Estimating template guidelines

Project Costs as defined in the Business Case template instructions are:…. any costs related to completing this project including: development costs, software costs, hardware costs, etc. as well as ongoing support costs.

As a starting point, apportion the cost dollars across the Phases of the project. (Tops Down estimate)

Further breakdown the phases of the project into a task/activity list for each phase.

Estimate the effort & costs for the project against the task/activity list (see the "effort" tab)(Consider the following areas in estimating your software development (or upgrade) project :)Development Effort - (time*rate) by resource type, by project phase, by task/activity

Hardware CostsSoftware CostsNetworksOn-going support CostsAdmin costs (above typical overhead)

For increased accuracy, re-estimate the project using a bottoms up approach and reconcile the major differencesbetween the Top down and the Bottoms up estimates.(Whenever possible seek an independent validation of theestimate before providing it to your Client.)

Document the risks assessed and assumptions made that support the estimate.

The various tabs in this workbook are intended as aids in estimating I.S. projects.

Please note … the various sample tables, and estimating checklists, used throughout the workbook are intended asguidelines or examples for potential tables to be used for individual projects. In many cases, experienced Project Managers will have far more sophisticated tables that will better serve the project. These should definitely be substituted for the table in the workbook. Where the Project Manager does not have such an instrument,the workbook tables might serve as a base for what is needed for the project being estimated.

The colors and markings in this workbook have the following meanings.

Green Cells = Calculated Numbers

Other colors/patterns have no meaning other than formatting

See the estimating Workbook presentation for information on how to use the estimating tabs.

Start with "the Costs number" provided in the Business Case during Phase 0 …

Gray Cells = numbers or fields to be supplied by template user.

Pre-estimate checklist

Pre-estimate checklist:

Project Process Yes No

RequirementsAre the Project Requirements clearly documented and Understood? X

Is the criteria for meeting each requirement defined? XAre the Project Requirements Baselined (Under change control)? XIs there a "Client approved" plan for Requirements changes? XHas a Requirements Traceability Matrix been developed? XHave the requirements been validated against the business objectives? XHave you considered all of the processes that must be followed during Xthe project life cycle?Have you considered all of the interfaces that must be adhered to? X

ScopingHas a Statement of Work (SOW) been reviewed/approved by the Client XHas the Statement of Work been reviewed by the virtual Xteam partners?Has a Work Breakdown Structure (WBS) been reviewed by the Client XHas the WBS been reviewed by the virtual team partners? X

RiskHas a formal Risk Assessment been done? X (including probability, impacts, avoidance & recovery)Is there an approved Risk Management Plan? XWas a Client representative involved with the Risk Management Plan? XWere appropriate I.S. resources involved in the Risk Management Plan? X

EnvironmentsIs the process for identifying, acquiring, establishing, and verifying the Xenvironment understood and included in the plans for the project?Is the Development environment adequate to support the project? XIs the Operational environment adequate to support the project? X

StaffAre appropriate staff available for the project? XAre the resources committed to participate in the required activities? XIs there a training plan to cover deficiencies? X

not necessary

(by both I.S. and the Client?)

Project Assumptions

Replace this sheet with a "Project Assumptions" sheet.

ALWAYS include a complete description of the assumptions and dependencies that support the estimate.

Estimating usually involves making assumptions. It is important to record these assumptions. As the project progresses, the estimating assumptions should be reviewed and revised. To whatever degree possible, the project's scope definition should be included in the assumptions.

Assumptions can be recorded using a format similar to the following:

Assumption A description of the assumption.

The part of the project to which this assumption applies. ForApplicability example, the assumption may apply to the whole project, or to just

a stage, such as Business Process Redesign.

Status Indicates whether the assumption is still valid.

Resolution Describes the resolution of any issues highlighted by the assumption, if applicable.

The estimating assumptions can be combined with scheduling assumptions.

Assumptions

Project Estimate Summary

document.xls 04/22/2023 09:10:59

Department name Project name/NumberProject Manager Name, PM Date

Effort $ -

Hardware $ -

Software $ -

NetWorks $ -

On-going support $ -

Admin costs not in overhead $ -

Sub Total $ -

Risk $ - Project Risk FactorChange $ - Project Change Factor

Total (includes Risk & Change) $ -

Project Estimate Summary

document.xls 04/22/2023 09:10:59

Project name/NumberDate

Total "Effort estimate" 0

Project Name/Number ______________ Project Manager __________

Date __________

Project Activity/Task name/description Remarks

$ -

Total $ -

Project Activity/Task

ID (#)

Resource type

Resource Quantity (by

type) *

rate per hour

Effort hours

required

estimated effort cost (sub total)

Resource type estimated Resource type estimate checklist:

IS Project TeamProject Manager XProject Leader XAnalyst XProgrammer XTester XDocumentation XThird Party Prime (e.g. EPIC, Origin, BaaN) XBaaN Core Program Interface Prime XIntegration Partners Core XIntegration Partner Non-Core X

IS Support FunctionsNew Product Introduction (NPI) Prime XDBA XProcessing Services Prime XDesktop Prime XNetworking Services Prime XVendor Management Prime XDeployment Prime XCaptive Office Prime XFunctional Design Expert XDetail Design Expert X

IS OtherConfiguration Management Prime XClient Manager XInternal Audit XQuality Assurance Prime XProduct Prime XProgram Office Prime XRelease Manager X

