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Abstract ▼ AI-Helper

This paper presents the scale economies theory which is one of the point at critical issue in microeconomics, and studies the development of cost estimation model. It shows that existence of economies of scale and diseconomies of scale depends on the size of software development projects, and argue...

This paper presents the scale economies theory which is one of the point at critical issue in microeconomics, and studies the development of cost estimation model. It shows that existence of economies of scale and diseconomies of scale depends on the size of software development projects, and argues how measure the most productive scale size(MPSS). We find software productivity formula using factors which significantly affect the scale economies, and derive the Productivity Oriented Model(POM) which is proved to be excellent compared with other cost estimation model. It shows that the integration of MPSS and POM provides a project size goal in order to maximize the average productivity of future new software development projects and allows the effective project management.