How to Estimate ROI for Inspections, PSPsm, TSPsm, SW-CMM, ISO 9000, and CMMIsm by David F.

Rico
INTRODUCTION MODEL

ROI is the quantification of the financial return of an investment. In more technical terms, ROI is the actual value developed by comparing program costs to benefits, measuring the magnitude of benefits relative to costs, the net benefit after expending some level of resources, or profit computed by dividing net income by assets used. This article sho s soft are #0 1 managers and "& 1 engineers ho to estimate ROI "0 1 early, quic!ly, and accurately by applying practical !0 1 top"do n methods for 10 1 rapidly producing authoritative estimates of ROI for popular Inspection approaches to #$I %and is based on Rico &'(). These approaches include* Inspections, $ersonal #oft are $rocesssm %$#$), Team #oft are $rocesssm %T#$), #oft are +apability ,aturity ,odel %#-"+,,), I#O .//', and +apability ,aturity ,odel Integrationsm %+,,I).
$enefit%Cost Ratio

-hile, one can spend months and years analy2ing the literature and searching for relevant approaches to defining and estimating ROI, Rachlin &3( provides one"stop shopping on this seemingly futile 4ourney. Rachlin defines the basic model for estimating ROI, as ell as a complete process for applying these simple equations in a professional manner.

This section provides simple, but po erful, authoritative, and relatively accurate examples of ho to apply Rachlin5s &3( basic equations for estimating the ROI of six ma4or approaches to #$I %as sho n in Figure '). Rachlin5s 67+R and ROI8 equations ill be applied to benefit data from Rico &9( as ell as other authoritative sources of #$I data. The six approaches to #$I are* Inspection* The soft are inspection process is a highly" structured and facilitated group meeting to ob4ectively identify the maximum number of soft are '1 defects ith the purpose of improving CMMI soft are quality. $#$* The $#$ is a training curriculum to teach simple, but po erful techniques in soft are pro4ect management and quality management. T#$* The T#$ is an extension of $#$, hich introduces group soft are pro4ect management techniques versus the individual focus taught by $#$. #-"+,,* The #-"+,, is a supplier selection model created by the 0.#. DoD to evaluate and select soft are

"! 1

1# 1

1# 1 (1

PSP

TSP
Figure '* :xamples for ROI

SW-CMM

ISO 9001

Rachlin5s &3( ROI model consists of t o basic equations* 6enefit7+ost Ratio %67+R)* 67+R is a simple process of dividing the benefits of #$I by the costs of #$I.

Return on Investment %ROI8)* The ROI8 equation is similar sm $ersonal #oft are $rocess, $#$, Team to the 67+R equation, except #oft are $rocess, T#$, +apability that the costs of #$I are ,aturity ,odel Integration, and +,,I subtracted from the benefits of are service mar!s of +arnegie ,ellon #$I before dividing by the 0niversity. 1 costs. +apability ,aturity ,odel and
#oft are +,, are registered in the 0.#. $atent and Trademar! Office. EXAMPLES

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contractors that practice minimum soft are pro4ect management techniques. I#O .//'* I#O .//', li!e the #-"+,,, is a supplier selection model created by the :uropean 0nion to evaluate, identify, and select suppliers that practice minimum quality management techniques. +,,I* The +,,I, hich is the ne est version of #-" +,,, is also a supplier selection model created by the 0.#. DoD to evaluate and select systems engineering contractors that practice minimum systems engineering management techniques. I)SPECTIO) ;et5s examine the dynamics of Inspection cost, benefit, and ROI analysis using Rachlin5s &3( equations for 67+R and ROI8. Training +ost* ;et5s begin by modeling the training costs for implementing Inspections on a four"person pro4ect. The average mar!et price for Inspection training is about <='/ per person. The average length of time for Inspection training is three days or 3= business hours. >t a minimum cost of <'// per hour, training time comes to <3,=//. >dd <='/ to <3,=// for a total of <3,?'/ per person for Inspection training. ,ultiply <3,?'/ by four people and that comes to <'',3=/ to train four people to perform Inspections.

