DEVELOPMENT METRICS
Proper metrics need to be selected. Improper metrics can optimize the performance of a product development sub-process at the expense of global sub-optimization. Improper metrics can require significant effort to collect data and develop without providing meaningful information of any real benefit. Criteria for effective metrics are:
- Keep them simple
- Keep them to a minimum
- Base them on business objectives and the business process - avoid those that cause dysfunctional behavior
- Keep them practical - avoid metrics that require significant additional data collection and effort
There are four basic types of metrics for product development:
1. Process metrics - short-term metrics that measure the effectiveness of the product development process and can be used to predict program and product performance
- Staffing (hours) vs. plan
- Turnover rate
- Errors per 1,000 lines of code (KSLOC)
2. Program/project metrics - medium-term metrics that measure effectiveness in executing the development program/project
- Schedule performance
- Program/project cost performance
- Balanced team scorecard
3. Product metrics - medium-term metrics that measure effectiveness in meeting product objectives - technical performance measures
- Weight
- Range
- Mean time between failure (MTBF)
- Unit production costs
4.
- Breakeven time
- Percent of revenue from products developed in last 4 years
- Proposal win %
- Development cycle time trend (normalized to program complexity)
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