19.1 Analysis of Costs


16.5 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.

Let's 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.

However, the benefits of ISO 9001 must be adjusted, by first removing the costs. That is, the costs of inserting ISO 9001 as a SPI method must first be removed from the gross ISO 9001 benefits. We will call these the adjusted benefits of ISO 9001. Subtract $173,000 in ISO 9001 costs from $569,841 in gross ISO 9001 benefits, to arrive at $396,841 in adjusted benefits. Table 24 illustrates the ROI of ISO 9001.

Table 24: ROI of ISO 9001

SPI Method

Benefits/Costs

ISO 9001 Benefits (Gross)

$569,841

ISO 9001 Costs

$173,000

ISO 9001 B/CR

3:1

ISO 9001 Benefits (Adjusted)

$396,841

ROI

229%

Now we are ready to determine the ROI of ISO 9001 to help produce 10,000 lines of code. Divide the adjusted benefits of $396,841 by the costs of $173,000 for ISO 9001. Multiply the result by 100%. The ROI of using ISO 9001 to help produce 10,000 lines of code is 229%.




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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