As mentioned on the ISBSG workshop in El Segundo and the MAIN track in the IWSM in Assisi, the Basis of Estimate - Software Services is ready for review.
The document is intended to set a best practice for structuring an Estimate for Software Services.
You are invited to review it.
If interested you're allowed to forward the attached document to reviewers.
Comment by the reviewers can be mailed directly to me: Ton Dekkers ton.dekkers@nesma.nl
The due date for comments is set to Sunday, December 16 2012.
Next step will be incorporating the useful suggestions and preparing a version for the 3rd and final review within AACE.
Establishing a Project Controls Function at the UK Defence Equipment & Suppor...Project Controls Expo
Ā
Establishing a Project Controls Function at the UK Defence Equipment & Support Organisation by Dr. Tim Sheldon - Head of Project Controls (DE&S) for Ministry of Defence, UK at at Project Controls Expo 2016, Arsenal Stadium, London.
Establishing a Project Controls Function at the UK Defence Equipment & Suppor...Project Controls Expo
Ā
Establishing a Project Controls Function at the UK Defence Equipment & Support Organisation by Dr. Tim Sheldon - Head of Project Controls (DE&S) for Ministry of Defence, UK at at Project Controls Expo 2016, Arsenal Stadium, London.
What makes a good plan, and how do you know youāve got one? by "Paul Kidston ...Project Controls Expo
Ā
What makes a good plan, and how do you know youāve got one? by "Paul Kidston - Director of Project Controls for Costain Group PLC, UK" at Project Controls Expo 2017, Arsenal Stadium, London
SAP Investment Management Systems - 15 Indications that you need an UpgradingIQX Business Solutions
Ā
This Slideshare lists 15 common business issues faced by managers that are drivers for an upgrade of your SAP Capital Investment (CAPEX) system. The effective allocation of limited financial resources is one of the most important responsibilities of management. Yet many executives complain that this vitally important business process is not well supported by their current IT systems.
Firstly, the annual budgeting process is painful. Managers are faced with funding requests from all directions and are consistently: classifying, fairly evaluating, and prioritizing these investment proposals. This is a stressful and often manually intensive process, invariably involving the exchange of multiple versions of spreadsheets. Through a series of stakeholder meetings and board presentations, the budget is finally approved.
This annual budget is then the responsibility of management to steward responsibly. This is where the second challenge arises: nothing ever goes exactly to plan. During the year, actual capital expenditure requests must be linked and reconciled against this approved CAPEX budget. This process is further complicated by trying to compare and prioritize competing initiatives that deliver value, all within the hard CAPEX budget constraint and in accordance with delegation of authority and procurement policies.
Thirdly, once initiatives are approved, the process of ensuring execution to budget and realization of purported benefits typically relies heavily on inefficient and high-risk manual processes.
Understanding the five immutable principles to project success will help project managers deliver on time, on budget when talking projects of any size, in any domain
Five immutable principles of project successGlen Alleman
Ā
All successful projects adhere to five immutable principles during their lifecycle. These principles are independent of any project or program domain or context in that domain. They are also independent of any project management or product development method as well, including Agile. They ask five questions that must have credible answers that establish the foundation for success. Without credible answers to these 5 questions, the project has little hope of success.
Increasing the Probability of Project Success with Five Principles and PracticesGlen Alleman
Ā
There are many approaches to managing projects in every domain.
This seminar lays the foundations for increasing the probability of project success, no matter the domain, what technology, what approach to delivering the outcomes of the project.
The principles of this approach are immutable.
The practices for implementing the principles are universally applicable.
Each chart in this presentation, contains guidance that can be applied to your project, no matter the domain.
In our short hour here, weāre going to cover a lot of material.
The bibliography contains the supporting materials we can tailor to your individual project
The management of risk is a critical success factor of any project or program. This document is a collection of risk management categories that are used to ask the question ādid you think about this risk and its impact on our probability of success?ā
How NYU Langone Med Center integrated Primavera Unifier and PeopleSoft to enh...p6academy
Ā
Referenced: www.p6academy.com
Source: http://coll15.mapyourshow.com
NYU Langone Medical Center went live with a systems upgrade in order to deploy capital more effectively. With over 1,000 beds, 6 million sq. feet and a multi-billion dollar capital plan the Medical Center needed to streamline their construction project management processes and enhance their integration between their project and financial systems for superior planning and execution across their entire portfolio. To achieve this objective they engaged with Enstoa to deploy Primavera Unifier, integrate PeopleSoft with Unifier, launch a change management program and execute an extensive end user adoption/ training program. The Medical Center went through a transformative process in order to produce substantial cost savings, improve their quality of service, and mitigate risks with project execution.
A presentation by Andrew Langridge, made at the APM South Wales and West of England branch seminar 'Project Controls: A 1 day Seminar' on Wednesday, 2nd October 2013
Making Agile Development work in Government ContractingGlen Alleman
Ā
Before any of the current āagileā development
methods, Earned Value Management provided information
for planning and controlling complex projects by
measuring how much āvalueā was produced for a given
cost in a period of time. One shortcoming of an agile
development method is its inability to forecast the future
cost and schedule of the project beyond the use of āyesterdays
weatherā metrics. These agile methods assume
the delivered value, āvelocityā in the case of XP, is compared
with the estimated value ā this is a simple comparison
between budget and actual cost resulting in a Cost
Variance.
