CPM -100: Principles of Project Management

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1 CPM -00: Principles of Project Management Lesson C: Quality Management Presented by Jim Lightfoot Ph: Presented at the PMI-CPM 2002 Fall Conference Prepared by the Washington, D.C. Chapter of PMI

2 Quality Management Review Part I: Quality Management. Quality Planning: inputs, tools/techniques, outputs 2. Quality Assurance inputs, tools/techniques, outputs 3. Quality Control inputs, tools/techniques, outputs Part II: Other Sources

3 Part I: Quality Management Review

4 Quality Management Project Quality Management includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. It includes all activities of the overall management function that determine the quality policy, objectives, and responsibilities, and implements them by means such as quality planning, quality control, quality assurance, and quality improvement, within the quality system. International Organization for Standardization Quality Vocabulary (Draft International Standard 8402). Geneva, Switzerland: ISO Press.

5 Quality is: Definitions The totality of characteristics of an entity which bear on its ability to satisfy stated or implied needs. 2 Conformance to requirements and fitness for use. 3 (The project must produce as proposed and satisfy a real need.) Quality is not: Excellence, luxury, prestige, or grade 2. International Organization for Standardization Quality Vocabulary (Draft International Standard 8402). Geneva, Switzerland: ISO Press. 3. PMBOK

6 Other Definitions of Quality A product or service's nature or features that reflect capacity to satisfy express or implied statements of need (Deming) Conformance to requirements (Crosby) Fitness for purpose or use (Juran) Product and service characteristics as offered by design, marketing, manufacture, maintenance and service that meet customer expectations (Feigenbaum)

7 Quality/ PM Complements Customer Satisfaction Prevention Over Inspection Management Responsibility Processes Within Phases

8 COMPATIBILITY The basic approach of PMI to quality management is intended to be compatible with the International Organization for Standardization (ISO) as detailed in the ISO series of standards and guidelines. The PMI approach is also compatible with proprietary approaches to quality management such as those recommended by Deming, Juran, Crosby, et al, and non-proprietary approaches such as TQM.

9 Quality Management Philosophies Definition Deming Juran Crosby PMI Conform to Specs Fitness for use Conform to Requirements Conform to Requirements System Prevent Prevent Prevent Prevent Standard Minimize cost of QM Measure Manager Role Worker role Direct Measure Leadership Participation Maintenance Improvement Minimize cost of QM Cost of Quality Leadership Participation Moderate Involvement Zero Defect Cost of Non Conformance Leadership Participation Moderate Involvement Zero Defect Cost of Non Conformance Leadership Participation High Level Involvement

10 Philosophical Similarities Management Support Top management support and commitment are essential. Most problems associated with quality can be attributed to management policy, action or inaction Implementation is applicable to any organization Effective communication and teamwork at all levels are essential.

11 Philosophical Similarities (Cont.) Measurement Measurement is critical. Improvements are not viewed in terms of final products

12 Philosophical Similarities (Cont.) System and Standard Zero defect / Post-production inspection needs to be minimized. Education and training must be continuous. Managers need to provide workers with the means to do a good job.. There are no shortcuts to quality The pursuit of quality must be a continuous effort. Suppliers must be involved in the quality effort.

13 Guru Legacies Deming: Plan-Do-Check-Act (PDCA) and the Japanese Deming Award. Crosby: Quality is Free & Zero Defects. Juran: The Quality Trilogy of Planning, Control and Improvements. Feigenbaum: The Cost of Non- Conformance

14 How Much Quality is Enough? Ideally, the objective is to manufacture parts identical to each other. However, there are conditions that create uncontrollable variances. Unit-to-unit differences usually follow a normal distribution called a Bell Curve. The standard deviation (Sigma) is a measure of variance. As the value of Sigma decreases, variance is reduced.

15 How Much Quality is Enough? Traditionally, a process was considered satisfactory if it was within a 3 Sigma capability. Upper limit at 3 Sigma to the right of the mean and the lower limit at 3 Sigma to the left of the mean. This represented of the total area under the curve that represented the total population of products produced.

