SlideShare a Scribd company logo
1 of 52
Project Estimation:Demystifying the Black Art
How good an estimator are you?
For the following questions… ,[object Object]
 Do not make your ranges either too wide or too narrow
 Make the range so you believe there is a 90% chance of      including the right value
What is the surface temperature of the Sun?
What is the weight of the heaviest blue whale ever recorded?
Quiz Results
We stink at estimation.
Psychology works against us.
Psychology works against us. ,[object Object]
 Protection of pride
 Influence from expectations,[object Object]
 We don’t plan accordingly
 We don’t execute correctly
 We don’t reflect properly,[object Object]
 We don’t plan accordingly
 We don’t execute correctly
 We don’t reflect properly,[object Object]
Probability of correct estimation 100%
Quiz Expectations 90%
Business Expectations 25%
Single Point Estimations > 1%
Under-estimation ,[object Object]
 Reduced chance of on-time completion
 Destructive late-project dynamics,[object Object]
 Student Syndrome,[object Object]
My Business Expectations 50% 25% 75%
We don’t like ranges
Put uncertainty into your estimation practices
The Golden Spiral
Planning Poker
Tainting estimates with customer expectations
We don’t know what  we are estimating
“Build me a house.”
Find your project’s estimation cornerstones
How Many Bedrooms? ,[object Object],   1 stall garage, small or shared yard. ,[object Object],  2 bathrooms, 2 stall garage, yard
How Many Bedrooms? ,[object Object],   defensive responses ,[object Object],   (i.e. size and complexity will fit inside details)
2 Day Crutch Method
2 Day Crutch Method ,[object Object],  of unknown or large features
2 Day Crutch Method ,[object Object],  of unknown or large features ,[object Object],   lengthy known features
2 Day Crutch Method ,[object Object],  of unknown or large features ,[object Object],   lengthy known features ,[object Object],   when something is really unknown
Modifying estimates  with “control knobs”
Psychology works against us. ,[object Object]
 We don’t plan accordingly
 We don’t execute correctly
 We don’t reflect properly,[object Object]
Estimation = Planning “Plans are worthless — but planning is everything.”  —Dwight D. Eisenhower
Psychology works against us. ,[object Object]
 We don’t plan accordingly
 We don’t execute correctly

More Related Content

Similar to Project Estimation: Demystifying the Black Art

Software estimation is crap
Software estimation is crapSoftware estimation is crap
Software estimation is crapIan Garrison
 
Get to Oz by Making Better Strategic Decisions v5
Get to Oz by Making Better Strategic Decisions v5Get to Oz by Making Better Strategic Decisions v5
Get to Oz by Making Better Strategic Decisions v5leepublish
 
Magically predictable software delivery ralf westphal
Magically predictable software delivery   ralf westphalMagically predictable software delivery   ralf westphal
Magically predictable software delivery ralf westphalRenald Wittwer
 
Ryan Ripley - The #NoEstimatesMovement
Ryan Ripley - The #NoEstimatesMovementRyan Ripley - The #NoEstimatesMovement
Ryan Ripley - The #NoEstimatesMovementProjectCon
 
Agile Software Estimation
Agile Software EstimationAgile Software Estimation
Agile Software EstimationSunil Jakkaraju
 
Anti-MOOCs: The design of MACROSIMs
Anti-MOOCs: The design of MACROSIMsAnti-MOOCs: The design of MACROSIMs
Anti-MOOCs: The design of MACROSIMsdws1d
 
Esteem and Estimates (Ti Stimo Fratello)
Esteem and Estimates (Ti Stimo Fratello)Esteem and Estimates (Ti Stimo Fratello)
Esteem and Estimates (Ti Stimo Fratello)Gaetano Mazzanti
 
Shields Capstone Project
Shields Capstone ProjectShields Capstone Project
Shields Capstone ProjectMatt Shields
 

Similar to Project Estimation: Demystifying the Black Art (10)

