# What is rough order of magnitude estimate in PMP?

## What is rough order of magnitude estimate in PMP?

A Rough Order of Magnitude Estimate (ROM estimate) is an estimation of a project’s level of effort and cost to complete. A ROM estimate takes place very early in a project’s life cycle — during the project selection and approval period and prior to project initiation in most cases.

What is the purpose of the rough order of magnitude cost estimate?

A rough order of magnitude estimate is used to give you a very high level view of potential project costs. Ideally, you’d be able to provide a definitive estimate, carefully created from loads of input from subject matter experts and plenty of research on past projects and their budgets.

What is the most accurate rough order of magnitude ROM )?

Rough Order of Magnitude (ROM) Estimate The PMBOK Guide 4th Edition gives the guidlines that ROMs are -50% to +50% accurate, the PMBOK Guide 5th Edition gives the guidelines that ROMs are -25% to +75% accurate, or potentially even larger.

### What does ROM mean in project management?

Rough Order of Magnitude (ROM) Costs and Detailed Cost Estimates.

How accurate is a rough order of magnitude estimate?

Rough order of magnitude (ROM) refers to an initial estimate of the cost of a project or parts of a project. It has an expected accuracy of -25% to +75% according to the PMBOK (other sources suggest -50% to +50%).

When would you prepare a rough order of magnitude?

A Rough Order of Magnitude estimate, often called ROM Estimate, is the first estimate in the life cycle of a project. Usually it is used for project screening, that is, to decide which among several projects to proceed with. It is also often used to estimate projects prior to funding being approved.

## What is a standard range for a rough order of magnitude estimate?

A Guide to the Project Management Body of Knowledge (PMBOK® Guide) provides the following guidelines: Rough Order of Magnitude Estimate: -25 percent to +75 percent. Budget Estimate: -10 percent to +25 percent. Definitive Estimate: -5 percent to +10 percent.

What does a rough order of magnitude look like?

A rough order of magnitude could look at what a similar project cost in the past. For example, projecting what a new computer system would cost for a multi-location business could be completed by multiplying what one location cost the last time the computers were upgraded times the number of locations.

What are the 5 key characteristics of a project?

A project plan can be considered to have five key characteristics that have to be managed:

• Scope: defines what will be covered in a project.
• Resource: what can be used to meet the scope.
• Time: what tasks are to be undertaken and when.
• Quality: the spread or deviation allowed from a desired standard.

### What are the key characteristics of a project?

The distinctive characteristics of a project are as follows.

• Objectives – Every project is started with some objective or goal viz.
• Single entity – A project is one whole thing.
• Life Span – No project can be ceaseless and indefinite.
• Require funds –
• Life Cycle –
• Team Spirit –
• Risk and Uncertainty –
• Directions –

How to develop a rough order of magnitude estimate?

written by Amiryar Hassib August 20, 2012. A Rough Order of Magnitude Estimate (ROM estimate) is an estimation of a project’s level of effort and cost to complete. A ROM estimate takes place very early in a project’s life cycle — during the project selection and approval period and prior to project initiation in most cases.

When to use a rough offer of magnitude?

The rough offer of magnitude is a ballpark figure that is usually created in very early phases of a project, e.g. during its initiation or even earlier – in the cost-benefit analysis during the project selection process, for instance. Its accuracy range is -25% to +75% according to the current PMBOK (ch. 7.2).

## Which is the least accurate order of magnitude?

Two common estimating types are ROM estimates and definitive estimates. A rough order of magnitude (ROM) estimate is the least accurate estimate. The PMBOK Guide 4th Edition gives the guidlines that ROMs are -50% to +50% accurate, the PMBOK Guide 5th Edition gives the guidelines that ROMs are -25% to +75% accurate, or potentially even larger.

What’s the approximate ROM for the PMP exam?

The various degree of accuracy of estimations mentioned in the PMBOK® Guide and other PMP® Exam Prep books are listed below: Rough Order of Magnitude (ROM) Estimate: within the range of -25% to +75%. Preliminary estimate: within the range of -15% to +50%.