Real Examples of Project Estimation Errors and Their Causes

Project Estimation Errors and Their Causes
Student Full Name
Institutional Affiliation
Course Full Title
Instructor Full Title
Due Date
Project Estimation Errors and Their Causes
An estimation error refers to the difference between a predictable value and the true value of a project or plans of a business of a constraint or occasionally a predicted value (Daley, 1984). The following techniques must be followed keenly and accurately; The analogous estimation in which there is the available reference for a similar project, the parametric analysis, which uses independent measured mutable or variable from the given project work; another one is the three-point estimation in which the concepts for mathematics is used, use of what-if analysis where varying factors like scope, resource, time and cost are made as an assumption, the top-down estimation in which the content is detailed and high-level hunks are designed and then disintegrated increasingly into smaller portions. Finally, the bottom-up assessment is used when the data or information generated are in smaller fragments (Deaton, 2010). The essay's main objective is to identify a project with estimation errors, causes of the problem, and then the long-term effect of the errors.
Examples of Project Estimation Errors
In a project estimation procedure, the errors expected from the process or the project estimation errors include the following; making an assumption or ignoring the things that can not rehabilitate, wrong application of contingency and risk, underestimation of the effect of dependences, the unbalancing of resource distribution in the entire project and confusion of goals, targets or aims of the project (Richterich, 1998).
Magnitude and Causes of Estimation Errors
The most common bases of mistakes or errors in a project include environmental, instrumental, human, medication, and procedural (Kirwan, 2002). The error can occur either systematic or random taking their effects on the result into consideration. Errors generated from the instruments or instrumental errors occur when the apparatus in use is inaccurate. In a measurement error, various sources can cause errors that include the response range, specific...