**APPENDIX G**

**PARAMETRIC ESTIMATING SYSTEM CHECKLIST**

**APPENDIX G**

**PARAMETRIC ESTIMATING SYSTEM CHECKLIST**

[Elements of Good Estimating Practice]{.underline}

The list that follows identifies elements of good practice that support
reliable estimating processes.

Questions:

Are there other elements of good estimating practice that should be
listed?

Are there other items of evidence that indicate good practice that
should be listed?

Should any of the elements or items of evidence be reworded or
eliminated?

Note: The objective here is to identify elements of good practice that
are distinguished, if possible, from elements of good estimating
processes. This means, among other things, that the elements in the list
should be independent of the estimating methods or models used.

The element in this list should not tell people how to estimate. They
should simply provide guidelines and testable criteria for doing it
well.

Why Do We Estimate Size, Cost, and Schedule?

To scope proposed tasks

To explore alternative system concepts

***design to cost/budget***

To explore alternative design concepts

To explore alternative proposals for enhancements and upgrades

To identify key design elements

To identify key process parameters

***prioritize needs vs wants***

To identify key assumptions

To identify and quantify uncertainties

To identify tasks and their relationships

To assess schedule feasibility

To identify, allocate and schedule resources

To assess an organization's ability to perform within targeted costs

To evaluate the consequences of internal and external constraints

To establish achievable objectives

To establish a basis for quality service

To establish commitments

To bound the risk against customer needs

To balance levels of risk against customer needs

To provide a basis of successful risk management

***build vs buy analysis***

To prepare successful proposals

To evaluate proposals from competing bidders

To establish baselines for project tracking

***enhance/reuse vs redesign analysis***

To predict life-cycle costs

To predict returns on investments

To provide information for establishing business and investment
strategies

**ELEMENTS OF GOOD ESTIMATING PRACTICE**

[Element]{.underline}

1\. The objective (purpose) of the estimate is stated in writing

2\. The product to be produced is clearly described

3\. The tasks to be estimated are clearly identified

4\. People from related but different projects or disciplines are
involved in the estimating process

5\. The validity of the estimate is supported by relating it
demonstrated performance on completed projects

6\. More than one cost model or estimating approach is used

7\. Potential cost and schedules impacts are estimated for all
identified tasks

[Evidence of Maturity]{.underline}

Information objectively captured in historic database with a standard
structure for ease of analysis

Estimates for product size and content are supported by systematic
engineering analyses

The terms and parameters that describe the product enable comparisons to
be made with other products

Checklists are used to identify the elements and activities included
(and excluded from) the estimate

Estimating and analysis team members found in historical database

Values assigned to cost model parameters are supported by comparisons to
values used to describe completed projects

The reasons for values assigned each cost model parameter are documented
in writing

Differences in results are analyzed and accounted for

A structured process is used to identify and scope technical risks

Uncertainties in values of descriptive parameters are identified and
quantified

The effects of uncertainties in descriptive parameters are evaluated

8\. Dictated schedules are analyzed for impacts on cost

9\. Estimates (or estimates to complete) are updated whenever\...

\- changes to requirements affect cost or schedule

\- constraints change

\- actual values for product or process parameters are found to be
significantly different from those on which the plan is based

\- tracking measures indicate that critical path tasks cannot be
completed as planned

10\. The estimating origination has a method (such as a database) for
organizing and retaining information on completed projects

Managers (and customers, where appropriate) are informed of potential
cost savings associated with alternative schedules

Captured in historical database

Program manager uses the process to manage the program and associated
risks

Process flags management when risk exceeds defined limits

Elements in the database are recorded and described in ways that avoid
misinterpretation

Schedule milestones (start and finish dates) are described in terms of
criteria for initiation or completion

Effort measures account for unpaid overtime

The database is populated with a useful set of completed projects

Cost models are used to provide consistent frameworks (standard terms,
WBS, parameters, etc.) for recording historical data

Inconsistencies in historical data are sought out and explained (this is
perhaps best done with the same cost models used for estimating)

11\. Postmortems are held at the completion of each project

\- to ensure that events that affected cost or schedule are described
and recorded while still fresh in people's minds

\- to ensure that recorded data are valid

12\. The emphasis throughout is on developing consistency in describing
completed projects and in relating new work to demonstrated performance
on those projects

Technical seminars and training programs incorporate this information in
a timely manner

The consistency achieved when fitting cost models to completed projects
is measured and tracked

The term "model accuracy" (as in "the model made the estimate") is never
used

**[INDICATORS OF ESTIMATING CAPABILITY]{.underline}**

What organizational support is needed to successfully establish and
sustain a reliable estimating capability?

