Introduction

This case study is based on the technical paper "Profitable Software Quality," ^[3] presented at the First World Congress on Software Quality, 1995, San Francisco. The paper was written and presented by Robert J. Herbert, Litton Applied Technology, and Thomas M. Cappels, University of Phoenix and Lockheed Martin Missiles and Space. This is a factual case study that illustrates the application of financially focused project management (FFPM) in a major software development project.

In modern software development, the process for implementing changes to the baseline configuration is made via a problem-reporting corrective action system. All changes to the items in a configuration baseline are identified on a problem/ change report (PCR) and are processed through this system. All the concepts of FFPM are exhibited in this process.

On the AN/ALR-67 Project at Applied Technology, a division of Litton Systems, Inc., a problem-reporting corrective action system is in place. This method, also known as the PCR process, is used for all changes in requirements, problems, or enhancements to AN/ALR-67 capabilities. By adapting the FFPM process, substantial improvements to the PCR process were achieved.

This case study reviews related financially focused concepts and demonstrates how they have been applied to the AN/ALR-67 project. The resulting process improvements effectively transform the existing PCR process into a software FFPM system, saving millions of dollars while maintaining high quality standards.

^[3]Herbert, R.J. and Cappels, T.M., Profitable Software Quality, The First World...