ppt matter

7/28/2019 Ppt Matter

1/3

Performance Measures for the Product Development Process

In order to judge the performance of the product development process four set of measures were

proposed:

a) Cost Based Measures-It assesses the cost impact during the design process and the impact afterthe design is approved.

b) Design Effectiveness-Used for assessing design effectiveness.c) Strategic Measures-It is used for assessing the performance of a product development process.d) Market Impact: It pertains to the nature of the impact a product development process can

create in the market.

Management Accounting Tools for Product Development

Traditional cost accounting and control aspects focus on the cost of products and services at the

manufacturing stage. But recent developments in the field of management accounting have shown that

the final cost of products and services offered to customers is to large extent determined at the design

stage. In purview of this management accountants have proposed two methods: life cycle costing and

target costing.

a) Life cycle costing: It is a methodology that focuses on cost and control aspects of a product orservice throughout its life cycle. It can be further classified as committed cost and incurred cost.

Committed cost means no matter the when the cost is incurred, the amount that was incurred is

fixed much earlier. For example, the moment design of a product is finalized one can estimate

how much the cost of the product will be once manufacturing commences. Second type of cost

is incurred cost which denotes the actual cash outflow with respect to manufacturing the

product. Also 95% of the cost of the product is committed even before the first unit rolls out ofthe manufacturing facility.

b) Target costing: Target costing is a methodology and an organizational mechanism to identifycost reduction methods and keep a check so that the product is designed and manufactured

within the set target. Traditionally organizations have been managing the cost of products using

the cost plus method. In Cost plus approach organizations incur certain costs for manufacturing

a product. In other words, Price=Cost+Margin. However in recent times, as competitions have

intensified organizations require a certain margin to remain in business and continue to invest in

technology. Therefore the equation is now reversed to Cost= Price- Margin.


2/3

Software Product Development

The process of delivering a software product right from the inception of an idea to the

delivery of the final software to the customer is called software product development. A

software development process consists of four stages: requirement analysis, design,development and testing and delivery.

a) Requirement analysis: It is the process of specifying requirements by studying user needsand systematically analyzing and refining the specifications. Most of the times deficient

requirements analysis is a major cause of software project failure and thus identifying the

exact requirements is the most difficult part of a software product development process.

b) Defining requirements: After the requirements have been identified, the softwaredevelopment process involves various levels of design. Design produces a complete and

precise specification of the software to be developed. It defines the principal parts of a

software package, describes how they are integrated to produce the final software.

c) Development stage: It is during the development stage that the actual code is delivered tothe customer as running system is developed. In this stage, actual programs are written

using programming languages and the output of this phase is an implemented and tested

collection of modules.

d) Testing stage: After all the modules have been developed and tested individually all modulesare integrated and tested as a whole system. As it is the last stage of development process

the team needs to ensure that quality of the product is as per customers requirements.

Also care has to be taken that the product is delivered to the customer on time.

Various software development models like linear sequential model or the waterfall model, the

prototyping model, the rapid application development (RAD) model , the incremental model, the spiralmodel and the concurrent development model to name a few are some of the widely used models.

Waterfall method: The waterfall model shows a process, wheredevelopersare to follow the lifecycle

phases.In a strict Waterfall model, after each phase is finished, it proceeds to the next one. Reviews may

occur before moving to the next phase which allows for the possibility of changes (which may involve a

formal change control process). Reviews may also be employed to ensure that the phase is indeed

complete; the phase completion criteria are often referred to as a "gate" that the project must pass

through to move to the next phase. Waterfall discourages revisiting and revising any prior phase once

it's complete. This "inflexibility" in a pure Waterfall model has been a source of criticism by supporters

of other more "flexible" models.

Agile: Agile software development uses iterative development as a basis but advocates a lighter and

more people-centric viewpoint than traditional approaches. Agile processes use feedback, rather than

planning, as their primary control mechanism. The feedback is driven by regular tests and releases of the

evolving software.
http://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Software_developer


3/3

RAD: Rapid application development is a software development methodology that involves methods

like iterative development and software prototyping. According to Whitten (2004), it is a merger of

various structured techniques, especially data-driven Information Engineering, with prototyping

techniques to accelerate software systems development.[1]

In rapid application development, structured techniques and prototyping are especially used to define

users' requirements and to design the final system. The development process starts with thedevelopment of preliminary data models and business process models using structured techniques. In

the next stage, requirements are verified using prototyping, eventually to refine the data and process

models. These stages are repeated iteratively; further development results in "a combined business

requirements and technical design statement to be used for constructing new systems".[1]

RAD approaches may entail compromises in functionality and performance in exchange for enabling

faster development and facilitating application maintenance.

Prototype model: The process of prototyping involves the following steps

1. Identify basic requirementsDetermine basic requirements including the input and output information desired. Details, such

as security, can typically be ignored.

2. Develop Initial PrototypeThe initial prototype is developed that includes only user interfaces. (See Horizontal Prototype,

below)

3. ReviewThe customers, including end-users, examine the prototype and provide feedback on additions

or changes.

4. Revise and Enhance the PrototypeUsing the feedback both the specifications and the prototype can be improved. Negotiation

about what is within the scope of the contract/product may be necessary. If changes are

introduced then a repeat of steps #3 and #4 may be needed.

Iterative model:The basic idea behind the agile method is to develop a system through repeated cycles

(iterative) and in smaller portions at a time (incremental), allowing software developers to take

advantage of what was learned during development of earlier parts or versions of the system.

Learning comes from both the development and use of the system, where possible key steps in

the process start with a simple implementation of a subset of the software requirements and

iteratively enhance the evolving versions until the full system is implemented. At each iteration,

design modifications are made and new functional capabilities are added.
http://en.wikipedia.org/wiki/Software_development_methodologyhttp://en.wikipedia.org/wiki/Iterative_and_incremental_developmenthttp://en.wikipedia.org/wiki/Software_prototypinghttp://en.wikipedia.org/wiki/Structured_Analysis_and_Design_Techniquehttp://en.wikipedia.org/wiki/Information_Engineeringhttp://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Requirementshttp://en.wikipedia.org/wiki/Data_modelhttp://en.wikipedia.org/wiki/Business_process_modelhttp://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Requirementhttp://en.wikipedia.org/wiki/Software_prototyping#Horizontal_Prototypehttp://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Iterationhttp://en.wikipedia.org/wiki/Iterationhttp://en.wikipedia.org/wiki/Software_developerhttp://en.wikipedia.org/wiki/Software_prototyping#Horizontal_Prototypehttp://en.wikipedia.org/wiki/Requirementhttp://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Business_process_modelhttp://en.wikipedia.org/wiki/Data_modelhttp://en.wikipedia.org/wiki/Requirementshttp://en.wikipedia.org/wiki/Rapid_application_development#cite_note-WBD04-0http://en.wikipedia.org/wiki/Information_Engineeringhttp://en.wikipedia.org/wiki/Structured_Analysis_and_Design_Techniquehttp://en.wikipedia.org/wiki/Software_prototypinghttp://en.wikipedia.org/wiki/Iterative_and_incremental_developmenthttp://en.wikipedia.org/wiki/Software_development_methodology

ppt matter

Documents