5_Project Quality Management

7/31/2019 5_Project Quality Management

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TCS Confidential & Proprietary

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Project Quality Management


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Change log

Update date - Updated by - Log of changes

31-Jan-02 - V.Selvakumar - Created the PPT

10-Sep-02 - Krishnakumar(KK) - Updated as per PMBOK 2000version. Modified the organization and presentation of topics.

26-Feb-03- Rama Ramesh- Removed some animation effects toimprove the presentation.

05-Aug-03- Ashok Chawla-Minor changes to improve thepresentation.

13-Apr-05 Sandeep Soni updated as per PMBOK 2004 version

20-Feb-08 Srinivas Chennapragada -> More additions to PPT as

per PMBOK

27-Mar-09 Jeyakaran Jayaraj updated the ppt based onPMBOK Version 4


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Definition of Quality

Quality is the totality of features and characteristics of a product or service that

bear on its ability to satisfy the needs for which it was undertaken.

Some goals of quality programs include:

- Fitness for use. (Is the product or service capable of being

used?). This is most important definition. This is acustomers definition of quality - customers view.

- Fitness for purpose. (Does the product or service meet itsintended purpose?)

- Customer satisfaction. (Does the product or service meet

the customer's expectations?)- Conformance to the requirements. (Does the product or

service conform to the requirements?) - producers view


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Quality Vs Grade

Project Management team must be careful not to confusequality with grade.

Quality is The degree to which a set of inherentcharacteristics fulfill requirements.

Grade is Category assigned to products or services

having the same functional use but different technicalcharacteristics.

Low quality is always problem, Low grade may not be.

For example : Software product may be of

- High quality (no obvious bugs, readable manual) and lowgrade (limited number of features)

- Low quality (many bugs, poorly organized user doc) andhigh grade (numerous features).

Determining and delivering the required levels of both quality andgrade are the responsibilities of project manager and projectmanagement team.


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TCS Confidential & Proprietary5

Quality Vs Grade

Precision & Accuracy: If true value is 13.987 then if an instrumentgives outputs: 13.986, 13.983, 13.989, 13.985, 13.981 then wecan say Precision is up to two decimal places that 13.98. Meansconsistency that value of repeated measurements are obtained asoutput. Accuracy is the correctness of a measured value close toits true value

Project Quality management is a subset of Project Managementthat includes the processes required to ensure that the project willsatisfy the needs for which it was undertaken. Qualitymanagement recognize the importance of :

Customer Satisfaction

Prevention over inspection

Continuous improvement

Management responsibility


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The major processes under this Knowledge area are

Plan Quality ( Planning Project Management)

Perform Quality Assurance( Executing ProjectManagement)

Perform Quality Control (Monitoring and Controlling)

Poor Quality Good QualityIncreases Risks Decreases Risks

Decreases Productivity Increases Productivity

Low Moral Increases Cost Effectiveness

Low Customer satisfaction High Customer satisfaction


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Quality Assurance Vs Quality

Control

Quality Assurance is the Managerial process for Quality which;

Organizes

Design programs / processes

Sets objectives

Provide resources

Develops procedures

Quality Control is the technical aspect of Quality which;

Examines results

Analyzes result

Monitors conformance Provides reporting



Cost of Quality

Cost of Quality is the total cost of all efforts related toquality throughout the product life cycle.

This includes all work to build a product or service thatconforms to the requirements (cost of conformance) as wellas all work resulting from nonconformance to the

requirements(cost of non-conformance).

A typical project should have a goal of between 3-5% of thetotal value as the cost of a quality program depending onthe type of project and its total dollar value.



Cost of Conformance

Cost of Conformance :

- Planning

- Training and indoctrination

- Process control

- Field testing

- Product design validation

- Process validation

- Test and evaluation

- Quality audits- Maintenance and calibration



Cost of Non-Conformance


- Scrap

- Rework

- Expediting

- Additional material or inventory

- Warranty repairs or service

- Complaint handling

- Liability judgments

- Product recalls- Product corrective actions



Cost of non-quality

Cost of non-quality is estimated to be 12-20% of sales

It includes

- Waste of time and materials

- Rework of poor quality products

- Additional material- Delays in schedule

- Product and service image

- Corporate image



Cost Categories

1)Prevention Cost - Cost to plan quality- Training.

