Project Estimation

Approaching Project Estimation

A typical approach to post-discovery project estimation is shown in the example provided below.  This approach can be taken as a good jumping-off point in estimating task sizes and prioritising sprints as the project progresses to development.

Estimation

The first task is to define the effort brackets (also known as t-shirt sizes) to be used for project effort estimation.   At an early stage of the project it's useful to use effort ranges in order to convey a level of uncertainty, and depict the expected lowest, average and highest effort scenarios.  An example is provided below, however this can be adjusted so it makes sense for your specific project:

• Base = minimal effort (0 to 1 days)
• Small = simple configuration (1 to 2 days)
• Medium = average configuration or simple custom solution (3 - 7 days)
• Large = complex configuration or average custom solution (10 - 20 days)
• X-Large = complex custom solution (20 to 40 days) 

Once the estimation brackets are defined, each story or requirement in the backlog can be estimated.  The total effort can then be used to identify the project team resource requirements.

Prioritisation

In addition to identifying the T-shirt size effort estimates against each requirement, it is also important to run through requirement prioritisation.

The MOSCOW framework (MUST, SHOULD, COULD and WON'T) is a good way to prioritise requirements as the project moves into development.

Estimation By Priority

Once estimation and prioritisation is complete the overall project estimate can be broken down by requirement priority levels.  This can be really useful for defining the project scope vs. budget, and having a conversation with the client around potentially re-categorising the priority or certain requirements if the budget or timeline needs to be optimised.

This can also be translated into Statement of Work (SOW) options as shown in the example below.