Question
You manage a small team of developers that works on internal projects for your company. You have two potential projects your team has the opportunity
Project A
For the first project (Project A), your company has provided you an initial set of application features asked you to develop a cost estimate for the application. Below is some standard data on the team:
Description | Number |
Number of team members | 8 |
Developer Cost per person per day | $80 |
Work units required forproject | 120 |
Ideal schedule length | 3months |
Work unit completion | 30units per month per team |
Projectedsavings before cost | $1,500,000 |
For every month Project A is off schedule, the cost to the business is an additional $30 per developer per day from the end of the ideal schedule length to project delivery.
Project B
The other project (Project B) requires your team to develop a smartphone-based application. Your team is relatively new to smartphone app development, so their work unit completion rate is lower. Project B is a small application and only requires75work units. The company has provided you with sketches of the application and is asking you to provide an estimate.
Description | Number |
Number of team members | 8 |
Developer Cost per person per day | $100 |
Work units required forproject | 75 |
Ideal schedule length | 5months |
Work unit completion rate | 15 units per month per team |
Projected savings before cost | $2,000,000 |
Project B does NOT apply any penalties for late delivery, as this project has an extended timeline.
**Note: Work units are small pieces of functionality in a project. Completing all work units completes the project
Determine the feasibility of both projects, provide a cost estimate, and determine which project would be best for the business.
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