This paper describes a System Dynamics model which forms the basis for a management flight simulator that explores the impact of two total quality initiatives, Formal Inspection and Quality Function Development and adoption process. The paper focuses on the new perspective on software development dynamics gained in the construction of the model. It describes the measures of performance used and the causal structure of selected sectors. The model links existing software projects management and market diffusion structures, adding an explicit representation of product functionality and evolving customer requirements based on Kano’s Dimensions of Quality diagram. A discussion of future goals for this research and an evaluation of the impact of this kind of work on the software industry is presented.