Estimating the Cost of eLearning Projects:// 1 TAAC 7 - 2002 Estimating the Cost of eLearning Projects

Estimating the Cost of eLearning Projects http://www.marksteinerinc.com 1

TAAC 7 - 2002TAAC 7 - 2002

Estimating

the Cost of

eLearning Projects


Session AgendaSession Agenda

Introductions Quotefest®

Session Approach Process Roles Milestones &

Deliverables

RFP’s Assumptions Estimation Types Estimation

Techniques Pitfalls Q & A


Who Am I?Who Am I?

BS Industrial Tech. ‘88

MS Instructional Design ‘92

10+ years eLearning & interactive media dev. experience

Dozens of projects from 2 min. to 33 hours in runtime

Authorware 2.0, 1993 LearningSpace,

Dreamweaver, Director

Presenter - eLearning Confs. US & Europe

Started own eLearning company in March 2001


Who Are You?Who Are You?

Corporate/Academic/Government mix

Project Manager/ID/Developer mix Average size of projects What do you expect to learn?


A Quote . . . A Quote . . .

All people who have turned out worth anything have had the chief hand in their education.–Sir Walter Scott


Session ApproachSession Approach

I usually dislike when people say: “Oh, it’s an art.”

Art vs. Science: I’m going to attempt to identify as much of the science as I can.

Science = Process: Remember the Scientific Method?

I’m a science / process person, therefore this session will have that sort of approach

Ummm . . . There’s still some art to it. ; )


Process PossibilitiesProcess Possibilities

The ADDIE model Rapid Prototyping A Hybrid Approach A variety of other approaches


Roles Roles

Strategy eLearning Project

Manager eLearning Strategist

Content Instructional Designer eLearning Programmer Instructional Developer Graphics Media Specialist Training Administrator

Technology Technical Architect Integration Specialist

Client Buyer Acceptor Project Manager Reviewer SME


Another Quote . . . Another Quote . . .

The secret of getting ahead is getting started. The secret of getting started is breaking your complex overwhelming tasks into small manageable tasks, and then starting on the first one.–Mark Twain


Milestones and DeliverablesMilestones and Deliverables

Needs Analysis Design Document Prototype Storyboards Scripts Alpha/Beta/Final Other Services


M&D: Needs AnalysisM&D: Needs Analysis

Duty/Task Analysis Audience Analysis Define Scope-Content, Technology,

Media Instructional Strategy Infrastructure Strategy Training Administration


M&D: Design DocumentM&D: Design Document

Detailed Task Analysis Standards Definition Curriculum Mapping Course Mapping Audience Profile Prerequisites Learning Objectives Assessment Strategies Content Outline (with

estimated run times) Instructional Approach Instructional Setting

Screen Types Interaction Types Assessment Types End-User

Hardware/Software Requirements

Activity Matrix (Lessons / Sections / Objectives down the side, Screen / Interaction/ Assessment Types across the top)


M&D: PrototypeM&D: Prototype

A quick look at rapid prototyping Do you have the skills to prototype? Is your client prepared for a prototype

process? How many iterations? What content to prototype? Be sure to identify review &

validation points . . . and their outcomes.

Dev.Imp. Eval

Des.


M&D: Storyboards and M&D: Storyboards and ScriptsScripts

Storyboards: Potentially controversial, but:

Everything that any team member needs to do perform their role relating to the project.

Scripts Any voice over or video


M&D: Application and M&D: Application and ServicesServices

Alpha/Beta/Final Other Services

Duplication Implementation Evaluation Knowledge Transfer


Responding To RFP'sResponding To RFP's

Read the RFP very closely Quickly determine Go/No Go status Follow the RFP’s prescribed process Do any colleagues have experience with the

company and/or RFP’s? Bidders meeting basics My opinion: Unless you’re a large company

and/or have an “In”, it's a hard way to go.


A Quote . . . A Quote . . .

A fence makes good neighbors.–Anonymous - though the first time I

heard it was from Joe Ganci.



Problems that go away by themselves come back by themselves.–Marcy E. Davis


Documenting AssumptionsDocumenting Assumptions

Define *everything* that you can

Client Participation Central Point of Contact Review and validation

parameters Delay penalties Runtime

Travel Project file formats Technical Specifications Duplication Revisions Knowledge Transfer List and Define any other

Risks and Constraints


Estimation Types:Estimation Types:Time and MaterialsTime and Materials

Usually an initial estimation of cost is given in a range (between $X and $Y)

Risk is minimized for developer Client only pays for hours worked Profit built into rate structure My advice: If possible, always pitch

analysis as initial step.



Sometimes the road less traveled is less traveled for a reason.–Jerry Seinfeld


Estimate Types:Estimate Types:Fixed CostFixed Cost

This method is not my personal preference. Key Point: Fixed cost does not mean the cost can never

change. It means that the cost is fixed to a scope. If the scope changes, so should the cost.

It also assumes the scope is definable, so then the cost can be fixed (linked) to the defined scope.

Risk is built into price. Add 15 – 40% Why are there so many neon lights & fine hotels in Vegas? When, then?

Client requirement Repeated, consistent, well-defined project(s) Sometimes Vegas pays out big buck$.



Whenever things sound easy, it turns out there’s one part you didn’t hear.–Donald E. Westlake

Dig the well before you are thirsty.–Chinese proverb


Estimation TechniquesEstimation Techniques

Estimating Via Key Categories Estimating Via Run Time and Screens Estimating Via Detailed Screen

Information Filling in the Details


Estimating Via Key Estimating Via Key CategoriesCategories

Content/Research Technical Complexities Media Richness

Launch Calculator


Estimating Via Run Time Estimating Via Run Time and Screensand Screens

What’s an hour? 30-50 Screens per hour Based on mix of interactivity/screen

type 10-30 seconds for text-only screen 1-3 minutes for MC questions


Estimating Via Detailed Estimating Via Detailed Screen InformationScreen Information

Occasionally, the detailed Design Document is already complete.

Similar to Run Time, except for amount of info available. Analysis is finished-maybe.

Less art, more science Build a matrix that contains all screen /

interaction types. Assign a cost factor to each.

Apply metrics to content to determine cost


Filling in the DetailsFilling in the Details

A Spreadsheet via Roles A Spreadsheet via Process and Roles Using Microsoft Project


Client CommunicationClient CommunicationEstablishing ValueEstablishing Value

Not to be a marketing weasel, but define and communicate your Value Proposition.

But . . . find and use your own words. Leverage the situation so that it would be

foolish and risky for the client *not* to heed your advice.

If the former is not possible, perhaps it's not a project you should undertake.



Smooth seas do not make skillful sailors.–African proverb


Pitfalls ListPitfalls List

Unclear scope Scope creep Unclear client roles No single point of contact with client Ill-defined system specifications Hours allocated to a task not sufficiently

dissected/broken down Lack of sufficient skill base to complete a project


Unabashed Self PromotionUnabashed Self Promotion

I have examples of eLearning Calculators, Reusable Learning Objects, related links, and other

information up on my site: http://www.marksteinerinc.com


Our Final Quote . . . Our Final Quote . . .

He who is afraid to ask is afraid of learning.– Danish proverb


Hopefully, you found this Hopefully, you found this engaging and informative . . .engaging and informative . . .

Questions & Answers


Thank you for your time!Thank you for your time!

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Estimating the Cost of eLearning Projects:// 1 TAAC 7 - 2002 Estimating the Cost of eLearning Projects