Software Engineering Economics

Department of Software Engineering

Faculty of Computing and Information Technology

Course Code: SE-231

Course Title: Software Engineering Economics

Credit Hours: 03

Lecture Duration: 1.5 Hours

Pre-Requisite: Software Engineering

Reference Material:

 Software Engineering Economics and Declining Budgets by Pamela T. Geriner, Thomas R. Gulledge,
William P. Hutzler, Springer London, Limited, (31-Jul-2012)
 Software Engineering Economics by Boehm, Prentice Hall, 1981.ISBN-10: 0138221227.
 Estimating Software Costs: Bringing Realism to Estimating by Capers Jones, McGraw- Hill Osborne Media;
2nd Edition (April 19, 2007).ISBN-10: 0071483004
 Software Cost Estimation and Sizing Methods, Issues, and Guidelines by Shari Lawrence P fleeger, Rand
Publishing (September 13, 2005). ISBN-10: 0833037137.
 Software Cost Estimation with COCOMO II by Barry W. Boehm, Chris Abts, A. Winsor Brown and Sunita
Chulani, Prentice Hall (August 11, 2000). ISBN-10: 0130266922.
 Fredrick P. Brooks. Jr., (1974), The Mythical Man Month: Essays on Software Engineering, PaperBack

Instructor: Ms. Hafsa S Dar

Course Description:

This course is aimed to develop students‘software cost estimation skills using industry standards.

Course Syllabus:

The Software Life-Cycle. The Waterfall Model. The Software Work Breakdown Structure (WBS). Software
Maintenance. The Basic COCOMO Model. Development Modes. Model-Product Level Estimates. Performance
Models & Cost Effectiveness Models. Decision Criteria. Present vs. Future Expenditure & Income - Cost
Analysis. Goals as Constraints. Coping with Un-reconcilable & Un-quantified Goals. Detailed COCOMO.
Detailed COCOMO Cost Drivers. Detailed COCOMO Cost Drivers-Personal Attributes: ACAP, AEXP, PCAP,
VEXP, LEXP. Detailed COCOMO Cost Drivers: Project Attributes–Modern Programming Practices, Use of
Software Tools, Schedule Constraint.
Course Outline:

Week Lectures Activity

1. The Software Life-Cycle: The Waterfall Model,

Economic Rationale for the WM,

Refinements of the WM, Life-Cycle Phase/Activity, The

Software Work Breakdown

Structure (WBS) Software Maintenance. The Basic

COCOMO Model: Introduction,

2. Definitions & Assumptions, Development Effort & Case Study I

Schedule, Phase Distribution, Nominal

Project Profiles, The Rayleigh Distribution, Interpolation,

Basic Software Maintenance Effort

Estimation [TB: Ch. 4, 5]

3. Development Modes: Introduction, Basic Effort & Assignment I, Quiz I

Schedule Equations, COCOMO Modes of

Software Development, COCOMO Effort & Schedule

Equations, Phase Distribution of

Effort & Schedule. Activity Distribution. Limitations of

Basic COCOMO [TB: Ch. 6, 7]

4. Model-Product Level Estimates: Introduction, Software Allocation of Project

Development Effort Estimation, Ideas

Estimate of Annual Maintenance, Interpolation &

Extrapolation, Estimating the Effects of

Adapting Existing Software, Intermediate COCOMO

Effort Equations. Component Level

5. Estimation: Introduction, the Component Level Case Study II

Estimating Form (CLEF), Using CLEF with

Adapted Software [TB: Ch. 8, 9]

6. Performance Models & Cost Effectiveness Models: Assignment II, Quiz II

Performance Models, Optimal

Performance, Sensitivity Analysis, Cost Effectiveness

Models. Economies of Scale: Discrete
 Production Functions, Basic Production Functions,
Economies & Diseconomies of Scale,

Diseconomies of Scale on Large Software Projects. [TB:

Ch. 10, 11]

7. Decision Criteria: Minimum Available Budget, Minimum Case Study III

Performance Requirement,
Project Announcement
Maximum Effectiveness-Cost Ratio, Maximum
Effectiveness-Cost Difference, Composite

Options. Net Value & Marginal Analysis [TB: Ch.

12,13]

8. Cost Analysis, Interest Calculation, Present Value

Calculation, Value of a Series of Cash

Flows, Present Value Characteristics, Sensitivity to

Interest Rate or Discount Rate

9. Applications to SE. Figures of Merit: Software Package

Selection, Net Value Analysis,

Figure of Merit Analysis, A Weighted Sum Analysis for

Hardware & Software Selection. [TB: Ch. 14, 15]

10. Goals as Constraints: System Reliability & Availability,

Figure of Merit Evaluation,

Expressing Goals as Constraints, Goals as Constraints:

Feasible Sets & Cost Value Contours,

Decision Problems with Constraints, SE Applications,

Mathematical Optimization

Techniques, Capabilities& Limitation of Mathematical

Optimization Techniques. Systems

Analysis & Constrained Optimization [TB: Ch 16, 17]

11. . Coping with Un-reconcilable & Un-quantified Goals: In- Assignment III, Quiz III
House vs. Vendor Development,

Presentation Methods, Unquantifiable Criteria,

Presentation Techniques for Unquantifiable

Criteria, Presenting & Interpreting Multivariate Data.

Coping with Uncertainties: Decision
 Rules for Complete Uncertainty, Subjective Probabilities,
Decision Rules Under Complete

Uncertainty, The Value of Information, Subjective

Probabilities, Utility Functions, SE

Implications [TB: Ch 18, 19]

12. . Detailed COCOMO: Summary & Operational

Description: The Software Hierarchy

Estimating Form & Procedures, Detailed COCOMO

Example, Schedule Adjustment

Calculations. Detailed COCOMO Cost Drivers: Product

Attributes –Required Software

Reliability, Data base Size, Software Product Complexity

[TB: Ch. 23, 24]

13. Detailed COCOMO Cost Drivers: Computer Attributes –

Execution Time, Main Storage

Constraint, Virtual Machine Volatility, Computer Turn

Around Time [TB: Ch 25]

14. Detailed COCOMO Cost Drivers-Personal Attributes: Assignment IV, Quiz IV

ACAP, AEXP, PCAP, VEXP, LEXP [TB: Ch. 26]

15. Detailed COCOMO Cost Drivers: Project Attributes– Case Study IV

Modern Programming Practices, Use of

Software Tools, Schedule Constraint [TB: Ch 27]

16. Project Viva

Grading Policy:

1 Assignments 10%

10
2 Quizzes %

3 Presentations 5%
3 Mid term 25%

50%
4 Final Exam (15-35)

Plagiarism Policy:
During this course a strict no tolerance plagiarism policy will be adopted. While collaboration in this course is highly
encouraged, you must ensure that you do claim other people’s work/idea as your own. Plagiarism occurs when the
words, ideas, assertion, theories, figures, images, programming code of others is presented as your own work. Failing
to comply with plagiarism policy will lead to strict penalties including zero marks in assignments.