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An Enhanced Framework for the Management of Information Technology Projects

PPTO-PD-002 Estimate Project Resources/Schedule Basic Procedure

January 2000
Chief Information Officer Branch
Treasury Board of Canada Secretariat

1. Introduction

1.1  Purpose

This procedure is an activity in the Project Planning Process (PPTO-PS-002). It uses the output of the Estimate Software Product Size Basic Procedure to calculate effort, schedule and costs.

1.2 Scope

This document is applicable to any Information Management/Information Technology (IM/IT) project that is delivering software.

Ensure that all assumptions, constraints and rationale (i.e. decisions) are documented in the Project Plan.

1.3 Roles

Everyone in the organisation has a role to perform in this procedure.

Role	Description/Responsibilities
Project Leader (PL)	This is the person appointed by the sponsoring department to be accountable for all external and internal aspects of a capital project. http://www.tbs-sct.gc.ca /pubs_pol/dcgpubs/TBM_122/abkglos-eng.asp
Project Manager (PM)	This is a person formally appointed to manage a project with specific accountability for achieving defined project objectives within allocated resources. A project manager has access to, and a formally defined relationship with, the project leader to which the specific project has been assigned. http://www.tbs-sct.gc.ca /pubs_pol/dcgpubs/TBM_122/abkglos-eng.asp
Project Team Member (PTM)	Software engineer or writer assigned to a project Responsible for completing project tasks, providing input to plans, and providing status
Project Management Office (PMO)	This is a distinct and temporary organisational unit led by the project manager tasked to administer a project. It consists of assigned full or part-time members of the sponsoring department and, when appropriate, representatives of participating departments working together in accordance with any interdepartmental agreements or memorandums of understanding.
Quality Assurance (QA )	Responsible for support of quality assurance activities.
Configuration Management (CM)	Responsible for support of configuration management activities.

1.4 Definitions and Acronyms

Refer to Enhanced Management Framework Lexicon.

Refer to Enhanced Management Framework Acronyms.

Refer to Enhanced Management Framework Web Links.

1.5 References

1.5.1 Traceability

This procedure was designed to satisfy the SEI Software Capability maturity goals for Level 2 Key Practice: Software Project Planning.

1.5.2 Policies

Treasury Board Secretariat Policies:

• Capital Plans - Glossary
• Management of Major Crown Projects
• Procurement Review Policy
• Project Management
• Project Approval

The policies above are located at the following URL:

http://www.tbs-sct.gc.ca /pubs_pol/dcgpubs/TBM_122/siglist-eng.asp

1.5.3 Standards

Annex A – Flowcharting Symbols

1.5.4  Processes

PPTO-PS-002 Project Planning Process

PPTO-PS-003 Project Tracking and Oversight Process

PEER-PS-001 Peer Review Process

1.5.5 Procedures

PPTO-PD-001 Estimate Software Product Size Basic Procedure

1.5.6 Guidelines

Not applicable at this time.

1.5.7 Templates

PPTO-TM-001 Process/Procedure Template

PPTO-TM-002 Project Plan Template

PPTO-TM-003 Project Estimates Template

1.5.8 Checklists

PPTO-CK-001 Project Management Checklist

2. Procedure

2.1 Entry Criteria

The following entry criteria describe the input's state, an event, or an expired amount of time, which is required before this procedure can begin.

Details of Entry Criteria

Approved Business Case Approved Project Charter Approved Set of Requirements Initial Project Plan

2.2 Procedure Map

The overall procedure flow given below shows the interaction and flow among the activities. More details about the activity steps can be found in 2.4 Activities.

2.3 Inputs

The following inputs are used in this procedure. Where they don't exist, identify any associated risks.

Input	Detail of Inputs and Remarks	Ref.
Business Case	The identification and justification of an IM/IT project that relates the IM/IT project to program priorities and the measurable improvements in program performance. - Identifies the opportunity - Describes the added value - Describes the IM/IT solution - Identifies the indicators to measure improvements in program performance	EMF Business Case Guideline
Project Charter	An agreement between technical and business groups defining: - Partners & external stakeholders - Project management framework - Roles, responsibilities, accountabilities and activities - Management commitments - Empowerment framework	EMF Project Charter Template
Initial Project Plan	Living agreement between the technical and business groups describing in greater detail the: - What: interim and final deliverables - Why: purpose and objectives - Where: scope Who: roles, responsibilities, accountabilities - How: managerial and technical processes, supporting plans - When: schedule estimates - How much: resource estimates Document what detail is known.	PPTO-TM-002
	- The above document decisions made to date that will affect the risks, constraints, assumptions and estimates.
Requirements	- Requirements should be documented in accordance with the methodologies used.
Software Size	- Need the Total KSLOC calculated at the end of the Estimate Software Product Size – Basic Procedure	PPTO-TM-002 PPTO-TM-003
Enterprise Database	- Actuals from previous IM/IT projects for comparison and verification of the planning process

2.4 Activities

The following activities are performed in this procedure. Document all assumptions, risks, constraints, etc. in the Project Plan.

