Management Control Costs and Failures
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Questions and Answers

What is typically too late for the effective application of lessons learned during the compensation process?

  • After the project has ended
  • During the design phase
  • At the beginning of the project
  • At the time of compensation (correct)
  • What is a common issue associated with the application of a CoSQ model?

  • Oversimplification of software development
  • Inaccuracy in quality cost data (correct)
  • Improvement in team collaboration
  • Reduction in project scope
  • What does CoSQ stand for in the context of software quality systems?

  • Complexity of Software Quality
  • Classification of Software Quality
  • Criteria of Software Quality
  • Cost of Software Quality (correct)
  • How can the application of the CoSQ system be characterized?

    <p>Associated with numerous challenges</p> Signup and view all the answers

    What factor can negatively influence the accuracy of quality cost data within CoSQ systems?

    <p>Problems in the application process</p> Signup and view all the answers

    What type of costs are associated with activities aimed at preventing managerial failures?

    <p>Management Prevention Costs</p> Signup and view all the answers

    Which of the following is considered an internal failure cost?

    <p>Cost of rework</p> Signup and view all the answers

    What is a major focus of management appraisal costs?

    <p>Controlling project performance</p> Signup and view all the answers

    Which costs are incurred when failures are detected after the software system has been installed?

    <p>External Failure Costs</p> Signup and view all the answers

    What are hidden external failure costs?

    <p>Costs from failures not directly reported by customers</p> Signup and view all the answers

    Which of the following activities is included in management prevention costs?

    <p>Pre-project proposal evaluation</p> Signup and view all the answers

    Which of the following is part of the costs associated with correcting issues before a project begins?

    <p>Cost of design corrections</p> Signup and view all the answers

    What is the primary purpose of management control costs?

    <p>To prevent managerial failures</p> Signup and view all the answers

    What are Management Internal Failure Costs associated with?

    <p>Costs from failed risk identification and project estimates</p> Signup and view all the answers

    Which of the following is NOT a reason for Management External Failure Costs?

    <p>Bias in internal reporting</p> Signup and view all the answers

    What kind of costs arise when project schedules or budgets are underestimated?

    <p>Management Internal Failure Costs</p> Signup and view all the answers

    Which action would likely contribute to biased reporting of external failure costs?

    <p>Providing discounts for future services to customers</p> Signup and view all the answers

    What is a common consequence of negligent reporting by team members?

    <p>Inaccurate classification of quality costs</p> Signup and view all the answers

    Which issue is primarily connected to Management External Failure Costs?

    <p>Failures identified post-installation</p> Signup and view all the answers

    The implications of biased recording of external failure costs are often due to what?

    <p>Unrecorded indirect compensations offered to customers</p> Signup and view all the answers

    What is a potential result of failures in managerial prevention activities?

    <p>Increased internal failure costs</p> Signup and view all the answers

    What is considered a preventive cost in software quality assurance?

    <p>Development of software configuration management systems</p> Signup and view all the answers

    Which of the following is NOT a preventive activity in software quality assurance?

    <p>Testing software after deployment</p> Signup and view all the answers

    Which preventive cost involves providing training to employees?

    <p>Regular implementation of SQA preventive activities</p> Signup and view all the answers

    What is one of the components that may be developed or updated in SQA infrastructure?

    <p>Software metrics</p> Signup and view all the answers

    Which of the following activities helps in the certification of employees in SQA?

    <p>Instruction on updated SQA procedures</p> Signup and view all the answers

    How do investments in SQA infrastructure contribute to software quality?

    <p>They provide the necessary tools and procedures to prevent defects.</p> Signup and view all the answers

    What is the purpose of analyzing errors within the context of SQA?

    <p>To facilitate corrective and preventive actions</p> Signup and view all the answers

    Investments in which area contribute to improving the SQA infrastructure?

    <p>Development of software quality metrics</p> Signup and view all the answers

    What does the cost of software quality (CoSQ) primarily assess?

    <p>Financial implications of software quality</p> Signup and view all the answers

    According to the classic quality cost model, which of the following is NOT considered a subclass of costs of control?

    <p>External Failure Costs</p> Signup and view all the answers

    Which of the following best describes Prevention Costs?

    <p>Investments in establishing and maintaining software quality processes</p> Signup and view all the answers

    What type of costs relates to the financial damages of software failures?

    <p>External Failure Costs</p> Signup and view all the answers

    How are costs of failure classified in the context of software quality measurement?

    <p>Internal and External Failure Costs</p> Signup and view all the answers

    Which activity is NOT a focus of managerial control over the cost of software quality?

