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Moshe S. Cohen, Market Manager, Rational Quality Management Solutions, IBM Software Group
Copyright IBM Corporation 2011 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. Organizations
that create and deliver softwarewhether for their own IT packaged applications market, or as the core of their final systems spacemust grapple not only with todays tough economic climate, but also with increased complexity in their processes IBM, the IBM logo, Rational and ibm.com are trademarks or registered and supply chains. Many factors serve to complicate software delivery, but trademarks of the International Business Machines Corporation in the competition lies at the heart of this complexity United States, other countries, or both. If these and other IBM trademarked operations, of America Produced in the United States for the June 2011 product, as in the All Rights Reserved
terms are marked on their rst occurrence in this information with a trademark symbol ( or ), these symbols indicate U.S. registered or common law trademarks owned by IBM at the time this information was published. Such trademarks may also be registered or common law trademarks in other countries. A current list of IBM trademarks is available on the web at Copyright and trademark information at
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Quality risk ( = Probability of defects x loss due to defects) Competition risk ( = Probability of competitors x size of loss to competition) Total risk ( = Sum of all risks)
Quality-driven delivery can also be costly but for different reasons. As shown in Figure 3, the more critical any defects might be regarding quality, the longer it takes Competitive Advantage to get to an optimum release point.
Quality-driven delivery can also be costly but for different reasons. As shown in Figure 3, the more critical any defects might Quality is king! to Market is king! High Example: Safety Critical applications Example: Consumer Electronics opportunity cost; be regarding quality, the longer it takes to get to an optimum Strong competition release point.
Risk Exposure
Criticality of
Time
Figure 2: The blue dots show possible release points, with points of minimal
risk moving forward as competition intensies (red lines).
Criticality of Defects
Time
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Time Quality issues are often magnied in a schedule-driven life cycle, Figure 3: The more critical the implications of defects are, the more time it given that software contractors frequently get paid on a time and takes to get to the lowest risk point where release is possible. Figure materials basis,show possible release points, with points of minimal 2: The blue dots regardless of the quality of software they deliver. risk moving forward as competition intensies (red lines). In many cases, you may even end up paying extra for the delivTime The release timing for this approach is governed by achieving ery team to x their own defects, so the potential costs of defects the right quality, moving the optimal time to release further to to the end user can add up quickly. Quality issues are often magnied in a And heres an interesting stause. more critical the do you dene that? are, thedefects is practiQuality According to areCarnegie schedule-driven life cycle, a Figure theThe A target based ondefects fixed might issues the often magnified in 3: rightbut how implications of defects Zero more time it Mellon Software Engineering given tistic: that software contractors frequently get paid on a time and takes to get to the lowest risk point where release is possible. no way to detercally impossible to achieve, given that there is Institute, Data indicate that cycle, be more realisticbut its still impossibleto schedule-driven of lifequality 80 softwareof thedeliver. given of materials basis, regardless the 60 - of percent they cost that mine how many defects still exist in a piece of code or the software development is in rework.1 extra for the delivIn many cases, contractors paying number of is governed by defects software you may even end upfrequently get paid The know the for this approachremaining achieving in the release timing ery team to x their own defects, so the potential costs of defects product. on aend user can add up quickly. And heres an interesting statime and materials basis, regardless the right quality, moving the optimal time to release further to to the the rightbut how do you dene that? Zero defects is practiof the quality of softwareSoftware Engineering In tistic: According to the Carnegie Mellon they deliver. cally impossible to achieve, given that there is no way to deterInstitute, Data indicate that 60 - 80 percent of the many cases, you may even end cost of up paying mineRisk-driven stilldelivery of code or the delivering how many defects exist in a piece implies 1 software development is in rework.
extra for the delivery team to fix their own defects, so the potential costs of defects to the end user can add up quickly. And heres an interesting statistic: According to the Carnegie Mellon Software Engineering Institute, Data indicate that 60 - 80 percent of the cost of software development is in rework.
your software when the risk is minimal. But in practice, we always need to release earlyearlier than we can. Which typically implies increasing the risk, right? At least this is a commonly held view, but is it always the case? Within the risk-driven model, the optimal release time is when risks are sufficiently reduced (not completely eliminated) and time to market has not been wasted. In other words, some time is needed to reduce the most significant risks, but the company cannot afford to address every known risk because the opportunity to beat the competition is fleeting. So the question is, how can we get to this point sooner? How do we compress the release date from the optimal intersection (shown as a blue circle in Figure 4) to a point earlier in time?
