Cost Estimation Methods
G Different Methods for Cost Estimation
Expert Judgment Method
Expert judgment techniques involve consulting with software cost estimation expert or a group of the experts to use their experience and understanding of the proposed project to arrive at an estimate of its cost.
Generally speaking, a group consensus technique, Delphi technique, is the best way to be used. The strengths and weaknesses are complementary to the strengths and weaknesses of algorithmic method.
To provide a sufficiently broad communication bandwidth for the experts to exchange the volume of information necessary to calibrate their estimates with those of the other experts, a wideband Delphi technique is introduced over standard Deliphi technique.
Steps using this estimating method:
1. Coordinator presents each expert with a specification and an estimation form.
2. Coordinator calls a group meeting in which the experts discuss estimation issues with the coordinator and each other.
3. Experts fill out forms anonymously
4. Coordinator prepares and distributes a summary of the estimation on an iteration form.
5. Coordinator calls a group meeting, specially focusing on having the experts discuss points where their estimates varied widely.
6. Experts fill out forms, again anonymously, and steps 4 and 6 are iterated for as many rounds as appropriate.
The wideband Delphi Technique had been used in a number of studies and cost estimation activities. It has been highly successful in combining the free discuss advantages of the group meeting technique and advantage of anonymous estimation of the standard Delphi Technique.
The advantages of this method are:
• The experts can reason in differences between past project experience and requirements of the proposed project.
• The experts can reason in project impacts caused by new technologies, architectures, applications and languages involved in the future project and can also reason in outstanding personnel
Expert Judgment Method
Expert judgment techniques involve consulting with software cost estimation expert or a group of the experts to use their experience and understanding of the proposed project to arrive at an estimate of its cost.
Generally speaking, a group consensus technique, Delphi technique, is the best way to be used. The strengths and weaknesses are complementary to the strengths and weaknesses of algorithmic method.
To provide a sufficiently broad communication bandwidth for the experts to exchange the volume of information necessary to calibrate their estimates with those of the other experts, a wideband Delphi technique is introduced over standard Deliphi technique.
Steps using this estimating method:
1. Coordinator presents each expert with a specification and an estimation form.
2. Coordinator calls a group meeting in which the experts discuss estimation issues with the coordinator and each other.
3. Experts fill out forms anonymously
4. Coordinator prepares and distributes a summary of the estimation on an iteration form.
5. Coordinator calls a group meeting, specially focusing on having the experts discuss points where their estimates varied widely.
6. Experts fill out forms, again anonymously, and steps 4 and 6 are iterated for as many rounds as appropriate.
The wideband Delphi Technique had been used in a number of studies and cost estimation activities. It has been highly successful in combining the free discuss advantages of the group meeting technique and advantage of anonymous estimation of the standard Delphi Technique.
The advantages of this method are:
• The experts can reason in differences between past project experience and requirements of the proposed project.
• The experts can reason in project impacts caused by new technologies, architectures, applications and languages involved in the future project and can also reason in outstanding personnel
References: 1. Schwalbe, K “Managing Information Technology Projects”, Sixth Edition. 2. Gray | Larson “Project Management: The Managerial Process”, Forth Edition. 3. Cost Estimating Techniques [Web:] http://www.enge.vt.edu/terpenny/Smart/Virtual_econ/Module3/module3_frames.html [Date of access: 12 Feb. 2012] 4. 451 Cost and Effort Estimation [Web:] http://ksi.cpsc.ucalgary.ca/course/451-96/mildred/451/CostEffort.html [Date of access: 12 Feb. 2012].