Software Project Management (SPM)

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By:Tariq Malik
MSc IT (London)
MBCS (UK)
tariqmalik.pk@gmail.com
Software Project
Management (SPM)
Tariq Malik UIIT UAAR Spring 20111
Introduction of Instructor Name: Tariq Malik
 Qualification: BSc; MS (IT)
Professional Member of
British Computer Society (MBCS)
 Colleges/UniversitiesAttended:
 Government College Faisalabad
 University of the Punjab, Lahore
 Kings College, University of London, UK
 Birkbeck College, University of London, UK
 University of East London, UK
 Employment:
 1991 – 2001Worked in UK in IT Industry
 2001 – date,Working in Pakistan
 Taught at Punjab University, GC University, Lahore, PICS (MAJU), UMT,
FAST, University of Education
 Currently heading public sector IT Projects sponsored by Ministry of IT,
Govt. of Pakistan

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Expectations from Students and
Instructors
 Maintain Class Discipline
 Asking Questions
 Submission of CourseWork
 Learning
 Additional Help
Contact Details
 Telephone:
0333 555 1678; 051 923 2411
 Email (For general queries):
tariqmalik@bcs.org.uk
 Email (For soft assignments):
tariqmalik.pk@gmail.com
 Yahoo Id:
tariqmalik@yahoo.com
 MSN Id:
tariqmalik@live.com

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Class Discipline
 Attendance
 Punctuality
 Mobile Phones
 Leaving During Lecture
 Chatting or making noise during lecture
Students details
 Name
 Roll No.
 Semester
 Class
 Session
 Email address:

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Recommended Text Book
 Software
Project
Management
by: Joel Henry
Additional Reading
 PMP Project Management
Professional Study Guide,
Second Edition
By: Joseph Phillips

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PM Certifications
 Prince2
http://www.prince2.com/
 PMP
www.pmi.org
 PMP Examination is based on your experience,
your ability to problem solve, and a strong
foundation in project management. PMI’s Guide
to the Project Management Body of Knowledge
(PMBOK) can help you grasp what you must
know to pass the exam.Tariq Malik UIIT UAAR Spring 20119
Defining a Project
 To define a project, you only have to think of
some work that has a deadline associated with it,
involves resources besides you, has a budget to
satisfy the scope of the project work, and you can
state what the end result of the project should be.
So, projects are temporary work assignments,
with a budget, that require some amount of
resources, some amount of time to complete, and
create a definite deliverable, service, or
environment.

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Software Project Management
 Software project management is the art and
science of planning and leading software projects.
It is a sub-discipline of project management in
which software projects are planned, monitored
and controlled.
Projects vs. Operations
Some examples of projects include:
Designing a new product or service
Converting from manual to computerized system
Converting from one computer application to another
Moving from one building to another
Designing a new hardware
Designing and building a new airplane
The end results of projects can result in operations

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Project Planning
Triple Constraints of Project
Management  Quality is affected by the
balance of these three
components
 project moves through
phases to reach completion.
The PM oversees the project
work as it moves through
phases. Project customer
must approve the work.
Specifically, the results of
phases must pass through
scope verification, which is
the formal acceptance of the
project work.

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Project Management
 Project management is the supervision and control
of the work required to complete the project vision.
 The project team carries out the work needed to
complete the project, while the project manager
schedules, monitors, and controls the various
project tasks.
 Projects, being the temporary and unique things
that they are, require the project manager to be
actively involved with the project implementation.
Project Integration Management
 This knowledge area focuses on creating the
project charter, the project scope statement, and
a viable project plan.
 Once the project is in motion, then Project
Integration Management is all about monitoring
and controlling the work.
 If changes happen, and we know they will, then
you have to determine how that change may
affect all of the other knowledge areas.

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Project Scope Management
 This knowledge area deals with the planning,
creation, protection, and fulfillment of the
project scope.
 One of the most important activities in all of
project management happens in this knowledge
area:
 creation of theWork Breakdown Structure.
Project Time Management
 Time management is crucial to project success.
This knowledge area covers activities, their
characteristics, and how they fit into the project
schedule.
 This is where you and the project team will
define the activities, plot out their sequence, and
calculate how long the project duration will
actually take.

