ROI of Software Process Improvement: Metrics for Project Managers and Software Engineers

Chapter 8: Personal Software ProcessSM ROI Methodology

The return on investment (ROI) methodology for the Personal Software Process SM is a procedure to measure, quantify, and analyze its economic value. The Personal Software Process SM is a training curriculum that is used to teach software project and quality management. ROI is the amount of money gained, returned, or earned above the resources spent on the Personal Software Process SM. Its ROI methodology is a six-part process that consists of estimating costs, benefits, benefit/cost ratio (B/CR), ROI%, net present value (NPV), and breakeven point. The ROI methodology for the Personal Software Process SM has unique elements for estimating costs, benefits, and B/CR. Its cost, benefit, B/CR, ROI%, NPV, and breakeven point methodologies are rather simple. Key elements include its software cost model and total life cycle cost model, which are used to estimate the costs and benefits of using the Personal Software Process SM. Figure 32 illustrates the ROI methodology for the Personal Software Process SM.


Figure 32: ROI Methodology for Personal Software Process SM

8.1 PSP SM Cost Methodology

The cost methodology for the Personal Software Process SM is a procedure to measure, quantify, and analyze the amount of money spent. The Personal Software Process SM incurs cost for training, but results in the lowest overall software maintenance costs. Cost is the economic consequence of using the Personal Software Process SM to create a new and improved software process. Its cost methodology is a two-part process that...

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