Proficience - SQAM - Module 5

8/14/2019 Proficience - SQAM - Module 5

1/18

SQAM Course, Proficience, IIScSQAM Course, Proficience, IISc 11

Module 5Module 5Cost of Software QualityCost of Software Quality


2/18


Because the main language [ofBecause the main language [of

Corporate Management] wasCorporate Management] was

money, there emerged the conceptmoney, there emerged the concept

of studying quality-related costs asof studying quality-related costs as

a means of communicationa means of communicationbetween the quality staffbetween the quality staff

departments and the companydepartments and the company

mangers Joseph Juranmangers Joseph Juran

It is always cheaper to do the jobIt is always cheaper to do the job

right the first time Philip Crosbyright the first time Philip Crosby


3/18


Business ContextBusiness Context

Costs usually visible:Costs usually visible:- Customer problem reportsCustomer problem reports- Law suitsLaw suits- QA and QC costsQA and QC costs

Costs usually invisible:Costs usually invisible:- Poor team workPoor team work- Lack of planningLack of planning

- Lack of trainingLack of training

- Poor problem handlingPoor problem handling- Lack of good practices and standardsLack of good practices and standards- Ineffective project performanceIneffective project performance


4/18


Total Quality ManagementTotal Quality Management

Quality ImprovementQuality Improvement

in Demandin Demand in Costsin Costs

Better ProfitabilityBetter Profitability


5/18


Cost of Correcting DefectsCost of Correcting Defects

The thumb rule is that the nearer the failure to theend user, the more expensive it is to correct.


6/18


7/18


Cost of Quality CategoriesCost of Quality Categories

Category Definition Typical Costs forSoftware

Internalfailures

Quality failuresdetected prior toproduct shipment

Defect management,rework, retesting

Externalfailures

Quality failuresdetected after productshipment

Technical support,complaintinvestigation, defectnotificationAppraisal Discovering the

condition of the

product

Inspection, Testing andassociated activities,

product quality audits

Prevention Efforts to ensureproduct quality

SQA administration,process improvements,metrics collection andanalysis


8/18


Traditional View on Quality CostsTraditional View on Quality Costs

0% 100%Defective Rate

Quality

Cost in $

Failure cost

Control cost

Total cost

MinimumOptimal

Acceptable Quality Level


9/18


Knoxs Theoretical ModelKnoxs Theoretical Model

0

10

20

30

40

50

60

C

ostasaPercentofDevelopment

1 2 3 4 5

SEI CMM Level

Prevention Appraisal Int Failure Ext Failure TCoSQ


10/18


Knox model applicationKnox model application

Raytheons Equipment Division (RESRaytheons Equipment Division (RES))

Level 1 CoSQ between 55-67% ofLevel 1 CoSQ between 55-67% of

development costdevelopment cost

Level 3 CoSQ around 40% total projectLevel 3 CoSQ around 40% total project

costcost

ToSQ at 15% development cost, ReworkToSQ at 15% development cost, Rework

at


11/18


RES JourneyRES Journey

0

10

20

30

40

50

60

70

Percentageo

ftotalprojectcost

Year

CMM level 3

Start of intiative

CMM level 1

TCoSQ

Prevention

ReworkAppraisal

Cost of

Conformance

Rework

87 88 89 90 91 92 93 94 95 96


12/18


Potential Benefits of CoSQPotential Benefits of CoSQ

Justification for quality initiativesJustification for quality initiatives

Basis for budgeting the quality operationBasis for budgeting the quality operation

Compare process improvements andCompare process improvements and

identify the most cost effective onesidentify the most cost effective ones One measure of comparing the success ofOne measure of comparing the success of

projectsprojects

Identify quality improvement candidatesIdentify quality improvement candidates Reduce the quality costs by altering theReduce the quality costs by altering the

process in a particular projectprocess in a particular project


13/18


CoSQ ChartCoSQ Chart

CoSQ Chart

Quality Cost


14/18


Whats required for CoSQWhats required for CoSQ

implementation?implementation? Where do we stand?Where do we stand? Management commitmentManagement commitment Piloting and Educate the teamsPiloting and Educate the teams Establish a CoSQ measurement systemEstablish a CoSQ measurement system Trend analysisTrend analysis Baseline and annual improvement goalsBaseline and annual improvement goals Collect and analyze dataCollect and analyze data Monitor on every project and take correctiveMonitor on every project and take corrective

action immediatelyaction immediately Publish the results and get others involvedPublish the results and get others involved


15/18


CoSQ ReportCoSQ Report

Cost

Total

Prevention

Appraisal

Failures

Cost% ofTotal

EffortCostCategory


16/18


Presenting to the ManagementPresenting to the Management

1. CoSQ as percentage of Sales

2. Total Quality Costs as ratio of Profit

3. Rework Cost as a percentage of Profit

4. CoSQ Vs Defect Density over a period


17/18


Case StudyCase Study

CTS-CoSQ case study


18/18


ReferencesReferences

Principles of Quality Costs, 3Principles of Quality Costs, 3rdrd Edition, JackEdition, Jack

CampanellaCampanella

Quality Control Hand book, 5Quality Control Hand book, 5thth Edition,Edition,

Juran.Juran. Using the cost of quality approach forUsing the cost of quality approach for

software, H.Krasner, 1998, Crosstalk,software, H.Krasner, 1998, Crosstalk,

Vol.11, No.11Vol.11, No.11

CoSQ: A means of promoting SPI, Houston,CoSQ: A means of promoting SPI, Houston,

D., and Keats, J.B.D., and Keats, J.B.

Documents

Proficience - SQAM - Module 5