CPM CPM - - 100: Principles of Project 100: Principles of

Presenter: James E. Lightfoot PMP 1

CPM CPM --100: Principles of Project 100: Principles of Project Management Management

Lesson C: Quality Management Lesson C: Quality Management Presented by

Jim [email protected] Ph: 301-932-9004

Prepared by the Washington, D.C. Chapter of PMI

Presented at the PMI-CPM 2002 Fall Conference

1


Quality Management ReviewPart I: Quality Management

1. Quality Planning: inputs, tools/techniques, outputs

2. Quality Assuranceinputs, tools/techniques, outputs

3. Quality Controlinputs, tools/techniques, outputs

Part II: Other Sources


Part I: Quality Management Review


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” 1

1. International Organization for Standardization. 1993. Quality—Vocabulary (Draft International Standard 8402). Geneva, Switzerland: ISO Press.


Definitions• Quality is:

– ♦♦♦♦ 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. 1993. Quality—Vocabulary (Draft International Standard 8402). Geneva, Switzerland: ISO Press.

3. PMBOK


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)


Quality/ PM Complements

• Customer Satisfaction• Prevention Over Inspection• Management Responsibility• Processes Within Phases


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-proprietaryapproaches such as TQM.


Quality Management Philosophies

Deming Juran Crosby PMI

Definition Conform to Specs

Fitness for use Conform to Requirements

Conform to Requirements

System Prevent Prevent Prevent Prevent

Standard Minimize cost of QM

Minimize cost of QM

Zero Defect Zero Defect

Measure Direct Measure

Cost of Quality Cost of Non Conformance

Cost of Non Conformance

Manager Role

Leadership Participation




Worker role

Maintenance Improvement

Moderate Involvement

Moderate Involvement

High Level Involvement


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.


Philosophical Similarities (Cont.)

• Measurement� Measurement is critical.� Improvements are not viewed in terms

of final products


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.


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”


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.


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 99.73 of the total area under the curve that represented the total population of products produced.


Normal Curve Distribution

“

One Sigma

Two SigmaThree Sigma


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.✦16,000 pieces of mail lost each hour.✦10 commercial airline crashes per day.✦22,000 checks deducted from the

wrong bank account each hour.✦86 seconds without electrical power

daily.


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 0.002 defects outside the control limits for every million units produced. The elusive “Zero Defects” goal is continually pursued.


The 5 PMI Process Groups

Where does Quality fit in?


InitiatingProcesses

ControllingProcesses 8.3 QC

PlanningProcesses8.1 QP

ExecutingProcesses 8.2 QA

ClosingProcesses

PMI Process Groups (Flow)


Quality Processes• Quality Planning – Plan• Quality Assurance – Do• Quality Control – Check


PMI Project Planning Processes


Planning ProcessesCORE PROCESSES

FACILITATING PROCESSES

5.2 ScopePlanning

5.3 ScopeDefinition

6.1 ActivityDefinition

7.1 ResourcePlanning

6.2 ActivitySequencing

6.3 ActivityDuration Est.

7.2 CostEstimating

6.4 ScheduleDevelopment

7.3 CostBudgeting

4.1 Project PlanDevelopment

8.1 QualityPlanning

9.1 OrganizationalPlanning

10.1 CommunicationsPlanning

9.2 StaffAcquisition

11.1 RiskIdentification

12.1 ProcurementPlanning

11.2 RiskQuantification

11.3 Risk ResponseDevelopment

12.2 SolicitationPlanning


Planning Process Flow Chart


5.2 ScopePlanning

5.3 ScopeDefinition

6.1 ActivityDefinition

7.1 ResourcePlanning

6.2 ActivitySequencing

6.3 ActivityDuration Est.

7.2 CostEstimating

6.4 ScheduleDevelopment

7.3 CostBudgeting

4.1 Project PlanDevelopment

hhhh Shows the steps of a process.

hhhh Shows precedencies and dependencies between activities.


Quality Planning (8.1)

• Quality Planning (8.1) -identifying which quality standards are relevant to the project and determining how to satisfy them.


Quality Planning

Inputs


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.


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!


