The application of activity based management to a software engineering environment

This paper describes a method that supports the use of budgets based on activities and the integration of measurable continuous improvement in the formulation of software development plans. The application of this method fosters the clear definition and documentation of the software development process, outputs, costs and process controls. These definitions enable the evaluation of performance in real-time for quality and cost of outputs, timely deliveries and activity effectiveness instead of waiting for financial results months later. The proper application of this method will result in more accurate estimates processed in days instead of weeks, identification and elimination of non-value added activities, closer correlation between estimates and actual performance and optimum utilization of resources.<>