IT QM Bratislava IT QM Part1 Lecture 4 Dr. Withalm 13.09.2015.

IT QM BratislavaIT QM Bratislava

IT QM Part1 Lecture 4IT QM Part1 Lecture 4

Dr. Withalm 21.04.23

IT QM Bratislava21.04.23 Dr.Withalm2

Lectures at the University of Bratislava/Spring 2014

27.02.2014 Lecture 1 Impact of Quality-From Quality Control to Quality Assurance

06.03.2014 Lecture 2 Organization Theories-Customer satisfaction-Quality Costs

13.03.2014 Lecture 3 Leadership-Quality Awards

20.03.2014 Lecture 4 Creativity-The long Way to CMMI level 4

27.03.2014 Lecture 5 System Engineering Method-Quality Related Procedures

03.04.2014 Lecture 6 Quality of SW products

10.04.2014 Lecture 7 Quality of SW organization


Today’s Agenda

Quality Costs

Repair/Fix and Correct


Conclusion of Part 1/1

Impact of Quality Quality wins Quality deficiencies

Standards Quality definition

Evolution from quality control to TQM Shewhart, Deming, Juran, Feigenbaum, Nolan,

Crosby, Ishikawa Evolution of organization theory

i.e. Taylorism, System Dynamics, System Thinking, Quality Assurance

Product liability Customer satisfaction

Criteria, two-dimension queries, inquiry methods


Conclusion of Part 1/2

Quality costs Failure prevention, appraisal, failure, conformity, quality

related losses, barriers Leadership

Behavior, deal with changes, kinds of influencing control, conflict resolution, syndromes to overcome when introducing changes

Audits Quality awards Creativity techniques

Mind Mapping, Progressive Abstraction, Morphological Box, Method 635, Synectics, Buzzword Analysis, Bionic, De Bono

Embedded Systems FMEA-Failure Mode Effect Analysis


Quality Costs/1

Primarily Quality Costs summarized error costs In order to measure the effectiveness of the manufacturing

process In the beginning of the industrial age quality control focused on

Erroneous products The primary category of he classical quality costs

Due to Shewhart’s – and especially – Deming’s initiative Failure prevention becomes more and more important

Failure prevention by establishing and applying respective processes

On the other hand it was always necessary To prove the effectiveness of the manufactured products

By respective tests i.e. admission of facilities and devices The third category of the classical quality costs


Failure prevention costs:

Costs which develop by measures, which serve the

fault prevention.

Appraisal costs:

Costs which develop by examinations.

Failure costs (internally/externally):

Costs, which result internally, due to errors - or which

result externally.

Quality Costs/2


Quality Costs/3

For contempory quality management it is essential To prove that increasing of failure prevention costs is

implying a sharp decrease of error costs That is the most severe challenge of quality costs


Quality Costs/4Failure prevention costs

Including all costs which support the prevention of failures Personal costs for quality managers and quality responsible

persons within projects Establishing of respective processes

i.e. SW development process, procurement process Quality relevant measures

i.e. reviews, prototypes, tests (unit, integration), CM, QFD, RE Suggestion Scheme Internal audits and assessments

Revealing weaknesses in order to improve processes Establishing and provision of project controlling data base

Measuring metrics in order to improve processes


Quality Costs/5External failure costs

Costs for liability issues Depending on SIL: but generally can produce

astronomical costs Costs for warranty

In worst case the status must be established before the system was deployed

Different departments are involved Service department tries to fix the error In worst case development department must be

involved Lost customer, image, etc.


Quality Costs/6Internal failure costs

The later in the development process they are detected the more expensive is their fixing

In the phase where errors are revealed following tasks must be performed: Evaluate from which phase the error originates Correct the error Establish new test cases Update all respective phase results (documents,

source code, test cases,…) Perform regression tests CM must be updated


Quality Costs/7Appraisal costs

Are more or less neutral costs All error prevention costs can only minimally reduce

appraisal costs Typical appraisal costs arise

System and acceptance tests These tests are usually defined by contracts

Metrology equipment i.e. calibration Mystery calls and mystery shopping

Own personal requests services-unknown by other departments-many departments may be involved

Appraisal costs may be extremely expensive in specific cases: high costs for test equipment

i.e. derailing system for railways


Quality Costs/8Open Issues of classical Quality Costs/1

Inheritance from Taylorism Collection of Costs View Period Assignment Representation Introduction Strategy Barriers which must be overcome


