Project Management Institute (PMI) Professional in Business Analysis Practice Exam

What is a common challenge associated with bottom-up estimation?

1. Misalignment between stakeholders

2. Time consumption in gathering estimates from numerous components

3. Inconsistency between historical data sets

4. Difficulty in securing approval from senior management

The correct answer is: Time consumption in gathering estimates from numerous components

The correct choice highlights a prevalent issue in the bottom-up estimation process, which involves estimating the costs and duration of project tasks based on the detailed assessment of individual components or deliverables. This approach often requires significant effort in collecting and aggregating estimates from various team members or departments. Each component must be analyzed in detail, and this can lead to a considerable amount of time being spent on discussions, clarifications, and iterations to ensure accuracy in the estimates. In contrast to higher-level estimation techniques, such as top-down estimation, where a project manager might set overarching cost and time frames based on overall project goals and experience, bottom-up estimation demands extensive involvement of various stakeholders who are responsible for different parts of the project. As a result, while bottom-up estimation can lead to highly accurate estimates, it can also be a labor-intensive process that slows down overall project timelines if not managed effectively. This aspect directly relates to the time-consuming nature of gathering and synthesizing these estimates. Understanding this common challenge is vital for project managers aiming to balance accuracy in estimates with project timelines and resource availability. By recognizing the implications of bottom-up estimation, managers can better prepare for the resource allocation and time management needed to execute this estimation technique effectively.