PROJECT MEASUREMENT
AND CONTROL
QUALITATIVE AND QUANTITATIVE DATA
Software project managers need both qualitative and
quantitative data to be able to make decisions and
control software projects so that if there are any
deviations from what is planned, control can be exerted.
Control actions may include:
Extending the schedule
Adding more resources
Using superior resources
Improving software processes
Reducing scope (product requirements)
MEASURES AND SOFTWARE METRICS
Measurements enable managers to gain insight
for objective project evaluation.
If we do not measure, judgments and decision
making can be based only on our intuition and
subjective evaluation.
A measure provides a quantitative indication of
the extend, amount, dimension, capacity, or size of
some attribute of a product or a process.
IEEE defines a software metric as “a quantitative
measure of the degree to which a system,
component, or process possesses a given
attribute”.
MEASURES AND SOFTWARE METRICS
Engineering is quantitative discipline, and direct
measures such as voltage, mass, velocity, or
temperature are measured.
But unlike other engineering disciplines, software
engineering is not grounded in the basic laws of
physics.
Some members of software community argue that
software is not measurable. There will always be a
qualitative assessments, but project managers need
software metrics to gain insight and control.
“Just as temperature measurement began with an index
finger...and grew to sophisticated scales, tools, and
techniques, so too is software measurement maturing”.
DIRECT AND INDIRECT MEASURES
A direct measure is obtained by applying
measurement rules directly to the phenomenon of
interest.
For example, by using the specified counting rules, a
software program’s “Line of Code” can be measured
directly. http://sunset.usc.edu/research/CODECOUNT/
An indirect measure is obtained by combining direct
measures.
For example, number of “Function Points” is an
indirect measure determined by counting a system’s
inputs, outputs, queries, files, and interfaces.
SOFTWARE METRIC TYPES
Product metrics, also called predictor metrics are
measures of software product and mainly used to
determine the quality of the product such as
performance.
Process metrics, also called control metrics are
measures of software process and mainly used to
determine efficiency and effectiveness of the process,
such as defects discovered during unit testing They are
used for Software Process Improvement (SPI).
Project metrics are measures of effort, cost, schedule,
and risk. They are used to assess status of a project
and track risks.
SOFTWARE METRIC USAGE
Product, Process, Project Metrics
Project Time
Project Cost
Product Scope/Quality
Risk Management
Future Project Estimation
Software Process Improvement
Metrics Repository
SOFTWARE METRIC USAGE
SOFTWARE METRICS COLLECTION
Very few companies have made long-term
commitment to collecting metrics.
In 1990’s, several large companies such as HewlettPackard, AT&T, and Nokia introduced metrics programs.
Most of the focus was on collecting metrics on
software program defects and the Verification &
Validation processes.
There is little information publicly available about
current use of systematic software measurement
industry.
SOFTWARE METRICS COLLECTION
Some companies do collect information about their
software, such as number of requirements change
requests or the number of defects discovered during
testing.
However, it is not clear if they then use them. The
reasons are:
It is impossible to quantify Return On Investment
(ROI) of introducing an organizational metrics program.
There are no standards for software metrics or
standardized processes for measurement and analysis.
SOFTWARE METRICS COLLECTION
In many companies processes are not standardized
and poorly defined.
Much of the research has focused on code-based
metrics and plan driven development processes.
However, there are many software develop by using
ERP packages, COTS products, and agile methods.
Software metrics are the basis of empirical software
engineering. This is a research area in which
experiments on software systems and collection of data
about real projects has been used to form and validate
hypotheses about methods and techniques.
REVIEWS AND INSPECTIONS
 A group examines part or all of a process or system and
its documentation to find potential problems.
 Software or documents may be 'signed off' at a
review which signifies that progress to the next
development stage has been approved by
management.
 There are different types of review with different
objectives
 Inspections for defect removal (product);
 Reviews for progress assessment (product and
process);
 Quality reviews (product and standards).
12
REVIEWS AND INSPECTIONS
 A group of people carefully examine part or all
of a software system and its associated
documentation.
 Code, designs, specifications, test plans,
standards, etc. can all be reviewed.
