Requirements estimation guideline for IT projects at Scania Networks AB ANATOL SIAMIONAU Master of Science Thesis Stockholm, Sweden 2011 TRITA-ICT-EX-2011:168 Institutionen för data- och systemvetenskap Master Thesis Slutseminariedatum 2011‐07‐01 Room 501, 13.00‐15.00, KTH, Forum, Kista Author Uppsatsnummer Anatol Siamionau +46‐738788903 [email protected] Title 82 pages Requirements estimation guideline for IT projects at Scania Networks AB Supervisor: Gunnar Björkman, [email protected] Keywords Software, requirements, costs, estimation, process, guideline Abstract There is a big lack in mechanisms and models of estimating initial requests based on high requirements specifications in software implementation and development projects. The report is done to satisfy needs of Scania Networks organization – the IT project coordinator at Scania. The problem is that Scania Networks clients demand to make a quick and rough estimation in a very early stage of a project, and there is no common method for requirements estimating based on high level description. To suggest and apply the right requirements estimation method, quantitative research methodology will be used with the following methods: survey, interviews, workshop, literature review, data analysis. As a result, the report will provide a requirements estimation guideline with recommended estimation methods and processes for making rough requirements estimations in software projects. Several valuable recommendations of current threats and available opportunities at Scania Networks organization were identified. In addition, I proposed initial requirements for lessons learned repository, identified barriers for accurate estimation, suggested overcome solutions and adopted analysis effort estimation method and Use‐Case‐Points at Scania Networks. Analysis effort method can reduce up to 80% man‐hours efforts spent on estimation. Furthermore, time response to client is decreasing up to 75% with a help of this method. The analysis effort method was accepted and validated during the internal workshop among project managers and application usage experts. Use‐Case‐Points method is recommended to use for development projects as an additional estimation technique to analysis effort. Each of the method is supported with a detail estimation process guideline. The report will be useful to read for project managers, business analysts, account managers, application usage experts primarily from Scania Networks organization, but also it might be interesting to other professionals who are interested in improving the way of doing rough estimations in software development and implementation projects. The thesis corresponds to 30 credits for the author. Glossary and definitions Name Description AAA South America, Africa and Australia AM DMS Automaster Dealer Management System ASD Application Service Desk Autoline Dealer Management System Axapta Microsoft Dynamics AX CAST Computer Aided Sales Tool CCS Common Commercial Systems CESOW Central Specification on the Web System CNE Central‐Northern Europe COCOMO The Constructive Cost Model COSYSMO The Constructive Systems Engineering Cost Model CR Change Request EBS Evidence‐Based Scheduling EN Scania Networks AB ENA Applications and Portfolio department, Scania Networks ENB business department , Scania Networks ENC Financial Controlling department, Scania Networks ENH Human Resources department, Scania Networks ENM Sites Management department, Scania Networks ENS Implementation and Marketing department, Scania Networks ENO Operations and Support department, Scania Networks FP Functional Point I.H.S. Invoice Handling System Method A model or technique to answer “how” question Process A model showing a workflow, answering “what” question PPS Practical Project Steering PERT Program Evaluation and Review Technique PROBE PROxy Based Estimation P&W Parts & Workshops PM Person‐months RAMAS Repair and Maintenance Administration System RUP Rational Unified Process SBA Scania Business Analyzer SDS Scania Dealer Management System Site a specific market or IT unit at Scania Networks SLOC Source lines of code SPAS Distributor Parts Administrative System SPISA Centrally stores sales support information application S&S Sales & Service, Scania VS Vehicle Sales WBS Work‐breakdown structure WPU Warranty Process Upgrade WSE West and South Europe UCP User Case Points UFP Unadjusted Function Points Table of Content 1 Introduction and methodology ............................................................................. 1 1.1 Background ....................................................................................................... 1 1.2 Problem background ......................................................................................... 2 1.3 Problem ............................................................................................................. 3 1.4 Purpose ............................................................................................................. 3 1.5 Method ............................................................................................................. 3 1.6 Limitations ........................................................................................................ 6 2 Estimation methods review .................................................................................. 7 2.1 Algorithmic model‐based techniques overview ............................................... 8 2.2 Expert judgment‐based methods ................................................................... 10 2.3 Methods accuracy ........................................................................................... 12 2.4 Estimating depending on software development methodology .................... 13 2.5 General estimating process for software development project .................... 17 2.6 General estimating process for change requests ........................................... 19 3 Scania Networks ................................................................................................. 21 3.1 Scania Networks organization ........................................................................ 21 3.2 Types of clients’ assignments at Scania Networks ......................................... 22 3.3 Time & Cost Estimation by Infomate .............................................................. 30 3.4 Workshop results ............................................................................................ 30 3.5 Barriers for estimation process ...................................................................... 31 4 Estimation guideline for Scania Networks ........................................................... 33 4.1 Recommendations for choosing estimation methods ................................... 33 4.2 Applying analysis effort ................................................................................... 35 4.3 Applying Use‐Case‐Points estimation as an alternative ................................ 52 5 Validation of the requirements estimation method ............................................ 59 6 Conclusions ......................................................................................................... 63 Future Work ............................................................................................................... 64 References ............................................................................................................... 65 Appendix A. Activities Plan with important milestones .......................................... 68 Appendix B. Scania implementation activities list .................................................... 69 Appendix C. Feasibility and Inception phase activities list ....................................... 70 Appendix D. Roles and responsibilities at Scania Networks ..................................... 72 Appendix E. Surveys results ..................................................................................... 73 1 Introduction and methodology 1.1 Background Nowadays more and more companies understand the importance of IT in supporting core business operations. Industries invest in their sales and services departments, where IT plays one of the most important roles. Whatever business the company has, whether it is manufacturing, automotive or telecommunications, IT solutions helps sales departments to meet customers’ expectations and satisfy clients needs, for example: Customer Relationship Management (CRM) systems, Dealer Management Systems (DMS), invoice management and many other examples. Major part of IT resources is involved in software implementation and development projects, while others are focused on continuing maintenance and support. Requirements estimation process s a part of every software development or implementation project (IEEE, 2006). The project success directly depends on how accurate and how properly estimations were done. The companies need to secure that all important components were included in estimations; otherwise the project has a big chance to be failed or just simply be out of budget. According to IEEE Standard for Developing a Software Project Life Cycle Process (IEEE, 2006), requirements estimation is already a part of software development process. In practice customers require to see rough estimations to approve the project before signing the contract. This is rather usual situation today in software business and although there are many estimating methods and techniques, there is a big lack in