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. Cost estimation is the process that takes those factors into account, and calculates a budget that meets the financial commitment necessary for a successful project. An Overview of Cost Estimation.

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. The reason for this resource page is the lack of understanding of how to estimate, the urban myths about software estimating, and the fallacies that estimating is not needed, when developing software, in the presence of uncertainty, when spending other peoples money. Estimating Probable System Cost,” Stephen A.

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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.

Best Construction Scheduling Software of 2021 for Managing Projects

ProjectManager.com

If you want to keep a construction project on track and meet your deadlines, you want construction scheduling software that is robust and dynamic. There are many construction scheduling software products on the market that sell themselves as the go-to tool for the construction project manager.

2021 292

8 Tips for Estimating Resources in Project Management

MavenLink

There are several methods for using project scope to help estimate deliverables, including a top-down or bottom-up approach. For instance, an industry with government or health services clients can expect increased bureaucracy and downtime during reviews, approvals, etc.

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. But those estimates, nouns, and verbs themselves's have other attributes. Estimating and the resulting Estimates must be described by their accuracy and precision. Let's Stop Guessing and Start Estimating.

How to Estimate Any Software Problem

Herding Cats

ways to make decisions with No Estimates. Uncertainty of course is present in all software development work both reducible and irreducible uncertainty. can we make a decision in the presence of Uncertainty without making an estimate of the impact or outcome of that decision? What would be the evidence that we could make decisions in the presence of uncertanty without estimating the impacts and outcomes of those decisions? . An estimate is.

What is an Estimate? What is Estimating?

Herding Cats

I work in a domain where estimates are made every single week. Estimate to Complete (ETC), Estimate at Completion (EAC), Estimated Completion Date (ECD) are the life blood of our software intensive system of systems programs. The management of SISoS is really no different than the management of any other enterprise class software system. In the #NoEstimates paradigm, the term estimate is redefined to be Forecast and relabeled as NOT Estimating.

Decisions Without Estimates?

Herding Cats

Can you make a decision without an estimate? There are NO means of making a credible decision in the presence of uncertainty without estimating the outcome of that decision. If you want to decide what's the probability of occurrence of some Epistemic uncertainty or the statistical processes for some aleatory activity you need to estimate. Don't assume, Estimate. How can you assess the strategy without making estimates of the impact of the outcome of the hypothesis?

Estimating on Non-Trivial Software Projects

Herding Cats

A nice conversation on twitter about estimates on software brought up the topic of estimates as commitments. The #NoEstimates advocates see estimates as making commitments. Yes, commitments are made when we estimate. I have an 80% confidence (an estimate) I can deliver what you need on or before September 15 (an estimate), at or below $15,000.oo (an estimate) with a 15% error band (an estimate). . Estimates are not needed.

Principles of Cost and Schedule Estimating

Herding Cats

One of the 4 summary root causes of project performance failures is Unrealistic Cost and Schedule Estimates based on inadequate risk-adjusted growth models. Those making these claims may have their own personal purposes, their own agenda, their own reasons for sell this idea that estimates are somehow no longer needed when we're spending other people's money to produce value in exchange for that money. One notion in a governance paradigm is It's Not Your Money .

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. Any estimating process requires discipline and repeatability to produce accurate and precise results. The estimate can also be produced parametrically, empirically, or through a modeling and simulation.

Reality of the Value of Estimating

Herding Cats

Avoid software project horror stories - check the reality value of the estimate first from Harold van Heeringen. NoEstimates Estimating Governance

How to Fund a Software Development Project

ProjectManager.com

A critical success factor for a software development project is how it is funded. But greater flexibility generally requires a more skillful approach to governance and project management. In this blog I’ll explore several common options for funding software development projects. It is important to note that the rankings shown in Figure 1 are for software teams, although we suspect the rankings are likely to hold true for non-software teams too.

2019 282

Best Construction Project Management Software of 2020

ProjectManager.com

Smaller construction projects need construction project management software, and bigger ones definitely require the kind of control that only a PM tool can provide. If you’re going to manage a construction project, you want project management software that is robust and dynamic.

2020 279

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.

