ABSTRACT This study presents a decision making process in three steps of knowledge management for test organization using process simulation and financial analysis. First, project cost assessment of test knowledge management process subjects to different project duration and number of staffs. Two knowledge management simulation models representing experienced personnel with knowledge sharing and inexperienced personnel with internal training respectively are employed to contrast test personnel capability. Second, performance evaluation of software testing process by different personnel capability is conducted to simulate system test using three project metrics, namely, duration, effort cost, and quality. Third, a comparative financial analysis is prepared to determine the best solution by return on investment, payback period, and benefit cost ratio. The results from three stages of finding are discussed to arrive at the final scenario. We provide a case study evaluating how software testing industry needs to build effective test organization with high quality personnel for sustainable development and improvement.
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