Following on from yesterday’s post, some people have asked me for my actual process of how we estimate.

• Create the product breakdown schedule (PBS) – this is a list of products that you are delivering
• Create the work breakdown schedule (WBS) – this is a set of hierarchical tasks and sub tasks
• List any material costs from the PBS
• List any HR costs from the WBS
• Create a network diagram from the WBS
• Ally the estimating strategies with the project life cycle

It is also very important to document the assumptions that you are making when you are estimating.