IT QM Part1 Lecture 1

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IT QM Part1 Lecture 1
Dr. Withalm 22-Feb-15
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Lectures at the University of Bratislava/Spring
2014

• 27.02.2014 Lecture 1 Impact of Quality-From
  Quality Control to Quality Assurance
• 06.03.2014 Lecture 2 Organization
  Theories-Customer satisfaction-Quality Costs
• 13.03.2014 Lecture 3 Leadership-Quality Awards
• 20.03.2014 Lecture 4 Creativity-The long Way to
  CMMI level 4
• 27.03.2014 Lecture 5 System Engineering
  Method-Quality Related Procedures
• 03.04.2014 Lecture 6 Quality of SW products
• 10.04.2014 Lecture 7 Quality of SW organization

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Vorlesungen am Technikum-Wien Sommer 2014 (4A/4B)

• 07.03.2014 Lecture 1 Impact of Quality-Quality
  Definition-Standards
• 14.03.2014 Lecture 2 From Quality Control to
  Quality Assurance
• 21.03.2014 Lecture 3 Organization
  Theories-Product Liability-Emphasis from Quality
  Control to Prevention
• 28.04.2014 Lecture 4 Customer Satisfaction-Qualit
  y Costs
• 11.04.2014 Lecture 5 Team Work-Leadership
  Behavior-Deal with Changes-Kind of Influencing
  Control-Conflict
• 18.04.2014 Lecture 6 Tasks Responsibility of
  Leading Personnel-Audits-Quality Awards
• 25.04.2014 Lecture 7 Management
  Science-Creativity Techniques-Embedded
  Systems-FMEA

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Todays Agenda

• Impact of Quality
• Quality definition
• Standards

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Impact of Quality/1How to measure the fulfillment
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Impact of Quality/2 How to establish Business
Strategies
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Impact of Quality/3 How to establish Business
Models
Product Value proposition
Customer Interface Target Customer
Distribution Channel
Relationship
Infra-structure Value Configuration
Capability
Partnership
Financial Aspects Cost Structure
Revenue (Sharing) Model
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Impact of Quality/4EFQM model-Bench marking of
Enterprises
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Impact of Quality/5

• Quality wins
• Enterprises which focus on quality are more
  successful
• Different views will be presented
• Quality deficiencies
• Either an enterprise fails or even a whole
  technology

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Quality wins ( McKinsey)/1
High performance and customers benefit brings
you in top position
Three Dimensions of Quality

• Strategy
• Management of core processes
• Motivation of employees

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Quality wins ( McKinsey)/2

• A strategy is a long term plan of action designed
  to achieve a particular goal, as differentiated
  from tactics or immediate actions with resources
  at hand. Originally confined to military matters,
  the word has become commonly used in many
  disparate fields
• Tactics is the collective name for methods of
  winning a small-scale conflict, performing an
  optimization, etc. This applies specifically to
  warfare, but also to economics, trade, games and
  a host of other fields such as negotiation.
• Tactics and strategy are often confused
• An example of the difference
• The overall goal is to win a war against another
  country.
• The strategy is to undermine the other nation's
  ability to wage war by annihilating their
  military.
• The tactics (told to the combatants) are to do
  very specific things in a specific place.

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Quality wins ( McKinsey)/3

• "Management" (from Old French ménagement "the art
  of conducting, directing", from Latin manu agere
  "to lead by the hand") characterizes the process
  of leading and directing all or part of an
  organization, often a business, through the
  deployment and manipulation of resources (human,
  financial, material, intellectual or intangible).
  Early twentieth-century management writer Mary
  Parker Follett defined management as "the art of
  getting things done through people."
• One can also think of management functionally, as
  the action of measuring a quantity on a regular
  basis and of adjusting some initial plan, and as
  the actions taken to reach one's intended goal.
  This applies even in situations where planning
  does not take place. From this perspective, there
  are five management functions Planning,
  Organizing, Leading, Co-ordinating and
  Controlling.
• .

