8.2 PSPSM Benefit Methodology

7.4 Inspection ROI% Methodology

The ROI% methodology for the Software Inspection Process is a procedure to measure, quantify, and analyze the money returned. The ratio of net benefits to costs for the Software Inspection Process is high due to vast software maintenance cost savings. ROI% is the money earned from using the Software Inspection Process to create a new and improved software process. Its ROI% methodology is a two-part process that consists of estimating the benefit to cost ratio using net benefits versus gross benefits. Its benefit methodology consists of combining the net or adjusted benefits together with the special costs using the B/CR formula. Key elements include subtracting the special costs from the gross benefits to form net benefits. These are used to form a better picture of the magnitude of the benefits to the costs for the Software Inspection Process. (B/CR and ROI% are similar in that they are used to compare benefits to costs. However, B/CR uses gross benefits, while ROI% uses net benefits. Net benefits do not contain the implementation costs. Therefore, ROI% lowers the magnitude of benefits to costs versus using B/CR. The objective of using ROI% versus B/CR is to begin forming an accurate picture of the actual benefits of using a software process improvement method.) Figure 29 illustrates the ROI% methodology for the Software Inspection Process.

Figure 29: Return on Investment Percent Methodology for Software Inspection Process

Estimate adjusted benefits for inspection: The objective of this activity is to validate the benefits of the Software Inspection Process by removing its costs. This substep includes: subtract special costs from benefits for inspection.

Estimate adjusted benefit to cost ratio for inspection: The objective of this activity is to measure the magnitude of the net benefits to the costs for implementing the Software Inspection Process. This substep includes: divide adjusted benefits by special costs for inspection.