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Common estimation methods

1. SWAG (Scientific Wild-Ass Guess)

  • Description: A rough, experience-based guess that lacks detailed analysis.
  • When to Use:
  • Early-stage discussions when little information is available.
  • When a quick ballpark figure is needed.
  • Informal or exploratory planning.
  • Example:
    "This project might take around six months, but we need more details to be sure."

2. ROM (Rough Order of Magnitude)

  • Description: A high-level estimate with a broad accuracy range (typically ±50% or more).
  • When to Use:
  • Initial feasibility studies.
  • Budgeting and executive decision-making.
  • Before detailed scope or requirements are available.
  • Example:
    "This project will cost between $500K and $1M."

3. T-Shirt Sizing (XS, S, M, L, XL, XXL, etc.)

  • Description: Uses broad size categories instead of precise numbers, often based on complexity or effort.
  • When to Use:
  • Agile development and backlog grooming.
  • When detailed effort estimation isn't practical.
  • Relative comparisons between tasks rather than absolute time estimates.
  • Example:
    "Feature A is a Medium, but Feature B is an XL, so it will take significantly longer."

4. Three-Point Estimation (PERT: Program Evaluation and Review Technique)

  • Description: Uses three estimates—Optimistic (O), Pessimistic (P), and Most Likely (M)—to calculate an expected value using the formula:
    [ E = \frac{O + 4M + P}{6} ]
  • When to Use:
  • When uncertainty needs to be factored into planning.
  • For more accurate and risk-aware estimates.
  • Example:
    "Best case: 3 days, worst case: 10 days, most likely: 6 days. Expected time = (3 + 4×6 + 10) ÷ 6 ≈ 6.2 days."

5. Story Points (Agile Estimation)

  • Description: Assigns effort values to user stories based on complexity, risk, and unknowns, often using Fibonacci-like sequences (1, 2, 3, 5, 8, etc.).
  • When to Use:
  • Agile teams working with Scrum or Kanban.
  • When estimating development effort without tying it directly to time.
  • Example:
    "This user story is a 5 because it's more complex than a 3 but not as large as an 8."

Choosing the Right Estimation Method

Method Accuracy Best Used For
SWAG Very Low Quick ballpark figures, informal discussions
ROM Low Early feasibility, budget planning
T-Shirt Sizing Medium Agile backlog sizing, high-level estimates
Three-Point (PERT) High Risk-aware estimation, detailed planning
Story Points Medium-High Agile development, effort-based planning

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