51. PMP | How to estimate project cost with example

Let's learn about the process of project cost estimation in this PMI PMP PMBOK based project management tutorial video along with the ITTO,input,tools,techniques,output.
- project Estimate Costs is the process of developing an approximation of the monetary resources needed to complete project activities.
- The key benefit of this estimate project cost process is that it determines the amount of cost required to complete project work.
- Cost estimates should be reviewed and refined during the course of the project to reflect additional detail as it becomes available and assumptions are tested.
Due the nature of the project, cost estimation is high level at the project initial phase and gets refined as the project progress.
Here are the ITTO,input,tools,techniques,output of project estimate cost with example as per PMP PMBOK-5.
input of this PMP estimate cost process are,
1 Cost management plan
2 Human resource
management plan
3 Scope baseline
4 Project schedule
5 Risk register
6 Enterprise environmental
factors
7 Organizational process
assets

tools and techniques used in project estimate cost process are as follows
1 Expert judgment
2 Analogous estimating
3 Parametric estimating
4 Bottom-up estimating
5 Three-point estimating
6 Reserve analysis
7 Cost of quality
8 Project management
software
9 Vendor bid analysis
10 Group decision-making
techniques

output of PMP project estimate cost process are here
1 Activity cost estimates
2 Basis of estimates
3 Project documents
updates

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