Module 1: Overview of Software Estimation

Duration: 90 minutes (09:00am - 10:30am)

This module introduces the fundamental concepts of software estimation, covering objectives, key considerations, and best practices.

Table of contents
  1. Learning Objectives
  2. Quick Exercise 1.1: Project WBS and Risk Assessment (25 minutes)
    1. Background
    2. Task 1: Create High-Level WBS (15 minutes)
    3. Task 2: Risk Identification (10 minutes)
  3. Advanced Exercise 1.2: Three-Point Estimation (15 minutes)
    1. Background
    2. Task: Estimate Integration Effort
  4. Module 1 Summary
    1. Key Takeaways
    2. Quick Reference
    3. Next Steps

Learning Objectives

By the end of this module, you will be able to:

  • Identify key areas and objectives of software estimation
  • Recognize common issues and pitfalls in estimation
  • Create basic Work Breakdown Structures (WBS)
  • Understand the impact of uncertainty on estimates
  • Apply best practices for estimation activities

Quick Exercise 1.1: Project WBS and Risk Assessment (25 minutes)

Background

You’re estimating a Customer Portal Development project for a mid-size company.

Project Requirements:

  • User registration and login
  • Customer dashboard with account info
  • Order history and tracking
  • Support ticket system
  • Mobile-responsive design
  • Integration with existing CRM

Constraints:

  • 6-month timeline
  • Team: 4 developers, 1 designer, 1 QA, 1 PM
  • Fixed budget: $300,000

Task 1: Create High-Level WBS (15 minutes)

Break down the project into major work packages:

1. Project Management & Setup
   1.1 _____________________
   1.2 _____________________

2. Analysis & Design  
   2.1 _____________________
   2.2 _____________________

3. Development
   3.1 _____________________
   3.2 _____________________
   3.3 _____________________

4. Testing & Deployment
   4.1 _____________________
   4.2 _____________________

Task 2: Risk Identification (10 minutes)

Identify top 5 risks and their impact:

Risk Probability (H/M/L) Impact (H/M/L) Mitigation
1.      
2.      
3.      
4.      
5.      

Quick Discussion: Which work package has the highest risk?

Advanced Exercise 1.2: Three-Point Estimation (15 minutes)

For participants who complete the quick exercise early

Background

Apply three-point estimation to the Customer Portal Integration component from the WBS above.

Integration Requirements:

  • Connect to existing CRM system
  • Real-time data synchronization
  • Error handling and retry logic
  • Performance optimization

Task: Estimate Integration Effort

Provide three estimates for the integration work:

Estimate Type Hours Key Assumptions
Optimistic (Best Case)   API documentation is complete, no surprises
Most Likely (Expected)   Normal development with typical issues
Pessimistic (Worst Case)   API issues, performance problems, rework

Calculate Expected Value: Expected = (Optimistic + 4 × Most Likely + Pessimistic) ÷ 6 = _____ hours

Calculate Standard Deviation: σ = (Pessimistic - Optimistic) ÷ 6 = _____ hours

Confidence Intervals:

  • 68% confident: ___ ± ___ hours
  • 95% confident: ___ ± ___ hours

Module 1 Summary

Key Takeaways

  1. Start with WBS: Break down work into manageable, estimable pieces
  2. Identify Risks Early: Know what could go wrong before it does
  3. Use Three-Point Estimation: Account for uncertainty with optimistic/pessimistic ranges
  4. Document Assumptions: Make your thinking visible to others

Quick Reference

WBS Best Practices:

  • ✅ Each task should be 8-80 hours
  • ✅ Clear deliverables for each work package
  • ✅ No overlap between components
  • ✅ All project work included

Risk Management:

  • ✅ Identify risks early in estimation process
  • ✅ Assess both probability and impact
  • ✅ Plan mitigation strategies
  • ✅ Add contingency buffers

Next Steps

Continue to Module 2: Approaches to Software Estimation to learn specific estimation techniques.

Estimated completion time: 25 minutes (Quick) + 15 minutes (Advanced)