Premium Essay

Micro and Macro Estimates

In: Business and Management

Submitted By ebwige22
Words 496
Pages 2
What are the differences between micro and macro estimating approaches? Under what conditions would you prefer one over the other?

Macro estimates are typically top down, are usually used in the project conceptual phase, and depend on measures such as weight, square feet, ratios. Macro methods do not consider individual activity issues and problems. Macro estimates are good for rough estimates and can help select and prioritize projects. UNCERTAINTY

Micro time and cost estimates are usually tied directly to the WBS and a work package. These estimates are made by people familiar with the task, which helps to gain buy-in on the validity of the estimate. Use of several people should improve the accuracy of the estimate. Micro estimates should be preferred if time to estimate is available, estimating cost is reasonable, and accuracy is important.

Microeconomics is generally the study of individuals and business decisions, macroeconomics looks at higher up country and government decisions. Macroeconomics and microeconomics, and their wide array of underlying concepts, have been the subject of a great deal of writings. The field of study is vast; here is a brief summary of what each covers:

Microeconomics is the study of decisions that people and businesses make regarding the allocation of resources and prices of goods and services. This means also taking into account taxes and regulations created by governments. Microeconomics focuses on supply and demand and other forces that determine the price levels seen in the economy. For example, microeconomics would look at how a specific company could maximize it's production and capacity so it could lower prices and better compete in its industry. (Find out more about microeconomics in Understanding Microeconomics.)

Macroeconomics, on the other hand, is the field of economics that studies the behavior of the...

Similar Documents

Premium Essay

Macro and Micro Estimate

...Macro and micro analysis of labour markets There are two sides to labour economics. Labour economics can generally be seen as the application of microeconomic or macroeconomic techniques to the labour market. Microeconomic techniques study the role of individuals and individual firms in the labour market. Macroeconomic techniques look at the interrelations between the labour market, the goods market, the money market, and the foreign trade market. It looks at how these interactions influence macro variables such as employment levels, participation rates, aggregate income and Gross Domestic Product. The macroeconomics of labour markets The labour force is defined as the number of individuals age 16 and over, excluding those in the military, who are either employed or actively looking for work. The participation rate is the number of people in the labour force divided by the size of the adult civilian noninstitutional population (or by the population of working age that is not institutionalised). The nonlabour force includes those who are not looking for work, those who are institutionalised such as in prisons or psychiatric wards, stay-at home spouses, children, and those serving in the military. The unemployment level is defined as the labour force minus the number of people currently employed. The unemployment rate is defined as the level of unemployment divided by the labour force. The employment rate is defined as the number of people currently employed divided by......

Words: 735 - Pages: 3

Premium Essay

A Strategy Paper

...deliverables Types of Estimates Top-down (macro) estimates: analogy, group consensus, or mathematical relationships Bottom-up (micro) estimates: estimates of elements of the work breakdown structure WHY ESTIMATING TIME AND COST ARE IMPORTANT Estimates are needed to determine how long the project should take and its cost. Estimates are needed to schedule work. Estimates are needed to develop cash flow needs Estimates are needed to develop time-phased budgets and establish the project baseline. Estimates are needed to determine whether the project is worth doing. Estimates are needed to determine how well the project is progressing. Estimates are needed to support good decisions. FACTORS INFLUENCING THE QUALITY OF ESTIMATES Other Factors Other Factors Other ((e.g. e.g. .downtime) ..downtime) downtime) Organization Organization Culture Culture Padding Padding Estimates Estimates Planning Planning Planning Horizon Horizon Horizon Quality of Quality of Quality Estimates Estimates Estimates Project Project Duration Duration Task Task Task Definition Definition Definition People People People productivity productivity productivity Project Project Project Structure and Structure and Organization Organization Organization ESTIMATING GUIDELINES FOR TIMES, COSTS, AND RESOURCES Have people familiar with the tasks make the estimate. Use several people to make estimates. Base estimates on normal......

