Sales & Profit

Maintenance cost (1/3)

Total Operational Expense = $ 210,000 Maintenance cost = 60% of OE = $123,000 (app) Change in user requirements and data formats are one of the major components

Maintenance cost (2/3)

Cost Factor Consulting fee (Expert Opinion cost) Preliminary Research (Analogy Cost) Infrastructure cost (Parametric cost) Operating Expense 15,000 15,000 35,000 % of OE in Maintenance 30% 0% 60% Amount ($) 4500 0 21000

Development & Testing (Engineering cost)

Administrative cost (Actual cost) On-going training and support (Engineering cost) Implementation cost (Actual cost) Other cost Total

60,000
10,000 36,000 24,000 15000 2,10,000

60%
75% 70% 70% 80%

36000
7500 25200 16800 12000 123000

% of total Maintenance cost

Consulting fee (Expert Opinion cost)

0%

10%
14%

4%

Preliminary Research (Analogy Cost)

17%
Infrastructure cost (Parametric cost)

20%

Development & Testing (Engineering cost)

29%

Administrative cost (Actual cost) On-going training and support (Engineering cost) Implementation cost (Actual cost) Other cost

6%

Maintenance cost (3/3)

Component Change in data formats Changes in user requirement Hardware changes % of maintenance cost 17% 43% 6% Amount ($)

20910
52890 7380 11070 14760 7380 4920

Routine debugging
Emergency Fixes Documentation Efficiency Improvement Others

9%
12% 6% 4% 3%

3690
123,000

Total