The Relationship between Cost & Quality - PowerPoint Presentation

Slide1

The Relationship between Cost & Quality

Submitted by:Haya A. El-AghaSubmitted to:Eng. Hani Abu AmrSlide2

COST

It is an amount that has to be paid or given up in order to get something.In business, cost is usually a monetary valuation of effort, material, resources, time and utilities consumed, risks incurred, and opportunity forgone in production and delivery of a good or service. Slide3

Types of Costs:

Direct Costs: They are all costs which you can identify when you produce a product. Direct materials, Direct Labor, Direct expensesIndirect Costs: These are the costs which you can't identify when you produce your goods, because they are not directly related to them.

Indirect Labor, Indirect expenses, Indirect materialsSlide4

Types of Costs:

Variable Costs: These are the costs which will vary according to the number of unit producedFixed Costs

:

They

do not vary according to the number of units made by your company.Stepped Fixed

Costs

:

These are fixed costs but which will vary according to the number of units your produce.

Semi-Variable Costs: These types of costs are hybrid cost, it means,

it

is made of variable and fixed costsSlide5

Quality

The ability of a product or service to meet or exceed customer expectations.Why to measure Quality?It gives mangers a way to judge the overall impact of quality on their area of

responsibility.

It offers managers a finical method to evaluate the level of their quality and cost associated with different

levels

of quality

.Slide6

The Relationship between Cost and Quality

Total Cost of Quality(CoQ) is a financial model of the costs incurred to operate and maintain the function of quality in a business. It is also known as The Economic Conformance Model, shows us the rising costs associated with proactive management of quality as compared to the decreasing costs associated with improving quality. Slide7

Cost of Quality:

The cost of poor quality only reflects a portion of the total quality costs. The internal and external failure costs are generally associated with the Cost of Poor Quality whereas the Appraisal and Prevention Costs constitute the costs related to ensuring the product is indeed to requirements.Slide8
Slide9

COST AND QUALITY

For the last few decades, management has been told that quality pays. That doesn't mean that someone pays you for quality, but that any resources spent on improving quality will have a very positive return on investment. Whatever you spend on improving quality will be returned to you in decreased costs. What you need is a

quality regime

that tests items cumulatively, that reports errors immediately that addresses problems when they occur, and uses performance measurements throughout the business to ensure high quality is established and continually monitoredSlide10

Increase quality and decrease costs with IBM Rational quality gates

Why choose IBM® Rational® Quality Management solutions?Single integrated software quality management platform for improved reliability, predictability and team efficiency across the software lifecycleSuperior functional testing with test automation and data sharing.Integrated traceability of business, functional requirements.

More thorough performance testing both pre and post deployment for reduced system downtime

Integrated web application

security

and compliance testingSlide11

Summary For IBM Case

Quality gates boost project quality by helping ensure that best practices are followed and measured against previous projects. By scrutinizing the software you're developing, you can raise quality issues earlier in your development process, making defects cheaper to fix — helping you reduce your IT operating costs.Slide12

Idea of Quality Gates

We are looking for some kind of green light before moving to the next phase in the software development lifecycle. Checkpoints

that we pass through between phases of a project, they help us improve quality by helping ensure that we are following

best practices

.helps us spot trends in the software that we are developing and thus

address quality issues

earlier

.

Catching

defects early makes them much cheaper to fix, which is likely to result in a reduction in your IT operating cost.Quality gates help increase quality yet, reduce overall cost.Slide13

Rationale

organizations have one quality gate sandwiched between the build phase and the delivery phase: the test phaseOrganizations look to the test phases for final approval before deploying products to their customersThis places

pressure

on the testing group to document every defect before deployment, which is

unrealistic

.Companies

cannot rely

on just one final test or quality gate for overall quality. They need to be more

flexibleSlide14

Checkpoints and best practices

Focusing on quality early in your software lifecycle is vital to increasing quality and decreasing costs, and Rational quality gates offer checkpoints along the development phases.Must

employ measurements

,

benchmarking

, and re-measurements

.

Software

development consists of a number of

phases and they

are essentially the same for all styles of practices, including the waterfall process, the Rational Unifies Process, OpenUp, and an agile approach. In each practice, there is a requirements phase,

design/code phase

,

build phase, test phase,

and

release.

>>

All phases could have a quality gate associated with

it.Slide15

Phases

Requirements phaseBest practice is the tracking requirements associated with your test case.prioritize test cases based on their complexity, risk, and functional area How do we turn this best practice into a quality gate?

One

way is to have this quality gate rolled up with other quality gates, and reported to management using the IBM Rational Insight tool or with the Rational Quality Manager solution's built in reporting functions. Slide16

Phases

Design and coding phaseOffers an opportunity for a quality gate designed around unit testing.Identify if your code needs unit-test authoring and how successfully running the unit testing has been.

Using

the Rational Insight solution, you can roll up these tasks into a measured, benchmarked

quality

gate.Slide17

Phases

Building phaseThe building phase offers you another place to impart quality gates into your software development lifecycleSlide18

Phases

Testing phaseImplementing quality gates during the testing phase offers your team several optionsTest gates can be wrapped around almost any aspect of the testing phase. One quality gate you can consider implementing is wrapping the quality gate around your testing framework.

This forces a review of the test script to insure reuse throughout the manual test steps. Slide19

Phases

Final Testing PhaseIn the final testing phase, the Rational Quality Manager solution can provide a report about passed and failed test cases, the defects produced, the number of severe defects open, and other statistics.These test results are part of the best practices for improving project quality and can be captured using the Rational Quality Manager environment, and they can be easily updated as your testing changes.Slide20

Summary

There is a negative relationship between cost and quality. As the quality increase

the costs of

it decrease

.

This happens due to the operation efficiency and developments in quality management, by that the inspection cost is reduced and all other related costs, so that the cost of product decreases. Slide21