Enhancing software development cost control by forecasting the cost of rework: Preliminary study

Tarig Khalid, Eng-Thiam Yeoh

Abstract


Industrial and academic reports show massive cost overruns associated with software projects. The cost of software reworks constitutes a large portion of the overall cost, which reflects a massive challenge in cost control. Earned Value Management (EVM) is the most recognized model for controlling project costs. However, it shows many limitations in forecasting the software project cost, leading to a considerable challenge in cost control. Nevertheless, the major EVM limitation found is its inability to forecast the cost of software rework. This research investigates the factors affecting this limitation and suggests an enhanced EVM model. The significant contribution of this research is its incorporation of software-related factors into the EVM model. We introduce the Software Rework Index (SRI), which is incorporated into the traditional EVM model to enhance its predictability of the software project cost at completion, including the cost of rework. We define the SRI in terms of two factors; these are the product functional complexity and the team competency. Finally, we evaluate the proposed model using a dataset drawn from five actual projects. The results show a significant enhancement in the forecasting accuracy.


Keywords


Earned value management; EVM; Software cost control; Software cost estimation; Software rework

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DOI: http://doi.org/10.11591/ijeecs.v21.i1.pp%25p
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