Project Evaluation and Management

Partial II Reflection

Photo by **Nguyen Nguyen** in **Pexels**

In this part I have learned a lot about how to undertake and how to be a good project manager. Thanks to the talks that the guests to the class have given us, there are many very important points that must be taken into account.

Entrepreneurship is not easy, as the Mexican saying goes «they are not enchiladas». Everything takes time and you have to know that you are probably not the only one doing that, you have to know your client very well, know their needs and if your product will satisfy those needs. If there is already a product that is the same as yours, to think that it makes yours different from others, this is very complex, but you need to know the idea well and have it in a good base. As an entrepreneur you must know that it is difficult the first years and that you will not see much money, little by little you will grow and of course you will also begin to see the money back, since at the beginning you have to invest in the idea, human capital and In material to be able to carry out the idea, all that is not easy, you have to look for investors and of course not only look for any investor but rather someone who can guide you along the way. We who are young can create and undo ideas, as one guest said, being able to fail is not bad, you fail, those failures will help you to be better and to find your deficiencies and to be able to improve what we lack. It is important to recognize where we are wrong, because if we do not recognize our mistakes, we will always think that everything is okay and that we are never wrong. And that will lead us to a cycle of lies.

As a project manager you have to be in everything, not just tell me how to lead people. You have to lead a whole team, have a good communication with both the client and your team, know the times of things and be a good leader. The important thing is to have good communication in everything, because it is the way in which you are going to make yourself understood and know, if you do not know how to express what you feel it is very difficult for you to have good communication. It is also important to know your team to know what they are good at and not, to renew their moods, a worker who is distracted in the work will not make a good production for someone who if he is focused on his work, they are also people who have to rest , clear your mind to generate ideas, etc. Knowing who you are working with is important, that is, knowing your client, because it is not the same as you are doing a job just by doing it to involve the client with meetings, calls, etc., the client plays an important role in this, you have to make it your friend. Knowing what your team is working with is important, so that they do not deceive you with the times, for example saying that they are not familiar with a certain tool, when they are already familiar, only to want to waste time. It is important to manage this time in a good way to avoid eventualities, of course not all are exposed, but we can avoid many setbacks if you have good time management. It is important that you as a leader know how to handle certain things, because you not only manage people but you are involved in the whole project and if it does not go well, what can be said about you. you’ve failed as a project manager.

Readings

Photo by **andres chaparro** in **Pexels**

The lectures are interesting in this chapter, I am missing some of the chapters but I think that on Monday or Tuesday I will be finishing, some just remain to be published. But as I mentioned in the first part, this way of understanding how to be a project manager is different from just seeing concepts and learning what they are for, here you have the opportunity to see those concepts, on your own you can investigate about those concepts and through the novel can see how they can be applied or how to do certain things. I feel that this form helps us understand the concepts because in a certain way we are seeing them in an applied way and we not only see the concept as such but we never know how it is applied. This is, so to speak, practice and theory at the same time, and at least I like that idea.

Tec Campus zoom

Quarantining has been difficult because many times we want to go out for a bit of air or we miss our friends, but it is important to take care of ourselves to avoid COVID-19. School is difficult since some subjects are difficult to understand and now it is worse this way, there are many tasks and in some ways more stress. But all this can be avoided if one manages his time with different activities and of course fulfilling the activities of the school, without procrastination. For example, it is very easy that you do not study for an exam because of all the distractions that may be around you and more so now in quarantine. So I would recommend having a schedule to free yourself from certain things or clear your mind, you can read, exercise at home through a video, play video games for a moment, so that not all your consent goes to school or other activities, because that can absorb you and be able to do things wrong. With a schedule to continue with different activities, secondary to your main activities, I feel that time could be better managed than just saying I have my classes and then I do what I want, I hope it were like that, but there are tasks, activities to do and not you can procrastinate all the time.

Guest Speaker Reflection – Jorge Morales

Photo by **lalesh aldarwish** in **Pexels**

The video game industry is very large, but analyzing all aspects of video games is better, because many would think that it is only designing, programming and having the idea, if not also has to do with the costs of the final product. video games are not only for one platform, many times they are for several and depending on the aspects that that platform contains, it is not the same to make a video game for a PC, console or smartphone.

