Software Quality Engineering

COST OF QUALITY
Lecture 3
By
Engr. Sumaira Nazir
 Cost of Quality
• It refers to “all costs incurred in performing
quality-related activities”
• Cost of quality can be divided into following
categories
– Prevention Cost
– Appraisal Cost
– Failure Cost
 Prevention Cost
• Prevention costs, incurred to prevent defects
from occurring.
• It includes the cost spent on the activities
aimed at eliminating the causes of failure.
• Example:
– It includes the cost spent on
• Quality Planning
• Testing Equipment
• Training etc
 Appraisal Cost
• Appraisal costs includes the cost incurred on
the activities to gain insight into product
condition the “first time through” each
process.
• Examples
– It includes the cost spent on
• In-process and inter-process inspections and reviews
• Testing
 Failure Cost
• Failure costs, incurred in correcting defects
found by appraisals or by customer.
• Failure cost is subdivided into to two
categories
– Internal Failure Cost
– External Failure Cost
 Internal Failure Cost
• Internal failure costs are incurred for fixing the
defects which are detected before the
shipment of the product to the customer
• It includes the cost of
– Rework
– Repair etc
 External Failure Cost
• Internal failure costs are incurred for fixing the
defects which are detected after the shipment
of the product to the customer
• It includes the cost of
– Complaint Resolution
– Product return and repair
– Helpline support
– Warranty work etc
 References
• Chapter 1 “ Software Quality in Business
Context”
– Software Quality Assurance: Principles and
Practice (Hardcover). By Nina S. Godbole,
published by Alpha Science, 2004
• Chapter 24 “Quality Management”
– Software Engineering By Roger S. Pressman