 Software or documents may be 'signed off' at a
review which signifies that progress to the next
development stage has been approved by
management.
13
REVIEWS AND INSPECTIONS
14
REVIEWS AND INSPECTIONS
 The review process in agile software development is
usually informal.
 In Scrum, for example, there is a review meeting after
each iteration of the software has been completed (a
sprint review), where quality issues and problems
may be discussed.
 In extreme programming, pair programming ensures that
code is constantly being examined and reviewed by
another team member.
 XP relies on individuals taking the initiative to improve
and re-factor code. Agile approaches are not usually
standards-driven, so issues of standards compliance are
not usually considered.
15
REVIEWS AND INSPECTIONS
 These are peer reviews where engineers examine the
source of a system with the aim of discovering
anomalies and defects.
 Inspections do not require execution of a system so may
be used before implementation.
 They may be applied to any representation of the system
(requirements, design, configuration data, test data,
etc.).
 They have been shown to be an effective technique for
discovering program errors.
16
REVIEWS AND INSPECTIONS
 Checklist of common errors should be used to
drive the inspection.
 Error checklists are programming language
dependent and reflect the characteristic errors that are
likely to arise in the language.
 In general, the 'weaker' the type checking, the larger the
checklist.
 Examples: Initialization, Constant naming, loop
termination, array bounds, etc.
17
REVIEWS AND INSPECTIONS
Fault class
Inspection check
Data faults





Are all program variables initialized before their values are used?
Have all constants been named?
Should the upper bound of arrays be equal to the size of the
array or Size -1?
If character strings are used, is a delimiter explicitly assigned?
Is there any possibility of buffer overflow?
Control faults





For each conditional statement, is the condition correct?
Is each loop certain to terminate?
Are compound statements correctly bracketed?
In case statements, are all possible cases accounted for?
If a break is required after each case in case statements, has it
been included?
Input/output faults



Are all input variables used?
Are all output variables assigned a value before they are output?
Can unexpected inputs cause corruption?
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REVIEWS AND INSPECTIONS
Fault class
Inspection check
Interface faults




Storage
faults
management 


Exception
faults
management 
Do all function and method calls have the correct number
of parameters?
Do formal and actual parameter types match?
Are the parameters in the right order?
If components access shared memory, do they have the
same model of the shared memory structure?
If a linked structure is modified, have all links been
correctly reassigned?
If dynamic storage is used, has space been allocated
correctly?
Is space explicitly deallocated after it is no longer
required?
Have all possible error conditions been taken into
account?
19
REVIEWS AND INSPECTIONS
 Agile processes rarely use formal inspection or peer
review processes.
 Rather, they rely on team members cooperating to
check each other’s code, and informal guidelines,
such as ‘check before check-in’, which suggest that
programmers should check their own code.
 Extreme programming practitioners argue that pair
programming is an effective substitute for inspection
as this is, in effect, a continual inspection process.
 Two people look at every line of code and check it
before it is accepted.
20
SOFTWARE PRODUCT METRICS
Product metrics fall into two classes:
Dynamic metrics such as response time, availability,
or reliability are collected by measurements made of a
program in execution. These metrics can be collected
during testing or after system has gone into use.
Static metrics are collected by measurements made of
representations of the system such as the design
program, or documentation.
SOFTWARE PRODUCT METRICS
Unfortunately, direct product measurements cannot
be made on some of the quality attributes such as
understandability and maintainability.
Therefore, you have to assume that there is a
relationship between the internal attribute and quality
attribute.
Model formulation involves identifying the functional
form (linear or exponential) by analysis of collected
data, identifying parameters that are to be included in
the model, and calibrating these parameters.