Quality Costs/9Inheritance from Taylorism

Quality control was an isolated discipline Focusing only on detecting errors

Aligned mainly on production/manufacturing requirements Accounting was established with respective cost centers,

cost categories Currently supported by ERP systems as SAP, Oracle

Separation in three quality cost categories followed later


Quality Costs/10Collection of Quality Costs

By different departments i.e. QM, Accounting, Service Department

At different milestones Depending on the assigned cost category

More frequently/rarely Business processes for collecting quality costs must be

assessed and improved


Quality Costs/11View Period

Comes also from Taylorism Errors originally were only detected during the quality control All other implications i.e. liability, warranty were not considered at

all They were also collected but assigned to other/wrong cost

categories respectively cost centers In the mean time strong improvements were accomplished

Nevertheless some weaknesses remain: Warranty is very dynamic Borders between departments When finishes the product life cycle Liability costs may be huge

But as suing tends to last years doubts arise if all costs are correctly assigned


Quality Costs/12Assignment/1

There are a lot of problems to assign quality related costs to the right cost center See example with liability

But it‘s also challenging to assign it correctly to quality cost category i.e. prevention, appraisal, error

Further problem is the right assignment to the department which caused the cost

Take into account: you must meet the right cost category and the right cost centre This process must always be under examination

Only with one wrong assignment the trust into Quality Cost is lost


Quality Costs/13Assignment/2

Activities Failure Prevention Appraisal Internal Failure External FailureIdentification of the possible ß-sites (friendly Customer)

Clarifying/negotiation with that ß-sites

Training of the personnel Distribution/Deployment of the development version

Implementation

Start-up

Monitoring

Establishing of Modification Reports

Evaluation of the reports

Revealing of Errors

Correcting of Errors

Redesign

…

….


Quality Costs/14Representation/1

Failure prevention costs are an investigation in order To ensure the future of the company Improving the competitiveness

Customers are satisfied: see Deming Chain Reaction Unfortunately only monetary amounts are presented as quality

costs Managers don’t differentiate between the quality cost categories

The so called “good” quality costs i.e. failure prevention costs should be increased in order to sharply decrease the “bad” quality costs i.e.

(internal/external) failure costs


Quality Costs/15Representation/2


Quality Costs/16 Business Process /1

Motivation of employees Definition of terms Collection of Quality Costs Feed Back to managers and employees Improvement activities


Quality Costs/17 Business Process /2Motivation of Employees

All concerned activities are time consuming Usually project managers are focusing on concrete

project activities as planning, monitoring,… Ongoing information of all departments about this issue

Recommended together Both managers and employees must have the insight

Failure costs will endanger the success of their company

Correct application of the business process is requested For revealing all causes for failures


Quality Costs/18 Business Process /3Definition of Terms

Cost categories, cost centers, cost units must be defined exactly

Allocation rules Difference between origin of failures and their

detection Which department collects which data

Is the reporting balanced Independent steering group should be established

Are results proven Also by this independent steering group


Quality Costs/19 Business Process /4Collection of Quality Costs

Define exact dates i.e. milestones of the project or periodic dates

(monthly, quarterly) Establish an adequate database to enter these data

i.e. in Part 2 Proweb will be briefly introduced Responsibility for collection must be clearly defined

During SW development respective QRP (Quality Responsible Person)

After acceptance test it must be defined: It‘s a challenge as projects comes out of sight of

project managers Costs will be collected either by a service

organization or an other department


Quality Costs/20 Business Process /5Feed Back to Employees and Managers

Either at management review (see ISO 9000) or at periodic times (monthly, quarterly) Topics are either projects or quality costs of the whole

business unit In the case of management review:

Managers are asked about quality deficiencies Implying that managers are well informed about these

issues In the case of periodic reporting

Both employees and managers are informed by quality managers about these issues

Rough ideas about improvements will be presented


Quality Costs/21 Business Process /6Improvement Activities

Each improvement activity must be explained by analysis of failures cases See measurement and failure analysis in ISO 9000 and CMMI

Analysis bases on measurements recorded in a respective repository/data base In SW projects: at each milestone metrics will be recorded in the

repository i.e. how many failures (origin/detection phase), detected by

reviews/tests An improvement activity diagram will be established

Each activity itself is performed as a project Responsible persons Assigned resources Phases and milestones

Note: programs of such improvement activities will be checked by ISO 9000 and CMMI assessments


Quality Costs/22Barriers which must be overcome/1

% Problem ( repeated denomination possible)