No.	Activities	Action by	Detail of Activities and Remarks	Ref.
1	Determine Effort	PM	- Decide if New Development (top half of table) or Maintenance (bottom half of table) - Determine Type Of Application (1A) Determine Size Domain (1B) using the Total KSLOC input from the Estimate Software Product Size Procedure - Select and enter the Productivity Value (1D) where the Type of Application intersects with the Size Domain - Effort in Person Months (1E) is automatically calculated by dividing the Total KSLOC by the Productivity Value (1D) and multiplying by 12 (months) Note: As the Productivity Value increases, the effort decreases. (i.e., a military system will require more effort than an IT in house system)	PPTO- TM-002 PPTO- TM-003
2	Calculate Optimum Schedule (Duration)	PM	- Select and enter the Schedule Multiplier (2A) from the table column (1C) - The Optimum Schedule (2B) is then automatically calculated by taking the sub root of the Effort in Person Months (1E) and multiplying by 2.6. This equation is derived from a statistical analysis of hundreds of projects done for the Constructive Cost Model (COCOMO) 11 - Is there an Imposed Schedule (from the Project Charter or Business Case)? [YES] Go to Activity 3 [NO] Go to Activity 5 Note: The Schedule Multiplier and the formula used to calculate the Optimum Schedule are based on statistical analysis found in the References Section. Note: The Optimum Schedule is the Duration in Calendar Months. It is also the schedule required to produce the lowest cost. Decreasing or increasing the duration increases cost.	PPTO- TM-002 PPTO- TM-003
3	Verify Imposed Schedule	PM	- The Schedule Acceleration (3B) is automatically calculated by dividing the Imposed Schedule (from the Project Charter or Business Case) by the Optimum Schedule (2B) Note: Statistics verify that if the Schedule Acceleration is less than 0.75, then the schedule is impossible to meet! Note: If the duration in Activity 2 is not acceptable, then effort must be added to the project.	PPTO- TM-002 PPTO- TM-003
4	Adjust Effort to Meet Imposed Schedule	PM	- Enter the Schedule Adjustment (4B) from the table column (4A) - The Adjusted Total Effort in Person Months (4C) is automatically calculated by multiplying the Effort in Person Months (1E) by (4B)	PPTO- TM-002 PPTO- TM-003
5	Calculate Labour Costs	Project Manager	- Enter the Average Developer Cost Per Person Month (5A) in Thousands of Dollars (K$/PM) - The Total Labour Costs for Optimum Schedule (5B) is automatically calculated by multiplying Effort in Persons Months (1E) by (5A) - The Total Labour Costs for Imposed Schedule (5C) is automatically calculated by multiplying Adjusted Effort in Person Months (4C) by (5A) Note: The Average Developer Cost Per Person Month should be based on input from your own organization.	PPTO- TM-002 PPTO- TM-003
6	Calculate Capital Costs	Project Manager	- Enter any other costs associated with the project into the spreadsheet using headings and items meaningful to your particular organization. The Total Capital Costs (6Z) are totalled - A summary is provided for comparison	PPTO- TM-002 PPTO- TM-003

2.5 Outputs

The following outputs are produced or modified by the activities in this procedure.

Output	Detail of Outputs and Remarks	Ref.
Resources/Schedule Estimates	- Project Schedule - Project Effort - Total Project Costs - Background Information (Assumptions) - Use the spreadsheet to calculate the resource/schedule estimates - Append the spreadsheet to the project plan - Document all assumptions, risks, constraints, etc. in the project plan	PPTO-TM-002 PPTO-TM-003

2.6 Verification and Validation

Output Validation

To determine if the outputs are within specification, - Use the (PEER-PS-001) Peer Review Process and any techniques described in your IM/IT methodology. - Use validation techniques referred to in your IM\IT methodology such as testing, demonstration, analysis and inspection.

2.7 Exit Criteria

Details of Exit Criteria

All affected groups and individuals agree upon the resources/schedule estimates and sign-off

2.8 Metrics

Refer to Enhanced Management Framework, Exposure Draft Executive Toolkit, November 22, 1999 for the Project Health Check Dashboard.

2.9 Records Control Table

Not applicable at this time. Populate table if seeking ISO certification. For more information, refer to (PPTO-TM-001) Process/Procedure Template.

Description (no. and name)	Storage Location	Filing / Index	Minimum Storage Period

2.10 Controlled Documents Table

Not applicable at this time. Populate if seeking ISO certification. For more information, refer to (PPTO-TM-001) Process/Procedure Template.

Number	Name	Revision Date (or version)	Owner

Annex A – Lexicon

Refer to the Enhanced Management Framework Lexicon or insert a reference to your organisation's Lexicon.

