This document discusses several software cost estimation techniques:
1. Top-down and bottom-up approaches - Top-down estimates system-level costs while bottom-up estimates costs of each module and combines them.
2. Expert judgment - Widely used technique where experts estimate costs based on past similar projects. It utilizes experience but can be biased.
3. Delphi estimation - Estimators anonymously provide estimates in rounds to reach consensus without group dynamics influencing individuals.
4. Work breakdown structure - Hierarchical breakdown of either the product components or work activities to aid bottom-up estimation.
Software costestimation based on past
performance
Historical data used to identify cost factor
Methods
1. Top-down
2. Bottom-up
Top-Down:
Focuses on system level costs
Computing resources & personnel to develop the
system
Costs of Configuration management
Quality assurance
System Integration
Testing
Publications
3.
Bottom –Up:
Estimatesthe cost to develop each module or
subsystem.
Combine overall cost.
Techniques:
1. Expert Judgment
2. Delphi Cost Estimation
3. Work Breakdown Structure
4. COCOMO Model
4.
EXPERT JUDGMENT
Mostwidely used estimation technique
Top-down estimation technique
Ex:
Process Control System 10 months & $ 1
million cost
New System 25% more activities increase
our time and cost
Same computer and external sensing/controlling
devices & same people available to develop the
new system
Reduce our estimate by 20%
5.
Advantages:
Experience
Expertconfident that the project is similar to
previous one.
Group of experts prepare a consensus
estimate.
Minimize individual oversights.
6.
Disadvantages:
Interpersonal groupdynamics may have on
individuals in the group.
Political consideration
Dominance of an overly assertive group
member.
7.
DELPHI COST ESTIMATION
Developed by Rand Corporation in 1948
Without introducing the adverse side effects
of group meetings
1. A coordinator provides each estimator with
the System Definition document
2. Estimators study the definition and complete
their estimate anonymously. Ask questions
of the coordinator.
3. Coordinator prepares and distributes a
summary of the estimators response
8.
4. Estimators completeanother estimate, again
anonymously using the results from the
previous estimate.
5. The process is iterated for as many rounds
as required. No group discussion is allowed
during the entire process
9.
VARIATION OF DELPHICOST ESTIMATION
1. Coordinator provides each estimator with a
system Definition and an estimation form
2. Coordinator calls a group meeting and discuss
the estimation issues with each other.
3. Estimators complete their estimates
anonymously
4. The coordinator prepares a summary of
estimates, but does not record any rationale.
5. The coordinator calls a group meeting to focus
on issues where the estimation vary widely
6. Estimators complete another estimate, again
anonymously. The process repeated so many
10.
WORK BREAKDOWN STRUCTURE
Bottom-up estimation
Hierarchical chart individual parts of the
system
WBS product hierarchy / process hierarchy
Product Hierarchy
Identifies the product components and how its
interconnected.
Process Hierarchy
Identifies the work activities and the relationship
among those activities.