Sizing and Estimating ERP Implementations
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(2) 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. Schedule Size vs. Effort. © Quantitative Software Management, Inc. #2.
(3) Outline • Key differentiators between ERP implementations and software development • Sizing ERP implementations RICEF objects Configuration items Normalizing to a common metric. • Estimating ERP implementations. © Quantitative Software Management, Inc. #3.
(4) Quotations “Perfection is the enemy of the possible” - Voltaire (paraphrased). “Precision is not accuracy” - William Horton. © Quantitative Software Management, Inc. #4.
(5) Key Differentiators • Software projects create code Develop new systems Modify existing systems Are measured (sized) by the functionality they deliver and/or the code they create. • Software projects may . Develop interfaces Have hardware, network, telecom components Convert data Have system setup and configuration © Quantitative Software Management, Inc. #5.
(6) Key Differentiators • ERP Implementations have Significant system setup & configuration Hardware, network, & telecom components. • ERP Implementations may . Develop interfaces Convert data Create additional functionality Modify existing functionality. © Quantitative Software Management, Inc. #6.
(7) Sizing ERP Implementations • ERP Implementation size: two components Configurations Customizations. • Configurations include parameters, properties, rules, values, table setup • Customizations are principally code • Proportions vary between projects • ERP sizing must consider both. © Quantitative Software Management, Inc. #7.
(8) 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). © Quantitative Software Management, Inc. #8.
(9) Configuration Example: Tables • Average table has 3 indices to define 20 columns to define 20 data types (one per column). • Average table (in this example) requires 43 elementary activities (or implementation units) to create Gearing factor of 43. © Quantitative Software Management, Inc. #9.
(10) 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. © Quantitative Software Management, Inc. #10.
(11) Sample Gearing Factor Table: RICEF Objects Component SimpleReports AverageReports ComplexReports SimpleInterfaces AverageInterfaces ComplexInterfaces SimpleConversion AverageConversions ComplexConversions SimpleEnhancements AverageEnhancements ComplexEnhancements SimpleForms AverageForms ComplexForms. GearingFactor. Number. Size. 100 200 300 320 620 1520 100 200 300 100 500 1000 100 200 300. 10 5 20 2 12 1 2 5 2 2 1 3 2 15 3. 1000 1000 6000 640 7440 1520 200 1000 600 200 500 3000 200 3000 900. Total. 27,200. © Quantitative Software Management, Inc. #11.
(12) 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). © Quantitative Software Management, Inc. #12.
(13) Schedule Schedule vs Size. 100. 10. +1ı. Months. Average 1. -1ı 1. 10. 100. 0.1 1,000. Size (thousands) All Sy stems. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #13.
(14) Schedule Schedule vs Size. 100. Black lines are 2008 trends for Business IT Projects 10. Months 1. Blue lines are trends from 88 ERP implementation projects sized with RICEF objects and configuration items 1. 10. 0.1 1,000. 100 Size (thousands). All Sy stems. QSM 2008 Business. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #14.
(15) Effort Effort vs Size. 1,000. 100 Effort Hours (thousands). 10. 1. 1. 10. 100. 0.1 1,000. Size (thousands) All Sy stems. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #15.
(16) Effort Effort vs Size. 1,000. 100 Effort Hours (thousands). 10. 1. 1. 10. 0.1 1,000. 100 Size (thousands). All Sy stems. QSM 2008 Business. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #16.
(17) Average Staff Average Staff vs Size. 1,000. 100. Average Staff. 10. 1. 1. 10. 100. 0.1 1,000. Size (thousands) All Sy stems. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #17.
(18) Average Staff Average Staff vs Size. 1,000. 100. Average Staff. 10. 1. 1. 10. 0.1 1,000. 100 Size (thousands). All Sy stems. QSM 2008 Business. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #18.
(19) Productivity Parameter Productivity Parameter vs Size. 35. 30. 25. 15. Productivity Parameter. 20. 10. 5. 1. 10. 100. 0 1,000. Size (thousands) All Sy stems. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #19.
(20) Productivity Parameter Productivity Parameter vs Size. 35. 30. 25. 15. Productivity Parameter. 20. 10. 5. 1. 10. 0 1,000. 100 Size (thousands). All Sy stems. QSM 2008 Business. Av g. Line Sty le. 1 Sigma Line Sty le. © Quantitative Software Management, Inc. #20.
(21) 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 © Quantitative Software Management, Inc. #21.
(22) ERP Estimation Demo • Estimate project size • Create Baseline estimate • Model with schedule & effort constraints. © Quantitative Software Management, Inc. #22.
(23) Questions?. © Quantitative Software Management, Inc..
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