Cost & Benefit Analysis

Executive Overview
David F. Rico

Table of Contents
Methodology Breakeven Point Analysis Actual Costs & Benefits Normalized Costs & Benefits Normalized Benefits Category Costs & Benefits Summary of Costs & Benefits Conclusion
2

Methodology

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

http://davidfrico.com
4

Analytical Methodology
Cost and Benefit Model

Costs and Benefits of Alternative 1

Costs and Benefits of Alternative 2

Costs and Benefits of Alternative n

Cost and Benefit Data

Return-on-Investment Model

Break Even Point Model

Defect Removal Model

Defect Removal Model

Inspection Cost

Testing Cost (10X)

Ad Hoc (100X)

Defects

Analysis

Design

Code

Unit Test

Component Test

System Test

Customer Use

Return-on-Investment (ROI) Model

PSP Software Size Start Defects Review Efficiency Review Hours Review Defects Review Defects/Hour Review Hours/Defect Remaining Defects Test Efficiency Test Hours Test Defects Test Defects/Hour Test Hours/Defect Validation Defects Released Defects Maintenance Hours/Defect Development Hours Validation Hours Maintenance Hours Total Hours QBreak Even/Ad Hoc PBreak Even/Ad Hoc PBreak Even/T est PBreak Even/Inspection Slope (Life Cycle Cost) Y Intercept (w/Investment) HBreak Even/Ad Hoc HBreak Even/Test HBreak Even/Inspection ROI/Ad Hoc ROI/Test ROI/Inspection 10,000 1,000 67% 97 667 6.86 0.15 333 100% 61 333 5.47 0.18 1,000 0 2 242 158 0 400 0.78 6.15 14.59 35.96 25.00 -2000.00 80.25 80.58 81.44 1,290:1 430:1 143:1 AT&T Basic BNR Gilb HP Inspection Inspection Inspection Inspection Inspection 10,000 1,000 67% 500 667 1.33 0.75 333 67% 1,667 222 0.13 7.50 889 111 75 5,088 2,167 8,333 15,588 6.67 1.65 4.79 0.64 -12.19 21.58 26.47 234:1 67:1 10,000 1,000 67% 708 667 0.94 1.06 333 67% 2,361 222 0.09 10.63 889 111 106 5,088 3,069 11,806 19,963 6.67 1.72 5.38 0.50 -9.52 22.43 29.75 160:1 42:1 10,000 1,000 67% 960 667 0.69 1.44 333 67% 3,200 222 0.07 14.40 889 111 144 5,088 4,160 16,000 25,248 6.67 1.81 6.33 0.40 -7.53 23.56 34.99 114:1 27:1 10,000 1,000 67% 970 667 0.69 1.46 333 67% 3,233 222 0.07 14.55 889 111 146 5,088 4,203 16,167 25,458 6.67 1.81 6.38 0.39 -7.46 23.61 35.24 113:1 26:1 10,000 1,000 67% 1,042 667 0.64 1.56 333 67% 3,472 222 0.06 15.63 889 111 156 5,088 4,514 17,361 26,963 6.67 1.84 6.72 0.37 -7.05 23.95 37.11 104:1 23:1 Test 10,000 1,000 0% 0 0 0 0 1,000 67% 8,360 667 0.08 12.54 667 333 125 5,088 8,360 41,800 55,248 66.67 10.37 Ad Hoc 10,000 1,000 0% 0 0 0 0 1,000 0% 0 0 0 0 0 1,000 125 5,088 0 125,400 130,488

0.18 -14.12 135.27

0.08

10:1

sm

Personal Software Process and PSP are service marks of Carnegie Mellon University.