Software estimation is crap
Software estimation is crapSoftware estimation is crap
Software estimation is crap
 
Get to Oz by Making Better Strategic Decisions v5
Get to Oz by Making Better Strategic Decisions v5Get to Oz by Making Better Strategic Decisions v5
Get to Oz by Making Better Strategic Decisions v5
 
Magically predictable software delivery ralf westphal
Magically predictable software delivery   ralf westphalMagically predictable software delivery   ralf westphal
Magically predictable software delivery ralf westphal
 
Ryan Ripley - The #NoEstimatesMovement
Ryan Ripley - The #NoEstimatesMovementRyan Ripley - The #NoEstimatesMovement
Ryan Ripley - The #NoEstimatesMovement
 
Agile Software Estimation
Agile Software EstimationAgile Software Estimation
Agile Software Estimation
 
Anti-MOOCs: The design of MACROSIMs
Anti-MOOCs: The design of MACROSIMsAnti-MOOCs: The design of MACROSIMs
Anti-MOOCs: The design of MACROSIMs
 
Esteem and Estimates (Ti Stimo Fratello)
Esteem and Estimates (Ti Stimo Fratello)Esteem and Estimates (Ti Stimo Fratello)
Esteem and Estimates (Ti Stimo Fratello)
 
Shields Capstone Project
Shields Capstone ProjectShields Capstone Project
Shields Capstone Project
 
PDC+++ Module 2 Class 3 Visioning
PDC+++ Module 2 Class 3 VisioningPDC+++ Module 2 Class 3 Visioning
PDC+++ Module 2 Class 3 Visioning
 
Enchant at BIMTECH
Enchant at BIMTECHEnchant at BIMTECH
Enchant at BIMTECH
 

Recently uploaded

Buy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From SeosmmearthBuy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From SeosmmearthBuy Verified Binance Account
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel
 
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All TimeCall 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Timegargpaaro
 
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NSCROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NSpanmisemningshen123
 
Falcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial WingsFalcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial WingsFalcon Invoice Discounting
 
Cracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' SlideshareCracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' SlideshareWorkforce Group
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challengeshemanthkumar470700
 
Rice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsRice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsShree Krishna Exports
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAITim Wilson
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptxRoofing Contractor
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1kcpayne
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPanhandleOilandGas
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperityhemanthkumar470700
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with CultureSeta Wicaksana
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityEric T. Tung
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfwill854175
 
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in OmanMifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Omaninstagramfab782445
 
BeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfBeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfDerekIwanaka1
 
Mckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for ViewingMckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for ViewingNauman Safdar
 
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfTVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfbelieveminhh
 

Recently uploaded (20)

Buy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From SeosmmearthBuy Verified TransferWise Accounts From Seosmmearth
Buy Verified TransferWise Accounts From Seosmmearth
 
Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024Marel Q1 2024 Investor Presentation from May 8, 2024
Marel Q1 2024 Investor Presentation from May 8, 2024
 
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All TimeCall 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
Call 7737669865 Vadodara Call Girls Service at your Door Step Available All Time
 
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NSCROSS CULTURAL NEGOTIATION BY PANMISEM NS
CROSS CULTURAL NEGOTIATION BY PANMISEM NS
 
Falcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial WingsFalcon Invoice Discounting: Tailored Financial Wings
Falcon Invoice Discounting: Tailored Financial Wings
 
Cracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' SlideshareCracking the 'Career Pathing' Slideshare
Cracking the 'Career Pathing' Slideshare
 
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow ChallengesFalcon Invoice Discounting: Aviate Your Cash Flow Challenges
Falcon Invoice Discounting: Aviate Your Cash Flow Challenges
 
Rice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna ExportsRice Manufacturers in India | Shree Krishna Exports
Rice Manufacturers in India | Shree Krishna Exports
 
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAIGetting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
Getting Real with AI - Columbus DAW - May 2024 - Nick Woo from AlignAI
 
