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KNOWLEDGE ENGINEERING: PRINCIPLES AND TECHNIQUES<br />

Proceedings of the International Conference on Knowledge Engineering,<br />

Principles and Techniques, KEPT2009<br />

Cluj-Napoca (Romania), July 2–4, 2009, pp. 206–210<br />

SOFTWARE COST ESTIMATION MODEL BASED ON NEURAL<br />

NETWORKS<br />

C ĂLIN ENĂCHESCU(1) AND DUMITRU R ĂDOIU(2)<br />

Abstract. Software engineering is providing estimation models in order to evaluate<br />

the costs for important phases of software development such as requirements<br />

analysis, high and low level design, development, testing, deployment and maintenance.<br />

The paper proposes a software cost estimation model based on neural<br />

networks and compares it with traditional cost estimation models. The paper<br />

argues that there are at least two considerable advantages for the neural network<br />

model: neural networks can learn from previous experience and secondly, neural<br />

networks can discover a complete set of relations between dependent variables<br />

(software cost, software size, required effort, etc.) and independent variables<br />

(complexity of the project, number of inputs and outputs, files, various cost<br />

drives etc.).<br />

1. Software cost estimation<br />

A very critical aspect for suppliers and clients in a software project is the accuracy<br />

of the software project cost estimation [3]. This accuracy represents the basic<br />

argument in contract negotiation, project plan and project controls. Accuracy has a<br />

great influence on the following items [13]:<br />

• Prioritization and classification of the software development projects;<br />

• Accurate estimation of the required human resources;<br />

• Evaluation of the financial impact determined by the chance requests;<br />

• Efficient control of the project based on realistic and efficient resource allocation;<br />

• Keeping the project cost in the reasonable limits as agreed with the client.<br />

The estimation of a project cost (measured in currency) is based (in broad lines)<br />

on the following estimations [5]:<br />

• Project size (e.g. measured in functional points);<br />

• Project effort (e.g. measured in person/months);<br />

• Project duration (e.g. measured in working days);<br />

• Project schedule (measured in calendar days);<br />

• Other cost drivers (e.g. labor cost, organizational overhead, procurement<br />

costs);<br />

2000 Mathematics Subject Classification. 68N30, 68T05, 62M45.<br />

Key words and phrases. software development cost estimation, software metrics, neural networks.<br />

206<br />

c○2009 Babe¸s-Bolyai University, Cluj-Napoca

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