07. Cost & Estimation¶
At a glance
- Module: 07 of 13 · Part III — Planning Knowledge Areas
- Sessions: S15–S16 (Week 8)
- Level: Intermediate
- Estimated time: ~7 hours
- Prerequisites: Module 06
Overview¶
Estimating is the art of predicting how much effort and money a piece of software will take. It is notoriously difficult, and getting it wrong is one of the most visible ways a project fails. This module treats estimation as a discipline with techniques, not a guess, and shows how estimates become a budget that can be tracked.
Learning outcomes¶
By the end of this module you should be able to:
- Distinguish effort, duration, and cost, and explain why confusing them causes errors.
- Apply analogue, expert-judgement, bottom-up, and size-based estimation techniques.
- Explain the sources and scale of estimation uncertainty, and use ranges rather than points.
- Build a project budget with an explicit contingency reserve.
- Track cost and schedule performance using earned value concepts.
- Explain why estimates should be revised as understanding improves, and how to do that without losing credibility.
Lesson plan¶
| # | Lesson | Session | Status |
|---|---|---|---|
| 01 | Effort and Cost Estimation | S15 | Available |
| 02 | Estimation Techniques | S16 | Available |
Effort, duration, cost, ranges, reserves, and building a defensible budget are all in Lesson 1; the estimation techniques are compared in Lesson 2. Earned value is taught in Module 11 Lesson 1, where it can be applied to a project already under way.
Lab¶
Lab 13 — Estimating Effort and Cost does exactly that, for the University LMS: bottom-up effort, a three-point estimate, risk-derived contingency, and a budget presented as a range with its assumptions attached.
Case study¶
A case on an underestimated project and the corrective action that followed is planned. See the Case Studies overview.
Self-assessment¶
A module quiz is planned. See the Self-Assessment overview.
Key terms¶
Effort · Duration · Cost · Estimate · Contingency reserve · Budget · Earned value · Planned value · Actual cost · Estimate to complete — see the Glossary.