10 Step Estimation Process Sample Checklist
View our 10 Step Estimating Process Checklist. This checklist should be tuned to the individual company’s needs and suggestions.
I find it interesting how many people just go forward without a clue as to what is involved in developing and operating an IT system. I spent the week at the birthplace of root cause analysis. What a pleasure to hear leaders state “amazing” that they could get visibility into the cost, schedule, risk and reliability of a system. And to hear them identify their current estimating difficulties as a root cause of project failure. Here are a few typical scenarios:
1. Don’t estimate at all: We will go forward and do good things…and tell you when we are done.
2. Estimate based on simple guessing: We think we can do it for x in y time. But why? How is it repeatable? How can we improve?
3. Estimates reduced by mandate: Decent estimates that are politically incorrect, often reduced considerably to meet an impossible deadline or cost.
When the estimate is bad, the associated plan (you do have a plan, don’t you?) is doomed from the start. Expectations are not met, shortcuts are taken attempting to make up the time, business value is lost as projects are late or canceled.
I also have to shake my head when I see programs that use earned value to track but do not have a viable baseline to track from.
Estimating Total Cost of Ownership (TCO)
Find out how you can use Total Cost of Ownership (TCO) model to create an estimate which includes all the costs generated over the useful life of a given application.
Should Cost Analysis
Learn how Should-Cost Analysis can identify savings opportunities and drive cost efficiency in procurement and manufacturing processes.
ROM Estimate: The First Step Towards a Detailed Project Plan
Find out what ROM (rough order of magnitude) estimate is and why is it a crucial element of every project planning cycle.
Software Maintenance Cost
Find out why accurate estimation of software maintenance costs is critical to proper project management, and how it can make up to roughly 75% of the TCO.
