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Module 5Module 5Cost of Software QualityCost of Software Quality
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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
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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
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Total Quality ManagementTotal Quality Management
Quality ImprovementQuality Improvement
in Demandin Demand in Costsin Costs
Better ProfitabilityBetter Profitability
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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.
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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
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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
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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
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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
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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
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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
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CoSQ ChartCoSQ Chart
CoSQ Chart
Quality Cost
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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
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CoSQ ReportCoSQ Report
Cost
Total
Prevention
Appraisal
Failures
Cost% ofTotal
EffortCostCategory
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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
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Case StudyCase Study
CTS-CoSQ case study
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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.
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