it qm bratislava it qm part1 lecture 4 dr. withalm 13.09.2015
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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
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Today’s Agenda
Quality Costs
Repair/Fix and Correct
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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
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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
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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
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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
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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
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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
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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.
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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
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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
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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
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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
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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
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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
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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
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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
…
….
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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
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Quality Costs/15Representation/2
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Quality Costs/16 Business Process /1
Motivation of employees Definition of terms Collection of Quality Costs Feed Back to managers and employees Improvement activities
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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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
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Quality Costs/32Comparison of Quality Related Costs with Process Related Costs
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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
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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
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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
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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
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Quality Costs/37What‘s the difference between repair/fix and correct?/1
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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.
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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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Farbpalette mit Farbcodes
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