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Sample Cost/Benefit Analysis of adding Human Factors Tasks to a Software Development Project

Sample Cost/Benefit Analysis of adding Human Factors Tasks to a Software Development Project. Adapted from: Mantei, Marilyn M. and Teorey, Toby J., “ Cost/Benefit for Incorporating Human factors in the Software lifecycle ”, ACM Communications , April 1988, Vol. 31 No. 4, pp 428-439.

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Sample Cost/Benefit Analysis of adding Human Factors Tasks to a Software Development Project

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  1. Sample Cost/Benefit Analysis of adding Human Factors Tasks to a Software Development Project Adapted from: Mantei, Marilyn M. and Teorey, Toby J., “ Cost/Benefit for Incorporating Human factors in the Software lifecycle”, ACM Communications, April 1988, Vol. 31 No. 4, pp 428-439

  2. Cost 1. Human factors Lab Set Up Lab design and equipment selection: 160 hrs @ $35/hour $5,600 Carpenters and electricians 80 hrs @ $25/hour $2,000 Video cameras, VCRs, one way mirror $12,400 TOTAL : $20,000 Cost

  3. Cost 2. User Interviews 10 interviews for 1 hour @ $25/hour $ 250 Interviewer @ $35/hour: 16 hours designing interview 10 hours conducting interview 28 hours analysis results $ 1,890 3 support staff @ 5 hours each @ $15/hour $ 225 Videotapes: $ 60 TOTAL: $ 2,425 Cost

  4. Cost 3. User Surveys / Questionnaires Development of survey: 40 hrs @ $35/hour $1,400 Pilot testing: 40 hrs @ $35/hour $1,400 Distribution and collection: 20 hrs @ $15/hr $ 300 Responding: 80 users for ½hr @ $25/hour $1,000 Coding and entering data: 20 hrs @ $35/hour $ 100 Analyzing results: 40 hrs @ $35/hour $1,400 Computer time $ 100 Supplies and duplicating costs $ 100 TOTAL: $6,000 Cost

  5. Cost 4. Usage Study, Simulation or Prototype test Development of survey: 40 hrs @ $35/hour $1,400 Pilot testing: 40 hrs @ $35/hour $1,400 Running Test: 40 hrs @ $35/hour $1,400 Subjects: 10 @ 2 hrs @ $25/hour $ 500 Analyzing results: 40 hrs @ $35/hour $1,400 Videotapes: $ 120 TOTAL: $6,220 Cost

  6. Cost 5. Style Guide Author: 240 hrs @ $35/hour $8,400 Committee: 4 @60 hours @ $35/hour $8,400 TOTAL: $16,800 Cost

  7. Cost 6. Purchasing of User Interface Management System Reviewing packages: 160 hrs @ $35/hour $5,600 Cost of average package: $10,000 TOTAL: $15,600 Cost

  8. Cost 7. Prototype Construction ( does not include design ) Screen Layouts: 80 hours @ $35/hour $2,800 Screen Transitions: 80 hours @ $35/hours $2,800 TOTAL: $5,600 Cost

  9. Cost 8. Prototype Change in Response To Testing Screen Layouts: 4 hours @ $35/hour $140 Screen Transitions: 4 hours @ $35/hours $140 TOTAL: $280 Cost

  10. Benefit 1. Decreased Training Typical 1 week training course reduced by 25% or a savings of 10 hours 250 employee users @ an Hourly rate of $25: 250 employees * 10 hours * $25 = $62,500 in first yr TOTAL: $62,500 Benefit

  11. Benefit 2. Decreased Errors 250 Users 1.5 errors eliminated per user per day 230 work days per year 2 minutes in recovery time per error Hourly rate of $25 250 Users * 1.5 errors * 230 days * $0.833/error = $71,846 per year TOTAL: $71,846 Benefit

  12. Benefit 3. Increased productivity 250 Users 60 screens per day 230 days per year Processing time per screen reduced by 1 second Hourly rate of $25 250 Users * 60 Screens * 230 days * 1/3600 hrs * $25 = $23,958 per yr TOTAL: $23,958 Benefit

  13. Benefit 4. Decreased Late Design Changes Changes made early cost ¼ of changes made after implementation 20 changes made early 1 day per change Hourly rate of $35 Early change cost = 20 changes * 8 hrs * $35 = $5,600 Late Change cost = 4 * early change cost = $5,600 Savings = Late change cost – early change cost = 16,800 in first yr TOTAL: $16,800 Benefit

  14. Conclusions • Costs = 20,000 + 2,425 + 6,000 + 6,220 + 16,800 + 15,600 + 5,600 + 280 = $72,925 • Benefits = 62,500 + 71,846 + 23,958 + 16,800 = $ 175,104 Savings of 102,179

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