• Predictive Analytics for Improved Cost Management  



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Original Post Date: Tuesday, July 3, 2012  Introduction A cost estimation model needs to be fed data, and it is only as good as data used to create it. Frequently the data needed to ‘feed’ the cost model comes from a variety of sources including engineers, subject matter experts or other individuals not directly building the cost model. Just asking these experts to stick their finger in the air and take a guess isn’t always the best approach. Using the COM enabled Data Input Form Excel solution that comes with TruePlanning can help users obtain the data needed to complete ...
Original Post Date: Tuesday, July 3, 2012 Introduction @RISK and Crystal Ball are two Excel based applications that allow users to perform uncertainty, sensitivity or risk analysis on data contained in Excel spreadsheets. The analysis can be performed using various techniques including Monte Carlo and Latin Hypercube.  Many TruePlanning users are interested in performing this type of analysis on the models they create in TruePlanning or may even have requirements to perform this type of analysis on their estimates.   In response to this desire, PRICE Systems L.L.C. has created two Excel based solutions that allow users to easily leverage the ...
Original Post Date: Monday, April 16, 2012 This year, the PRICE cost research team is kicking off a major research study on electronics.  The field of electronics changes very rapidly, and we want to ensure our estimation methods are well suited for the latest technology.  While we constantly collect data and update relationships, this study will go above and beyond the norm.  We'll visit modern electronics facilities, interview experts, visit customers to discuss their electronics estimating challenges, and start a major data collection and analysis effort.  In the end, we plan to add many new electronic classifications, reexamine our ...
Original Post Date: Thursday, April 5, 2012  Introduction The previous blog covered getting started with the TruePlanning API using VBA. Now it is time to tackle collections. Collections in the TruePlanning API are simply objects that hold a list of objects where all the objects are of the same type.  For example, the Project object contains a collection of the Cost Objects that belong to the project.  In order to use the TruePlanning API, mastering collections is essential, but “mastering” is a bit strong a word given that they are easy to use. By the end of this blog TruePlanning API ...
Original Post Date: Thursday, March 29, 2012 Introduction The new TruePlanning COM Application Programming Interface (API) found in the 2012SR1 release of TruePlanning provides a powerful mechanism for leveraging the power of TruePlanning within custom solutions. Through the COM API TruePlanning projects can be created, updated, calculated and saved allowing for near limitless potential for integration with TruePlanning.  That said it is an “API” which means some programming will need to be done. This discussion is focused on how to get started using the TruePlanning COM API. Development Environments The TruePlanning COM API is written in C++, but is available to any programming ...
Original Post Date: Friday, March 23, 2012 Recently I have been playing around with the International Software Benchmark Standards (ISBSG) database for Development and Enhancement projects.  And in the interest of full disclosure I admit that I am more than a little excited to have close to 6000 data points at my fingertips.  I will further admit that there’s something quite daunting about having this much data; where to start, what should I be looking for, how can I best use this data to offer some useful guidance to inform software cost estimation.  For those of you not familiar ...
Original Post Date: Monday, December 12, 2011 Check out this paper “The Economics of Community Open Source Software Projects: An Empirical Analysis of Maintenance Effort.”  In it the authors hypothesize that Open Source practices increase the quality of the software that gets produced and subsequently lead to code that is less costly to maintain.  Low quality code must be refactored more frequently than high quality code and there is substantial evidence that maintenance interventions tend to lead to even more degradation of the quality of the code.  So not only are low quality applications more expensive to maintain, the unit ...
Original Post Date: Thursday, October 20, 2011  Check out this article.   “Why IT Projects May be Riskier than you Think”.  If you read through the comments you will see that this article truly resonates with many in the field.  In the article the authors discuss research of over 1471 IT projects (large projects with an average cost of $167 million) comparing budgets and expected performance with actual costs and results.  Their results were surprising in that the average overrun was only 27%.  Turns out that the average isn’t what requires study but rather the outliers.  The study found that ...
Original Post Date: Friday, September 2, 2011  The IEEE published “Top 11 Technologies of the Decade” in the  January 2011 editions of the IEEE Spectrum magazine.  It should come to a surprise to no one that the Smartphone was number 1 on this list.  The answer to the author’s question “Is your phone smarter than a fifth grader” was a resounding YES![1]   In 1983 Motorola introduced the first hand hell cellular phone.  It weighed in at two and a half pounds, had memory capacity for 30 phone numbers, took 10 hours to recharge and had a selling price of $4000 ...
Original Post Date: Friday, June 10, 2011 I’m on my way home from the ISPA/SCEA (International Society of Parametric Analysts, Society of Cost Estimating and Analysis) Conference held in Albuquerque this week.  Attendance was very good (2nd best in the conferences history) and as the content seemed especially good this week.  I attended lots of good talks on topics ranging from SEPM (System Engineering, Project Management) cost estimating, Joint Confidence Levels, Software Estimating, Affordability,  Agile software development and estimating for Enterprise Resource Planning Systems.   Of course, just because the topics are good and well presented doesn’t mean I have ...