- Process capability studies.

- Surveys of vendors/suppliers.

- Surveys of subcontractors.

2) Appraisal Cost -Cost of evaluating processes/outputs.

- Inspection/Testing or the products.

- Maintenance of inspection/test equip.

- Cost to process and report inspection data humanresources, equip, time.

- Design reviews- between owner and project.- Internal design reviews and walk throughs peer

reviews.

- Expense reviews budgeted to actual.



Cost Categories

3)Internal Failure Cost Defects corrected before customer sees- Scrap and rework-costs to correct defects/external

expertise

- Charges related to late payment of bills failure to take

advantage of discounts- Inventory costs that are a direct result of defects

- Engineering change costs related to correcting a designerror when original design flawed, not related tocustomer scope change

- Infant mortality

- Correcting documentation


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Cost Categories

4) External Failure Cost Defects not seen before product goes tocustomer

- Warranty cost cost of repair or replacement

- Field service personnel training cost

- Recall costs- Product liability suits

- Complaint handling

- Future business losses

5) Measurement and Test equipment- Capital cost of equipmentused to perform prevention and appraisal activities.



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Plan Quality:

Identifying which quality standards are relevant to the project anddetermining how to satisfy them.

Tools & Techniques

Cost-Benefit AnalysisControl charts

Statistical sampling

Flowcharting

Proprietary quality methodologies

Benchmarking

Design of Experiments (DOE)

Cost of Quality (COQ)

Additional Quality planning tools

Quality Planning

Enterprise environmental

factor

Risk register

Schedule base line

Cost performance baseline

Stake holder resgister

Scope baseline

Organizational process

assets

Project scope statement

Project management plan

Quality management plan

Quality metrics

Quality checklists

Process improvement plan

Quality baseline

Project management plan (updates)


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Inputs in Plan Quality

Scope Baseline: This includes the Scope Statement, WBS, and WBS

dictionary. Stakeholder Register:The stakeholder register indentifies

stakeholders with a particular interest in, or impact or quality.

Cost Performance Baseline: Refers the accepted time phase used tomeasure cost performance.

Schedule Baseline: Refers the accepted schedule performancemeasures including the start and finish dates

Risk Register

Enterprise Environmental Factors: Like governmental regulations,Rules, Standards or guidelines etc., Some other points to consider areworking/operating conditions of the project/product which may affect the

project quality. Organizational Process Assets: Like Organizational quality policy,

procedures, policies, guidelines, Historical database, Lessons learnt fromprevious projects, Quality policy as endorsed by senior management.




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Quality Planning Tools

Quality Tools & Techniques Benefit / Cost analysis

less rework, higher productivity, lower cost

meet or exceed customer satisfaction/expectation

payback, ROI

continually comparing quality program

Benchmarking

comparing actual/planned project practices

visiting other organizations

continually comparing quality program

Control Charts:Are used to determine whether or not a process is stable or haspredictable performance. Upper and lower specification limits are based on

requirements of the contract.



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Design of Experiments: It is a statistical method that determines whichvariables have the most influence on the outcome. It also plays a role in theoptimization of products or processes.

Bench Marking: It involves comparing actual or planned project practices tothose of comparable projects to indentify best practices, generate ideas forimprovement, and provide a basis for measuring performance.

Flowcharting: It is a graphical representation of a process showing therelationships among process steps.

Proprietary quality Management methods: Include six sigma, CMMI etc.,

Additional Quality Planning Tools:

Other quality planning tools are also often used to help better define the

situation and help plan effective quality management activities. These includebrainstorming, affinity diagrams, force field analysis, nominal group techniques,matrix diagrams, flowcharts, and prioritization matrices.



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Outputs

Quality Management Plan

The quality management plan describes how the project management teamwill

implement the performing organizations quality policy.

