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Costs and benefits of software engineering in product development environments

A computer-based cost benefit (CBFM) forecasting model was developed to investigate possible long term effects of improved productivity that might be realized from the use of modern software engineering tools. The model was implemented in the development environment of Company X, a multinational corporation that manufactures embedded processor based control system products. The primary purpose of the model was to generate comparative data to answer “what if’ questions posed by senior corporate management attempting to understand possible overall effects of introducing the new software development methodologies. The model provided comparative data regarding programmer labor costs, probably this company’s most visible yet least understood line item in their monthly status reports. For Company X, the assumptions that were used to develop the CBFM were tailored to senior management’s own priorities. Hence the model produced comparative summaries that ultimately allowed Company X to make the decision to begin implementing new software engineering strategies for product development.