sizing and estimating erp implementations proceedings/isma4-2009/ism… · · 2013-10-04sizing...
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Sizing and Estimating ERP Sizing and Estimating ERP ImplementationsImplementations
Donald M. BeckettDonald M. BeckettQuantitative Software Management, Inc.Quantitative Software Management, Inc.
2000 Corporate Ridge, Suite 9002000 Corporate Ridge, Suite 900Mclean, VA 22102Mclean, VA 22102
Tel: 703 790Tel: 703 790--0055, Fax 703 7490055, Fax 703 749--37953795Email: [email protected] Email: [email protected] Web: www.qsm.comWeb: www.qsm.com
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Objectives
• Provide conference attendees with a practical method for estimating the project size of ERP implementations that is both easy to learn and apply
• Compare the behavior of ERP implementations to other business IT projects
Size vs. ScheduleSize vs. Effort
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Outline
• Key differentiators between ERP implementations and software development
• Sizing ERP implementationsRICEF objectsConfiguration itemsNormalizing to a common metric
• Estimating ERP implementations
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Quotations
“Perfection is the enemy of the possible”- Voltaire (paraphrased)
“Precision is not accuracy”- William Horton
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Key Differentiators
• Software projects create codeDevelop new systemsModify existing systemsAre measured (sized) by the functionality they deliver and/or the code they create
• Software projects mayDevelop interfacesHave hardware, network, telecom componentsConvert dataHave system setup and configuration
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Key Differentiators
• ERP Implementations haveSignificant system setup & configurationHardware, network, & telecom components
• ERP Implementations mayDevelop interfacesConvert dataCreate additional functionalityModify existing functionality
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Sizing ERP Implementations
• ERP Implementation size: two componentsConfigurationsCustomizations
• Configurations include parameters, properties, rules, values, table setup
• Customizations are principally code• Proportions vary between projects• ERP sizing must consider both
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Configurations
• Estimate the number of configuration items (by category & complexity)
Best case, worst case, most likely scenarios• Normalize them to a common elementary
unit (using gearing factors)
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ConfigurationExample: Tables
• Average table has 3 indices to define20 columns to define20 data types (one per column)
• Average table (in this example) requires 43 elementary activities (or implementation units) to create
Gearing factor of 43
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Customizations
• RICEF objects: Reports, Interfaces,Conversions, Enhancements, Forms
• Estimate counts of each item (by complexity)
• Normalize them to a common elementary unit (using gearing factors)
• Add to normalized configuration items count for an estimated project size
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Sample Gearing Factor Table: RICEF Objects
Component Gearing Factor Number SizeSimple Reports 100 10 1000Average Reports 200 5 1000Complex Reports 300 20 6000Simple Interfaces 320 2 640Average Interfaces 620 12 7440Complex Interfaces 1520 1 1520Simple Conversion 100 2 200Average Conversions 200 5 1000Complex Conversions 300 2 600Simple Enhancements 100 2 200Average Enhancements 500 1 500Complex Enhancements 1000 3 3000Simple Forms 100 2 200Average Forms 200 15 3000Complex Forms 300 3 900
Total 27,200
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But, Does it Work?
• Step 1: Size completed ERP implementations using configuration items and RICEF objects
• Step 2: Compare trends for Effort, Schedule, Staffing, and Productivity to trends for Business IT projects (non-ERP)
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ScheduleSchedule vs Size
1 10 100 1,000Size (thousands)
0.1
1
10
100M
onths
All Sy stems Av g. Line Sty le 1 Sigma Line Sty le
Average
+1
-1
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Schedule
Schedule vs Size
1 10 100 1,000Size (thousands)
0.1
1
10
100
Months
All Sy stems QSM 2008 Business Av g. Line Sty le 1 Sigma Line Sty le
Black lines are 2008 trends for Business IT Projects
Blue lines are trends from 88 ERP implementation projects sized with RICEF objects and configuration items
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Effort
Effort vs Size
1 10 100 1,000Size (thousands)
0.1
1
10
100
1,000Effort H
ours (thousands)
All Sy stems Av g. Line Sty le 1 Sigma Line Sty le
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Effort
Effort vs Size
1 10 100 1,000Size (thousands)
0.1
1
10
100
1,000Effort H
ours (thousands)
All Sy stems QSM 2008 Business Av g. Line Sty le 1 Sigma Line Sty le
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Average Staff
Average Staff vs Size
1 10 100 1,000Size (thousands)
0.1
1
10
100
1,000A
verage Staff
All Sy stems Av g. Line Sty le 1 Sigma Line Sty le
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Average Staff
Average Staff vs Size
1 10 100 1,000Size (thousands)
0.1
1
10
100
1,000A
verage Staff
All Sy stems QSM 2008 Business Av g. Line Sty le 1 Sigma Line Sty le
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ProductivityParameter
Productivity Parameter vs Size
1 10 100 1,000Size (thousands)
0
5
10
15
20
25
30
35
Productivity Parameter
All Sy stems Av g. Line Sty le 1 Sigma Line Sty le
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ProductivityParameter
Productivity Parameter vs Size
1 10 100 1,000Size (thousands)
0
5
10
15
20
25
30
35
Productivity Parameter
All Sy stems QSM 2008 Business Av g. Line Sty le 1 Sigma Line Sty le
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Conclusions
• ERP Implementations have very similar behavior to other Business IT projects
Schedule, effort, staffing, productivity• Parametric estimation techniques used for
Business IT projects are applicable to ERP implementations
• ERP Implementation size can be effectively estimated using Configuration Items and RICEF Objects
Widely used by U.S. government for estimation and tracking
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ERP Estimation Demo
• Estimate project size• Create Baseline estimate• Model with schedule & effort constraints
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Questions?