Commercial Constraits – Coursework Example

Commercial Constraints Cost estimations for commercial constraints Fortheby needs to acquire a software to eliminate the commercial constraints if is facing. Cost estimation is an approximate measure of a projects expected cost. Technical, environmental, human, political and economic factors are taken in consideration when estimating costs, hence, cost calculations cannot be fixed. The cost estimation process has three basic steps. The first step involves the establishment of an estimation plan. Data collection methods, why data is collected and the purpose of estimation process are identified. The second step involves performing cost estimations as per the requirements. Different estimation methods can be used as there are not any perfect techniques. Variances are hence used for re-evaluation of the estimates. Lastly, an assessment is made after completion of the estimation process. Assessment allows for refinement of cost estimation process in future.
The classical model for software cost estimation uses the software requirement as the basis for estimation. The estimated cost is adjusted to be in line with cost drivers that affect the software’s cost. Cost drivers include system complexity, personnel experience, skill-level, programming language, design methodology and risk assessment. Computation of cost drivers generates three outputs. The output being the expected project duration, effort required for project completion and manpower loading. However, this model has been refined to take into account other factors.
The actual view model takes into account constraints and other inputs besides cost drivers. The constraints include manpower, data and financial constraints. Other inputs include architecture which are the components making up a system and interrelationships between components. Since software requirements might change, estimators are sought to detect ambiguities. Detection of ambiguities helps ensure accuracy of the estimation process.
Numerous software cost estimation techniques are used. The techniques include top-down, algorithmic model, bottom-down, expert judgment, estimation by analogy and price to win estimation.
Cost Estimates for Software Applications at Fortheby
Software Development
$6000
Website Design
$4000
Website domain and hosting
$400 per year
Outsourcing cost
$2000
Other techniques
$3000
Total estimated cost
$15,400
Source of Estimates: http://www.computing.dcu.ie/~renaat/ca421/report.html