1. ©2010 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies. Building a Comprehensive Software Product Line Cost Model Andy Nolan BSc Hons, CEng, FBCS, CITP Chief of Software improvement – The Software Centre of Excellence Andy Nolan BSc Hons, CEng, FBCS, CITP Chief of Software improvement – The Software Centre of Excellence

2. Rolls-Royce data 2 Engine Control Systems Certification evidence cannot be easily generated centrally but must be gathered on each project instance, during system integration and integration with the hardware Gathering this evidence, which can be over 50% of the Control Systems project’s total cost, has to be incurred on each configured project instance. Projects are typically low volume and are individually configured for their application. Electronic Engine Controller The control system is fundamental to the certification of the engine and Airframe. The Control system software is classed as safety critical

3. Rolls-Royce data 3 0% 199019952000200520102015 Size (Functionality) Source Lines of Code The demand for software functionality is growing Functional Growth between 4% and 10%/year AND a growing legacy of obsolete platform requiring refresh

4. Rolls-Royce data 4 Process Improvement will soon end EEC Control System Software Cost per Function Relative to"Baseline" 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 19941996199820002002200420062008201020122014 Cost Per Function Relative to "baseline" Evolution has halved the costs of our projects. Process refinement may be reaching its natural limits. The next improvements will be in product design

5. Rolls-Royce data 5 guide the Business - to estimate business level cash flow and benefits guide the Project – when to adopt, when to clone and own, when to say “No” guide the Architects – select the right assets & the right variation mechanisms Inputs Experience COCOMO SIMPLECO-PL-MO Rolls-Royce Asset Data Rolls-Royce Process Data Rolls-Royce Past Project Data

6. Rolls-Royce data 6 COCOMO – The Development Environment Relative Productivity BaselineProject 1Project 2Project 3Project 4Project 5Project 6Project 7Project 8Project 9Project 10 Project Relative Productivity SITE – organisati on sites TEAM – team cohesion PREC – Preceden ce (Novelty) PMAT Process Maturity Experienc e (APEX, PLEX & LTEX RESL Risk and Architecture result ion TOOL Capability REVL Requirements Volatility You do not necessarily need products in your Product Line to add value to the business

7. Rolls-Royce data 7 Overview of the Model Factors for asset “value” rather than size Factors for safety critical processes and verification performed by each project The additional Product Line development costs (CO-PL-MO) The organisational overheads to govern PL and train the business Disruption to the “environment” (CO-CO-MO) Only relative benefits used Number of deployments

8. Rolls-Royce data 8 Business Model Outputs PL Benefit Cross Over Point PL DevelopP1P2P3P4P5P6P7P8P9P10 Cumulative $$€ Traditional Cumulative$M Product Line $M

9. Rolls-Royce data 9 Asset Management In some cases, it may be more economical to clone and own an asset rather than use a Product Line option In some cases, there is no overall benefit from developing a Product Line Asset

10. Rolls-Royce data 10 In conclusion If you do not have a cost model of your Product Line – then make one! Despite some people’s beliefs, they are relatively easy to build The best solution is often counter intuitive - don’t rely on subjectivity (alone) Data makes decision making and persuasion very easy

11. ©2010 Rolls-Royce plc The information in this document is the property of Rolls-Royce plc and may not be copied or communicated to a third party, or used for any purpose other than that for which it is supplied without the express written consent of Rolls-Royce plc. This information is given in good faith based upon the latest information available to Rolls-Royce plc, no warranty or representation is given concerning such information, which must not be taken as establishing any contractual or other commitment binding upon Rolls-Royce plc or any of its subsidiary or associated companies. Back u slides

12. Rolls-Royce data 12 Some observations from the model You must select assets based on their value rather than size. Not every assets will benefit from being made into a Product Line Doing nothing is still expensive in a safety critical world (verification of the asset in situ). You do not need products in your Product Line in order to add value! Introducing a Product Line strategy "disturbs" the organisation – factor for it

13. Rolls-Royce data 13 Estimate & Plan Project A model is at the heart of a business Monitor & Control Project Improve capability Set Project Goals & Targets Business Goals Understand Capability Benchmark Capability Do you know what you are capable of achieving? Do you know if you can meet your business goals? Do you know what is important and what to monitor? Do you know what to improve?

14. Rolls-Royce data 14 Our philosophy New New Product Development The costs to start with a blank sheet of paper Traditional What the project would have cost had we not used a Product Line (some clone and own) Product Line Cost of the project based on Product Line Strategy Cost (Effort) The business case is based on the delta between the Product Line and what the project would have cost From traditional reuse (clone and own) we would have expected some savings

15. Rolls-Royce data 15 Estimated Resource Estimated Resource Profiles (FTE) Year 1Year 2Year 3Year 4Year 5Year 6Year 7Year 8Year 9Year 10Year 11Year 12Year 13 Year 14 Year 15Year 16Year 17Year 18 Resource (Engineers) PL Deployment PL Asset Development & Overheads Traditional Project