Ricos Inspection Cost Model

2.0 1.5 1.0 0.5 Planning Substage 0.5 * M + Overview Substage Preparation Substage Inspection Substage Rework Substage

Hours

Followup Substage + 0.5 * M

1.0 * P

1.0 * I

2.0 * P

1.0 * C

Hours = Product Size / ( Inspection Rate * 2 ) * ( Team Size * 4 + 1)

10,000 Lines People 4 5 6 7 60 SLOC Per Hour 1,417 1,750 2,083 2,417 120 SLOC Per Hour 708 875 1,042 1,208 180 SLOC Per Hour 472 583 694 806 60 SLOC Per Hour 14,167 17,500 20,833 24,167

100,000 Lines 120 SLOC Per Hour 7,083 8,750 10,417 12,083 180 SLOC Per Hour 4,722 5,833 6,944 8,056 60 SLOC Per Hour 141,667 175,000 208,333 241,667

1,000,000 Lines 120 SLOC Per Hour 70,833 87,500 104,167 120,833 180 SLOC Per Hour 47,222 58,333 69,444 80,556

PSP & Inspection Cost Models

Method PSP Inspection Software Cost Model SLOC / 25 Author Rico (1998) Source Hays (1997) Russell (1991) Hewlett Packard AT&T Bell Northern Fagan (1976)

SLOC / (Rate * 2) * (Team Size * 4 + 1) Rico (1993) SLOC / (Rate * 2) * 25 50 * KSLOC 3 * KSLOC * 4 * 8 SLOC / (Rate * 2) * (5.76 * Team Size) Grady (1994) Barnard (1994) Russell (1991) Gilb (1993)

Software Cost Models

Software Cost Model SLOC / 25 3 * KSLOC ^ 1.12 5.2 * KSLOC ^ 0.91 5.5 + 0.73 * KSLOC ^ 1.15 5.288 * KSLOC ^ 1.047 Author Rico (1998) McGibbon (1997) McGibbon (1997) McGibbon (1997) McGibbon (1997) Source Hays (1997) Boehm Walston/Felix Bailey/Basili Doty Form Linear Log-Linear Log-Linear Log-Linear Log-Linear Output Hours Months Months Months Months

10

Ricos Breakeven Point Model

Break Even Point = Investment / Productivity Difference * Productivity Product

Software Productivity

Investment

SPI M

ethod

Break Even Point

Software Effort

SP IM eth

od

11

Breakeven Point Analysis

Breakeven Point Models

Method Ad Hoc Test HP Inspection Gilb Inspection BNR Inspection Basic Inspection AT&T Inspection PSP Life Cycle Cost * SLOC / 0.08 SLOC / 0.18 SLOC / 0.37 SLOC / 0.39 SLOC / 0.40 SLOC / 0.50 SLOC / 0.64 SLOC / 25.0 (SLOC + 14.12) / 0.18 (SLOC + 07.05) / 0.37 (SLOC + 07.46) / 0.39 (SLOC + 07.53) / 0.40 (SLOC + 09.52) / 0.50 (SLOC + 12.19) / 0.64 (SLOC + 2000) / 25.0 Life Cycle Cost **

* Yields effort in hours ** Yields effort in hours (includes initial investment effort)

13

Test vs. Ad Hoc

10.80 10.60 10.40 10.20 10.00 9.80 9.60 9.40 9.20 9.00 8.80 8.60 130 131 132 133 134 135 136 137 Effort in Hours

Test Ad Hoc Effort = 135.27 SLOC = 10.37

Source Lines of Code (SLOC)

14

Inspection vs. Ad Hoc

3.00

Source Lines of Code (SLOC)

Inspection 2.50 2.00 1.50 Effort = 1.00 0.50 0.00 22 23 Effort in Hours 24 25 SLOC = 23.02 1.85 Ad Hoc

15

PSP vs. Ad Hoc

30.00

Source Lines of Code (SLOC)

PSP 25.00 20.00 15.00 10.00 5.00 0.00 80 Effort in Hours 81 Effort = SLOC = 80.25 6.15 Ad Hoc

16

Inspection vs. Test

7.00

Source Lines of Code (SLOC)

6.00 5.00 Effort = 4.00 3.00 2.00 1.00 0.00 31 32 Effort in Hours 33 34 SLOC = 32.71 5.92 Inspection Test

