Posts Tagged ‘Estimation’

3 Common mistakes when making estimations

Sunday, March 1st, 2009

Currently I am creating an Excel sheet that I am using to monitor the progress of the project I am currently working. Working on this Excel sheet made me aware of some common mistakes people often make while making estimations. Here are 3 of the most common mistakes:

1. Forgetting that you will probably NOT be working full time on your project.
When you work 8 hours a day, it is often the case that you won’t be working 8 hours full time on your project. People disturb you, you have some meetings you need to attend, you spend some time answering email, you’ve got a brainstorm session, you need to go out to meet the customer, etc. Not working full time on your project means that your focus factor is not 100%. If you call everything else a ‘disturbance’ of effective work time, it might be interesting to figure out how much of your time is spent on disturbances and how much of your time is effectively spent on your project. The project I am currently working on will eventually turn out to have a focus factor of around 80%, which means that 20% of my time at work is spent at meetings, etc.

2. Forgetting the number of hours you have available
If you’re working in a team where some of your team members are part time employees, you will have less available hours to get the work done than a team consisting only of full time employees. Although this sounds logical, available hours is something that is quite often not taken into account.

3. Forgetting that productivity / speed will change over time and can be hard to estimate in advance.
If you’re starting a project with a new team, it will be difficult to estimate how fast your team will work. Once you have worked together for some time, you will (if you measure it) gain some knowledge of how much work your team can complete in a certain period of time. Without this experience as a team, you have to base your estimation on wild guesses and experience with other teams that may be different than this one. It is also very hard to estimate how long something will take when you’re going to do something that is entirely new for you: will it be easy? Will it take lots of study time to master it? Also, you will probably get better at the tasks you’re about to be doing. This means that an estimation of 4 days in the beginning of a project could be only 3 days once you’re familiar with the tasks at hand. Making relative estimations can be a solution to decouple time from size. If you estimate in absolute or fixed days, you are actually ignoring the fact that you’re team will get better and faster along the way.

Example:
Say, you estimate that some task takes 4 days. Now, if you have a focus factor of 80%, this means that the work will take 5 days to complete. Now, if this person only works 4 hours a week, this will mean that if he starts on Monday, has a focus factor of 80% and 1 part time day off, then the task won’t be finished until Monday next week in the end of the day.

So remember that you always take into account that you won’t be working full time on a project, and that you have a (limited) number of hours available for your project. Also take into account that estimations at the beginning of a project may be unrealistic further in time. Remember this when determining a deadline, or deciding which parts of the project will be skipped in order to make it to the deadline.

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How to make better estimations

Friday, February 13th, 2009

If you were given 10 tasks and asked how long it would take you to complete these tasks, the most common thing to do is to estimate the duration of each individual task. You may divide the task into activities and estimate those, you may discover some dependencies and once everything looks great you commit to your estimation. Now, as you start working on the tasks, your project eventually fails: you run out of time, the deadline has to be moved further into the future or you want more people on your team in order to deliver on time.

Sounds familiar?

Now most of the time when people make estimations, they usually estimate in absolute days or hours. But there are several danger with traditional estimations:

  • if your planning is based on activities rather than features, you’re risking the fact that activities don’t finish, at least they don’t usually finish early.
  • if there are many dependencies between activities, lateness is passed down the schedule.
  • if your tasks are not prioritized by their value to the users and customers, but by the convenience of the development team, you have no option to allow users and customers determine the order and sequence of the work to be done.
  • if you ignore uncertainty and assume that initial requirement analysis led to perfect specifications, you will be surprised by reality.
  • if your estimates become commitments, which is often the case, you are mistaking the fact that an estimation is a probability, and you can not commit to a probability.

A good planning process and better estimations allows: reducing risk, reducing uncertainty, supporting better decision making, establishing trust and conveying information.

One way of making better estimations is to make relative estimations. With relative estimations you estimate size and you derive duration, instead of estimating duration. So for example, a user-story of 10 points is twice as big, complex or risky as a user-story estimated 5 points. There is no unit for relative estimates, no days, no hours, etc.

An iterative approach is probably the best way to deal with uncertainty. During each iteration you can determine how many story points you’ve been able to complete, this is the velocity, the derived duration. For example: 3 stories of 5 points in 1 iteration means a velocity of 3 * 5 = 15. The velocity corrects estimation errors, and is the way to determine the speed of your team and to make predictions about the future.

The benefit of relative estimations is that you separate duration from size. This allows you and your team to deal with the fact that during the project you are learning and your understanding of the problem domain increases (in other words: you get more work done later in the project than early in the beginning = increase in velocity). Also unforseen things that may happen, will be a change in velocity while the relative size of the user-stories are not changed.

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