SOFTWARE QUALITY ATTRIBUTES
Subjective quality of a software system is largely based
on its non-functional system attributes:
Safety
Understandability
Portability
Security
Testability
Usability
Reliability
Adaptability
Reusability
Resilience
Modularity
Efficiency
Robustness
Complexity
Learnability
SOFTWARE QUALITY ATTRIBUTES
M a in ta in a b ility
P o r ta b ility
F le x ib ility
R e u s a b ility
T e s ta b ility
IIn
n te r o p e r a b ilit y
P R O D U C T R E V IS IO N
P R O D U C T T R A N S IT IO N
P R O D U C T O P E R A T IO N
C o rre c tn e s s
U s a b ility
R e lia b ility
24
E ff ic ie n c y
I n te g r ity
SOFTWARE QUALITY ATTRIBUTES
REQUIREMENTS MODEL METRICS
Technical work in software engineering begins with
the creation of the requirements model.
These metrics examine requirements model with the
intent of predicting the of the resultant system.
Size is an indicator of increased coding, integration,
and testing effort.
REQUIREMENTS MODEL METRICS
Function-Based Metrics: Function Point (FP) metric is
used to measure the functionality delivered by a
software system.
Specification Metrics: Quality of analysis model and
its specification such as ambiguity, completeness,
correctness, understandability, verifiability, consistency,
and traceability.
Although many of these characteristics are qualitative,
there are quantitative specification metrics.
REQUIREMENTS MODEL METRICS
Number of total requirements: Nr = Nf + Nnf
Nr= number of total requirements
Nf=Number of functional requirements
Nfn=Number of non-functional requirements
Ambiguity: Q = Nui / Nr; where
Nui= number of requirements for which all reviewers
had identical interpretations
The closer the value of Q to 1, the lower the ambiguity
of the specification.
REQUIREMENTS MODEL METRICS
The adequacy of uses cases can be measured using
an ordered triple (Low, Medium, High) to indicate:
Level of granularity (excessive detail) specified
Level in the primary and secondary scenarios
Sufficiency of the number of secondary scenarios in
specifying alternatives to the primary scenario
Semantics of analysis UML models such as
sequence, state, and class diagrams can also be
measured.
OO DESIGN MODEL METRICS
Coupling: Physical connections between elements of
OO design such as number of collaborations between
classes or the number of messages passed between
objects
Cohesion: Cohesiveness of a class is determined by
examining the degree to which the set of properties it
possesses is part of the problem or design domain.
CLASS-ORIENTED METRICS – THE CK
METRICS SUITE
Depth of the inheritance tree (DIT) is the maximum
length from the node to the root of the tree. As DIT
grows, it is likely that lower-level classes will inherit
many methods. This leads to potential difficulties when
attempting to predict the behavior of a class, but large
DIT values imply that many methods may be reused.
Coupling between object classes (CBO). The CRC
model may be used to determine the value for CBO. It
is the number of collaborations listed for a class on its
CRC index card. As CBO increases, it is likely that the
reusability of a class will decrease.
USER INTERFACE DESIGN METRICS
Layout Appropriateness (LA) measures the user’s
movements from one layout entity such as icons, text,
menu, and windows.
Web page metrics are number of words, links,
graphics, colors, and fonts contained within a Web
page.
USER INTERFACE DESIGN METRICS
Does the user interface promote usability?
Are the aesthetics of the WebApp appropriate for the
application domain and pleasing to the user?
Is the content designed in a manner that imparts the
most information with the least effort?
Is navigation efficient and straightforward?
Has the WebApp architecture been designed to
accommodate the special goals and objectives of WebApp
users, the structure of content and functionality, and the
flow of navigation required to use the system effectively?
Are components designed in a manner that reduces
procedural complexity and enhances the correctness,
reliability and performance?
SOURCE CODE METRICS
Cyclomatic Complexity is a measure of the number of
independent paths through the code and measures
structural complexity.
Measures greater than 10-12 are considered to
complex; difficult to understand, difficult to modify and test.
C= E – N + 2
C: Complexity
E: number of edges
N: Number of nodes
SOURCE CODE METRICS
Length of identifiers is the average length of identifiers
(names for variables, methods, etc.). The longer the
identifiers, the more likely that they are meaningful, thus
more maintainable.
Depth of Conditional Nesting measures nesting of ifstatements. Deeply nested if-statements are hard to
understand and potentially error-prone.
PROCESS METRICS
Process metrics are quantitative data about software
processes, such as the time taken to perform some process
activity.
