8.4 PSPSM ROI Methodology

7.6 Inspection Breakeven Point Methodology

The breakeven point methodology for the Software Inspection Process is a procedure to determine when benefits exceed costs. The benefits for the Software Inspection Process rapidly exceed its cost due to reduced maintenance costs. Breakeven point is the value at which the benefits overtake the costs for using the Software Inspection Process. 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 software process improvement methods . These are used to determine the point when the benefits overtake the costs. Figure 31 illustrates the breakeven point methodology for the Software Inspection Process.

Figure 31: Breakeven Point Methodology for Software Inspection Process

Estimate testing productivity for inspection: 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 inspection.

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

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

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