12.3 CMMI BCR Methodology


11.5 ISO 9001 NPV Methodology

The NPV methodology for ISO 9001 is a procedure to measure, quantify, and analyze money returned less inflation. The ratio of discounted benefits to costs for ISO 9001 is good due to reduced maintenance costs and minor productivity increases . NPV is the discounted money earned from using ISO 9001 to create a new and improved software process. Its NPV methodology is a three-part process that consists of estimating discounted benefits, special costs, and the B/CR. Its benefit methodology consists of combining the discounted net benefits together with the special costs using the B/CR formula. Key elements include lowering the gross benefits to form the discounted benefits. These are used to form a realistic estimation of the magnitude of the benefits to the costs. (B/CR is a ratio of benefits to costs for objectively analyzing economic value. ROI% is used to avoid overstating the benefits. NPV is a skeptical and even cynical approach to ensure benefits are not overstated. All three of these methods should be used as exhibited by this NPV methodology.) Figure 58 illustrates the NPV methodology for ISO 9001.

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Figure 58: NPV Methodology for ISO 9001

Estimate NPV of benefits for ISO 9001: The objective of this activity is to discount the gross benefits of ISO 9001 based on inflation. This substep includes: divide benefits by devaluation rate for ISO 9001.

Estimate adjusted NPV benefits for ISO 9001: The objective of this activity is to validate the benefits of ISO 9001 by removing its costs. This substep includes: subtract special costs from NPV benefits for ISO 9001.

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




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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