The Basis of Estimate is the starting point for Closed Loop Control project management.
How much will it cost? When will we be done? What is going to be delivered for that cost and time?
These are random numbers "estimated" by a variety of means.
But the BOEs are the "steering targets" for the closed loop ocntrol system
What makes a good plan, and how do you know youāve got one? by "Paul Kidston ...Project Controls Expo
Ā
What makes a good plan, and how do you know youāve got one? by "Paul Kidston - Director of Project Controls for Costain Group PLC, UK" at Project Controls Expo 2017, Arsenal Stadium, London
SAP Investment Management Systems - 15 Indications that you need an UpgradingIQX Business Solutions
Ā
This Slideshare lists 15 common business issues faced by managers that are drivers for an upgrade of your SAP Capital Investment (CAPEX) system. The effective allocation of limited financial resources is one of the most important responsibilities of management. Yet many executives complain that this vitally important business process is not well supported by their current IT systems.
Firstly, the annual budgeting process is painful. Managers are faced with funding requests from all directions and are consistently: classifying, fairly evaluating, and prioritizing these investment proposals. This is a stressful and often manually intensive process, invariably involving the exchange of multiple versions of spreadsheets. Through a series of stakeholder meetings and board presentations, the budget is finally approved.
This annual budget is then the responsibility of management to steward responsibly. This is where the second challenge arises: nothing ever goes exactly to plan. During the year, actual capital expenditure requests must be linked and reconciled against this approved CAPEX budget. This process is further complicated by trying to compare and prioritize competing initiatives that deliver value, all within the hard CAPEX budget constraint and in accordance with delegation of authority and procurement policies.
Thirdly, once initiatives are approved, the process of ensuring execution to budget and realization of purported benefits typically relies heavily on inefficient and high-risk manual processes.
Understanding the five immutable principles to project success will help project managers deliver on time, on budget when talking projects of any size, in any domain
Five immutable principles of project successGlen Alleman
Ā
All successful projects adhere to five immutable principles during their lifecycle. These principles are independent of any project or program domain or context in that domain. They are also independent of any project management or product development method as well, including Agile. They ask five questions that must have credible answers that establish the foundation for success. Without credible answers to these 5 questions, the project has little hope of success.
Increasing the Probability of Project Success with Five Principles and PracticesGlen Alleman
Ā
There are many approaches to managing projects in every domain.
This seminar lays the foundations for increasing the probability of project success, no matter the domain, what technology, what approach to delivering the outcomes of the project.
The principles of this approach are immutable.
The practices for implementing the principles are universally applicable.
Each chart in this presentation, contains guidance that can be applied to your project, no matter the domain.
In our short hour here, weāre going to cover a lot of material.
The bibliography contains the supporting materials we can tailor to your individual project
The management of risk is a critical success factor of any project or program. This document is a collection of risk management categories that are used to ask the question ādid you think about this risk and its impact on our probability of success?ā
How NYU Langone Med Center integrated Primavera Unifier and PeopleSoft to enh...p6academy
Ā
Referenced: www.p6academy.com
Source: http://coll15.mapyourshow.com
NYU Langone Medical Center went live with a systems upgrade in order to deploy capital more effectively. With over 1,000 beds, 6 million sq. feet and a multi-billion dollar capital plan the Medical Center needed to streamline their construction project management processes and enhance their integration between their project and financial systems for superior planning and execution across their entire portfolio. To achieve this objective they engaged with Enstoa to deploy Primavera Unifier, integrate PeopleSoft with Unifier, launch a change management program and execute an extensive end user adoption/ training program. The Medical Center went through a transformative process in order to produce substantial cost savings, improve their quality of service, and mitigate risks with project execution.
A presentation by Andrew Langridge, made at the APM South Wales and West of England branch seminar 'Project Controls: A 1 day Seminar' on Wednesday, 2nd October 2013
Making Agile Development work in Government ContractingGlen Alleman
Ā
Before any of the current āagileā development
methods, Earned Value Management provided information
for planning and controlling complex projects by
measuring how much āvalueā was produced for a given
cost in a period of time. One shortcoming of an agile
development method is its inability to forecast the future
cost and schedule of the project beyond the use of āyesterdays
weatherā metrics. These agile methods assume
the delivered value, āvelocityā in the case of XP, is compared
with the estimated value ā this is a simple comparison
between budget and actual cost resulting in a Cost
Variance.
The Basis of Estimate is the starting point for Closed Loop Control project management.
How much will it cost? When will we be done? What is going to be delivered for that cost and time?
These are random numbers "estimated" by a variety of means.
But the BOEs are the "steering targets" for the closed loop ocntrol system
Presentatie van de NESMA voorjaarsconferentie 2012 met daar aan toegevoegd de ideeƫn voor nieuwe werkgroepen op de vijf aandachtsgebieden die NESMA op het oog heeft voor 2020.
