In 1993 a typical word-processing software application would contain approximately 500,000 lines of code. A new PC spreadsheet software application would take two years and 20 programmers to develop. Further the transformation of Microsoft's Windows operating system to Microsoft's Windows NT operating system required one million lines of new code (The Economist 1993). In conjunction with the development aspects of software applications, U.S. Companies in 1993 spent $10 billion dollars for PC software applications and $20 billion dollars for customized software applications. The issue is the following: how does a software development company know what they are producing meets user requirements, schedules, and budget; while at the same time, customers realize the value of their expenditures for such software? Chances are most consumers of software applications do not get the requirements they need for the value they want and the time they need them. Hence the purpose of this paper is to inform the reader on how function point analysis enables developers to estimate cost and schedules based on user requirements for software development projects. From the estimates, customers can evaluate what functionality they need at what cost they are willing to pay. The result from this activity is for software development companies or internal information system departments to utilize their resources in a cost effective and timely manner; while allowing for software application customers to realize the value they are receiving.
1.1 A Brief History on Function Point Analysis
In the late 1970's Allan J. Albrecht of IBM addressed the issues of estimating and assessing productivity and costs in a multi- language and technological software development environment. Albrecht introduced function point analysis methodology to evaluate software development from the point-of-view of functional points or business requirements of the application. By 1986 a core group of function point analysis users established the International Function Point User's Group (IFPUG). The group is based in the U.S. and has over 600 corporate members from 30 countries. As of 1997 there were over 1,200 members worldwide. The purpose of IFPUG is to produce and maintain the Function Point Practices Counting Manual (release 4.0) for standardizing function point analysis (Smith 1997).
1.2 The Organization of the Paper
In section two, software development obstacles are described to build on the idea for the need of good estimating tools. Section three discusses how managers can use function point analysis. Section four provides the reader with the measurement assumptions and function point analysis caveats. This leads into section five, which offers alternatives to function point analysis. Finally section six will summarize the discussion of this paper.