Pre Engineered Building Manufacturers Hyderabad.pptx
Pre Engineered  Building Manufacturers Hyderabad.pptxPre Engineered  Building Manufacturers Hyderabad.pptx
Pre Engineered Building Manufacturers Hyderabad.pptx
 
Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1Katrina Personal Brand Project and portfolio 1
Katrina Personal Brand Project and portfolio 1
 
PHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation FinalPHX May 2024 Corporate Presentation Final
PHX May 2024 Corporate Presentation Final
 
Falcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to ProsperityFalcon's Invoice Discounting: Your Path to Prosperity
Falcon's Invoice Discounting: Your Path to Prosperity
 
Organizational Transformation Lead with Culture
Organizational Transformation Lead with CultureOrganizational Transformation Lead with Culture
Organizational Transformation Lead with Culture
 
How to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League CityHow to Get Started in Social Media for Art League City
How to Get Started in Social Media for Art League City
 
Arti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdfArti Languages Pre Seed Teaser Deck 2024.pdf
Arti Languages Pre Seed Teaser Deck 2024.pdf
 
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in OmanMifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
Mifepristone Available in Muscat +918761049707^^ €€ Buy Abortion Pills in Oman
 
BeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdfBeMetals Investor Presentation_May 3, 2024.pdf
BeMetals Investor Presentation_May 3, 2024.pdf
 
Mckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for ViewingMckinsey foundation level Handbook for Viewing
Mckinsey foundation level Handbook for Viewing
 
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdfTVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
TVB_The Vietnam Believer Newsletter_May 6th, 2024_ENVol. 006.pdf
 

Project Estimation: Demystifying the Black Art

Editor's Notes

  1. 10,000 F / 6,000 C
  2. 380,000 lbs170 metric tons
  3. Budget, Timelines,
  4. What materials should we use?What is your budget?What is your time frame?What about details X,Y,Z?
  5. By asking how many “bedrooms” you should be able to make a huge amount of assumptions up until you get hit with a modification that breaks the norm. These “normality breakers” however are commonly very out in the open (nobody expects a house builder to come in on time and under budget if you neglected to mention the swimming pool and sun room, therefore it gets mentioned).How many Epics / Themes can I detect early on? (for those using user stories)How many Roles / Persona have been mentioned?How many integration points are needed?Depending on your environment, there might be a completely different set of criteria you might look at as a “bedroom”; however, I do believe that you will always be able to find at least one. The client budget and time frame is always on the forefront of the discussion; however, those are variables that [regardless of what they say] are mutable, their need for a 3 bedroom house is not.
  6. How many Epics / Themes can I detect early onHow many Roles / Persona have been mentioned?How many integration points are needed?Depending on your environment, there might be a completely different set of criteria you might look at as a “bedroom”; however, I do believe that you will always be able to find at least one. The client budget and time frame is always on the forefront of the discussion; however, those are variables that [regardless of what they say] are mutable, their need for a 3 bedroom house is not.
  7. - Estimation : Unbiased, analytical process - Planning: Biased, goal seeking activity Estimates form foundation for plans, not vice versa Hazardous to want the estimation to come out to a particular result Result: Bad estimates *and* bad plans
  8. “Plans are worthless — but planning is everything.” —Dwight D. Eisenhower
  9. - Premature commitments routinely sabotage projects [McConnell 2005]- Meaningful commitments are not possible in the wide part of the cone Effective organizations delay their commitments until they have forced the cone to narrow
  10. Hofstadter's Law: It always takes longer than you expect, even when you take into account Hofstadter's Law.
  11. progress is never linear is the first step in understanding why projects are never under budget
  12. One of the best reasons [from a management perspective] to adopt Scrum is the fact that iterations are “accountable commitments” to what the team could accomplish in a week…nobody should ever be held accountable for estimationsBeing a responsible estimator is important, but being responsible for your estimates is not. You have to build the solution, you should not also have to manage the budget. Put your estimations in ranges with probabilities and let your manager manage the costs and risks of the project.