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EstCost
Software_Estimation
You can get an estimation of your project cost and practical suggestions how to optimize cost spending. Estimate Project Cost is by far the most popular service for project managers and project owners.
Estimate Project Schedule provides an estimation of project critical path, development phases optimization, suggestions on how to remove bottlenecks and timebombs.
Project Manager is more then 50% of the project. Project Manager is the project's father for schedule, control, team, releases and quality.
Organization of Project Team, team roles, people skills and experience, team solidarity and purposefulness can be evaluated to verify aptitude for the project.
Technologies should be used in the project only on necessity and based first on profitability. There is no 'the most rapid' or 'the cheapest' technology in general. This service will help you to find technologies most suitable for your project requirements and goals.
Project Requirements should be complete, consistent and realizable. The thorough evaluation of Project Requirements will prevent problems on later phases of your project.
Quality Assurance (QA) is a key process in software development and should be the key line of any project. Evaluation of QA of your project brings to you an assurance in the high quality of the project during its entire life cycle.

Project Cost Estimation

Project Cost Estimation
The Problem

  • The Program Manager’s (PM’s) Job
  • Plan the Project
  • Estimate the Cost and Establish the Budget
  • Identify and Acquire Necessary Resources (People, Equipment, etc.)
  • Manage it (to the schedule, within budget)
  • The PM’s Dilemma
  • Cost is Usually the Boundary that Cannot be Crossed
  • Cost is a Determined by How Much (labor, materials, etc.) and How Long (Schedule)
  • So How Do You Figure Out What it Will Take Before You’ve Done It??

Understanding "What’s in the Cost"

  • Elements of Costs
  • Direct Costs - Attributable to the Project:

Salaries and Associated Benefits, Materials, Payments to Subcontractors or Consultants, Project Related Travel
  • Indirect (Overhead) Costs - Necessary Business Expenses:

General Administrative Costs, Facility (Space, Utilities, Insurance), Marketing, Ongoing Research and Development
  • Basic Equation:
  • Cost = Labor$ x Time + Other Direct Costs + Indirect Costs

Note: Indirect Costs are Usually Allocated on Some Proportional Basis Each project a Business is Executing

The Process (Figuring Our What it Takes)

  • Step 1 - Break the Project Down into a Set of Definable Tasks
  • Iterative, Top Down Process
    • Identify Major Activities (Design, Development, Integration, Test, Production)
    • Break Down Further into "Self Contained" tasks (Design User Interface, Develop Database Software, Develop Prototype xyz Board…)
    • Take it Down One or More Steps Depending on Size and Complexity (Layout All Display Formats, Determine Operator Action/Entry Sequences, Define Limit Tests and Error Notifications)
  • Too Little Breakdown is Bad, Too Much is Bad - it takes a Balance
  • Tools - Logic, Analysis, Experience

The Process - Estimating Each Task

  • Determine What it Takes to Address Each Task in the WBS
  • Usually Focused on Labor
  • What Type (Programmer, Engineer, Network Administrator, Writer/Illustrator)
  • Experience Mix
    • May Look Like Mini Project Teams (Some Guidance from a Senior Type + 2 Juniors doing details and a Writer)

 

  • Estimate How Long the Task Should Take
  • Very Subjective
    • Historical Performance Metrics and/or or Personal Experience Helps
    • Capabilities/Limitations of Candidate Project Team Members Must be Considered
  • Cover the Gaps (the Team is usually Fixed and Finite)
    • Plan for Continuous Tasking for each member Until No Longer needed

The Process - Preparing The Schedule

  • Schedule the Tasks
  • Assess Start Point for Each (Possibly Relative to Progress of Others)
  • Assumes Some Sequence/Dependency Analysis Has Been Conducted
  • Insert Milestones
  • Key Review/Delivery/Test Points
  • Evaluate the Result
  • Staff Profile (is it Reasonable)
  • Make Necessary Adjustments (Schedule, Resource Mix, etc.)

 

The Process - Calculating the Cost

  • Labor
  • Schedule and Staff Profile Summarizes labor Types and How Much of Each (Total Hours, Days Weeks etc.)
  • Labor Hour Costs Normally are Salary + Fringe Multiplier
  • Materials
  • Delivered or Consumed as Part of Project
    • Computers, Software Licenses, Peripherals, etc. Delivered to Customer
    • Usually a "Firm Number" Supported by Vendor Quotes
    • Paper, Special Materials to be Used During Job for Books, Pictures, Etc.
    • Typically a "Best Estimate" and Minor Relative to Materials and Labor
  • Consultants and Subcontractors Costs
  • Consultants Costs Predicted Based on Hourly Quote and Usage Estimate
  • Subcontractors Based on Firm Quote for Services
  • Other (Travel, Etc.)
  • Estimates Based on Job Requirements
  • Add it Up:
  • Cost =Labor (w/Fringe) + Materials +Consultants/Subs +Other + Indirect

 

We Have a WBS, Schedule Cost - Now What..
A Final Look

  • Prepare to Track It
  • Set Up a Total Cost Profile (How the Project Flows Financially)
  • Set Up a Labor Profile (Either by Hours, Labor Cost - or Both)
  • During Execution
  • Account for Expenses Against WBS items
  • Review "Progress" Against Cost Profile Regularly
  • If behind Schedule, Ahead of Cost Profile, Must be problems…
  • Another Dilemma
  • "If You Can’t Measure It - You Can’t Track It."
  • "If You Don’t Know Where You’re Going - You Might End Up Somewhere Else"

 

 

 

 

 

 

 

 
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