He mentions a smartphone game called clash of clans, I played it when I was at the end of high school, when I entered university I stopped playing it and to this day I still do not play it, but I saw that many people bought gems in the game to be able to Make improvements, especially the pro players were the ones who spent the most money to be in the first places. I remember the game was down but people are still playing.

Now to make a game you have to think about whether you will take it to mobile development or consoles, since depending on where you want to focus it you have to have several tools and above all have a great team today to be able to carry out the entire project, you have to have from programmers, animators, lawyers, sound people, marketing, etc. It is not just saying I want to do this but being able to say now we are going this way, or you have to change this to get attention and keep the game alive. Because if not the games can die in a short time if you do not have a good strategy to keep monetizing it for many years.

The importance and classification of bugs is important, because it has happened to all of us that from nowhere it closes us or we cannot continue with an action for something that is not working well, usually they do not usually happen, I have After several bugs, but the best thing is when nothing as serious as the game closes, in order to get the game out it is important, as mentioned in each phase of development, to see what bugs to solve and with the help of the same players found bugs could be scrambled better. Because many times we can say that nothing happens here but someone could find something else.

The importance of how to monetize is important for companies to be able to look for a good business, because many times if it is done in a single exhibition it is much better for some, but doing it for a subscription may be better for others, but the problem here is look for ways to monetize well to recover the investment, for those many do the free modality with subscription or payment but microtransactions within the game, that’s why many games nowadays have a store where skins come out, or certain things all the days for people to buy them for their characters and spend money in-game.

Partial Reflection

Guest speakers

Our guests have helped us understand a little more about the different topics in the class, complemented by those we read in the novel about software manager. The guests are prepared and guide us towards the topics, since many times we can read things or watch a video to be able to know about it, but nothing better than someone who handles the topic and can give us examples to imagine situations.

For example, our first guest who explained us about personal finances, is something very important because you must know how to manage our money and know how to make it grow too. This topic for me was very important because it made me think about what I was doing for my future investment and even though I don’t have a job, the money that sometimes I have left over from what my parents give me, because I save it. But after this talk I realized that if it was the right thing to save it but in the future that money would not have the same value, this is why it had to be invested in order to grow and not stay the same. I talk about how we should manage our salaries to have money for our retirement, since it is important to raise money for the retirement, also of the different investments that we could make and especially the compound interest that is calculated on the main amount and also on the accumulated interest of previous periods.

Within the first talk we touched on economics, it was not software economics but they are related to the fact that the same definitions are used, this talk and the definitions of economics would have served me well for my kind of entrepreneurship, to be able to manage the costs of project in a proper way. This is where I see why it is important to take this type of classes, since we should not only know about programming, algorithms, etc., we should also know how we are going to be able to carry out a good project from the beginning to the end, it is like a building to my way of thinking if you don’t have good feelings the building could fall. We must know everything because in the future we may be in front of a team leading a project and we must act to carry out the project.

Our second guest explained to us about how to be a project manager, and what skills we must have in order to become one. But in one of the questions, she answered that we should apply to the interships offered by large companies such as Google, Facebook, Amazon, etc. These are great opportunities for us as students because it is going to meet a company, work for that company and get to know a new place and, above all, add something else to the CV. This made me think that throughout my career I have wasted being able to apply to some intership, for fear of being rejected, but the truth is that, if you stay or not, it is an experience that can be enriching and will help you to be best.

Our third guest also talked about project management but more focused on video games to give us another perspective, it was very interesting because it gave us a lot of very complete information and gave us a lot of information that at least I did not know about the video game industry Despite a huge fan of video juices, I have only seen how they evolve but I have never really seen how it really is. But a point that became very important to me was the humane treatment for the team members, this is important because you have to make all the members feel useful, they are physically and mentally well, because depending on how they are, it is that they are going to pay at work and that is why it is always important to be aware of them, because companies often see them as tools and not as people. Also as video games are going to different models to get the most money possible, if not, they would not be profitable, most of the current games have microtransactions, they do not affect the gameplay, but if they make people want everything that could come out in the game store.