IT estimation must make a move from size estimation that is translated to cost to an integral cost estimation practice. This is supported by the Basis of Estimate, a joint standard from NESMA and AACEi. Added is a special welcom for the IWSM 2014 in Rotterdam.
PMP Exam Flashcards common definitions 7th edition original v2.0Vinod Kumar, PMPĀ®
Ā
The Project Management Professional (PMP) exam is quite hard. The exam consists of 200 multiple-choice questions in a period of only four hours. The questions are written for a high difficulty level and are designed to test your understanding of the subjects and the ability to problem solve in real life.
Flashcards are small note cards used for testing and improving memory through practiced information retrieval.
Hence, I have captured 342 of the most important common definitions around Project Management in the Microsoft PowerPoint Presentation format aligned with the NEW 2021 PMP Exam and the PMBOK Guide, it will be very useful while you are preparing for your PMP exam to understand the concepts and no need to memorize anymore, also you can quickly review during your free time.
At doubt you can easily do a quick search for the required Common Definition.
All the very best for your PMP Examination!
Assignment 1/AgileProjectCharterTemplateExample.pdf
C Example Project/Program Charter
Template
THIS APPENDIX CONTAINS AN EXAMPLE of a project charter template that can be used to define the
macro layer in a hybrid, managed agile development approach. This template is provided as an
example and is intended to be customized to fit the project and business environment that it is
used in.
Project overview
Background
Provide a brief description of the background behind the problem that the project or program is
intended to address to a sufficient level to allow the reader to understand the context of the problem.
Problem Statement
Provide a brief description of the problem that the project or program is intended to address from a
business or operational management perspective.
Project Vision
Write a concise vision statement that summarizes the purpose and intent of the project and describes
what the world will be like when the project is completed. The vision statement should reflect a bal-
anced view that will satisfy the needs of diverse customers as well as those of the developing organiza-
tion. It may be somewhat idealistic, but it should be grounded in the realities of existing or anticipated
387
388 E X A M P L E P R O J E C T / P R O G R A M C H A R T E R T E M P L AT E
customer markets, enterprise architectures, organizational strategic directions, and cost and resource
limitations. Consider using the following template:
ā¾ For (target customer)
ā¾ Who (statement of the need or opportunity)
ā¾ The (product name)
ā¾ Is a (product category)
ā¾ That (key benefit, compelling reason to buy or use)
Success Criteria
What are the success criteria for the project? How do you know if the project has been successful?
Project Approach/Development Process
Identify the development process and/or any deviations from the standard methodology that will be
used for this project or program.
Project plan
This section outlines the plan for managing the project.
Scope
The project scope defines the range of the proposed products and services the project will deliver.
Scope can be represented using a context diagram, an event list, and/or a feature table. Scope might
be subdivided into the scope of the initial product release and planned growth strategies for subse-
quent releases. It is also important to define what the project will not include, so describe limitations
and exclusions, such as product features or characteristics that a stakeholder might anticipate, but
which are not planned to be included in the project.
In Scope
The project scope provides an overview of the user stories that the project will deliver. Scope might be
subdivided into the scope of the initial product release and planned growth strategies for subsequent
releases.
Release Priority Story # Story Name Description
E X A M P L E P R O J E C T /P R O G R A M C H A R T E R T E M P L AT E 389
Out of Scope
Itās also important to define what the ...
This is PMBOK Guide Planning Process Group Part three. It includes five Knowledge Area - Quality, Human Resource, Communications, Procurement and Stakeholder management - with five processes - Plan Quality Management, Plan Human Resource Management, Plan Communications Management, Plan Procurement Management, Plan Stakeholder Management - .
The Use of Functional Size in the Industry.pdfNesma
Ā
In this webinar, the emphasis is on the use of Functional Size in the Industry, and we focus on several use cases where functional size helps organizations to make impactful decisions based on objective metrics and data.
While traditional performance metrics often measure individual output or adherence to pre-defined plans, measuring performance in agile teams requires a different approach. Agile teams operate in iterative cycles, prioritizing adaptability and learning over rigid goals. So, why do organizations still measure their performance?
By using the right metrics in the right way, organizations can empower their agile teams to thrive and deliver exceptional results.
Software Cost Estimation webinar January 2024.pdfNesma
Ā
In this webinar you will learn why Software Cost Estimation is important, what is the Software Cost Estimation Body of Knowledge for Software and the ways you can become a professional certified software cost estimator SCEC!
The journey of UNISON Cost Engineering in the field of automotive software cost estimation started in 2018. The expectation is that in 2030 the cost of software will be 50% of the total production cost of a car. To help the OEM get a proper understanding of the software development cost they need to use some form of size measurement to compare, challenge and control the cost of software development by the software vendors.
The COSMIC battle between David and Goliath - Paul HusseinNesma
Ā
No more exhaustive and emotional discussions on price and deliverables. Predictable prices for projects and changes. No escalating maintenance costs. This can only be done by specifying exactly what you want and outsource it to the right service providers that have the required platform already in place.
