|
BACK
TO 125 EXAMPLES in Engineering, Operations Management and Computer
Information SystemsLES |
|
|
Click below on interest: |
|
|
|
APPENDIX A
DEFINITIONS OF ESTIMATING TERMINOLOGY
APPENDIX A
DEFINITIONS OF ESTIMATING TERMINOLOGY
Algorithmic
Models - (also known as Parametric models) produce a cost estimate using one or more
mathematical algorithms using a number of variables considered to be the major
cost drivers. These models estimate effort or cost based primarily on the
Hardware/Software size, and other productivity factors known as cost driver
attributes.
Analogy - A method of estimating developed on the
basis of similarities between two or more programs, systems, items, etc.
Analogy Models - use a method of estimating that involves
comparing a proposed project with one or more similar and completed projects
where costs and schedules are known. Then, extrapolating from the actual costs
of completed projects, the model(s) estimates the cost of a proposed project.
Analometric
- A recent term meaning a method of combining the analogy and parametric
estimating methods to form a cost estimate when only 2 relevant data points are
available. It is usually combined with the "D" Factor to adjust (up
or down) complexity from the 2 point CER regression line.
Analysis - decision making context involving time
horizons extending into the future. A concrete set of specifications are not
usually available. There could be many major uncertainties, and a wide range of
alternatives, each having several configurations. Analysis is usually concerned
with new equipment proposals and new methods of operation of systems never
produced before. Analysis Objectives are to find significant differences in
resource requirements among alternatives; and, how will resource requirements
for any alternative change as key configuration characteristics vary over their
relevant ranges. It is often a "sensitivity" type of investigation.
Analysis (NES
Dictionary) - a systematic approach to problem solving. Complex problems are simplified by separating
them into more understandable elements.
Annual Change
Traffic (ACT) - the
fraction of a software product's source instructions which undergoes change
during a year, either through addition or modification. The ACT is the quantity
used to determine the product size for software maintenance effort estimation.
Anomalies - variances in cost related data caused by an
unusual event(s) not expected to recur in the future.
As Spent
Dollars - the cost, in
real year dollars, of a project recorded as the dollars were spent without
normalization for inflation.
Audit - the systematic examination of records and
documents and the securing of evidence by confirmation, physical inspection, or
examination.
Audit Trail -
information allowing the data being used in an estimate to be tracked back to
the original source for verification.
Benefit (NES Dictionary) - Result(s) attained in
terms of the goal or objective rather than in terms of output.
Benefit Cost
Analysis (NES Dictionary)
- an analytical approach to solving problems of choice. It requires: (a) the
definition of objectives; (b) identification of alternative ways of achieving
each objective; and (c) the identification for each objective or alternative
which yields the required level of benefits at the lowest cost. It is often
referred to as cost-effectiveness analysis when the benefits of the
alternatives cannot be quantified in terms of dollars.
Benefits (NES Dictionary) - advantages which may be
quantifiable or non-quantifiable. For example, lowest cost is a benefit, so is
the best accuracy and longest range.
Bottom-Up
Models - use a method of
estimation that estimates each component of the project separately, and the
results are combined ("Rolled Up") to produce an estimate of the
entire project.
Calibration - in terms of a cost model, a technique used
to allow application of a general model to a specific set of data. This is
accomplished by calculating adjustment factor(s) to compensate for differences
between the referenced historical costs and the costs predicted by the cost
model using default values.
Computer-Aided
Software Engineering: CASE
- identifies a sector of the computer software industry concerned with
producing software development environments and tools. The main components of a
CASE product are individual tools which aid the software developer or project
manager during one or more phases of software development (or maintenance).
Other features are a common user interface; interoperability of tools; and a
repository or encyclopedia to provide a common tool base and central project
database. CASE may also provide for code generation.
Configuration
Item - hardware or
software, or an aggregate of both, which is designated by the project configuration
manager (or contracting agency) for configuration management.
Configuration
Management - a discipline
applying technical and administrative controls to (1) identification and
documentation of physical and functional characteristics of configuration
items; (2) any changes to characteristics of those configuration items; and (3)
recording and reporting of change processing and implementation of the system.
Constant
Dollars - Computed values
which remove the effect of price changes over time (inflation). An estimate is
said to be in constant dollars if costs for all work are adjusted to reflect
the level of prices of a base year.
