Slides Presentation is about the following topic: > Cost of Quality > Cost of Prevention > Cost of Appraisal > Internal Failure Cost > External Failure Cost > Process Improvement Model > Plan-Do-Check-Act model > Six Sigma DMAIC Model > Six Sigma DMADV Model

1. Methodologies for quality
management
Topic Covered
 Cost of Quality
 Process Improvement Models

2. Cost of Quality (COQ)
 It is a technique used by organizations to attach a dollar figure to the costs of not
producing high-quality products and services.
 In other words, the cost of quality is the cost of defects.
 The costs of quality represent the money that would not be spent if the product was
developed was provided perfectly the first time.
 According to Krasner (1998), “Cost of software quality is an accounting technique
that is useful to enable our understanding of the economic trade-offs involved in
delivering good-quality software.”
Chapter 7: B. Methodologies (for Quality Management)

3. Categories of Cost of Quality
Cost of
Quality
Cost of
Prevention
Cost of
Appraisal
Internal
Failure Cost
External
Failure Cost
Chapter 7: B. Methodologies (for Quality Management)

4. Prevention cost of quality
 “ It is the total cost of all the activities used to prevent defects from
getting into products or services. ”
 Quality training and education
 Quality planning
 Supplier qualification and supplier quality planning
 Root cause analysis
 Process capability evaluations
 Process definition and process improvement
Chapter 7: B. Methodologies (for Quality Management)

5. Appraisal
 “ it is the total cost of analyzing the products and services to identify any
defects that do make it into those products and services.”
 Peer reviews and other technical reviews focused on defect detection
 Testing
 Review and testing tools, databases, and test beds
 Qualification of supplier’s products, including software tools
 Process, product, and service audits
 Other verification and validation activities
 Measuring product quality
Chapter 7: B. Methodologies (for Quality Management)

6. Internal failure
 “ It is the total cost of handling and correcting failures that were found
internally before the product or service was delivered to the customer
and/or users. ”
 Scrap—the costs of software that was created but never used
 Recording failure reports and tracking them to resolution
 Debugging the failure to identify the defect
 Correcting the defect
 Rebuilding the software to include the correction
 Re–peer reviewing the product or service after the correction is made
 Testing the correction and regression testing other parts of the product or
service
Chapter 7: B. Methodologies (for Quality Management)

7. External failure cost of quality
 “ it is the total cost of handling and correcting failures that were found
after the product or service has been made available externally to the
customer and/or users.”
 Recording failure reports and tracking them to resolution
 Debugging the failure to identify the defect
 Correcting the defect
 Rebuilding the software to include the correction
 Re–peer reviewing the product or service after the correction is made
 Testing the correction and regression testing other parts of the product or
service
Chapter 7: B. Methodologies (for Quality Management)

8. Other external costs
 Warranties, service level agreements, performance penalties, and litigation
 Losses incurred by the customer and/or users because of lost
 productivity or revenues due to product or service downtime
 Product recalls
 Corrective releases
 Customer support services, including help desks and field service
 Loss of reputation or goodwill
 Customer dissatisfaction and lost sales
Chapter 7: B. Methodologies (for Quality Management)

9. Not “cost of quality”
 Requirements development
 architectural Design
 detailed design
 Coding
 creating the initial build
 Shipping & installing
Chapter 7: B. Methodologies (for Quality Management)

10. Chapter 7: B. Methodologies (for Quality Management)

11. Chapter 7: B. Methodologies (for Quality Management)

12. Process Improvement Models
 PDCA Model
 Six Sigma DMAIC model
 Six Sigma DMADV model
Chapter 7: B. Methodologies (for Quality Management)

13. PDCA model
Chapter 7: B. Methodologies (for Quality Management)

14. Plan-do-check-act (PDCA)
 Also called the Deming circle, or the Shewhart cycle
 The plan step includes studying the current state and determining what
process improvements are needed.
 That plan is then implemented during the do step of the model.
 the check step of the model analyzes the resulting process after the plan is
implemented to determine if the expected improvements actually occurred.
 The act step takes actions according to results of check step.
Chapter 7: B. Methodologies (for Quality Management)

15. Six Sigma
 The Greek letter sigma (σ) is the statistical symbol for standard deviation.
 Six Sigma is a data-driven methodology for
 eliminating defects in processes through focusing on understanding customer needs
 continual improvement of processes
 the reduction in the amount of variation in those processes.
 As a business management strategy, Six Sigma has evolved into “a
comprehensive and flexible system for achieving, sustaining, and
maximizing business success”
Chapter 7: B. Methodologies (for Quality Management)

16. Six Sigma
Chapter 7: B. Methodologies (for Quality Management)

17. Six Sigma DMAIC model
Define Measure Analyze Improve Control
Chapter 7: B. Methodologies (for Quality Management)

18. DMAIC Model:
DEFINE:
 The define step in the DMAIC model identifies
 the customers,
 defines the problem,
 determines the requirements,
 and sets the goals
 for process improvement that are consistent
Chapter 7: B. Methodologies (for Quality Management)

