Cost Estimation for Projects: How to Estimate Accurately

ProjectManager.com

Good cost estimation is essential for keeping a project under budget. Many costs can appear over the life cycle of a project, and an accurate estimation method can be the difference between a successful plan and a failed one. Estimation, however, is easier said than done.

How to Keep Your Projects On-Time and On-Budget

Arras People

And now more than ever, projects that are over budget, behind schedule or are not delivering the value originally promised are in jeopardy of being cancelled. companies and government agencies an estimated $145 billion per year!

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Software Estimating Resources

Herding Cats

This blog page is dedicated to the resources used to estimate software-intensive systems using traditional and agile development methods. COSMIC Software Estimation Approach,” Alain Abran, ICEAA Workshop, Portland Oregon, June 6?9, Estimating Probable System Cost,” Stephen A.

Estimates, Forecasts, Projections

Herding Cats

Estimates. An Estimate is a value inferred for a population of values based on data collected from a sample of data from that population. The estimate can also be produced parametrically or through a simulation (Monte Carlo is common, but Method of Moments is another we use). . Estimates can be about the past, present, or future. We can estimate the number of clams in the Pleistocene era that are in the shale formations near our house. Estimate to Complete.

How to Talk About Estimates

Herding Cats

What is an estimate? An estimate as a noun is an approximate calculation or judgment of the value, number, quantity, or extent of something. An estimate as a verb is to roughly calculate or judge the value, number, quantity, or extent of. Estimates.

Project Governance: Establishing an Effective Steering Committee

Strategy Execution | PMO Perspectives

Within the project management community, the concept of governance is seen as a fundamental project control, which is easy to grasp in principle. Getting the governance piece right requires insight and at times a few honest conversations about roles and responsibilities.

Reasons to Estimate and Measure

Herding Cats

Estimating Software-Intensive Systems: Project, Products, and Processes , Richard D. Stutzke is a starting point for estimating software projects. I recommend it for anyone starting out in the estimating business all the way to seasoned veterans. Reasons to Estimate and Measure

Lean Portfolio Management: Lean Budgets and Investment Funding

Planview

Funding practices—that is, the way budgets are allocated throughout the organization—dictate nearly every business outcome. This is where Lean budgeting comes in. In traditional organizations, funding decisions are project-based, meaning budget is allocated on a per-project basis.

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4 Fallacious Reasons to Estimate and Why Those Are Fallacious

Herding Cats

There's a recent post titled Four Fallacious Reasons to Estimate. It lists the usual suspects for why those spending the money think they don't have to estimate how much they plan to spend when they'll be done producing the value they've been assigned to produce for that expenditure.

GAO Cost Estimating and Assessment Guide Applied to Agile

Herding Cats

The GAO Cost Estimating and Assessment Guide has 12 steps. You're late and over budget before you start, and have lowered the probability of technical success. These describe the increasing maturity of the project's artifacts. There are not specific to Agile Software Development.

When to Estimate and When Estimates aren't Needed

Herding Cats

Paul Boos has a post about estimating and makes a case for the Principles of when NOT to estimate. This struck a cord around a bigger topic - the inversion of estimating. When should we NOT estimate? What business decision making conditions could be in place where we don't have to estimate the outcomes of our decision in the presence of uncertainty? Then on to the original conjecture for No Estimates from Paul's post. Not principles for NOT estimating.

7 Realistic Ways to Up Your Project Budget Management Skills

Function Point

7 Realistic Ways to Up Your Project Budget Management Skills. Having strong project budget management skills is crucial to the success of any agency. Getting to know your project stakeholders’ needs and goals is the foundation for strong budget management.

Project Cost Management – The Essential Things to Know and Do

Online PM Courses

But there’s little your project sponsor, your client, or their Finance Director care about more than your budget and how closely you can stick to it. What is not negotiable is the budget. The governance considerations for project cost management. Determine Budget.

7 Realistic Ways to Up Your Project Budget Management Skills

Function Point

7 Realistic Ways to Up Your Project Budget Management Skills. Having strong project budget management skills is crucial to the success of any agency. Getting to know your project stakeholders’ needs and goals is the foundation for strong budget management.

Project Failure – Why it Happens

Online PM Courses

– 2 – Governance. Governance is hardly the most sexy of project management disciplines. Good governance is a cornerstone of project success, so poor governance inevitably leads to project failure. Lack of Governance Structure. Poor Estimating.

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Scheduling and Cost Control in a Complex Environment

Strategy Execution | PMO Perspectives

The recent UK Government’s enquiry into the management of major projects was cut short by world events, but the interim report and oral evidence make for interesting reading. [1] And of course, for our projects and our organisations, we don’t have Governments to bail us out.

Impacts of traditional project funding models on agile delivery

Kiron Bondale

The challenge with all of these funding approaches is that they are based on an estimated cost of a project rather than the funding we wish to allocate to a product, capability or service. This is true, but how do we know how much to budget up-front to be confident in meeting business needs?

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Compendium of Works to Increase Probability of Project Success

Herding Cats

Governance (#Governance). Six Business System Rule - defines the assessment of the integrated business systems for Federal procurement and their integrity in providing information to the Government contracting office. . Governance.

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Project Versus Product in Agile Development

Herding Cats

If the development work has no deadline , no not to exceed budget, no Minimal Viable Capabilities in the sense of MVP's meaning without these CapaCapabilitieslemented by there Features we cannot Go Live on the needed date for the needed budget, then the phrases in the quote may be applicable.