3 Types of process metrics can be collected:
Time taken: time devoted to a process or spent by
particular engineers
Resources required: effort, travel costs, or computer
resources
Number of occurrences of events: events can be number of
defects, number of requirements changes, number of lines of
code modified in response to a requirements change
SOFTWARE QUALITY MANAGEMENT
 Concerned with ensuring that the required level of quality
is achieved in a software product.
 Three principal concerns:
 At the organizational level, quality management is
concerned with establishing a framework.
 At the project level, quality management involves the
application of specific quality processes and checking
that these planned processes have been followed.
 At the project level, quality management is also
concerned with establishing a quality plan for a project.
The quality plan should set out the quality goals for the
project and define what processes and standards are to
be used.
37
SOFTWARE QUALITY MANAGEMENT
 Quality management provides an independent check on
the software development process.
 The quality management process checks the project
deliverables to ensure that they are consistent with
organizational standards and goals.
 The quality team should be independent from the
development team so that they can take an objective
view of the software. This allows them to report on
software quality without being influenced by software
development issues.
38
SOFTWARE QUALITY MANAGEMENT
39
SOFTWARE QUALITY PLANNING
A quality plan sets out the desired product
qualities and how these are assessed and
defines the most significant quality attributes.
The quality plan should define the quality
assessment process.
It should set out which organizational standards
should be applied and, where necessary, define
new standards to be used.
40
SOFTWARE QUALITY PLANNING
Quality plan structure
Product introduction
Product plans
Process descriptions
Quality goals
Risks and risk management.
Quality plans should be short, succinct
documents
If they are too long, no-one will read them
41
SOFTWARE QUALITY
 Quality, simplistically, means that a product should meet
its specification.
 This is problematical for software systems
 There is a tension between customer quality
requirements (efficiency, reliability, etc.) and
developer quality requirements (maintainability,
reusability, etc.);
 Some quality requirements are difficult to specify in an
unambiguous way;
 Software specifications are usually incomplete and
often inconsistent.
 The focus may be ‘fitness for purpose’ rather than
specification conformance.
42
SOFTWARE QUALITY
Have programming and documentation
standards been followed in the development
process?
Has the software been properly tested?
Is the software sufficiently dependable to be put
into use?
Is the performance of the software acceptable
for normal use?
Is the software usable?
Is the software well-structured and
understandable?
43
SOFTWARE STANDARDS
 Standards define the required attributes of a product or
process. They play an important role in quality
management.
 Standards may be international, national, organizational
or project standards.
 Product standards define characteristics that all software
components should exhibit e.g. a common programming
style.
 Process standards define how the software process
should be enacted.
44
SOFTWARE STANDARDS
Encapsulation of best practices - avoids
repetition of past mistakes
They are a framework for defining what quality
means in a particular setting i.e. that
organization’s view of quality.
They provide continuity - new staff can
understand the organization by understanding
the standards that are used.
45
SOFTWARE STANDARDS
Product standards
Process standards
Design review form
Design review conduct
Requirements document
structure
Submission of new code for
system building
Method header format
Version release process
Java programming style
Project plan approval process
Project plan format
Change control process
Change request form
Test recording process
46
SOFTWARE PROCESS IMPROVEMENT
Software Process Improvement (SPI) means
understanding existing processes and changing these
processes to increase product quality or reduce cost
and development time.
Effort/duration per work product
Number of errors found before release of software
Defects reported by end users
Number of work products delivered (productivity)
SOFTWARE PROCESS IMPROVEMENT
An American engineer Deming pioneered the SPI.
He worked with Japanese manufacturing industry after
World War II to help improve quality of manufactured goods.
Deming and several other introduced statistical quality
control which is based on measuring number of product
defects and relating these defects to the process.
Aim is to reduce number of defects by analyzing and
modifying a process.
SOFTWARE PROCESS IMPROVEMENT
However the same techniques cannot be applied to
software development.
Process quality and product quality relationship is less
obvious when product is intangible and mostly dependent on
intellectual processes that cannot be automated.
People’s skills and experience are significant.
Still, for very large projects, the principal factor that affects
product quality is the software process.