16 Normal Curve Distribution One Sigma Three Sigma Two Sigma

17 How Much Quality is Enough? What would you get if 99.9% was good enough? 20,000 incorrect prescriptions per year. 70 incorrect surgical operations per day. 6,000 pieces of mail lost each hour. 0 commercial airline crashes per day. 22,000 checks deducted from the wrong bank account each hour. 86 seconds without electrical power daily.

18 How Much Quality is Enough? Today, the Traditional 3 Sigma process capability is not always good enough. Motorola began a new quality control standard, i.e. the 6 Sigma process capability with variances so small that there will only be defects outside the control limits for every million units produced. The elusive Zero Defects goal is continually pursued.

19 The 5 PMI Process Groups Where does Quality fit in?

20 PMI Process Groups (Flow) Initiating Processes Controlling Processes 8.3 QC Planning Processes 8. QP Executing Processes 8.2 QA Closing Processes

21 Quality Processes Quality Planning Plan Quality Assurance Do Quality Control Check

22 PMI Project Planning Processes

23 Planning Processes 5.2 Scope Planning 5.3 Scope Definition 6. Activity Definition 7. Resource Planning 6.2 Activity Sequencing 6.3 Activity Duration Est. 7.2 Cost Estimating 6.4 Schedule Development CORE PROCESSES 7.3 Cost Budgeting 4. Project Plan Development FACILITATING PROCESSES 8. Quality Planning 0. Communications Planning. Risk Identification.2 Risk Quantification.3 Risk Response Development 9. Organizational Planning 9.2 Staff Acquisition 2. Procurement Planning 2.2 Solicitation Planning

24 Planning Process Flow Chart 5.2 Scope Planning 5.3 Scope Definition 6. Activity Definition 7. Resource Planning 6.2 Activity Sequencing 6.3 Activity Duration Est. 7.2 Cost Estimating 6.4 Schedule Development 7.3 Cost Budgeting 4. Project Plan Development h Shows the steps of a process. FACILITATING PROCESSES h Shows precedencies and dependencies between activities.

25 Quality Planning (8.) Quality Planning (8.) - identifying which quality standards are relevant to the project and determining how to satisfy them.

26 Quality Planning Inputs

27 Quality Planning - Inputs Company Quality Policy: overall intentions and directions with regard to quality. Scope statement: deliverables and project objectives that define stakeholder requirements. Product description: technical requirement and other concerns that may affect quality planning. Standards and Regulations: as they apply. Other Process Outputs: inputs from other knowledge areas including procurement planning, risk planning, etc.

28 Quality Management Framework - Key Concepts Definition of Quality: Conformance to requirements / specifications Responsibility (Everybody s) Management & Line Organization Team & individual for the work at hand. Ownership Project Manager - the ultimate owner!

29 Customer Expectations ( ilities ) Producibility The ability to produce a product with available technology, at a cost compatible with market expectations Usability The product is fit to perform the expected purpose for which it was designed Reliability Probability that the product will perform its required functions under stated conditions for a specified length of time Availability Probability that the product will perform under given conditions when called on

30 Customer Expectations ( ilities ) Maintainability Ability of a unit to be restored to a specified state within a given period of time Flexibility Ability of a product to be used for different purposes, at different capacities and under different conditions Acceptability Degree of conflict between the characteristics of a product and the prevailing value system of society Operability Degree to which a product can be safely and easily operated

31 Quality Team Member Actions Customers- Set the requirement Senior Management-Sets the tone Project Manager and Functional Managers - Select & implement quality requirements Quality Staff - Monitor quality compliance Suppliers / Vendors - Meet the specified quality standards Project Staff - Provide quality at the source

32 Quality Planning Tools and Techniques

33 Quality Planning - Tools & Techniques. Benefit/cost analysis where quality is concerned: Benefit: less rework, lower final costs, and in-creased stakeholder satisfaction. Cost: expense associated with project quality management activities and initiatives. Key: benefits must outweigh costs

34 Cost Of Quality Cost of Quality includes the cost of planning, quality assurance, quality control, rework/waste and warranty. Types of Quality Costs: Internal - defect exists in the product prior to shipment. External - defect exists in the product after shipment. Appraisal - cost incurred to determine the condition of the product. Prevention - costs incurred to reduce failure and appraisal cost.