Agile 50

DDSTOP The Saga Continues

Herding Cats

We were one of the first users of eXtreme Programming, long before Scrum was around and presented that early work in 2003, " Making Agile Development Work in a Government Contracting Environment, Measuring velocity with Earned Value." . Buy a Software Estimating tool, like one of these.

DDSTOP The Saga Continues

Herding Cats

We were one of the first users of eXtreme Programming, long before Scrum was around and presented that early work in 2003, " Making Agile Development Work in a Government Contracting Environment, Measuring velocity with Earned Value." . Buy a Software Estimating tool, like one of these.

The #NoEstimates Paradigm and Response

Herding Cats

This is a good starting point for answering the mail on the notion that decisions can be made in the presence of uncertainty without estimating the impact of those decisions. But his conjecture starts with estimates are a waste , not saying for whom they are a waste for.

2016 64

Deconstructing the Hertz and Accenture Debacle

Herding Cats

A recent lawsuit by Hertz Rental Car against Accenture has turned into a rallying cry by Agilest and No Estimates advocates. We play this role in ERP acquisitions for commercial and government clients . Estimates of Cost, Schedule, and Technical Performance compliance.

Transport for London’s Signal Failure – £886m more than planned*

Ron Rosenhead

The above costs come from a report published by Budget and Performance Committee of the London Assembly. Horrible headlines and a horrible situation. Some of the statistics and comments in the report are astounding and some are below: · ….TfL

How to Build a Robust Project Risk Culture [8 Steps]

Online PM Courses

This will hep you improve your budget and schedule estimates, and therefore reduceover-runs. Your biggest wins will come from better governance, with little or no extra cost and time overhead. Access resources and budget. And what about governance?

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Phrases Used for Technical Performance Measures

Herding Cats

Budget control is mandatory for any credible management of other peoples money. For any system, estimates of future life-cycle costs are subject to varying degrees of uncertainty. Capabilities Estimating Governance IMP/IMS Management Planning Technical Performance Measures

DDSTOP The Saga Continues

Herding Cats

We were on of the first users of eXtreme Programming, long before Scrum was around and presented that early work in 2003, " Making Agile Development Work in a Government Contracting Environment, Measuring velocity with Earned Value." . By simply NOT Estimating? All by NOT Estimating?

2018 42

Agile Project Management Methods

Herding Cats

How estimates are or are not needed. They have not to exceed budgets , they have emerging requirements built on baselined Capabilities. There is a lot of unsubstantiated claims going around about how agile should or should not be applied. How the team should or should not be managed.

Agile 49

Value First, Requires Margin and Contingency

Herding Cats

The principles of microeconomics of decision making in the presence of uncertainty mandates you make estimates of how to achieve that Value in terms of cost and schedule, those three (and all) variables are random variables, usually driven by a stochastic process.

#Noestimates Has Come to This

Herding Cats

So the first part is following standard estimating principles. which states clearly and concisely that decisions can be made (in the presence of uncertainty - which is ALWAYS present on software development projects - without estimating the impact of those decisions. No Estimates?

2017 43

Two Parallel Processes of Project Success - Both Value and Delivery are Needed

Herding Cats

Software engineering economics is a topic that addresses the elements of software project costs estimation and analysis and project benefit-cost ratio analysis. Showing up late and over budget does not produce the needed Value. This is the foundation for estimates.

2018 51

What's Missing from the Agile Software Development Paradigm

Herding Cats

Without a clear, concise, measurable description of Done the probability of success for the project arriving on time, on budget with the needed capabilities, is low. Agile software development is framed by a manifesto , a set of 12 principles, several methods.

Biases in Project Management and How to Remove Them

Herding Cats

There is always lots of complaining about the biases introduced into managing projects and making the estimates needed to make project decisions. What is the Plan to reach done at the needed time for the needed budget, with the needed outcomes?

The CIO's Contribution to Project Failure

Herding Cats

IT project failure starts with demanding the project maintain its budget and delivery times in the absence of a Plan to go along with the Schedule of the work.

2018 42

The Problems with Schedules

Herding Cats

Unrealistic Cost and Schedule estimates based on inadequate risk adjusted growth models. Before diving into the details of these, let me address another issue that has come up around project success and estimates. There is no ideal in the estimating business. Just the estimate.

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Software Intensive System of Systems

Herding Cats

To make decisions about any of the work that impacts the four measures in the presence of the uncertainty requires we make estimates. So when you hear estimates are NOT needed to make decisions in the presence of uncertainty , those making that claim must have: No uncertainties.

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Physical Percent Complete: Knowing When You Are Done

Herding Cats

Each control account is assigned a budget and then, in a traditional EVM sense, the process begins of building the performance measurement baseline. . Why Guessing is not Estimating and Estimating is not Guessing.

Risk Management in Five Easy Pieces, with Apologies to Jack

Herding Cats

The answers to each of these questions require making estimates in the presence of uncertainty. No Point Estimate of Cost or Duration can be Correct. The use of point estimates for durations and costs is the first impulse in an organization low on the project management maturity scale.

Risk 48

The Origins of Scrum and Empirical Closed Loop Control

Herding Cats

Making decisions in the presence of this emerging uncertainty requires making estimates of the impacts or outcomes of any decision. Your Project Needs a Budget and Other Things. How to Avoid the "Yesterday's Weather" Estimating Problem.

Connecting "What" with "How" - and the Failure to Understand the Principles of Systems Engineering and Systems Management

Herding Cats

This is a serious mistake for any non-trivial project or product that operates in the presence of uncertainty, deadlines, not-t-exceed budgets, and mandatory sets of capabilities that are produced in exchange for money. It's been said by an agile voice that.