Words: 1234 - Pages: 5

Premium Essay

Sharp Case Study

...product. The results of this meeting were a set of general technical specifications along with major deliverables, a product launch date, and a cost estimate based on prior experience. Shortly afterward, a meeting was arranged for middle management explaining the project goals, major responsibilities, the project start date, and importance of meeting the product launch date within the cost estimate. Members of all departments involved attended the meeting. Excitement was high. Although everyone saw the risks as high, the promised rewards for the company and the personnel were emblazoned in their minds. A few participants questioned the legitimacy of the project duration and cost estimates. A couple of R&D people were worried about the technology required to produce the high-quality product for less than $200. But given the excitement of the moment, everyone agreed the project was worth doing and doable. The color laser printer project was to have the highest project priority in the company. Lauren was selected to be the project manager. She had 15 years of experience in printer design and manufacture, which included successful management of several projects related to printers for commercial markets. Since she was one of those uncomfortable with the project cost and time estimates, she felt getting good bottom-up time and cost estimates for the deliverables was her first concern. She quickly had a meeting with the significant stakeholders to create a WBS identifying the......

Words: 627 - Pages: 3

Premium Essay

Evolution

...Evidence of Evolution Introduction: Evolution is usually defined as the change over time in one or more inherited traits found in populations of organisms. Inherited traits are particular distinguishing characteristics. Evolution may occur when there is variation of inherited traits within a population. The major sources of such variation are mutation, genetic recombination and gene flow. This process has produced all the diversity of living organisms. Charles Darwin characterized the result as endless forms most beautiful and most wonderful. It has always been debated if there is any evidence of evolution and in what fields, in this report we will give a brief summary concerning: • DNA Evidence of Evolution • Biological Evidence of Evolution DNA Evidence of Evolution: DNA molecules are complex molecules which contain the assembly instructions for every living creature. Certain aspects of DNA have been interpreted as evidence for Darwinian evolution. DNA evidence for evolution includes mutations, genetic similarities among species, so-called “Junk DNA” and “Pseudogenes.” The fact that mutations can corrupt DNA is important for the Darwinian paradigm because in order for an organism to eventually evolve into an entirely different organism, changes must be made to the creature’s genome over time. But Darwinian evolution needs more than just change. It needs an increase in genetic information. Critics point out that genetic mutation does not appear to provide a...

Words: 1011 - Pages: 5

Premium Essay

Survey Mpa

...Case Study #4: Public Budgeting-Death of a Spy Satellite Program Wideline Servius Columbus State University 1) Why does Irene Rubin at the outset argue that "public budgets are not merely technical managerial documents; they are also intrinsically and irreducibly political"? Do you agree or disagree based on your reading of the case "County Prison Overtime" Irene Rubin’ view that public budgets are not merely technical managerial documents and that they are also intrinsically and irreducibly political is because public budgets reflect the choice of government. As a general rule of thumb, government chooses to go along with programs that fit their own political agenda. Programs should reflect a general consensus about what kind or type of services that government should provide to the people. She argued that budgets should reflect priorities. Should government spend money on national defense or on public welfare? or should government spend money on the criminal justice system rather than nuclear power? She also believes that budgets should reflect broader public goals, meaning that legislators ought to listen their constituency and approve more spending to satisfy their needs. She further stated that government should be accountable. People always want to know if government is following their preferences and keep its promises. They also want to know that there isn’t any waste and want to see solid outcome. Irene also thinks that budgets should ensure that taxation is...

Words: 1427 - Pages: 6

Premium Essay

Scope of Managerial Economics

...|VI Learning activity questions: Scope of Managerial Economics | | | | | |1. What is managerial economics all about? | | | |Managerial economics applies economic theory and methods to business and administrative decision making. Managerial economics | |prescribes rules for improving managerial decisions also helps managers recognize how economic forces affect organizations and | |describes the economic consequences of managerial behavior. It links traditional economics with the decision sciences to develop | |vital tools for managerial decision making. Managerial economics identifies ways to efficiently achieve goals. For example, suppose| |a small business seeks rapid growth to reach a size that permits efficient use of national media advertising. Managerial economics | |can be used to identify pricing and production strategies to help meet this short-run objective quickly and effectively. | | ...