implementing Inspections by our four trained inspectors. ;et5s assume the pro4ect ill develop '/,/// soft are source lines of code %#;O+), hich is not unli!ely for a eb pro4ect in modern times. %Inspections of requirements, designs, and tests drive the Inspection costs even higher, but are omitted for simplicity5s sa!e.) >t an Inspection rate of 3=/ #;O+ per meeting, that comes to approximately ='.AB meetings. #ince each Inspection run requires about 'B hours for planning, overvie s, preparation, meetings, re or!, and follo "up, e then multiply ='.AB by 'B for a total of B/?.99 hours. Once again, at <'// per hour, that comes to <B/,?99 for our four trained inspectors to perform Inspections on '/,/// #;O+. Total +ost* #o, e add the training cost of <'',3=/ to the implementation cost of <B/,?99, and e arrive at a total cost of <?3,/B9 for four trained inspectors to Inspect '/,/// #;O+.

67+R* %The formula for 67+R is benefits divided by costs.) Therefore, divide <3,...,=// by <?3,/B9 and the 67+R for Inspections is 9B*'. ROI8* %The formula for ROI8 is benefits less costs divided by costs times '//.) Therefore, first subtract the <?3,/B9 in Inspection costs from the <3,...,=// in Inspection benefits and divide the results by the <?3,/B9 in Inspection costs and multiply by '// for an impressive ROI8 of 9,CCC8. PSP @o , let5s examine the dynamics of $#$ cost, benefit, and ROI analysis using Rachlin5s &3( equations for 67+R and ROI8. Training +ost* ;et5s begin by modeling the training costs for implementing $#$ on a four" person pro4ect. The #oft are :ngineering Institute5s %#:I5s) price for $#$ training is <C,/// per person. The costs of the airline, hotels, meals, and par!ing are about <C,=// for t o ee!s. The length of time for $#$ training is '/ days or ?/ business hours. :ach hour of classroom time requires approximately one hour of non" classroom time for a total of ?/ more hours. >t a minimum cost of <'// per hour, training time comes to <'A,///. >dd <C,///, <C,=//, and <'A,/// for a total of <3A,=// per person for $#$ training. ,ultiply <3A,=// by four people and that comes to <'/C,A// to train four people to perform $#$.

