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About Effort Estimation

Effort estimation is the weak link in software project management. Often a task delegated to a project manager, the resulting estimates, made very early in the development lifecycle, are notoriously inaccurate. The time it takes to build a piece of software is an intractable question. Typically, not enough time is devoted to the calculation of effort, as the time spent is typically not funded. The individuals doing the job may not have the necessary experience to perform it well. Estimates based on inadequately described requirements are bound to be incorrect, and it has been shown that the expression of requirements is, itself, notoriously poor [1]. Requirements statements too often consist of the 'when' and not the 'what' [2] of project definition. Understanding the relationship between time, size and cost in software development is fundamentally complicated and insufficiently understood. For instance, limiting the time available to a project may be seen as a strategy to reduce risk, when in fact it has the effect of reducing efficiency and hence driving costs up [2]. It is reasonable to consider cost in terms of software development to refer to the cost of labour, hence project duration and human resources allocated are the primary cause of rising costs when a project is delivered late.

Estimates are needed throughout a project's lifecycle; from preliminary estimates when bidding for a contract, to multiple interim estimates required to measure progress against targets. Yet, inevitably, preliminary estimates are the most difficult to obtain, and are often the least accurate because too little is known about the project in the early stages. Once begun, more detailed estimates help in project planning, but can, embarrassingly, show the initial estimate to be far off the mark [3].
The history of unrealistic bids has created distrust between suppliers and customers [2]. In a study by Mohanty the cost of one software development project varied by almost 800% when estimated using 12 different models [4]. There is clearly a lot of work needed in the field of software cost estimation, however, it is not clear that results will ever match expectations.

To read more about effort estimation, go to the download page and read the section from the literature survey

[1.] Agarwal, R., Kumar, M., and Mallick, S., Estimating Software Projects. ACM Sigsoft, (2001). 24(4): p. 60, ACM Press
[2.] Smyth, P., Bidding for Software Projects - Verifying Estimates, (2002), Price Systems L.L.C., Mount Laurel, N.J. USA, www.pricesystems.com/downloads/pdf/smyth.pdf
[3.] Fenton, N. and Pfleeger, S.L., Software Metrics - A Rigorous & Practical Approach. (1996), London, Thomson Computer Press
[4.] Mohanty, S., Software Cost Estimation: Present and Future. Software Practice and Experience, (1981). 11: p. 103-121, Wiley Publishing, NY

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