Statistical Forecasting: Estimation Made Easy

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STATISTICAL FORECASTING

DON’T DO IT

T. DEMARCO, T. LISTER: WALTZING WITH BEARS

ACCURACY OF ESTIMATION

SOURCE: TSAI, KLAYMAN, HASTIE: EFFECTS OF AMOUNT OF INFORMATION ON JUDGMENT ACCURACY AND CONFIDENCE

ESTIMATION BIAS

LEA

WORK TIME

LEAD TIME FLOW EFFICIENCY =

LEAD TIME

WORK TIME

LEA WAIT TIME

LEA

LEA

THROUGHPUT VS STORY POINTS

UNIVERSE’S PLANS

source: DOGHOUSEDIARIES

BASED ON THE WORK OF TROY MAGENNIS, LARRY MACCHERONE AND DOUGLAS HUBBARD

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MONTE CARLO EXAMPLE

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AVERAGE PACE FORECAST - SIMPLE REGRESSION

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MONTE CARLO EXAMPLE: THROUGHPUT SAMPLES

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MONTE CARLO EXAMPLE: THROUPUT DISTRIBUTION

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MONTE CARLO EXAMPLE: UNLUCKY BRIAN

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MONTE CARLO EXAMPLE: WORST CASE SCENARIO

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MONTE CARLO EXAMPLE: BEST CASE SCENARIO

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MONTE CARLO EXAMPLE

MONTE CARLO EXAMPLE

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MONTE CARLO EXAMPLE

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MONTE CARLO EXAMPLE

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MONTE CARLO EXAMPLE

HISTORICAL DATA: COMPLETED STORIES

HISTORICAL DATA: TIMELINE

STATISTICAL MODEL: INPUT #1

WHY LEAD TIMES?

LEAD TIME

HISTORICAL DATA: LEAD TIMES

LEAD TIME DISTRIBUTION

LEAD TIME DISTRIBUTION

STATISTICAL MODEL: INPUT #2

HISTORICAL DATA: WORK IN PROGRESS

WORK IN PROGRESS DISTRIBUTION

READY…

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Iteration

SAMPLING LEAD TIME VALUES

SAMPLING LEAD TIME VALUES

SUM(LEAD TIME VALUES) = UNITS OF WORK

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90% CONFIDENCE INTERVAL?

UNCERTAINTY

BE BETTER

SOURCES & RESOURCES

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