SOFTWARE   COSTESTIMATION PROJECT
PRESENTED BY -          AHETSHAM            ASHISH           GAJANAN            PALASH         SUKHNANDAN          SHASHANK
!! OBJECTIVES !!  To introduce the fundamentals ofsoftware costing and pricing.  To describe 3 metrics for softwareproduct...
@ TOPICS @    Software productivity.    Estimation techniques.    Algorithmic cost modelling.    Project duration and ...
$ SOFTWARE COST            COMPONENTS $Hardware and software costs.Travel and training costs.Effort costs (the dominant fa...
SOFTWARE                 PRODUCTIVITY   A measure of the rate at which individual engineersinvolved in software developmen...
!!! PRODUCTIVITY MEASURES !!!  Size related meaSureS :   Based on some output from thesoftware process. This may be lines ...
FACTORS EFFECTING                PRODUCTIVITYAPPLICATION DOMAIN EXPERINACE :    Knowledge of the application domain is ess...
!! ESTIMATION      TECHNIQUE !!Algorithmic cost modelling.Expert judgement.Estimation by analogy.Parkinsons Law.Prici...
FACTORS EFFECTING       PRODUCTIVITYAlgorithmic cost                   A model based on historical cost information that  ...
FACTORS EFFECTING        PRODUCTIVITYPricing to   The software cost is estimated to be whatever the customer             h...
TOP DOWN & BOTTOM UP        ESTIMATIONTop-down :Start at the system level and assess the overall system   functionality an...
COCOMO MODEL An empirical model based on projectexperience.  Well-documented, ‘independent’ model whichis not tied to a sp...
COCOMO 81PROJECT     FORMULA                   DESCRIPTIOCOMPLEXIT                             NYSIMPLE      PM = 2.4 (KDS...
COCOMO 2  COCOMO 81 was developed with the assumption thata waterfall process would be used and that all softwarewould be ...
ROJECT DURATION & STAFFING    As well as effort estimation, managers must   estimate the calendar time required tocomplete...
STAFFING REQUIRMENT Staff required can’t be computed by diving the development time by the required schedule. The number o...
KEYPOINTS  There is not a simple relationship between  the price charged for a system and itsdevelopment costs.   Factors ...
KEYPOINTS  Different techniques of cost estimation should be  used when estimating costs.  The COCOMO model takes project,...
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Software cost estimation project

  1. 1. SOFTWARE COSTESTIMATION PROJECT
  2. 2. PRESENTED BY - AHETSHAM ASHISH GAJANAN PALASH SUKHNANDAN SHASHANK
  3. 3. !! OBJECTIVES !! To introduce the fundamentals ofsoftware costing and pricing. To describe 3 metrics for softwareproductivity assessment. To explain why different techniquesshould be used for software estimation. To describe the principles of theCOCOMO 2 algorithmic cost estimationmodel.
  4. 4. @ TOPICS @ Software productivity. Estimation techniques. Algorithmic cost modelling. Project duration and staf fing.
  5. 5. $ SOFTWARE COST COMPONENTS $Hardware and software costs.Travel and training costs.Effort costs (the dominant factor in most projects). The salaries of engineers involved in the project. Social and insurance costs.Effort costs must take overheads into account. Costs of building, heating, lighting. Costs of networking and communications. Costs of shared facilities (e.g: library, staff restaurant, etc.)
  6. 6. SOFTWARE PRODUCTIVITY A measure of the rate at which individual engineersinvolved in software development produce software and associated although quality assurance is a factor in productiviassessment. Essentially, we was documentation. Not quality-oriented not to measure useful functionality produced per time unit.
  7. 7. !!! PRODUCTIVITY MEASURES !!! Size related meaSureS : Based on some output from thesoftware process. This may be lines ofdelivered source code, object codeinstructions, etc. Function-related meaSureS : Based on an estimate of the functionalityof the delivered software. Function-pointsare the best known of this type of measure.
  8. 8. FACTORS EFFECTING PRODUCTIVITYAPPLICATION DOMAIN EXPERINACE : Knowledge of the application domain is essential for effectivesoftware development. Engineers who already understand a domain arelikely to be the most productive. PROCESS qUALITY : The development proces use can have a significant efect on productiv PROjECT SIzE The larger a project, the more time required for team communications. Less time is available for development so individual productivity is reduced .TEChNOLOGY SUPPORT Good support technology such as CASE tools, configurationmanagement systems, etc. can improve productivity.WORkING ENVIRONMENT A quiet working environment with private work areas contributes toimproved productivity.