Contract Work
Breakdown Structure -
Contract work breakdown structure is defined as the complete work breakdown structure
for a contract, i.e., the DoD
approved work breakdown structure for reporting purposes and its discretionary
extension to the lower levels by the contractor, in accordance with this
standard and the contract work statement.
Cost (Fisher) - "Economic costs" are
benefits lost. It is for this reason that economic costs are often referred to
as "alternative costs" or "opportunity costs." It is in alternatives, it is in foregone opportunities, that the real
meaning of "cost" must always be found. The only reason you hesitate
to spend a dollar, incidentally, is because of the alternative things that it
could buy. Some use the word "cost" when referring to resources. Cost
of something is measured by the resources used to attain it. Cost of attaining
an objective at some point in time is measured by the resources not available
for use in attaining alternative objectives. Costs are a measure of other
defense capabilities foregone. Money cost is not necessarily the same as
economic cost. "Economic cost" implies the use of resources -
manpower, raw materials, etc. Dollars are used merely as a convenient common
denominator for aggregating numerous heterogeneous physical quantities into
meaningful "packages" for purposes of analysis and decision mating.
Cost (NES Dictionary) - the amount paid or payable
for the acquisition of materials, property, or services. In contract and
proposal usage, denotes dollars and amounts exclusive of fee or profit. Also
used with descriptive adjectives such as "acquisition cost," or
"product cost," etc. Although dollars normally are used as the unit
of measure, the broad definition of cost equates to economic resources, i.e.,
manpower, equipment, real facilities, supplies, and all other resources
necessary for weapon, project, program, or agency support systems and
activities.
Cost Analysis (NES Dictionary) - the accumulation and
analysis of actual costs, statistical data, and other information on current
and completed contracts or groups of contracts (programs). Cost analysis also
includes the extrapolation of these cost data to completion, comparisons and
analyses of these data, and cost extrapolations on a current contract with the
cost data in the contract value for reports to customers, program and
functional managers, and price estimators. In the procurement organizations of
the Department of Defense, cost analysis is the review and evaluation of a
contractor's cost or pricing data and of the judgmental factors applied
projecting from the data to the estimated costs, in order to form an opinion on
the degree to which the contractor's proposed costs represent what performance
of the contract should cost, assuming reasonable economy and efficiency.
Cost Analysis (Large) - the primary purpose of cost
analysis is comparison - to provide estimates of the comparative or relative
costs of competing systems, not to forecast precisely accurate costs suitable
for budget administration. In this context consistency of method is just as
important, perhaps more so, as accuracy in some absolute sense. In comparing
the costs of military systems, we prefer to speak of "cost analysis"
rather than "cost estimation," because the identification of the
appropriate elements of cost -- the analytical breakdown of many complex interrelated
activities and equipment -- is so important a part of the method. Weapon system
cost analysis is much more than an estimate of the cost of the weapon itself.
Weapon procurement costs may be relatively small compared to other necessary
costs, such as base facilities, training of personnel, and operating expenses;
and these other costs may vary greatly from system to system.
Cost Benefit
Analysis (NES Dictionary)
- a technique for assessing the range of costs and benefits associated with a
given option, usually to determine feasibility. Costs are generally in monetary
terms.
Cost Driver
Attributes - productivity
factors in the software product development process that include software
product attributes, computer attributes, personnel attributes, and project
attributes.
Cost Drivers - The controllable system design or planning
characteristics that have a predominant effect on the system's costs. Those few
items, using Pareto's law, that have the most significant cost impact.
Cost
Effectiveness (NES
Dictionary) - the measure of the benefits to be derived from a system with cost
as a primary or one of the primary measures.
Cost
Effectiveness Analysis
(NES Dictionary) - a method for examining alternative means of accomplishing a
desired military objective/mission for the purpose of selecting weapons and
forces which will provide the greatest military effectiveness for the cost.
Cost Estimating (Fisher) - "making an estimate" of
the cost of something implies taking a rather detailed set of specifications
and "pricing them out."
Cost Estimating (NES Dictionary) - cost and price estimating
is defined as the art of predetermining the lowest realistic cost and price of
an item or activity which assure a normal profit.
Cost Estimating
Relationship - An algorithm
relating the cost of an element to physical or functional characteristics of
that cost element or a separate cost element; or relating the cost of one cost
element to the cost of another element.
Cost Estimating
Relationships: CER - a
mathematical expression which describes, for predicative purposes, the cost of
an item or activity as a function of one or more independent variables.
Cost Factor - a brief arithmetic expression wherein cost
is determined by the application of a factor as a proportion.