Customer Expectations (“ilities”)

• ProducibilityThe ability to produce a product with available technology, at a cost compatible with market expectations

• UsabilityThe product is fit to perform the expected purpose for which it was designed

• ReliabilityProbability that the product will perform its required functions under stated conditions for a specified length of time

• AvailabilityProbability that the product will perform under given conditions when called on


Customer Expectations (“ilities”)

• MaintainabilityAbility of a unit to be restored to a specified state within a given period of time

• FlexibilityAbility of a product to be used for different purposes, at different capacities and under different conditions

• AcceptabilityDegree of conflict between the characteristics of a product and the prevailing value system of society

• OperabilityDegree to which a product can be safely and easily operated


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


Quality Planning

Tools and Techniques


Quality Planning - Tools & Techniques

• 1. 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


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.


Cost of Quality

✦ Scrap✦ Rework✦ Material cost (additional)✦ Warranty repairs✦ Complaint handling✦ Liability Judgments✦ Product recall✦ Field Service✦ Expediting✦ Process Corrective

Actions

✦ Planning✦ Training and

indoctrination✦ Product Design/Validation✦ Process Validation✦ Test and Evaluation✦ Quality Audits✦ Maintenance/Calibration✦ Field Testing

ConformanceConformance NonNon--ConformanceConformance



• 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.



• 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)


Cause and Effect Diagram(Fish Bone or Ishikawa Flow Chart)

Time

Energy

Machine

Measure

Method

People

Material

Environ.

Major Defect

Cause Effect

✦ Identify major and minor causes for the defect

✦ Classify in related groups✦ Visualize the group with the most

causes



• 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


Quality Planning

Outputs


Quality Planning - Outputs• 1. 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).


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.


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).


Quality Assurance

Inputs


Quality Assurance - Inputs

• 1. 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.


Quality Assurance



Quality Assurance - Tools & Techniques

• 1. 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.


Quality Assurance

Outputs


Quality Assurance - Output

• Quality improvements including:

– New process Initiatives.

– Approval actions.

– Facilitating changes:• Participation in change request activities. • Initiating corrective action initiatives.


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.


Controlling Processes


5.5 ScopeChange Control

10.3 PerformanceReporting

8.3 QualityControl

6.5 ScheduleControl

11.4 RiskResponse Control

7.4 CostControl

4.3 OverallChange Control


Quality Control

Inputs


Quality Control - Inputs

• 1. 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 actualresults.


Quality Control Definitions• Attribute: A characteristic that

reflects. conformance or non-conformance 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 “no-

go”.– For Variables, it applies to the chance

of something happening over the entire range of a distribution curve.


Quality Control



Quality Control - Tools & Techniques

• 1. 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



• 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.

Remember the Normal Distribution Curve?

“

One Sigma

Two SigmaThree Sigma


Process Control Chart

-15

-10

-5

0

5

10

15Upper Control Limit

Lower Control Limit

Lower Tolerance

Upper Tolerance

Time

Process “A”

Mean

Usually, 3 sigma is set to define tolerance limits so that the control limit set by customer specifications are not exceeded.


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.


Scatter Diagram

Plot the results of two variablesShow trendsShow distribution around Central tendencyHighlight Exceptions (out of tolerance condition)



• 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 105 in the PMBOK of example.


Quality Control - Tools & TechniquesQuality 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.


Quality Control - Tools & TechniquesQuality 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)



• 5. Flow Charts– Help analyze how and/or where

problems may occur;•process flow charts•procedural flow charts (step chart)

– Help identify constraints.


Quality Control

Outputs


Quality Control - Outputs

• 1. Quality improvements

• 2. Acceptance decisions

• 3. Rework or scrap decisions

• 4. Completed checklists

• 5. Process adjustments


Part IIOther Sources


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”


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 15 questions on this

area


Exam Pointers✦Points applicable to all areas of the

certification exam:1. Definitions are PMI definitions!2. Questions addressing

“responsibility”are usually looking for the project manager.

3. The longest answer is often the correct answer.


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-14)-

7%


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.


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 9001 and Q9001 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.


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

Business

CPM CPM - - 100: Principles of Project 100: Principles of