35 Cost of Quality Conformance Planning Training and indoctrination Product Design/Validation Process Validation Test and Evaluation Quality Audits Maintenance/Calibration Field Testing Non-Conformance Scrap Rework Material cost (additional) Warranty repairs Complaint handling Liability Judgments Product recall Field Service Expediting Process Corrective Actions

36 Quality Planning - Tools & Techniques 2. Benchmarking Objectives: Comparing actual or planned project practices to those of other projects or companies. Generating ideas for improvements. Providing a standard by which to measure performance.

37 Quality Planning - Tools & Techniques 3. Flowcharting Any diagram which shows how various elements of a system relate: System or Process flow charts showing interfaces and how elements relate. Cause-and-effect diagrams (also called Ishikawa diagrams or fishbone diagrams)

38 Cause and Effect Diagram (Fish Bone or Ishikawa Flow Chart) Cause Effect Time Machine Method Material Major Defect Energy Measure People Environ. Identify major and minor causes for the defect Classify in related groups Visualize the group with the most causes

39 Quality Planning - Tools & Techniques 4. Design of experiments An analytical technique which helps identify which variable has the most influence on the overall outcome. Used for determining: Product improvements such as selecting the best combination of parts for a desired feature. Project improvements such as cost and schedule trade-offs

40 Quality Planning Outputs

41 Quality Planning - Outputs. Quality management plan Describes how the management team will implement quality requirements for the project. 2. Operational definitions: They address the required quality control, quality assurance, and quality improvements for the project. They describe, in very specific terms, what something is, and how it is measured by the quality control process (metrics).

42 Quality Planning - Outputs 3. Checklists: A structured tool, usually for a product or activity, and used to verify that a set of required steps have been performed. 4. Inputs to other processes such as: Special skill requirement. Procurement quality requirements. Reporting goals and thresholds.

43 Quality Assurance (8.2) Quality Assurance (8.2) evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. ( Performed throughout the project and may be both an internal function and an external function).

44 Quality Assurance Inputs

45 Quality Assurance - Inputs. Quality management plan. 2. Results of quality control measurements, records of quality control activities that are in a format for comparison and analysis. 3. Operational definitions.

46 Quality Assurance Tools and Techniques

47 Quality Assurance - Tools & Techniques. Quality planning tools and techniques Benefit/Cost analyses, benchmarking, flow charting and design of experiments. 2. Quality audits A structured review of activities on a continuous basis.. scheduled or random. by trained in-house auditors or third parties.

48 Quality Assurance Outputs

49 Quality Assurance - Output Quality improvements including: New process Initiatives. Approval actions. Facilitating changes: Participation in change request activities. Initiating corrective action initiatives.

50 Quality Control (8.3) Quality Control (8.3) monitoring specific project results to determine compliance with relevant quality standards and identify ways to eliminate causes of unsatisfactory performance.

51 Controlling Processes 0.3 Performance Reporting 4.3 Overall Change Control FACILITATING PROCESSES 5.5 Scope Change Control 6.5 Schedule Control 7.4 Cost Control 8.3 Quality Control.4 Risk Response Control

52 Quality Control Inputs

53 Quality Control - Inputs. Quality management plan 2. Operational definitions 3. Checklists 4. Work results and forecasts Process results and product results. Planned or expected results (from the project plan). Other information about actual results.

54 Quality Control Definitions Attribute: A characteristic that reflects. conformance or nonconformance to specifications and tolerances. Variable: a characteristic that can be measured in increments. Probability: The chance that something will happen. For attributes, it applies to go or nogo. For Variables, it applies to the chance of something happening over the entire range of a distribution curve.

