Appendix B: Software Quality Management Standards and Models
B.1 ABC Software Ltd – An Unnecessary Loss – a Mini-Case
2015 was ABC Software's worst year since being founded in 1985. The company lost almost $2.1 million, sales dropped 35%, and it had to let go of 145 out of its 390 personnel.
ABC Software specializes in the development of custom-made information systems for governments and government agencies. Only a very small part of the company's activities was directed toward the development of COTS software packages. By 2013, the company's annual sales reached over $65 million.
“A clear case of negligence caused unnecessary losses and severe damage to the company's reputation – that will need at least 5 years to recover,” Sam Baron, the company's deputy manager operations and quality, explained.
“It all began in 2005, when management realized that in order to further grow the company business, it would need to become ISO 90003 certified. It took us about a year to get organized with a full set of procedures and written work instructions, and to train our staff in implementing the procedures. National Standard Institute experts reviewed our procedures and performed a comprehensive audit to verify staff compliance with our procedures. A few days after the audit, we received the much anticipated ISO 90003 standard certification document, which I proudly presented at the following management and board meeting, and to which the participants expressed their appreciation. The ...
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