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Software Cost Estimation

Software cost estimation is a technique used to determine the costs and time required for software project development, essential before starting the project. It aids in planning, monitoring progress, and resource allocation while fostering communication among stakeholders. Various cost estimation models, including empirical, heuristic, and analytical techniques, are utilized to predict project costs based on historical data, relationships among parameters, and task breakdowns.

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Armaan Ahuja
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26 views12 pages

Software Cost Estimation

Software cost estimation is a technique used to determine the costs and time required for software project development, essential before starting the project. It aids in planning, monitoring progress, and resource allocation while fostering communication among stakeholders. Various cost estimation models, including empirical, heuristic, and analytical techniques, are utilized to predict project costs based on historical data, relationships among parameters, and task breakdowns.

Uploaded by

Armaan Ahuja
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Software Cost Estimation

Cost estimation simply means a technique that is


used to find out the cost estimates.
Whenever we develop a software project, main
questions that arise in our mind is how much it will
cost to develop and how much time it will take for
development.
These estimates are necessary and needed
before initiating development.
Uses of Cost Estimation

1. During the planning stage, one needs to choose


how many engineers are required for the
project and to develop a schedule.
2. In monitoring the project's progress, one needs
to access whether the project is progressing
according to the procedure and takes corrective
action, if necessary.
3. It offers a shared understanding of the financial
concerns and facilitates open and honest
communication among project stakeholders.
Uses of Cost Estimation

4. It affects resource allocation and project


duration, that is why the amount of time
needed for various project activities is a crucial
component in cost assessment.
5. It makes it possible to allocate resources such as
labor, tools and supplies in a way that
maximizes effectiveness and reduces waste.
Cost Estimation Models

 Cost estimation models are some mathematical


algorithms or parametric equations that are
used to estimate the cost of a product or a
project.
 Various techniques or models are available for
cost estimation, also known as Cost Estimation
Models.
Cost Estimation Models

1. Empirical Estimation Technique –


 Empirical estimation is a technique or model in
which empirically derived formulas are used for
predicting the data that are a required and
essential part of the software project planning
step.
 These techniques are usually based on the data
that is collected previously from a project and
also based on some guesses, prior experience
with the development of similar types of
projects, and assumptions.
Cost Estimation Models

1. Empirical Estimation Technique –


 It uses the size of the software to estimate
the effort.
 These models are based on common
sense.
 For example Delphi technique and Expert
Judgement technique.
Cost Estimation Models
Cost Estimation Models

2. Heuristic Technique –
 Heuristic word is derived from a Greek word that
means “to discover”.
 The heuristic technique is a technique or model
that is used for solving problems, learning, or
discovery in the practical methods which are
used for achieving immediate goals.
 These techniques are flexible and simple for
taking quick decisions through shortcuts and
good enough calculations, most probably when
working with complex data.
Cost Estimation Models

2. Heuristic Technique –
 In this technique, the relationship among
different project parameters is expressed using
mathematical equations.
 The popular heuristic technique is given by
Constructive Cost Model (COCOMO).
Cost Estimation Models

3. Analytical Estimation Technique –


 Analytical estimation is a type of technique that
is used to measure work.
 In this technique, firstly the task is divided or
broken down into its basic component
operations or elements for analyzing.
Cost Estimation Models

3. Analytical Estimation Technique –


 If there is no such time available, then the work
is estimated based on the experience of the
work. In this technique, results are derived by
making certain basic assumptions about the
project.
 Hence, the analytical estimation technique has
some scientific basis.
 Halstead’s software science is based on an
analytical estimation model.

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