Total ;ife +ycle 6enefits* The estimated maintenance hours for '/,/// #;O+ after our four trained inspectors perform their Inspections are '',?/A. The estimated maintenance hours for '/,/// #;O+ ith no Inspections are =',?//. #o, our four trained inspectors have saved 3.,..= maintenance hours on their very first implementation of Inspections. ,ultiply 3.,..= by <'// and Implementation +ost* @o let5s the estimated savings are an examine the cost of eye"popping <3,...,=//.
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an the estimated savings are an Implementation +ost* @o let5s Implementation +ost* @o let5s impressive <=,AA=,A//. examine the cost of examine the cost of implementing $#$ by our four 67+R* %The formula for 67+R implementing T#$ by our four $#$"trained engineers. ;et5s T#$"trained engineers. ;et5s is benefits divided by costs.) assume the pro4ect ill develop assume the pro4ect ill develop Therefore, divide <=,AA=,A// '/,/// soft are source lines of '/,/// soft are source lines of by <'=C,A// and the 67+R for code %#;O+), once again, code %#;O+), once again, $#$ is 93*'. hich is not unli!ely for a eb hich is not unli!ely for a eb pro4ect in modern times. >t an ROI8* %The formula for ROI8 pro4ect. >t an average average productivity rate of 3C is benefits less costs divided by productivity rate of A.'3 #;O+ #;O+ per hour, that comes to costs times '//.) Therefore, per hour, that comes to approximately =// hours. >t first subtract the <'=C,A// in approximately ',A9= hours. >t <'// per hour, that comes to $#$ costs from the <=,AA=,A// <'// per hour, that comes to <=/,/// for our four $#$" in $#$ benefits, divide the <'A9,=// for our four T#$" trained engineers to produce results by the <'=C,A// in costs, trained engineers to produce '/,/// #;O+ using $#$. and multiply by '// for an '/,/// #;O+ using T#$. %#ee impressive ROI8 of 9,'/=8. Dumphrey &=( for an in"depth Total +ost* #o, e add the analysis of T#$ metrics, training cost of <'/C,A// to the TSP models, effort, and costs.) implementation cost of <=/,///, and e arrive at a total @o , let5s examine the dynamics Total +ost* #o, e add the cost of <'=C,A// for four $#$" of T#$ cost, benefit, and ROI training cost of <'=?,=// to the trained engineers to produce implementation cost of analysis using Rachlin5s &3( '/,/// #;O+ using $#$. <'A9,=//, and arrive at a total equations for 67+R and ROI8. cost of <9'',?// for four T#$" Total ;ife +ycle 6enefits* The Training +ost* ;et5s begin by trained engineers to produce estimated maintenance hours modeling the training costs for '/,/// #;O+ using T#$. for '/,/// #;O+ after our four implementing T#$ on a four" $#$"trained engineers apply person pro4ect. The #:I5s price Total ;ife +ycle 6enefits* The $#$ are 2ero. The estimated estimated maintenance hours for T#$ training is <=,/// per maintenance hours for '/,/// for '/,/// #;O+ after our four person. The costs of the airline, #;O+ ithout $#$ are =',?//. T#$"trained engineers apply hotels, meals, and par!ing are #o, our four $#$"trained T#$ are 2ero. The estimated about <3,B// for one ee!. The engineers have saved =',?// maintenance hours for '/,/// length of time for T#$ training maintenance hours on their very #;O+ ithout T#$ are =',?//. is C days or =/ business hours. first application of $#$. Typical #o, our four T#$"trained >t a minimum cost of <'// per soft are development hours for engineers have saved =',?// hour, training time comes to '/,/// #;O+ are C,/??. maintenance hours on their very <=,///. >dd <=,///, <3,B//, Do ever, soft are first application of T#$. and <=,/// for a total of development hours ith $#$ Typical soft are development <'/,B// per person for T#$" are only 3=3, for an additional hours for '/,/// #;O+ are specific training. >dd the savings of =,?=A hours. >dd C,/??. Do ever, soft are <3A,=// for $#$ training to the =',?// maintenance hours development hours ith T#$ <'/,B// for T#$ training and saved to =,?=A development are only ',A9=, for an additional the total overall T#$ costs hours saved for a total of savings of 9,=C= hours. >dd come to a breathta!ing <9B,'// =A,A=A saved soft are =',?// maintenance hours per person. ,ultiply <9B,'// maintenance and development saved to 9,=C= development by four people and that comes hours. ,ultiply =A,A=A by <'// hours saved for a total of to a budget"busting <'=?,=// to =C,3C= saved soft are train four people to use T#$.
