Honourcode Inc Systems Engineering Return on Investment SEROI

Honourcode, Inc. Systems Engineering Return on Investment (SE-ROI) Dr. Eric Honour +1 (850) 479 -1985 ehonour@hcode. com This presentation contains slides that have been approved for public dissemination and use. Users may extract slides from this set, including moving them to a different background, but only provided that the attribution line on each slide is retained. All SEROI data has been corrected for the effect of different programs using program characteristic parameters; contact Honourcode at Better. SE@hcode. com to apply these corrections to your data. Funding provided by • Honourcode, Inc. • DASI (Univ of South Australia) 1

Heuristic Claim of SE n Better systems engineering leads to n n n Better system quality/value Lower cost Shorter schedule Traditional Design Risk SYSTEM DETAIL PRODUCTION DESIGN INTEGRATION Time TEST Risk “System Thinking” Design Saved Time/ Cost Time Need to Know: How Much Is Enough? Honourcode, Inc. Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 2

Major Results n Strong quantified relationship between SE and program success (Correlation r 2 80%) n n No correlation between SE activities and technical quality n n Over-emphasis on requirements defeats creating better systems, even within the same cost and schedule Estimation method now available for optimum program SE effort, based on program characteristics n n Optimum SE activity for median programs is 14. 4% of program cost Median programs use much less than the optimum; ROI to reallocate additional effort into SE is 3. 5: 1 Relationships also exist for eight subordinate SE activities such as Mission/Purpose Definition, Requirements Engineering, System Architecting, etc. Characteristics modify the optimum between ~8% and ~19% Optimizing level of Technical Leadership/Management simultaneously optimizes cost, schedule, and stakeholder acceptance. Honourcode, Inc. Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 3

Schedule vs. SE Effort Honourcode, Inc. Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 4

Cost vs. SE Effort Honourcode, Inc. Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 5

Return on Investment Overrun 53% ROI 7: 1 Overrun 24% ROI 4. 6: 1 Overrun 7% ROI 1. 1: 1 Overrun 3% ROI 0 Optimum SEE=14. 4% Overrun 15% ROI 3. 5: 1 Median of programs Honourcode, Inc. Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 6

Breakout by SE Activities MD RE SA SI VV Mission/Purpose Definition Requirements Engineering System Architecting System Integration Verification & Validation Honourcode, Inc. TA Technical Analysis SM Scope Management TM Technical Leadership/Management Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 7

Breakout by Successful (~on cost) • More mission/purpose defn • More tech leadership/mgmt • More Systems Engineering Honourcode, Inc. Poor (overran cost) • More system integration • More verif & valid • Less Systems Engineering Honour, EC, Systems Engineering Return on Investment, Ph. D thesis, Univ South Australia 2013 8