Chapter 18: Breakeven Point

15.5 ISO 9001

The benefits of using ISO 9001 to help produce 10,000 lines of code are $569,841. This was obtained by subtracting $3,940,156 in new total life cycle costs from $4,509,997 in old total life cycle costs.

The special, new, or additional costs that are required to use ISO 9001 consist of process, product, preparation, and audit costs. The specials costs that are necessary to produce 10,000 lines of code are $54,600, $56,000, $26,400, and $36,000, respectively. This totals $173,000 to introduce ISO 9001 as a SPI method.

The development cost of $442,656, testing cost of $667,000, and maintenance cost of $2,830,500 were not included as ISO 9001 costs. The development, testing, and maintenance costs either stayed the same or decreased. Had the development, testing, or maintenance costs increased, the differences or the increases would have been included. Table 18 illustrates the B/CR of ISO 9001.

Table 18: B/CR of ISO 9001

SPI Method	Benefits/Costs
ISO 9001 Benefits	$569,841
ISO 9001 Costs	$173,000
B/CR	3:1

Now we are ready to determine the B/CR of ISO 9001 to help produce 10,000 lines of code. Divide the benefits of $569,841 by the costs of $173,000 for ISO 9001. The B/CR of using ISO 9001 to help produce 10,000 lines of code is 3:1.