Cost Model - an estimating tool consisting of one or
more cost estimating relationships, estimating methodologies, or estimating
techniques used to predict the cost of a system or one of its lower level
elements.
Cost/Schedule
Control System Criteria: C/
Current Dollars - Level of costs in the year actual cost will
be incurred. When prior costs are stated in current dollars, the figures given
are the actual amounts paid. When future costs are stated in current dollars,
the figures given are the actual amounts expected to be paid including any
amount due to future price changes.
Deflators - The de-escalation factors used to adjust
current cost/price to an earlier base year for comparison purposes. A deflator
is the inverse of an escalator.
Delivered
Source Instructions: DSIs - the number of source lines of code
developed by the project. The number of DSIs is the
primary input to many software cost estimating tools. The term DELIVERED
is generally meant to exclude non-delivered support software such as test
drivers. The term SOURCE INSTRUCTIONS includes all program instructions
created by project personnel and proceed into machine code by some combination
of preprocessors, compilers, and assemblers. It excludes comments and
unmodified utility software. It includes job control language, format
statements, and data declarations.
Detail
Estimating: Grass Roots, Bottom-Up - The logical buildup of estimated hours and material by use of
blue-prints, production planning tickets, or other data whereby each operation
is assigned a time value.
Design to Cost:
DOD-
Domain - a specific phase or area of the software
life cycle in which a developer works. Domains define developers and users
areas of responsibility and the scope of possible relationships between
products. The work can be organized by domains such as Software Engineering
Environments, Documentation, Project Management, etc.
Economics (Hitch and McRean)
- economics is concerned with allocating resources. Economizing
always means trying to make the most efficient use of the resources available.
Economics Analysis
(Hitch and McRean) - economic analysis - ranging from
just straight thinking about alternative courses of action to systematic
quantitative comparisons, to identify or achieve near "optimal"
solutions.
Economic Analysis
(DoDI 7041.3) - a systematic approach to the problem
of choosing how to employ scarce resources and an investigation of the full
implications of achieving a given objective in the most efficient and effective
manner.
Economic
Analysis (NES Dictionary)
- a systematic approach to a given problem, designed to assist the manager in
solving a problem of choice. The full problem is investigated; objectives and
alternatives are searched out and compared in light of their benefits and costs
through the use of an appropriate analytical framework. Often
used to determine the best use of scarce resources.
Effectiveness (DoDI 7041.3) - the
performance or output received from an approach or program.
Effort
Adjustment Factor: EAF -
a term used in COCOMO to calculate the cost driver attribute's effect on the
project. It is the product of the effort multipliers corresponding to each of
the cost drivers for the project.
Embedded Node - a term used by COCOMO to describe a project
development that is characterized by tight, inflexible constraints and
interface requirements. The product must operate within (is embedded in) a
strongly coupled complex of hardware, software, regulations and operational
procedures. An embedded mode project will require a great deal of innovation.
An example would be a real-time system with timing constraints and customized
hardware.
Equivalent
Units - the number, or
fraction, of completed units at a given time.
Estimating (NES
Dictionary) - to predict costs. Generation of detailed and realistic forecasts of hours, material
costs, or other requirements for a task, subtask, operation, or a part or
groups thereof - generally in response to a request for proposal or specific
statement of work. The art of approximating the probable worth (or cost),
extent, quantity, quality, or character of something based on information
available at the time. It also covers the generation of forecasted costing
rates and factors with which estimate numbers may be converted to costs, and
the application of these costing rates and factors to "estimate
numbers" to establish forecasted costs.
Expert Judgment
Models - use a method of
software estimation that is based on consultation with one or more experts that
have experience with similar projects. An expert-consensus mechanism such as
the DELPHI TECHNIQUE may be used to produce the estimate.
Fixed Year Dollars
- dollars that have been adjusted for inflation to a specific year.
Historical Data - a term used to describe a set of data
reflecting actual cost or past experience of a product or process.
Improvement
Curve - a graphical representation
of improvement curve theory that projects resource requirements versus the
number of units produced. Examples include labor hours, labor cost, direct cost
including labor and materials. When reflecting only labor hours the curve is
usually called a learning curve. When depicting cost, it is normally referred
to as a Cost Improvement Curve.
Inflation - an increase in the level of prices for the
same item(s). Examples of indices that reflect inflation include Consumer Price
Index (
Knowledge Base -
the repository of knowledge in a computer system or organization. The collection of data,
rules, and processes that are used to control a system, especially one using
artificial intelligence or expert system methods.
