FACULTY OF ENGINEERING & TECHNOLOGY

Department of Computer Engineering

01CE0607 - Software Engineering – Lab Manual

Practical-3

Cost and Effort Estimation for Software Development

Aim: Perform a cost and effort estimation for the selected system by understanding the scope of the
software to be developed.

Cost estimation and effort analysis are essential for planning and managing software projects,
helping predict the required resources, time, and budget. Function Point Analysis (FPA) is a
widely used method to estimate software size, effort, and cost. It measures the functionality
delivered to the user, independent of programming languages or technologies. Function points are
calculated based on five key components: External Inputs (EI), External Outputs (EO), External
Inquiries (EQ), Internal Logical Files (ILF), and External Interface Files (EIF). Each
component is assigned a weight based on its complexity (Low, Medium, High), and these are
summed up to determine the system's size. This quantitative measure is then used with productivity
rates or cost factors to estimate the total effort (in person-hours) and cost of the project, ensuring
accurate and standardized planning.

3.Cost and Effort Estimation

To estimate the cost and effort for developing a Library Management System using Function Point
Analysis (FPA), the following steps can be utilized.

3.1 Understand the Scope of the System

A Library Management System typically includes the following modules:

1. User Management: Manage users like librarians, students, or faculty.

2. Book Management: Add, delete, or update book details.
3. Search & Issue Books: Search books by title/author and issue/return books.
4. Reports: Generate reports for issued books, overdue fines, etc.
5. Authentication: Login/logout functionality for users.

3.2 Identify and Classify Function Types

FPA involves categorizing system components into five elements:

1. External Inputs (EI): Inputs provided to the system.

2. External Outputs (EO): Outputs generated by the system.
3. External Inquiries (EQ): User-driven queries.
4. Internal Logical Files (ILF): Logical files/data tables maintained within the system.
5. External Interface Files (EIF): Files/data from external systems

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 FACULTY OF ENGINEERING & TECHNOLOGY
Department of Computer Engineering
01CE0607 - Software Engineering – Lab Manual

Table 3.1: Functionality breakdown

Functionality Type Complexity Count

User Registration EI Low 1
Login/Logout EI Low 1
Add/Update/Delete Book Records EI Medium 3
Search for Books EQ Medium 2
Issue/Return Books EI Medium 2
View Issued Books Report EO Medium 1
View Overdue Books Report EO Medium 1
User Table ILF Low 1
Book Table ILF Medium 1
Issued Book Records ILF Medium 1

Table 3.2: Assigning weight for functions

Type Low Medium High

EI 3 4 6
EO 4 5 7
EQ 3 4 6
ILF 7 10 15
EIF 5 7 10

3.3 Calculating Unadjusted Function Points (UFP)

Using the counts and weights above listed in table 3.1 and 3.2.

UFP=∑ (Function Count × Weight)

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 FACULTY OF ENGINEERING & TECHNOLOGY
Department of Computer Engineering
01CE0607 - Software Engineering – Lab Manual

Table 3.3: Function point calculation

Type Complexity Count Weight Total FP

EI Low 2 3 6
EI Medium 5 4 20
EQ Medium 2 4 8
EO Medium 2 5 10
ILF Low 1 7 7
ILF Medium 2 10 20
Total UFP 71

3.4 Adjust for Complexity Factors

The Value Adjustment Factor (VAF) is a multiplier applied to the Unadjusted Function Points
(UFP) to adjust for the specific characteristics of the software system. It is based on 14 General
System Characteristics (GSCs), each rated on a scale of 0 to 5, where:

 0 = No influence on the system.

 5 = Strong influence on the system.

The formula for calculating the VAF is:

VAF=0.65+(TDI×0.01)

Adjusted Function Points (AFP):

AFP=UFP×VAF

Where TDI (Total Degree of Influence) is the sum of the ratings for all 14 GSCs.

Table 3.4: General System Characteristics for LMS and ratings

Characteristic Description Rating (0–5)

1. Data The degree to which the system 3 (e.g., connecting to external
Communications interacts with other systems or devices. databases like student
records)
2. Distributed Data The extent of data processing done 2 (e.g., library branches
Processing across multiple locations or systems. syncing data)
3. Performance The need for high-performance 4 (e.g., fast response for book
Requirements processing (e.g., quick searches or queries and checkouts)
database operations).

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 FACULTY OF ENGINEERING & TECHNOLOGY
Department of Computer Engineering
01CE0607 - Software Engineering – Lab Manual

4. Heavily Used How extensively the system uses the 3 (e.g., multi-user access
Configuration hardware and software configuration during peak hours)
(e.g., server loads).
5. Transaction Rate The frequency of transactions like book 4 (e.g., frequent transactions
issues, returns, and catalog searches. in busy libraries)
6. On-Line Data The amount of real-time data entry 5 (e.g., real-time user
Entry required by the system. registration, book issue, and
returns)
7. End-User The importance of ease of use and 4 (e.g., intuitive interfaces for
Efficiency efficient interaction for end-users. staff and users)
8. On-Line Update The need for real-time updates to the 5 (e.g., real-time updates
data (e.g., updating book records). during issue/return
transactions)
9. Complex The complexity of processing logic in 3 (e.g., overdue fines,
Processing the system (e.g., validations, handling reserved books)
calculations).
10. Reusability The extent to which the system’s 2 (e.g., some reusable
components are reusable for other modules like user
purposes or projects. authentication)
11. Installation Ease The ease with which the system can be 4 (e.g., straightforward
installed and configured. deployment process)
12. Operational Ease The level of automation and ease of 4 (e.g., automated backups,
operation for system administrators. simple user management
tools)
13. Multiple Sites The degree to which the system 3 (e.g., library branches
supports multiple sites or branches. accessing a centralized
system)
The ease of modifying the system to
3 (e.g., relatively adaptable
14. Facilitate Change adapt to new requirements or
system for future changes)
technologies.

 TDI (Total Degree of Influence):

TDI = 3+2+4+3+4+5+4+5+3+2+4+4+3+3 = 53

 VAF:

VAF =0.65+ (TDI×0.01)

VAF =0.65+ (53×0.01) =0.65+0.53= 1.18

 AFP

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 FACULTY OF ENGINEERING & TECHNOLOGY
Department of Computer Engineering
01CE0607 - Software Engineering – Lab Manual

AFP= UFP*VAF

=71*1.18

=84

3.5 Effort Estimation

Effort is estimated based on AFP and the productivity rate. The productivity rate in the context of
Function Point Analysis (FPA) refers to the number of Function Points (FPs) that a development
team can complete in one Person-Month (i.e., the amount of work one person can complete in a
month).

It is an empirical measure based on:

 Team skill level

 Technology used
 Development environment
 Past project data

Typical Productivity Rates

 Simple systems: 25–30 FP/Person-Month

 Moderately complex systems: 15–20 FP/Person-Month
 Highly complex systems: 7–10 FP/Person-Month

Effort (Person-Months)=AFP /Productivity Rate

For the Library Management System, a Productivity Rate of 20 FP/Person-Month was used.

This assumes:

 A moderately experienced team.

 Standard tools and technologies.
 Moderate system complexity.

Effort=AFP/Productivity Rate

Approximately, 84/ 20 = 4 Person-Month

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 FACULTY OF ENGINEERING & TECHNOLOGY
Department of Computer Engineering
01CE0607 - Software Engineering – Lab Manual

3.6 Cost Estimation

To estimate cost, multiply the effort by the developer’s monthly cost. Assuming Developer
Monthly Cost = $5,000

Cost=4 ×5000 =$20000

(Note : cost and effort values are based on assumptions)

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