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Agile Management for Software Engineering: Applying the Theory of Constraints for Business Results by Eli Schragenheim, David J. Anderson

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Chapter 24. Financial Metrics in FDD

Inventory in FDD

The unit of Inventory in FDD is the Feature. The Inventory in the FDD system of software production is the total Inventory being held in the Feature List. This includes Features not yet started, Features in-progress, and Features completed but not yet delivered in a release.

Investment in FDD

In Chapter 2, Investment (I) was defined as the money sunk in the total Inventory of raw material. In software terms, I is the cost of acquiring the ideas for the product to be developed in the form of requirements. In FDD, Investment is defined as all the costs pre-step 1 plus the costs of step 1, Modeling, and step 2, Feature List.

Pre-step 1 represents any upfront activity conducted by the business ...

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