The benefits of using the Software Capability Maturity Model to help produce 10,000 lines of code are $3,023,064. This was obtained by subtracting $1,486,933 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 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.
The development cost of $254,400, testing cost of $195,000, and maintenance cost of $966,700 were not included as special 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 the Software Capability Maturity Model to help produce 10,000 lines of code. Divide the benefits of $3,023,064 by the costs of $311,433 for the Software Capability Maturity Model . The B/CR of using the Software Capability Maturity Model to help produce 10,000 lines of code is 10:1.
Let's determine the adjusted benefits of the Software Capability Maturity Model to help produce 10,000 lines of code. Subtract $311,433 in Software Capability Maturity Model costs from $3,023,064 in gross Software Capability Maturity Model benefits. The result is $2,711,631 in adjusted benefits.
Let's determine the ROI of the Software Capability Maturity Model to help produce 10,000 lines of code. Divide the adjusted benefits of $2,711,631 by the costs of $311,433 for the Software Capability Maturity Model . Multiply the result by 100%. The ROI of using the Software Capability Maturity Model to help produce 10,000 lines of code is 871%. Table 29 illustrates the NPV of the Software Capability Maturity Model .
SPI Method | Benefits/Costs |
---|---|
SW-CMM Benefits (Gross) | $3,023,064 |
SW-CMM Costs | $311,433 |
SW-CMM B/CR | 10:1 |
SW-CMM Benefits (Adjusted) | $2,711,631 |
SW-CMM ROI | 871% |
SW-CMM Benefits (NPV) | $2,368,650 |
SW-CMM B/CR (NPV) | 8:1 |
SW-CMM Benefits (Adjusted/NPV) | $2,057,216 |
SW-CMM ROI (NPV) | 661% |
Now we are ready to determine the NPV of the gross benefits of the Software Capability Maturity Model to produce 10,000 lines of code. Divide the gross benefits of $3,023,064 by the devaluation rate of 1.27628156. The NPV of the gross benefits of using the Software Capability Maturity Model to help produce 10,000 lines of code is $2,368,650.
Now let's determine the B/CR of the Software Capability Maturity Model using the NPV of the gross benefits. Divide the NPV of the gross benefits of $2,368,650 by the costs of $311,433 for the Software Capability Maturity Model . The B/CR of the Software Capability Maturity Model to produce 10,000 lines of code is 8:1 using the NPV of the gross benefits.
Now let's determine the adjusted benefits of the Software Capability Maturity Model using the NPV of the gross benefits. Subtract $311,433 in Software Capability Maturity Model costs from $2,368,650, which is the NPV of the gross benefits. The result is $2,057,216 in adjusted benefits.
Finally, let's determine the ROI of the Software Capability Maturity Model to produce 10,000 lines of code using adjusted benefits. Divide the adjusted benefits of $2,057,216 by the costs of $311,433 for the Software Capability Maturity Model . Multiply the result by 100%. The ROI of using the Software Capability Maturity Model to help produce 10,000 lines of code is 661% using NPV.