Managing Complex Projects: Significance of Parametric Estimation

Running head: MANAGING OF THE COMPLEX PROJECT
MANAGING OF THE COMPLEX PROJECT
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1MANAGING OF THE COMPLEX PROJECT
Introduction
The complexity of the project has certain influence on estimation of the cost and
schedule. The parametric estimation is used to evaluate the complexity of different independent
variables. It is a top down process that contains a number of steps for the gathering of the data
and determination of the relationship regarding the estimation of the cost and statistical analysis
(Cooke-Davies, 2013). There are certain application for the estimation of the cost such as historical
trend analysis (HTA) ,business case (BC), economic analysis (EC) and investment appraisals
(IA).
Discussion
The parametric estimation is applicable for the different types of project management. In
parametric estimation the estimation of the cost and budget of the complex project is dependent
on the gathering and analysis of the past historical data (Kerzner, 2017). The design of this
parametric estimation needs the engineering approach. However, this method of estimation is
applicable for estimation in the non engineering project management such as welfare project
management (Head & Alford, 2015). The approach of the estimation is numerical. However, in
the every project the data regarding the estimation of the budget and the schedule is numerical.
In this case, the application of the parametric estimation is applicable in the non engineering
projects as well as engineering project.
In case of non engineering projects the estimation of the budget is done at the initial stage
of the project. In this case the estimation of the budget is done on the basis of the past data and
the statistical analysis of those data. In this case, different types of parametric estimation can be
happened such as cost estimating relationship and schedule estimating relationship. These two