11.4 ISO 9001 ROI Methodology


10.6 SW-CMM Breakeven Point Methodology

The breakeven point methodology for the Software Capability Maturity Model is a procedure to determine when benefits exceed costs. The benefits of the Software Capability Maturity Model 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 Capability Maturity Model . 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. (As indicated earlier, benefits, B/CR, ROI%, NPV, and breakeven point are directly impacted by the use of peer reviews. Rigorous peer reviews improve the economic outlook, while their absence hinders it.) Figure 52 illustrates the breakeven point methodology for the Software Capability Maturity Model .

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Figure 52: Breakeven Point Methodology for Software Capability Maturity Model

Estimate testing productivity for SW-CMM : 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 SW-CMM .

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

Estimate productivity difference for SW-CMM : The objective of this activity is to compare the productivity of software testing to that of SW-CMM . This substep includes: divide test productivity by SW-CMM productivity for SW-CMM .

Estimate cost to productivity difference ratio for SW-CMM : The objective of this activity is to determine when SW-CMM will begin paying for itself. This substep includes: divide special cost by one less productivity difference for SW-CMM .




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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