ch26 - Software cost estimation Ian Sommerville 2004...

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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 1 Software cost estimation
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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 2 Objectives To introduce the fundamentals of software costing and pricing To describe three metrics for software productivity assessment To explain why different techniques should be used for software estimation To describe the principles of the COCOMO 2 algorithmic cost estimation model
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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 3 Topics covered Software productivity Estimation techniques Algorithmic cost modelling Project duration and staffing
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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 4 Fundamental estimation questions How much effort is required to complete an activity? How much calendar time is needed to complete an activity? What is the total cost of an activity? Project estimation and scheduling are interleaved management activities.
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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 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.).
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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 6 Costing and pricing Estimates are made to discover the cost, to the developer, of producing a software system. There is not a simple relationship between the development cost and the price charged to the customer. Broader organisational, economic, political and business considerations influence the price charged.
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©Ian Sommerville 2004 Software Engineering, 7th edition. Chapter 26 Slide 7 Software pricing factors Market opportunity A development organisation may quote a low price because it wishes to move into a new segment of the software market. Accepting a low profit on one project may give the opportunity of more profit later. The experience gained may allow new products to be developed. Cost estimate uncertainty If an organisation is unsure of its cost estimate, it may increase its price by some contingency over and above its normal profit. Contractual terms A c ustomer may be willing to allow the developer to retain ownership of the source code and reuse it in other projects. The price charged may then be less than if the software source code is handed over to the customer. Requirements
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ch26 - Software cost estimation Ian Sommerville 2004...

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