How do you select estimation metrics for various project types?

For different project types, selecting estimation metrics requires understanding unique project characteristics. For software projects, metrics like Function Points or Lines of Code suit development estimation. Construction projects might use square footage or material quantities. Agile projects benefit from story points or velocity for iterative planning. Analyze historical data to select appropriate metrics. Consider complexity, scope, and available resources, adjusting metrics based on project size, risks, and technology. Continuous refinement is key, ensuring selected metrics align with project goals and evolve to meet changing project demands.

In my experience, estimation metrics are a key factor in the success of a project. Without them, you may lose track of the budget, deadline, or scope of a project. But there's no such thing as the right Estimation Metrics since it will vary from each project. A marketing campaign relies on person-hours, Brand awareness, Customer engagement, Conversion rate, Clickthrough Rate, Cost per Lead, Marketing Qualified Leads, Sales Qualified Leads, ROI metrics. But if we are talking about a software development project, almost none of them can be applied.

If you don't have the correct estimation metrics, you will face difficulties from the kick-off to the end of your project. When presenting a project to management, you need a solid estimation to show what are the benefits and expected results of that endeavor, to receive the green light, and to ensure the correct resources and support to deliver it. It's the same thing after the project is concluded, without estimation metrics, you cannot manage expectations by presenting the the level of success achieved accurately.

Selecting estimation metrics depends on the project type. For software development, lines of code or function points may be relevant. In construction, square footage or labour hours are common. The choice should align with project specifics, complexity, and the availability of historical data for accurate estimation.

Use metrics like cyclomatic complexity or Halstead complexity measures to understand the complexity of the codebase. High complexity might indicate more effort needed. Estimate the functionality of the software based on user inputs, outputs, inquiries, files, and external interfaces. Measure the size of the codebase, but be cautious as it may not directly correlate with effort or quality. Earned Value Management (EVM): Integrates cost, schedule, and scope to provide a comprehensive view of project performance. Return on Investment (ROI): Evaluate the financial success of the campaign in terms of revenue generated compared to the cost.

Project success varies across industries, but a universal tip for project managers is to define clear success metrics. Start by creating a list of essential criteria for a project’s success, profitability, and timeliness. These are your Key Performance Indicators (KPIs). Understand these well—if not, there's groundwork to do. Following these KPIs closely ensures project success. Meeting these KPIs is vital. Hold your team accountable, foster teamwork over competition, and steer clear of anyone who's inflexible or unwilling to consider alternatives. These individuals are direct poison to your project and anyone involved. Do your best to directly confront them about things and expel them out of your project by any means you can.

I think there are 2 ways metrics can be applied - 1) Based on the industry 2) Based on the Lifecycle of the project The estimation metrics must be tailored to suit the project and at what point of the lifecycle is at. Additional Consideration is to have continuous feedback from the client so see if they feel the metrics are in line with their expectation of the project.

For software Projects : Use Case Points (UCP): Calculate the number of use case points based on the complexity and number of use cases in software requirements. Function Points (FP): Assess the functionality of the software to estimate the number of function points. Lines of Code (LOC): Estimate the effort based on the number of lines of code, considering the programming language and complexity. IT Projects: Use methods like Planning Poker, story points, and sprint velocity for iterative development. PERT : Estimate the time required for project tasks based on optimistic, pessimistic, and most likely scenarios. Resource-Based Estimation: Consider the availability and expertise of resources involved in the project.

Any type of metric can be used, as long as the PM remembers to tailor to the projects and customer needs. PM should not be hung up on a particular type for all their projects. By tailoring they can always find newer ways.

Software Development Projects: LOC (Lines of Code): Measures the size of the codebase. Function Points: Measures the functionality provided to the user. Velocity: Agile metric measuring the amount of work completed in a sprint. Construction Projects: Cost per square foot/meter: Estimates the cost of construction per unit area. Time to Completion: The total time it takes to finish the construction project. Resource Utilization: How efficiently resources (labor, materials) are used. Marketing Campaigns: Conversion Rate: Percentage of users who take a desired action. Return on Investment (ROI): Measures the profitability of a marketing campaign. Customer Acquisition Cost (CAC): The cost associated with acquiring a new customer.

Estimation metrics in project management have challenges and limitations. These include: Inaccuracies: Estimation metrics can be imprecise, leading to overruns or delays. Bias: Biases, conscious or not, may influence estimates. Changing Requirements: Changing project requirements can invalidate early estimates. Data Availability: Historical data may be sparse or not applicable for unique projects. External Factors: Economic or environmental factors can affect estimations. Human Error: Estimations are subject to human judgment and error. Complexity: Some projects are too complex for accurate estimation. Despite these limitations, estimation metrics remain valuable for project planning and management.

Metrics-based estimates will reflect the averages of your database. The challenge is to first, see where your new project is deviating from you database, and second, to judge the impact of the deviation on your estimate. In particular, to judge whether the metrics still hold for your new project.

Some things to keep in mind : -Project Scope and Objectives -Data Availability and Reliability -Level of Detail and Accuracy Required -Project Maturity and Team Experience -Stakeholder Expectations and Preferences -Project Methodology and Approach -Industry Standards and Best Practices -Continuous Evaluation and Refinement

Key performance indicators or Estimation metrices in Project Management are of utmost importance and an absolute achievement of conformity is desired. No matter what we do, coming up with a perfect project KPI scheme is not possible. There is soo much variance in actual life or practical life that it is simply not possible to include them and account for them at the beginning of any project. So, allow room for improvement and constant upgradation of your KPI measurement scheme.