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Cost & Benefit Analysis Executive Overview David F. Rico
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2 Table of Contents Methodology Breakeven Point Analysis Actual Costs & Benefits Normalized Costs & Benefits Normalized Benefits Category Costs & Benefits Summary of Costs & Benefits Conclusion
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Methodology
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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 –http://davidfrico.com
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5 Analytical Methodology
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6 Defect Removal Model
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7 Return-on-Investment (ROI) Model sm Personal Software Process and PSP are service marks of Carnegie Mellon University.
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8 Rico’s Inspection Cost Model
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9 PSP & Inspection Cost Models
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10 Software Cost Models
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11 Rico’s Breakeven Point Model
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Breakeven Point Analysis
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13 Breakeven Point Models
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14 Test vs. Ad Hoc
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15 Inspection vs. Ad Hoc
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16 PSP vs. Ad Hoc
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17 Inspection vs. Test
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18 PSP vs. Test
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19 PSP vs. Inspection
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Actual Costs & Benefits
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21 Overall ® Capability Maturity Model and CMM are registered in the U.S. Patent and Trademark Office.
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22 Personal Software Process (PSP)
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23 Clean Room Methodology
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24 Software Reuse
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25 Software Defect Prevention
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26 Software Inspection Process
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27 Software Testing
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28 Capability Maturity Model (CMM)
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29 ISO 9000
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Normalized Costs & Benefits
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31 Normalized Costs & Benefits
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32 Normalized Costs & Benefits
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33 Breakeven Hours
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34 Training Hours/Person
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35 Training Cost/Person
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36 Effort (Hours)
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37 Cycle Time Reduction
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38 Productivity Increase
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39 Quality Increase
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40 Return-on-Investment (ROI)
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Normalized Benefits
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42 Normalized Benefits
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43 Normalized Benefits
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44 Average Benefits
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45 Worst Normalized Benefits
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46 Worst Normalized Benefits
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47 Worst Average Benefits
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48 Poorest Normalized Benefits
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49 Poorest Normalized Benefits
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50 Poorest Average Benefits
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Category Costs & Benefits
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52 Actual Costs & Benefits
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53 Normalized Costs & Benefits
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54 Normalized Costs & Benefits
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55 Average Costs & Benefits
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56 Normalized Benefits
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57 Normalized Benefits
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58 Average Benefits
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59 Worst Normalized Benefits
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60 Worst Normalized Benefits
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61 Worst Average Benefits
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Summary of Costs & Benefits
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63 Summary of Alternatives
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64 Summary of Worst Alternatives
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65 Summary of Poorest Alternatives
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66 Summary of Categories
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Conclusion
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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 9000-2000 may perform worse than the Software CMM v1.1 or ISO 9000-1995
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