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maintenance and development Deployment +ost %;evel 9)* our four pro4ects of five people hours. ,ultiply =C,3C= by <'// let5s estimate A3 hours for Rico &C( ma!es the follo ing and the estimated savings are planning, 39= hours for estimates* BB hours for B an impressive <=,C3C,=//. preparation, A=A hours for the policies, 'C= hours for '= appraisal itself, and CB hours of procedures, ',3?/ hours for ?/ 67+R* %The formula for 67+R follo "up hich totals ',/// documents, 'BA hours for == is benefits divided by costs.) hours. %This doesn5t include the or! authori2ations, C.3 hours Therefore, divide <=,C3C,=// assessor5s time, and the #:I for '=? records, 99A hours for by <9'',?// and the 67+R for estimates over three times more ?= reports, and '.3 hours for =? T#$ is '=*'. internal effort.) #o, no meeting minutes. The total multiply ',/// by <'// for a ROI8* %The formula for ROI8 deployment hours for #-" total labor cost of <'//,/// is benefits less costs divided by +,, ;evel 9 are 3,?/B. plus <=/,/// in assessment fees costs times '//.) Therefore, ,ultiply 3,?/B by <'// and for a total assessment cost of first subtract the <9'',?// in that comes to <3?/,B//. <'=/,///. T#$ costs from the <=,C3C,=// >ssessment $reparation +osts* in T#$ benefits and divide the ;et5s estimate four pro4ects of Total #-"+,, +ost* Ta!e a results by the <9'',?// in T#$ deep breath and add the five people in '9 indoctrination costs and multiply by '// for <B'/,C// in total deployment courses at 3 hours each hich an impressive ROI8 of costs to the <'=/,/// in totals C3/ hours. ;et5s similarly ',9C'8. assessment costs for a total estimate four pro4ects of five #-"+,, cost of <?C/,C//. people in '9 response" SW-CMM conditioning courses at 3 hours, Total ;ife +ycle 6enefits* ;et5s each hich also totals C3/ @o , let5s examine the dynamics assume each of our four hours. Finally, let5s estimate of #-"+,, cost, benefit, and pro4ects also build '/,/// four pro4ects of five people in ROI analysis using Rachlin5s &3( #;O+ soft are products. ;et5s one =/ hour moc! assessment equations for 67+R and ROI8. also assume that each of our or t o 3/ hour moc! four pro4ects apply Inspections Deployment +ost %;evel 3)* assessments for total of ?// to satisfy their #-"+,, ;evel ;et5s begin by modeling the hours. @o , let5s add C3/ 9 goals. @o , e5re ready to deployment costs for indoctrination hours, C3/ begin estimating the benefits. implementing #-"+,, for response conditioning hours, ;et5s assume each of our four four pro4ects as a representative and ?// moc! assessment hours pro4ects saves an average of sample of a soft are producing for a total of ',?=/ hours. 3B,?AB maintenance hours by organi2ation. Rico &C( ma!es Finally, let5s multiply ',?=/ by performing Inspections for total the follo ing estimates* AA <'// for a total of <'?=,/// in maintenance savings of ''',=AA hours for A policies, 3A= hours assessment preparation costs. hours. @o , let5s assume our for 3= procedures, C'3 hours productivity doubles at #-" Total Deployment +osts * for 93 documents, 9/= hours for +,, ;evel 9 as reported by +ombine <3=C,?//, <3?/,B//, BA or! authori2ations, =A= Dia2 &A(, hich results in a per and <'?=,/// for a total #-" hours for ''A records, C== pro4ect savings of 3,C== hours +,, ;evel 3 and 9 hours for '9A reports, and 9/= for a total of '/,'BA deployment cost of <B'/,C//. hours for BA meeting minutes. development hours saved. >dd The total deployment hours for >ssessment +ost* The #:I the ''',=AA hours in #-"+,, ;evel 3 are 3,=C?. estimates that an assessment maintenance savings to the ,ultiply 3,=C? by <'// and requires up to 9,3/? hours of '/,'BA hours in development that comes to <3=C,?//. internal labor %not including the savings for a total of '3',A=3 assessors effort). Do ever, for hours saved at #-"+,, ;evel
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9. ,ultiply '3',A=3 by <'// to Total Deployment +osts* arrive at an estimated savings +ombine <3'?,9.A and of <'3,'A=,3//. <''3,/// for a total I#O .//' deployment cost of <99/,9.A 67+R* %The formula for 67+R for I#O .//' registration. is benefits divided by costs.)