58 To large work and cost

34 Lack of time

28 Unclear proceeding

21 Advantages are not convincing


Quality Costs/23Barriers which must be overcome/1 Too large work and cost

Technical personnel usually doesn‘t like administrative activities Entering of data must be facilitated and – if possible –automated The rules of assigning quality costs must be facilitated and –if

possible- automatic checks (plausibility) should be provided Personnel must be responsible – recommended QRP respectively

the quality manager These persons must be trained

Omit too many details


Quality Costs/24Barriers which must be overcome/3Lack of Time

During project planning time must be foreseen Project manager is responsible for entering these data

QRP must escalate in case of not existing quality data


Quality Costs/25Barriers which must be overcome/3Unclear Proceeding

The most severe problem: Costs will be gathered and months later – if ever-

concerned personnel gets a feed back Training and motivation is essential to overcome

Doubting both on the process and on the report Process must be clearly defined and also the target


Quality Costs/26Barriers which must be overcome/4Advantages are not convincing

Prepare success stories and present them on motivation events Improvement action which brought

measurable/immeasurable success Admit also some weaknesses Focus on the essential target

Increasing of failure preventions costs enabled a sharp decrease of failure costs

Increasing the profitability of the company and ensuring jobs


Quality Costs/27Process Related Costs/1Conformity Costs/1

Especially in SW engineering fulfilling of requirements has the highest priority

Costs for all tasks / activities which support these endeavors are called conformity costs Are we developing the right requirements? Are requirements contradictory? Reviews of user requirement specification with all

stake holders Establishing of specific test cases for the system test

by a specific test team Developing of prototypes Establishing of specific test cases of the acceptance

test Recommended by the end user


Quality Costs/28Process Related Costs/2Conformity Costs/2

Are we developing correctly Respective reviews during the inner phases as design

and implementation Respective test levels as unit tests and integration

tests Are non functional requirements met Are business oriented requirements met What‘s about implicit requirements


Quality Costs/29Process Related Costs/3Non Conformity Costs/1

Expenditures for all internal failures i.e. failures are revealed in the system test but

originate from requirement analysis Expenditures for all external failures

Warranty Costs of different other departments for evaluating the

failures Expenditures for delayed shipping

i.e. cost for contractual penalty, redesign


Quality Costs/30Process Related Costs/4Summary/1

Are aligned to SW engineering ISO 9000 and CMMI compatible project repositories have

respective structuring Usually in big companies accounting is performed with

ERP tools as SAP or Oracle Interoperability and automatic assigning to classical

quality costs is very expensive Mapping of classical quality costs to process related costs

must be bijective (one-to-one and onto) i.e. each cqc corresponds a prc and vice versa


Quality Costs/31Summary

Quality related costs

1. Failure prevention costs

2. Appraisal costs

3 Internal error costs

4. External error costs

Process related costs

1. Conformity costs

2. Non Conformity costs

Quality related loss

Loss function


Quality Costs/32Comparison of Quality Related Costs with Process Related Costs


Quality Costs/33Benefits

Increases the productivity (see Deming Chain Reaction) Personal costs are decreased

Increases the profit of the company All quality costs deteriorate the profit

Analysis of quality costs enable Improving of business processes (i.e. SW

development process) To pass ISO 9000 certification and CMMI

assessments


Quality Costs/34Quality Related Loss

What costs a dissatisfied customer?

What costs a lost customer?

What costs a lost order?

What costs declining image?• Of course there exist no exact numbers for these issues

• But there is no doubt that you are concerned with huge numbers


Quality Costs/35Life Cycle Cost

All costs, which result over the entire life span of a plant.

Investment costs

Maintenance costs

Operating costs

Quality related costs not only origin by development and manufacturing but also during operation and maintaining


Quality Costs/36Experiences

• 15 years after having established project control and quality assurance results show• a high correlation of CMMI Maturity Level and sharp decrease of error costs•While failure prevention costs were moderately increased•Besides the same effect were measured by meeting the roll out times

•Thanks to BSC


Quality Costs/37What‘s the difference between repair/fix and correct?/1


Quality Costs/38What‘s the difference between repair/fix and correct?/2

What‘s the difference between repair/fix and correct?

Repair: is fixing any sort of mechanical or electrical device should it get out of order or broken. In SW we speak of patchingCorrective measures: make sure that errors not arise repeatedlyPreventive measures: prevent potential errors before they occur.


Quality Costs/39Steps of a corrective measure

Fixing the error

Description of error

Cause analysis

Definition and implementation of measure

Observation of current occurrence

Evaluation of the efficiency of the measures

Process will be adapted according these measures

IT QM BratislavaIT QM Bratislava

Thank youfor your attention!


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IT QM Bratislava IT QM Part1 Lecture 4 Dr. Withalm 13.09.2015.

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