55 Quality Control Tools and Techniques

56 Quality Control - Tools & Techniques. Inspection ( product reviews, audits, and walk-through surveys). Activities undertaken to determine whether results of a single activity or the final product conform to requirements. Measuring Examining Testing

57 Quality Control - Tools & Techniques 2. Control charts A graphic display of results over time. used to determine if the process is in control used to collect data on process variance. used to determine cost and schedule variance.

58 Remember the Normal Distribution Curve? One Sigma Three Sigma Two Sigma

59 Process Control Chart Usually, 3 sigma is set to define tolerance limits so that the control limit set by customer specifications are not exceeded. Process A Upper Control Limit Upper Tolerance Mean Lower Tolerance Lower Control Limit Time

60 Process Control Charts The Rule of Seven. Statistically, whenever there are seven consecutive process data points measured on either side of the mean, the process is going out of control. A Process Capability Assessment will use control charts to determine whether a process can meet customer specifications. This is especially important during planning and cost estimating when customer requirements exceed normal plant process standards.

61 Scatter Diagram Plot the results of two variables Show trends Show distribution around Central tendency Highlight Exceptions (out of tolerance condition)

62 Quality Control - Tools & Techniques 3. Pareto Diagram: A histogram, ordered by frequency of occurrence (80/20 rule). Rank ordering is used to focus corrective action on the most often occurring problem. See page 05 in the PMBOK of example.

63 Quality Control - Tools & Techniques 4.Statistical Sampling Includes; Attribute Sampling: Determining the number of acceptable items in a sample of of products in a given lot and deciding whether to reject the entire lot. Variable Sampling: Using control charts to measure variance in a process to determine the process capability, determine percent of non-conformance and make change decisions.

64 Quality Control - Tools & Techniques 4. Statistical sampling (Cont.) Special vs Random Causes Special --Unusual events Random -- Normal process variation Tolerances Acceptance range (product is acceptable or not) Control limits (process is in or out of control)

65 Quality Control - Tools & Techniques 5. Flow Charts Help analyze how and/or where problems may occur; process flow charts procedural flow charts (step chart) Help identify constraints.

66 Quality Control Outputs

67 Quality Control - Outputs. Quality improvements 2. Acceptance decisions 3. Rework or scrap decisions 4. Completed checklists 5. Process adjustments

68 Part II Other Sources

69 Other Sources Lew Ireland s PMI text book on Quality. Deming s Out of the Crisis Crosby s Quality is Free Juran s Handbook on Quality Kerzner s Project Management

70 Exam Pointers Points applicable to the Quality area of the certification exam: Definitions are important Memorize the process charts Memorize the control charts Expect about 5 questions on this area

71 Exam Pointers Points applicable to all areas of the certification exam:. Definitions are PMI definitions! 2. Questions addressing responsibility are usually looking for the project manager. 3. The longest answer is often the correct answer.

72 Certification Examination Measures knowledge and understanding of the PMBOK. 200 Questions (multiple choice) Initiating (needs, charter, etc - 8) - 4% Planning (scope, schedule, QP -74)-37% Executing (teaming, QA, etc -48)- 24% Control (cost, scope, risk, QC -56)- 28% Closing (admin/contract closeout-4)- 7%

73 Certification Examination Includes situational questions: What should be the first step.? What would be the best.? What should the Project Manager.? Includes several questions based on the same set of facts. Includes questions that require under-standing of Context and Processes.

74 Certification Examination Don t be intimidated by the exam. It is fair, regardless of the first-time failure rate. PMI became the first certification department in the world to be granted an ISO 900 and Q900 certification. Examination questions must meet the standards from the APA (Amer. Psychological Assn), EEOC, and the NOCA (National Organ. of Competency Assurance). At least 30 PMPs review each question.

75 Recent Quality Question Distribution Initiating Process: none Planning Process Quality Planning: 4 questions Executing Process Quality Assurance: 6 questions Controlling Process Quality Control: 7 questions Closing Process: none

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