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Knowledge Solution Services:
 Size Matters – Regardless of What You
                       Have Been Told!

                      David Herron
           David Consulting Group
d.herron@davidconsultinggroup.com
Challenges Project Managers Face Today
• Shifting Priorities
    –Scope
    –Schedule
• Unrealistic Expectations
    –Customer
    –Service Management
• Lack of Performance
    –Productivity
    –Skill Levels
• Inability to Properly Manage the Project
©2012 David Consulting Group   1
What Does the Customer Want?
                                We manage the customer;
                               and, we manage the project.

     Customer’s Needs                            Manager’s Challenge
Quicker                                           Shifting Priorities
 Time to market                                       Schedules
                                                      Requirements
Better                                            Expectations
 Functional Quality                                  Availability
                                                     Reliability
Cheaper                                           Performance
 Lowest Possible Cost                                 Outsourcing


©2012 David Consulting Group                2
What Do We Use to Measure Projects?



      What We Manage               What We Measure
  Shifting Priorities              Schedule
      Schedules
      Requirements                 Cost
  Expectations
                                   Quality
     Availability
     Reliability
                                   Project Deliverables
  Performance
      Outsourcing


©2012 David Consulting Group   3
Basis of Measures
You Manage…                     By Monitoring…   Based On…

Schedule                         Plan vs         Estimated scope
                                 Actual


Costs                            Plan vs         Scope, resources
                                 Actual

Project                          Features,       Requirements
Deliverables                     Functions

Quality                          Defects         Removal Efficiency
 ©2012 David Consulting Group              4
Where Did You Go Wrong?
• You’ve estimated the scope and created a project
  plan
• You’ve determined the cost of the project based
  on scope and available resources
• The requirements have been documented
• You are inspecting code and removing defects

… And your project still comes in late, over budget
and with poor quality!


©2012 David Consulting Group   5
Managing All the Pieces


                                           DELIVERABLE
                   SCHEDULE



                                Is There
                               Something
                                Missing?

      COST                                          QUALITY




©2012 David Consulting Group      6
Size Does Matter
• Finding: Nine out of 10 projects that fail have not
  been sized properly

• Consider: When you build a house you specify all
  the functions and features you want – those are
  your requirements. The builder then generates an
  estimate based on the size (square footage) of
  your requirements.

• Size is the key to effectively managing software
  projects
©2012 David Consulting Group   7
Tracking Performance Without Size


  Project                      Cost          Quality
                               (000’s)       (Defects Released)

  PO Special                   $500          12
  Vendor Mods                  $760          18
  Pricing Adj.                 $80           5
  Store Sys.                   $990          22




©2012 David Consulting Group             8
Tracking Performance With Size


Project                        Size               Cost       Rate     Quality     Density
                               (Functional Value) (000’s)             (Defects
                                                                      Released)
PO                             250                $500       $2,000   12          .048
Special
Vendor                         765                $760       $993     18          .023
Mods
Pricing                        100                $80        $800     5           .050
Adj.
Store Sys. 1498                                   $990       $660     22          .014




©2012 David Consulting Group                             9
Characteristics of Effective Sizing
• Meaningful to developer and user
• Defined (industry recognized)
• Consistent (methodology)
• Easy to learn and apply
• Accurate, statistically based
• Available when needed (early)
• Addresses project-level information needs




©2012 David Consulting Group   10
Why Function Points?
         Function Point Analysis is the standardized method for
          measuring the functionality delivered to the end user.

•    Consistent method
•    Easy to learn
•    Available early in the lifecycle
•    Acceptable level of accuracy
•    Meaningful internally and externally

       Function Points have replaced Line of Code counts as a
           sizing metric that can be used consistently and
                   with a high degree of accuracy.

©2012 David Consulting Group       11
The Function Point Methodology
The software deliverable is sized based upon the
functionality delivered.
                                                 Five key components are
• Inputs                                   identified based on logical user view

• Outputs                                           Input        Inquiry   Output

• Inquiries
• Data Stores
                                                         Data
• Interface Files                                       Stores


                               Interface                    Application
                                  File



©2012 David Consulting Group               12
Functionality Identified


                                                                                    PURCHASE
                 USER                         USER                                   ORDER
                                                               Input                 SYSTEM
Inputs                    ADD, CHG
                                                     PAYMENTS
                          INVOICES
                                                                                 Interface
                                                                         PURCHASE
                                                                         ORDER INFO
                                              PAYMENTS
                         INVOICES
                                                                              Inquiry
                                              VENDOR
                                Data Stores                                 USER