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Quality wins ( McKinsey)/4

• A business process is a recipe for achieving a
  commercial result. Each business process has
  inputs, method and outputs. The inputs are a
  pre-requisite that must be in place before the
  method can be put into practice. When the method
  is applied to the inputs, then certain outputs
  will be created.
• A business process is a collection of related
  structural activities that produce something of
  value to the organization, its stake holders or
  its customers. It is, for example, the process
  through which an organization realizes its
  services to its customers..
• Motivation is the set of forces that cause people
  to behave in certain ways. Performance of an
  individual depends on his ability backed by
  motivation

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Quality wins ( McKinsey)/5

• Four steps to reach top quality
• Testing
• Quality should be reached by testing
• But testing only reveals errors
• Quality awareness is not established
• General organizational measures are missing
• Improving
• Processes are established
• Processes are guidelines how to
  develop/manufacture
• Employees are trained to apply processes
• Preventing
• Application of processes will be checked and
  processes will be correspondingly improved
• Suppliers must also adhere to defined processes
• Satisfying the customer
• Focusing on requirements of customers
• Functional non functional business oriented
  implicit requirements
• QFD (see lecture 6 in part2)
• Not only focusing on development and
  manufacturing but on the whole plc (product life
  cycle)

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Quality wins ( McKinsey)/5

• Long term observations by McKinsey have shown a
  strong correlation
• The higher the awareness concerning quality
  assurance
• According the considered quality steps
• The higher Return of Sales (RoS) as well as
  Revenue Growth (RG) of the respective company
• The range spreads concerning RoS from 0.6 (Step1)
  to 9.1 (Step4)
• Whereas the comparables dates for RG show a range
  from 5.4 (Step1) to 16.0 (Step4)
• Investment in Quality Assurance pays!

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Quality - Time Cost/1
Magical Triangle of Quality Assurance
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Quality - Time Cost/2

• Both costs and time are more or less fixed by
  customers
• The budget of a company is limited for a given
  project
• Time is also limited because of many factors
• SW project is part of a greater project
• i.e. car model, opening of a building,
  certification of a railway
• There are dependencies between other projects
• i.e. fixed by net plans
• Quality assurance can not be abandoned because of
  many factors
• i.e. Liability, reputation, error costs,
  warranty.
• In SW projects prioritizing of requirements and
  respective versioning of releases are the most
  appropriate solutions.

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Quality - Time Cost/3

• Magical Triangle of Quality Assurance
• Theoretical three solutions are possible
• Higher quality entails being later and higher
  costs
• Time reducing entails reduced quality and higher
  costs
• Reduced costs entails reduced quality and being
  late
• Practical solution encompasses the following
  steps
• Never reduce quality
• Time and cost are in general fixed by customer
• Try to adapt requirements together with customer
• Try to establish versioning of shipping the
  product

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Quality Improvement Progams/1

• Generally management recognizes the impact of
  quality assurance therefore
• Quality improvement programs should be
  established
• TQM, SixSigma, CMMI, EFQM, QFD.
• Whereas some of them are assessment methods
  usually they are combined with improvement
  projects.
• Unfortunately 80 of them failed because of the
  following reasons
• Management neither believes in nor backs it
• Inadequate equipment of employees
• Organizational barriers

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Quality Improvement Progams/2

• Main contribution of top management is requested
  in the establishment of QIP
• i.e. make resources available, personal
  engagement, motivation of employees, overcoming
  of organizational barriers as well as syndromes.
• Top management must not be invisible during the
  execution of QIP
• Regularly attending meetings, checking progress,
  motivating employees
• Taking the role of a godfather/coach.
• Always available in case of difficulties and
  never delegating issues.