Succesful Estimating - It's how you tell the story - Amritpal Singh AgarNesma
Ā
Estimating the Cost of something is a profession. But then you have to tell the story about the estimate to whoever needs to hear that story. The success of how you tell the story is determining the success of the cost estimate.
CEBoK for Software Past Present Future - Megan JonesNesma
Ā
The Cost Estimation Body of Knowledge for Software is in development for a number of years within ICEAA. First as a section of the general CEBoK, but it will be established as a separate CEBoK-S for Software, since software is becoming very prominent within the cost estimation community.
Agile Development and Agile Cost Estimation - A return to basic principles - ...Nesma
Ā
Is there a natural tension between agile development and traditional cost management or do we need to return to basic principles? Even when you are flexible, you still need to make a plan, build an estimate and measure what you have achieved.
Resolving Cost Management and Key Pitfalls of Agile Software Development - Da...Nesma
Ā
Agile software development does not always live up to the promises. Especially in the field of IT Cost Management. Without proper estimation and tracking the value cannot be made clear.
Project Succes is a Choice - Joop SchefferlieNesma
Ā
Project success is a choice. Don't stop thinking about the best way to do a project, agile or not. Select the best competencies to ensure that the project will be successful.
Deze presentatie beschrijft een praktische implementatie van het gebruik van Nesma functiepunten in Agile deliveries. Deze presentatie is gepresenteerd door Richard Sweer van Infinity tijdens de webinar Afrekenen met functiepunten. Voor meer info: www.nesma.org; conference@nesma.org.
Software Delivery At the Speed of AI: Inflectra Invests In AI-Powered QualityInflectra
Ā
In this insightful webinar, Inflectra explores how artificial intelligence (AI) is transforming software development and testing. Discover how AI-powered tools are revolutionizing every stage of the software development lifecycle (SDLC), from design and prototyping to testing, deployment, and monitoring.
Learn about:
ā¢ The Future of Testing: How AI is shifting testing towards verification, analysis, and higher-level skills, while reducing repetitive tasks.
ā¢ Test Automation: How AI-powered test case generation, optimization, and self-healing tests are making testing more efficient and effective.
ā¢ Visual Testing: Explore the emerging capabilities of AI in visual testing and how it's set to revolutionize UI verification.
ā¢ Inflectra's AI Solutions: See demonstrations of Inflectra's cutting-edge AI tools like the ChatGPT plugin and Azure Open AI platform, designed to streamline your testing process.
Whether you're a developer, tester, or QA professional, this webinar will give you valuable insights into how AI is shaping the future of software delivery.
DevOps and Testing slides at DASA ConnectKari Kakkonen
Ā
My and Rik Marselis slides at 30.5.2024 DASA Connect conference. We discuss about what is testing, then what is agile testing and finally what is Testing in DevOps. Finally we had lovely workshop with the participants trying to find out different ways to think about quality and testing in different parts of the DevOps infinity loop.
UiPath Test Automation using UiPath Test Suite series, part 3DianaGray10
Ā
Welcome to UiPath Test Automation using UiPath Test Suite series part 3. In this session, we will cover desktop automation along with UI automation.
Topics covered:
UI automation Introduction,
UI automation Sample
Desktop automation flow
Pradeep Chinnala, Senior Consultant Automation Developer @WonderBotz and UiPath MVP
Deepak Rai, Automation Practice Lead, Boundaryless Group and UiPath MVP
Generating a custom Ruby SDK for your web service or Rails API using Smithyg2nightmarescribd
Ā
Have you ever wanted a Ruby client API to communicate with your web service? Smithy is a protocol-agnostic language for defining services and SDKs. Smithy Ruby is an implementation of Smithy that generates a Ruby SDK using a Smithy model. In this talk, we will explore Smithy and Smithy Ruby to learn how to generate custom feature-rich SDKs that can communicate with any web service, such as a Rails JSON API.
LF Energy Webinar: Electrical Grid Modelling and Simulation Through PowSyBl -...DanBrown980551
Ā
Do you want to learn how to model and simulate an electrical network from scratch in under an hour?
Then welcome to this PowSyBl workshop, hosted by Rte, the French Transmission System Operator (TSO)!
During the webinar, you will discover the PowSyBl ecosystem as well as handle and study an electrical network through an interactive Python notebook.
PowSyBl is an open source project hosted by LF Energy, which offers a comprehensive set of features for electrical grid modelling and simulation. Among other advanced features, PowSyBl provides:
- A fully editable and extendable library for grid component modelling;
- Visualization tools to display your network;
- Grid simulation tools, such as power flows, security analyses (with or without remedial actions) and sensitivity analyses;
The framework is mostly written in Java, with a Python binding so that Python developers can access PowSyBl functionalities as well.
What you will learn during the webinar:
- For beginners: discover PowSyBl's functionalities through a quick general presentation and the notebook, without needing any expert coding skills;
- For advanced developers: master the skills to efficiently apply PowSyBl functionalities to your real-world scenarios.