Words: 916 - Pages: 4

Premium Essay

Gender Andt Rade

...women, causing disproportionate job losses due to the influx of foreign goods into domestic markets. Others argue that increased trade leads to greater gender equality by creating new jobs and economic growth.In fact, neither side in the debate is totally right, and a nuanced view is needed. Trade integration has translated into more jobs and stronger connections to markets for many women. Indeed, as shown by the World Bank's 2012 World Development Report (WDR 2012), increases in international trade have tended to increase women's employment, not a feature that typifies many development processes. And access to these jobs can empower women in important ways. Introduction: While it is difficult to establish a precise number, surveys estimate that women constitute a large share of informal cross-border trade in southern Africa. More than 70% of cross-border traders betweenMozambiqueandsouthAfricaarewomen. A recent survey in four key border crossings in the Great Lakes region between the Democratic Republic of Congo and Burundi, Rwanda and Uganda found that the majority of traders are young women and experienced traders. These traders face serious risks and losses with each border crossing, including threats and sexual harassment, bribes, fines, confiscation of goods, verbal abuse and insult. Additionally the study finds that 95% of traders want to invest in their business but are constrained by the current border environment and lack of access to finance. Several public......

Words: 1343 - Pages: 6

Premium Essay

Orgnization

...need for control while the project is implemented • Types of Estimates –Top-down (macro) estimates: analogy, group consensus, or mathematical relationships –Bottom-up (micro) estimates: estimates of elements of the work breakdown structure Copyright © 2006 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 5–1 Why Estimating Time and Cost Are Important • Estimates are needed to support good decisions. • Estimates are needed to schedule work. • Estimates are needed to determine how long the project should take and its cost. • Estimates are needed to determine whether the project is worth doing. • Estimates are needed to develop cash flow needs. • Estimates are needed to determine how well the project is progressing. • Estimates are needed to develop time-phased budgets and establish the project baseline. EXHIBIT 5.1 Copyright © 2006 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 5–2 Factors Influencing the Quality of Estimates Planning Horizon Other (Nonproject) Factors Project Duration Organization Culture Quality of Estimates People Padding Estimates Project Structure and Organization Copyright © 2006 The McGraw-Hill Companies. All rights reserved. McGraw-Hill/Irwin 5–3 Estimating Guidelines for Times, Costs, and Resources 1. Have people familiar with the tasks make the estimate. 2. Use several people to make estimates. 3. Base estimates on normal conditions, efficient methods, and a normal level......

Words: 574 - Pages: 3

Premium Essay

Mba Articles

...MITSOB Placement Notice Sr. No. |Company Name |Profile |Spec. |Package |Location |Last Date for CV Submission |Web Site | |1 |MarketsandMarkets |Business Development Executive |Any postgraduate student with (60% and above in 10th , 12th & Graduation) No % criteria for PGDM / MBA |3.00 LPA + Variables 1 LPA (CTC 4 LPA) |Pune |12th December 2013 10.00 a.m. |http://www.marketsandmarkets.com/ | | | |Research Associate | |Fixed 3.20 LPA + Variables 30K (CTC 3.5 LPA) |Pune | | | | Date 11th December 2013 Interested & Eligible students need to send their details in attached excel sheet along with their CV on mitsob.cvsubmission@gmail.com by tomorrow, 12th December 2013, 10.00 a.m. You can contact Prof. Manoj Mehrotra for any query related to this company. NOTE- 1. Those who have earlier attended the selection process but not selected are not allowed to reappear. 2. Students who have earlier attended the PPT of the company but not participated in the selection process can apply for the same. Following are the Job specifications Education: Any postgraduate student with (60% and above in 10th, 12th & Graduation) No % criteria for PGDM / MBA. Experience: Fresher can also apply; experience in any of the domains relating to our research domain is an added advantage The Salary Details are mentioned below   ·         For the Business Development Role –3.00 LPA + Variables 1 LPA (CTC 4 LPA) ·         For Market Research Role- Fixed 3.20 LPA + Variables 30K (CTC 3.5 LPA) For All......