17

PSP vs. Test

30.00

Source Lines of Code (SLOC)

25.00 20.00 15.00 10.00 5.00 0.00

PSP Test

Effort = SLOC =

80.58 14.59

80 Effort in Hours

81

18

PSP vs. Inspection

60.00

Source Lines of Code (SLOC)

PSP 50.00 40.00 30.00 Effort = 20.00 10.00 0.00 80 81 Effort in Hours 82 SLOC = 81.44 35.96 Inspection

19

Actual Costs & Benefits

Overall
PSP Breakeven Hours T raining Hours/Person T raining Cost/Person Effort (Hours) Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment 80 80 $7,456 400 164.03x 109.49x 253.62x 1,290:1 Cleanroom 53 201 $8,089 3,245 3.53x 4.27x 42.22x 27:1 Reuse 8,320 3,316 $298,440 16,212 3.69x 2.70x 4.33x 3:1 Prevent 527 31 $5,467 2,100 1.69x 1.88x 4.77x 75:1 Inspect T est CMM ISO Average

7 3,517 10,021 19 78 227 $1,794 $13,863 $12,668 836 37,510 94,417 5.47x 6.15x 2.99x 5.47x 6.15x 2.92x 9.00x 5.75x 4.55x 133:1 9:1 6:1

3,437 4,973 502 64 $9,475 $44,656 53,800 26,065 23.58x 1.14x 16.75x 1.13x 12.44x 42.09x 193:1 4:1

Capability Maturity Model and CMM are registered in the U.S. Patent and Trademark Office.

21

Personal Software Process (PSP)

Rico Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 80.25 $995 400 326.22x 326.22x 1,000.00x 1,290:1 1.85x 1.07x 4.47x 1.19x 1.62x 8.40x 80 $13,917 CMU AIS Motorola Webb Hays SEI Average 80.25 80 $7,456 400 164.03x 109.49x 253.62x 1,290:1

22

Clean Room Methodology

McGibbon Breakeven Hours T raining Hours/Person T raining Cost/Person Effort (Hours) Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment 42 318 $12,398 3,245 3.53x 3.53x 100.00x 33:1 Kaplan 64 84 $3,780 Prowell CSR Average 53 201 $8,089 3,245 3.53x 4.27x 42.22x 27:1

16.67x 20:1

5.00x 10.00x

23

Software Reuse
McGibbon Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment NEC Lim Raytheon DEC Reifer HP HP 12,480 6,182 $556,380 17,160 4.70x 1.40x 1.31x 2:1 Average 8,320 3,316 $298,440 16,212 3.69x 2.70x 4.33x 3:1

22,115 6.70x 2.80x 4:1 3.33x 1.84x 5.49x 5.00x 2.00x

4,160 450 $40,500 9,360 1.71x 1.57x 10.00x 2.05x 4:1

24

Software Defect Prevention

Kaplan Breakeven Hours T raining Hours/Person T raining Cost/Person Effort (Hours) Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment 1,560 12 $900 4,680 Gilb 10 Mays 11 40 $7,500 1,625 1,747 2.00x 2.00x 2.17x 1.37x 4.55x 4.00x 1.76x 10.00x 7.00x 40:1 3.67x 179:1 40 $8,000 347 Humphrey Grady Kajihara Latino Latino Average 527 31 $5,467 2,100 1.69x 1.88x 4.77x 75:1

2.00x 7:1

25

Software Inspection Process

McGibbon Breakeven Hours T raining Hours/Person T raining Cost/Person Effort (Hours) Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment Fagan AT &T 7 12 $468 1.55x 1.55x 72:1 24 $2,800 6.67x 6.67x 500 8.37x 8.37x 9.00x 234:1 708 6.54x 6.54x 9.00x 160:1 960 5.17x 5.17x 9.00x 114:1 Rico 7 BNR 7 Gilb 7 20 $2,114 970 5.13x 5.13x 9.00x 113:1 HP 7 Average 7 19 $1,794 836 5.47x 5.47x 9.00x 133:1