ROI8* %The formula for ROI8 is benefits less costs divided by costs times '//.) Therefore, first subtract the <99/,9.A in I#O .//' costs from the <3,BB3,A// in I#O .//' Therefore, divide <'3,'A=,3// Total ;ife +ycle 6enefits* ;et5s benefits and divide the results by <?C/,C// and the 67+R for assume each of our four by the <99/,9.A in I#O .//' #-"+,, is '=*'. pro4ects also build '/,/// costs and multiply by '// for #;O+ soft are products. @o , ROI8* %The formula for ROI8 an impressive ROI8 of B9.8. e5re ready to begin estimating is benefits less costs divided by the benefits. ;et5s assume each CMMI costs times '//.) Therefore, of our four pro4ects has a 'C8 first subtract the <?C/,C// in increase in maintenance @o , let5s examine the dynamics #-"+,, costs from the savings, hich is consistent of +,,I cost, benefit, and ROI <'3,'A=,3// in #-"+,, ith I#O .//' experiences. analysis using Rachlin5s &3( benefits and divide the results ,ultiply =',?// maintenance equations for 67+R and ROI8. by the <?C/,C// in costs and hours by 'C8 for A,3B/ multiply by '// for an +,,I $olicies and $rocedures* maintenance hours saved per impressive ROI8 of ',99/8. ;et5s begin by modeling the pro4ect. ,ultiply A,3B/ by = for costs for implementing +,,I a total maintenance savings of ISO 9001 policies and procedures for four 3C,/?/ hours. @o , let5s pro4ects as a representative assume each of our four @o , let5s examine the dynamics sample of a systems pro4ects has a '98 increase in of I#O .//' cost, benefit, and engineering organi2ation. Rico productivity, hich is ROI analysis using Rachlin5s &3( &?( ma!es the follo ing consistent ith I#O .//' equations for 67+R and ROI8. estimates* +,,I ;evel 3 experience. ,ultiply C,/?? Deployment +osts* ;et5s begin requires 3,/.' hours to develop development hours by '98 for CA policies and procedures and by modeling the costs for I#O AA' development hours saved +,,I ;evel 9 requires 9,BB' .//' in a 3/"person soft are per pro4ect. ,ultiply AA' by = hours to develop '/' policies organi2ation. :l :mam5s &B( for a total development savings and procedures. #o, C,?A3 hours cost model results in 3,'?= of 3,A=A hours. @o , add the are required to develop +,,I hours to prepare for I#O .//' 3C,/?/ maintenance hours ;evel 3 and 9 policies and registration. ,ultiply 3,'?= by saved to the 3,A== development procedures. ,ultiply C,?A3 by <'// and that comes to hours saved for a total of <'// and that comes to <3'?,9.A. 3B,B3A total maintenance and <C?A,3//. Dalf of this is development hours saved. >ssessment +osts* ;et5s soft are engineering, hich Finally multiply the 3B,B3A estimate four pro4ects of five amounts to <3.9,'//. maintenance and development people at 93 hours each hich hours saved by <'// for a total +,,I :vidence of 0se* Rico totals A=/ hours to prepare for of <3,BB3,A// in savings by the assessment. ,ultiply A=/ &?( also ma!es the follo ing using I#O .//'. by <'// for a total of <A=,/// estimates* +,,I ;evel 3 in assessment preparation costs. 67+R* %The formula for 67+R requires '/,9/= hours to >dd a <=?,/// assessment fee develop '9? products for four is benefits divided by costs.) to the <A=,/// assessment systems engineering pro4ects Therefore, divide <3,BB3,A// preparation cost for a total and +,,I ;evel 9 requires by <99/,9.A and the 67+R for assessment cost of <''3,///. 3/,C99 hours to develop 3BC I#O .//' is ?*'. products for these pro4ects. #o,