SOFTWARE PROCESS IMPROVEMENT
50
SOFTWARE PROCESS IMPROVEMENT
SPI encompasses a set of activities that will lead to a
better software process, and as a consequence a
higher-quality software delivered in a more timely
manner.
SPI help software engineering companies to find their
process inefficiencies and try to improve them.
SOFTWARE PROCESS IMPROVEMENT
52
SOFTWARE PROCESS IMPROVEMENT
 Process measurement
 Attributes of the current process are measured. These
are a baseline for assessing improvements.
 Process analysis
 The current process is assessed and bottlenecks and
weaknesses are identified.
 Process change
 Changes to the process that have been identified
during the analysis are introduced. For example,
process change can be better UML tools, improved
communications, changing order of activities, etc.
53
SOFTWARE PROCESS IMPROVEMENT
54
These slides are designed to accompany
Software Engineering: A Practitioner’s
Approach, 7/e (McGraw-Hill 2009). Slides
copyright 2009 by Roger Pressman.
SOFTWARE PROCESS IMPROVEMENT
There are 2 different approaches to SPI:
Process Maturity: It is for “Plan-Driven” development and
focuses on improving process and project management.
Agile: Focuses on iterative development and reduction of
overheads.
SPI frameworks are intended as a means to assess the
extent to which an organization’s processes follow best
practices and help to identify areas of weakness for process
improvement.
CMMI PROCESS IMPROVEMENT
FRAMEWORK
 There are several process maturity models:
 SPICE
 ISO/IEC 15504
 Bootstrap
 Personal Software Process (PSP)
 Team Software Process (TSP)
 TickIT
 SEI CMMI
56
CMMI PROCESS IMPROVEMENT
FRAMEWORK
 Capability Maturity Model Integrated (CMMI) framework
is the current stage of work on process assessment and
improvement that started at the Software Engineering
Institute (SEI) in the 1980s.
 The SEI’s mission is to promote software technology
transfer particularly to US defense contractors.
 It has had a profound influence on process improvement.
 Capability Maturity Model introduced in the early 1990s
 Revised maturity framework (CMMI) introduced in 2001
57
CMMI PROCESS IMPROVEMENT
FRAMEWORK
 CMMI allows a software company’s development and
management processes to be assessed and assigned a
score.
 There are 4 process groups which include 22 process
areas.
 These process areas are relevant to software process
capability and improvement.
58
CMMI PROCESS IMPROVEMENT
FRAMEWORK
Category
Process area
Process management
Organizational process definition (OPD)
Organizational process focus (OPF)
Organizational training (OT)
Organizational process performance (OPP)
Organizational innovation and deployment
(OID)
Project management
Project planning (PP)
Project monitoring and control (PMC)
Supplier agreement management (SAM)
Integrated project management (IPM)
Risk management (RSKM)
Quantitative project management (QPM)
59
CMMI PROCESS IMPROVEMENT
FRAMEWORK
Category
Process area
Engineering
Requirements management (REQM)
Requirements development (RD)
Technical solution (TS)
Product integration (PI)
Verification (VER)
Validation (VAL)
Support
Configuration management (CM)
Process and product quality management (PPQA)
Measurement and analysis (MA)
Decision analysis and resolution (DAR)
Causal analysis and resolution (CAR)
60
CMMI GOALS AND PRACTICES
 Process areas are defined in terms of Specific Goals
(SG) and Specific Practices (SP) required to achieve
these goals.
 SGs are the characteristics for the process area to be
effective.
 SPs refine a goal into a set of process-related activities.
61
CMMI GOALS AND PRACTICES
For example, for Project Planning (PP), the following SGs
and SPs are defined:
 SG1: Establish Estimates
 SP1.1-1 Estimate the Scope of the Project
 SP1.2-1 Establish Estimates of Work Product and Task
Attributes
 SP1.3-1 Define Project Life Cycle
 SP1.4-1 Determine Estimates of Effort and Cost
62
CMMI GOALS AND PRACTICES
 In addition to SGs and SPs, CMMI also defines a set of 5
Generic Goals (GG) and Generic Practices (GP) for
each process area.
