Project Cost Estimation PDF
Project Cost Estimation PDF
Various measures are used in project size estimation, Some of these are:
• Lines of Code
• Number of entities in ER diagram
• Total number of processes in detailed data flow diagram
• Function points
Lines of Code (LOC)
It is assumed that there is a very small probability that the actual size
results will fall outside the optimistic or pessimistic value.
Once the expected value for estimation variable has been determined,
historical LOC data are applied and person months, costs etc are calculated using
the following formula.
Size = KLOC
Effort = Person / Month
Productivity = KLOC / Person-month
Quality = Defects / KLOC
Cost = $ / LOC
Documentation = pages of documentation / KLOC
Where,
• KLOC stand for no. of lines of code (in thousands).
• Person-month stand for is the time(in months) taken by developers to finish
the product.
• Defects stand for Total Number of errors discovered
Advantages:
• Universally accepted and is used in many models like COCOMO.
• Estimation is closer to developer’s perspective.
• Simple to use.
Disadvantages:
• Different programming languages contains different number of lines.
• No proper industry standard exist for this technique.
• It is difficult to estimate the size using this technique in early stages of
project.
Example:
Problem Statement:
Take the Library management system case. Software developed for
library will accept data from operator for issuing and returning books.
Issuing and returning will require some validity checks. For issue it is
required to check if the member has already issued the maximum books allowed.
In case for return, if the member is returning the book after the due
date then fine has to be calculated.
All the interactions will be through user interface. Other operations
include maintaining database and generating reports at regular intervals.
Then
Effort = 33200/620 = (53.6) = 54 p-m
Cost per LOC = 8000/620 = (12.9) = 13 $/LOC
Project total Cost = 8000 * 54 = 432000 $
i=14
FP = UFC * [ 0.65 + 0.01 * F ]
i
i=1
Disadvantages
Ignores quality issues of output
Subjective counting .. depend on the estimator
Hard to automate.. Automatic function-point counting is
impossible
Then
• Estimated effort = 401/6.5 = (61.65) = 62 p-m
• Cost per FP = 8000/6.5 = 1231 $/FP
• Project cost = 8000 * 62 = 496000 $
Example 2:
Consider a project with the following functional units :
Number of user inputs = 50
Number of user outputs = 40
Number of user enquiries = 35
Number of user files = 06
Number of external interfaces = 04
Function Points
Advantages:
• It can be easily used in the early stages of project planning.
• It is independing on the programming language.
• It can be used to compare different projects even if they use different
technologies(database, langauge etc).
Disadvantages:
• It is not good for real time systems and embedded systems.
• Many cost estimation models like COCOMO uses LOC and hence FPC
must be converted to LOC.
Process Based Estimation
Process Based Estimation
Activity Risk Construction
CC Planning Analysis Engineering Release CE Totals
Task analysis design code test
Function
Then
• Total Estimated Project = 46 p-m
• Total Project cost = 8000 * 46 = 368000 $
COCOMO Model
Person Estimation (Organic Mode) = E/D = 1295.31 P-M / 38.07 M
= 34 Persons