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of '3',A=3 hours saved at >ssessment +ost* For our four +,,I ;evel 9. ,ultiply pro4ects of five people, let5s '3',A=3 by <'// to arrive at an estimate A9A hours for the plan estimated savings of and prepare for appraisal stage. <'3,'A=,3//. ;et5s estimate ',/'? hours for the conduct appraisal stage. 67+R* %The formula for 67+R >nd, let5s estimate '/A hours is benefits divided by costs.) for the report results stage. This +,,I Implementation +osts* Therefore, divide <'3,'A=,3// totals to ',BA/ hours. ,ultiply @o add <3.9,'// for +,,I by <3,9'C,CAC and the 67+R for ',BA/ by <'// for an internal ;evel 3 and 9 policies and +,,I is C*'. labor estimate of <'BA,///. procedures and <',C=',?C/ for ROI8* %The formula for ROI8 >dd an assessment fee of +,,I ;evel 3 and 9 products <A=,A'C for a total assessment is benefits less costs divided by for four pro4ects, hich is cost of <3=/,A'C. %>ssessment costs times '//.) Therefore, <',?9=,.C/ for soft are costs ere based on labor first subtract the <3,9'C,CAC in engineering. distributions from +arnegie +,,I costs from the >ssessment $reparation +osts* ,ellon 0niversity &.(.) <'3,'A=,3// in +,,I benefits ;et5s estimate four pro4ects of and divide the results by the Total +,,I +ost* Once again, ten people in 3/ indoctrination <3,9'C,CAC in +,,I costs and ta!e a deep breath and add the courses at 3 hours each hich multiply by '// for an <3,/B=,.C/ in total deployment totals ',A// hours. ;et5s impressive ROI8 of =3C8. costs to the <3=/,A'C in similarly estimate four pro4ects assessment costs for a total RECOMMENDATIONS of ten people in 3/ response +,,I cost of <3,9'C,CAC. conditioning courses at 3 hours, each hich also totals ',A// Total ;ife +ycle 6enefits* ;et5s This is an important part of the article. It is one of discovery, hours. Finally, let5s estimate assume each of our four reflection, and future direction* four pro4ects of ten people in pro4ects also build '/,/// one =/ hour moc! assessment #;O+ soft are products. ;et5s $inpoint Digh"ROI Factors* It5s or t o 3/ hour moc! also assume that each of our unnecessary to identify every assessments for total of ',A// four pro4ects apply Inspections cost and benefit factor hen hours. @o , let5s add ',A// to satisfy their +,,I ;evel 9 producing early, top"do n indoctrination hours, ',A// goals. @o , e5re ready to estimates of ROI. The la of response conditioning hours, begin estimating the benefits. diminishing returns applies. and ',A// moc! assessment ;et5s assume each of our four There are only a fe significant hours for a total of =,?// hours. pro4ects saves an average of drivers of costs and benefits. Finally, let5s multiply =,?// by 3B,?AB maintenance hours by <'// for a total of <=?/,/// in performing Inspections for total Target Digh"ROI >pproaches* This article is sufficient to point assessment preparation costs. maintenance savings of ''',=AA out approaches to #$I hich Dalf is soft are engineering, hours. @o , let5s assume our yield the greatest benefits at the hich amounts to <3=/,///. productivity doubles at +,,I least possible cost. >nd, it ;evel 9 as ith the #-"+,,, Total Deployment +osts* reminds the reader that the best hich results in a per pro4ect +ombine <',?9=,.C/ and approaches are yet to come. savings of 3,C== hours for a <3=/,/// for a total +,,I total of '/,'BA development ,inimi2e +ost Incurrence* ;evel 3 and 9 deployment cost hours saved. >dd the ''',=AA +hoose lo "cost, lo "ris! of <3,/B=,.C/ for soft are hours in maintenance savings to approaches to #$I. 0sing lo " engineering. the '/,'BA hours in development savings for a total 9/,?9B hours are required to develop +,,I ;evel 3 and 9 products. ,ultiply 9/,?9B by <'// and that comes to <9,/?9,B//. Dalf of this is soft are engineering, hich amounts to <',C=',?C/.
