Some people consider the life cycle to be spiral, in which we constantly cycle through the phases at different levels of details as shown in figure. The spiral model is a realistic approach to the development of large-scale systems and software in the light of risks involved. Spiral model demand a direct consideration of technical risks at all stages of the project and if, properly applied, should reduce risks before they become problematic. This Spiral model is a combination of iterative development process model and waterfall model with a very high emphasis on risk analysis. ... It allows incremental releases of the product or incremental refinement through each iteration around the spiral
The life cycle can also be thought of as a circular process in which the end of the useful life of one system leads to the beginning of another project that will develop a new version or replace an existing system altogether. The concept of operations is the product of the first iteration, and the requirement are the principal product of the second. In the third iterations, system development produces the design, and the fourth enables testing. With each iteration the risk analysis weights different alternatives in light of the requirements and constraints and prototyping verifies feasibility or desirability before a particular alternative is chosen. When risks are identified the project manager must decide how to eliminate or minimize the risk. If your management demands fixed-budget development (generally a bad idea), the spiral can be a problem : as each circular cycle (planning, analysis, design and implementation) is completed, project cost is revisited and revised.
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