Pros and Cons of Bottom-Up Estimate for Project Budgeting

Running head: NO BOTTOM-UP ESTIMATE, NO JOB
No bottom-up estimate, no job
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1No bottom-up estimate, no job
Answer to Question no 1: Pros and Cons of the bottom up estimate
The bottom-up budget estimation has been the kind of budget that tries to indentify the
underpinning expenses of every department of any organization. In other words the costs have been
created according to the WBS or “Work Breakdown Structure”. Then it sums up to retrieve the total
cost of the project. There has been large deployment coverage in the initial phases and quick return
on the investment (Lambin et al., 2013). There has been huge visibility in the changes of
organization. Thus it inserts larger impact to the organization.
The deep assessment of every project tasks, processes and components are performed to
determine the necessities of the items, materials and labors. The applications of the rates of labors,
prices of the materials and requirements overhead changes the estimation into monetary units. The
method to develop the bottom-up estimate with its exactness highly relies upon the information
quality inputs. These are the project schedule, historical information, resource rates, resource
requirements and project scopes.
The bottom up estimation helps in awareness of the business and user. The benefits have
been identified early. One could replace various manual processes with the initial automation. The
implementation of the password management for huge amount of users could be done. There has
been no need to develop the custom adapters at initial phases (Fu et al., 2017). The organization has
been broadening the skills of identity management and understandings in the early phases. The
“Trivoli Identity Manager” has been introduced to the business with lesser intrusion in the
operations.
However, the established organizational structure could be altered in the roll-out phases later.
Due to the quick changes of the repository owners and the population of the users, the roll-out would

2No bottom-up estimate, no job
possess larger influence quickly and need higher cooperation. The strategy has been driven through
the current infrastructure rather than the processes of business.
Regarding its pros the rise in accuracy takes place as the project continues. Extra
information becomes available. It offers a highly granular method to decompose the project. It
delivers connection the detailed planning of the project.
However, regarding the cons, it has been hard to perform earlier in the project devoid of the
detailed available data. It needs high effort and granularity of data. It has been difficult to account
for the non-linear relationships. There has been large variable and assumptions that are subjective
across the team productivity and personnel (Wigman et al., 2015).
The bottom up estimation needs every member of the project team to estimation how long it
would take them to finish a specific assignment, then the supervisor of that venture gathers the
greater part of the individual errand estimations and moves them up in a spreadsheet to get the
general aggregate of hours for that venture. The technique of bottom-up gives the fantasy of early
control and saw precision because of the accessibility of data, for example, headcount and hourly
cost rates (Hasanbeigi et al., 2013). In any case, more often than not before a venture begins there is
insufficient data accessible to truly know how long each undertaking will take and how the general
venture condition will affect each error.
Answer to question number 2: Usage of bottom up estimation:
The bottom up estimation is used to identify the project required jobs. The every task must be
estimated determined in the “Project activity Definition” and WBS. The task dependencies must be
identified. The resources must be identified that are needed to finish every task. There should be
determination as the resources get completed the tasks.