    <p>Assessing personnel satisfaction with the software</p> Signup and view all the answers

    What was the original context for the development of the classic quality cost model?

    <p>Manufacturing organizations</p> Signup and view all the answers

    What is the purpose of evaluating the plans to increase or decrease SQA activities?

    <p>To optimize the SQA budget based on previous failures</p> Signup and view all the answers

    Study Notes

    Management Control Costs

    • Relate to costs that are controlled by management.
    • Subdivided into two subclasses:
      • Management Prevention Costs: Activities performed to prevent managerial failures. Performed before the project begins, and includes pre-project activities to ensure appropriate plans.
      • Management Appraisal Costs: Activities performed to control a specific project's performance. Typical management appraisal costs include controlling the project's performance.

    Management Failure of Control Costs

    • Costs of correcting failures due to unsuccessful prevention activities.
    • Subdivided into two subclasses:
      • Management Internal Failure Costs: May occur during software development. Examples include failing to identify project risks, failed estimates on budgets and schedules, and failure to address deviations requiring management intervention.
      • Management External Failure Costs: Most commonly occur after software development and system installation.

    Cost of Software Quality

    • Financial assessment of software quality development and maintenance.
    • Evaluated using a set of metrics, including:
      • Prevention and appraisal activities budget
      • Previous year's failure cost
      • Previous project’s total quality
      • Other department’s quality cost

    Objectives of Software Quality Measurement

    • Control organization-initiated costs to prevent and detect software errors.
    • Evaluate financial damages of software failures to revise the SQA budget.
    • Evaluate plans to increase/decrease SQA activities, or to invest in new/updated SQA infrastructure.

    The Classic Model of Cost of Software Quality

    • Developed in the early 1950s by Feigenbaum and others, it provides a methodology for classifying the costs associated with software quality assurance.
    • Classifies costs into two general subclasses:
      • Costs of Control: Controlled by the software developer, includes:
        • Prevention Costs: Investments in establishing, updating, and improving a software quality infrastructure.
        • Appraisal Costs: Costs associated with evaluating the quality of the software.
      • Costs of Failure of Control: Costs associated with correcting failures that occur due to unsuccessful prevention activities. These costs are subdivided into:
        • Internal Failure Costs: Costs related to failures detected before the software is released to the customer.
        • External Failure Costs: Costs related to failures detected by customers or maintenance teams after the software has been installed.

    Prevention Costs

    • Include investments in establishing, updating, and improving a software quality infrastructure, as well as for performing the regular activities required for its operation.
    • Examples of prevention costs include:
      • Investments in the development of new or improved SQA infrastructure components or regular updating of these components:
        • Procedures and work instructions
        • Support devices
        • Software configuration management system
        • Software quality metrics
      • Regular implementation of SQA preventive activities:
        • Instruction of new employees on SQA topics and procedures
        • Instruction of employees in new and updated SQA topics and procedures
        • Certification of employees for specific roles
        • Analysis of errors and additional data and the subsequent performing of corrective and preventive actions
      • Definition of a method of data collection

    Problems in Application of CoSQ Measurements

    • The accuracy and completeness of quality cost data can be affected by several problems, regardless of the industry:
      • Inaccurate and/or incomplete identification and classification of quality costs
      • Negligent reporting by team members and others
      • Biased reporting of software costs, especially of “censored” internal and external costs
      • Biased recording of external failure costs, due to indirect compensation of customers for failures (e.g., discounted future services, delivery of free services), whose implications are not recorded as external failure costs
      • Late payment of customer’s overt compensation: It's too late for the effective application of lessons learned.

    Problems Arising when Collecting Data on Managerial Prevention and Appraisal Costs

    • The classic quality cost model, can be challenging to apply in real-world situations, especially when collecting data on managerial prevention and appraisal costs. This is due to:
      • Missing Data: It can be difficult to track and collect data on all of the activities that contribute to prevention and appraisal costs.
      • Subjectivity: There may be subjectivity in how management defines and classifies prevention and appraisal costs.
      • Cost Allocation: It can be challenging to accurately allocate costs to specific prevention and appraisal activities.
      • Lack of Awareness: There may be lack of understanding or awareness regarding the importance of tracking prevention and appraisal costs.
      • Lack of Resources: Organizations may not have the resources available to collect and analyze the necessary data.
      • Resistance: There may be resistance from within organizations to implement a CoSQ system.

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    Description

    Explore the essential concepts of management control costs, including prevention and appraisal costs. This quiz also delves into management failures and the associated internal and external costs during and after software development. Enhance your understanding of effective project management and cost control strategies.

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