Galorath Article “Applying Earned Value Management To Software Intensive Programs Part 2

April 15, 2009 · Filed Under earned value  - 0 Comment(s)

For paper with figures see Applying Earned Value Management To Software Intensive Programs Final

Establishing a Process for Requirements Definition and Developing the Technical, Cost and Schedule Baselines

 

A software program life cycle cost estimate is the most knowledgeable statement one can make at a particular point in time regarding effort/cost, schedule, staffing, risk, and reliability.  However, the most important business decisions about a software project are often made at the time of minimum knowledge and maximum uncertainty.   Cost estimators recognize that the estimate is not a point, but rather a well formed estimate defined by a probability distribution.

 

A well defined process is critical to defining the requirements and completing the initial cost and schedule estimate.  The proper use of PBEV provides for integration of project technical scope, schedule, and cost objectives; and the establishment of a baseline plan for performance measurement.  Additionally, the use of an analytic tool to project likely cost and schedule based on actual performance provides for realistic projections of future performance.  Success of the project can be aided by defining the best objectives, by planning resources and costs which are directly related to those objectives, by measuring accomplishments objectively against the plan, by identifying performance trends and problems as early as possible, and by taking timely corrective actions.

 

A CMMI tutorial recognizes that people, process, and technology are major determinants of product cost, schedule, and quality.  We all realize the importance of having a motivated, quality work force but even our finest people can’t perform at their best when the process is not understood or not operating at its best. Figure 1, People, Process, Technology are Keys, presents this concept.

 

 

Figure 1, People, Process, Technology are Keys

 

In the book, “Software Sizing, Estimation and Risk Management” (Dan Galorath and Michael Evans, 2007) a ten step process is presented for program requirements generations and estimation.  Figure 2, 10 Step Software Process, outlines the ten steps.

 

 

 

Figure 2, 10 Step Software Process

 

While the Galorath process includes ten steps, other process may include more or less steps (e.g. the GAO Cost Guide includes a 12 steps process).  Note specifically the importance of step 4, estimating and validating the software size metric.  The key here is to establish an auditable, repeatable set of steps to establish the requirements and develop the baseline estimate of cost and schedule.  This is the key to articulating an accurate requirement and establishing a reliable baseline for cost and schedule.

This article was originally published in the Software Tech News, Volume 12, No. 1, April 2009.  The web site for more information about this publication is www.softwaretechnews.com


Thank you for reading “Dan on Estimating”, if you would like more information about Galorath’s estimation models, please visit our contact page or call us at +1 310 414-3222.

Related posts:

  1. Galorath Article “applying Earned Value Management To Software Intensive Programs Part 1
  2. Applying Earned Value Management to Software Intensive Programs Part 4
  3. Applying Earned Value Management to Software Intensive Programs Part 3
  4. Performance Based Earned Value
  5. Earned Value Analysis Without An Achievable Plan Is Futile

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