Pareto Diagram

Pareto analysis helps by identifying areas that cause most of the problems, which normally means you get the best return on investment when you fix them. It is most applicable in software quality because software defects or defect density never follow a uniform distribution. Rather, almost as a rule of thumb, there are always patterns of clusterings ”defects cluster in a minor number of modules or components , a few causes account for the majority of defects, some tricky installation problems account for most of the customer complaints, and so forth. It is, therefore, not surprising to see Pareto charts in software engineering literature. For example, Daskalantonakis (1992) shows an example of Motorola's Pareto analysis for identifying major sources of requirement changes that enabled in-process corrective actions to be taken. Grady and Caswell (1986) show a Pareto analysis of software defects by category for four Hewlett-Packard software projects. The top three types (new function or different processing required, existing data need to be organized/ presented differently, and user needs additional data fields) account for more than one-third of the defects. By focusing on these prevalent defect types, determining probable causes, and instituting process improvements, Hewlett-Packard was able to achieve significant quality improvements.

Figure 5.3 shows an example of a Pareto analysis of the causes of defects for an IBM Rochester product. Interface problems (INTF) and data initialization problems (INIT) were found to be the dominant causes for defects in that product. By focusing on these two areas throughout the design, implementation, and test processes, and by conducting technical education by peer experts, significant improvement was observed . The other defect causes in the figure include complex logical problems (CPLX), translation-related national language problems (NLS), problems related to addresses (ADDR), and data definition problems (DEFN).

Figure 5.3. Pareto Analysis of Software Defects

Another example of Pareto analysis is the problem component analysis conducted at IBM Rochester. The AS/400 software system consists of many products and components. To ensure good return on investment in quality improvement resources, a component problem index based on three indicators was calculated for each release of the software system, and for significant improvements strong focus was placed on the problem components. The problem index is a composite index of three indicators:

The composite component problem index ranges from 0 to 9. Components with an index of 5 and higher are considered problem components. From a Pareto analysis of a product, 27% of the components had an index of 5 and higher; they accounted for about 70% of field defects (Figure 5.4). As a result of this type of Pareto analysis, formal line items for improving problem components (e.g., component restructure, module breakup, complexity measurement and test coverage, and intramodule cleanup) were included in the development plan and have effected significant positive results.

Figure 5.4. Pareto Diagram of Defects by Component Problem Index

Note: Figure 5.4 is not a Pareto chart in its strict sense because the frequencies are not rank ordered. For a Pareto chart, the frequencies are always in strictly descending order, and the cumulative percentage line is a piecewise convex curve. If we take a two-category view (5* + components versus others), then it is a Pareto chart.

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