Slack (or Teams) Automation for Bonterra Impact Management (fka Social Soluti...Jeffrey Haguewood
Ā
Sidekick Solutions uses Bonterra Impact Management (fka Social Solutions Apricot) and automation solutions to integrate data for business workflows.
We believe integration and automation are essential to user experience and the promise of efficient work through technology. Automation is the critical ingredient to realizing that full vision. We develop integration products and services for Bonterra Case Management software to support the deployment of automations for a variety of use cases.
This video focuses on the notifications, alerts, and approval requests using Slack for Bonterra Impact Management. The solutions covered in this webinar can also be deployed for Microsoft Teams.
Interested in deploying notification automations for Bonterra Impact Management? Contact us at sales@sidekicksolutionsllc.com to discuss next steps.
Essentials of Automations: Optimizing FME Workflows with ParametersSafe Software
Ā
Are you looking to streamline your workflows and boost your projectsā efficiency? Do you find yourself searching for ways to add flexibility and control over your FME workflows? If so, youāre in the right place.
Join us for an insightful dive into the world of FME parameters, a critical element in optimizing workflow efficiency. This webinar marks the beginning of our three-part āEssentials of Automationā series. This first webinar is designed to equip you with the knowledge and skills to utilize parameters effectively: enhancing the flexibility, maintainability, and user control of your FME projects.
Hereās what youāll gain:
- Essentials of FME Parameters: Understand the pivotal role of parameters, including Reader/Writer, Transformer, User, and FME Flow categories. Discover how they are the key to unlocking automation and optimization within your workflows.
- Practical Applications in FME Form: Delve into key user parameter types including choice, connections, and file URLs. Allow users to control how a workflow runs, making your workflows more reusable. Learn to import values and deliver the best user experience for your workflows while enhancing accuracy.
- Optimization Strategies in FME Flow: Explore the creation and strategic deployment of parameters in FME Flow, including the use of deployment and geometry parameters, to maximize workflow efficiency.
- Pro Tips for Success: Gain insights on parameterizing connections and leveraging new features like Conditional Visibility for clarity and simplicity.
Weāll wrap up with a glimpse into future webinars, followed by a Q&A session to address your specific questions surrounding this topic.
Donāt miss this opportunity to elevate your FME expertise and drive your projects to new heights of efficiency.
Key Trends Shaping the Future of Infrastructure.pdfCheryl Hung
Ā
Keynote at DIGIT West Expo, Glasgow on 29 May 2024.
Cheryl Hung, ochery.com
Sr Director, Infrastructure Ecosystem, Arm.
The key trends across hardware, cloud and open-source; exploring how these areas are likely to mature and develop over the short and long-term, and then considering how organisations can position themselves to adapt and thrive.
Accelerate your Kubernetes clusters with Varnish CachingThijs Feryn
Ā
A presentation about the usage and availability of Varnish on Kubernetes. This talk explores the capabilities of Varnish caching and shows how to use the Varnish Helm chart to deploy it to Kubernetes.
This presentation was delivered at K8SUG Singapore. See https://feryn.eu/presentations/accelerate-your-kubernetes-clusters-with-varnish-caching-k8sug-singapore-28-2024 for more details.
The Art of the Pitch: WordPress Relationships and SalesLaura Byrne
Ā
Clients donāt know what they donāt know. What web solutions are right for them? How does WordPress come into the picture? How do you make sure you understand scope and timeline? What do you do if sometime changes?
All these questions and more will be explored as we talk about matching clientsā needs with what your agency offers without pulling teeth or pulling your hair out. Practical tips, and strategies for successful relationship building that leads to closing the deal.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...BookNet Canada
Ā
The publishing industry has been selling digital audiobooks and ebooks for over a decade and has found its groove. Whatās changed? What has stayed the same? Where do we go from here? Join a group of leading sales peers from across the industry for a conversation about the lessons learned since the popularization of digital books, best practices, digital book supply chain management, and more.
Link to video recording: https://bnctechforum.ca/sessions/selling-digital-books-in-2024-insights-from-industry-leaders/
Presented by BookNet Canada on May 28, 2024, with support from the Department of Canadian Heritage.
Transcript: Selling digital books in 2024: Insights from industry leaders - T...
Ā
Draft CE-74 v03 for MAIN review
1. AACE International Recommended Practice No. CE-74
BASIS OF ESTIMATE - SOFTWARE SERVICES
TCM Framework: 7.3 ā Cost Estimating and Budgeting
November 1, 2012
PURPOSE
This document describes the Basis of Estimate specific to Software Services (i.e. Software Development,
Maintenance & Support, Infrastructure, Research & Development, etc.). The Netherlands Software
Metrics Association (NESMA, www.nesma.nl) started this initiative to support the Software Services
Industry with a document that can be used as guideline for the structure and content of a basis of
estimate. To get a broader acceptance both the NESMA and the Measurement Associations International
Network (MAIN, www.mai-net.org) reviewed the document before AACE acceptance.
The basis of estimate Software Services is based upon the AACEās the Recommended Practice (RP)
34R-05. AACE Internationalās Total Cost Management (TCM) Framework identifies a basis of estimate
(BOE) document as a required component of a cost (/effort/duration) estimate. This document will act not
just as a RP of AACE International but also by MAIN.
