Basis of Justifiable Verification Costs
90% probability of compliance vs. 10% of not
Non-compliance will cost us $10mil
Cost risk = 10% of $10mil = $1mil
If we verify, we will reduce the loss to $1mil
Cost risk = 10% of $1mil = $100k
So risk reduction = $900k
Any verification costing less than $900k that, with certainty, would detect non-compliance would add value.
If there is uncertainty of the verification activity discovering the non-compliance, say 50% probability, we would be justified in spending up to 50% of $900k; 10%: 10% of $900k, etc.
"The instruction was excellent, the course materials were of a very high standard"
Requirements Analysis & Specification Writing Course
PPI currently presents courses on 6 continents
14 - 18 November, 2016
This five day course addresses systems engineering as it is understood and practised by high-performance enterprises worldwide. Our Systems Engineering training provides an integrated approach to the set of management and technical disciplines which combine to optimize system effectiveness, enhance project success and reduce risk.
Systems Engineering NEWSLETTER
SyEN makes informative reading for the project professional, containing scores of news and other items summarizing developments in the field of systems engineering and in directly related fields.