12.4 CMMI ROI Methodology

11.6 ISO 9001 Breakeven Point Methodology

The breakeven point methodology for ISO 9001 is a procedure to determine when benefits exceed costs. The benefits for ISO 9001 rapidly exceed its cost due to reduced maintenance costs. Breakeven point is the value at which the benefits overtake the costs for using ISO 9001. Its breakeven point methodology is a four-part process that consists of estimating productivity and the cost to productivity difference ratio. Its breakeven point methodology consists of combining costs with productivity difference using the breakeven point formula. Key elements include determining the ratio of productivity for the old and new SPI methods . This is used to determine the point when the benefits overtake the costs. Figure 59 illustrates the breakeven point methodology for ISO 9001.

Figure 59: Breakeven Point Methodology for ISO 9001

Estimate testing productivity for ISO 9001: The objective of this activity is to determine the software productivity associated with using the software testing process. This substep includes: divide software size by total life cycle cost of testing for ISO 9001.

Estimate ISO 9001 productivity for ISO 9001: The objective of this activity is to determine the software productivity associated with using ISO 9001. This substep includes: divide software size by total life cycle cost of ISO 9001 for ISO 9001.

Estimate productivity difference for ISO 9001: The objective of this activity is to compare the productivity of software testing to that of ISO 9001. This substep includes: divide test productivity by ISO 9001 productivity for ISO 9001.

Estimate cost to productivity difference ratio for ISO 9001: The objective of this activity is to determine when ISO 9001 will begin paying for itself. This substep includes: divide special cost by one less productivity difference for ISO 9001.