In the TCM Framework, the BOE is characterized as the one deliverable that defines the scope of the
engagement and ultimately becomes the basis for change management. When prepared correctly, any
person with (capital) project experience can use the BOE to understand and assess the estimate,
independent of any other supporting documentation. A well-written BOE achieves those goals by clearly
and concisely stating the purpose of the estimate being prepared (i.e. cost/ effort/duration study, project
options, funding, etc.), the project scope, cost basis, allowances, assumptions, exclusions, cost risks and
opportunities, contingencies, and any deviations from standard practices. For Software Services the effort
expended is the main driver for cost and duration. In addition the BOE is a documented record of
pertinent communications that have occurred and agreements that have been made between the
estimator and other stakeholders.
A well prepared basis of estimate will:
Document the overall engagement scope.
Communicate the estimatorās knowledge of the engagement by demonstrating an understanding
of scope, quality and duration as it relates to cost.
Alert the stakeholders to potential cost risks and opportunities.
Provide a record of key communications made during estimate preparation.
Provide a record of all documents used to prepare the estimate.
Act as a source of support during dispute resolutions.
Establish the initial baseline for scope, quantities, effort, duration and cost for use in engagement
control.
Provide the historical relationships between baselined estimates throughout the project lifecycle.
Facilitate the review and validation of the estimates.
This RP is intended to be a guideline, not a standard. It is understood that not all organizations that
prepare estimates employ the same processes and practices, and therefore, may opt to use this
information either in part or in its entirety.
Copyright 2012 AACE International, Inc. AACE International Recommended Practices
2. Basis of Estimate 2 of 7
November 1, 2012
RECOMMENDED PRACTICE
The primary intent of this RP is to provide a guideline for the topics and contents to be included in typical
BOE. However, before describing the template contents there are a few points of significance worth
noting. A basis of estimate should:
Be factually complete, but concise.
Be able to support facts and findings.
Identify estimating team members and their roles.
Describe the tools, techniques, estimating methodologies, and data used to develop the
estimates.
Identify other projects that were referenced or benchmarked during estimate preparation.
Be prepared in parallel with the estimate.
Establish the context of the estimate, and support estimate review and validation.
Qualify any rates or factors that are referenced either in the estimate or BOE; e.g. productivity
can be expressed as either units/time (function points/hour) or time/units (hours/ function points).
The following describes the suggested topics and contents included in a typical BOE.
Purpose
In this initial section of a basis of estimate, the estimator should provide a brief and concise description for
the total architectural solution for the engagement. The type of services should be identified (i.e., new
development, addition to existing, migration, infrastructure, etc.), as well as the type and capacity of the
staffing, the location (onshore/offshore/mix), and the overall duration of the engagement.
Engagement Scope Description
This section decomposes the solution into its constituent elements; the Product Breakdown Structure
(PBS). For every element it must be known what is to be provided; how it will be provided; and the
activities (gives the work breakdown structure) necessary to deliver it. Itās also good practice to indicate
the primary roles that will be involved with the engagement. Be as thorough as necessary, without being
overly descriptive, so as to adequately explain the scope of work being estimated.
Methodology
The BOE should indicate the primary estimating methodology (functional size based, expert based,
analogy based, process metrics based, parametric) used to prepare the estimate. This should include
documentation of the use of resources, historical data and benchmarking. Documenting the level of effort
or man-hours used in preparation of the estimate may also be helpful.
Estimate Classification
The AACE International estimate classification should be identified, along with reasons or justification
used in the selection of the estimate classification [1].
Class % Definition complete Purpose accuracy
5 0% to 2% Screening or feasibility 4 to 20
4 1% to 15% Concept study or feasibility 3 to 12
3 10% to 40% Budget authorization or control 2 to 6
2 30% to 75% Control or bid/tender 1 to 3
1 65% to 100% Check estimate or bid/tender 1
Note: Accuracy Range (Typical +/- range relative to index of 1(i.e. Class 1 estimate)
If the range index value of "1" represents +10/-5%, then an index value of 10 represents +100/-50%.
Copyright 2012 AACE International, Inc. AACE International Recommended Practices
3. Basis of Estimate 3 of 7
November 1, 2012
Design Basis
Company standards will typically specify the (non) functional and project information required for the
classification of the estimate that is being prepared. In this section, the estimator will identify the types
and status of engineering and design deliverables that were provided to prepare the estimate including
any design basis assumptions. Two attachments to the estimate basis should be referenced and āpublic
availableā: 1) an estimate deliverables checklist that is aligned with estimating process; and 2) a listing of
all architectural documents (including revision number and date), a well as other design information, such
as (non) functional requirements, hardware and software lists, units of measure etc.
In addition it may be required to document specific quantity metrics for particular services, such as
training quantities, ticket volumes, work space volumes, database size, etc. These may be organized by
facilities, training partners or data centers.
If Common of the Shelf (COTS) or dedicated solution components (subcontractor) are provided, the
estimator should identify specifically how this will integrate within the total solution.