                                                                       PAYMENT
                                                                       STATUS
                               ACCOUNTS PAYABLE
                                                                              Output
                                                                            USER

                                                                        PAID
                                                                        INVOICES




©2012 David Consulting Group                              13
Determine the Functional Size
        COMPONENTS ARE ASSESSED BASED UPON COMPLEXITY:
                               Data Element Types (Fields or Attributes)
                               File Types Referenced (Data Stores)
                               Record Element Types (Data Sub-Groups)
        (Note: Details are not known to us so we assume average values)

                                                                  Complexity

       Components:                                Low                  Avg.       High    Total

                Data Stores                                  X7          3
                                                                       X 10        X 15      30
                Interfaces                                   X5    1   X 7         X 10       7
                Inputs                                       X3    3   X 4         X 6       12
                Outputs                                      X4    1   X 5         X 7        5
                Inquiries                                    X3    1   X 4         X 6        4
                                                                                              58
                                                                  Function Point Size



©2012 David Consulting Group                            14
Other Quantitative Measures
  • Level of Effort
            –    Project Manager
            –    Staff Personnel
            –    Overtime
            –    Company Meetings
  • Duration (Time to Market)
            – Project stoppage
            – Concept
            – Requirements through first delivery
  • Quality (Defect Density)
            – Post release defects
            – Defects by phase
            – Entry point, discovery point, fix point
©2012 David Consulting Group                15
Estimating Using Delivery Rates


                               DEFINITION                CAPABILITY



                                                                             ESTIMATES
      PROJECT                           PROJECT           DELIVERY      =
        SIZE                           COMPLEXITY           RATE
                                                                             – Effort


                               Function Points             Profiles

                                 58                          11 FP/PM            5.3
                                                                            Person Months


©2012 David Consulting Group                        16
Utilization of Function Points
Function point size reflects the business functionality
being delivered to the customer. The size value is
available for use in conjunction with numerous
measures to quantify and to evaluate software
delivery and performance.

                 For Example:
                           Development Cost per Function Point
                           Support Cost per Function Point
                           Delivered Defects per Function Point
                           Function Points per Staff Month
                           Project Delivery Rate (Hours per Function Point)
                           Portfolio Function Points supported by one FTE
                           Speed of Delivery or Function Points per Elapsed Month



©2012 David Consulting Group                         17
Size Makes the Difference
• Size makes standard project measures more
  meaningful
• Function Point Analysis is an effective sizing
  technique
• Performance measures can be developed using
  Function Points as a base measure




©2012 David Consulting Group   18
Contact Us
Email: d.herron@davidconsultinggroup.com

Phone: 1-610-644-2856, ext 21

http://www.davidconsultinggroup.com


          @DavidConsultGrp
          /DavidConsultGrp
          /company/David-Consulting-Group




©2012 David Consulting Group          19

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Function Point Analysis: Size Matters - No Matter What You Have Been Told!