 Each of these 5 GGs corresponds to one of the 5
capability levels.
 To achieve a particular capability level, GG for that level
and GPs that correspond to that GG must be achieved.
63
CMMI GOALS AND PRACTICES
For example, for Project Planning (PP), the following GGs
and GPs are defined:
 GG1: Achieve Specific Goals
 GP1.1 Perform Base Practices
 GG2: Institutionalize a Managed Process
 GP2.1 Establish an Organizational Policy
 GP2.2 Plan the Process
 GP2.3 Provide Resources
 GP2.4 Assign Responsibility
 GP2.5 Train People
64
CMMI GOALS AND PRACTICES
 GG2: Institutionalize a Managed Process (continued)
 GP2.6 Manage Configurations
 GP2.7 Identify and Involve Relevant Stakeholders
 GP2.8 Monitor and Control the Process
 GP2.9 Objectively Evaluate Adherence
 GP2.10 Review Status with Higher-Level Management
 GG3: Institutionalize a Defined Process
 GP3.1 Establish a Defined Process
 GP3.2 Collect Improvement Information
65
CMMI GOALS AND PRACTICES
 GG4: Institutionalize a Quantitatively Managed Process
 GP4.1 Establish Quantitative Objectives for the Process
 GP4.2 Stabilize Sub-process Performance
 GG5: Institutionalize an Optimizing Process
 GP5.1 Ensure Continuous Process Improvement
 GP5.2 Correct Root Causes of Problems
66
CMMI MODELS
 There are 2 different CMMI models:
 Staged CMMI: Assesses a software company’s maturity from 1 to 5.
Process improvement is achieved by implementing practices at
each level and moving from the lower level to higher level. Used to
asses a company as a whole.
 Continuous CMMI: Assesses each process area separately, and
assigns a capability assessment score from 0 to 5. Normally
companies operate at different maturity levels for different process
areas. A company may be at level 5 for Configuration Management
process, but at level 2 for Risk Management process.
67
STAGED CMMI
68
STAGED CMMI
 Initial: Essentially uncontrolled
 Managed: Product management procedures defined and
used
 Defined: Process management procedures and
strategies defined and used
 Quantitatively Managed: Quality management strategies
defined and used
 Optimizing: Process improvement strategies defined and
used
69
STAGED CMMI (LEVELS 1-2)
Level
Focus
Process Area
Requirements management
Project planning
Managed
Basic project
management
Project monitoring and control
Supplier agreement
management
Measurement and analysis
Process and product quality
assurance
Configuration management
Performed
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STAGED CMMI (LEVEL 3)
Level
Focus
Process Area
Requirements development
Technical solution
Product integration
Verification
Validation
Organizational process focus
Organizational process definition
Defined
Process
Standardization
Organizational training
Integrated project management
Integrated supplier management
Risk management
Decision analysis and resolution
Organizational environment for integration
Integrated teaming
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STAGED CMMI (LEVELS 5-4)
Level
Focus
Process Area
Organizational innovation and
deployment
Optimizing
Continuous process
Casual analysis and resolution
improvement
Organizational process performance
Quantitatively managed
Quantitative
management
Quantitative project management
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CONTINUOUS CMMI
73
CONTINUOUS CMMI
 The maturity assessment is not a single value but is a
set of values showing the organizations maturity in each
area.
 Examines the processes used in an organization and
assesses their maturity in each process area.
 The advantage of a continuous approach is that
organizations can pick and choose process areas to
improve according to their local needs.
74
PEOPLE CMM
 Used to improve the workforce.
 Defines set of 5 organizational maturity levels that
provide an indication of sophistication of workforce
practices and processes.
 People CMM complements any SPI framework.
75
PEOPLE CMM
76
PROJECT METRICS
Unlike software process metrics that are used for
strategic purposes, software project metrics are tactical.
Adjustments to time, cost, and quality are done, and
risk management is performed.
As the project proceeds, measures of effort and
calendar time expended are compared to original
estimates.
Project manager uses these data to monitor and
control progress.
PROJECT TRACKING
Binary tracking records status of work packages as
0% or 100% complete.
