IT QM Part 1 Lecture 4 Dr Withalm

IT QM Part 1 Lecture 4 Dr. Withalm IT QM Bratislava

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 2 15. 03. 2018 Dr. Withalm IT QM Bratislava

Today’s Agenda § Quality Costs § Repair/Fix and Correct 4 15. 03. 2018 Dr. Withalm IT QM Bratislava

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 5 15. 03. 2018 Dr. Withalm IT QM Bratislava

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 6 15. 03. 2018 Dr. Withalm IT QM Bratislava

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 7 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/2 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. 8 15. 03. 2018 Dr. Withalm IT QM Bratislava

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 9 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/4 Failure 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 10 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/5 External 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. 11 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/6 Internal 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 12 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/7 Appraisal 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 13 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/8 Open Issues of classical Quality Costs/1 § § § § 14 Inheritance from Taylorism Collection of Costs View Period Assignment Representation Introduction Strategy Barriers which must be overcome 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/9 Inheritance 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 15 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/10 Collection 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 16 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/11 View 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 17 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/12 Assignment/1 § There 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 18 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/13 Assignment/2 Activities Identification of the possible ß-sites (friendly Customer) Failure Prevention Appraisal Internal Failure External Failure 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 …. 19 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/14 Representation/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 20 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/15 Representation/2 21 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/16 Business Process /1 § § § 22 Motivation of employees Definition of terms Collection of Quality Costs Feed Back to managers and employees Improvement activities 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/17 Business Process /2 Motivation 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 23 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/18 Business Process /3 Definition 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 24 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/19 Business Process /4 Collection 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 25 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/20 Business Process /5 Feed 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 26 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/21 Business Process /6 Improvement 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 27 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/22 Barriers which must be overcome/1 28 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/23 Barriers 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 29 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/24 Barriers which must be overcome/3 Lack 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 30 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/25 Barriers which must be overcome/3 Unclear 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 31 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/26 Barriers which must be overcome/4 Advantages 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 32 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/27 Process Related Costs/1 Conformity 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 33 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/28 Process Related Costs/2 Conformity 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 34 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/29 Process Related Costs/3 Non 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 35 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/30 Process Related Costs/4 Summary/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 36 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/31 Summary 37 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/32 Comparison of Quality Related Costs with Process Related Costs 38 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/33 Benefits § 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 39 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/34 Quality Related Loss · What costs a dissatisfied 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 40 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/35 Life 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 41 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/36 Experiences • 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 42 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/37 What‘s the difference between repair/fix and correct? /1 43 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/38 What‘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 patching Corrective measures: make sure that errors not arise repeatedly Preventive measures: prevent potential errors before they occur. 44 15. 03. 2018 Dr. Withalm IT QM Bratislava

Quality Costs/39 Steps 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 45 15. 03. 2018 Dr. Withalm IT QM Bratislava

Thank you for your attention! IT QM Bratislava

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