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06-Feb-2012




                                                   Session 5

                                                Software estimation




The perspective of estimation


 First encounter     Getting to know     Project proposal      Contracting
 with your client      each other       and requirements                         “Estimation is the activity with the highest
                                                                                 degree of uncertainty throughout the whole
                     Pricing strategy                                            development,- and project lifecycle”
  “What is your     General Terms and                        Detailed pricing
    price?”            Conditions          Estimation       SLA and conditions


                                                                                                         True or not?




Estimation exercise                                                              Estimation Questions
• Choose one of the collaboration techniques                                     1. What is the average distance of the Moon from the
   – Estimate as a group, come to consensus                                         Earth? 384400 km
   – Divide the work among you, estimate individually                            2. What is the height of the highest mountain? 8848 m
                                                                                 3. What is the diameter of the Earth? 12756 km
                                                                                 4. What is the area of Switzerland? 41277 sq km




                                                                                                                                           1
06-Feb-2012




Estimation

• Estimate a Range, negotiate a number



• Numbers are for facts Ranges are for estimates



                                                                             WHAT DO WE NEED TO KNOW
                                                                             FOR SOFTWARE ESTIMATION?




•   The sizes of major deliverables, such as specifications, source code,
    and manuals
•   The rate at which requirements are likely to change during
    development
•   The probable number of bugs or defects that are likely to be
    encountered
•   The capabilities of the development team
•   The salaries and overhead costs associated with the development
    team
•
•
    The tools that are going to be utilized on the project
    The set of activities that are going to be carried out
                                                                             WBS - GANTT
•   The cost and schedule constraints set by clients of the project being
    estimated




WBS                                                                         WBS - Development
• A WBS is a logical hierarchy of deliverables                              1. Take the committed deliverables
• A WBS is an essential tool in the project planning                        2. Decompose the deliverables down to activity level
  process                                                                        7 (+/- 2) activities for any WBS entry. If not:
• Does not represent the relationships and dependencies                           • Split entries
  between activities                                                              • Combine activities
• A WBS helps to define the work required for the project                   3. Validate, bottom-up
  and to break it into manageable pieces
• A good WBS can help in the development of schedules,
  project plans, budgets, project control and resource
  requirements




                                                                                                                                            2
06-Feb-2012




WBS – Final steps

•   Risk assessment
•   Milestones
•   Develop WBS from the top down; not bottom up
•   Don’t exceed about 5 levels in a WBS
•   Check to make sure that the WBS is consistent with the
    project charter
                                                             GANTT




GANTT - Development                                                                          (Pete)

                                                                             (John & Mary)
• Represents dependences between activities
• Activities (from WBS) +
    – Duration
    – Person responsible
    – Person authorizes completion




                                                             ESTIMATION OR
                                                             GUESTIMATION?




                                                                                                      3
06-Feb-2012




Group work                                                       Issues and challenges

• Create a clear, step-by-step process for software                                               Lack of historical data
  estimation                                                                                      No formal method for
                                                                                                  estimation
• At each step indicate the uncertainty in the process,
                                                                                                  No estimation updates
  where is it coming from and how can you eliminate it
• Present your software estimation process




Estimation and the cone of uncertainty



  “The further a project progressed, the more accurate           "If I give you another week to work on your
  the estimates for the remaining effort and time became”        estimate, can you refine it so that it contains
                                             Barry Boehm,        less uncertainty?"




The cone of uncertainty
                                                                 That’s a reasonable request, but      The Cone represents the
                                                                                                       error in estimates created
                                                                 unfortunately it’s not possible to    by skilled estimators.
                                                                 deliver on that request. Research
                                                                                                       It’s easily possible to do
                                              Degree of error:   has found that the accuracy of        worse.
                                              4 / 0.25 = 16      the software estimate depends
                                                                                                       It isn’t possible to be more
                                                                 on the level of refinement of the     accurate; it’s only possible
                                                                 software’s definition. The more       to be more lucky.

                                                                 refined the definition, the more
                                                                 accurate the estimate.




                                                                                                                                      4
06-Feb-2012




             Overestimation                                                              What do we estimate?
                 Work expands to fill available time.

                                                                                         • Effort
                                                                                         • Cost
                                                                                         • Schedule
             Accurate estimate                                               +/- 5-10%




             Underestimation
                A smaller-than-actual project is planned, understaffing, missing
                essential tasks. As a result defect rates and costs increase.
                Most project teams underestimate by a factor of 2!