Operational Definition (Metrics)

what something is and how it is measured spec limit

Checklists

tool - usually activity specific

Process Improvement plan

The process improvement plan details the steps for analyzingprocesses that will facilitate the identification of waste and non-valueadded activity, thus increasing customer value

Project Document updates

Inputs to other processes


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Perform Quality Assurance (QA) :

Quality Assurance (QA) is the application of the planned,systematic quality activities to ensure that the project will employall processes needed to meet requirements.

Tools & Techniques

QP Tools & Techniques

Quality Audits

Process Analysis

Perform QualityAssurance


Quality metrics

Work performanceinformation

QC measurements

Requested changes

Project Document updates

Organizational process assets(updates)

Project management plan (updates)


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Perform Quality Assurance: Inputs

Project Management Plan: This includes

Quality Management plan How quality assurance will beperformed in the project and

Process improvement Plan Details the steps for analyzingprocesses to identify activities which enhance their value.

Quality Metrics

Work Performance Information: Its a routine collection process inthe some of the areas like

Technical Performance measures

Project Deliverables status

Schedule Progress and

Cost incurred

Quality Control Measurements



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Quality Assurance Tools

Quality Planning Tools and Techniques

The quality planning tools and techniques also can be used for QA

Quality Audit

Scheduled/ Random

Internal/Third Party Structured review that provides evidence about the Quality

System Performance

Provides Lessons Learned

Quality audits confirm the implementation of approved changerequests, corrective actions, defect repairs, and preventiveactions


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Quality Assurance Tools

Process Analysis

Follows process improvement plan to identify needed improvements

Examines problem / constraints experienced and Non value addedactivities

Includes root cause analysis to determine the causes

Create preventive actions for similar problems.


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Quality Assurance Outputs

Organizational Process Assets(updates): This include theorganizational quality standards.

Change Request: Quality improvement includes taking action toincrease the effectiveness and/or efficiency of the policies,

processes and procedures of the performing organization.

Project Management Plan Updates: This includes

Quality management Plan.

Schedule Management Plan.

Cost Management Plan.



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Perform Quality Control (QC) :

The process of monitoring specific project results to determine ifthey comply with relevant quality standards and identifying waysto eliminate causes of unsatisfactory performance. Also theorganizational unit that is assigned responsibility for qualitycontrol.

Tools & Techniques

Cause & effect diagramControl ChartsFlowcharting

HistogramPareto chartRun chart

Scatter diagramStatistical sampling

InspectionApproved Change requests

review

Perform Quality Control


Quality metrics

Quality checklists

Organizational process assets

Work performanceinformation

Approved change requests

Deliverables

QC Measurements

Validated changes

Change requests

Recommended defect repair

Organizational process assets(updates)

Validated deliverables

Project management plan(Updates)


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Quality Control Inputs

Work Performance Measurements used to produce project activity metrics toevaluate actual progress as compared to planned progress. These metricsinclude

Planned Vs. Actual technical performance

Planned Vs. Actual schedule performance

Planned Vs. Actual cost performance

Approved Change Requests Approved change requests can includemodifications such as revised work methods and revised schedule. The timelycorrect implementation of approved changes needs to be verified.


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Quality Control Terms

Team should know the following differences :

Prevention (keeping errors out of process) and Inspection(keeping error out of hands of the customer)

Attribute sampling (yes or no decision i.e. results conforms or it

does not) and Variable sampling (result is rated on a continuousscale that measures the degree of conformity)

Special causes(unusual events) and Random causes (normalprocess variation)

Tolerances (the result is acceptable if it falls within the range

specified by the tolerance) and Control limits (the process is incontrol if the result falls within the control limits)


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Statistical Quality Control(SQC)

Statistical Quality Control: Method used to measure variability in a product forevaluation and corrective actions.

Statistical sampling involves choosing part of a population of interest forinspection. Appropriate sampling can often reduce the cost of quality control.