The following checklist identifies seven indicators of good support. For
each indicator, it lists items of evidence one can look for to help
evaluate the quality of this support.

Questions:

Are there other indicators of organizations support that should be
listed?

Are there other items of evidence that should be listed?

Should any of the indicators or items of evidence be reworded or
eliminated?

Note: The objective of this checklist is to provide guidance to
organizations that are seeking to establish and sustain a successful
estimating capability**.**

**Indicators of Estimating Capability**

**- A Checklist for Successful Estimating Environments -**

**[Indicator]{.underline}**

1\. Management acknowledges its responsibility for developing and
sustaining an estimating capability

2\. The estimating function is funded

3\. Estimators have been equipped with the tools and training needed for
reliable estimating

4\. The people assigned as estimators are experienced and capable

**[Evidence of Maturity]{.underline}**

One or more managers have been assigned responsibility for developing
and sustaining the organization's estimating capability

The responsibility has been in place for sufficient time to be effective

At least one person in the organization has a standing assignment as an
estimator

The funding provides for:

\- establishing and sustaining a corporate memory

\- preparing estimates

\- capturing data from ongoing and completed projects

\- acquiring and using estimating models and tools

\- educating and training estimators

The funding is adequate (past, present, and future)

The funding is stable

Estimators have up-to-date desktop computing facilities (hardware and
software)

Cost models and software such as spreadsheets, databases, and
statistical programs have been acquired or developed

Estimators have received training in the cost, schedule, and size models
they use

Estimators have received training in estimating and model building

Independence/objectivity

The estimators have professional experience/ knowledge with the
processes whose costs are estimated

5\. The estimating capability of the organization is quantified,
tracked, and evaluated

6\. Recognition and career paths exists such that qualified people want
to become estimators

7\. Estimators help quantify and track progress in software process
improvement

Estimators have educational backgrounds that support quantitative
analysis as well as qualitative

The average years of estimating experience among people assigned as
estimators is computed and tracked

Consistent methods are used for capturing and recording information from
completed projects

Cost model calibrations are up-to-date

Estimators participate in professional activities or societies related
to estimating

The people assigned as estimators are viewed as a repository of
estimating expertise

Management tracks and reviews the effectiveness of its estimating
capability

\- what is working well

\- what's not working well

\- opportunities for improvement

Estimating is seen by both employees and managers as a
career-[broadening]{.underline} assignment

Previous estimators have moved on to positions of equal or higher
responsibility

People volunteer to be estimators

Cost models are used to account for factors that make projects
different, so that process improvements can be meaningfully measured and
compared

Trend analyzed derived form cost model calibrations are used to track
changes in the organization's processing and performance parameters

Cost models are used as on-going tools in managing program execution

**[A Manager's Checklist for Validating Cost and Schedule
Estimates]{.underline}**

When you (or your boss) receive a cost or schedule estimate, what should
you look for to determine your willingness to rely on that estimate?

The checklist on the following pages identifies key issues that have
been identified as important to estimates we can trust. Each issue is
associated with elements of evidence that, if presents support the
credibility of the estimate.

Question:

Are there other issues that you (or your boss) look at?

Are there other issues that you should be looking at?

What evidence relative to any of these issues would support you
willingness to rely on an estimate?

Should any parts of the present checklist be reworded or eliminated?

Note: The objective of this checklist is to provide operational
guidelines that help people evaluate the credibility of cost and
schedule estimates for software projects.

A secondary objective is to motivate and guide organizations toward
improving estimating processes and practices.