Submitted by: Submitted by arunnura17
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Pages: 4
Category: Business and Industry
Date Submitted: 10/23/2016 05:34 AM
APPLICATION OF ACTIVITY BASED MANAGEMENT TO SOFTWARE RE-ENGINEERING PROJECT
The following depiction of a real-time software project scenario deals with re-engineering of a solution built using technology A and re-deploying it using technology B.
ACTIVITY BASED COSTS ALLOCATIONS/ESTIMATION
Based on initial discovery and brainstorming sessions with client teams, the expert team was able to analyze and arrive at the below shown estimates for project completion,
Project Activities % Effort In Man-hours
Requirement Analysis 0.00% 0.00
High level design 0.00% 0.00
Detail Design 15.00% 75.00
Build (Coding and Developer testing) 60.00% 300.00
QA & Integration Testing 15.00% 75.00
Documentation 10.00% 50.00
ETL Totals 100.00% 500.00
Project Management 5.00% 25.00
Contingency 10.00% 50.00
Total 575.00
Billing Rate per Hour $60.00
Total Estimated Cost $34,500.00
The above estimation allocated the costs only to those activities where the development team would be spending their time on.
• As you notice, requirements analysis and High level design did not have any cost allocation as those steps were not required as per the initial brainstorming discussions.
• Also, the Build by developer was marked as the fulcrum activity and the allocation was 60% for this step.
• The 300 person hours which contributes to 60% of the cost was arrived at by T-shirt sizing the code in Technology A and guesstimating a possible equivalent time to be taken if re-coded in Technology B. This was more like a ballpark number or a gut feel estimation.
• All the other activities shared the remaining 40% of cost and were split based on respective intensity of effort based on previous experiences.
• Additional 15% of the effort was added on top of the final number to cover for the project management and any unprecedented surprises which may arise.
ACTIVITY ANALYSIS BASED ON ACTUAL DATA – RESTROSPECTIVE ANALYSIS
The project...