Optimizing Cost of Quality in Legacy - An Investment to Increase ROI
Jun 09, 2011
Quality processes cannot be followed only because someone else is following them, but return on following them has remarkable impact as projects mature. The cost of poor quality can result in raising the total project cost significantly. Most businesses do not know what their quality costs are because they do not keep reliable statistics. Finding and correcting mistakes consume tremendously large portion of resources. Typically, the cost of elimination of a failure in the production stage is five times greater than it is at the development stage. Effective quality management decreases production costs because the sooner an error is found and corrected, the less costly it will be to rectify it.
As a legacy system ages, the optimization of cost of quality contributors gets complex. With more and more job abends, less/non SME availability, etc., the cost to maintain good quality goes higher. Eventually it can become very challenging to manage the system. HCL-MMS services provide an end-to-end solution to optimize the factors which are impacting the cost of quality for a legacy system. It not only focuses on the visible parameters impacting the cost of quality, but also the concealed and interlinked parameters, giving a holistic solution.
Excerpts from the Paper
The theory behind the Cost of Quality (CoQ) Model is that, the more time that is spent on Prevention activities, the less time will need to be spent on Appraisal and dealing with Failures. Prevention activities build quality into the system. Both Appraisal and Failure are “after the event”, and therefore are too late and add cost. The costs associated with quality are divided into two categories: costs due to poor quality, and costs associated with improving quality. Prevention costs and appraisal costs are costs associated with improving quality, while failure costs result from poor quality. An organization‟s primary goal is to maintain high quality services. With a comprehensive understanding of the costs related to quality this goal can be achieved.