20.6 Near Breakeven Point


18.4 Software Capability Maturity Model

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 Software Capability Maturity Model . The formula is software size multiplied by 10.2544, less the inspection hours times 99 and less the test hours times 9. (0.2544 is 50% of 0.5088, which is due to a 100% productivity increase associated with Level 3 compliance.) Our total life cycle cost for using the Software Capability Maturity Model is 14,869 hours.

Let's use our productivity model to determine the new productivity of using the Software Capability Maturity Model . The formula is software size divided by the total life cycle costs of the Software Capability Maturity Model . Divide 10,000 by 14,869, and the new productivity of the Software Capability Maturity Model is 0.67.

Let's determine the difference between the productivity of testing and the productivity of the Software Capability Maturity Model . The formula is old productivity of software testing divided by new productivity of the Software Capability Maturity Model . Divide 0.22 by 0.67. The difference between the productivity of testing and the new productivity of the Software Capability Maturity Model is 0.33.

The special, new, or additional costs that are required consist of process, product, preparation, assessment, and inspection costs. The special costs that are necessary to help produce 10,000 lines of code are $56,100, $117,600, $36,800, $30,100, and $70,833, respectively. This totals $311,433 to introduce the Software Capability Maturity Model as a SPI method. Table 35 illustrates the breakeven point of the Software Capability Maturity Model .

Table 35: Breakeven Point of Software Capability Maturity Model

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 (SW-CMM )

14,869

New Productivity (SW-CMM )

0.67

Productivity Difference (Testing/SW-CMM )

0.33

Special Costs (SW-CMM )

$311,433

Breakeven Point (SW-CMM )

$464,616

Breakeven Point After Project Start (SW-CMM )

383 Hours

Now we are ready to determine the breakeven point of using the Software Capability Maturity Model to produce 10,000 lines of code. Divide the special costs of $311,433 by one less the productivity difference of 0.33. The breakeven point of using the Software Capability Maturity Model is $464,616.

Finally, let's put the breakeven point of the Software Capability Maturity Model into proper perspective. Subtract the special costs of $311,433 from the breakeven point of $464,616, 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 $311,433 will be recovered in 383 hours after project start. This is less than three months.




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

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