It is the cost of not creating quality project. Software failure can cost 100% of project cost.
Cost of defect repair in various stage of development cycle can be as below:
Requirement gathering stage | 0% |
Design Stage | 10% |
Development stage | 20% |
Testing stage | 50% |
Deployment stage | 100% |
Cost of quality can be divided in two parts:
a. Prevention Cost
Costs of all activities specifically designed to prevent poor quality in products or services.
Examples are the costs of:
· New product review
· Quality planning
· Supplier capability surveys
· Process capability evaluations
· Quality improvement team meetings
· Quality improvement projects
· Quality education and training
b. Appraisal Costs
The costs associated with measuring, evaluating or auditing products or services to assure conformance to quality standards and performance requirements.
· These include the costs of:
· Incoming and source inspection/test of purchased material
· In-process and final inspection/test
· Product, process or service audits
· Calibration of measuring and test equipment
· Associated supplies and materials
c. Internal Failure Costs
Failure costs occurring prior to delivery or shipment of the product, or the furnishing of a service, to the customer.
Examples are the costs of:
· Scrap
· Rework
· Re-inspection
· Re-testing
· Material review
· Downgrading
d. External Failure Costs
Failure costs occurring after delivery or shipment of the product — and during or after furnishing of a service — to the customer.
Examples are the costs of:
· Processing customer complaints
· Customer returns
· Warranty claims
· Product recalls