Normal Distribution Curve :

+/- 6 sigma encompass 99.99% of area (defect of 2/ billion)

+/- 3 sigma encompass 99.73% of area




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Quality Control Tools

Pareto Diagram

Cause & Effect Diagram

Control Chart

Flow Charting

Histogram Run Chart

Scatter Diagram

Statistical Sampling

Inspection

Defect Repair Review


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Pareto Diagram

Pareto diagram is a histogram, ordered by frequency ofoccurrence that shows how many results were generated by typeor category of identified cause.

Rank ordering is used to guide corrective action.

Pareto diagrams are conceptually related to Paretos law, which

holds that a relatively small number of causes will typicallyproduce a large majority of the problems or defects.

Also called 80-20 rule and vital-few. 80 percent of the problemsare accounted to 20 percent of the causes.

areto agram


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areto agram -Example


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Cause and Effect Diagram The cause and effect diagram is called Fishbone diagram

(because of its appearance) and also called Ishikawa

diagram after the man who popularized its use in Japan. Analyzes the inputs to a process to identify the causes of

errors.

Used for root-cause Analysis.

CauseandEffect Diagram

ProblemCauses Effect

Time Machine Method Material

Major

Defect

Energy Measurement Personnel nvironmen


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Control Chart

Control charts are graphic display of the results, over time of a process. They

are used to determine if the process is in control.

When a process is in control, the process should not be adjusted. The processmay be changed in order to provide improvements.

Quality Control charts display a characteristic of a product / service againstthe Control limits based on 3 Standard deviation in each direction. So in aStandard control chart, distance between the control limit is 6 sigma

Control charts may be used to monitor any type of output variable. Such as

Schedule variances, Volume and frequency of scope changes, errors in projectdocuments or other management results to help determine if the Project

Management Process is in control.


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Control Chart

Following are very important terms that are related to control chart

- Upper Control Limit (UCL)

- Lower Control Limit (LCL)

- Specification Limit

- Rule of Seven

- Assignable Cause

- Out of Control

These terms are well depicted in the control chart example givenin the next slide


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Control Chart - Example

Specification limit

UCL

LCL

Specification limit

Rule of sevenOut of control

Assignable cause

Out of

control

Normal distribution curve


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Control ChartsVisual patterns indicating out-of-control state or a condition that

requires attention:

1. Outliers: a sample point outside the control limits

2. Hugging control limit: a series (run) of points that are close to a control

limit. Requires correction to prevent data points from goingoutside the

control limit.

3. Cycle: A repeating pattern of points.

4. Trend: A series of consecutive points which reflect a steadily

increasing or decreasing pattern.

5. Run: A series of consecutive points on the same side of the average.

Rule of thumb: considered abnormal if 7 consecutive points, 10 of 11,

12 of 14 data points are above or below the process average.


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Sampling

Statistical Sampling: Sampling is the method of determining thevalue of a product or service when it is not practical to examinethe total number of products or services produced.

Attribute Sampling : It is the number of defects of one or more ofthe product attributes (weight, size, function etc.) deemedacceptable before a lot of parts are rejected. Under attributeinspection, Characteristics of the units of product are consideredon a yes or no basis, go or no go, defective or non-defective,within tolerance or out of tolerance.

Variable Sampling : A variable is a characteristic or property,which can be measured, and the measurement expressed in terms

of some continuous scale. For e.g.Time in seconds, minutes, orhours; length in feet, meters; or weight in grams or pounds.Product is evaluated using a numerical, continuous scalemeasurement. Most efficient means of product quality inspection.


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Sample Flowchart

Sample Process Flowchart

Yes ProceedNo

Design Review

Revise

OK?


