Traceability Metrics are used to find the quality of the product by component-wise. From the requirements, we prepare the functional spec and from the functional spec, usually, use cases will be derived and from the use cases, test cases will be derived. With the help of test cases, QA team files bugs. This actually proved to be a good approach. Most of the process oriented companies do this. So, based on the above data, the traceability matrix will be created by the management team. Traceability matrix has information from the requirements till the defects. This matrix will be useful to derive some metrics for the health of a component, the no. of bugs regressed for a component, the no. of test cases need to be run and the no. of test cases actually executed, etc., become the metrics for the product.