Week 10 - Software Project Management - Pricing & Scheduling Flashcards
What is the purpose of software pricing estimates?
To determine the cost to the developer of producing a software system, including hardware, software, travel, training, and effort costs.
Why is there no simple relationship between development cost and the price charged to customers?
Broader factors like organizational, economic, political, and business considerations influence the pricing strategy.
What are some key factors influencing software pricing?
- Contractual Terms – Whether the developer retains ownership of the source code.
- Cost Estimate Uncertainty – Companies may add a contingency margin.
- Financial Health – Developers may lower prices in difficult times.
- Market Opportunity – Pricing may be lower to gain market entry.
- Requirements Volatility – Low initial prices can be offset by charging for future requirement changes.
What are the three main pricing strategies in software project management?
- Underpricing – To gain a contract, keep staff engaged, or enter a new market.
- Increased Pricing – To accommodate fixed-price contracts and unexpected risks.
- Pricing to Win – Based on what the customer is willing to pay, with potential reductions in functionality.
What is “pricing to win”?
A pricing strategy where the software is priced based on what the buyer is willing to pay, even if it is lower than development costs.
What is project scheduling?
The process of organizing work into tasks, estimating their duration and resources, and determining how they will be executed.
What are the key components of project scheduling?
Splitting the project into tasks.
Estimating time and resources for each task.
Organizing tasks concurrently.
Minimizing dependencies.
What are some graphical notations used for project scheduling?
Bar Charts (Gantt Charts) – Show schedule as activities/resources over time.
Activity Networks – Show task dependencies
What is the difference between milestones and deliverables?
Milestones – Key points in the project schedule (e.g., system handover for testing).
Deliverables – Work products delivered to customers (e.g., requirements document).
What are the key elements of project activities (tasks)?
Duration – Calendar days or months.
Effort Estimate – Person-days or person-months.
Deadline – Completion date.
End-Point – Expected result (e.g., document, test execution).
What are some common project scheduling problems?
Difficulty in estimating problem complexity.
Productivity is not proportional to team size.
Adding people to a late project can cause further delays.
Unexpected issues always arise.
What is risk management in project scheduling?
A proactive approach to identifying, analyzing, and mitigating risks before they occur.
What factors should be assessed in activity risk management?
Likelihood – How predictable the task is.
Severity – Whether users can live without it if it fails.
Consequences – Impact of failure on other tasks.
Work-arounds – Alternative solutions.
