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Orignal Post Date: Thursday, February 11, 2010 That’s a question that members of the cost estimating community will try to answer at next week’s  43rd Annual DoDCAS symposium. The conference is centered around the “theory and implementation” of the WSARA 2009 (Weapons System Acquisition Reform Act). Simply put, the cost estimating community needs to first and foremost understand what the real life implications of the WSARA will be. At least in theory that is.   According to GAO, nearly 70% of the Pentagon’s 96 biggest weapons programs were over budget in 2008 and another government report found $295 billion in waste ...
Orignal Post Date: Thursday, January 21, 2010  It’s a common practice to measure failure or success of a project based on the initial functionality requirements and initial cost and schedule estimated. The Standish Group publishes its Chaos report for software projects which terms a project as a "Success" if it is completed on time, on budget, and satisfying all the initial requirements. Projects are deemed a "Challenged" if functionality is achieved but cost and schedule over runs occur and "Failed" if a project is cancelled while in execution. However there are other factors e.g. Tom DeMarco’s  Estimation Quality Factor  and Boehm’s Cone of Uncertainty (COU) ...
Original Post Date: Friday, January 15, 2010 Failed software projects are always bad but there are additional complications when there is a contract in place to deliver the software.  Disputes over failed software can result in costly litigation that generally damages both the vendor and the buyer. According to observations of Capers Jones in "Conflict and Litigation Between Software Clients and Developers" (2007) , 5% of the projects his clients were involved in either had litigation pending or were currently involved in litigation over project failures.  His findings indicate that it is very large projects, over 10,000 Function Points that ...
Original Post Date: Friday, November 13, 2009 Recently, Dale Shermon presented a webinar, "Preparing Bids Faster with Fewer Resources".  The content for the webinar was taken, as the title of this post suggests, from the recently released book Systems Cost Engineering. The webinar discussed how parametric estimating could dramatically decrease the time and thus the cost that is required to make important business decisions about whether or not to pursue contract opportunities. There are critical activities that organizations engage in every time there is an RFP such as Bid/No Bid decisions or competitive assessments.  So whether the RFP calls for estimating software costs or ...
Original Post Date: Wednesday, September 30, 2009 Recently I was interviewed by Doug Beizer of Federal  Computer Weekly for an article about the shift of government agencies away from custom software development and towards the use of cloud computing.  The interest in this topic seemed to stem from the introduction of Apps.gov online store earlier this month.   Having been in the software cost estimation community for more than 25 years, I have experienced this transition first hand but never really stopped to think about the whys and wherefores until questioned by Doug.  It was an interesting stroll down memory lane.  As an example, ...
Original Post Date: Wednesday, September 16, 2009 While most of the books on the topic of parametric modeling take a look at detailed techniques and fundamentals, such as building parent/child relationships or the mathematics behind models, Systems Cost Engineering, takes a more practical perspective to answer a very basic question:  What can parametric estimating do for my organization and how can we implement it?  The book covers an array of business processes that can be dramatically improved with the application of a standardized parametric cost estimating framework. These processes exist across multiple phases of a program's lifecycle such as early concept planning through development and production. Chapters are ...
Original Post Date: Thursday, August 13, 2009 Let’s start with a simple test. Which is greater: the number of six-letter English words that have "n" as the fifth letter or the number of six-letter words ending in "ing"? If you are like most people you’re thinking the correct answer is six-letter words ending in "ing". But most people are wrong. And the reason is simple, people rely on what they can easily recall. Since it’s much easier to think of 6-letter words ending in "ing" the fact that people come to that conclusion isn't surprising. Psychologists refer to this as availability bias. ...
Original Post Date: Monday, July 20, 2009  Did you know that according to kgb a single Google search takes 0.2g of Carbon Dioxide? Asking Google 2 questions is equivalent to boiling a tea kettle full of water.  If there were 2 billion Google searches a day in 2008, today we're looking at more than 400 Million g of Carbon Dioxide a day just for Google searches.  A part of my job at PRICE is to look into emerging trends and technologies to determine if and how changes in the world impact the costs of hardware, software and information technology projects.  ...
Original Post Date: Thursday, July 16, 2009 In an article in last weeks Harvard Business , IT Costs: Do You Speak Their Language), John Sviokla discusses the fact that as the information business continues to grow it is increasingly important for organizations to understand the impact of IT as it relates to their operating costs. This certainly rings True to us here at PRICE Systems who have recognized this reality. TruePlanning 2009 has been developed by PRICE specifically to help organizations get their heads around the true costs of Information Technology. Application development projects can represent significant expense to an ...
Original Post Date: Tuesday, June 16, 2009  Bad project estimates lower profitability.  Despite this fact many business leaders don’t invest in improving their estimating capability, buying into the fatalistic myth that this is as good as it gets.  This is patently wrong.  Project portfolios are prioritized based on the total expected Return on Investment (ROI) of projects.  Investments in the wrong project based on bad estimates could lead to lost revenue or delay of net benefit. All around us we see reports of software projects which are over budget, delivered late or cancelled because they are taking too much time ...