Photo by **Matheus Bertelli** in **Pexels**

Lectures

At first the novel seemed strange to me, I did not know how a novel was going to help us understand what we see in class, but I was wrong, when passing the chapters many points were coming out, it was not just reading for reading, some of the points that were mentioned about IEEE and also about quality are very important topics that I remember from my quality and software testing class. El capitulo en el cual se menciona el The world’s first Project Management Laboratory, para mi fue muy raro, ya que no comprendia como se iba a llevar acabo todo esto, pero poco a poco en ese y los demas capitulos comprendi que se queria desmostrar con esto.

The readings have helped me understand various aspects of software manager, which are very important. Before knowing this class I had a different idea than software manager, I thought that it is only directing a project and that’s it, but not if it is directing a project but you have to get involved in different things, choose team leaders, the times of delivery, money for the project, finding new people, etc. An important point of the reading was when the 4 characteristics for hiring someone are mentioned, I think they are fundamental and need to be carried out, but few know about them. The people around you must also be in tune with what you think, in order to discuss the advantages and disadvantages of the project. Planning is important since it is not only saying if I have it in two weeks, because those two weeks could become 3 months or more, everything must be planned to deliver everything on time.

The readings have been enriching both to strengthen my English and to strengthen the topics of the class, the magic of reading is the way things are told to you and how they develop, it is a novel that I am enjoying, Despite the fact that at the beginning I was disavowing them now it is pleasing me and I already want to know how the story will end.

Photo by **Castorly Stock** in **Pexels**

Chapter 11 reflection

Chapter 11: The Sinister Minister Belok

Photo by **emre keshavarz** in **Pexels**

On a cool spring morning in Moravia. Mr. T on his way to work, the morning is perfect to enjoy and breathe the freshness of a new day as he walks to Aidrivoli Campus. The path where he walks is beautiful because it crossesy the vineyards and along the side of a little brook. Although you think that he only walked from A to B every day, but in Morovia this can be completely different since you can see many more things than we could find in any city. Mr. T has been for more than 3 months in Morovia and did not remember what it is to have such a happy day in his life, only in Morovia has he achieved this.

To many of us it happens that sometimes we do not appreciate the paths that lead us to work, or to school and when we really stay to observe those paths we realize things as simple as colors or people who could be there every day. or some particularity of some facade. Normally we are always thinking about whether we will be on time, where we will find parking or anything else.

Mr. T was optimistic about some of the smaller projects that might be complete by then, however a project like PShop that is one of the biggest might come a year later than planned. in that project at least, was to figure out some way to gain a full year. For now, he could relax and feel good about all the things that were going right. NNL seemed like a pretty sensible fellow once Mr. T had taken a firm stand and laid down the law to him. Since their first meeting in Korsach, Morovia’s tyrant had been almost putty in his hands. He seemed comfortable to let Tompkins run his shop the way it ought to be run.

The card that the little man offered Mr. T said: Allair Belok, Minister of Internal Affairs and Deputy Tyrant. thats our sinister minister.
I think that should make things clear, the Minister repeated the words distastemy. He looked heavenward, his saintly patience tried. Then, looking back at Tompkins with a sneer: «I am, quite simply, the only indispensable person in this Morovian venture. In the past, I have been responsible for financial matters, all financial matters in NNL’s various interests.

The minister said that his particular focus is the financial. But we’ll just ignore the financial aspects of you and your rather over rewarded staff, and the outrageous costs of all those computers and networks and hubs and satellite dishes and high-speed modems and all that other rather irresponsible spending. Mr. T took a deep breath. It probably wasn’t worth it, but he had to make an effort.

Mr.Tompkins opened a file drawer and pulled out some of the simulations they’d been running over the past few days, using Dr. Jamid’s model. And he said: «Now, here, if I can just find the right sheet . . . yes, here. Look at this. and He spread the results of one run on the desk in front of Belok. «Look at this. We’re currentIy projecting 524 workdays for our PShop-A project with twelve people on board.»

Listen. CBC Spark #469: «Remote»

The activity for this week is to listen to this podcast episode. CBC Spark is a great podcast which relates to me more as being a Canadian podcast from CBC Radio.

Link to that episode: https://www.cbc.ca/radio/spark/working-from-home-trust-is-key-says-ceo-of-company-with-completely-remote-workforce-1.5504872 (Enlaces a un sitio externo.)