Software estimation process                                                              Software estimation process (continuation)
1.   Analyse requirements
                                                                                         7.   For cost estimates and budget you need to know:
2.   Plan activities
                                                                                              –   Salaries
3.   Start sizing the project by using;                                                       –   Overhead applied for the project
     –   Estimation tools                                                                     –   Inflation rate
     –   Counting Function Points                                                             –   Currency excahnge rates
     –   Analogy with other projects and industry averages                                    –   Licence fees
     –   Guessing the size                                                                    –   Equipment
         •   By the project manager                                                           –   Travel and living costs
         •   By the programmer team                                                           –   Contractors and subcontractors
         •   By Wideband-Delphi                                                               –   Legal fees
                                                                                              –   Marketing and advertising
4.   Estimate defect potential, defect removal and changing requirements                      –   Content acquisition
5.   Estimate staffing requirements
6.   Adjust based on staff experience and capabilities
7.   Create schedule and effort estimates




                                                                                                                                                         5

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Planificación del proyecto estimación

  • 1. 06-Feb-2012 Session 5 Software estimation The perspective of estimation First encounter Getting to know Project proposal Contracting with your client each other and requirements “Estimation is the activity with the highest degree of uncertainty throughout the whole Pricing strategy development,- and project lifecycle” “What is your General Terms and Detailed pricing price?” Conditions Estimation SLA and conditions True or not? Estimation exercise Estimation Questions • Choose one of the collaboration techniques 1. What is the average distance of the Moon from the – Estimate as a group, come to consensus Earth? 384400 km – Divide the work among you, estimate individually 2. What is the height of the highest mountain? 8848 m 3. What is the diameter of the Earth? 12756 km 4. What is the area of Switzerland? 41277 sq km 1
  • 2. 06-Feb-2012 Estimation • Estimate a Range, negotiate a number • Numbers are for facts Ranges are for estimates WHAT DO WE NEED TO KNOW FOR SOFTWARE ESTIMATION? • The sizes of major deliverables, such as specifications, source code, and manuals • The rate at which requirements are likely to change during development • The probable number of bugs or defects that are likely to be encountered • The capabilities of the development team • The salaries and overhead costs associated with the development team • • The tools that are going to be utilized on the project The set of activities that are going to be carried out WBS - GANTT • The cost and schedule constraints set by clients of the project being estimated WBS WBS - Development • A WBS is a logical hierarchy of deliverables 1. Take the committed deliverables • A WBS is an essential tool in the project planning 2. Decompose the deliverables down to activity level process 7 (+/- 2) activities for any WBS entry. If not: • Does not represent the relationships and dependencies • Split entries between activities • Combine activities • A WBS helps to define the work required for the project 3. Validate, bottom-up and to break it into manageable pieces • A good WBS can help in the development of schedules, project plans, budgets, project control and resource requirements 2
  • 3. 06-Feb-2012 WBS – Final steps • Risk assessment • Milestones • Develop WBS from the top down; not bottom up • Don’t exceed about 5 levels in a WBS • Check to make sure that the WBS is consistent with the project charter GANTT GANTT - Development (Pete) (John & Mary) • Represents dependences between activities • Activities (from WBS) + – Duration – Person responsible – Person authorizes completion ESTIMATION OR GUESTIMATION? 3
  • 4. 06-Feb-2012 Group work Issues and challenges • Create a clear, step-by-step process for software Lack of historical data estimation No formal method for estimation • At each step indicate the uncertainty in the process, No estimation updates where is it coming from and how can you eliminate it • Present your software estimation process Estimation and the cone of uncertainty “The further a project progressed, the more accurate "If I give you another week to work on your the estimates for the remaining effort and time became” estimate, can you refine it so that it contains Barry Boehm, less uncertainty?" The cone of uncertainty That’s a reasonable request, but The Cone represents the error in estimates created unfortunately it’s not possible to by skilled estimators. deliver on that request. Research It’s easily possible to do Degree of error: has found that the accuracy of worse. 4 / 0.25 = 16 the software estimate depends It isn’t possible to be more on the level of refinement of the accurate; it’s only possible software’s definition. The more to be more lucky. refined the definition, the more accurate the estimate. 4
  • 5. 06-Feb-2012 Overestimation What do we estimate? Work expands to fill available time. • Effort • Cost • Schedule Accurate estimate +/- 5-10% Underestimation A smaller-than-actual project is planned, understaffing, missing essential tasks. As a result defect rates and costs increase. Most project teams underestimate by a factor of 2! Software estimation process Software estimation process (continuation) 1. Analyse requirements 7. For cost estimates and budget you need to know: 2. Plan activities – Salaries 3. Start sizing the project by using; – Overhead applied for the project – Estimation tools – Inflation rate – Counting Function Points – Currency excahnge rates – Analogy with other projects and industry averages – Licence fees – Guessing the size – Equipment • By the project manager – Travel and living costs • By the programmer team – Contractors and subcontractors • By Wideband-Delphi – Legal fees – Marketing and advertising 4. Estimate defect potential, defect removal and changing requirements – Content acquisition 5. Estimate staffing requirements 6. Adjust based on staff experience and capabilities 7. Create schedule and effort estimates 5