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Cost

of Quality

Asad-Ur-RehmanChef Operating OfficerPlexus (Pvt) Limited

asad.rehman@plexuspk.com

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Find Out . . .

Does higher quality means higher cost ?

Does higher quality takes longer time todevelop?

Is there any relation between high qualityand business performance?

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Traditional concepts of Quality

Quality is defined by producer, not the customer.

Quality relates only to the final product.

Software development (coding) is the biggestcontributor to defect.

Improving Quality always cost more money.

Quality is responsibility of QA dept.

Concepts of Quality

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Concepts of Quality

Real concepts of Quality

The customer (user) defines Quality.

Quality is determined by every process, sub-product

and support function.

Software defects are traceable to the requirements asmajor contributor, and can occur during any phase.

Improving Quality will result in lower life cycle & cost.

Quality is everyone's job, on every task they perform.

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Organizations need to be aware of the costsassociated with making errors as a way ofidentifying areas for improvement.

Every time something is done and not donecorrectly, money is lost due to rework.

It is also a powerful tool for identifying

waste either iso of effortso of time

o or resource

Cost of Quality

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The cost of quality is essentially a tool formeasuring the cost to an organization of not gettingthings right first time.

A key consideration in any analysis of cost of qualityis its visibility.

It is the visibility gained through CoQ analysis that

enables the project team to focus their attention onthose activities which discovers and correct the rootcause of software defects.

Cost of Quality

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Cost of Quality

Quality is Free; slogan given by Philip Crosby.

Everyone speaks of Crosbys concept, but no oneactually believes software equality is free.

The real issue is of investment, not the cost.

The cost of quality generally focuses on three majorcomponents:

o Cost of identification of defectso Cost of correcting defectso Cost of reducing defects

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Cost of SW Quality

Rs.50

0

Rs.25

0

Rs.50

0

Rs.25

0

Cost of Software Quality represents all costs thatorganization incurs from having to repeat a process(more than once) in order to complete the work as perrequirements.

CoSQ = Cost Conformance + Cost of Non-Conformance

Prevention Appraisal Failures

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Cost of SW Quality

Cost of Conformance Cost of Non-Conformance

Prevention AppraisalInternalFailure

ExternalFailure

CoSQ

ProcessesDevelopmentStaff TrainingPlanning

TestingInspectionAudits

Defect reportRe-inspectionRe-testingRe-work

Product returned &replacementWarranty Expenses

Loss of market shareCustomer dissatisfaction

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Components of CoSQ

CoSQ = Cost Conformance + Cost of Non-Conformance

The cost of quality is essentially a tool for measuring the cost

to an organization ofnot getting things right first time

Doing my workright first time

Correction ofpoor work

CoSQ = 80 hrsDev 60 hrsQA 20 hrs

Dev 12 hrsQA 06 hrs

Dev 08 hrsQA 04 hrs

CoSQ = 80 hrsDev 60 hrsQA 20 hrs

Dev 20 hrsQA 10hrs

Dev 12 hrsQA 08 hrs

Dev 09 hrsQA 05 hrs

21-Dec 24-Dec 30-Dec 08-Jan

144 hrs

110hrs

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Economics SW Quality

You must put a quality product into test before youcan expect to get out one, otherwise rework will bevery high.

Software quality largely concern with defect preventionand appraisal.

Finding a requirement error in test can be veryexpensive. Finding a code error during code review will

generally cost much less.

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Quality Cost Analysis

The objective of the quality cost analysis is not toreduce the cost, but to make sure that the costspent are the right kind of cost and that maximizebenefit derived from that investment.

Cost benefit analysis can be used for almostanything, it is most commonly done on financialquestions.

The cost of quality is a tool for measuring the cost,an organization has to bear for not getting thingsright first time.

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Quality Cost Analysis

0 %10

20

30 %40

50

60 %

1 2 3 4 5

Prevention (QA)Appraisal (QC)

Int FailureExt Failure

Total Cost of Quality

Years

Percentage

oftotal

projectcos

t

CMM Level-3

Stephen T. Knox

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Quality Cost Analysis

1

5

10

1

2 3 4 5 6 7

CoSQ

SoftwareQuality

Business

Performance

Years

ImprovementMultiplier

Herb Krasner