Estimation

Used correctly, estimation can provide a solid foundation for making good decisions throughout a project’s lifecycle. Moreover, it can be an excellent source of critical information for the IT department, CIOs, project managers, VP’s, and others.

Estimation Challenges Without reliable estimates, you will be

challenged to:Forecast productivity and qualityControl costs, meet delivery datesInstill trust with management and peer-

groups

Many factors can influence the outcome of an IT project; two of the most important determinants are upfront planning and estimation. Yet, these are often challenging for many companies. And for good reason; accurately gauging the project’s effort, schedule, cost and resourc e requirements can be difficult.

Underestimating a project can lead to under staffing, under scoping the quality assurance effort, and setting too short a schedule. This negatively impacts staff productivity, product quality, customer relationships and overall credibility.

Statistics constantly point to the challenges surrounding effective planning and estimation - over 66% of projects aren’t delivered on time, on budget or to expected quality. Sobering figures, but looking beyond these facts, what are the symptoms and implications for project managers, leaders, and teams?

Getting Better at Estimation Improve estimation and planning practices:Estimation is critical and requires adequate

timePresent estimates to stakeholders effectivelyLearn how to fully leverage an estimate

A well crafted estimate creates many benefits:alignment between business objectives and

technical estimatesmore informed business decision makingreliable project delivery datesimproved communication between

management and the project teamcontrolled project costs, andsatisfied customers

Top Tips for Estimation Some practical SPC(Software Productivity

Center Inc.) advice you can put to use right away:

Estimation is integral to development & business processes

Your estimation approach should fit your culture

Apply rigor to create sound estimates - don’t rely on instinct!

Integrate estimation into the overall development processThe first step in any improvement strategy is understanding where you are. Map out your current development process and identify the points in this process where estimation reasonably fits to provide maximum benefit.

Design an estimation procedure to fit your cultureA standard estimation procedure is critical to creating reasonable estimates in a repeatable fashion across the organization. Establish a procedure that reflects the value of the estimate it produces.

Mine historical information to tune your estimation capabilityHistorical information from past projects is an important source of data to improve estimation practices for future initiatives.

Apply specific estimation techniquesApplying specific estimation techniques can greatly improve the efficiency of your estimation practices. Understanding where the various techniques fit into the overall process lifecycle and the pros and cons of each is key to identifying those techniques that make up your standard estimation procedure.

Adjusting project scope to available budget and resourcesSuccessful projects are do-able from the outset. Develop a realistic trade-off analysis of project scope versus budget and resources (based on a thorough understanding of the implications of high versus low project estimates.)

Practical project planningA clear project direction and definition can positively impact all stakeholders through improved predictability and repeatability. A practical project plan should address: critical path/schedulingthe work breakdown structureresource leveling, and relationshipsdependencies and assumptions

Estimation Insights Critical thinking and unique observations on

estimation best practices:Fuzzy estimates can only lead to fuzzy project

plans Decisions on spending resources & money

need good estimatesAccurate estimates help deliver software

your business needs

Conclusion:The impact on your estimation and planning

practices will fundamentally change your business for the better.