PPT Slide

Establish Objectives

• Guidelines for establishing the objectives of a cost estimation activity
  1. Key the estimating objectives to the needs for decision making information
  
  2. Balance the estimating accuracy objectives for the various system components of the cost estimates
  3. Re-examine estimating objectives as the process proceeds, and modify them where appropriate

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• The main factor that helps to establish cost-estimation objectives is the current software life-cycle phase.
  • Corresponds to the level of knowledge of the software whose costs is being estimated, and also to the level of commitment that will be made as a result of the estimate
  • Guideline #1 refers to absolute estimates for labor or resource planning, relative estimates for either/or decisions, generous or conservative estimates to heighten confidence in the decision.
  • Guideline #2 recommends that the absolute magnitude of the uncertainty range for each component be roughly equal - assuming that such components have equal weight in the decision to be made.
  • A further implication of guideline #3 is that budget commitments in the early phases should cover only the next phase. Once a validated product design is complete, a total development budget may be established without too much risk.