Comprehensive Analysis: Bottom-Up Estimate in Project Management

This essay provides a comprehensive analysis of bottom-up estimation in project management, highlighting its pros, cons, and practical applications. It defines bottom-up estimation as a budgeting approach that identifies the underlying expenses of each department within an organization, typically based on the Work Breakdown Structure (WBS). The essay discusses the benefits of this method, such as early deployment coverage, quick return on investment, and high visibility of organizational changes. It also addresses the method's limitations, including the need for detailed data, difficulty in accounting for non-linear relationships, and reliance on subjective assumptions. Furthermore, the essay explains how bottom-up estimation is used to identify project tasks, dependencies, and resource requirements, emphasizing its applicability in both term and cost estimations. It concludes by noting the importance of accuracy and tracking at various levels of project granularity, asserting that while it requires meticulous effort, bottom-up cost assessing is particularly effective for large, multifaceted undertakings where cost control is paramount. Desklib provides a platform to explore more solved assignments.

Running head: NO BOTTOM-UP ESTIMATE, NO JOB
No bottom-up estimate, no job
Name of the student:
Name of the university:
Author Note

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

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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.

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It can be utilized for both term and cost estimations. Any of the three sorts of assessments
can be utilized together with base up evaluating. Base up assessing is utilized as a part of
conjunction with each or any of these. The three estimation sorts are utilized on individual errands,
which are then "moved up" into the general venture (Chan-Lau et al., 2017).
Phases: Many undertakings bunch related errands into stages. The stages speak to gatherings of
errands, and the general venture is a gathering of stages. This is another level of base up estimation
on the grounds that each assignment, stage, and the general venture each have estimation. They are
each "moved up" into the larger amount and speak to the total of the lower level. This is a base up
estimation (Maggioni et al., 2017).
Accuracy: The precision of a base up estimation is the normal of the lower level segments of the
estimation.
Tracking: The base up estimation can be followed on any level. The most detail, and additionally
unpredictability, will exist at the least level. On the flip side of the range, just the whole venture cost
could be followed. This has been the slightest work yet gives up the capacity to discover and settle
issues.
Once the work has been finished and the colleague has been comfortable with it, one can go
ahead to build up the genuine cost and term appraise. That dedication has been reliant on a free and
open arrangement where the colleague feels the estimation has been reasonable and sensible
(Pauliuk, Wang & Müller, 2013). One may utilize the colleague's skeptical, hopeful and best figure
estimations created in the 3 point assessing process. That system enables the assessments to
demonstrate the assignment's vulnerability.

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Extended administrators count their costs upward, beginning at the base and representing
each normal cost. In aggregate, the aggregate expenses ought to square with the completed venture.
It has been a fundamental strategy for assessing, yet the advantage has been that it has been the most
precise methods for evaluating a venture's aggregate cost (Arvis et al., 2016). Precision has been
accomplished right through the way toward beginning at the very establishment of a venture and
working on the way up through each cost on the venture work breakdown structure.
The bottom-up cost assessing on account of its exactness has been best connected in
extensive, multifaceted undertakings. Getting control over expenses and keeping to a financial plan
has been basically imperative in such tasks, and base up assessing enables one to work in simply that
way.

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References:
Arvis, J. F., Duval, Y., Shepherd, B., Utoktham, C., & Raj, A. (2016). Trade Costs in the Developing
World: 1996–2010. World Trade Review, 15(03), 451-474.
Chan-Lau, M. J. A., Miao, W., Miyajima, M. K., & Shin, M. J. (2017). Assessing Corporate
Vulnerabilities in Indonesia: A Bottom-Up Default Analysis. International Monetary Fund.
Fu, M., Kelly, J. A., & Clinch, J. P. (2017). Estimating annual average daily traffic and transport
emissions for a national road network: A bottom-up methodology for both nationally-
aggregated and spatially-disaggregated results. Journal of Transport Geography, 58, 186-
195.
Hasanbeigi, A., Morrow, W., Sathaye, J., Masanet, E., & Xu, T. (2013). A bottom-up model to
estimate the energy efficiency improvement and CO 2 emission reduction potentials in the
Chinese iron and steel industry. Energy, 50, 315-325.
Lambin, E. F., Gibbs, H. K., Ferreira, L., Grau, R., Mayaux, P., Meyfroidt, P., ... & Munger, J.
(2013). Estimating the world's potentially available cropland using a bottom-up
approach. Global Environmental Change, 23(5), 892-901.
Maggioni, V., Massari, C., Brocca, L., & Ciabatta, L. (2017, April). Merging bottom-up and top-
down precipitation products using a stochastic error model. In EGU General Assembly
Conference Abstracts (Vol. 19, p. 12383).
Pauliuk, S., Wang, T., & Müller, D. B. (2013). Steel all over the world: Estimating in-use stocks of
iron for 200 countries. Resources, Conservation and Recycling, 71, 22-30.

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Wigman, J. T. W., van Os, J., Borsboom, D., Wardenaar, K. J., Epskamp, S., Klippel, A., ... &
Wichers, M. (2015). Exploring the underlying structure of mental disorders: cross-diagnostic
differences and similarities from a network perspective using both a top-down and a bottom-
up approach. Psychological medicine, 45(11), 2375-2387.