Life Cycle - the stages and process through which
hardware or software passes during its development and operational use. The useful life of a system. Its length depends on the
nature and volatility of the business, as well as the software development
tools used to generate the databases and applications.
Management
Information Systems - a
computer based system of processing and organizing information that provides
different levels of management within an organization with accurate and timely
information needed for supervising activities, tracking progress, making
decisions, and isolating and solving problems.
Metric - Quantitative analysis values calculated
according to a precise definition and used to establish comparative aspects of
development progress, quality assessment or choice of options.
Normalize - to adjust data (normally cost data) for
effects like inflation, anomalies, seasonal patterns, technology changes,
accounting system changes, reorganizations, etc.
Operation (Philip Morse: Notes on Operations Research,
MIT Press 1962) - an operation is a pattern of activity of men or of men and
machines, engaged in carrying out a cooperative and usually repetitive task,
with pre-set goals and according to specified rules of operation.
Operational
Research (Operational
Research Quarterly, Vol. 13, No. 3, 282 (Sept. 1962)) - operational research is
the attack of modern science on complex problems arising in the direction and
management of large systems of men, machines, materials, and money in industry,
business, government, and defense. The distinctive approach is to develop a
scientific model of the system, incorporating measurements of factors such as
chance and risk, with which to predict and compare the outcomes of alternative
decisions, strategies, or controls. The purpose is to help management determine
its policies and actions scientifically.
Operations Research
(Norse, same as above) - the scientific study of operations.
Organic Mode - a term used by COCOMO to describe a project
that is developed in a familiar, stable environment. The product is similar to
previously developed products. Most people connected with the project have
extensive experience in working with related systems and have a thorough
understanding of the project. The project contains a minimum of innovative data
processing architectures or algorithms. The product requires little innovation
and is relatively small, rarely greater than 50,000 DSIs.
Paradigm - a model, example, or pattern. A generally accepted way of thinking.
Parametric Cost
Estimate - Estimate
derived from statistical correlation of historic system costs with performance
and/or physical attributes of the system.
Parametric Cost
Estimating Methods -
Estimating methods based on physical or performance characteristics and
schedules of the end items.
Parametric Cost
Model - A mathematical
representation of parametric cost estimating relationships that provides a
logical and predictable correlation between the physical or functional
characteristics of a system, and the resultant cost of the system. A parametric
cost model is an estimating system comprising cost estimating relationships (CERs) and other parametric estimating functions, e.g., cost
quantity relationships, inflation factors, staff skills, schedules, etc.
Parametric cost models yield product or service costs at designated levels and
may provide departmentalized breakdown of generic cost elements. A parametric
cost model provides a logical and repeatable relationship between input
variables and resultant costs.
Parametric
Estimating - a
mathematical procedure where product or service descriptors (parameters) and
cost algorithms directly yield consistent cost information.
Platform - hardware or software architecture of a
particular model or family of computers. The term sometimes refers to the
hardware and its operating system.
Procedures - manual procedures are human tasks. Machine
procedures are lists of routines or programs to be executed, such as described
by the Job Control Language (JCL) in a mini or mainframe, or the batch
processing language in a personal computer.
Process - the sequence of activities (in software
development) described in terms of the user roles, user tasks, rules, events,
work products, resource use, and the relationships between them. It may include
the specific design methodology, language, documentation standards, etc.
Production Rate - the number of items produced in a given
time period (e.g., items/month).
Program
Evaluation (DoDI 7041.3) - is the economic analysis of on-going actions
to determine how best to improve an approved program/project based on actual
performance. Program evaluation studies entail a comparison of actual performance
with the approved program/project.
Program
Evaluation and Review Technique: PERT - a method used to size a software or hardware product and calculate
the Standard Deviation (SD) for risk assessment. For example, the PERT equation
(beta distribution) estimates the Equivalent Delivered Source Instructions (EDBIs) and the SD based on the analyst's estimates of the
lowest possible size, the most likely size, and the highest possible size of
each Computer Program Component (
Program Work
Breakdown Structure - A
program work breakdown structure covers the entire acquisition cycle of a program, consists of at least the first three levels of a
work breakdown structure, as prescribed by
Rapid Prototyping
- the creation of a working model of a software module to demonstrate the
feasibility of the function.
The prototype is later refined for inclusion in a final product.
