TABLE OF CONTENTS Methods for cost analysis are formulas, equations, and models to measure and quantify the effort, cost, and time of software process improvement (SPI) methods. Six cost models have been designed for the SPI methods we will examine here. Cost models are presented for the Software Inspection Process, Personal Software Process SM, and Team Software Process SM, as well as the Software Capability Maturity Model , ISO 9001, and Capability Maturity Model Integration . Cost analysis or quantifying the costs of a SPI method is an essential component of SPI and return on investment (ROI) of SPI. Not only is cost necessary for determining how much you need to spend for SPI or for input into an ROI equation, but knowing the cost of a SPI method is an integral part of the SPI method itself. Knowing costs is what it takes to successfully implement a SPI method and how to successfully manage a SPI initiative. In fact, knowing the cost of a SPI method indicates that you know the component parts of the SPI method. It also means you are familiar with the risks of implementing the SPI method and how to eliminate the obstacles. Knowing the cost of a SPI method certainly qualifies you as a professional in your field.
The major costs of a SPI method include education, process design, training, and implementation effort. Appraisal preparation, the appraisal itself, and any corrective action from appraisals are major cost items as well. The cost models presented here only address...
