Estimation: A Paradigm Shift towards Dynamic Design‐to‐Cost and Radical Management

Abstract

Accurate estimation is impossible for complex technical projects, but keeping to agreed budgets, and deadlines is achievable by using feedback and change. In other words, rather than trying to improve the initial project estimates, the budgets and deadlines must be set, based on the value of delivery (not the cost), and then iterative re‐engineering of product and process must be used to stay within acceptable resource bounds. Or at least iteration must be used to get most of the expected value delivered, within the acceptable budgets and deadlines. This paper explains the background to this approach and discusses its use providing several examples.