How to estimate software project costs

[Background] Project Manager Blog

  Generally speaking, software projects can be divided into two types:

  A. Customer Customized System Project Manager Alliance

  B. R&D Productization System Project Manager Circle

  At present, the vast majority of domestic customers are working on A-type customer customization systems, from receiving orders from customers, to meeting customer needs, getting customer contracts, doing development, implementation, and post-maintenance work.

  Another type of B category, doing product research and development work, there are not many people involved in the country, and there are many problems involved in its project estimation, so I won't discuss it here. Project Managers Union

  When doing a normal software project, as an operator and manager, I want to know clearly how big the software project is, how much it will cost, and how much profit I can get, so can I accurately estimate the software project? size becomes important. Project Manager Blog

  Let's dissect the size estimation of a small software project. Transferred from Project Managers Union

[Project requirements document] Project Manager Alliance

  Suppose now that we have received a project, the name of the project is the comprehensive management platform for members of ×××, and we decide to adopt the traditional B/S structure to design. The first thing we have to do is to specifically analyze the requirements document of this project. Only when you are familiar with the requirements can you know the overall size. Project Managers Union

  For specific requirements documents, please refer to: Attachment---System Requirements Document Project Manager Alliance

[Estimated project size] club.mypm.net

  We all know that the normal software development model, such as the waterfall development model, will be divided into a project manager alliance

  A. Requirements Analysis Project Managers Alliance

  B. Basic Design

       C. Detailed Design Project Manager Alliance

  D. Coding Project Manager Alliance

  E. UT Project Managers Union

  F. CT Program Manager Alliance

  G. RT Program Manager Alliance

  H. Post-maintenance talent.mypm.net

  So many stages and steps. However, according to what I have learned, except for a small number of large companies in Japan that strictly follow this process, the vast majority of domestic companies still follow their own temperament. Among them, there are many famous companies such as Neusoft and Lianchuang. So when I formulate the project budget, I still follow the domestic development steps:



 

Conclusion] Project Manager Blog

  Software companies have several ways to calculate their money: www.mypm.net

  A. Domestic companies, such as Lianchuang, use the project segmentation method to collect money, which stage is achieved, or the online template is completed, and the former project manager alliance is considered

  B. Outsourcing companies generally use the amount of money per person per month to receive money. For example, outsourcing to Japan is generally 10,000 to 20,000 per person per month. Project Managers Union

  For the boss, he has to calculate the cost of the project, and also calculate it like this, such as the following:



 # Why in the project cost, there will be 10,000 per person per month?

Because if we assume that the members of the project are composed as follows:



 

So we get:



 

# Why the final price of the project must be greater than 80,000? Project Manager Alliance

  In today's IT market, generally speaking, companies that make customized systems have a profit margin of only 10% to 20%. For example, Lianchuang and Riheng generally have a profit margin of 15%. Project Managers Union

  Especially now that the annual inflation rate is 5%, if a company does not get more than 10% profit, then the company will be doomed. pmp.mypm.net

  Therefore, 70,000 × (minimum profit margin) 10%>=80,000.

[Attachment---Requirements document for the system] www.mypm.net

  system requirement:



 

 

 

 

 

 

 

 

 

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