IBS 540

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IBS 540

• Week 8

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Budgeting and Cost Estimation

• The budget serves as a standard for comparison
• It is a baseline from which to measure the
  difference between the actual and planned use of
  resources
• Budgeting procedures must associate resource use
  with the achievement of organizational goals or
  the planning/control process becomes useless
• The budget is simply the project plan in another
  form

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Estimating Project Budgets

• In order to develop a budget, we must
• Forecast what resources the project will require
• Determine the required quantity of each
• Decide when they will be needed
• Understand how much they will cost - including
  the effects of potential price inflation
• There are two fundamentally different strategies
  for data gathering
• Top-down
• Bottom-up

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Top-Down Budgeting

• This strategy is based on collecting the judgment
  and experiences of top and middle managers
• These cost estimates are then given to lower
  level managers, who are expected to continue the
  breakdown into budget estimates

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Bottom-Up Budgeting

• In this method, elemental tasks, their schedules,
  and their individual budgets are constructed
  following the WBS or project action plan
• The people doing the work are consulted regarding
  times and budgets for the tasks to ensure the
  best level of accuracy
• Initially, estimates are made in terms of
  resources, such as labor hours and materials
• Bottom-up budgets should be and usually are, more
  accurate in the detailed tasks, but it is
  critical that all elements be included

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Bottom-Up Budgeting

• Advantages
• Individuals closer to the work are apt to have a
  more accurate idea of resource requirements
• The direct involvement of low-level managers in
  budget preparation increases the likelihood that
  they will accept the result with a minimum of
  aversion
• Involvement is a good managerial training
  technique, giving junior managers valuable
  experience

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Budgeting

• Top-down budgeting is very common
• True bottom-up budgets are rare
• Senior managers see the bottom-up process as
  risky
• They tend not to be particularly trusting of
  ambitious subordinates who they fear may
  overstate resource requirements
• They are reluctant to hand over control to
  subordinates whose experience and motives are
  questionable

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Work Element Costing

• The actual process of building a budget - either
  top-down or bottom-up - tends to be a
  straightforward but tedious process
• Each work element in the action plan or WBS is
  evaluated for its resource requirements, and then
  the cost
• Direct costs for resources and machinery are
  charged directly to the project.

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TIME, QUALITY, BUDGET
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TIME, QUALITY, BUDGET

• Project managers must focus on three dimensions
  of project success.

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TIME, QUALITY, BUDGET

• Simply put, project success means completing all
  project deliverables
• on time,
• within budget,
• and to a level of quality that is acceptable to
  sponsors and stakeholders.

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stay within budget !
deliver on time !
deliver a quality product !
Rushing to deliver on a tight schedule means you
will have to sacrifice quality or increase your
budget to cover extra workers Delivering a
quality product could mean missing a deadline and
going over budget. Staying under budget may
allow you to deliver on time, but youll
sacrifice quality.
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TIME, QUALITY, BUDGET

• It is a project managers job to balance the
  competing sides of the triangle. To do this, you
  have to first define the three sides of the
  triangle, then identify how a change in one side
  will affect the other two.  

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Determine The Project Deliverables

• Determine the projects deliverable. You need to
  know the scope of the project and the
  expectations of the sponsor and customer. Put
  down in writing all of the original requirements.
  Anything not on this list is out of the scope of
  your project.

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Schedule-Budget

• Determine the projects schedule. Identify major
  milestones and delivery dates. When does the
  project begin and end?
• Determine what it should cost to complete the
  projects original requirements in time to meet
  the delivery schedule.

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The Triple Constraint

• To be a successful project manager, you must
  actively manage the interactions between the
  three sides of the triangle throughout the
  project. In the end, no matter what trade-offs
  you make or how you put together scope, time, and
  cost, you will end up with a longsided triangle.
  But it will always be a triangle, and thats the
  point.  

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Links to read more

• http//www.useit.com/alertbox/20030602.html
• http//www.aabalonered.com/pdf/aaredwebmethod04100
  2.pdf

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Usability Testing
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Usability Tests Overview

• The understanding of how an individual user
  navigates, finds information and interacts with
  your web site.
• It s an one on one watch and learn approach.

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What is Usability Testing?

