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Introduction
What is a PROJECT?
• Planned activity.
• A planned undertaking.
Characteristics
• Non-routine tasks are involved.
• Planning is required.
• Measurable.
• Achievable.
• Relevant.
• Time constrained.
Stakeholders
• Internal to the project team
• What?
• How?
Factors (continued…)
• Why? are software economics important?
– Feasibility analysis
Project Proposal
feasibility
No profit/
Rs making time
Don’t proceed
1. Size
2. Process
3. Personnel
4. Environment
5. Required Quality
Parameter relationship
• Effort=(Personnel)*(Environment)*(Quality)*(Size Process)
• Diseconomy of scale!
– What are the reasons for this?
Three generations of software economics
Cost
Software size
1960s-1970s 1980s-1990s 2000 and on
Waterfall model Process improvement Iterative development
Functional design Encapsulation-based Component- based
Diseconomy of scale Diseconomy of scale Return to investment
1 Project Solution:
$N and M months Many-project solution:
Operating with high value
per unit investment, typical
2 Project Solution: of commercial products
and Schedule Resources
5 Project Solution:
125% more cost and
150% more time
Concerns Bureaucracy vs. standardization Quality vs. financial performance Content vs. schedule