Leveraging on Quality Management N Dhlamini 14 April 2012

7/31/2019 Leveraging on Quality Management N Dhlamini 14 April 2012

1/20


2/20

Layout of PresentationLayout of Presentation

IntroductionIntroduction What is leveraging on quality projects forWhat is leveraging on quality projects forcompetitive advantage (LQPCA) all about?competitive advantage (LQPCA) all about?

Development of LQPCA: before 2000 & 2000 to nowDevelopment of LQPCA: before 2000 & 2000 to now

Global factors driving the LQPCA process in organizationsGlobal factors driving the LQPCA process in organizations

What is the current situation in Zimbabwe regarding LQPCA?What is the current situation in Zimbabwe regarding LQPCA? --awareness and use; challenges & opportunitiesawareness and use; challenges & opportunities

Critical factors to drive an effective LQPCA in ZimbabweCritical factors to drive an effective LQPCA in Zimbabwe

Where to from here/The future of LQPCA?Where to from here/The future of LQPCA?


3/20

What is leveraging on quality projects for competitiveWhat is leveraging on quality projects for competitiveadvantage (LQPCA) all about?advantage (LQPCA) all about?

Understanding customer needsUnderstanding customer needs analysinganalysing past, evaluating presentpast, evaluating present& determining future needs through implementation of best project& determining future needs through implementation of best projectmanagement practices.management practices.

Optimization of the quality pyramidOptimization of the quality pyramid quality; cost and timequality; cost and time

QualityQuality

Cost TimeCost Time

Look critically at our organizationLook critically at our organization structure; culture; availablestructure; culture; availableresources; vision .resources; vision .


4/20

..But, what does project qualitymanagement (PQM) involve?

PQM is the process of creating and following policies and procedures toensure that a project meets the defined needs of relevant stakeholders.

PQM is underpinned by two major fields namely:

Quality Management (QM)

ro ect anagement


5/20

Critical developments in Quality ManagementCritical developments in Quality Management(QM)(QM)

QM dates back before the industrial revolutionQM dates back before the industrial revolution skilled craftsmen sought toskilled craftsmen sought tounderstand customers needs ( took pride in holistic workmanship before selling).understand customers needs ( took pride in holistic workmanship before selling).

After the industrial RevolutionAfter the industrial Revolution focus was on production and no relationship betweenfocus was on production and no relationship betweenthe worker and customer (no need to understand customer needs).the worker and customer (no need to understand customer needs).

To improve and maintain quality standards for customers new theories and statisticalTo improve and maintain quality standards for customers new theories and statisticalmethods for evaluation were developedmethods for evaluation were developed (Walter Shewhart; Bell Tel Lab, USA(Walter Shewhart; Bell Tel Lab, USA

ss

Furthermore, Deming and Juran introduced statistical quality control to the JapaneseFurthermore, Deming and Juran introduced statistical quality control to the Japaneseas part of the industrial base rebuilding program after ww2.as part of the industrial base rebuilding program after ww2.

1950s- 70s, the Japanese improved the quality of their products at an unprecedentedrate while the Western quality standards lagged behind.

1951- the Deming award was introduced to recognize company-wide quality control(CWQC) achievements by the Union of Japanese Scientists and Engineers (JUSE).


6/20

Critical developments in QualityCritical developments in QualityManagement (QM) [cont.]Management (QM) [cont.]

From the 1970s to now, continued growth in market share in automobile, electronicand other high technological industrial products and services by the Japanese (due toapplication of quality mgt processes) is still evident.

1980s , in response to quality based competitive threat from Japan, many USorganizations engaged in extensive quality improvement programmes.

This resulted in other quality based awards being introduced throughout the world --Malcom Baldrige National Quality Award, 1987 (USA); the International Organization

European countries and those wishing to do business with those countries.

For many years, the ISO family of standards have been adopted in US by theAmerican National Standards Institute (ANSI) with the endorsement and cooperationof the American Society for Quality (ASQ).

Since 1991, the European Commission in partnership with the European Commissionand the European Organization for Quality, announced the European Quality Awardto signal quality in global competition and regional productivity.

Today we have seen more emphasis being put on bottom line focused Six Sigmaquality a level representing no more than 3.4 defects per million opportunities

(Motorola, 1986)


7/20

Critical developments in ProjectCritical developments in ProjectManagement (PM)Management (PM)

As quality management was developing, many events led to the need forbetter PM.

Some of the projects of note that still exist today include the Egyptianpyramids, Chinese Garden, Great Zimbabwe and Khami ruins.

These projects and many others have necessitated a need for a systematicfield of study that emerged in the middle of the 20th century in the US.

After WW2, companies shifted focus for production from war-based tocommercial.

Projects in dynamic environments in the defense, aerospace, construction,high technology engineering industries demanded formal project mgt skills

at many levels (1950s to 60s).

Prior to this period, project management was done on an adhoc basis.

1969, the PMI was formed to act as a forum for discussion and exchange of

PM experiences in different industries.


8/20

Critical developments in Project Management (PM) [cont.]Critical developments in Project Management (PM) [cont.]