• One to two day process with 4-8 participants
• 1-hour approx. per session
• Pre-determined tasks performed
• Test facilitator watches takes notes
• Sometimes video taped
• Sometimes watched by development team
• Results show what is working and not working

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Overview

• "Two distinct advantages to formal testing it
  provides feedback for site development, and it is
  an educational opportunity for designers and
  engineers, allowing them to see firsthand the
  decision-making process of an average site
  visitor"
• -Jupiter

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Cost Comparisons

• 0Informal testing, with friends/co-workers
• 300 - 500Informal Testing, 2-days, outside
  participants
• 1000Semi-formal testing, outside company finds
  prescreens participants
• 2,000 - 10,000Formal, professional testing
  with experts laboratory orformal testing
  environment Human factors specialists,impartial
  and consistent. Trained to plan, set up,conduct,
  analyze and report results

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User Centered Design

• UCD is the practice of designing around the user
  identify specific usability needs and
  requirements
• Referred to as human factors engineering or
  ergonomics
• Focus on making the design fit the user, instead
  of user fitting design

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The Earlier the Better

• Conducting tests earlier in the process is
  cheaper and easier because
• Able to identify problems and make changes early
  in development process
• Testing wireframes or paper prototypes early in
  process doesn't affect time or budget
• Testing an HTML protosite is helps identify
  structural navigational issues

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Use the Appropriate Method

• Usability Testing
• Collects first hand data through observation
• Used throughout development process
• Task oriented, non-disputable result
• Focus Groups
• Collects opinions and feedback
• Used early in the development cycle
• Representative user and market
• Good for overall layout, information designand
  navigation schemes
• Surveys
• Used throughout process
• statistically significant feedback
• Conducted by phone, mail or email

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Identify Problem Areas Early?

• Usability testing helps to identify problem areas
  within the site
• Settle disputes with data instead of guesses
• Provide real feedback with actual users
• Low-cost for valuable results
• What is obvious to you might not be obvious to
  the user
• Minimize risk prior to launch

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Goals and Objectives

• Identify problem areas solution goals
• Develop specific tasks to fit goals
• Develop test plan (purpose, problem, profile)
• Create task list
• Test on co-worker or friend
• Keep it simple
• Plan on testing in user's own environment

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• Don't try and test your entire site at once

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5 Step Process

• Testing Overview

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A basic plan will contain the following

• 1. Overall Goals/Objectives2. Methodology3.
  Target Profile4. Testing Outline5. Specific
  Task List6. Final Evaluation/Reporting Structure
  

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Conduct Test- What do you need?

• Checkoff List
• NDA ready for signing
• http//www.secretsites.com/legal/set_legal.html
• Batteries charged for video camera(along with
  camera and tapes)
• Printout of site for easier notetaking
• List of sequenced, predetermined tasks
• Survey form ready for post-testing
• Cash payment in envelope

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Orientation Dos

• Introduce yourself, explain why you are here
• Explain your role as a silent observer
• Explain you are not testing and there are no
  wrong answers
• Explain participant can think aloud if desired
• Keep session relaxed, use humor when appropriate
• Stay impartial

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Orientation Don'ts

• Don't tell them what the tasks are in advance, or
  how many
• Don't say "this is so easy" - no expectations is
  better
• Don't rescue participants when struggling
• Know when to 'give up' and list as failed task
• Don't answer questions, but respond impartially

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Collect Basic Data

• Could they complete the task?
• Did they need help?
• How much time did it take? (track time through
  testing)
• Stumbling blocks (problems/obstacles)
• Overall observations, commentary
• Sample user grid

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Post Test Survey

• Prepare survey on paper for user to fill in
• Ask basic questions about how user felt overall
  about site graphics, logic, copy, navigation,
  etc.
• Rate questions on a scale of 110
• Gather data about overall effectiveness of site

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Compile and Summarize Data

• Gather data as you go
• Transfer handwritten notes to computer
• Write reports while test is still fresh in your
  mind
• Summarize data in grid format showing results,
  problem areas and comments
• Identify problem areas
• Identify global or broad-scope issues
• Identify specific task-oriented issues

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What (minimum) equipment do you need to formally
test a web site?

• Computer with Internet access
• Person to monitor the test participant
• where they went,
• what they clicked,
• how long did it take
• A task, or list of tasks for the test participant
  to perform
• Video camera (optimum 2 cameras) to capture
• Participants face
• Computer screen

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Why videotape the session?

• Documentation for other members of the
  development team
• If something goes wrong, the test participant
  will have some reaction on face and on screen
• Debriefing (end of session)
• Tester monitor review session (run through
  video)
• Stop video at interesting points to discuss
• Reasons participant performed the task the way
  they did
• What participant would like to happen

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Layout of the room
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PC is connected to notebook. Notebook displays
whatever happens on the participants PC
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Video camera set to record notebook screen and
participant at PC (ideal setup would have 2
cameras)
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The TV shows the video camera recording tester
test participant review this at the end of the
session
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How many people do you test?

• 5 people provide sufficient test results and
  feedback (Jakob Nielsen)
• For Online _at_ RMIT
• Group 1 (establishing benchmarks)
• 5 novice users
• 5 more experienced users
• Group 2
• 5 novice users after induction

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How do you measure usability?

• The product is usable if participants performed
  most of the tasks
• Benchmarking (Group 1)
• Quantitative n testers took x minutes to
  perform task 2
• Qualitative comments/discussion, e.g., if
  everyone had problem with a task, to highlight
  design flaws. Or positive feedback.

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What happens with the results?

• Results are tabled as a report (to development
  team)
• Feeds back into the design process