4. Things to Consider When Using Function Point Analysis

Accurately measuring software project's cost and development time is essential for a business, which internalizes its IS project development, and for software development companies, which develop business applications. If projects are not sized well in the requirements gathering phase of the software development life cycle, businesses will lose out to those who do it more efficiently. Therefore the following paragraphs describe why it is important to have good measurement systems in place, e.g., function point analysis, and what additional assumptions and caveats are worth mentioning for function point analysis.

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4.1 Importance of Good Measurement Systems

According to one study, proper measurement of software development projects should cost five to eight percent of the total project's budget (Rubin 1994). This is to help ensure the project is estimated properly and allocate necessary resources for its development. There is no perfect metric; however software developers must accept and follow the measurement tool that is used. Measurement tools must evolve over time. Whether experience or better techniques are used, the measurement tool must incorporate the latest advances in measurement. Given these key points regarding the importance of measurement tools, if software developers are faithful at following these rules, it will help them maintain a competitive advantage (Rubin 1994).

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4.2 Function Point Analysis Caveats

Function point analysis is one-of-many software application estimating tools for measuring cost and development time of software projects. As seen in the next section, alternative estimating tools are discussed; however before considering them, the following lists additional assumptions and caveats when using function point analysis:

 In light of these assumptions and caveats, the next sections implores the use of alternatives to function point analysis.


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Rick Southard
November 13, 2000
MSIS 488 - System Analysis