Cost & Benefit Analysis Executive Overview David F. Rico
2 Table of Contents Methodology Breakeven Point Analysis Actual Costs & Benefits Normalized Costs & Benefits Normalized Benefits Category Costs & Benefits Summary of Costs & Benefits Conclusion
Methodology
4 Origin of Cost & Benefit Analysis Software Process Improvement (SPI) Study –Using Cost Benefit Analyses to Develop a Pluralistic Methodology for Selecting from Multiple Prescriptive Software Process Improvement (SPI) Strategies –David F. Rico (April 30, 1999) Full text, graphics, data, spreadsheets, and algorithms available online –
5 Analytical Methodology
6 Defect Removal Model
7 Return-on-Investment (ROI) Model sm Personal Software Process and PSP are service marks of Carnegie Mellon University.
8 Rico’s Inspection Cost Model
9 PSP & Inspection Cost Models
10 Software Cost Models
11 Rico’s Breakeven Point Model
Breakeven Point Analysis
13 Breakeven Point Models
14 Test vs. Ad Hoc
15 Inspection vs. Ad Hoc
16 PSP vs. Ad Hoc
17 Inspection vs. Test
18 PSP vs. Test
19 PSP vs. Inspection
Actual Costs & Benefits
21 Overall ® Capability Maturity Model and CMM are registered in the U.S. Patent and Trademark Office.
22 Personal Software Process (PSP)
23 Clean Room Methodology
24 Software Reuse
25 Software Defect Prevention
26 Software Inspection Process
27 Software Testing
28 Capability Maturity Model (CMM)
29 ISO 9000
Normalized Costs & Benefits
31 Normalized Costs & Benefits
32 Normalized Costs & Benefits
33 Breakeven Hours
34 Training Hours/Person
35 Training Cost/Person
36 Effort (Hours)
37 Cycle Time Reduction
38 Productivity Increase
39 Quality Increase
40 Return-on-Investment (ROI)
Normalized Benefits
42 Normalized Benefits
43 Normalized Benefits
44 Average Benefits
45 Worst Normalized Benefits
46 Worst Normalized Benefits
47 Worst Average Benefits
48 Poorest Normalized Benefits
49 Poorest Normalized Benefits
50 Poorest Average Benefits
Category Costs & Benefits
52 Actual Costs & Benefits
53 Normalized Costs & Benefits
54 Normalized Costs & Benefits
55 Average Costs & Benefits
56 Normalized Benefits
57 Normalized Benefits
58 Average Benefits
59 Worst Normalized Benefits
60 Worst Normalized Benefits
61 Worst Average Benefits
Summary of Costs & Benefits
63 Summary of Alternatives
64 Summary of Worst Alternatives
65 Summary of Poorest Alternatives
66 Summary of Categories
Conclusion
68 PSP Surpasses Competition PSP exhibits astonishing benefits –82:1 cycle time reduction over CMM and ISO 9000 –55:1 productivity increase over CMM and ISO 9000 –30:1 quality increase over CMM and ISO 9000 –258:1 return on investment over CMM and ISO 9000 –1,290:1 return on investment over ordinary approaches CMM and ISO 9000 among worst software process improvement (SPI) approaches CMMi and ISO may perform worse than the Software CMM v1.1 or ISO