20.5 High Net Present Value


18.3 Team Software Process SM

Let's use our total life cycle cost model to determine the cost of developing 10,000 lines of code using software testing. The formula is software size multiplied by 10.51, less the test hours times nine. Our total life cycle cost for using software testing alone is 45,100 hours.

Let's use our productivity model to determine the old productivity of using testing. The formula is software size divided by the total life cycle costs of testing. Divide 10,000 by 45,100, and the old productivity of testing is 0.22.

Let's determine the total life cycle cost of developing 10,000 lines of code using the Team Software Process SM . The formula is software size divided by 5.9347. Our total life cycle cost for using the Team Software Process SM is 1,685 hours.

Let's use our productivity model to determine the new productivity of using the Team Software Process SM . The formula is software size divided by the total life cycle costs of the Team Software Process SM . Divide 10,000 by 1,685, and the new productivity of the Team Software Process SM is 5.93.

Let's determine the difference between the old productivity of testing and the new productivity of the Team Software Process SM . The formula is old productivity of software testing divided by new productivity of the Team Software Process SM . Divide 0.22 by 5.93. The difference between the old productivity of software testing and the new productivity of the Team Software Process SM is 0.04.

The special, new, or additional costs that are required to introduce the Team Software Process SM consist of only the training cost. The training cost to use the Team Software Process SM to help produce 10,000 lines of code is $148,400. Table 34 illustrates the breakeven point of the Team Software Process SM .

Table 34: Breakeven Point of Team Software Process S M

SPI Method

Benefits/Costs

Software Size

10,000

Total Life Cycle Cost Hours (Testing)

45,100

Old Productivity (Testing)

0.22

Total Life Cycle Cost (TSP SM )

1,685

New Productivity (TSP SM )

5.93

Productivity Difference (Testing/TSP SM )

0.04

Special Costs (TSP SM )

$148,400

Breakeven Point (TSP SM )

$154,160

Breakeven Point After Project Start (TSP SM )

14 Hours

Now we're ready to determine the breakeven point of using the Team Software Process SM to help produce 10,000 lines of code. Divide the special costs of $148,400 by one less the productivity difference of 0.04. The breakeven point of using Team Software Process SM to help produce 10,000 lines of code is $154,160.

Finally, let's put the breakeven point of the Team Software Process SM into proper perspective. Subtract the special costs of $148,400 from the breakeven point of $154,160, and divide the results by 400. (First divide by 100, which converts dollars into hours, and then divide by 4, which converts staff hours into elapsed or calendar time). This final manipulation tells us that the special costs of $148,400 will be recovered in 14 hours after project start. This is less than two days.

The breakeven point of using the Team Software Process SM can be much farther out into the future. There are half a dozen or more ancillary training courses that drive the costs up much higher.




ROI of Software Process Improvement. Metrics for Project Managers and Software Engineers
ROI of Software Process Improvement: Metrics for Project Managers and Software Engineers
ISBN: 193215924X
EAN: 2147483647
Year: 2004
Pages: 145

flylib.com © 2008-2017.
If you may any questions please contact us: flylib@qtcs.net