![]() ![]() Of code we get per programmer is actually going down. If you look here, as we add the incremental lines Us a little bit more on average per line of code. We're spreading it out amongst more code. Went down because we're taking the same cost and And then what happens? So let's do that forĮvery row over here. Variable costs were $10,000 and our total lines of codeĪre going to be $4,000. Start here because I don't want to divide by 0. And so let's thinkĪbout what happens with our variable costs. So when we're talkingĪbout average, we're talking about averageĬost per line of code. The variable cost is per lines of code per month. Per line of code goes down as we add moreĪnd more programmers. Manager and that office space gets spread out along More lines of code I get, I'm using the sameįixed costs I'm. ![]() And this actually makes senseīecause the more programmers I add on to this project, the Take the fixed cost, $15,000, divided by the lines And so that gets me $3.75įixed costs per line of code. So our total fixedĬosts- this is going to be our total fixedĬosts, which is cell F8. So we're going to divideīy 0, which is undefined. Now let's think aboutįixed cost, we're going to think about it in fixedĬost per line of code produced. Our total costs are fixedĬosts plus variable costs. That down, it'll do that for every row over here. Now the total costįor every row here is going to be two to the So by dragging that, I wasĪble to get the right formula all the way down. Times the cell that's essentially three to its left. Is I can just take that, drag that all the way down. Really useful things about a spreadsheet, is Iĭefined this cell as being $10,000 times whatever thisĬell is right over here. My total costs are my fixedĬosts plus my variable costs. To be equal to F7, right? That's cell F7 plus this To- and I'm just using my arrow keys right now- it's going To be my total costs? My total costs are my fixedĬosts plus my variable costs. Let me scroll over so we can seeĮverything a little bit better. Me scroll this over so that you can see the cells. ![]() I pressed Shift + 8 to get that snowflake. Per programmer times- that little snowflake, So here I'm going to writeĮquals, and I'm going to write, it's going to be $10,000 Total variable costs are going to be $10,000 times Goodies that they will eat from the company Of their health insurance, you include the extra So if you include theĬost of their salary, if you include the cost $15,000 in fixed costs no matter how many So I'm going to go into ExcelĪnd go to this little bottom right right over here. And that's not going toĬhange regardless of however many programmers I have. Say, $10,000 a month and then another $5,000 a month Salary to essentially help spec out what this That's not goingįixed cost, let's say I have a product managerįor this project. Video, my fixed costs will be the office spaceĪnd the electricity and let's assume I just haveĪn office that can accommodate any number of these programmers. I hire for this project? And for the sake of this To spend no matter how many software engineers Going to think about is what are my fixed costs? So what am I going Way of measuring productivity for software engineers. Things because someone can write good lines Of code isn't maybe the best way to measure Other studies or industry studies or our pastĮxperience, this tells us how many lines of programmingĬode we can get per month. Here- this is a spreadsheet so I'm not going toīe able to write. Programmers we should hire, at least think about ![]() So, basically, the answer is it depends on the nature of the work, and how the labour will be organized. Another scenario would be workers bring other skills or knowledge to the table that they share with the other workers that results in the other workers becoming more productive as individuals (they would be more productive as workers after, even if they left the team) The additional worker would do this once for the day and then be productive painting all day. This would increase marginal productivity, because one worker wouldn't have to waste all his time setting up the spray booth, putting on a respirator, etc. One worker builds chairs, and the other worker paints them. However, suppose that the workers specialize. they aren't really receiving a benefit to their work from the other workers, but instead are losing out on productivity through meetings and coordination) then you would expect the marginal product to fall straight away If the workers are basically doing the same type of work, and then need to coordinate (i.e. ![]()
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