Opinion:

Working from home can be a double-edged knife, because I think this because it can happen that you you trust yourself how comfortable it is to be at home and you cannot manage in your time to do your activities. In order to organize yourself well, I think that you have to continue your daily life as before, even if you no longer go out, you have to continue with your common activities.

Something very important to be able to work at home is to have a good internet connection, since this is essential, due to different things, in order to take the classes, as is my case, I have to be zoomed in to see my teachers as If the class was normal, I also have to have a browser open to carry out the activities or upload them. The point is that in your house your relatives may also make a home office or they may only be Netflix or YouTube who are applications that demand enough broadband it is difficult to work like this.

It happens to me that sometimes the internet connection is blocked by the use I am giving it and because the other people in the house use it, but I feel that if everyone agrees on what times not to use certain applications it works Well because that way the connection is not lost much.

Also an important point is to have your work area organized since it is essential to have food, good light and what you are going to use this near that area. A desk where you can write, have a laptop, a lamp, books, etc. but it must be a space especially free of noise and distractions, in my case I am in a working place of my dad, but it is close to the kitchen and I have class at 3:30 so you can hear some noise but it does not distract me, but it is important to have a good work area.

You also have to be careful with the noises that can be filtered or what could happen behind us, this more than anything to avoid embarrassment. Why can’t you just leave the microphone open and you can hear screaming, fighting, arguing or some other sounds. But also what happens behind us is important, if we have a mirror behind, be careful that it does not come out or cover it so that it is not visible. You may see something that you don’t want it to be seen because of not having certain care.

Also how are you dressed, it is your house you will know how you can dress, but at least be decent and not in boxers or without a shirt. We must take care of how we see ourselves, since even if it is at a distance, we must take care of our image.

Photo by **ThisIsEngineering** in **Pexels**

Chapter 10 reflection

Chapter 10: Abdul Jamid

Mr. T traveled to Rome to be able to check some accounts and be able to update them, he had to change from a previous account and travel to a newer one to be able to put the funds that they would give him for the projects, he had requested the new passwords and they were given them They sent by fax, they told him that once he had them, he would change them and that he did not keep them on his laptop, only in his mind, in case his laptop was stolen, they did not have access to their accounts.

Mr. T is on the way to his hotel with Dr. Jamid, who introduced him and they started talking about management dynamics, he is overwhelmed by all the information he sees about management dynamics. Mr. Tompkins was still not convinced about this to what he said. «The simulator calculates the aggregate, that’s what you’re saying. Big deal. Since the input to the simulator only specified my hunches anyway, how can the simulation prediction of their aggregate effect be better than my hunch over the added door? «

Dr. Jamid began drawing a model on the screen. Use a rectangular tank to represent your usable staff. The higher the level, the more people they will have. We will set its initial value up to one hundred. That is already a model, but it is not very dynamic, since there are no flows of people leaving the project or new hires. If we find the simulator, we find that the personal level remains constant throughout the time of a hundred.

The entire project is presented as an effort to move the work from one warehouse to another, as they explain the model. They started with the remaining work tank full and the full work tank empty. at the end of all experiments Dr. Jamid demonstrates why it is so important for managers to quantify the exact effects of decisions in numbers.

From the end of the chapter we have these important points for Modeling and Simulation: «Model your hunches about the processes t h a t get work done. Use the models in peer interaction t o communicate and refine thinking about how the process works. Use the models t o simulate results. Tune the models against actual results.»

Chapters 8 & 9 reflection

Chapter 8: The Eminent Dr. Rizzoli

**Photo by energepic.com in Pexels. Free license**

In this chapter we see that our main characters are worried about not knowing how to handle the experiment, because it is the first time something like this has been done. They begin to talk and conclude that this is serious work for a consultant. They think that the only person who can solve this is Dr. Hector Rizzoli.

He ran a kind of software engineering laboratory for some U.S. Government agency. they say «I see what you mean. He could be a most usehl consultant for us. As soon as we began talking about running a set of experiments, our Project Management Laboratory, I should have asked you to contact Dr. Rizzoli. I wonder when we could get him here?»