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Quality Improvement Progams/3
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Impact of quality deficiencies/1Examples/1

• E-business case of Christmas/1999
• Millions of US citizens ordered their gifts via
  e-business
• Unfortunately more than 50 of gifts were
  delivered after Dec. 24th.
• Lesson learned
• Not only a portal for booking and billing/paying
  items is enough
• The whole business process must be implemented
• i.e. delivering of goods

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Impact of quality deficiencies/5 Example/2
41 of Britons refuse bank transactions via the
Internet Dieter Claasen, Britons disappointed
by On line services, Die Presse, 3.Aug.2000
British online Bank EGG virtual bank
robbery http//www.independent.co.uk/news/Digit
al/Update/2000-08/first230800.shtml
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Impact of quality deficiencies/6 Example/3
cancer clinic Therac-25 Nanca Leveson, Clark
Turner, An Investigation of the Therac-25
Accidents, IEEE Computer, July 1993
rolling mill Peter Neumann, Computer related
risks, New York, 1995
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Success Factors for Emerging Technologies

• Emerging technologies afford new opportunities
  and big potentials
• Key factors for success are
• Flexibility
• Generally business processes/workflows are
  defined and never adapted
• Organizational learning
• Not only business processes but the whole
  business strategy and business models should be
  analyzed and evaluated
• i.e. actually Collaborative Networked
  Organizations (CNO)/Virtual Organizations (VO)
  have big business potential
• Innovation
• Coming back to this issue in lecture 7
• But the winner takes it all

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Classification of Failures in Case of Quality
Deficiencies

• Generally Safety Integrity Levels (SIL) are
  established in different standards which are
  dependent on losses
• Humans
• Material
• Engines
• Environment
• Money
• Trust
• The higher the SIL the higher the Quality
  Assurance Measures/Methodologies
• i.e. in SW Reviews, Tests, FMEA.

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Considerations about Quality/1Customer Perceived
Qualityagainst Conformance Quality

• Generally Customer Perceived Quality implies
  higher relative price
• Relative effectiveness in conforming to
  specifications implies
• Reducing cost for quality which moreover is
  responsible for relative lower costs
• However, there are some risks and therefore it
  makes sense
• Check, if relative effectiveness is accepted by
  customer
• Check, if you design or adopt a technology which
  is according customer perceived relative quality
• Price is too high-gtprofitability and growth is
  endangered
• You make a compromise (only in features) to reach
  a relative value
• With relative value you get a relative market
  share
• You must check if this is enough for the
  profitability and growth of your company
• i.e. premise you have established a BS (Business
  Strategy) and BM (Business Model)

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Considerations about Quality/2Customer Perceived
Qualityagainst Conformance Quality

• The other approach is the following
• Your portfolio is conforming to specifications
• You reduce cost of quality (only features)
• Getting lower costs
• You must again check, if you reach the planned
  profitability and growth
• This exercise makes clear that quality must be
  defined
• Its evident that we are not speaking of
  erroneous SW systems
• But of features respectively requirements
• Later on we will specify requirements more deeply
• i.e. explicit, implicit, non functional, and
  business oriented ones

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Considerations about Quality/4Customer Perceived
Qualityagainst Conformance Quality

• Is the quality of a Rolls Royce higher than that
  of a Mini Cooper
• This example is really exaggerated
• It could be an extreme example for customer
  perceived quality
• But of course think on your profitability and
  growth
• Have you planned to produce in the RR market?
• Dont go by what I say go by what I mean!
• its really the most severe challenge in SW
  engineering fledging out the most essential
  requirements of a customer
• In further lections one of the main topics will
  be requirement engineering!