1,042 4.84x 4.84x 9.00x 104:1

26

Software Testing
ROI Model Breakeven Hours T raining Hours/Person T raining Cost/Person Effort (Hours) Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment 135 84 $16,800 8,360 2.36x 2.36x 3.00x 10:1 5.00x 5.00x 2.00x 5:1 3.37x 3.37x 72 $10,926 54,000 10.00x 10.00x 9.00x 10:1 Farren Rice Yamaura Graham Ehrlick 5,400 Asada 5,017 Average

3,517 78 $13,863 50,170 37,510 10.00x 6.15x 10.00x 6.15x 5.75x 9.00x 9:1 10:1

27

Capability Maturity Model (CMM)

Herbsleb Breakeven Hours T raining Hours/Person T raining Cost/Person Effort (Hours) Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment Years to SEI Level 3 2,318 64 $9,820 23,184 1.85x 2.89x 3.21x 5:1 3.50 Putnam Haskell 345 Vu Diaz 1,092 Haley Jones 36,330 389 $15,516 363,298 1.26x 1.26x 5.68x 3.56 Average 10,021 227 $12,668 94,417 2.99x 2.92x 4.55x 6:1 4.84

3,450 7.46x 7.46x 8.25x 7.00 1.75x 2.22x 5.00x 5.00

10,920 2.70x 0.80x 2.17x 4:1 3.00

2.90x 2.90x 3.00x 8:1 7.00

28

ISO 9000
Roberson Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment Years to ISO 9001 4,160 88 $8,775 1.14x 1.14x 1.22x Hewlett Armstrong Russo Kaplan 10,400 Haskell Garver El Emam Average 4,973 64 $9,475 53,800 1.14x 1.13x 12.44x 4:1 1.57

360 24 80 $12,650 $7,000 104,000 3,600

1.11x 1.11x 1:1 7:1 1.00

35.00x 2.14

29

Normalized Costs & Benefits

Normalized Costs & Benefits

PSP Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 9.97 9.80 9.79 9.98 8.69 8.17 7.53 8.34 72.28 Cleanroom 9.98 9.50 9.77 9.84 0.19 0.32 1.25 0.17 41.03 Reuse 6.97 1.74 1.65 9.22 0.20 0.20 0.13 0.02 20.13 Prevent 9.81 9.92 9.85 9.90 0.09 0.14 0.14 0.49 40.34 Inspect 10.00 9.95 9.95 9.96 0.29 0.41 0.27 0.86 41.68 Test 8.72 9.81 9.61 8.20 0.33 0.46 0.17 0.06 37.35 CMM 6.36 9.44 9.65 5.47 0.16 0.22 0.14 0.04 31.46 ISO 8.19 9.84 9.73 7.42 0.06 0.08 0.37 0.03 35.73 Average 8.75 8.75 8.75 8.75 1.25 1.25 1.25 1.25

31

Normalized Costs & Benefits

12.00

10.00

Normalized/Unweighted Scores

8.00

Breakeven Hours Training Hours/P erson

6.00

Training Cost/P erson Effort (Hours) Cycle Time Reduction

4.00

P roductivity Increase Quality Increase Return-on-Investment

2.00

0.00 P SP Cleanroom Reuse P revent Inspect Test CMM ISO

32

Breakeven Hours
Breakeven Hours (Normalized/Unweighted)

12.00 10.00 8.00 6.00 4.00 2.00 0.00

PSP Cleanroom Reuse Prevent Inspect Test CMM ISO

33

Training Hours/Person
12.00 10.00 8.00 6.00 4.00 2.00 0.00
PSP Cleanroom Reuse Prevent Inspect T est CMM ISO

Trainiing Hours/Person (Normalized/Unweighted)

34

Training Cost/Person
12.00 10.00
Training Cost/Person (Normalized/Unweighted)

8.00 6.00 4.00 2.00 0.00

PSP Cleanroom Reuse Prevent Inspect T est CMM ISO

35

Effort (Hours)
12.00
Effort (Hours) (Normalized/ Unweighted)

