Optimizing Cost of Software Quality

Karthik Jeganathan, B John , Suresh Ramanan

Abstract CoQ Components COQ Model

There have been a lot of challenges in monetizing the quality and failure cost generically due to the nature of software industry. An organization must monetize the benefits and cost of improvement programs.

The cost of software quality tries to quantify what is the cost incurred for quality as against each dollar that has been spend for development. Generic industry trend shows about 40% towards fixing and controlling quality; the optimal suggested industry benchmark is around 20-25

CoQ helps to quantify soft costs based on level of data tracking done in the organization

Cost Of Quality (CoQ) includes all costs incurred in the pursuit of quality or perform quality related work. Cost of Quality helps to measure and report soft costs and reflects the areas of opportunities for improvement.

References

Introduction

The Cost of Attaining Quality (Prevention & Appraisal Costs) - This includes the costs of having a quality system in place even if no defects occur.

The Costs Attributable to Failure (Poor Quality - Internal and External Failure Cost ). This includes the costs associated with unacceptable products.

Cost of core effort are directly attributed towards making a product or delivering a service. First time cost incurred in ensuring that service/requirements are met.

Industry frameworks are adopted based on return oninvestment (ROI) realization. The below matrix outlines the CoQ factors and optimization levels for each based on frameworks based on priority and need of the organization.

CoQ is computed either based on effort or based on activities depending on the operating model; the entire exercise starts with assessment of current activities for a specific project rolling under a program. During the measurement phase the activities are classified under PAF (Prevention-Appraisal-Failure) criteria and summed up to check the overall cost of quality as against the project cost.

A Path to Delivery Excellence

Total Cost Of the Project:Efforts to build the software the cost of making the software (SDLC Cost)Efforts to remove or reduce defects the cost of quality in the software (Cost of Quality)

CoQ identifies the cost due to inefficiencies within an organization that could be overridden by implementing the measurement system. Optimizing CoQ with help to improve the first pass yield for the product and results in enhanced customer satisfaction. This model helps to optimize the investment levels for quality initiatives and recommends the appropriate industry framework that could help in aligning and optimizing the total cost of ownership towards growth and enablement of the enterprise. 0

CoQ OPTIMIZATION TOOLS

Shift Left Effectiveness Scorecard

Defect Management Tools Metrics Management

COQ EQUATION

Conclusion

ROI FOR CoQ

CoQ FRAMEWORK