* Cost of Quality Analysis:
* The given table lists costs for defect prevention, appraisal, internal failure, and external failure.
* Defect prevention cost is $50,000, while costs for appraisal, internal failures, and external failures are $250,000, $200,000, and $200,000, respectively.
* The combined cost of internal and external failures is significantly high compared to defect prevention costs.
* Defect Detection and Prevention (DDP):
* DDP measures the effectiveness of defect prevention activities and early detection mechanisms.
* In this case, 1,000 defects were caught before release (appraisal) and 100 defects escaped to production.
* DDP = (Defects found before release / Total defects) = 1000 / (1000 + 100) = 90.91%.
* While this DDP is relatively high, the costs of appraisal and failures indicate that prevention strategies need more investment.
* Key Cost Drivers:
* High internal and external failure costs indicate inefficiencies in earlier stages of quality assurance.
* Shifting investments from appraisal and failure costs towards defect prevention would reduce the overall cost of quality.
* Evaluating Options:
* Option A ("More testing needed because DDP < 90%") is invalid since DDP is above 90%.
* Option C ("The cost of testing is justified") does not address the imbalance between high failure costs and low prevention spending.
* Option D ("More effort on appraisal") contradicts the cost-benefit focus of investing in prevention.
* Option B is correct because enhancing defect prevention strategies will reduce downstream costs.
References and Syllabus Alignment:
* This conclusion aligns with the ISTQB Advanced Test Management syllabus section on "Cost of Quality" and strategies to optimize testing investments. Specifically, prevention is emphasized as more cost-effective than appraisal and failure management.