A Value - Based Framework for the Cost - Benefit Evaluation of Software Inspection Processes

In this paper we use the value chain concept, which links the level of value of the final product to the fitness of working products, for planning inspection activities. Following this value chain an inspection tackles the risk of a lower level of value due to defects in a working product from two sides: Inspection lowers the frequency of loss with removal of defects and the size of potential loss with a focus on defects that have high impact on the value chain. Thus it is important to focus inspection activities on working products and potential defects, which a) would have serious impact on the level of value of the final system, if they go undetected; and b) would be much more costly to remove during later stages of development. We apply the framework to a simple example project to demonstrate the main concepts of inspection benefits and discuss how inspection costs and benefits can be compared for overall evaluation of inspection utility.