As a result, progress of a project can be measured
as completed or not completed.
Earned Value Management (EVM) measures the
progress of a project by combining technical
performance, schedule performance, and cost
performance.
Work Accomplished
Schedule
Budget
EARNED VALUE MANAGEMENT
EVM compares PLANNED work to COMPLETED
work to determine if work accomplished, cost, and
schedule are progressing as planned.
The amount of work actually completed and resources
actually consumed at a certain point in a project
TO
The amount of work planned (budgeted) to be
completed and resources planned to be consumed at
that same point in the project
EARNED VALUE MANAGEMENT
Budgeted Cost of Work Scheduled (BCWS): The cost
of the work scheduled or planned to be completed in a
certain time period per the plan. This is also called the
PLANNED VALUE.
Budgeted Cost of Work Performed (BCWP): The
budgeted cost of the work done up to a defined point in
the project. This is called the EARNED VALUE.
Actual Cost of Work Performed (ACWP): The actual
cost of work up to a defined point in the project.
EARNED VALUE MANAGEMENT
Schedule Variance:
SV = BCWP – BCWS
Schedule Performance Index:
SPI = BCWP / BCWS
Cost Variance:
CV = BCWP - ACWP
Cost Performance Index:
CPI = BCWP / ACWP
EARNED VALUE MANAGEMENT
SV, CV = 0 Project On Budget and Schedule
SV, CV < 0 Over Budget and Behind Schedule
SV, CV > 0 Under Budget and Ahead of Schedule
CPI, SPI = 1 Project On Budget and Schedule
CPI, SPI < 1 Over Budget and Behind Schedule
CPI, SPI > 1 Under Budget and Ahead of Schedule
EARNED VALUE MANAGEMENT
Project Description:
We are supposed to build 10 units of equipment
We are supposed to complete the project within 6
weeks
We estimated that 600 man-hours to complete 10
units
It costs us $10/hour to build the equipment
Our Plan:
We are supposed to build 1.67 units each week
Each unit costs $600
We will spend $1,000 each week
EARNED VALUE MANAGEMENT
Project status:
Week 3
4 units of equipment completed
400 man-hours spent
How are we doing?
Are we ahead or behind schedule?
Are we under or over budget?
Results:
Accomplished Work: 4/10 = %40 complete
Schedule: 3/6 = %50 over
Budget: 400/600 = %67 spent
EARNED VALUE MANAGEMENT
BCWS=(600 man-hours*$10/hour)*(3/6 weeks) = $3000
BCWP=(600 man-hours*$10/hour)*(4/10 units) = $2400
ACWP=400 man-hours*$10/hour = $4000
The price of the job that we have done is only $2400 (4
units)
Schedule: in 3 weeks, the price of the job that we should
have done was $3000
Cost: We spent much more; we spent $4000
EARNED VALUE MANAGEMENT
SV = BCWP – BCWS = $2400 - $3000 = -$600
SV is negative; we are behind schedule
CV = BCWP – ACWP = $2400 - $4000 = -$1600
CV is negative; we are over budget
SPI = BCWP / BCWS = $2400 / $3000 = 0.8
SPI is less than 1; we are behind schedule
CPI = BCWP / ACWP = $2400 / $4000 = 0.6
CPI is less than 1; we are over budget
EARNED VALUE MANAGEMENT
Earned Value analysis results are used to predict the future
performance of the project
Budget At Completion (BAC) = The total budget (PV or
BCWS) at the end of the project. If a project has Management
Reserve (MR), it is typically added to the BAC.
Amount expended to date (AC)
Estimated cost To Complete (ETC)
ETC = (BAC – EV) / CPI
Estimated cost At Completion (EAC)
EAC = ATC + AC
REFERENCES
Software Engineering, “A practitioner’s Approach”, Roger S.
Pressman, McGraw Hill International Edition Seventh Edition 2010,
ISBN: 978-007-126782-3 or MHID 007-126782-4
Software Engineering, 9/E Ian Sommerville, University of St
Andrews, Scotland ISBN-13: 9780137035151, Addison-Wesley