Estimating Software-Intensive Systems: Projects, Products, and Processes by Stutzke Richard D

Author:Stutzke, Richard D....
Language: eng
Format: epub
Published: 2014-03-29T03:08:57.890000+00:00

Figure 15-1 Cash flow versus time

For software especially, there is a trade-off between the time to market versus the quality of the product. Usually, software quality increases with time since more testing can be done. Many firms, however, find it necessary to deploy a product with known defects to meet a market window. They do this to obtain revenues needed to obtain favorable cash flow, or to capture market share. They must balance the costs of deploying a better product later, against the costs for handling an increased number of customer problems (help desk calls, distribution of patches, loss of goodwill).

Recall that a resource loaded network is a task network where each task has resources assigned to it. The resource loaded network captures the overall project plan (cost and schedule). In particular, it is a time-phased budget for the project, which is a key input for cash flow calculations. Steve Tockey describes types of cash flow in Chapter 3 of [Tockey, 2005].

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