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. And like many posts and tweets about estimating, it's made from this point of view, not the business point view, not from the point of view of those paying the developer.

Closed Loop Control and Granularity of the Estimating Process

Herding Cats

For software, this can be value produced (assuming we have a unit of measure for that value in the for of effectiveness, performance, key performance parameters, or technical performance measures ). For a software project, let’s start by answering a critical question – how long are you willing to wait before you find out you’re late ? It can be the cost, schedule, and technical performance measures of the software project.

Cost and Value Management for Software Development

Herding Cats

This, of course, is a violation of the principles of Managerial Finance and Microeconomics of software development in the presence of uncertainty and scarce resources. Since each of these elements operates in the presences of reducible (Epistemic) and irreducible (Aleatory) uncertainties, estimates are needed to make any credible decisions. . Software Project Cost Estimation . There are numerous horror stories about software development cost and schedule overruns.

2018 49

GAO Cost Estimating and Assessment Guide Applied to Agile

Herding Cats

The GAO Cost Estimating and Assessment Guide has 12 steps. There are not specific to Agile Software Development. Agile Capabilities Decision Making Estimating Governance Management Performance-Based Project Management® Project Management Requirements Risk Root Cause Analysis SchedulingThese describe the increasing maturity of the project's artifacts. But here's how they are connected. Step . Agile. Capture All Activities.

Software Intensive System of Systems

Herding Cats

The domain I work in is categorized as Software Intensive System of Systems (SISoS). The development of the software and sometimes the development of the hardware is done in an agile manner, using one of several Agile development methods - SAFe, Scrum for example. The system can be a business system, a collection of hardware and software for defense or space, a weapons systems, a business management systems.

2001 30

Economics of Software Development

Herding Cats

For example, about which software to buy, which Features in the development backlog should be implemented next, what prices to charge for products and services. Software development is an exercise in microeconomics, since it deals with limited resources - time, cost, and what value is produced in exchange for the time and money. This is the foundation for estimates. Estimates with accuracy and precision values needed to make credible decisions. No Estimates?

2017 36

Software Development for the 21st Century

Herding Cats

Alistair Cockburn's talk on 21st Century Software development. . NoEstimates Agile Decision Making Estimating Governance Management Principles Project Management Root Cause AnalysisPay attention the hoax of #Noestimates and most major misunderstandings of the Agile Manifesto and the 12 Principle.

2017 34

What's Missing from the Agile Software Development Paradigm

Herding Cats

Agile software development is framed by a manifesto , a set of 12 principles, several methods. These are all focused on developing software, delivering that software to those paying the developers. Most customers have not been exposed to a paradigm that is the basis of everything we do in our Software Intensive System of Systems (SISoS) domain. [7]. Why This Missing Concept is Important to Agile Software Development? .

Software Intensive System of Systems

Herding Cats

The domain I work in is categorized as Software Intensive System of Systems (SISoS). The development of the software and sometimes the development of the hardware is done in an agile manner, using one of several Agile development methods - SAFe, Scrum for example. The system can be a business system, a collection of hardware and software for defense or space, a weapons systems, a business management systems.

2001 28

Is Software Development Art or Engineering

Herding Cats

I started my career as a Software Engineer , writing Fortran 77 signal processing algorithms to find and track missile launchers in the middle eastern desert. Signal processing is a domain of software development well suited to the paradigm of engineered systems. But there are software systems where testing is necessary but not sufficient. . Software-intensive systems include: . So when would a software system NOT be Engineered to fit the Needs of the Customer?

A Compendium of Works to Increase the Probability of Project Success

Herding Cats

Here are my collected works, presentations, briefings, journal papers, articles, white papers, and essays, used to increase the Probability of Project Success (PoPS) I've developed and applied over my career in the software-intensive system of systems domain. Software for Your Mind: Patterns and Anti-Patterns for Creating and Maintaining a Shared Vision. Nine Best Practices of Project Management , Software Program Managers Network (SPMN). Project Governance.

2008 45

Is Macroeconomics and Social Science the Same as Software Development?

Herding Cats

There a popular notions in the agile development world that authors like Hayek and Taleb speak to how software development works. Let's look at the thesis of Hayek in light of software development and the decisions that must be made when spending other people's money in the presence of uncertainty. He was not a program manager of engineered to order software intensive system of systems. Macroeconomics is the dismal science - treat it as such when developing software.