ClientClient Prime XDEM Prime XProcess Prime X

not estimated *

Indirect Indirect estimate checklist:Subject Matter Experts from Client Organizations XSubject Matter Experts from other IS depts. XEmployee Advisory Committees XClient Advisory Committee XVendor Management XUserid AdministrationData Standards Forum XData Management XArchitecture XCore Baan Program interface organization XIntegration Testing X

Item estimated Project support estimate checklist:Database Administration XResource Management XVerification and Validation XConfiguration Management XQuality Assurance/Facilitation XElectronic Data Interchange XNew Product Introduction XProduct Management XCore Baan Program Interfaces XNetworking and Computing XProcessing Services XFinance XApplication Modifications - vendor XThird Party Suppliers(e.g. EPIC, Baan, Origin) XIS Skills Development X3rd party warranty support vs contracted support. Xcomputer operations support Xoutsourced support XLevel-1/Level-2 support X

not estimated *

Total "Hardware Cost estimate" 0

Sample table

Server Hardware … Quantity Total Supporting information

for development $ - for test $ - for training $ - for production $ - Total (Server) $ -

Desktop Hardware … Quantity Total Supporting information

for development $ - for test $ - for training $ - for production $ - Total (Server) $ -

$ -

Hardware estimate checklist:

Item estimated

Cpu Hardware XServers XModem XExtraordinary power supply XneedsBackup Systems XDisaster Recovery Systems XAdditional Memory XProcessing Services XDisk Storage XTape Backup XUPS XSwitching devices XRouters XRacks X

Local taxes Xshipping, handling(delivery) Xinstallation X

Price per unit

Price per unit

not estimated *

Total "Software Cost estimate" $ -

Sample table

Server Software … Quantity Total Supporting information

for development $ - for test $ - for training $ - for production $ - Total (Server) $ -

Desktop Software … Quantity Total Supporting information

for development $ - for test $ - for training $ - for production $ - Total (Server) $ -

$ -

Software estimate checklist:

Item estimated

Application Licenses XSecurity (Nortel.Access) XRDBMS Licences XProject specific Software tools XApplication Mods - vendor XAny costs that this project must bear Xto decommission Legacy Systems Archiving XCommunication SW (e.g. MQ Series) XUserid Administration X

also include: X The number of licenses X Any installation costs X S&H costs X support costs X

Price per unit

Price per unit

not estimated *

Total "Network Cost estimate" $ -

Quantity Total Supporting information

for development $ - for test $ - for training $ - for production $ - Total (Server) $ -

Quantity Total Supporting information

for development $ - for test $ - for training $ - for production $ - Total (Server) $ -

$ -

Network estimate checklist:

Item estimated

LAN XWAN XRouters XDial-up Lines XDedicated lines XSatellite XPorts XPhones XControllers XSwitches XSW licenses XSetting up Access (e.g. Secure ID) XOther security … Firewall, etc. XProcessing Services

X

Server Network needs

…

Price per unit

Desktop Network needs

…

Price per unit

not estimated *

(estimate 15-20% of the hardware costs per annum)

Total "On-going support estimate" $ -

On-Going support items 0 Supporting information

Disaster RecoveryDepreciation costs

$ -

"On-going" support estimate checklist:

Item estimated

Level-1/L-2 support (Level of service - Platinum, Gold, Silver, Bronze) New user setup XPassword/User ID restores XArchiving of data XEmergency Recovery XData integrity issues XRegular Job scheduling XAd-hoc production job scheduling requests XReport generation & Elimination XProcedures Clarification XTicket Status Updates XScheduled maintenance XRecovery from failed job XInformation flow monitoring XStandard Backups (non-Mac or PC) XSystem Availability Monitoring & Correction XSystem Recovery XDisk space management (non-Mac or PC) XBasis Security Services and Precautions XRoot Cause Analysis XProblem Resolution XLiason with DBA, Networks, Local I/S XPatch Maintenance XTime Zone Coverage XMultiple Site Support XClient - Support Communication XSite to Site Communication X

Level - 3 Support (above items plus):Bug fixes XTest Environment Costs X

Pre-Implementation Support:Product Support during SIT/BIT/NIT Testing X

Release Strategy Support:Bug and Enhancements XImplementation XCustomization X

not estimated *

"On-going" support estimate checklist: (cont'd)

Item estimated

GES Renderings:Job scheduling XScheduled maintenance XStandard Backups (non-Mac or PC) XSystem Availability Monitoring & Correction XOS Patch Maintenance X

DBA:Back-up XScheduled maintenance XDB Availability Monitoring & Correction XDB Patch Maintenance X

Network management:Back-up XScheduled maintenance XNW Availability Monitoring & Correction XNW Patch Maintenance X

Hardware, Storage (DASD), etc. (requirements for near & long-term)Lease Penalties

Disaster RecoveryDepreciation costs

not estimated *

Total estimate for $ - Admin costs not in overhead

Sample table

Admin items Supporting information

TravelFacilities(real estate)etc.

$ -

"Admin costs not in Overhead" estimate checklist:

Item estimated

Conferences X Internal or external XFace to Face meetings XAudio/Video teleconferences XInternal Audit X Quality Assuranceextraordinary Communications XPrinting (e.g. manuals, training material) XProject Website development and maintenance XUse of Learning Institute XAdministration support XMarketing XElectrical work Xnetwork connections Xlighting Xfurniture Xspecial Air conditioning XTeam recognition/celebration X

not estimated *

Risk & Change

The following is provided as a basic template that may be used in the analysis and documentation of project risks:

Probability of Occurrence Impact Planned Action

Activity/Requirement low medium high low medium high no action type of actionRisk

numberRisk

weight *