Which technique is best to estimate time and cost for a reengineering project in a company with no prior experience?

The Delphi technique is particularly effective for estimating time and cost for a reengineering project in a company with no prior experience because it relies on gathering insights from a group of experts. This approach fosters an environment where specialists can provide their assessments anonymously, mitigating the influence of any dominant individuals and encouraging open communication of ideas and concerns. As a result, a comprehensive range of knowledge and experience is brought to bear on the estimation process.

In situations where a company lacks historical data or experience—like in this scenario—the Delphi technique's structured approach allows for leveraging external expertise. Experts can draw on their experience from similar projects, providing valuable input that helps build a realistic estimation framework. This collaborative method can yield more accurate and reliable predictions by synthesizing various viewpoints and gaining consensus on expected outcomes.

Other techniques may not be as suitable in this context. Expert judgment might rely heavily on individuals' opinions without the collaborative refinement found in the Delphi approach. Analogous estimating, which bases estimates on the performance of similar past projects, may not be effective given the lack of prior experience within the company. Bottom-up estimating involves detailed breakdowns of tasks and often requires more comprehensive knowledge of the project specifics, which may not be available when starting something new without a strong reference point.