  9. 9. !! ESTIMATION TECHNIQUE !!Algorithmic cost modelling.Expert judgement.Estimation by analogy.Parkinsons Law.Pricing to win.
  10. 10. FACTORS EFFECTING PRODUCTIVITYAlgorithmic cost A model based on historical cost information that relates some software metric (usually its size) to the project cost is used. An estimate is made ofmodelling that metric and the model predicts the effort required.Expert Several experts on the proposed software development techniques and the application domain are consulted. They each estimate thejudgement project cost. These estimates are compared and discussed. The estimation process iterates until an agreed estimate is reachedEstimation by This technique is applicable when other projects in the same application domain have been completed. The cost of a new project is estimatedanalogy by analogy with these completed projects. Myers (Myers 1989) gives a very clear description of this approach.
  11. 11. FACTORS EFFECTING PRODUCTIVITYPricing to The software cost is estimated to be whatever the customer has available to spend on the project. The estimated effortwin depends on the customer’s budget and not on the software functionality.Parkinson’ Parkinson’s Law states that work expands to fill the time available. The cost is determined by available resources rathers Law than by objective assessment. If the software has to be delivered in 12 months and 5 people are available, the effort required is estimated to be 60 person-months.
  12. 12. TOP DOWN & BOTTOM UP ESTIMATIONTop-down :Start at the system level and assess the overall system functionality and how this is delivered through sub- systems.Bottom-up :Start at the component level and estimate the effort required for each component. Add these efforts to reach a final estimate.
  13. 13. COCOMO MODEL An empirical model based on projectexperience. Well-documented, ‘independent’ model whichis not tied to a specific software vendor. Long history from initial version published in1981 (COCOMO-81) through variousinstantiations to COCOMO 2. COCOMO 2 takes into account differentapproaches to software development, reuse,etc.
  14. 14. COCOMO 81PROJECT FORMULA DESCRIPTIOCOMPLEXIT NYSIMPLE PM = 2.4 (KDSI)1.05 ´ M Well-understood applications developed by small teams.MODERATE PM = 3.0 (KDSI)1.12 ´ M More complex projects where team members may have limited experience of related systems.EMBEDDED PM = 3.6 (KDSI)1.20 ´ M Complex projects where the software is part of a strongly coupled complex of hardware, software, regulations and operational procedures.
  15. 15. COCOMO 2 COCOMO 81 was developed with the assumption thata waterfall process would be used and that all softwarewould be developed from scratch. Since its formulation, there have been many changesin software engineering practice and COCOMO 2 isdesigned to accommodate different approaches tosoftware development.
  16. 16. ROJECT DURATION & STAFFING As well as effort estimation, managers must estimate the calendar time required tocomplete a project and when staff will berequired. Calendar time can be estimated using aCOCOMO 2 formula TDEV = 3 ´ (PM)(0.33+0.2*(B-1.01)) PM is the effort computation and B is theexponent computed as discussed above (B is 1for the early prototyping model). Thiscomputation predicts the nominal schedule forthe project. The time required is independent of thenumber of people working on the project.
  17. 17. STAFFING REQUIRMENT Staff required can’t be computed by diving the development time by the required schedule. The number of people working on a project varies depending on the phase of the project. The more people who work on the project, the more total effort is usually required. A very rapid build-up of people often correlates with schedule slippage.
  18. 18. KEYPOINTS There is not a simple relationship between the price charged for a system and itsdevelopment costs. Factors affecting productivity includeindividual aptitude, domain experience, thedevelopment project, the project size, toolsupport and the working environment. Software may be priced to gain a contract and the functionality adjusted to the price.
  19. 19. KEYPOINTS Different techniques of cost estimation should be used when estimating costs. The COCOMO model takes project, product,personnel and hardware attributes into accountwhen predicting effort required. Algorithmic cost models support quantitativeoption analysis as they allow the costs of differentoptions to be compared. The time to complete project is not proportional to the number of people working on the project.
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