Quality-driven delivery can also be costly but for different reasons. As shown in Figure 3, the more critical any defects might be regarding quality, the longer it takes to get to an optimum release point. The release timing for this approach is governed by achieving the right quality, moving the optimal time to release further to the rightbut how do you define that? Zero defects is practically impossible to achieve, given that there is no way to determine how many defects still exist in a piece of code or the probability of detecting those defects in
time is when inated) and ds, some time the company the opportu5
Time to Market
Time
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use as we move hat if we could push it down, er but lower l move down n Figure 4.
two extremes (i.e. delivery offers a because it Risk-driven schedule driven vs. quality driven) practical more cost-effectively balances quality versus time-to-market improvement over these two extremes (i.e. considerations. A risk-driven strategy is a renement of a schedule driven that optimizes risk exposure because quality-driven approach vs. quality driven) against development cost-effectively balances quality it more cost and time. versus time-to-market considerations. A For the remainder of this discussion, we will assume that the risk-driven strategybased on a risk-driven approach. a software delivery life cycle is is a refinement of We will explore how to bend the green curve shown in Figure 4 quality-driven approach that optimizes risk downward and exposure to the left, fordevelopment cost and against reduced time to market without compromising the risk prole. time.
For the remainder of this discussion, we will assume that the software delivery life cycle is based on a risk-driven approach. We will explore how to bend the green curve shown in Figure 4 downward and to the left, for reduced time to market without compromising the risk profile.
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ses back to am to meass: How many quirements ements rse you would ther than a
No. of Requirements
High Requirements coverage Most critical Requirements All critical Requirements Low contribution
Test Suites
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ile context process, er efforts to productivity st. To reduce ypical use of ted approach testing activig according he life cycle, equirements nts remaining es, they may
Figure 5: After a change, re-executing all the tests is safe, but expensive and
often unrealistic. By focusing instead on test suites that are the most relevant to the iteration that is being tested, test teams make more efficient use of their time and reduce redundancies along with high testing costs.
Although you you cannot completely remove Although cannot completely remove risk from a development program, you can measure it and manage it by taking risk from mitigation actions. This approach helps ensure a development program, you the appropriate can measure it and manage it by taking that you are optimally using your nite testing resources (your people) to reduce risk as rapidly as possible in the development the appropriate mitigation actions. This cycle. By focusing testing effort on high-value test cases, from approach helps ensurethatcontributionoptimally you are to business either the point of view of coverage or using your finite testing resourcesyou value, you essentially prioritize according to riskand (your worry less to reduce risk as rapidly as issues. people)about test cases that pertain to noncriticalpossible in the development cycle. By focusing testing effort on high-value test cases, from either the point of view of coverage or contribution to business value, you essentially prioritize according to riskand you worry less about test cases that pertain to noncritical issues.
But does creating the traceability links require an expensive investment? No, and here is the basic math. Consider a hypothetical medium-size project with some 5,000 requirements and 10,000 test cases. Assuming it takes 20 minutes to locate and
the overall business in measurable ways. Smarter Quality Management: The Fast Track to Competitive Advantage Using CMMI
decisions in real time,thus reducing your risk. How much would this save you? These are some of the quality management best practices, each of which contributes to risk reduction and therefore increased quality and reduced cost. Now, lets consider the overall impact of quality management on the defects density and the cost of fixing them.
Together, these quality management best practices can benet 3 as a proxy for the maturity of the development process, Figure 6 shows that the overall business impact of quality management is quite compelling. more defects. 3300), or 914
40%
40%
10% W QM
CMMI Levels
Lets assume an organization at CMMI level 2, with 1000 defects As fixing defects during User Acceptance detected during functional testing. Figure 6 shows that on Testing (UAT) is aboutseven times more average, without QM practices, about 30 percent of the defects are being detected in functional testing (the left, blue bar), test, expensive than during unit/integration
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and assuming a fix cost of US$120 per defect during unit/integration test, fixing 914 defects in UAT is already increasing the cost by over half a million dollars! And this does not even take into account the reduction in the number of defects that result from applying QM practices in the first place, which makes the savings even more significant. This also does not take into account less tangible savings, such as increased quality, customer retention, and other implications of quality as a differentiating asset. As most software development teams are around CMMI levels 2 or 3, the benefits and the savings described above apply to most of the industry. But as development teams become more mature, apply QM practices, and move up to CMMI levels 4 and 5, the focus shifts into less obviousbut for some, even more importantbenefits, such as reduction in the number of defects that are introduced in the first place, measured improvements around planning and execution of quality related activities, customer retention, and leveraging quality as a differentiating asset.
