Transforming Project Estimations at General Dynamics Electronic Systems 

The Challenge 

General Dynamics Electronic Systems, based in Mountainview, CA, faced significant challenges in accurately estimating and controlling software development costs. Without a standardized process, the company struggled with inconsistent and unreliable estimates, hindering their ability to deliver projects on time and within budget. 

The Solution 

In the 1980s, the company began using software metrics to improve cost estimations. By harnessing historical financial and program data, General Dynamics developed a more accurate and consistent estimation process. This included: 

• Centralized Data Collection: Implementing a formal process to collect and analyze historical project data. 

• Adoption of Software Metrics: Utilizing software metrics to produce accurate cost estimates and control costs throughout the project lifecycle. 

• Integration of Advanced Tools: Transitioning from spreadsheets to advanced cost estimation tools like SEER-SEM™ from Galorath Incorporated, which provides detailed sensitivity analysis and custom parameters. 

The Results 

The introduction of software metrics and advanced tools led to significant improvements in the company’s project estimation capabilities: 

• Accuracy Improvement: Estimation accuracy improved by +20%, reducing the risk of budget overruns. 

• Efficiency Gains: Resource allocation efficiency increased by +25%, ensuring optimal use of financial and human resources. 

• Agile Adaptation: Successfully integrated Agile methodologies into the estimation process, improving the accuracy of cost and effort estimates by +30%. 

• Standardization: Consistency in project estimations increased by +40%, allowing better validation of budget requests. 

• Transparency: Auditability of estimates improved by +35%, enhancing transparency and accountability. 

These improvements allowed General Dynamics Electronic Systems to deliver high-quality systems to their customers, on time and on budget, setting a new standard for project estimation within the industry.