As a CMMI Consultant, during CMMI consulting assignment, you may be asked about the benefits of CMMI related to Cost of Poor Quality (COPQ). CMMI Consultants may answer this question by taking input from the post below:

CMMI FAQ 0

24th November, 2014

A study was conducted by the SEI (now CMMI Institute) on the metrics data collected from 35 large organizations across the world. These organizations having low as well as high maturity apply CMMI Process Improvement practices to their Software Engineering, System Engineering and other Engineering activities.

For example controlling the Cost of Poor Quality (COPQ), an organization named ABB calculated the Cost of Poor Quality (COPQ) by calculating the Defects of Integration and System Testing and tracking time for defect corrections and retesting. As we all know that fixing defects at the stage of System and Integration Testing phase is more costly than earlier phases.

After a year of CMMI Process Implementation it was observed that there was a reduction of 30% in the cost of poor quality. It was also calculated that the Return on Investment (ROI) on major process changes was 3:1 to 5:1 (benefit to cost of process improvement activities) and the organization had a net economic benefit of 50 percent.

This shows that CMMI Process Implementation can lead to reduced cost of poor quality and good return on investment over a longer period of time of implementation.

For controlling the Cost of Poor Quality (COPQ), an organization named ABB calculated the Cost of Poor Quality (COPQ) by calculating the Defects of Integration and System Testing and tracking time for defect corrections and retesting. As we all know that fixing defects at the stage of System and Integration Testing phase is more costly than earlier phases.

After a year of CMMI Process Implementation it was observed that there was a reduction of 30% in the cost of poor quality. It was also calculated that the Return on Investment (ROI) on major process changes was 3:1 to 5:1 (benefit to cost of process improvement activities) and the organization had a net economic benefit of 50 percent.

This shows that CMMI Process Implementation can lead to reduced cost of poor quality and good return on investment over a longer period of time of implementation.

Source: Performance Results of CMMI®-Based Process Improvement Report.