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Project Cost Management
 Cost is always a constraint in project
management.
 This knowledge area is concerned with the
planning, estimating, budgeting, and control of
costs.
 Cost management is tied to time and quality
management—screw either of these up and the
project costs will increase.
Project Quality Management
 What good is a project that’s done on time if the
scope isn’t complete, or the work is faulty, or the
deliverable is horrible?Well, none.This
knowledge area centers on quality planning,
assurance, and control.
 SQA Engineers perform this task in SPM
(Software Quality Assurance)

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Project Human Resource
Management
 This knowledge area focuses on organizational
planning, staff acquisition, and team
development.
 You have to somehow acquire your project team,
develop this team, and then lead them to the
project results.
Project Communications
Management
 90 percent of a project manager’s time is spent
communicating (coordinating).
 This knowledge area details how communication
happens, outlines stakeholder management, and
shows how to plan for communications within
any project.
 Stake holders include clients, sponsors, vendors
etc

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Project Risk Management
 Every project has risks.
 This knowledge area focuses on risk planning,
analysis, monitoring, and control.
 You’ll have to complete qualitative analysis and
then quantitative analysis in order to adequately
prepare for project risks.
 Once the project moves forward, you’ll need to
monitor and react to identified risks as planned.
Project Procurement Management
 Projects often need things and services in order
to reach closing.
 This knowledge area covers all the business of
project procurement, the processes to acquire
and select vendors, and contract negotiation.
 The contract between the vendor and the project
manager’s organization will guide all interaction
between the project manager and the vendor.

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Projects and Strategic Planning
 Work and deliverables that don’t fit into the normal day-
to-day operations but still have merit for the organization
are logical opportunities for a project e.g.
■ An opportunity based on market conditions
Your company is growing so quickly a project is launched
to create a sales- and order-fulfillment application.
 ■ Special needs within your company All of the
computers are older than Moses, so a project is launched
to replace all of the computers and standardize office
applications.
■ Customers Many organizations, such as IT
integrators, construction companies, architects, and
dozens more, complete projects for other people.
Customers drive new projects.
■ Technology changes so quickly that there are
constantly new technical projects within an organization.
■ Lawyers Laws can cause a new project to launch.
Laws and regulations within different industries can also
spur new projects—consider pharmaceutical, insurance,
health care, and on and on. Regulations are required, but
standards are guidelines.

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Project Management Application Areas
 Project management application areas just means that
projects fit into different disciplines, but the approach
to project management is similar.
 For example, an application area is construction.
Another application area is information technology
management or SPM.Another is manufacturing.
 Each application has specific approaches, disciplines,
and characteristics that are totally different from any
other application in the world.
The following are some examples of application areas:
 Sales, law, manufacturing, marketing, and any other
functional disciplines you’d find in just about any
company
 Technical disciplines such as mechanical engineering,
architectural design, software development, and tons
more
 Management categories such as consulting, research and
development, and community development

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Project Environment
 The project environment is a term to describe the
impact the project will have, good or bad, on the
cultural, political, and physical environment.
 The project manager must examine the project
environment and consider the influence of each
environment on the project’s success—and vice
versa
 Logistics for travel, schedule, supply chain, and order
fulfillment
 ■ Human resource practices and procedures,
including working within organizational structures,
managing team personnel, compensation, benefits,
and helping project team members reach their career
goals
 ■ Industry-specific health and safety practices
 ■Working with information technology

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Relying on General Management Skills
 You cannot be an effective project manager without
some abilities as a manager.
 Planning for project strategy, tactics to achieve
objectives, and operational planning
 Accounting and cash flow management
 Sales and marketing (within your organization and to
stakeholders outside of the project)
 Procurement processes, including contracting
procedures
Interpersonal Skills
 Interpersonal skills are your abilities as a project
manager to get along with stakeholders, be somewhat
likeable, and work with others to reach an outcome on
disagreements, problems, and challenges within the
project. Interpersonal skills include the following:
 Problem solving Part of being a good project
manager is the ability to problem solve.
 Motivating You need to have the ability to motivate
your project team to move forward with the project,
their work, and energize your project team to excel.

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 Communicating Communication is a huge part of the project
manager’s job, so you’ll have to be able to communicate
effectively with your project team and stakeholders
 Influencing the organization You know there are
undercurrents of politics, procedures, and other influences that
affect your project’s ability to move forward.The ability to
influence the organization is how you operate within stated &
implied confines to get things done.
 Leadership Good PM is a good leader. Leadership involves
motivating & inspiring project team & stakeholders to move
forward.
 Negotiations It’s not unusual for conflicts to arise within a
project.The project manager must be able to negotiate, solve
conflicts, and keep the project moving forward.
Program Management
 Program management is the management of multiple
projects all working in unison toward a common goal.
 You could have a project for the planning and design of
the building.Another project could manage the legal,
regulatory, and project inspections that would be
required for the work to continue.Another project
could be the physical construction of the building,
while others might entail electrical wiring, elevators,
plumbing, interior design, and more.

