statistical forecasting: estimation made easy

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STATISTICAL FORECASTING

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Page 1: Statistical Forecasting: Estimation Made Easy

STATISTICAL FORECASTING

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DON’T DO IT

T. DEMARCO, T. LISTER: WALTZING WITH BEARS

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ACCURACY OF ESTIMATION

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

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ESTIMATION BIAS

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LEA

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WORK TIME

LEAD TIME FLOW EFFICIENCY =

LEAD TIME

WORK TIME

LEA WAIT TIME

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LEA

LEA

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THROUGHPUT VS STORY POINTS

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UNIVERSE’S PLANS

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source: DOGHOUSEDIARIES

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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

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MONTE CARLO EXAMPLE

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MONTE CARLO EXAMPLE

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MONTE CARLO EXAMPLE

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MONTE CARLO EXAMPLE

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HISTORICAL DATA: COMPLETED STORIES

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HISTORICAL DATA: TIMELINE

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STATISTICAL MODEL: INPUT #1

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WHY LEAD TIMES?

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LEAD TIME

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HISTORICAL DATA: LEAD TIMES

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LEAD TIME DISTRIBUTION

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LEAD TIME DISTRIBUTION

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STATISTICAL MODEL: INPUT #2

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HISTORICAL DATA: WORK IN PROGRESS

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WORK IN PROGRESS DISTRIBUTION

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READY…

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Iteration

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SAMPLING LEAD TIME VALUES

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SAMPLING LEAD TIME VALUES

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SUM(LEAD TIME VALUES) = UNITS OF WORK

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SAMPLING WORK IN PROGRESS

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SAMPLING WORK IN PROGRESS

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90% CONFIDENCE INTERVAL?

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UNCERTAINTY

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BE BETTER

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SOURCES & RESOURCES