Chapter 12: Capability Maturity Model Integration ROI Methodology

11.3 ISO 9001 B/CR Methodology

The B/CR methodology for ISO 9001 is a procedure to measure, quantify, and analyze the ratio of benefits to costs. The ratio of benefits to costs for ISO 9001 is moderate because of productivity increases and reductions in software maintenance costs. A large part of the benefits are due to reported productivity increases of 15% for ISO 9001. A moderate part of the benefits are derived from increased quality. The quality benefits of using ISO 9001 are reported to be as high as 13%. B/CR is the economic magnitude of using ISO 9001 to create a new and improved software process. Its B/CR methodology is a two-part process that consists of estimating special costs and the B/CR. Its benefit methodology consists of combining the benefits together with the special costs using a simple B/CR formula. Key elements include isolating the special, new, or additional costs and using the output of earlier total life cycle cost models. These are used to form an early picture of the economic value of ISO 9001. The objective is to establish a methodology for evaluating ROI. Personalized knowledge, study, or derivation of additional ISO 9001 benefits may increase B/CR, ROI%, NPV, and breakeven point. Figure 56 illustrates the B/CR methodology for ISO 9001.

Figure 56: B/CR Methodology for ISO 9001

Estimate special costs for ISO 9001: The objective of this activity is to identify and separate the costs associated with ISO 9001 from common software development costs. This substep includes: add process, product, preparation, and audit costs for ISO 9001.

Estimate B/CR for ISO 9001: The objective of this activity is to measure the magnitude of the benefits to the costs for implementing ISO 9001. This substep includes: divide benefits by special costs for ISO 9001.