  • 1. Knowledge Solution Services: Size Matters – Regardless of What You Have Been Told! David Herron David Consulting Group d.herron@davidconsultinggroup.com
  • 2. Challenges Project Managers Face Today • Shifting Priorities –Scope –Schedule • Unrealistic Expectations –Customer –Service Management • Lack of Performance –Productivity –Skill Levels • Inability to Properly Manage the Project ©2012 David Consulting Group 1
  • 3. What Does the Customer Want? We manage the customer; and, we manage the project. Customer’s Needs Manager’s Challenge Quicker Shifting Priorities Time to market Schedules Requirements Better Expectations Functional Quality Availability Reliability Cheaper Performance Lowest Possible Cost Outsourcing ©2012 David Consulting Group 2
  • 4. What Do We Use to Measure Projects? What We Manage What We Measure Shifting Priorities Schedule Schedules Requirements Cost Expectations Quality Availability Reliability Project Deliverables Performance Outsourcing ©2012 David Consulting Group 3
  • 5. Basis of Measures You Manage… By Monitoring… Based On… Schedule Plan vs Estimated scope Actual Costs Plan vs Scope, resources Actual Project Features, Requirements Deliverables Functions Quality Defects Removal Efficiency ©2012 David Consulting Group 4
  • 6. Where Did You Go Wrong? • You’ve estimated the scope and created a project plan • You’ve determined the cost of the project based on scope and available resources • The requirements have been documented • You are inspecting code and removing defects … And your project still comes in late, over budget and with poor quality! ©2012 David Consulting Group 5
  • 7. Managing All the Pieces DELIVERABLE SCHEDULE Is There Something Missing? COST QUALITY ©2012 David Consulting Group 6
  • 8. Size Does Matter • Finding: Nine out of 10 projects that fail have not been sized properly • Consider: When you build a house you specify all the functions and features you want – those are your requirements. The builder then generates an estimate based on the size (square footage) of your requirements. • Size is the key to effectively managing software projects ©2012 David Consulting Group 7
  • 9. Tracking Performance Without Size Project Cost Quality (000’s) (Defects Released) PO Special $500 12 Vendor Mods $760 18 Pricing Adj. $80 5 Store Sys. $990 22 ©2012 David Consulting Group 8
  • 10. Tracking Performance With Size Project Size Cost Rate Quality Density (Functional Value) (000’s) (Defects Released) PO 250 $500 $2,000 12 .048 Special Vendor 765 $760 $993 18 .023 Mods Pricing 100 $80 $800 5 .050 Adj. Store Sys. 1498 $990 $660 22 .014 ©2012 David Consulting Group 9
  • 11. Characteristics of Effective Sizing • Meaningful to developer and user • Defined (industry recognized) • Consistent (methodology) • Easy to learn and apply • Accurate, statistically based • Available when needed (early) • Addresses project-level information needs ©2012 David Consulting Group 10
  • 12. Why Function Points? Function Point Analysis is the standardized method for measuring the functionality delivered to the end user. • Consistent method • Easy to learn • Available early in the lifecycle • Acceptable level of accuracy • Meaningful internally and externally Function Points have replaced Line of Code counts as a sizing metric that can be used consistently and with a high degree of accuracy. ©2012 David Consulting Group 11
  • 13. The Function Point Methodology The software deliverable is sized based upon the functionality delivered. Five key components are • Inputs identified based on logical user view • Outputs Input Inquiry Output • Inquiries • Data Stores Data • Interface Files Stores Interface Application File ©2012 David Consulting Group 12
  • 14. Functionality Identified PURCHASE USER USER ORDER Input SYSTEM Inputs ADD, CHG PAYMENTS INVOICES Interface PURCHASE ORDER INFO PAYMENTS INVOICES Inquiry VENDOR Data Stores USER PAYMENT STATUS ACCOUNTS PAYABLE Output USER PAID INVOICES ©2012 David Consulting Group 13
  • 15. Determine the Functional Size COMPONENTS ARE ASSESSED BASED UPON COMPLEXITY: Data Element Types (Fields or Attributes) File Types Referenced (Data Stores) Record Element Types (Data Sub-Groups) (Note: Details are not known to us so we assume average values) Complexity Components: Low Avg. High Total Data Stores X7 3 X 10 X 15 30 Interfaces X5 1 X 7 X 10 7 Inputs X3 3 X 4 X 6 12 Outputs X4 1 X 5 X 7 5 Inquiries X3 1 X 4 X 6 4 58 Function Point Size ©2012 David Consulting Group 14
  • 16. Other Quantitative Measures • Level of Effort – Project Manager – Staff Personnel – Overtime – Company Meetings • Duration (Time to Market) – Project stoppage – Concept – Requirements through first delivery • Quality (Defect Density) – Post release defects – Defects by phase – Entry point, discovery point, fix point ©2012 David Consulting Group 15
  • 17. Estimating Using Delivery Rates DEFINITION CAPABILITY ESTIMATES PROJECT PROJECT DELIVERY = SIZE COMPLEXITY RATE – Effort Function Points Profiles 58 11 FP/PM 5.3 Person Months ©2012 David Consulting Group 16
  • 18. Utilization of Function Points Function point size reflects the business functionality being delivered to the customer. The size value is available for use in conjunction with numerous measures to quantify and to evaluate software delivery and performance. For Example: Development Cost per Function Point Support Cost per Function Point Delivered Defects per Function Point Function Points per Staff Month Project Delivery Rate (Hours per Function Point) Portfolio Function Points supported by one FTE Speed of Delivery or Function Points per Elapsed Month ©2012 David Consulting Group 17
  • 19. Size Makes the Difference • Size makes standard project measures more meaningful • Function Point Analysis is an effective sizing technique • Performance measures can be developed using Function Points as a base measure ©2012 David Consulting Group 18
  • 20. Contact Us Email: d.herron@davidconsultinggroup.com Phone: 1-610-644-2856, ext 21 http://www.davidconsultinggroup.com @DavidConsultGrp /DavidConsultGrp /company/David-Consulting-Group ©2012 David Consulting Group 19