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%+ontract @umber #$/B//" cost solutions to #$I guarantees a <=/6 Fapanese corporation .?"D"=///). Rome, @I* >ir successful, early returns. design a +,, self assessment Force Research ;aboratoryJ tool in '..9, designed a soft are >void +ost"Intensive Information Directorate cost model for 9B !inds of 0.#. >pproaches* This article %>FR;7 IF), Data and @avy fighter aircraft, helped sufficiently exposes the >nalysis +enter for #oft are reengineer 9A logistics depots for approaches to #$I hich are %D>+#). >mericaEs largest foreign military sure to drain your http*77 .dacs.dtic.mil7tech customer, played !ey roles in the organi2ation5s assets. s7abstracts7rico.html design of 0.#. military intelligence satellites, and has &=( Dumphrey, -.#. %3///). The >void Training"Intensive supported 'C soft are team soft are processsm >pproaches* Training"intensive %T#$sm). %+,07#:I"3///" engineering process groups approaches are generally TR"/39). $ittsburgh, $>* unsuccessful in the mar!etplace %#:$Gs) over the last decade. #oft are :ngineering because of their great expense, DeEs been an international !eynote Institute. immense difficulty, and lac! of spea!er, published numerous sufficient tools for deployment articles, and holds a 6.#. in &C( Rico, D. F. %n.d.73//'). #:I +omputer #cience and ,aster5s beyond the classroom. level 3 thru C* +ost model Degree in #oft are :ngineering &--- document(. 0R; ;oo! for ;o "+ost >utomated % ith '. years of experience). http*77davidfrico.com7s " #olutions* The future of #$I cmm"costpdf.htm isn5t in large bureaucratic and CONTACT INFORMATION &A( Dia2, ,., K #ligo, F. %'..B). manually"intensive approaches Do soft are process to #$I. The future is in lo " daveHdavidfrico.com improvement helped cost, non"invasive automated http*77davidfrico.com motorola. I::: #oft are, '=% tools that perform complex C), BC"?'. BIBLIOGRAPHY tas!s in spite of us. &'( Rico, D. F. %3//3). #oft are &B( :l :mam, L., K 6riand, ;. +. 0se $rofessional ,ethods for %'..B). +osts and benefits of process improvement* >naly2ing ROI* This article soft are process ,odeling return on guides readers to ard relevant improvcment %I:#:"Report investment %ROI). 3//3 methods in ROI analysis and /=B..B7:). Laiserslautern, #oft are :ngineering $rocess estimation. Do ever, even the Germany* 0niversity of Group +onference %#:$G process of ROI is sub4ect to Laiserslautern, Fraunhofer" 3//3), $hoenix, >ri2ona and lo "cost automation. ;oo! for Institute for :xperimental 3//3 International lo cost automation to ROI #oft are :ngineering. +onference on #oft are embedded in eb"based pro4ect $rocess Improvement %I+#$I &?( Rico, D. F. %n.d.73//'). management tools. 3//3), -ashington D.+. +apability maturity model http*77davidfrico.com7sepg/3.pdf integration* +,,I BIOGRAPHY http*77davidfrico.com7dacs/3.pdf introductory overvie &--- document(. 0R; David F. Rico is a #$I consultant &3( Rachlin, R. %'..B). Return on http*77davidfrico.com7cmmipd investment manual* Tools and speciali2ing in cost and benefit f.htm applications for managing analysis. De helped design a financial results. >rmon!, &.( +arnegie ,ellon 0niversity <3C/, soft are engineering @I* ,. :. #harpe. %3//'). #tandard +,,I#, toolset and the spacecraft appraisal method for process soft are for @>#>Es <3/6 space &9( Rico, D. F. %3///). 0sing cost improvement %#+>,$I#,), station in the '.?/s, performed benefit analyses to develop Mersion '.'* ,ethod soft are process graduate studies under #:I ;evel definition document improvement %#$I) strategies C space shuttle managers, helped

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+,07#:I"3//'"D6"//'. $ittsburgh, $>* #oft are :ngineering Institute %#:I).

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