome of inadequate capacity planning. Getting this right can solve half of your project woes and set you on the path to success.
There will be times when you will need to delay or even cancel projects in the pipelines as you don’t have sufficient resources to get them done. Even if choose to seek outside help, you will need to train them, make sure they align with your project needs
and then take care of the timelines too.
Are you sensing a pattern?
So, before you begin any planning, make it a habit to have the right number of people and ample time in hand to get the project done. The projects which are successful were developed by people who knew how to get stuff done, even with the most adverse consequences.
Wrapping up
So, this is how you can make comprehensive project estimates using online project estimation software. Not only will these estimates help you get clear insights on project management, but they will also help you understand which clients you want to work with. So, if you are still looking for the perfect online invoice maker, let us help you find one.