Words: 634 - Pages: 3

Premium Essay

Review

...through interviews by the Centers for Disease Control and Prevention it was found that obesity was directly linked with poor socio economic as well as educational status. Thus contrary to public opinion we find that people from the lower socio-economic strata of society are at more risk of becoming overweight and obese than wealthier individuals. Also many obese individuals are malnutrition. Contrary to popular belief malnutrition comes in two types; macro malnutrition and micro malnutrition. Macro malnutrition is the one which most people know about and in this form a person does not eating enough to support his dietary requirement which leads to a significantly lower than optimal weight, deficiency and other complications associated with malnutrition. On the other hand micro malnutrition is the form of malnutrition in which an individual is not meeting his nutritional requirement (although they might be eating enough or even over eating) and this is because they are eating food with little nutritional value i.e. “empty calories”. Micro nutrition is more prevalent in impoverished people since they have a limited supply of select food items, which eventually leads to weight gain. In my view the above mentioned point is the basis for the trend of poverty related obesity although it is influenced by a web of other reasons which supplement each other and eventually...

Words: 1141 - Pages: 5

Premium Essay

Sales Relationship

...Incorporation will be assisting Kudler Fine Foods in the process of evaluating the opportune times to implement psychographic, demographic, behavioral, and geographic segmentation into their marketing assessments. It is imperative that Kudler Fine Foods realizes the magnitude of demographic and psychographic data and the pertinent information these data’s convey about their current and possible future consumers. MJB Marketing Corporation will devise a positioning strategy for Kudler Fine Foods while contemplating the possible arrays of segmentation to assess the various competitors within the market. During all phases of the project MJB Marketing Incorporation will provide clear concise reasoning’s for the recommendations. Kudler Fine Foods must estimate the demographic characteristics such as age, occupation, gender, income, education, and other like values to properly proceed to expanding their stores. In order to create the best location and store attributes it will be necessary to pinpoint geographic, demographic, psychographic, and behavioral segmentation. These variables must be accounted for to create the ideal marketing mix. Kudler will need to determine the answers to certain questions such as how many homes are rented or owned in the area, what type of transportation will the prospective consumers be utilizing, what is the mean age of the area, what amount of disposable income is available, is the area composed of families or singles primarily, what are the ethnic......

Words: 1425 - Pages: 6

Premium Essay

Chapter5

...Elhousany Abosamra Week 3 homework Chapter (5), exercise (1): a. S = k (YZ)/P = 100(11,000 1200)/20,000 = 66,000 b. S = 100(11,000 1200)/17,500 = 75,429. Sales revenue will rise. c. Obtain time series data on S, Y, Z and P and use regression techniques to estimate k. One way to do this is to use a double log style, as in Log S = log k + log Y + log X – log P. The intercept is log k. To find the anti-log of it, use the exponential, elog k. d. Sales in period t+1 are a function of variables whose values are unknown prior to period t+1. Therefore, before one could estimate St, one would first have also to estimate Yt, Zt, and Pt. Chapter (5), exercise (5): For this problem, the column headed as 5-Year Moving Average is the actual annual figure, and I will forecast 2010 for that column and all the other empty columns. The bold and underscored numbers fill in the table on the next page. Year | 5-year MA | 3-year MA | Ex Smooth | Ex Smooth | Ex Smooth |   | | | W = 1.0 | W = .9 | W= .3 | 2000 | 800 | | | | | 2001 | 925 | | | 800 | 800 | 2002 | 900 | | | 912.50 | 837.50 | 2003 | 1025 | | 900 | 901.25 | 856.25 | 2004 | 1150 | | 1025 | 1012.63 | 906.88 | 2005 | 1160 | 1025 | 1150 | 1136.26 | 979.81 | 2006 | 1200 | 1112 | 1160 | 1157.63 | 1033.87 | 2007 | 1150 | 1170 | 1200 | 1195.76 | 1083.71 | 2008 | 1270 | 1170 | 1150 | 1154.58 | 1103.60 | 2009 | 1290 | 1207 | 1270 | 1258.46 |......