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Program Management
 create a program that is comprised of multiple
projects. Project managers would manage each of
the projects within the program and report to the
Program Manager.
 The Program Manager would ensure that all of
the integrated projects worked together on
schedule, on budget, and ultimately towards the
completion of the program.

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Project Management Office (PMO)
 A PMO organizes and manages control over all projects
within an organization. PMOs are also known as a
program management office, project office, or simply
the program office.
 PMOs usually coordinate all aspects, methodology, and
nomenclature for project processes, templates, software,
and resource assignment. Ideally, a PMO creates a
uniform approach within an organization so that all
projects, regardless of their discipline, technology, or
purpose, are managed with the same approach.
Tariq Malik UIIT UAAR
Spring 2011
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Who should take this course
“Some employees feel that they are not PMs or that
project management failures are not a problem
within their field or discipline. However, all
employees are project managers, and some to a
greater extent that others.” [pp3]
“While an employee’s job title may not be that of
Project Manager, each individual in an organization
is, in essence, a project manager, even if what that
person is managing is simply a piece of a large
project.” [pp4]
[Phillips 2003]
J.J. Phillips, at el,The Project Management Scorecard,
Butterworth Heinemann, 2003

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Spring 2011
Managing Project Culture
 Software Projects are cultural events.
Consists of a group attempting to produce a
product on time and within budget.
A successful project will transform this group
into a team.
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 Steps to Shaping Project Culture:
1. Understand organizational culture.
2. Understand each team member’s
engineering and personal background.
3. Match cultural and engineering roles to
people.
4. Monitor and manage team culture just as
you manage the technical issues.
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 Understand Organizational Culture.
Organizational culture, the shared beliefs and
practices of an organization, strongly influences
project culture.
The first step to understanding project culture
is understanding organizational culture.
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 Understand EachTeam Member.
Each will most likely have a different
background and/or generation.
Need to assess educational background, what
type and how much project experience,
personality traits, personal background, and
personal and professional strengths and
weaknesses.
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 Match Roles to People.
Roles are usually either assigned by the project
manager or chosen by the team.
Should emphasize individual strengths,
minimize weaknesses, and fit the needs of the
project.
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 Consider Cultural Roles.
Cultural Roles – the parts individuals play in
the shared beliefs and practices of a group
Cultural roles need to be coupled with
engineering roles for a successful project.
Successful coupling leads to strong team
cohesion.
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 The Need forTeam Cohesion.
Team Cohesion –The degree to which a group
of people can function effectively as a unit.
Governs how a team reacts to external
influences, internal problems, and project
challenges.
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 Monitor and ManageTeam Culture.
 Team cohesion is the most important
influence on productivity.
 As project manager you need to foster,
promote and monitor team culture for
project success.
 Successful cultural management requires
both engineering and social skills.
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 To manage project culture:
1. Make each person’s software engineering role
clear.
2. Understand each person’s personality and make
know your understanding of each person’s
social role in a positive way.
3. Sate and maintain your view of the team.
4. Recognize potential role problems before they
have a negatively impact on the team.
5. Solve role problems before they negatively
impact the project.47
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Managing Good People
Guidelines for Managing Good People:
Gain visibility without micromanagement.
Review process and products, not people.
Coordinate, don’t manipulate.
Use your knowledge, not your position of
power.
Channel people, don’t put dams in front of
them.
Focus on project and people needs, not your
authority as manager.48