Sizing Basis
This section documents the methods used to measure the size of the PBS. The methods used for
measuring the unit size
Requirements; number of use cases, number of backlog items, etc.
Functional size; Function points (Measurement methods: IFPUG, NESMA, COSMIC, FiSMA, etc.) [2]
Technical size; (source) lines of code, number of interfaces, modules, etc.
Service size: number of incidents, tickets, users, locations, etc.
The overall assumptions, probability and potential scope creep of the size should be identified. For
functional size also the expected error range, the level of accuracy and the method of āmeasuringā (e.g.
Backfired or detailed measured).
Effort Basis
This section documents the methods (and tools) used to convert size into effort. The effort will be based
on the required activities to deliver the required product /services related to the engagement criteria
(delivery constraints, service level) and basis (benchmark, historical data).
Planning Basis
This section documents the management, engineering, design, procurement, fabrication, and
construction approaches to the engagement. The contracting and resource strategies should be
identified, as well as any assumptions that were made with regard to the schedule (gross or net hours,
hours worked per period, shifts worked per day (24/7 services), holidays, etc.) and planned use of
overtime. Any assumptions made regarding architecture, quality criteria, delivery constraints (deadline,
fixed price, sourcing construction, etc.), use of critical resources should also be noted here.
The overall engagement schedule and key milestones should be identified.
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Cost Basis
Describe the methods and sources used for determining all unit, effort, subcontract, material and
expenditures costs. Identify the following (if used):
The costing per unit / effort hours and all productivity adjustments. Provide appropriate detail if
costing vary by role and/or location within the project (architecture, process, sourcing construction,
etc.) and reference data.
All wage rates used (including sourcing construction). Identify all items included in all-in rates.
Pricing sources for all major hardware and software (vendor quotes, historical data, etc,) including
any discount strategies.
COTS pricing sources.
Pricing source for all start-up costs.
Pricing source and methodology for overhead costs (management, housing, etc.). Document the
basis for any contractor fee costs.
Pricing source and methodology for costs such as freight, taxes, duties, etc.
Pricing source for liabilities.
Currency exchange rates if applicable, as well as the stability and/or volatility of rates.
Contingency development and basis.
Reservations (warranty, transfer, etc) methodology and basis.
Location factors used and the basis for these factors.
Influence of local market conditions.
Capital costs (inflation, cash flow charge) expense costs, or other categorization as necessary.
Any other pricing factors or external influences that may have a significant impact on engagement
cost should be identified.
Allowances
This section should describe any allowances that have not been detailed in the body of the estimate.
Assumptions
Any other assumptions made by the estimator but not documented elsewhere in the estimate basis
should be included in this section if not yet mentioned before. This may include such assumptions as the
availability of key resources, parametric setting (tool settings), dependencies on other projects, etc. Small
assumptions can change into major assumptions throughout the life of the project. Therefore, it is better
to document assumptions then not to document at all.
Exclusions
Potential items of cost which a reviewer might associate with the engagement should be documented by
the estimator, but for which no costs have been included in the estimate. Acceptance Tests, Conversion,
Migration, Implementation, Training, extended warranty, changes of scope, taxes, financing costs,
licensing costs, etc. are examples of potential items that may need to be identified.
Exceptions
The estimator should identify any anomalies or variances to agreed upon standard estimating practices
(organizational standards, tender standards) .This section should document any significant deviations
from the engagement deliverables normally required for the applicable class of estimate. A good practice
is to provide a checklist as an attachment to the BOE that will document any exceptions that are
identified. This checklist should correspond to the agreed standard estimating practices.
Risks and Opportunities
Any areas of the estimate containing significant risk or opportunity should be identified. All assumptions
need to be assessed as risk. If a formal risk analysis study has been prepared then it should be
described (e.g. methodology, technique, etc.). In particular, this section should identify those elements
that have been identified with high or very high risk or opportunity values related to cost, duration, quality
and/or safety critical measures). The risk analysis report (or summary) should be provided as an
attachment to the BOE.
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Containments
Containments are cost elements in the estimate related to measures included to prevent and/or mitigate
the identified risks. The activities are indentified in the risk analysis report. These may impact not only
cost but also duration.
Contingencies
Contingency is a cost element of the estimate used to cover the uncertainty and variability associated
with a cost estimate, and unforeseeable elements of cost within the defined project scope. Contingency
covers inadequacies in complete project scope definition, estimating methods, and estimating data.
Contingency specifically excludes changes in project scope, and unforeseen major events such as
earthquakes, prolonged labor strikes, etc. The amount of contingency included in the estimate should be
identified, as well as the methods used to determine the contingency amount. If risk analysis techniques
were utilized to develop the contingency amount, the associated confidence level should also be
identified.
Management Reserve
Contingency is not intended to cover the costs associated with changes in engagement scope. E.g. if the
engagement needs to provide an allowance for anticipated changes in scope, or to cover the costs for
items that may be required but have not yet been specifically identified as being included in the current
engagement scope, then that amount of cost, typically referred to as management reserve, should be
identified here.
The intended purpose and use of management reserve should be clearly identified. The approval
process, management and tracking of the management reserve should also be clearly identified.