They began to say that he arrives the next day in the afternoon. Mr. T, I suspect that he had kidnapped him by force, but apparently he was not going to visit them on his own feet. But it’s almost a kidnapping because our consultant goes to Latvia and has a stopover in Morovia, but since I came from India he could have some jetlag and be confused.

**Photo by Sheila in Pexels. Free license**

Mr. T and his colleague waited for Dr. Rizzoli, as he was confused he did not know or where he believed he was in Latvia, but Mr. T and his colleague made him dizzy a little with talk so he would not suspect anything. They talked to him about the experiments and he still didn’t realize what was happening. He gave a talk which made him feel satisfied. Then after a few days he began to talk about the experiments that were taking place, this table describes how the equipment is accommodated.

Photo taken from Chapter 8: The Eminent Dr. Rizzoli, Page 76

They begin to talk about how to solve their problem and mention the Software Engineering Institute and a model called Capability Maturity Model. The Software Engineering Institute is an American research and development center, Its activities cover cybersecurity, software assurance, software engineering and acquisition, and component capabilities critical to the Department of Defense.

The Capability Maturity Model is a methodology used to develop and refine an organization’s software development process. The model describes a five-level evolutionary path of increasingly organized and systematically more mature processes. The CMM is similar to ISO 9001. The best thing for them is to be able to implement some model like CMM to be able to better manage the projects and have a better organization.

Chapter 9: Ex-General Markov

**Photo by Alex Andrews in Pexels. Free license**

In this chapter, we see that our characters are conducting interviews to have managers to manage the teams. It happens to belinda to invite the NNL to the interviews, since this would make the decision taken by the three and be faster. since everyone knows about software and how to lead teams.

In the first interview they were conducting the NNL decides to give the interviewee the position, Mr. T is confused that this person had not been talking for more than two minutes, and the leader said he was inside. when they left that interview on the list was Markov who was a general from Morovia.

For Mr. T it was rare for a general to remain in morovia, because everyone had gone to a riverbank, but this general is special, he was one of the most powerful in morovia and knows about software, since he works with that area in the army . This general knows many things, to be a good manager. since under his power many people and budget passed that knew how to organize it. In addition to directing one of the dependencies of morovia.

«The Ex-General Markov and the six product managers who were responsible for delivering prod- ucts to compete directly with Quicken, QuarkXpress, Photo- shop, Painter, Lotus Notes, and PageMill, respectively. Under each product manager was an A-Team, a B-Team, and a C- Team, the three separate units competing to produce the best product fastest.»

Chapters 6 & 7 reflection

Chapter 6: The World’s Greatest Project Manager

Photo by **slon_dot_pics** in **Pexels. Free license**

In this chapter we see that they have to have a good administration to be able to handle all the personnel they need, and there is also talk about Structural Cybernetic Management, is the concrete application of natural cybernetic laws to all types of organizations and institutions created by human beings and to interactions with and within them.

It is very important to know how to manage your staff, because he had two thounsen people and had to do 6 projects, but he also had to choose which ones were the best to be a project manager. If we do not know how to handle our staff we can have many delays in many things, so the importance in the previous chapters of how to choose the right people.

Photo by **pixabay** in **Pexels. Free license**

The essential parts of the manager’s body. «Management involves heart, intestine, soul and nose. guide with the heart. So trust your instinct (trust your hunches), build soul in the organization and develop a bullshit nose.»

He is right, because you have to get completely involved, you have to guide yourself with what you think is right, follow your instinct even though others tell you no, have your organization’s shirt on, identify with it and be able to reject or accept things when you’re doing right or wrong.

Chapter 7: Taking on staff

Photo by **Startup Stock Photos** in **Pexels. Free license**

In this chapter he begins with Belinda, Webster and Mr. T, doing interviews for project manager, as in the previous chapter they were in the search for 8 project manager. The first interview they had was a complete failure, since the interviewee was talking about a movie saying that in order to be like a good manager you needed to be like that main actor, who really did nothing but supervise and review the operation, never He got his hands dirty.

For the second candidate Belinda shortly after arriving, he commented that he was one of those indicated, how his office was organized and why before entering with him, he asked close people how he was and everyone spoke wonders about him. his office had many things attached to the wall in which you could see different things they were working on and he also involved everyone who was with him to match his ideas.

