Effort Estimation Techniques

BMS Institute of Technology & Management
Department of Computer Science & Engineering
Technical Seminar 2021
SOFTWARE EFFORT ESTIMATION

TECHNIQUES & BENIFITS
Under the Guidance of : By:

Mr.Ravi Kumar B N Sankara Teja
Assistant Professor,BMSIT&M 1BY17CS148
ABSTRACT
Software Effort Estimation is a crucial factor in any software

industry. There has been a lot of work done in the area of software
effort estimation. As software grew in size and complexity, it is very
difficult to precisely figure-out the cost of software development.
The greatest risk of software industry was the fast changing nature
of software development. Which leads difficult to develop parametric
models that yield high efficiency for software development in all
domains.This presentation will show you the study comparing the
different estimation techniques.
Different estimation techniques:
1.Use-Case Points
2.Function Points
3.Wideband Delphi
4.Three-point Estimation
5.Project Evaluation and Review Technique (PERT)

USE-CASE POINT:
• Use-Case Points (UCP) is a software estimation technique used to

measure the software size with use cases. The concept of UCP is
similar to FPs.
• Number of UCPs in a project is based on the following :

• 1.The number and complexity of the use cases in the system.
• 2.The number and complexity of the actors on the system.
• 3.Various non-functional requirements that are not written as use cases.
• 4.The environment in which the project will be developed.
.
ADVANTAGES:
1.UCPs are based on use cases and can be measured very early in the project life cycle.
2.UCP (size estimate) will be independent of the size, skill, and experience of the team that
implements the project.
3.UCP based estimates are found to be close to actuals when estimation is performed by
experienced people.
DISADVANTAGES
1.UCP can be used only when requirements are written in the form of use cases.
2.Dependent on goal-oriented, well-written use cases. If the use cases are not well or
uniformly structured, the resulting UCP may not be accurate.
3.UCP is useful for initial estimate of overall project size but they are much less useful in
driving the iteration-to-iteration work of a team.
.
FUNCTION POINT ANALYSIS:
A Function Point (FP) is a unit of measurement to express the amount of business functionality, an
information system (as a product) provides to a user.
FPs measure software size. They are widely accepted as an industry standard for functional
sizing.
There are two types of functions:-
Data Functions
Transaction Functions
There are two types of data functions:-

Internal Logical Files
External Interface Files
Transaction Functions:-
There are three types of transaction functions.
External Inputs
External Outputs
External Inquiries
BENIFITS OF FUNCTION POINTS:
• In measuring the size of the solution instead of the size of the problem.
• As requirements are the only thing needed for function points count.
• As it is independent of technology.
• As it is independent of programming languages.
• It can be used for estimating testing projects aswell.
• In estimating overall project costs, schedule and effort.
• In contract negotiations as it provides a method of easier communication with business
groups.
• As it quantifies and assigns a value to the actual uses, interfaces, and purposes of the
functions in the software.
• In creating ratios with other metrics such as hours, cost, headcount, duration, and
other application metrics.
Wideband Delphi:
Delphi Method is a structured communication technique, originally developed as a systematic,
interactive forecasting method which relies on a panel of experts. The experts answer
questionnaires in two or more rounds. After each round, a facilitator provides an anonymous
summary of the experts’ forecasts from the previous round with the reasons for their judgments.
Experts are then encouraged to revise their earlier answers in light of the replies of other
members of the panel.
Delphi Method was developed in the 1950-1960s at the RAND Corporation.
CONTINUED...
ADVANTAGES:
Wideband Delphi Technique is a consensus-based estimation technique for estimating effort.
Useful when estimating time to do a task.
Participation of experienced people and they individually estimating would lead to reliable results.
People who would do the work are making estimates thus making valid estimates.
Anonymity maintained throughout makes it possible for everyone to express their results
confidently.
A very simple technique.
Assumptions are documented, discussed and agreed.
DISADVANTAGES:
Management support is required.
The estimation results may not be what the management wants to hear.
Three-point Estimation technique:
• Three-point Estimate is based on the simple average and follows triangular distribution.
• likely estimate (L).
• most optimistic estimate (O),
• most likely estimate or pessimistic estimate (M)
CONTINUED...
• Mean = (O + M + L) / 3
• Standard Deviation = √ [((O − E)2 + (M − E)2 + (L − E)2) / 2]
• Convert the Project Estimates to Confidence Levels

• The Three-point Estimate (E) and the Standard Deviation (SD) thus calculated are used
to convert the project estimates to “Confidence Levels”.
• The conversion is based such that −
• Confidence Level in E +/– SD is approximately 68%.
• Confidence Level in E value +/– 1.645 × SD is approximately 90%.
• Confidence Level in E value +/– 2 × SD is approximately 95%.
• Confidence Level in E value +/– 3 × SD is approximately 99.7%.
• Commonly, the 95% Confidence Level, i.e., E Value + 2 × SD, is used for all project and
task estimates.
PERT-Estimation technique:
Project Evaluation and Review Technique (PERT) estimation considers three values:
the most optimistic estimate (O), a most likely estimate (M), and a pessimistic
estimate (least likely estimate (L)).
There has been some confusion regarding Three-point Estimation and PERT in the
Industry. However, the techniques are different. You will see the differences as you
learn the two techniques.
Also, at the end of this chapter, the differences are collated and presented.
Mean = (O + 4 × M + L)/6
Standard Deviation (SD) = (L − O)/6

CONTINUED...
PERT Estimate (E) is based on the weighted average and

follows beta distribution.
THREE-POINT ESTIMATION VS PERT
CONCLUSION
Authentic estimation of software development effort is a very difficult job. Both under
estimation as well as over estimation can lead to serious consequences. After
several years research, there exist many software cost estimation methods like,
estimation byanalogy, algorithmic methods, expert judgment method, bottom-up
method and top-down method. As weaknesses and strengths of these methods are
often complimentary, we cannot say a method is better or worse than the other.
Before estimation of projects, understanding the strengths and weaknesses of very
method is important. So it’s very important to find a technique which can yield
authentic results for software effort estimation.
REFERENCES
• https://www.tutorialspoint.com/estimation_techniques/index
.htm
• http://irjcs.com/volumes/Vol3/iss12/13.DCCSSP92.pdf
• https://en.wikipedia.org/wiki/Software_development_effort_
estimation
• https://www.softwaretestingclass.com/software-estimation-
techniques
Thank you!!

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BMS Institute of Technology & Management

Department of Computer Science & Engineering

Technical Seminar 2021

SOFTWARE EFFORT ESTIMATION

Under the Guidance of : By:

Software Effort Estimation is a crucial factor in any software

5.Project Evaluation and Review Technique (PERT)

• Use-Case Points (UCP) is a software estimation technique used to

• Number of UCPs in a project is based on the following :

There are two types of data functions:-

• Convert the Project Estimates to Confidence Levels

Standard Deviation (SD) = (L − O)/6

PERT Estimate (E) is based on the weighted average and

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