10.00 8.00 6.00 4.00 2.00 0.00

PSP Cleanroom Reuse Prevent Inspect Test CMM ISO

36

Cycle Time Reduction

10.00 9.00
Cycle Time Reduction (Normalized/Unweighted)

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

PSP Cleanroom Reuse Prevent Inspect T est CMM ISO

37

Productivity Increase
9.00 8.00
Productivity Increase (Normalized/Unweighted)

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

PSP Cleanroom Reuse Prevent Inspect Test CMM ISO

38

Quality Increase
8.00
Quality Increase (Normalized/Unweighted)

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

PSP Cleanroom Reuse Prevent Inspect Test CMM ISO

39

Return-on-Investment (ROI)
9.00 8.00 7.00
Return-on-Investment (Normalized/Unweighted)

6.00 5.00 4.00 3.00 2.00 1.00 0.00

P SP Cleanroom Reuse P revent Inspect Test CMM ISO

40

Normalized Benefits

Normalized Benefits

PSP Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 8.69 8.17 7.53 8.34 32.74

Cleanroom 0.19 0.32 1.25 0.17 1.93

Reuse 0.20 0.20 0.13 0.02 0.55

Prevent 0.09 0.14 0.14 0.49 0.86

Inspect 0.29 0.41 0.27 0.86 1.82

Test 0.33 0.46 0.17 0.06 1.01

CMM 0.16 0.22 0.14 0.04 0.55

ISO 0.06 0.08 0.37 0.03 0.54

Average 1.25 1.25 1.25 1.25

42

Normalized Benefits
10.00 9.00
Normalized/Unweighted Scores
Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

P SP Cleanroom Reuse P revent Inspect T est

CMM

ISO

43

Average Benefits
35.00 30.00

Cumulative/Normalized/Unweighted Scores

25.00 20.00 15.00 10.00 5.00 0.00 P SP Cleanroom Reuse P revent Inspect Test CMM ISO

44

Worst Normalized Benefits

Cleanroom Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 1.43 1.74 5.08 1.03 9.29

Reuse 1.50 1.10 0.52 0.13 3.25

Prevent 0.68 0.77 0.57 2.94 4.97

Inspect 2.22 2.23 1.08 5.18 10.71

Test 2.49 2.51 0.69 0.34 6.04

CMM 1.21 1.19 0.55 0.22 3.17

ISO 0.46 0.46 1.50 0.15 2.57

Average 1.43 1.25 1.25 1.25

45

Worst Normalized Benefits

6.00 Cycle Time Reduction

Normalized/Unweighted Scores

5.00 4.00 3.00 2.00 1.00 0.00 Cleanroom Reuse Prevent Inspect Test

Productivity Increase Quality Increase Return-on-Investment

CMM

ISO

46

Worst Average Benefits

Cumulative/Normalized/Unweighted Scores

12.00 10.00 8.00 6.00 4.00 2.00 0.00

Cleanroom Reuse Prevent Inspect Test CMM ISO

47

Poorest Normalized Benefits

Reuse Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 2.36 1.83 1.36 0.34 5.88

Prevent 1.08 1.27 1.50 7.78 11.62

Test 3.93 4.16 1.81 0.90 10.80

CMM 1.91 1.98 1.43 0.58 5.90

ISO 0.73 0.76 3.91 0.40 5.80

Average 2.00 2.00 2.00 2.00

48

Poorest Normalized Benefits

9.00 8.00 Cycle T ime Reduction Productivity Increase Quality Increase Return-on-Investment

Normalized/Unweighted Scores

7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00

Reuse

Prevent

T est

CMM

ISO

49

Poorest Average Benefits

14.00
Cumulative/Normalized/Unweighted Scores

12.00 10.00 8.00 6.00 4.00 2.00 0.00 Reuse Prevent Test CMM ISO

50

Category Costs & Benefits

Actual Costs & Benefits

Vertical Life Cycle Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 2,818 1,199 $104,662 6,619 57.08x 38.82x 100.06x 440:1 Vertical Process 1,350 42 $7,041 13,482 4.43x 4.50x 6.51x 72:1

