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Cost Estimation
Group Members:
Sania Shoaib
Kiran Pervaiz
Cost Estimation
A cost estimate is an approximate prediction of how much
money is needed to complete a project. It’s important to
accurately estimate the costs as it will help you assess
whether the project is feasible, i.e. if you have enough
funds to back it. In short, accurate cost estimating helps
you manage your project budget better. The project
manager must include cost estimates for all resources,
including materials, equipment, services, software,
facilities, human resources etc.
Common project Cost Estimation Techniques
O Analogous estimation: use actual costs of previous, similar
projects to determine estimates for new projects, the more
similar projects are the more accurate the estimate
O Resource cost estimating: list of all resources needed for
project and adding up their total costs
O Bottom-up estimating: make estimates for individual tasks
and activities, calculation of higher-level estimates based on
the individual estimates, more detailed definition of
individual tasks means more accurate estimate
O Expert judgment: use knowledge and experience from past
projects to make estimates for new projects, have a subject
matter expert as advisor because they have a solid
understanding of the project’s (technical) requirements
The Constructive Cost Model (COCOMO) is
a procedural software cost estimation
model developed by Barry W. Boehm.
COCOMO is used to estimate size, effort and
duration based on the cost of the software.
Constructive Cost Model
(COCOMO)
COCOMO applies to three classes of software
projects:
O Organic projects - "small" teams with "good"
experience working with "less than rigid" requirements
O Semi-detached projects - "medium" teams with mixed
experience working with a mix of rigid and less than
rigid requirements
O Embedded projects - developed within a set of "tight"
constraints. It is also combination of organic and semi-
detached projects.(hardware, software, operational, ...)
Object Point
O Object points are an approach used in software development
effort estimation under some models such as COCOMO.
O Object points are a way of estimating effort size, similar
to Source Lines Of Code (SLOC) or Function Points. They are
not necessarily related to objects in Object-oriented
programming, the objects referred to include screens, reports,
and modules of the language. The number of raw objects and
complexity of each are estimated and a weighted total Object-
Point count is then computed and used to base estimates of the
effort needed.
Using Function Point Analysis
Function point analysis (FPA) is a methodology for measuring
software productivity and the cost associated with the development
and maintenance. One function point (FP) is one end-user requested
business function. The following defines the five characteristics of
function points:
O External Inputs: these are end-user actions such as putting in a
login or executing a mouse click.
O External Outputs: the system provides the end-user output or
interface such as a GUI display or items in a report.
O Logical Internal Files: these files are the master or transaction files
that the system interacts with during its session.
Continue…
O External Interface Files: unlike logical internal files,
where the application uses solely for its purpose, these
files are or databases are shared with other applications
or systems.
O External Inquiries: this function is initiated by the
end-user. For example, the end-user wishes to submit a
query to a database or requests on-line help. In any case
the developer provides a means for the end-user to
"search" for answers.
Therefore function point analysis provides
a measure of the system's size and
complexity in order to determine the effort
and cost to develop or maintain it. This
section defines and explains what function
point analysis is, how it is to be used, and
what successes have come from using
function point analysis.
ANY
QUESTIONS?

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Cost estimation

  • 2. Cost Estimation A cost estimate is an approximate prediction of how much money is needed to complete a project. It’s important to accurately estimate the costs as it will help you assess whether the project is feasible, i.e. if you have enough funds to back it. In short, accurate cost estimating helps you manage your project budget better. The project manager must include cost estimates for all resources, including materials, equipment, services, software, facilities, human resources etc.
  • 3. Common project Cost Estimation Techniques O Analogous estimation: use actual costs of previous, similar projects to determine estimates for new projects, the more similar projects are the more accurate the estimate O Resource cost estimating: list of all resources needed for project and adding up their total costs O Bottom-up estimating: make estimates for individual tasks and activities, calculation of higher-level estimates based on the individual estimates, more detailed definition of individual tasks means more accurate estimate O Expert judgment: use knowledge and experience from past projects to make estimates for new projects, have a subject matter expert as advisor because they have a solid understanding of the project’s (technical) requirements
  • 4. The Constructive Cost Model (COCOMO) is a procedural software cost estimation model developed by Barry W. Boehm. COCOMO is used to estimate size, effort and duration based on the cost of the software. Constructive Cost Model (COCOMO)
  • 5. COCOMO applies to three classes of software projects: O Organic projects - "small" teams with "good" experience working with "less than rigid" requirements O Semi-detached projects - "medium" teams with mixed experience working with a mix of rigid and less than rigid requirements O Embedded projects - developed within a set of "tight" constraints. It is also combination of organic and semi- detached projects.(hardware, software, operational, ...)
  • 6. Object Point O Object points are an approach used in software development effort estimation under some models such as COCOMO. O Object points are a way of estimating effort size, similar to Source Lines Of Code (SLOC) or Function Points. They are not necessarily related to objects in Object-oriented programming, the objects referred to include screens, reports, and modules of the language. The number of raw objects and complexity of each are estimated and a weighted total Object- Point count is then computed and used to base estimates of the effort needed.
  • 7. Using Function Point Analysis Function point analysis (FPA) is a methodology for measuring software productivity and the cost associated with the development and maintenance. One function point (FP) is one end-user requested business function. The following defines the five characteristics of function points: O External Inputs: these are end-user actions such as putting in a login or executing a mouse click. O External Outputs: the system provides the end-user output or interface such as a GUI display or items in a report. O Logical Internal Files: these files are the master or transaction files that the system interacts with during its session.
  • 8. Continue… O External Interface Files: unlike logical internal files, where the application uses solely for its purpose, these files are or databases are shared with other applications or systems. O External Inquiries: this function is initiated by the end-user. For example, the end-user wishes to submit a query to a database or requests on-line help. In any case the developer provides a means for the end-user to "search" for answers.
  • 9. Therefore function point analysis provides a measure of the system's size and complexity in order to determine the effort and cost to develop or maintain it. This section defines and explains what function point analysis is, how it is to be used, and what successes have come from using function point analysis.
  • 10.