Software Cost Management

Software Cost Management

Software Cost Management

Authors

Introduction    

 

 

 Project cost management includes the processes required to ensure that the project is completed within an approved budget.
   

Project Cost Management Processes

  

Cost estimating: Developing an approximation or estimate of the costs of the resources needed to complete a project.

Cost budgeting: Allocating the overall cost estimate to individual work items to establish a baseline for measuring performance.

 Cost control: Controlling changes to the project budget.

 

(Source: http://faculty.ksu.edu.sa/ghazy/CSC548%20PM/RC7_Proj_Cost_Mgmt.pdf)

 

 Interesting web page
 
software-maintenance-implications-on-cost-and-schedule

 

 

 

 Software Cost  Estimation

 

Software estimation is a complex activity and to take care of it many commercial software estimation tools are developed and marketed. As of 2005, some of these estimating tools include COCOMO II, CoStar, CostModeler, CostXpert, KnowledgePlan, PRICE S, SEER, SLIM, and SoftCost.

 

The major features of commercial software-estimation tools include the attributes:

   
  • Sizing logic for specifications, source code, and test cases.
  • Phase-level, activity-level, and tasklevel estimation.
  • Adjustments for specific work periods, holidays, vacations, and overtime.
  • Adjustments for local salaries and burden rates.
  • Adjustments for various software projects such as military, systems, commercial, etc.
  • Support for function point metrics, lines of code (LOC) metrics, or both.
  • Support for backfiring or conversion between LOC and function points.
  • Support for both new projects and maintenance and enhancement projects.
   

Some estimating tools also include more advanced functions such as the following:

  • Quality and reliability estimation.
  • Risk and value analysis.
  • Return on investment.
  • Sharing of data with project management tools.
  • Measurement models for collecting historical data.
  • Cost and time-to-complete estimates mixing historical data with projected data.
  • Support for software process assessments.
  • Statistical analysis of multiple projects and portfolio analysis.
  • Currency conversion for dealing with overseas projects.
 

(Source: Capers Jones,  http://www.stsc.hill.af.mil/crosstalk/2005/04/0504Jones.html)

     

Cost Drivers for Large Software Systems: Paperwork and Defect Removal (Capers Jones)

 

Large software projects devote more effort to producing paper documents and to removing bugs or defects than to producing source code.

 

Therefore, accurate estimation for large software projects must include the effort for producing paper documents, and the effort for finding and fixing bugs or defects, among other things.

 

A key aspect of software cost estimating is predicting the time and effort that will be needed for design reviews, code inspections, and all forms of testing. To estimate defect removal costs and schedules, it is necessary to know about how many defects are likely to be encountered.

 

The typical sequence is to estimate defect volumes for a project and then to estimate the series of reviews, inspections, and tests that the project utilizes. The defect removal efficiency of each step will be estimated also. The effort and costs for preparation, execution, and defect repairs associated with each removal activity also will be estimated.

 

One important aspect of estimating is dealing with the rate at which requirements creep and, hence, make projects grow larger during development.

 

Adjustment Factors for Software Estimates (Capers Jones)

For estimating costs for  real software projects, the basic default assumptions of estimating tools must be adjusted to match the reality of the project being estimated. These adjustment factors are a critical portion of using software estimating tools. Some of the available adjustment factors include the following:

Staff experience with similar projects.

Client experience with similar projects.

Type of software to be produced.

Size of software project.

Size of deliverable items (documents, test cases, etc.).

Requirements methods used.

Review and inspection methods used.

Design methods used.

Programming languages used.

Reusable materials available.

Testing methods used.

Paid overtime.

Unpaid overtime.

         

 Related Knols

 

     
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    1. Tag: PM201A55. Let me share all of you about #5 Tips for Project Management Success,, I hope you enjoy it

      1. Plan your day using time management techniques

      As a project manager, time management skills are essential because you are dealing with a wide range of tasks that demand a quick turnaround time. Planning your day will go a long way in keeping you organized and increasing your productivity. Assist your task planning by using project management software which helps you track the work of you and your team.

      If you are not very tech savvy, a simple to-do list can also be a great organizational tool. Prioritize your most important tasks by putting them at the top of the list and less important ones at the bottom. Having a visual plan of your daily tasks helps to keep you on track and aware of time.

      Related post: Free ebook 104 secrets to become a great project manager

      2. Include stakeholders in important project conversations

      While you will have plenty of responsibilities regarding the project, don’t neglect your clients.

      Good communication is essential is keeping both parties informed of project progression, curtailing scope creep, and apprised of changing requirements. Some clients may have different expectations when it comes to communication, so make sure to establish the frequency and type of communication (like emails, phone calls, and face-to-face conversations) at the beginning of your project.

      Establishing communication expectations early helps alleviate stakeholder uncertainty about communication frequency and delivery.

      3. Regularly communicate with your team

      Daily team communication helps keep misunderstandings and unclear requirements under control. Keeping your team informed in every step of the project is essential to project management success.

      For example, a study published by Procedia Technology found that good communication skills were the cornerstone of project management. The study examined over 300 “construction project managers, architects, construction managers, engineers and quantity surveyors” and their successes and failures on various construction projects.

      4. Anticipate project setbacks

      Even the best-laid plans often go awry.

      Remember that even with a high amount of planning and attention to detail, your project may still encounter some challenges. Pay attention to complaints from stakeholders or colleagues, and other warning signs, like a missed deadline or cost overrun, that there may be a problem.

      Preventing a crisis will keep your project running smoothly, save you a lot of time, and keep you, your team, and your stakeholders confident in progressing with the project.

      Unfortunately not every complication can be avoided. Crisis management skills are essential for dealing with the unexpected. Project managers need to be flexible and pragmatic. Improvise and make sharp decisions when needed.

      Related post: 92 free project management templates

      5. Stay focused on the details

      A common problem project managers encounter is having the project aims not aligned with the organization’s objectives. A great project manager will strategize a plan for the project to lead back to the overall success of the business.

      Know your project’s scope by heart and avoid wandering outside of the project’s requirements. It’s too easy to get lost in minor details and forget what your focus is, so a well-planned project scope is essential for success.

      And final, you should use KPI to measure effectiveness of the project, here are full list: 76 project management KPIs


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