19. DMAIC Model ..CONT..
MEASURE:
 During the measure step in the DMAIC model,
 the current process is mapped
 the critical-to-quality (CTQ) characteristics being improved
 Metrics to measure those CTQ characteristics are then
 selected, designed, and agreed upon.
Chapter 7: B. Methodologies (for Quality Management)

20. ANALYSE:
 During the analyze step in the DMAIC model, statistical tools are used
to
 analyze
 the data from the measure step and the current process to fully
understand
 the influences that each input variable
 differences between the current performance
 of the process and the desired performance
DMAIC Model ..CONT..
Chapter 7: B. Methodologies (for Quality Management)

21. DMAIC Model ..CONT..
IMPROVE:
 During the improve step in the DMAIC model, alternative approaches
(improvement
 actions) to solving the problem and/or reducing the process variation
are
 considered.
Chapter 7: B. Methodologies (for Quality Management)

22. DMAIC Model ..CONT..
Control:
 The newly improved process is standardized and institutionalized.
 Here we check
“ Has the desired goals been achieved or not?”.
Chapter 7: B. Methodologies (for Quality Management)

23. Six Sigma DMADV model
Define Measure Analyze Design Verify
Chapter 7: B. Methodologies (for Quality Management)

24. DMADV Model:
DEFINE:
 The define step in the DMADV model identifies
 the customers,
 defines the problem,
 determines the requirements,
 and sets the goals
(For a new process)
Chapter 7: B. Methodologies (for Quality Management)

25. DMADV Model ..CONT..
 MEASURE:
 During the measure step in the DMADV model,
 the critical-to-quality (CTQ) characteristics being designed
 Metrics to measure those CTQ characteristics are then
 selected, designed, and agreed upon.
Chapter 7: B. Methodologies (for Quality Management)

26.  ANALYZE:
 In the Analyze step of DMADV model we analyze:
 The alternative approaches to designing new product,
process etc.
 Cost and benefits, impacts and risks of new product.
DMADV Model ..CONT..
Chapter 7: B. Methodologies (for Quality Management)

27. DMADV Model ..CONT..
 DESIGN:
 In the Design step of DMADV model we design:
 High level and detailed design.
 And design are implemented and optimized.
 Plans are also developed to verify the design.
Chapter 7: B. Methodologies (for Quality Management)

28. DMADV Model ..CONT..
VERIFY:
 During the verify step in the DMADV model
 The new product or process
 Is verified to ensure that it meets the customer requirements.
Chapter 7: B. Methodologies (for Quality Management)

29. DMAIC vs DMADV
Chapter 7: B. Methodologies (for Quality Management)

30. Lean Techniques
 While lean principles originated in manufacturing, the Poppendiecks have
applied these ideas to software development (Poppendieck 2003). There are
seven lean principles:
 1. Eliminate waste
 2. Amplify learning
 3. Decide as late as possible
 4. Deliver as fast as possible
 5. Empower the team
 6. Build integrity in
 7. See the whole system
Chapter 7: B. Methodologies (for Quality Management)

31. LEAN TECH ..Cont
 Waste is anything that does not add, or gets in the way of adding, value as
perceived by the customer.
 • Incomplete work. If work is left in various stages of being completed it can
result in waste
 • Extra processes. unnecessary work, bureaucracy, or extra non-value-added
activities
 • Extra features or code. one should avoid “gold plating,” that is, avoid
adding extra features or “nice to have”
 Task switching. Belonging to multiple teams causes productivity losses due to
task switching
 • Waiting. If something or someone must wait for output from some
predecessor task, organizations need to look for a more effective way
 • Unnecessary motion
 • Defects.
Chapter 7: B. Methodologies (for Quality Management)

32. LEAN TECH ..Cont
 Value stream mapping is a lean technique used to trace a product from raw
materials to use.
 identify the product or service
 identifying all of the inputs, steps, and information flows
Chapter 7: B. Methodologies (for Quality Management)

33. LEAN TECH ..Cont
 Learning is amplified through providing feedback mechanisms.
 The team should be taught to use the scientific method to establish
hypotheses, conduct rapid experiments, and implement the best alternatives.
 Set-based development
 The principle of deciding as late as possible helps address the difficulties that
can result from making irrevocable decisions when uncertainty is present.
 Making decisions at the “last responsible moment” causes faults.
 The product should be delivered as fast as possible
 the sooner the product is delivered the sooner feedback
Chapter 7: B. Methodologies (for Quality Management)

34. LEAN TECH ..Cont
 “Empower the team” means creating teams of engaged, thinking people who
are motivated to design
 Motivation provides people with a clear, compelling, achievable purpose,
gives them access to customers, and allows them to make their own
commitments.
 “Building integrity in” means the developers focus on perceived and
conceptual integrity as they
 implement, refactor, and test the software.
 “Seeing the whole” is all about systems thinking.
 optimize an individual process, suboptimize the entire, decisions and changes
 alignment with organizational
Chapter 7: B. Methodologies (for Quality Management)

35. Chapter 7: B. Methodologies (for Quality Management)
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