Chapter 21: Future of Software Process Improvement


18.5 ISO 9001

Let's use our total life cycle cost model to determine the cost of developing 10,000 lines of code using testing. The formula is software size divided by 10.51, less the test hours times nine. Our total life cycle cost for using software testing alone is 45,100 hours.

Let's use our productivity model to determine the old productivity of using testing. The formula is software size divided by the total life cycle costs of testing. Divide 10,000 by 45,100, and the old productivity of testing is 0.22.

Let's determine the total life cycle cost of analyzing, designing, and developing 10,000 lines of code using ISO 9001. The formula is software size multiplied by 10.442656, less the test hours times nine. (0.442656 is 87% of 0.5088, which is due to a 13% productivity increase associated with using ISO 9001.) Our total life cycle cost for using ISO 9001 is 44,397 hours. However, there is also a 15% increase in software quality due to using ISO 9001. This lowers our software maintenance hours by 4,995. So, our adjusted total life cycle cost for using ISO 9001 is 39,402 hours.

Let's use our productivity model to determine the new productivity of using ISO 9001. The formula is software size divided by the total life cycle costs of ISO 9001. Divide 10,000 by 39,402, and the new productivity of ISO 9001 is 0.25.

Let's determine the difference between the old productivity of software testing and the new productivity of ISO 9001. The formula is old productivity of software testing divided by new productivity of ISO 9001. Divide 0.22 by 0.25. The difference between the old productivity of software testing and the new productivity of ISO 9001 is 0.87.

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. Table 36 illustrates the breakeven point of ISO 9001.

Table 36: Breakeven Point of ISO 9001

SPI Method

Benefits/Costs

Software Size

10,000

Total Life Cycle Cost Hours (Testing)

45,100

Old Productivity (Testing)

0.22

Total Life Cycle Cost (ISO 9001)

39,402

New Productivity (ISO 9001)

0.25

Productivity Difference (Testing/ISO 9001)

0.87

Special Costs (ISO 9001)

$173,000

Breakeven Point (ISO 9001)

$1,369,206

Breakeven Point After Project Start (ISO 9001)

2,991 Hours

Now we are ready to determine the breakeven point of using ISO 9001 to help produce 10,000 lines of code. Divide the special costs of $173,000 by one less the productivity difference of 0.87. The breakeven point of using ISO 9001 to help produce 10,000 lines of code is $1,369,206.

Finally, let's put the breakeven point of ISO 9001 into proper perspective. Subtract the special costs of $173,000 from the breakeven point of $1,369,206, and divide the results by 400. (First divide by 100, which converts dollars into hours, and then divide by 4, which converts staff hours into elapsed or calendar time). This final manipulation tells us that the special costs of $173,000 will be recovered in 2,991 hours after project start. This is 1.5 years .




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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