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Smarter Quality Management: The Fast Track to Competitive Advantage The information contained in this document is provided for informational
2011 IBM Corporation Software Group Route 100 Somers, NY 10589 U.S.A. IBM Corporation Produced in Software Group the United States of America June 2011 Route 100 Reserved All Rights
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purposes only and provided as is without warranty of any kind, express or implied. In addition, this information is based on IBMs current product plans and strategy, which are subject to change by IBM without notice. Without limiting the foregoing, all statements regarding IBM future direction or intent are subject to change or withdrawal without notice and represent goals and objectives only. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or representations from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license agreement governing the use of IBM software. See the Carnegie Mellon Software Engineering Institutes CEO and signup.do?source=swg-rtl-spsm-wp&S_ founders message at http://www.sei.cmu.edu/about/message/
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For a more complete discussion of quality management practices, download the paper Value-driven quality management for complex systems: Six 3 strategies for reducing cost and risk at Integration. CMMI is a Capability Maturity Model http://www14.software.ibm.com/
the the IBM States, other countries, or both. registered IBM, United logo, Rational and ibm.com are trademarks or If these trademarks of theIBM trademarked terms are marked and other International Business Machines Corporation in the website at http://www.sei.cmu.edu/cmmi/ United States, other countries, or both. If these and other IBM trademarked http://www.sei.cmu.edu/cmmi/ on their first on their rst occurrence in this information with a a occurrence in this information with terms are marked trademark symbol ( or ), these), these symbols indicate trademark symbol ( or symbols indicate U.S. registered or Please Recycle common law trademarks owned by IBM at the time this information U.S. registered trademarks may lawbe registered or common by or common also trademarks owned was published. Such law trademarkstime this information wasof IBM trademarks IBM at the in other countries. A current list published. Such is available on the web at Copyright and trademark information at trademarks may also be registered or common law trademarks in other countries. A current list of IBM Other company, product, or service names may be trademarks or service trademarks marks of others. is available on the web at Copyright and trademark information atibm.com/legal/copytrade. The information contained in this document is provided for informational shtml purposes only and provided as is without warranty of any kind, express
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Capability Maturity Model Integration. CMMI is a staged approach organizations. For more information levels of maturity to process improvement that denes incremental see the Software in software engineering organizations. For more information see the Engineering Institute (Carnegie Melon University) Software Engineering Institute (Carnegie Melon University) website at
RAW14273-USEN-01
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provided as is without warranty of any kind, is based on IBMs current product plans and strategy, For a more complete discussion of quality management practices, download which Value-driven to change by for complex systems: Six the paperare subjectquality managementIBM without notice. strategies for reducing costthe risk at http://www14.software.ibm.com/ Without limiting and foregoing, all statements webapp/iwm/web/signup.do?source=swg-rtl-spsm-wp&S_PKG= regarding IBM future direction or intent are subject to wp_RQM_VALUEDRVN_071510 change or withdrawal without notice and represent Capability Maturity Model Integration. CMMI is a staged approach goals and objectives only. Nothing levels of maturity to process improvement that denes incrementalcontained in this in software engineering organizations. For more information see the documentation is intended to, nor shall have the Software Engineering Institute (Carnegie Melon University) website at effect of, creating any warranties or representations http://www.sei.cmu.edu/cmmi/ from IBM (or its suppliers or licensors), or altering the terms and conditions of the applicable license Please Recycle agreement governing the use of IBM software.
See the Carnegie Mellon Software Engineering Institutes CEO and express or implied. In addition, this information founders message at http://www.sei.cmu.edu/about/message/
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or implied. In addition, this information is based on IBMs current product plans and strategy, which are subject to change by IBM without notice. Other limiting the foregoing, all or service names future Without company, product, statements regarding IBMmay be direction or intent are subject to change orothers. without notice and trademarks or servicemarks of withdrawal represent goals and objectives only. Nothing contained in this documentation is intended to, nor shall have the effect of, creating any warranties or The information contained in this document representations from IBM (or its suppliers or licensors), or altering is the terms and conditions of the applicable license agreement governing provided for informational purposes only and the use of IBM software.
See the Carnegie Mellon Software Engineering Institutes CEO andfounders message at http:// www.sei.cmu.edu/about/message/ RAW14273-USEN-01 For a more complete discussion of quality management practices, downloadthe paper Valuedriven quality management for complex systems: Sixstrategies for reducing cost and risk at http://
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