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 Effort estimation/
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Effort estimation/project costing

 
Effort estimation - a sensitive issue in e-projects
Frequently, the requirements are not defined exactly at the start of the project, which makes it very difficult to estimate the scope of functions, quite apart from the fact that often there will be no empirical values available from similar projects with similar technology which are essential for an expert estimation.

The Effort Estimation and Metrics Support Center has also gathered experience with such projects during the past few years and can offer you support for this difficult task.
 

Effort Estimation and Metrics Support Center 
Professional support for effort estimation (German)
Professional project costing - particularly important in fixed-price projects
Costing is based on the effort estimation, converting effort into cost (particularly important when PSE International is involved, as hourly rates differ) and taking into account extra costs such as computer costs, travel expenses, license fees, sub-contracts, etc.

The next step is the evaluation of risks and the calculation of corresponding risk surcharges. The overall result of these calculations then serves as the basis of pricing, which is done jointly with the financial managers. 
 

Calculation sheet (German)
Available from PSE CO (Tools -> FP-Kalkulation)
Access rights available from your financial manager!
In which project phases is effort estimation particularly important?
Effort estimation is relevant during the entire development cycle.
  • Early preliminary effort estimation at the start of the project
  • Determination of coordinated effort as soon as detailed specifications are available (software requirements specification)
  • Estimation of effort for third-party supplied products and services (e.g. for web design), controlling and coordination of third-party supplied products and services.
  • Controlling of effort during development, evaluation of change requests 
  • Actual costing for completed projects to retrieve metrics data

What steps need to be taken?
The following procedures are recommended for effort estimation:
  • Effort estimation meeting (expert estimation)
  • Estimation of the scope of functions based on the function point analysis method in addition to the expert estimation (this is also possible and useful when the scope of functions has not been defined yet in detail; of course, such an analysis will feature corresponding uncertainties)

Project costing then builds on these effort estimations (conversion of effort into cost), taking account of extra costs such as computer costs, travel expenses, license fees, supplies from subcontractors, etc., as well as risk surcharges for individual items. Issues such as cost for warranty, penalty payments, and administrative overhead are also important and must be calculated together with the respective financial manager (especially important with fixed-price tenders).