12/21/2021

SE-430

Software Project Management

Software Effort Estimation
Week 8

Lesson Objectives
• To learn:
‒ How is an effort estimate for a project made?
‒ What are the different effort estimation techniques?
‒ How is a cost estimate for a project made?
‒ What are the different cost estimation techniques?

Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 2

1
 12/21/2021

Effort estimation
• One of the initial steps in software development projects.
‒ Creates a basis for all subsequent stages related to project planning and management.
• Three main factors when planning and estimating a software development project:
‒ The deliverables (or the scope)
‒ The resources (the budget and the team’s effort)
‒ The timeline

Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 3

Effort Estimation Techniques

• The beginning of any project sees an initial effort estimate which is

rough and mostly inaccurate at best.
‒As more and more information becomes available for any project as it
progresses, it makes sense to revise project estimate regularly to make the
estimate more accurate.

Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 4

2
 12/21/2021

Estimating Methods

Bottom-up - Parametric or
activity based, algorithmic Expert opinion
analytical Parkinson Analogy -
models e.g. - just and ‘price case-based,
function points guessing? to win comparative

Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 5

Bottom-up versus top-down

• Bottom-up
‒use when no past project data
‒identify all tasks that have to be done – so quite time-consuming
‒use when you have no data about similar past projects
• Top-down
‒produce overall estimate based on project cost drivers
‒based on past project data
‒divide overall estimate between jobs to be done

Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 6

3
 12/21/2021

Top - Down estimating

Estimate • Produce overall
overall
100 days estimate using
project
effort driver(s)
design code test • distribute
proportions of
30% 30% 40%
i.e. i.e. i.e. 40 days overall estimate to
30 days 30 days components

• The initial overall estimate might have been produced using a parametric
model, by analogy or just expert judgement.
Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 7

Reference
• Project Management Body of Knowledge
‒ Chapter 7
• Software Project Management – Bob Hughes & Mike Cotterell
‒ Chapter 3

Athar Mohsin - MCS SE-430 Software Cost & Effort Estimation 8