On the first day they did 30 interviews, but these were divided into two: Those belinda said hired interrupting the candidate or in which they let the interviewee talk to see if they hired him or not. They only have five good candidates.

From the Journal of Mr. T we can recapture this metaphor. «By the time the battle begins, the manager’s real work is already done.» It is very important to know that this is related to a battle rather than a manager, but that has to do with this. A general in a battle supervises and analyzes the entire operation, a manager does the same, but each one acts in different ways.

We have a number of important points that mention for Interviews and Hiring:
«Hiring involves all t h e managerial body parts: heart, soul, nose, and gut (but mostly gut).
Don’t try to do it alone- two guts are more than twice as good as one.
Ask new hires t o underta one project a t exactly the level of competence they have already proved, t o defer real stretch goals till the next time.
Ask for pointers: The person you are most inclined t or hire may well know of other good possibilities.
Listen more than you speak.»

Chapters 3, 4 & 5 reflection

Chapter 3

Photo by fauxels in **Pexels**. License Can be used for free.

This chapter goes more about the work that was offered, where Morovia is, because it leaves you with the doubt of where this socialist country, that is located in the south of Italy. There is also talk of the contract that is being offered to Mr. T, which is a two-year contract and payments are ready to be delivered if he accepts. This contract specifies things that you have to do in your work. in other words are your terms and conditions that you have to complete.

Photo by **Rodolfo Clix** in **Pexels**. License Can be used for free.

He begins to see that they have good engineers and are well trained and it seems all excellent, because he believed that they did not have the engineers for this project. but what they explain to him is that morovia has a good education. Despite being a third-world post-Communist country, their people have many skills. to which they answer «The Communist world did some things badly and some things well. What it did badly was to make the centrally planned markets work so goods and services could find their way to where they were needed. What it did well was education». English-language skills are important so everyone knows how to write, read and speak in English.

With this they want to show that their engineers with the ability to develop the 6 projects they have for these two years. What they really want to do for projects is to experience how their workers would behave under certain circumstances. This puts him in doubt as to how he will solve all this, since he will not need everyone. for this they tell him that «You have got all of Morovia to play with». This would be «The world’s first Project Management Laboratory»

Chapter 4

Photo by **Startup Stock Photos** in **Pexels**. License Can be used for free.

This chapter is named the CD-ROM plant, in this chapter Lahksa gives Mr. T a small book, which is a personal book from him, he is still surprised by how she works, why she achieves many things, one of them was Get your last name. Lahksa wants him to apply what he has learned in these years. Something very important that has been mentioned to us from the beginning are: get the rigth people, match them to the rigth jobs, keep them motivated and help their teams to jell and stay jelled. All the rest is administrativia.

«We’ll need a pressing plant for CD-ROMs. Attached to the rear of the plant will be the packaging facility, shrink-wrapping,manual insertion, loading docks, and so on. As you can see,». Pensaron que por tener los CD-ROM esto no iba a marchar como ellos lo esperaban. ya que toda la operacion cae en las manos de Mr. T. El no sabia cuanto tiempo podia durar este proyecto, por lo que el decia que iba a durar semanas, pero no esfecificaba cuantas semanas y llego a un acuerdo de 10 semanas para poder completarlo.

Institute of Electrical and Electronics Engineers https://www.ieee.org/

«He supposed he had achieved sufficient prominence in the field so that there would be a little capsule about him at the time of his death, published perhaps in IEEE Software or in the Annals of the History of Computing».

It is important to know about the IEEE software, the mission is to build the community of leading and future software practitioners. The magazine delivers reliable, useful, leading-edge software development information to keep engineers and managers abreast of rapid technology change. The authority on translating software theory into practice, the magazine positions itself between pure research and pure practice, transferring ideas, methods, and experiences among researchers and engineers. We can find more about IEEE software here.

The Annals of the History of Computing is a quarterly peer-reviewed academic journal published by the IEEE Computer Society that covers the history of computing, computer science, and computer hardware. We can find more about The annals of the History of Computing here.

**The Deadline: A Novel About Project Management, taked from the end** of **Chapter 4**

Chapter 5

Photo by **Miguel Á. Padriñán** in **Pexels**. License Can be used for free.