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Absolutes of Quality

Four Absolutes of Quality

Definition

System

Performance Standard

Measurement

Generalized approach should also compatible with

Proprietary approaches to Quality Management suchas those recommended as Deming, Juran, Crossby

and others. Non proprietary approaches such as TQM, Continuous

Improvement and others


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Summary of Quality Tools

Plan Quality Quality Assurance Quality Control

Cost-benefit analysis QP tools & Techniques Cause & effect diagram

Benchmarking QC tools & Techniques Control charts

Design of Experiments Quality Audits Flowcharting

Cost of Quality Process Analysis Histogram

Pareto chart

Run chart (for Trend

analysis)Scatter diagram

Statistical sampling

Inspection

Defect repair review

Other tools: Brainstorming,

affinity diagram, force field

analysis, Nominal grouptechniques, matrix

diagrams, flowcharts and

prioritization metrics


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Perform Quality Control: Outputs

Organizational Process Assets(updates): This include the

Completed Checklists and Lessons Learned Documentation. Change Requests

Project Management Plan(Updates): Includes QualityManagement Plan and Process Improvement Plan.

Project Document (Updates): Includes the Quality Standards.

Quality Control Measurements: Results of quality controlactivities in the format specified during quality planning.

Validated Changes: Any Changed or repaired items are inspectedand will be either accepted or rejected before notification of thedecision is provided. Rejected Items may require rework.

Validated Deliverables: The results of the execution of qualitycontrol processes are validated deliverables. Validateddeliverables are an input to verify scope for formalizedacceptance.


Q li L d Phil h


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Quality Leaders-Philosophy

Various Quality Leaders-Philosophy:

According to Taguchi,

Quality should be designed into the product, not inspectedinto it.

Quality should be achieved by minimizing the deviation fromtarget.

Cost of Quality should be measured as a function of deviationfrom standard.

DEMINGJURAN

CROSBY

DefinitionConformantospecs

Fitnessfor us ConformancetoRequirements

System Prevention Prevention PreventionPerformanStandard

ZerodefectsMinimizeofof Quality

Zerodefects

Measure Directmeasures

Cost of qualitydata


M Q lit C t


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More Quality Concepts

In addition Quality improvement initiatives undertaken by performingorganization (e.g. TQM, Continuous Improvement and others) can improvethe quality of the Project Management as well as the quality of the projectproduct.

T Q M- Manage the entire organization to excel in all dimensions of(product / Service) quality.

Just In Time (J I T) - Require high levels of quality for

incoming goods and Reduce inventory to zero level.

KAIZEN KAIZEN means continuous improvement KAIZEN guidesorganization to continuously improve their ability to meet expectations ofhigh quality, low cost, and on-time delivery.


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Supplier Quality

Suppliers also affect the Project Quality.

Customers should require Suppliers to have Quality Managementsystem.

Long term contracting provides incentives to Suppliers to implementQMS.


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P D C A Cycle

Plan

Do

Check

Act

Plan

Q&A


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Which of the following is NOT a correct statement:

a) Low quality is always a problem but low grade may not

b) High grade will not always results in high quality

c) Grade is a category assigned to the product or services having samefunctional use but different technical characteristics

d) Low grade will always result in low quality

Q&A

Q&A


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All the following are correct EXCEPT:

a) Precision is consistency that value of repeated measurements

b) Accuracy is correctness that measured value is close to true value

c) Precise measurements are accurate

d) Accurate measurement is not necessarily precise

Q&A

Q&A


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Action taken to bring a defective or nonconforming item into

compliance with requirements called

a). Internal failure

b). Rework

c). Prevention

d). Assurancee). None of the above

Q&A

Q&A


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In acceptance sampling, consumer's risk and producers risks

are

a). Directly correlated

b). Positively correlated

c). Inversely correlated

d). Not correlatede). None of the above

Q&A

Q&A


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In acceptance sampling, consumer's risk and producers risks

are

a). Directly correlated

b). Positively correlated

c). Inversely correlated

d). Not correlatede). None of the above

Q&A

Q&A


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A process goes out of control when

a). there are special causes of variation

b). there are common cause of variation

c). there are random and non-assignable cause of variation

d). SPC does not apply

e). None of the above

Q&A

Useful URLs


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Useful URLs

-General Mathematical Definitions

http://www.animatedsoftware.com/statglos/statglos.htm

-Sampling Technique

http://www.stats.gla.ac.uk/steps/glossary/sampling.html

Information Technology Project Management by Kathy Schwalbe

ISBN 0-7600-1180-x


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Thank You !!!!

Documents

5_Project Quality Management