Agile cost estimation
Download as PPTX, PDF1 like1,121 views
This document discusses software cost estimation techniques. It describes top-down and bottom-up estimation, where top-down focuses on system-level costs and bottom-up estimates costs of individual modules. Expert judgment is the most widely used technique, relying on experience to estimate costs, but it can overlook module costs or new factors. Bringing together a group of experts can provide a consensus estimate to compensate for individual oversight, but the group may feel pressure or be dominated by one member. Accurate cost estimation is difficult due to unknown factors during planning.
Agile cost estimation
- 1. SOFTWARE ENGNEERING Shashwat Shriparv dwivedishashwat@gmail.com Software Engineer InfinitySoft
- 2. NEED FOR COST ESTIMATION? Cost estimation may be needed to establish a budget for the project or to set the price for the software for a customer If the Organization is unsure of its cost estimation, it may increase the price by some contingency over & above its normal profit. Actual cost must not exceed the estimate.
- 3. Estimating the cost of a software product is one of the most difficult and error-prone tasks in SE. It is difficult to make an accurate cost estimate during the planning phase of software development, since so many unknown factors will be there. Estimation should be updated regularly.
- 4. COST ESTIMATION It can be either, Top–down estimation. Bottom-up estimation.
- 5. TOP-DOWN ESTIMATION It first focuses on system level costs, such as the computing resources and personnel requirements, as well as the cost of configuration managements, quality assurances, system integration, training etc.
- 6. BOTTOM-UP ESTIMATION It first estimates the cost to develop each module or subsystem. Those cost are combined to arrive at overall estimate.
- 7. TOP-DOWN VS. BOTTOM-UP Top-down estimation has an advantage of focusing on the system level costs, but may overlook at some of the various modules to be developed. Bottom-up estimation emphasizes the cost associated with developing the individual system components, but may fail to account for system-level costs, such as configuring systems and quality control.
- 8. Top-down estimation under-estimate the cost of solving difficult technical problem associated with specific component. Bottom-up estimation is comparatively more expensive.
- 9. TYPES OF COST ESTIMATIONS Expert Judgment Delphi Cost Estimation Work Breakdown Structure Algorithmic Cost Models Constructive cost model (COCOMO )
- 10. EXPERT JUDGMENT The mostly widely used cost estimation technique. It is an inherently top-down estimation technique. It relies on the experience, background, and business sense of one or many key people in the organization.
- 11. The system to be developed is a process control system that may be similar to that of previous ones. Will have similar controlling function but may have to control more activates.
- 12. It cost less and saves time. May use same devices( computer, controlling device, same experts…) Can reuse much of the low-level codes.
- 13. Marketing opportunity To get more contracts the organizations may quote a lower price targeting high profits later. Requirement volatility Organizations charges less to win a contract and after winning, charges high for the charges.
- 14. ADVANTAGE Advantage of expert judgment, namely , experience, also be a obligation… The expert may be confident that the previous projects was the similar one.
- 15. DISADVANTAGE Overlook at some of the various modules to be developed or some factors that make the new projects significantly different. Experts making estimate may not have the experience in similar projects.
- 16. In order to compensate for the factors , group of experts prepare a consensus estimate. This minimizes the individual oversight and lack of familiarity with particular projects. Come with more optimistic estimation.
- 17. Group members may be less than candid due to some pressures. Dominance of an assertive group member.
- 18. THANK YOU! Shashwat Shriparv dwivedishashwat@gmail.com Software Engineer InfinitySoft