Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development

Almost everyone understands that budget fluctuations have an impact on software development, but it is difficult to estimate the magnitude of the impact and all the causes. This paper uses System Dynamics modeling to examine how gaps in funding affect software development productivity and product de...

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Main Authors: Trammell, Travis, Madnick, Stuart E., Moulton, Allen
Format: Working Paper
Language:en_US
Published: Massachusetts Institute of Technology. Engineering Systems Division 2016
Online Access:http://hdl.handle.net/1721.1/103025
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author Trammell, Travis
Madnick, Stuart E.
Moulton, Allen
author_facet Trammell, Travis
Madnick, Stuart E.
Moulton, Allen
author_sort Trammell, Travis
collection MIT
description Almost everyone understands that budget fluctuations have an impact on software development, but it is difficult to estimate the magnitude of the impact and all the causes. This paper uses System Dynamics modeling to examine how gaps in funding affect software development productivity and product delivery delay. The results provide decision makers with an improved sense of the negative impacts of budget fluctuations. Two key insights include the “ramp up tax” that slows development and the “gap tax” due to the loss of project-related skill and familiarity when employees are transferred off of a project and then return. The model experiments also compare the different impacts of temporarily stopping a project versus stretching out a project by temporarily reducing the funding level.
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spelling mit-1721.1/1030252019-04-10T22:20:25Z Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development Trammell, Travis Madnick, Stuart E. Moulton, Allen Almost everyone understands that budget fluctuations have an impact on software development, but it is difficult to estimate the magnitude of the impact and all the causes. This paper uses System Dynamics modeling to examine how gaps in funding affect software development productivity and product delivery delay. The results provide decision makers with an improved sense of the negative impacts of budget fluctuations. Two key insights include the “ramp up tax” that slows development and the “gap tax” due to the loss of project-related skill and familiarity when employees are transferred off of a project and then return. The model experiments also compare the different impacts of temporarily stopping a project versus stretching out a project by temporarily reducing the funding level. 2016-06-07T00:00:58Z 2016-06-07T00:00:58Z 2014-10 Working Paper http://hdl.handle.net/1721.1/103025 en_US ESD Working Papers;ESD-WP-2014-32 application/pdf Massachusetts Institute of Technology. Engineering Systems Division
spellingShingle Trammell, Travis
Madnick, Stuart E.
Moulton, Allen
Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development
title Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development
title_full Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development
title_fullStr Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development
title_full_unstemmed Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development
title_short Using System Dynamics to Analyze the Effect of Funding Fluctuation on Software Development
title_sort using system dynamics to analyze the effect of funding fluctuation on software development
url http://hdl.handle.net/1721.1/103025
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