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 Avoid Micromanaging
Project managers need to know when and how
activities are performed, but you can’t make
everyone do tasks as you would do them.
Focus on gathering status information, not
overdirecting team members.
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 Review Process and Products, Not People.
Review tasks and projects, but also convey your
trust in the team.
Establish review standards, and focus on the
product, not the person.
Review everything to avoid technical oversights and
the perception of favoritism.
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 Coordination, Don’t Manipulate.
Teams must coordinate their effort and
products in order to be able to establish a
commonality.
Incorrect coordination leads to team members
feeling manipulated.
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 Use your knowledge, not your position of power.
“Be an authority, not an authority figure.”
Present directions as team needs, project needs,
and team consensus rather than orders to you
team.
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 Channel people, don’t put dams in front of them.
Stopping a team members actions may leave
them feeling foolish. Instead, ease them in the
proper direction.
Channeling ensures that efforts are perceived as
valuable and worthwhile.
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 Focus on project and people needs, not your
authority as manager.
Present directions not as your will, but as a
project or team decision.
Explain why the direction is needed and
acknowledge negative implications and risks.
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Making Good People Better
 Steps to Making Good People Better:
1. Make professional development a project goal.
2. Recognize long- and short-term professional
development goals.
3. Let each team member specify personal
improvement goals.
4. Have team members track their individual time.
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 Make professional development a project goal.
Focusing on professional development ensures
that your next project will have an even better
team.
Need to focus on both the short- and long-term
goals of the team.
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 Recognize Long- and Short-term Goals.
Discuss and support the development goals of
each team member.
When possible, make project decisions based on
these goals.
Discuss these goals with the team to remind
them that you haven’t overlooked them or their
goals.
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 Let EachTeam Member Specify Goals.
The Competency Framework is an excellent
way to view the professional development of
each team member.
During the project, you and the team members
should discuss and identify how they can
improve on their skill set.
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 Track IndividualTime.
Time recording is a individual effort that
supports long-term professional improvement.
Personal time records should not be public
documents, nor should you as project manager
review them.
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Leading Good People
Guidelines to Leading Good People:
Be confident in yourself and the team.
Be fallible.Take responsibility for making mistakes and
focus on corrective actions.
Lead by example. Show the team what you expect
from yourself and from them.
Utilize all the talents of your team.You can’t make the
project succeed all by yourself.
Complete all your commitments on time.
Don’t confuse friendship with leadership.
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Leading Good People
 Be confident in yourself and the team.
Leaders need to show their confidence in their
attitude and actions.
In terms of your project, know where to go,
how to get there, and how to convince others
that they can and will reach their goals.
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Leading Good People
 Be Fallible.Take responsibility for making
mistakes and focus on corrective actions.
Be able to give and take advice, criticism, and
credit.
Hold yourself accountable for mistakes.
When a team member makes a mistake, focus
on how to correct the mistake, not the mistake
itself.
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Leading Good People
 Utilize all the talents of you team.You can’t make
the project succeed all by yourself.
Maximize your effectiveness by maximizing the
talent of you team.
Deflect responsibility for project success to the
team.
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Leading Good People
 Complete all your commitments on time.
Lead by example, complete what you say you
will when you say you will do it.
Set a standard for the team.
If you do fail to meet a commitment, admit it,
and explain what you are going to do to meet
that commitment.
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Leading Good People
 Don’t confuse friendship with leadership.
Leadership and management can be aided by
friendship.
Friendship is not enough to ensure project
success or your role as a effective leader.
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Chapter Key Points
 Projects are cultural events involving cultural
entities.
 Managing software engineers requires special
care.
 Managing software projects requires you to
consider each team member’s long-term
improvement.
 Leadership differs from management.
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Software & Economies
The worldwide software industry was estimate to be worth about:
 1994: $208.6 billion
 1995: $229 billion
 2000: $300 billion
 2003: Strategic Planning Services projected the global IT spending on hardware, software,
networking and other components as $2,000 billion
 2005: $2,600 billion (Campbell, 2000).
 2006: Senior IT decision makers will dedicate 30 % of the IT budget to software, on average, and
that figure will likely increase to 35 % over the next 2 years.
 The outsourcing market during 1996-7 was $130 billion and $154 billion (Turban et al., 1999).
 Rate of growth between 2004-05 and 2009-10, seems to be lower compared to earlier periods.
 The IT manpower prediction has an increasing trend:
 Between 2004-05 and 2009-10 the requirement seems to be stable.
 In the case of India, the requirement of IT manpower is increasing continuously at a variable
rate.**
 Factual: (1) Salary of Fresh-graduate (2004-5) = 15K+
(2008-9)= 35K+
(2)ABC (GCC) could only fill 3% of the requirements (due to shortage of HR)
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 US software industry contribution to the total trade balance
was more than $20 billion in 2000.
 US software industry employed more 800,000 US workers
and contributed over $28 billion in tax revenues
 By 2008: 1.3 million workers and
$50 billion in tax revenues
CANADA
 An estimated $25 billion is spent on IT application
development annually
 Finland [OSKARI-2006, PP 4, 6, 7, 8]

