- Check the history about how similar projects were estimated.
- Partial WBS is also an option.
- Sometimes Expert Opinion is the best answer.
- It should be based on the Solution Architecture.
- It should take bottom-up approach.
- Divide and rule. Make it modular.
- (Development) Language does matter.
- Offshore can reduce costs but not all the times.
- Make sure that what-if scenarios are identified
- Feature and price breakdown are necessary evils.
- Sometimes, phased estimation saves the project.
- Some of the following methods are good estimation-technique-candidates:
- Parametric,
- Educated assumptions,
- Delphi method,
- Dependencies identification,
- Previous history
- Task breakdown
- Assumption is the chair on which estimation sits sometimes.
- Distrust can undermine estimates.
- Padded estimate generate distrust
- Estimating techniques can help manage the risks
- Guesstimations can screw the projects.
- Use Case Metrics is also a possibility.
- Ranged estimations are the answer when you do not have precise information.
- Three Point Estimation technique is considered a reliable one.
- Ultimate destination of an estimate is Budget.
- Not all management knows the distinction between estimation and budget.
- Make sure to add estimates for User Acceptance Test (UAT) – it will save the project from being a failure.
- Variations with the actual and Ballpark estimations can be up to 300%
- Variations with the actual and Rough estimations can be up to 50% to 100%
- Variations with the actual and Fair estimations can be up to 25% to 50%
- Have you considered contingency plans in the estimate you just created?
- Those who do the actual work should be an integral part of estimation.
- Estimate of all 4 variables is must: time, people, and resources and the risks
- A good estimate does not need fancy tools – Ms-Excel or a pen and paper would suffice if it is executed nicely.
See Also:
- Five Chronic Problems With Failed Projects And How To Overpower Them With Common Sense
- Six Sigma Project Management Using DMAIC
- Leadership Virtues That A Software Project Manager Should Have
- Project Manager Who Is Most Likely To Produce Great Results 60
- Dependable Project Manager 9
- Project Manager Who Loves Chatting with the Client At Her Convenient Time
- Are You An Offshore Software Project Manager From India?
{ 2 comments… read them below or add one }
Twitter: tnvora
August 21, 2009 at 8:47 am
Great List – I have one addition though:
Don’t factor inefficiency of your team in estimation. People who estimate tend to look around for people who might work on this project and also try to factor their inefficiencies into the estimate. That is a huge waste.
Estimates are always based on efficiency (strength) of your resources and not on inefficiencies (weakness). Play to their strengths!
Cheers!
Tanmay
Twitter: utpalvaishnav
August 25, 2009 at 2:09 pm
Thanks for the addition Tanmay.
I believe whether we should factor Inefficiency or not is a debatable point.
While I totally agree that factoring inefficiencies is a huge waste, I think we should rationalize and allowed to be considered it in certain kind of engagements in some cases.
For example software companies that operates in non-metro cities of India who offer comparatively cheap rates. They usually estimate almost all the projects considering their people’s capabilities and if the estimate (which is influenced by their people’s inefficiencies) is acceptable to the other party, which means cheap rates with less efficient people, the battle begins.
If organizations take a call in such situations and play to their people’s strengths, nobody can resist them to be successful.
Cheers!
Utpal