Webinar

BAO TM1 Estimation

2012 IBM Corporation

IBM Proprietary and Confidential

Topic

Topic
TopicObjectives:
Objectives:

Describe
Describethe
thesteps
stepsand
andinfluencing
influencing
factors
in
project
estimation
factors in project estimation

Estimating TM1
Projects

Explain
Explainthe
thevarious
varioustabs
tabsand
andkey
keyfields
fieldsinin
TM1
TM1Estimating
Estimatingwidget
widget
Create
Createaabudget
budgetand
andaaproject
projectestimate
estimate
using
the
estimating
widget
using the estimating widget

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

Estimation steps and influencing factors (1 of 4)

Step 1: Scoping
Influencing factors:
What type of application is this (Budget / Planning application or Data analysis /
Reporting, or both)?
Is data sourcing to the application and export to a data mart / DWH part of the scope?
If a Budget / Planning application, is it a new process or migrating from a legacy
system?
Is the setup of an operational TM1 Group to assist users and manage the facility to be
included?
Who is responsible for data quality the client or the project team?

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

Estimation steps and influencing factors (2 of 4)

Step 2: TM1 Components
Influencing factors:
How many dimensions will be required?
How many metadata sources are identified?
How complex are the data transformations and data matches?
How many modules and cubes are required, and how complex are they?
How many unique user views are involved?

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

Estimation steps and influencing factors (3 of 4)

Step 3: Project Starting Point and Gap
Influencing factors:

Quality Data Model

Access to suitable intellectual capital and domain experience
Familiarity with the problem space
Is it being built to last?
How many unique user views are involved?

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

Estimation steps and influencing factors (4 of 4)

Step 4: Environment
Influencing factors:
What is the Data Quality like?
What is the Client Organization Sponsorship Cohesion like?
Are the Requirements clear?
Are Operations flexible?
Who is making the key technology decisions?

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Project Information

Enter the project name and

client name.

Enter the project duration

details.

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Instructions

Size directly relates to object

count: Larger applications tend to
require more objects than small
ones.
Object complexity relates to how
much time is required to build
any one object. The more
complex it is, the longer it takes.

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Expectations on Size

Review the object count by Module

Size tab.

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Module / Object Complexity

Review Module vs. Object

complexity and describe how they
relate to each other.

10

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Object Complexity Hours

Once objects are identified and counted at a specific

level of complexity, it can be priced (in hours).
The model does NOT take into account varying skill
levels between practitioners in the allocation of hours to
development tasks.

11

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: The Budgetary Estimate

(1 of 3)

Using the
questions on the
Budgetary
Estimate Q&A tab,
the practitioner
needs to identify
what modules will
be needed, what
the size of those
modules is, and
what the module
complexity is

12

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: The Budgetary Estimate

(2 of 3)
Fill in the choices and enter the length of the work week.

Fill in the choices, enter the length of the work week, and fill out
the staff plan.
The purpose of the value in the Manager Threshold is to identify
the point at which a PM should be considered Full Time.

13

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: The Budgetary Estimate

(3 of 3)

Fill in the staff

plan here.
Enter the count
of each type of
resource and
the % of the
project hours to
be consumed
by those
resources.

14

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Bid Transition

Review the Bid Transition

Check List with the sales
team to identify any
important omissions from
the selling process that is
likely to have an impact on
project cost.
Ensure these items are
properly addressed
elsewhere as these costs
are NOT accommodated
for in the widget.

15

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: The Project Estimate

Enter the count of each object

type, by complexity, for each
module.
Note that the widget allows for
up to 10 discrete modules.

16

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Summary and Staff Plan

This section shows the

labor hours for each activity
according to the modules.

Enter the length of the work

week and Full Manager
Threshold.

17

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: Summary and Staff Plan

(continued)
Fill in the staff
plan.
For each
resource type,
enter the count
of each type of
resource and
the percentage
of the project
hours to be
consumed by
those
resources.
Enter the
Expense %
here.
The Total
Project
Estimate cost
excludes any
risk premiums
that might be
required by risk
management.

18

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

The TM1 Estimating Widget: The Rates Table

Ensure to update your

rates to reflect what the
specific sector is willing to
charge.

19

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

Activity Preparing a Budgetary Estimate

Turn to page 26 in your Participant Workbook.
Purpose: Prepare a budgetary estimate
Process: Open up your Estimating Widget template. Individually, prepare a budgetary
estimate for a financial planning application for Engulf and Devour, Incorporated, a Fortune
100 firm with offices in over 100 countries.
Duration: 20 minutes.
You may ask questions for the first 10 minutes of the exercise.
Product: A budgetary estimate.

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BAO TM1 Method Workshop: Day 2

TM1 Estimating
Widget

2012 IBM Corporation

IBM Proprietary and Confidential

 Types of Estimates: Indicative Pricing, T&M,

Capped T&M, Fixed Price, and so on

Discussion
Time

SOW Language: How to address

uncertainty.
Top-Down estimates versus Bottom Up
Staff Planning: Band designations vs.
skillsets
Resource Continuity: Providing a viable staff
plan that is consistent with the development
need
Project Management: How much is enough?
Approvals (LOB, TDA, and so on) and the
impact on pricing

21

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential

Questions?

22

BAO TM1 Method Workshop: Day 2

2012 IBM Corporation

IBM Proprietary and Confidential