This chapter is named NNL, this chapter talks more about who is the national noble leader, and what are his aspirations. It all starts when Mr. T has an appointment with the NNL, he was nervous because he didn’t know what this could be about. When he arrived at the place of his appointment, the guards asked who he was, he introduces himself and they let him pass, once inside this building a person shows up with him and tells him to accompany him to take him with the NNL.

After a moment of waiting, the NNL shows up and they start chatting, but I didn’t know what this was about. The talk begins to flow and little by little they begin to know each other a little better. They get coke and some small cupcakes, apparently it is what the NNL likes the most. After the talk Mr. T, asks how he came was that he came to the power of Morovia, and the NNL confesses that he bought Morovia, because he was tired of always denying his ideas, saying that he would not be able to. This leads him to want to be like a tyrant and buy this country. The NNL was previously in the software industry, but the negativity of people made it do this.

**The Deadline: A Novel About Project Management,** **taked from the end** **of **Chapter** 5**

Economics of Software Engineering

Economic Engineering

Engineering economics is the application of economic techniques to the evaluation of design and engineering alternatives. The role of engineering economics is to assess the appropriateness of a given project, estimate its value, and justify it from an engineering standpoint.

Engineering Economy involves formulating, estimating, and evaluating the economic outcomes when alternatives to accomplish a defined purpose are available.

Engineering economics quantifies the benefits and costs associating with engineering projects to determine if they save enough money to warrant their capital investments.

General concepts

Efficiency: Efficiency of a system is generally defined as the ratio of its output to input. The efficiency can be classified into technical efficiency and economic efficiency.

Technical efficiency: It is the ratio of the output to input of a physical system. The physical system may be a diesel engine, a machine working in a shop floor, a furnace, etc. (Technical efficiency (%) = Output/ Input × 100)

Economic efficiency: Economic efficiency is the ratio of output to input of a business system. (Economic efficiency (%) = Output/Input × 100 = Worth/Cost × 100)

Interest: Money paid for the use of money

Investment: Is an asset or item acquired with the goal of generating income or appreciation. (Interest = Current Value – Original Amount)

Loan: Is money, property, or other material goods given to another party in exchange for future repayment of the loan value or principal amount, along with interest or finance charges. (Interest = Current Total Owed – Original Amount)

Interest Rate: Interest paid per unit time. (Interest Rate = Interest paid per unit time / Original Amount)

Rate of Return (ROR): Interest accumulated per unit time. (ROR = Interest accumulated per unit time / Original Amount)

Time Value of Money (TVM): Is the money available at the present time is worth more than the identical sum in the future due to its potential earning capacity.

Present Value (PV): Is the current value of a future sum of money or stream of cash flows given a specified rate of return.

Future Value (FV): Is the value of a current asset at a future date based on an assumed rate of growth.

Cash Flow: Is the net amount of cash and cash-equivalents being transferred into and out of a business.

Money value throughout time

The time value of money draws from the idea that rational investors prefer to receive money today rather than the same amount of money in the future because of money’s potential to grow in value over a given period of time. For example, money deposited into a savings account earns a certain interest rate and is therefore said to be compounding in value.

Simple and compound interest

Interest is defined as the cost of borrowing money as in the case of interest charged on a loan balance. Interest can be calculated in two ways, simple interest or compound interest.

Simple interest is calculated on the principal, or original, amount of a loan. Formula: Simple interest = P x i x n; P = principle, i = interest rate and n = term of the load

Compound interest is calculated on the principal amount and also on the accumulated interest of previous periods, and can thus be regarded as “interest on interest.” Formula: Compound interes t= [P(1+i)^n]−P & Compound interest = P[(1+i)^n−1]; P = principle, i = interest rate in percentage terms and n = number of compounding periots of year

Nominal and effective interest rate.

Interest rate is one of the most commonly used phrases in fixed-income investment lexicon. The different types of interest rates, including real, nominal, effective and annual, are distinguished by key economic factors, that can help individuals become smarter consumers and shrewder investors.

Nominal Interest Rate: Is the stated interest rate of a bond or loan, which signifies the actual monetary price borrowers pay lenders to use their money.

Effective Interest Rate: Investors and borrowers should also be aware of the effective interest rate, which takes the concept of compounding into account. «Compounding is the process in which an asset’s earnings.»