Reconciliation
Provide an overview of the major differences between the new or re-baselined estimate and the last
published estimate prepared for this engagement. Identify the cost/duration impacts due to scope
changes, pricing updates, progress, productivity adjustments, estimate refinement, etc. A more detailed
reconciliation or cost trending report can be provided as an additional attachment if necessary.
Benchmarking
This section should document any comparisons of overall estimate metrics, ratios, and factors with similar
engagements, historical data, and industry data (e.g. International Software Benchmarking Standards
Group [3]). References used in the benchmark comparisons should be similar in process type and overall
value. If significant variations of the estimated values versus the benchmarks exist, those inconsistencies
should be identified and explained and/or reconciliated. A more detailed benchmark analysis report may
be included as an attachment to the BOE.
Estimate Quality Assurance
Since estimate reviews are the means for testing the quality of the estimate, this section of the BOE
should identify all estimate reviews that have taken place to date, and any additional reviews that are
proposed to take place. All review comments or analysis should be included as an attachment to the BO,
In case of an external review the review should include who executed the review, when it was conducted
and which references (models) are used).
Estimating Team
In this final section, all members of the estimating team should be identified, including roles and
responsibilities.
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Attachments
Several supporting documents will generally be included with the basis of estimate.
1) Attachment A: Estimate Deliverables Checklist
Attachment A: Estimate Deliverables Checklist
Attach a completed estimate deliverables checklist indicating the engagement deliverables that should be
provided to support preparation of the estimate for the associated estimate classification, and whether
they were in fact available during preparation of the estimate.
2) Attachment B: Reference Documents
Attachment B: Reference Documents
Document the sizing report, requirements, designs, texts, notes, specifications, and other references
used in developing the estimate. Identify the revisions and date of issue for key documents.
Additional Attachments
Include any other attachments that may be necessary or required (reconciliation report, benchmarking
report, risk analysis report, etc.).
LEVEL OF DETAIL IN THE BASIS OF ESTIMATE
It is often not a simple matter to determine the amount of detail that should be provided in a BOE. Several
factors may come into play during the preparation of the estimate that will help determine the level of
detail. However, it is the estimatorās best judgment that will ultimately determine the appropriate level.
Level of Engagement Definition
Estimates are prepared at various stages of an engagement. A more detailed estimate will generally
require a more detailed BOE; however that is not always the case.
A conceptual estimate will most likely be based on a limited amount of scope but may require a more
detailed basis of estimate.
It's not uncommon for a BOE for a conceptual estimate to be more thorough than one prepared for a
more detailed estimate because there are often more assumptions made at the conceptual stage of an
engagement that require greater documentation.
Conversely, there may be times when the engagement definition is so complete or simplistic that a BOE
does not require a great amount of detail. A three or four page document may be sufficient to convey the
information provided in the BOE.
Cost Value and/or Impact of the Engagement
Typically, an engagement with more impact (high cost, critical duration, high quality) will require a more
detailed BOE. However, engagements with lesser cost value and/or less impact can require an extensive
BOE to fully communicate major assumptions that constrain or reduce the cost.
Type of Engagement
The type of engagement can also affect the BOE. For example, the BOE for a partial software
development engagement (e.g. construction and test only) may be less detailed than a BOE for a full
lifecycle engagement.
Other Factors
Other factors that affect the level of detail in a BOE are: product breakdown structure (PBS) and
associated work breakdown structure (WBS), consideration for new technologies, delivery strategy (Agile,
Spiral, Waterfall, Kanban, etc.) contracting strategy, etc.
The BOE should contain a concise level of detail to fully support the review of the estimate by those that
have not been a part of the preparation of the estimate. The BOE provides a definition of the scope of the
engagement as estimated, and should establish the basis for change management subsequent to
publication of the estimate.
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REFERENCES
1. Christensen, Peter, Editor. Cost Estimate Classification System, Recommended Practice No. 17R-97
AACE International, 2011
2. ISO/IEC Standards:
International Function Point User Group, Function Point analysis Counting Practices Manual, ISO-IEC
20926, IFPUG, www.ifpug.org
Netherlands Software Metrics user Association, Definitions and counting guidelines for the application
of function point analysis, ISO/IEC 24570, NESMA, www.nesma.nl
Common Software Metrics International Consortium, The COSMIC Functional Size Measurement
Method, ISO/IEC 19761, COSMIC, www.cosmicon,com
Finnish Software Metrics user Association, FiSMA 1.1 Functional Size Measurement Method,
ISO/IEC 29881, FiSMA, www.fisma.fi
3. International Software Benchmarking Standards Group, Repositories for Development &
Enhancements and Maintenance & Support, ISBSG, www.isbsg.org
CONTRIBUTORS
Ton Dekkers (Chair)
Hans Bernink
Marten Eisma
Ray Sadal
Jelle de Vries
Review
Measurement Association International Network (MAIN, www.mai-net.org)
Netherlands Software Metrics Association (NESMA, www.nesma.nl).
Copyright 2012 AACE International, Inc. AACE International Recommended Practices