Words: 1021 - Pages: 5

Free Essay

The Effect of Ebola

...The first reported case in the Ebola outbreak ravaging west Africa dates back to December 2013, in Guéckédou, a forested area of Guinea near the border with Liberia and Sierra Leone. Travelers took it across the border: by late March, Liberia had reported eight suspected cases and Sierra Leone six. By the end of June 759 people had been infected and 467 people had died from the disease, making this the worst ever Ebola outbreak. The numbers do not just keep climbing, they are accelerating. As of October 29th, 13,567 cases and 4,951 deaths had been reported worldwide, the vast majority of them in these same three countries. Many suspect these estimates are badly undercooked. Ebola is not just a medical emergency, but an economic one. Sick people cannot work; fear of sickness keeps others from coming to work. Transportation and travel is disrupted. An impact assessment by the World Bank, released on October 8th, estimated the short-term impact of the outbreak on the economies of Guinea, Liberia and Sierra Leone in terms of forgone GDP at $359m. Depending on whether the outbreak is contained quickly or slowly, the damage will continue into next year; under the Bank’s gloomier “High Ebola” scenario, the economic loss to Liberia in 2015 would be the equivalent of 12% of GDP. Liberia has suffered most in the epidemic, which has killed more than 3,800 people and delivered an economic shock to some of Africa's most vulnerable economies. Ebola cases in Liberia and Sierra Leone could...

Words: 524 - Pages: 3

Premium Essay

Personal Statement: Why I Want To Study Economics

...I developed interest in studying Economics the very day I was introduced to the subject in my first year in the secondary school. Although I had the penchant to become a Financial Management Specialist, I realized that I could hardly become a successful one without studying Economics. This underpinned my resolve to combine Economics with Accounting during my undergraduate studies. My exposure to the intermediate level of Economics broadened my reasoning and decision-making skills which further deepened my interest in Economics. I have realized that Economics is important in every aspect of human life and that the study Economics offers a plethora of Vista. As Finance Manager, I employ both micro and macro economic data in taking financial decisions that will be in the best interest of my employers and stakeholders of the firm. For example, I consider economic factors such as inflation, interest and exchange rates and the principle of opportunity cost when performing my financial planning and treasury management functions. Apart from helping an individual to make rational choices, decisions or maximize any resources no matter how small, the study of Economics enables one to evaluate the effect of economic policies on the welfare of citizens. It also helps to evaluate government policies on...

Words: 1216 - Pages: 5

Premium Essay

The Exley Chemical Company

...Problems A. Macro: 1. A competitor is about to patent a new process for the product of polymers. 2. Each division head works on the project that makes the most for them, but it doesn’t necessarily help bring new products to the market. 3. There is a lack of coordination within the company’s operations. 4. The company is experiencing a decrease in sales and profits. 5. There are operational conflicts within the major departments. 6. There is no uniformity of command. B. Micro: 1. The existing structure cannot adequately coordinate complex projects. 2. Sales executives tend to question the sales estimates issued by the product managers. 3. The coordination between marketing and the new product development department is insufficient. 4. The product development division is experiencing problems with the marketing division. 5. The product manager has been unsuccessful in coordinating the activities. 6. The company is having difficulties in producing a team concept within the departments. II. Causes 1. The product development division was given responsibility for market research, but the tasks of sales analysis and forecasting remained in the marketing division. 2. For each separate group of products, a project manager was appointed who was responsible for the coordination of all company activities for the product. 3. Estimates are usually based on the total product market rather than on Exley’s share, which often tends to inflate sales estimates. 4.......

Words: 619 - Pages: 3