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Electrical Fan
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Joined: Aug 2009
10-09-2009, 05:43 PM

COST ESTIMATION TECHNIQUES Expert judgment . Delphi cost method. WBS Algorithmic method WBS. It is a bottom-up estimation tool. It is a hierarchical chart that accounts for the individual parts of a system. This chart can indicate either product hierarchy or process hierarchy. It identifies the product components and indicates the manner in which the components are interconnected. It describes the fundamental structure of the software, showing how the various software components fit into the overall system. PRODUCT HIERARCHY. A Product Work Breakdown Structure. Software Application Component A Component B Component N Sub comp: B1 Sub comp: B2 It identifies the work activities and the relationships among those activities. PROCESS HIERARCHY. STRUCTURE OF PROCESS BREAKDOWN SYSTEM. Development Activities System Engineering Programming Maintenance Detailed Design Code And Test Unit CONTD¦ It is an essential tool in the project and implimentation planning process. It is a logical hierarchy that organizes and breaks down the work that needs to be accomplished on a project and implimentation . It is a way of organizing project and implimentations elements into a hierarchy that simplifies the task of budget estimation and control. THE WBS Contd.. Using the WBS technique, costs are estimated by assigning costs to each individual component in the chart and summing the costs. Both product and process WBS charts are used for cost estimation by some planners. THE PURPOSES. It defines and breaks down the work on a project and implimentation into manageable chunks often called work packages. It tells us what activities or tasks have to be done in order to complete the project and implimentation. It serves as the foundation for the development of schedules, budgets and resource requirements. It serves as a useful tool for identification of activities and assignment of responsibilities. ADVANTAGES. The primary advantage of WBS are in identifying and accounting for various process and product factors, and in making explicit exactly which costs are included in the estimate. It is good for planning and control. It is used in cost accounting and reporting. It helps to determine just exactly what costs are being estimated.
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