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Quality definitions/1
Quality the totality of features and
characteristics of a product or service that bear
on its ability to satisfy stated or implied
needs (ISO8402).
Software quality the totality of features and
characteristics of a software product or service
that bear on its ability to satisfy stated or
implied needs (ISO/IEC9126 )
Quality means to fulfill all different kinds of
Requirements
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Quality definitions/2Quality of ... three pros
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Quality definitions/3Definitions of ... three
pros

• Product A software package, consisting of code
  and publications, that eventually is delivered
  to a customer. In a broader sense, the
  definition of product also includes the product
  support materials that are related to such
  activities as marketing and maintenance.
• Project The combined resources (people, machines,
  materials), processes, and activities that are
  dedicated to building and delivering a product.
  A project has a defined starting point and
  defined objectives from which completion
  is identified. Also, a group of people,
  typically comprised of two or more
  organizations, working on the same project.
• Process A systematic approach that is designed to
  achieve a specific purpose.
• Documentation dynamic activity of high value
  enhancement

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Quality definitions/4

• Products are characterized by features,
  requirements, and needs
• Processes on the other hand should adhere on
  standards
• Standards in which each process area of SW
  engineering is clearly defined
• Examples are requirement management,
  configuration management.
• Whereas in a project a product should be
  developed/manufactured
• Applying a standard process
• ISO 9001 respectively CMMI will measure/assess
• How an organization adheres to the standardized
  process
• Respectively if a standardized process is
  documented/understood/applied

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Quality definitions/5 Non functional requirements
or Software quality characteristics/1
Functionality what SW does Reliability
maintain function under stated conditions Usabili
ty effort needed to use Efficiency performance
of SW / amount of resources used Maintainability
effort for modification
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Quality definitions/6 Software quality
characteristics/2
Portability transfer from one environment to
another Availability of data Integrity of
data Confidentiality of data Auditing of
transactions
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Standards/1
Important standards
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Standards/2

• ISO 9000 is composed of the following sections
• ISO 90002000, Quality management systems
  Fundamentals and vocabulary. covers the basics of
  what quality management systems are and also
  contains the core language of the ISO 9000 series
  of standards. The latest version is ISO
  90002004.
• ISO 9001 Quality management systems -
  Requirements is intended for use in any
  organization which designs, develops,
  manufactures, installs and/or services any
  product or provides any form of service. It
  provides a number of requirements which an
  organization needs to fulfill if it is to achieve
  customer satisfaction through consistent products
  and services which meet customer expectations.
  This is the only implementation for which
  third-party auditors may grant certifications.
  The latest version is 2000.
• ISO 9004 Quality management systems Guidelines
  for performance improvements. covers continual
  improvement. This gives you advice on what you or
  could do to enhance a mature system. This
  standard very specifically states that it is not
  intended as a guide to implementation

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Standards/3
Standards set rules in the relations of the
following stake holders
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Standards/5 QA is not only focusing on
development manufacturing
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Standards/6

• Requirements stated in ISO 9001 (2000)

G E N E R A L R E Q U I R E M E N T S
Identify the processes neede for the quality
management system Determine the sequence and
interaction of these processes Ensure the
availability of resources and information Monitor,
measure and analyse these processes, Implement
actions necessary to achieve planned results and
continual improvement of these processes
D O C U M E N T A T I O N R E Q U I R E M E N T
S
General
Qualitymanual
Control ofrecords
Control ofdocuments
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Standards/7

• Requirements stated in ISO 9001 (2000)

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Standards/8

• Requirements stated in ISO 9001 (2000)

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Standards/9Most recent version of ISO 9000
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Standards/10 Essential improvement compared to
the original version of 1992

• Engagement and commitment of top management
• Customer focused
• Management processes are essential parts of the
  quality management system
• Quality targets are the linking between politics
  and their realization in the process management
• Management review is a very efficient means to
  measure
• Effectiveness of management system
• Customer satisfaction.

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Standards/11 Essential improvement compared to
the original version of 1992

• Information is a very important resource
• Much higher requirements on process management
• Enforce communication with customers to reach
  more effective relations
• Part of processes are focused to permanently
  check and improve the process itself
• Methods and measures should be defined and
  introduced.

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Standards/12
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Thank youfor your attention!
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