• Predictive Analytics for Improved Cost Management  



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Original Post Date: Wednesday, October 6, 2010 Over the past several weeks several users have inquired about the best way to model legacy software that is being modified when estimating software costs. The software component within the TruePlanning Software model has an input parameter call “adapted Code Size.” This input parameter accounts for existing or legacy software that will be modified or changed to meet a new requirement. Tied with the size input parameter is Percent Design/Code/Test adapted. Although the model will calculate a percentage for each input, I would recommend that user’s analyze the calculate values and override the calculation where required. The percentage ...
Original Post Date: Wednesday, October 6, 2010 The key cost driver when estimating software costs is the size of the product. The problem is that there is no perfect technique available to measure and quantify the size of software. The two major techniques in use today are Source Lines of Code and Function Points.  Today we will talk about Source Lines or Code or SLOC. Source Lines of Code measures logical lines of code. It takes some of the uncertainty out of physical line of code measures by counting only complete statements (which can cross over more than on physical line). SLOC excludes comments and blank ...
Original Post Date: Wednesday, September 29, 2010 Recently I came across the word “off-label”.  It is the term used by the medical community when a drug is used to treat a condition for which it has not been approved by the Food and Drug Administration.   We sometimes use TruePlanning for “off-label” purposes. A good example would be using the TruePlanning Calibration tool to answer such questions as, what is the maximum number of source lines of code (SLOC) I can get and remain within my budget?  I call this TruePlanning Optimization. Here is an example answering the SLOC question. First begin ...
Original Post Date: Thursday, August 26, 2010 I  recently moved and thought about the need to do a new household budget. This got me to thinking of the budgeting capability in TruePlanning. First, you can use TruePlanning to determine a budget. The time phased output, either monthly or annually, is ideal for establishing a budget and budget profile for your project.  TruePlanning also splits the time phased costs into development, production, and operating and support categories. Be cautious, however, in using the Phase report. The System cost object costs are assigned by schedule duration, which may not necessarily reflect the actual project cost flow. A better choice may ...
Original Post Date: Thursday, July 22, 2010 Recently the Director of the Office of Management & Budget (OMB), Peter Orszag issued a directive that was posted on the OMB blog that outlined three specific actions for IT reform. The actions include a freeze on all new IT modernization task orders for financial systems, reviews of current high risk IT projects and require agencies to submit improvement plans to the CIO; thirdly, the OMB Deputy Director will develop recommendations within 120 days to improve the federal government’s overall IT procurement and management practices. Orszag states: “While a productivity boom has transformed private sector ...
Original Post Date: Thursday, May 13, 2010  Earlier this week I conducted a webinar intended to make PRICE users aware of the Cost Research Services available to them as part of the license fee they pay to use PRICE products. I thought I would recap the highlights of this webinar for those of you who might have missed it. At PRICE we understand that cost estimating tools, while useful and valuable, do not always present the complete solution. Every single cost estimation projects presents new and unique challenges.  We think it's important that in addition to solid, time trusted cost estimating models, ...
Original Post Date: Thursday, May 6, 2010 I am excited about the efforts described in Derek Kaufman’s article on the AFMC website.  For the complete story please see this link http://www.afmc.af.mil/News/Article-Display/Article/154211/dod-making-massive-investment-in-its-acquisition-workforce/. The DoD is investing in the rapid build up of a new foundation of acquisition workers focused on estimating costs and negotiating prices through continuous learning.    Mr. Assad notes that Wright-Patterson Air Force Base, Ohio, was once the preeminent DoD recognized leader at estimating costs and negotiating prices with defense contractors. It's a skill that has been allowed to atrophy, he noted.   "We need to build that pricing capability back ...
Original Post Date: Friday, April 30, 2010 I have been frequently asked to do crosschecks on other people’s software cost estimates which are potentially done in a variety of tools from spreadsheets to SLIM. One of the common operator errors I see from other users is not understanding what activities and resources are included in the outputs of the particular tool that they are estimating with. This is akin to deciding between two cars and not knowing if both come with the same sets of features (stereo, AC, heated seats).   With software estimation tools you need to know what work is getting estimated ...
Original Post Date: Friday, April 23, 2010 Software project failures coupled with rapidly changing business needs are forcing organizations to revisit the way they go about building software.  Agile development has emerged as one possible solution to the woes of the software industry.  Agile enthusiasts claim significant increases in productivity and quality, while detractors cite instances where the reverse is true.  It seems to me that probably both are right  - some of the time anyway.  Agile means many different things to different organization.  There is a long list of agile tenets but not every method of agile applies all ...
Original Post Date: Friday, April 2, 2010  The newest version of TruePlanning has been released and distributed to customers. The new features were designed to make it easier to estimate entire systems, not just individual components or sub-systems. TruePlanning is an excellent solution in this regards. Systems that require you to estimate software costs, hardware costs, and the integration of multiple pieces of each can all be done in one framework. There are  specific features in this release, like input inheritance, that allow you to make changes at the top Project level which then flow throughout the entire system.  This saves an ...