Based on a recommended practice from AACEi the NESMA has produced a framework for estimating IT Services.

1. NESMA
WG ESTIMATION

2. Background
 NESMA 2020
Vision of expanding the playing field by collaboration
 AACE International
Association for the Advancement of Cost Engineering
International
www.aacei.org
 NESMA interactive member session April 2012
Vision of expanding the playing field by collaboration
=> WG Estimation

3. Functional Sizing
 FSM Methods (ISO)
COSMIC, NESMA, IFPUG, FiSMA, Mark II
 Benchmarking: ISBSG
International Software Benchmarking Standards Group
=> ISO standard (based on other industries)
 Business Needs, what to do with “points”
Benchmarking
Estimation
 Estimation: ???
=> standard (based on other industries)
Basis of Estimate: Best Practise 34R-05

4. Estimation Challenges
 Estimation Process
Consistent
Controllable
 Estimation Verification
Defendable
Comparable
 Estimation Validation
Defendable
Benchmark

5. Purpose of Basis of Estimate
 Document the overall engagement scope.
 Communicate the estimator’s knowledge of the engagement
by demonstrating an understanding of scope, quality and
duration as it relates to cost.
 Alert the stakeholders to potential cost risks and opportunities.
 Provide a record of key communications made during estimate
preparation.
 Provide a record of all documents used to prepare the
estimate.
 Act as a source of support during dispute resolutions.
 Establish the initial baseline for scope, quantities, effort,
duration and cost for use in engagement control.
 Provide the historical relationships between base-lined
estimates throughout the project lifecycle.
 Facilitate the review and validation of the estimates.

6. Content (I) – General
 Purpose
 Engagement Scope Description
Decomposes the solution into its constituent elements;
the Product Breakdown Structure (PBS)
 Methodology
Primary estimating methodology (functional size based, expert
based, analogy based, process metrics based, parametric)
 Estimate Classification
Cost Estimate Classification System, AACE Practice 17R-97

7. Content (II) – Basis
 Design
Estimate deliverables (process); architectural documents
 Sizing
Units (e.g. Functional Size, Technical Size, Support Size)
 Effort
Methods (and tools) used to convert to size into effort
 Planning
Activities, Milestones and Constraints
 Cost
Methods and sources used for determining all unit, effort,
subcontract, material and expenditures cost

8. Content (III) – Risks
 Allowances
 Assumptions
 Exclusions
 Exceptions
Anomalies or variances to standard estimating practices
 Risks and Opportunities
High risk or opportunity related to cost, duration, quality and/or
safety
 Containments
Measures included to prevent and/or mitigate the identified risks
 Contingencies

9. Content (IV)
 Reconciliation
major differences between the new or re-baselined estimate and the last
published estimate
 Benchmarking
comparisons of overall estimate metrics, ratios, and factors with similar
engagements, historical data, and industry data
 Quality Assurance
 Estimating Team
 Appendices:
 Estimate Deliverables Checklist
 Reference Documents
sizing report, requirements, designs, texts, notes, specifications
 Additional Attachments (optional)
reconciliation report, benchmarking report, risk analysis report

10. Schedule for publication
 Base Document 31-08 ready
 Review (1) NESMA
[45 days] 01-09 15-10 started
 Rework Version 0.5 16-10 31-10
 Review (2) MAIN
[45 days] 01-11 15-12
 Rework Version 0.8 16-12 15-01
 Review (3) AACE International
[45 days] 16-01 28-02
 Rework Version 1.0
publication AACE / MAIN 01-06

11. Acknowledgement
Working Group Estimation
 Ton Dekkers (Chair) Galorath International
 Hans Bernink ING
 Martin Eisma CGI
 Ray Sadal CapGemini
 Jelle de Vries Ordina

12. Request
Who wants to join the review of the
Basis of Estimate – Software
Services
Contact
Ton Dekkers
ton.dekkers@nesma.nl