TextBook - Software Quality Assurance (Concept and practice) By Daniel Galin

1. The companys last years annual CoSQ (Cost of Software Quality) were as follows:

	Cost of Software Quality class	Previous years annual costs in thousands $
Development and SQA activities quality costs	Prevention costs	$1,238
	Appraisal costs	$3,450
	Internal failure costs	$4,238
	External failure costs	$2,890
Management quality costs	Management prevention costs	$225
	Management appraisal costs	$127
	Internal management failure costs	$1,840
	External management failure costs	$4,650
Development costs	Design and coding	$12,876

The software quality assurance manager has proposed a dramatic change in the software quality expenditures policy. The proposal involves increasing expenditures as follows:

Prevention costs + $400,000

Appraisal costs + $700,000

Managerial prevention costs + $580,000

Managerial appraisal costs + $220,000.

But it is expected to reduce failure costs by the following significant percentages:

Internal failure costs 10%

External failure costs 25%

Both managerial internal and external failure costs at least 25%

Management commended about the proposed extravagant expenditures required for the proposed SQA progress project. Management requested that you evaluate the SQA managers proposal.

1. Examine the proposal and calculate its results from a financial aspect. Explain how this dramatic projects additional funds should be utilized in order to bring about the expected reduction in failure costs.
2. Assume the scope of development activities for next year will be similar to that of last year, calculate the percentage of CoSQ in the total cost of the software product that the proposed project will reduce. Show your calculation.