9.5 TSPSM NPV Methodology

The return on investment (ROI) methodology for the Team Software Process ^SM is a procedure to measure, quantify, and analyze its economic value. The Team Software Process ^SM is a project, quality, and life cycle management method for large groups of software engineers . ROI is the amount of money gained , returned, or earned above the resources spent on the Team Software Process ^SM . Its ROI methodology is a six-part process that consists of estimating costs, benefits, benefit/cost ratio (B/CR), ROI%, net present value (NPV), and breakeven point. The ROI methodology for the Team Software Process ^SM has unique elements for estimating costs, benefits, and B/CR. Its cost, benefit, B/CR, ROI%, NPV, and breakeven point methodologies are rather simple. Key elements include its software cost model and total life cycle cost model, which are used to estimate the costs and benefits of using the Team Software Process ^SM . Figure 39 illustrates the ROI methodology for the Team Software Process ^SM .

Figure 39: ROI Methodology for Team Software Process ^SM

9.1 TSP ^SM Cost Methodology

The cost methodology for the Team Software Process ^SM is a procedure to measure, quantify, and analyze the amount of money spent. The Team Software Process ^SM incurs cost for training, but results in one of the lowest overall software maintenance costs. Cost is the economic consequence of using the Team Software Process ^SM to create a new and improved software process. Its cost methodology is a two-part process that consists of estimating training and software costs. The cost methodology for the Team Software Process ^SM has unique elements for software development costs. Its cost methodology consists of a detailed accounting of training costs and the application of a rather simple software cost model. Key elements include the custom software effort model, which is based on historical productivity data. These are used to approximate the complete costs of software development, in conjunction with the Team Software Process ^SM . Figure 40 illustrates the cost methodology for the Team Software Process ^SM .

Figure 40: Cost Methodology for Team Software Process ^SM

Estimate training cost for TSP ^SM : The objective of this activity is to estimate all of the training costs for TSP ^SM . This substep includes: estimate training time cost for TSP ^SM , estimate travel cost for TSP ^SM , and add training time, travel, and Personal Software Process ^SM training cost for TSP ^SM .

Estimate software cost for TSP ^SM : The objective of this activity is to estimate the costs of software analysis, design, implementation, and test. This substep includes: divide software size by productivity for TSP ^SM .