Annex B – Acronyms

Refer to the Enhanced Management Framework Acronyms or insert a reference to your organisation's Acronyms.

Annex C – Flowcharting Symbols

Parallelograms represent inputs and outputs to or from a process/procedure.
Rectangles represent individual process/procedure activities.	Diamonds represent important decision points in the process/procedure.
Lines with arrowheads connect symbols to show the progression or direction of the activities.	Circles represent connectors when a process/procedure flowchart continues on the next page.

Annex D – Bibliography

Boehm, Barry, Software Engineering Economics, Prentice Hall, New Jersey, 1991.

Jones, Capers, Applied Software Measurement: Assuring Productivity and Quality, McGraw-Hill, Inc., New York, 1996.

Refer to Enhanced Management Framework Web Links.

Annex E – Document Change Control

This chart contains a history of this documents revision. The document itself should be stored in revision control, and a brief description of each version should be entered in the revision control system. That brief description can be repeated in this section.

Revision Number	Date of Issue	Author(s)	Brief Description of Change
0.1	1999-09-08	R. Mundt	Initial Document
0.2	1999-09-22	R. Mundt	Revised Draft
0.3	1999-09-23	R. Mundt	Added Spreadsheet Annex
1.0	1999-11-09	EMF/PPTO	First Draft
2.0	2000-01-21	EMF/PPTO	Second Draft

Annex F – Project Estimates Formula(s) Documentation for Project Resources and Schedule – Sheet 2

Size (Bring forward Total KSLOC from previous sheet)
(Sheet 1 - 5C) Total KSLOC
1. Effort
Productivity Value					(1C) Schedule Multiplier
(1A) Type of Application	(1B) Size Domain
	Small 0–60 KSLOC	Medium 61-250 KSLOC	Large > 250 KSLOC
New Development
IT Outsourcing	4.5	4.0	3.0		1.12
IT In House	3.0	3.6	2.7		1.12
Commercial Software / Simulators	2.0	2.5	2.0		1.20
Embedded Systems	1.6	1.5	1.0		1.32
Military Standard Embedded Systems	2.0	1.2	0.8		1.32
Ada Military Standard Embedded	2.0	2.2	2.5		1.32
Embedded Object Oriented	2.2	2.4	2.6		1.32
Maintenance
IT Outsourcing	3.2	2.8	2.1		1.12
IT In House	2.1	2.5	1.9		1.12
Commercial Software / Simulators	1.4	1.8	1.4		1.20
Embedded Systems	1.1	1.1	0.7		1.32
Military Standard Embedded Systems	1.4	0.8	0.6		1.32
Ada Military Standard Embedded	1.5	1.5	1.8		1.32
Embedded Object Oriented	1.5	1.7	1.8		1.32
(1D) Productivity Value				Intersection of "Type of Application" & "Size Domain"
(1E) Effort in Person Months				(Sheet 1 – 5C) / (1D) * 12

2. Optimum Schedule
(2A) Schedule Multiplier	Choose from Column 1C
(2B) Optimum Schedule (Duration in Calendar Months)	(2.6 * (Cube root of 1E)) * 2A

If no imposed schedule go to step 5 Labour Costs. 3. Imposed Schedule
(3A) Imposed Schedule (Duration in Calendar Months)	From Business Case or Project Charter
(3B) Schedule Acceleration	3A / 2B

4. Effort Adjustment to Meet Imposed Schedule
Description	(4A) Adjustment
Schedule Acceleration < 0.75	None Schedule is Impossible
Schedule Acceleration 0.75 – 0.80	1.23
Schedule Acceleration 0.81 – 0.95	1.08
Schedule Acceleration > 0.95	1.0
(4B) Schedule Adjustment		Choose from Column 4A
(4C) Adjusted Total Effort in Person Months		(1E) *(4B)

5 Labour Costs
(5A) Average Developer Cost Per Person Month	Use Organization's Average
(5B) Total Labour Costs for Optimum Schedule	1E * 5A
(5C) Total Labour Costs for Imposed Schedule	4C * 5A

6 Capital Costs
(6A) Development/Maintenance Environment
Hardware
Software
Other
(6B) Infrastructure Costs
Server/Network Systems
Telecom Access
Other
(6C) Additional Costs
Training
Accommodations
Translation
Other
(6Z) Total Capital Costs		Sum column

7 Summary
Size	(Sheet 1 – 5C)
	(1E)
Optimum Schedule (Duration in Calendar Months)	(2B)
Total Labour Costs for Optimum Schedule	(5B)
Imposed Schedule (Duration in Calendar Months)	(3A)
Adjusted Total Effort in Person Months (To Meet Imposed Schedule)	(4C)
Total Labour Costs for Imposed Schedule	(5C)
Total Capital Costs	(6Z)