Estimation pitfalls to avoid

Estimating projects can be challenging, and there are common pitfalls that can lead to inaccurate or unrealistic estimates. Recognizing these pitfalls and implementing strategies to mitigate risks can help improve the accuracy of project estimation. Some of the common estimation pitfalls to avoid include:

Over-optimism: Being overly optimistic about the effort, time, and cost required to complete a project can lead to underestimation. It's essential to be realistic and consider potential challenges and uncertainties.

Lack of Historical Data: Estimating without adequate historical data or benchmarks can result in inaccurate estimates. Leveraging past project data and lessons learned can provide valuable insights for more accurate estimation.

Unrealistic Deadlines: Setting unrealistic deadlines or succumbing to external pressure to meet aggressive timelines can lead to underestimated effort and increased risks. It's important to set realistic deadlines based on proper estimation techniques.

Hours vs. Duration: It's important to communicate the distinction between hours and duration to avoid misunderstandings. Hours refer to the amount of time spent on a specific task or project, whereas duration refers to the overall length of time it takes to complete the project. For example, a project may take 100 hours of work to complete, but if it is spread out over two weeks, the duration would be 14 days. Discuss the limitations of hourly estimates and factors that can impact the project timeline. Overlooking Overhead: Be sure to account for overhead items, such as meeting time, multiple resources collaborating, project administration, feedback cycles, context switching, delays, and other project-related activities. These overhead items can significantly increase the overall effort and time required for a project but are often overlooked, resulting in inaccurate estimations.

STRATEGIES FOR MITIGATING ESTIMATION RISKS

• Leverage historical data and past project performance to establish benchmarks and improve estimation accuracy.

• Use multiple estimation techniques and involve the project team in the estimation process for diverse perspectives.

• Regularly review and update estimates as the project progresses and new information becomes available.

• Clearly communicate assumptions, risks, and uncertainties associated with the estimates to stakeholders.

• Conduct post-project reviews to identify estimation errors and learn from past mistakes.