2016 36

Compendium of Works to Increase Probability of Project Success

Herding Cats

Here's a collection of presentations, briefings, papers, essays, book content used to increase the Probability of Project Success (PoPS) I've written and applied over my career in the software-intensive system of systems and other domains. Governance (#Governance). Agile Software Development (#ASD). Managing Government Grant Projects at Arizona Public Service - APS management process for Department of Energy grant for algae CO2 capture project. Governance.

2015 37

Your Crash Course on PPM Software

Project-Management.pm

There is no magic cure to fix these issues overnight, but there is somewhat a solution to make jobs easier and create balance in the system: these are the PPM Software. What You Need to Know About PPM Software. Project Portfolio Management (PPM) software warrants managers in charge to deal with advanced project endeavors easier. It is also a helpful tool when you are collecting data or estimating cost that will save you from guessing them all day.

2017 72

12 Best Professional Services Automation Software in 2021

Scoro

If you’re also looking to implement comprehensive PSA software in your company, take a look at our selection of the 12 best solutions on the market. Benefits of professional services automation software. Professional Services Automation Software Features.

2021 52

Software Development Process: How to Pick The Process That’s Right For You

Planio

But software development isn’t one of them. Every great piece of software starts with a plan and a clear process in place. Luckily, there are numerous software development processes you can choose from when you’re starting your next project. But which software development process is right for you? The SDLC: What is the software development lifecycle and why is it so important to have one? Software Development. Software Development.

Epicflow Glossary: Names of Features and Terms Used in the System

Epicflow Blog

Epicflow is a multi-project and resource management software solution that has quite a few features that contribute to the successful project delivery in a multi-project environment. Governance .

2021 65

Reading List for the Cone of Uncertainty

Herding Cats

The primary purpose of software estimation is not to predict a project’s outcome; it is to determine whether a project’s targets are realistic enough to allow the project to be controlled to meet them ? The beginning of all business critical software development projects is the point in time when performing organizations are least certain about the project, yet it is also the time when top management expects to be delivered project estimates that are very precise.

2012 41

Project Versus Product in Agile Development

Herding Cats

This quote is typically the basis of proposing agile software development over traditional software development. But if the development work is a Project is a fixed period of performance, for a fixed (with margin) budget, and a fixed set of Capabilities, then the question is can agile be used to develop the software? FASB 86 is an example of how cost and revenue for internal software development are recorded on the balance sheet. . The software is still useful.

2018 38

25 Top Enterprise Project Management Software Solutions for 2021

Workzone

Some project management software works great for small teams, but will not scale for larger businesses and enterprises. Top Enterprise Project Management Software. Everyone uses the same software. Advanced features available only in more robust software like Enterprise solutions.

2021 28

Microeconomics and Risk Management in Decision Making for Software Development

Herding Cats

Microeconomics is applicable to the development is software systems. If we look at the discipline of software engineering, we see that the microeconomics branch of economics deals more with the types of decisions we need to make as software engineers or managers. Throughout the software life cycle, there are many decision situations involving limited resources in which software engineering economics techniques provide useful assistance.

2007 32

Can You Make a Decision in Presence of Uncertainty Without Estimating?

Herding Cats

They started with “Estimates are a waste, stop doing them.” Those advocates also started with the notion that estimates are a waste for the developers. The size of the “value at risk” is also the starting point for estimates. If the project is small (de minimis) meaning if we over run significantly no one cares, then estimating is likely a waste as well. Next comes an original post from Woody – “you can make decisions with No Estimates.”

2016 40

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. Each of the authors have a different, sometimes slight, sometimes maor, approach to producing software using their methods. There is no sure basis of credibilityy for the No Estimates conjecture that decision can be made in the presence of uncertainty without first estimating the impact of the decision. .

2016 49

DDSTOP The Saga Continues

Herding Cats

There's been a rash of conjectures about all kinds of bad business, project, and software development (agile and traditional) management ideas of late. This also meant developing software systems to support this effort. 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." . All by NOT Estimating?