Indefinite 7,497 145 $11,072 74,108 2.06x 2.02x 8.50x 5:1

52

Normalized Costs & Benefits

Vertical Life Cycle Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 7.58 1.35 1.48 9.30 8.98 8.56 8.70 8.51 54.46 Vertical Process 8.84 9.69 9.43 8.57 0.70 0.99 0.57 1.40 40.18 Indefinite 3.57 8.95 9.10 2.13 0.32 0.45 0.74 0.09 25.36

53

Normalized Costs & Benefits

12.00

10.00

Normalized/Unweighted Scores

Breakeven Hours 8.00 Training Hours/P erson Training Cost/P erson 6.00 Effort (Hours) Cycle Time Reduction 4.00 P roductivity Increase Quality Increase 2.00 Return-on-Investment

0.00 Vertical L ife Cycle Vertical P rocess Indefinite

54

Average Costs & Benefits

60.00

Cumulative/Normalized/Unweighted Scores

50.00

40.00

30.00

20.00

10.00

0.00 Vertical Life Cycle Vertical P rocess Indefinite

55

Normalized Benefits
Vertical Life Cycle Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 8.98 8.56 8.70 8.51 34.75 Vertical Process 0.70 0.99 0.57 1.40 3.65

Indefinite 0.32 0.45 0.74 0.09 1.60

56

Normalized Benefits
10.00 9.00 Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment

Normalized/Unweighted Scores

8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Vertical Life Cycle Vertical Process

Indefinite

57

Average Benefits
40.00

Cumulative/Normalized/Unweighted Scores

35.00 30.00 25.00 20.00 15.00 10.00 5.00 0.00 Vertical Life Cycle Vertical P rocess Indefinite

58

Worst Normalized Benefits

Vertical Process Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment 6.82 6.90 4.34 9.38 27.44

Indefinite 3.18 3.10 5.66 0.62 12.56

59

Worst Normalized Benefits

10.00 9.00 8.00 Cycle Time Reduction P roductivity Increase Quality Increase 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Vertical P rocess Indefinite Return-on-Investment

Normalized/Unweighted Scores

60

Worst Average Benefits

30.00

Cumulative/Normalized/Unweighted Scores

25.00

20.00

15.00

10.00

5.00

0.00 Vertical Process Indefinite

61

Summary of Costs & Benefits

Summary of Alternatives
PSP Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment Good Good Good Good Good Good Good Good Cleanroom Good Good Good Good Poor Poor Poor Poor Reuse Good Poor Poor Good Poor Poor Poor Poor Prevent Good Good Good Good Poor Poor Poor Poor Inspect Good Good Good Good Poor Poor Poor Poor Test Good Good Good Good Poor Poor Poor Poor CMM Average Good Good Average Poor Poor Poor Poor ISO Good Good Good Good Poor Poor Poor Poor

63

Summary of Worst Alternatives

Cleanroom Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment Poor Average Good Poor

Reuse Poor Poor Poor Poor

Prevent Poor Poor Poor Average

Inspect Average Average Poor Good

Test Average Average Poor Poor

CMM Poor Poor Poor Poor

ISO Poor Poor Poor Poor

64

Summary of Poorest Alternatives

Reuse Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment Poor Poor Poor Poor

Prevent Poor Poor Poor Good

Test Average Average Poor Poor

CMM Poor Poor Poor Poor

ISO Poor Poor Average Poor

65

Summary of Categories
Vertical Life Cycle Breakeven Hours Training Hours/Person Training Cost/Person Effort (Hours) Cycle Time Reduction Productivity Increase Quality Increase Return-on-Investment Good Average Average Good Good Good Good Good Vertical Process Good Good Good Good Poor Poor Average Average

Indefinite Poor Good Good Poor Poor Poor Average Average

66

Conclusion

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 9000-2000 may perform worse than the Software CMM v1.1 or ISO 9000-1995
68