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Software & Economies INDIA
 1999-2000: $5.7 billion (34% growth, 10% ofTotal Exports)*
 And by 2008: $50-80 billion **
** (sources: Business Recorder, Aug 9, 1998
The Financial Express, Jan 30, 2001)
*[Annual industry survey released on 3 July 2000 by the National Association of Software and Service Companies (NASSCOM)].
 The domestic IT / ITeS market revenue will touch Rs. 110,000 crore in 2008 while sustaining
the growth of 27 % recorded in 2007!
! predicts IT research firm IDC (India). http://www.siliconindia.com/
 This would result into the market growing at 24 percent in 2008 over 2007.
 Part ofThe Government of India’s national plan to promote IT, NASSCOM-McKinsey prepared
a report; projections for the year 2008 include:
 Software and services will contribute over 7.5% of the overall GDP growth of India.
 IT exports will account for 35% of the total exports from India.
 Potential for 2.2 million jobs in IT.
 Growth in software export to $50 billion.
 2009:
Indian software exports have risen from Rs. 28,350 crore in 2000-01 to an estimated Rs.
216,300 crore in 2008-09.The industry is expected to grow 16 percent this fiscal and log
revenues of $60 billion despite the global slowdown.
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 PAKISTAN
 2000: Pakistan’s share in the global software market is $60 million
Business Recorder: Dec 13, 2000
 According to PASHA the Pakistan software industry is expected to cross the
billion-dollar threshold by the year 2003. ???
 India imposed 35% income tax on foreign firms might pushed them to look
towards Pakistan instead (in October 2004).
 Previously, foreign IT firms operating in India were exempt from income tax.
 Has led local software developers to predict Pakistan’s export of software and IT-
enabled services rise by 50% by the end of 2005.
 Pakistan, which exported $32.22 million software during 2003-04 against India’s
$9.5 billion, now hopes to cross $50 million by the end of 2005/6.

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 PAKISTAN….
 IT exports in FY 2005-2006, as reported by the State
Bank of Pakistan (SBP), were US$ 72.210 million, thus
exceeding the target of US$ 72 million.This represents
an annual increase of 56% over exports of US$ 46.355
million in FY 2004-2005.
 ??
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Sad Part:
 A survey [in 1997, by KPMG] revealed that
 more than three quarters of IT projects were below their schedules by 30% or
more
 more than half exceeded their budget by a substantial margin.
 31% projects in USA are not completed.
 Poorly managed projects cost $145 billion to US companies and Govt.
Approx 10 billion (17% of 62.5 B total spent on training [Field 97, Phillips 03])
was spent on project management training.Thus on average in US $10
B is spent to fix $145 B per year problem.*
 Hammer (1996) stated that the growing demand of IT professionals
may decline by 2006.
 Proving incorrect, and
 Had the success rate better, we could guess the growth

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Pakistan ?
Impact of these failures
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Outsourcing and IT manpower
There are three major reasons for growth in IT outsourcing.
1) outsource technologies and components, that are not a part of their
core competencies.
2) performance of their information systems department to be
unsatisfactory.
3) outsourcing in many cases can be cost effective
[Lucas, 2000;Turban et al., 2001;Turner and Kambel, 1994; and
Venkatraman and Short, 1992)].
 Markus and Benjamin (1996) further argued that because of cost
considerations, pure technical IT tasks (change management, and
implementation – not coding) will stay inhouse, while the rest will
move to outsourcers.
 Cross and Earl (1997) concluded that through outsourcing of IT, the
British Petroleum saved $230 million and reduced its IT headcount by
90% between 1981 and 1995.

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Software companies increasing
offshoring work: Survey CNET News.com, Published: January 11, 2007,
 About 57 percent of software companies that have offshore
operations have increased offshoring work significantly within
the past 18 months
 India was listed most often, at 65 percent, as a current or
potential offshore partner.That was followed by Eastern
Europe/Russia at 29 percent and China at 21 percent.
 In recent years, many tech companies have said that lack of
qualified U.S. workers has forced them to hire educated non-
U.S. citizens to stay competitive.
 Many executives cited a shortage of available H-1B visas as one
of the reasons for hiring offshore workers.
 "They told me speed to market (in the U.S.) would
sometimes take two to three years. Some of them told me
(that) by leveraging a provider and having 200 workers
overnight, I could get my product out in just over a year,"
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Software & Project Management (1)
 Software & Project Management
Corporate America spends more than $275
billion each year on approximately 200,000
application software development projects
Most of these projects will fail for lack of
skilled project management
Management problems were more
frequently dominant cause than technical
problems
Schedule overruns were more common
(89%) than cost overruns (62%)
KPGM’s Survey in UK