Rayleigh Distribution - a
curve that yields a good approximation to the actual labor curves on software
projects.
Real-Time - (1) Immediate response. The term may refer
to fast transaction processing systems in business; however, it is normally
used to refer to process control applications. For example, in avionics and
space flight, real-time computers must respond instantly to signals sent to
them.
(2) Any electronic operation that is
performed in the same time frame as its real-world counterpart. For example, it
takes a fast computer to simulate complex, solid models moving on screen at the
same rate they move in the real world. Real-time video transmission produces a
live broadcast.
Re-engineering - process of restructuring and redesigning an
operational (or coded) hardware or software system or process in order to make
it meet certain style, structure, or performance standards.
Resource
Analysis (Fisher) - systematically
determining the economic resource impact of alternative proposals for future
courses of action.
Resources (Fisher)
- raw materials, skilled personnel, scarce materials or chemicals, etc.
Resources (NES Dictionary) - consists of facilities,
equipment, management, personnel, laboratories, and scientific, technical, and
manufacturing capability.
Reusability - ability to use all or the greater part of
the same programming code or system design in another application.
Reuse - software development technique that allows
the design and construction of reusable modules, objects, or units, that are
stored in a library or database for future use in new applications. Reuse can
be applied to any methodology in the construction phase, but is most effective
when object oriented design methodologies are used.
Schedule - a time display of the milestone events and
activities of a program or project.
Scope - a definition of how, when, where, and what
a project is expected to include and accomplish.
Security - the protection from accidental or malicious
access, use, modification, destruction, or disclosure. There are two aspects to
security, confidentiality and integrity.
Semi-detached
Mode - a term used by
COCOMO to describe a project that is developed somewhere between organic and
embedded. The team members have a mixture of experienced and inexperienced
personnel. The software to be developed has some characteristics of both
organic and embedded modes. Semi-detached software can be as large as 300K DSIs.
Should Cost
Estimate - An estimate of
contract price which reflects reasonably achievable economy and efficiency. It
is generally accomplished by a team of procurement, contract administration,
cost analysis, audit and engineering representatives performing an in-depth
analysis of cost and cost effects. Its purpose is to develop realistic cost
objectives.
Software
Development Life Cycle -
the stages and process through which software passes during its development.
This includes requirements definition, analysis, design, coding, testing, and
maintenance.
Software
Development Life Cycle Methodology - application of methods, rules, and postulates to
the software development process to establish completeness criteria, assure
an efficient process, and develop a high quality product.
Software Method - (or Software Methodology) - focuses on how
to navigate through each phase of the software process model (determining data,
control, or uses hierarchies; partitioning functions; and allocating requirements)
and how to represent phase products (structure charts; stimulus-response
threads; and state transition diagrams).
Software Tool -
program that aids in the development of other software programs. It may assist the programmer in the design,
code, compile, link, edit, or debug phases.
Systems
Analysis (Fisher) -
Systems analysis may be defined as inquiry to assist decisionmakers
in choosing preferred future courses of action by (1) systematically examining
and reexamining the relevant objectives and the alternative policies or
strategies for achieving them; and (2) comparing quantitatively where possible
the economic costs, effectiveness {benefits), and risks of alternatives.
Technical Non-Cost Data - engineering variables that describe the item, subsystem or system. The source of this data includes engineering
documents, engineering drawings and works of a technical nature which are
specified to be delivered pursuant to the contract.
Top-Down Models - use a method of estimation that estimates
the overall cost and effort of the proposed project derived from global
properties of the project. The total cost and schedule is partitioned into
components for planning purposes.
Update - to update an estimate or CER means to
utilize the most recent data to make it current, accurate and complete.
Validation - in terms of a cost model, a process used to
determine whether the model selected for a particular estimate is a reliable
predictor of costs for the type of system being estimated.
Work Breakdown
Structure - A work
breakdown structure is a product-oriented family tree, composed of hardware,
software, services, data and facilities which results from system engineering
efforts during the development and production of a defense material item, and
which completely defines the program. A work breakdown structure displays and
defines the product(s) to be developed or produced and relates the elements of
work to be accomplished to each other and to the end product.
Workstation - high-performance, single user microcomputer
or minicomputer that has been specialized for graphics, CAD,
|
BACK TO 100 examples in Business, Operations and
Engineering. |
|
Do it once, do it right, and do it now. |
|
Back to Lawson Computing Homepage |
Apply as needed,
when needed. |
