57: Diseconomy of Scale

The size of the project matters a lot in the diseconomy of scale. In Software Estimation, Steve McConnell talks about estimating projects on different scales and considering important factors. Typically, we talk about economies of scale by saying, “If we build five more factories, the cost per unit we produce will be lower.” However, in software engineering, it’s quite the contrary. When we build larger systems, we significantly increase the costs. That’s why it’s called diseconomy of scale: different factors, such as the cost of communication, increase exponentially.

• Related Note(s):
  • 2e: Elements of a Story;
  • 49: Accidental Complexity;
  • 19c: How to move faster in organizations;
  • 36: Open Feedback Culture;
• Source(s): Software Estimation Book by Steve McConnell