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Success Factors
 User involvement – 20 points
 Executive Support – 15 points
 Clear Business Objectives – 15 points
 Experienced Project Manager – 15 points
 Small milestones – 10 points
 Firm basic requirements – 5 points
 Competent staff – 5 points
 Proper planning – 5 points
 Ownership – 5 points
 Others – 5 points
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Primary causes of software runaway
Project Objectives not fully specified
Bad planning and estimating
Technology new to the organization
Inadequate/No project management
methodology
Insufficient senior staff on the team
Poor performance by Supplier of
hardware/software

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Final Words
 “Organizations that attempt to put software
engineering discipline in place before putting
project management discipline in place are
domed to fail”
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Postmortem of SW Industry
Mid-1990s, at least three important analyses of the state of the
software engineering industry (in Patterns of Software Systems
Failure and Success [Jones,1996], in “Chaos”[Standish Group,
1995], and in Report of the Defense Science BoardTask Force on
Acquiring Defense Software Commercially [Defense Science Board,
1994]);
concluded the same:“success rate of software projects is very low”
(1)Software development still highly unpredictable. Only about 10% of
software projects are delivered successfully within initial budget and
schedule estimates.
(2)Management discipline is more of a discriminator in success or failure
than are technology advances.
(3)The level of software scrap and rework is indicative of an immature
process.
Shows magnitude of the software problem and the current norms for conventional
software management performance. Requires much improvement.

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Conventional S/W Management
Waterfall Model
Part 1:The two basic steps to build a program
Analysis
Coding
Part 3: Five necessary improvements for this approach to work (suggested in 1970).
1. Complete program design before analysis and coding begin.
2. Maintain current and complete documentation.
3. Do the job twice, if possible.
4. Plan. Control, and monitor testing.
5. Involve the customer.
Part II: All “Overhead” Steps
System Requirements, S/W requirements, Analysis, Design, Code, Testing, Operation
[Royce]
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Improvements
1. Program design comes first.
The first fix: insert a Preliminary program design phase between the analysis phase and the software
requirements generation phase.
2. Document the design.
The amount of documentation required is certainly much more than most programmers, analysts,
or program designers like to have;Then why we need it?
(1) Communication b/w many …. (2) During early phase, Documentation is design (3) real
monetary value for later usage (testing…maintenance).
3. Do itTwice.
• version finally delivered to the customer for deployment is actually the second version. Entire
process in miniature.
• Architecture-first development:Architecture team responsible for initial engineering.
4. Plan, control, and monitor testing.Without question, the biggest user of project resources
(manpower, computer time, and/or management judgment) is the test phase.
5. Involve the customer. For some reason, what a software design is going to do is subject to
wide interpretation, even after previous agreement. So important to involve the customer
formally so that he has committed himself at early point before final delivery.

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In practice
Project destined for trouble frequently exhibit the following symptoms:
• Protracted integration and late design breakage.
• Late risk resolution
• Requirements-driven functional decomposition
•Adversarial stakeholder relationships
• Focus on documents and review meetings
Spring 201184
Conventional Software Management Performance
 Finding and fixing a software problem after delivery costs 100 times
more than in early design phases.
 You can compress software development schedules 25% of nominal, but
no more.
 For every $1 you spend on development, you will spend $2 on
maintenance.
 Software development and maintenance costs are primarily a function
of the number of source line of code.
 Variations among people account for the biggest differences in software
productivity.
 The overall ratio of software to hardware costs is still growing. In 1955 it
was 15:85; in 1985, 85:15.
 Only about 15% of software development effort is devoted to programming.
 Software systems and products typically cost 3 times as much per SLOC
as individual software programs. Software-system products (i.e, system of
systems) cost 9 times as much. Diseconomy of scale
 Walkthroughs catch 60% of the errors.

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80% of the contribution comes from 20% of the contributors
80% of the engineering is consumed by 20% of the requirements.
80% of the software cost is consumed by 20% of the components.
80% of the errors are caused by 20% of the components.
80% of software scrap and rework is caused by 20% of the errors.
80% of the resources are consumed by 20% of the components.
80% of the engineering is accomplished by 20% of the tools.
80% of the progress is made by 20% of the people.
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<3> Software & Economies
Packaged Software Markets ($ m)
Item 1994 1995 2000
World 69,918 86,060 152,816
US 31,400 40,000 74,263
W Europe 24,703 28,970 45,243
Japan 7,008 8,365 14,562
Asia 1,079 2,279 4,786

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