The need to address cost, schedule, scope, and quality concernssimultaneously forced companies and gvt organizations to developmore systematic and standard approaches to project mgt.

standards for mgt of projects as its responsibility, establishing aGuide to PMBOK (PMBOK Guide) in 1987.

Project Quality Mgt has been recognized as a distinct, separate,core knowledge area.

Individuals who master the PMBOK Guide and pass the certificationexams become Certified Project Mgt Professionals (PMP).


9/20

Is there a cost of maintaining Quality Projects?

Cost of Quality Projects:

It is the total amount of money a company spends to prevent poor quality onprojects.

Poor quality is waste, errors or failures to meet customer needs and systemrequirements.

Cost of quality projects can be broken into 3 categories:

Prevention costs these are planned costs to ensure errors are notmade during the production process (quality planning costs,information systems costs, quality admin, field testing etc).

Appraisal costs include cost of verifying, checking or evaluating aproduct or service during the delivery process.

Failure costs these are costs due to the product or service not

meeting the requirements and have to be fixed or repaired or theservice has to be repeated.


10/20

Global factors driving the LQPCA process in organizationsGlobal factors driving the LQPCA process in organizations

Factors such as;

global competitiveness;

dynamic environmental changes; increased task complexity; and

internal productivity improvement, have driven the parallel and separateevolution of quality mgt and project mgt.

Quality processes can be used to improve project performance.


11/20

Well known success stories/cases of LQPCAWell known success stories/cases of LQPCA

Overseas - Apple, Samsung, Boeing, Yahoo, google, Microsoft, Facebook.

Africa SABMiller, MTN (Africa, Nigeria), VODACOM (SA), Econet.

Zimbabwe Econet (3g,), Dairibord (SAP), Zimplats, Murowa Diamonds,

.


12/20

What is the current situation in Zimbabwe regardingWhat is the current situation in Zimbabwe regardingLQPCA?LQPCA?---- challenges & opportunitieschallenges & opportunities

Superior quality and project mgt optimize the performance excellence oforganizations, but their combined leverage is often underutilized; why?

Possible reasons/challenges;

, , ,

Resources financial, human, machinery

Corporate governance, corruption

Opportunities available vast mineral resources to finance quality projects; theneed to be aligned to the global village and best practices.


13/20

Critical factors to drive an effective LQPCA in ZimbabweCritical factors to drive an effective LQPCA in Zimbabwe

The best way to understand the critical factors of managing quality projects is

to consider it based on 4 Project Quality Pillars.

1st Project Quality Pillar: Customer Satisfaction

nd

3rd Project Quality Pillar: Fact- based management

4th Project Quality Pillar: Empowered performance


14/20

1st Project Quality Pillar: Customer Satisfaction

Strategic priority accorded customer satisfaction, achieved by customer -

focused work systems supported by committed leadership.

Balance stakeholder interest those directly and indirectly affected by theproject outcome (EMA, Greenpeace, Consumer Council, Employees,etc).


15/20

2nd Project Quality Pillar: Process Improvement

Continual (includes both continuous and discontinuous) improvement ofwork processes to efficiently and effectively achieve the strategic goal ofcustomer satisfaction.

Ongoing process improvement results in 3 types of quality improvementnamely:

ncremen a cos re uc on- mprovemen approac a cons an y

and gradually cut costs and involves every team member in order tomaintain the existing project quality system more efficiently.

Competitive parity improvement approach to match the best inclass of external competitors commercial airlines, ABB, Siemens,

Breakthrough dominance involves quantum leaps to out distancethe competition and revolutionarily restructure and re-engineer newprocesses e.g technological industry 3G revolution, internetservices, mobile hand sets, ipads etc


16/20

3rd Project Quality Pillar: Fact- based management

Focuses on the importance of managing by facts rather than managing bypower, hunches or groupthink.

To manage by facts involves:

Using quality processes to identify and capture data and trends that

Structures itself to be responsive to diverse stakeholders that voice thetruth e.g nuclear energy disasters.


17/20

4th Project Quality Pillar: Empowered performance

This entails the empowered daily work performance of continualimprovement in personal tasks aligned with the system and within anemployees scope of responsibility.

Quality Project organizations are those that are described in terms of thenorms, values, and reward procedures that emphasize the holistic,competent behavior of individuals oriented toward cooperation with fellow

.

Quality Projects require respect for all people in the project team andorganization, regardless of role, since each person is being continuallyempowered to enhance the effectiveness of the organization.


18/20

Where to from here?Where to from here?

The future of LQPCA in Zimbabwes and role of Project Managers liesThe future of LQPCA in Zimbabwes and role of Project Managers liesin;in;

Building on quality not inspecting on quality

Application of best known QM process and ISO Certification

Eliminating the cost of poor Quality

Effective leadership

Training


19/20

Where to from here? [Cont]Where to from here? [Cont]

Understanding key stakeholder requirements

Designing a quality management process

Plan quality Perform quality assurance

Doing it right the first time, quality way of life QualityProjects will lead to competitive advantage.


20/20

Leveraging on Quality Projects for

competitive Advantage

THANK YOU

Presented by Nhamo Dhlamini (PMP)

PMIZ

Documents

Leveraging on Quality Management N Dhlamini 14 April 2012