1. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 PMP Study Group Quality Management

2. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 2 A subset of project management that includes the processes and activities of the performing organization that determine quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken. PMBoK ® Guide, 4 th Edition, p. 189 Project Quality Management Definition

3. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 3 Quality Definition “The degree to which an inherent set of characteristics fulfills requirements.” PMBoK ® Guide, 4 th Edition, Glossary

4. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 4 The Project Quality Management approach is intended to be compatible with that of:  International Organization for Standards (ISO)  Proprietary approaches to quality management such as those recommended by Deming, Juran, Crosby, and others  Non-proprietary approaches such as Total Quality Management (TQM), Six Sigma, Failure Mode and Effect Analysis (FMEA), design reviews, Voice of the Customer (VOC), Cost of Quality (COQ), and continuous improvement PMBoK ® Guide, 4 th Edition, p. 190 Project Quality Management Approach

5. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 5 Total Quality Management (TQM) A system of continuous improvement employing participative management and centered on the needs of customers. Six Sigma Six Sigma is a method or set of techniques, used for business process improvement. It is a quality measurement and improvement program originally developed by Motorola that focuses on the control of a process to the point of ± six sigma (standard deviations) from a centerline or 3.4 defects per million items. Failure Mode and Effect Analysis (FMEA) A systematic way of examining a design for possible ways in which failure can occur. It assumes that no matter how knowledgeable or careful people are, errors will occur in some situations. Design Review A review of the layout or basic technical design of the project’s product before work to create the final product begins. Voice of the Customer (VOC) A planning technique used to provide products, services, and results that truly reflect customer requirements by translating those customer requirements into the appropriate technical requirements for each phase of project product development ( from PMBoK 4 th ed ) Cost of Quality (COQ) A method of determining the total costs related to quality throughout the product life cycle. These costs include prevention and appraisal costs as well as failure costs Continuous Improvement A quality philosophy that assumes further improvements are always possible and that processes should be continuously reevaluated and improvements implemented Terms & Miscellaneous Facts

6. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 6 Customer Satisfaction “Understanding, evaluating, defining, and managing expectations so that customer requirements are met.” PMBoK ® Guide, 4 th Edition, p. 191 Requires: conforming to requirements (producing what you are supposed to produce) ensuring fitness for use (the product/service satisfies the real needs) Management Responsibility “Success requires the participation of all members of the project team, but remains the responsibility of management to provide the resources needed to succeed.” PMBoK ® Guide, 4 th Edition, p. 191 Marginal Analysis Optimal quality is reached at the specific point where incremental gain from improvement equals the incremental cost to secure it. Impact of Poor Quality Poor quality could lead to increased costs, low morale, unsatisfied customers, loss or reputation, rework, increased risk, schedule delays, and decreased productivity. Gold Plating Adding more to the system than specified in the requirements. It can increase operation and maintenance costs and reduce quality. Gold plating indicates project processes are out of control. Gold plating can also be accomplished by adding unnecessary requirements. Terms & Miscellaneous Facts (cont’d)

7. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 7 Quality and Grade are not the same. Quality – Comparison to requirements: “the degree to which a set of inherent characteristics fulfill requirements.” International Organization for Standardization.2005.ISO 9000.Quality Management Systems – Fundamentals and Vocabulary. Geneva: ISO Pres Grade: “a category or rank used to distinguish items that have the same functional use, but do not share the same requirements for quality.” International Organization for Standardization.1994.ISO 8402.Quality Management and Quality Assurance. Geneva: ISO Press (Withdrawn 2000) Quality vs. Grade

8. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 8 Precision vs. Accuracy Precision: “the values of repeated measurements are clustered and have little scatter.” Accuracy: “the measured value is very close to the true value.” PMBoK ® Guide, 4 th Edition, p. 190

9. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 9 Practice Question Project Quality is best defined as: a) Eliminating any and all rework b) The degree to which the project approaches six sigma c) Meeting or exceeding the customer’s expectations d) The degree to which the project meets requirements

10. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 10 Project Quality Management Processes 8.1Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control

11. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 11 Knowledge Area Project Management Process Groups InitiatingPlanningExecuting Monitoring & Controlling Closing 8. Project Quality Management - 8.1 Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control - 8.1 Plan Quality

12. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 12 8.1 Plan Quality Definition: “The process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance.” PMBoK ® Guide, 4 th Edition, p. 192

13. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 13 8.1.1 Plan Quality Inputs 8.1.1.1 Scope Baseline Describes the need, justification, requirements, etc., for the project and is inclusive of the following: Scope Statement: contains the description of services, list of deliverables, acceptance criteria, and important information regarding technical issues that could impact cost estimating WBS: provides the relationship among all the components of the project and deliverables WBS Dictionary: provides detailed statements of work that provide an identification of the deliverables and a description of the work within each WBS component required to produce each deliverable 8.1.1.2 Stakeholder RegisterIdentifies stakeholders with a particular interest in, or impact on, quality 8.1.1.3 Schedule Baseline Documents the accepted schedule performance measures, including start and finish dates

14. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 14 8.1.1.4 Cost Performance Baseline Documents the accepted time phase used to measure cost performance 8.1.1.5 Risk Register Contains information on threats and opportunities that may impact quality requirements 8.1.1.6 Enterprise Environmental Factors Factors in the project’s environment that affect the project. Organizational culture, infrastructure, tools, human resources, personnel policies, marketplace conditions, government agency regulations, rules, standards, laws, and guidelines specific to the application area or industry all may have some influence on the project 8.1.1.7 Organizational Process Assets Organizational quality policies, procedures, guidelines, lessons learned, historical databases, and culture may affect the project 8.1.1 Plan Quality Inputs (cont’d)

15. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 15 8.1.2 Plan Quality Tools and Techniques 8.1.2.1 Cost-Benefit Analysis The primary benefits of meeting quality requirements include: ● less rework ● higher productivity ● lower costs ● increased stakeholder satisfaction The primary cost is the expense associated with project quality management activities 8.1.2.2 Cost of Quality (COQ) Includes all costs incurred over the life of the product including preventive and appraising activities, rework, and failure costs ● Cost of Conformance ● Prevention Costs ● Appraisal Costs ● Cost of Non-conformance ● Internal Failure Costs ● External Failure Costs

16. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 16 8.1.2 Plan Quality Tools and Techniques (cont'd) 8.1.2.3 Control Charts “A graphic display of process data over time and against established control limits, and that has a centerline that assists in detecting a trend of plotted values towards either control limit.” PMBoK ® Guide, Fourth Edition, Glossary Upper Specification Limit 2 standard deviations 1 standard deviation Average/Mean 1 standard deviation 2 standard deviations Upper Control Limit Lower Control Limit 3 standard deviations Lower Specification Limit

17. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 17 8.1.2 Plan Quality Tools and Techniques (cont’d) 8.1.2.4 Benchmarking “Benchmarking involves comparing actual or planned project practices to those of comparable projects to identify best practices, generate ideas for improvement, and provide a basis for measuring performance.” PMBoK ® Guide, 4 th Edition, p. 197 8.1.2.5 Design of Experiments (DOE) “A statistical method for identifying which factors may influence specific variables of a product or process under development or in production.” PMBoK ® Guide, 4 th Edition, p. 197 8.1.2.6 Statistical Sampling While sampling is not done in planning, you need to consider sample sizes and impact of sampling (e.g.: number of tests, expected scrap, etc.) while developing the plan 8.1.2.7 Flowcharting “A graphical representation of a process showing the relationship among process steps…..show activities, decision points, and the order of processing….can help the project team anticipate problems that might occur.” PMBoK ® Guide, 4 th Edition, p. 198

18. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 18 8.1.2 Plan Quality Tools and Techniques (cont’d) 7.Flowcharting PMBoK ® Guide,4 th Edition, p. 199

19. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 19 8.1.2 Plan Quality: Tools and Techniques (cont’d) 8.1.2.8 Proprietary Quality Management Methodologies Includes:  Brainstorming  Six Sigma  Lean Six Sigma  Quality Function Deployment  CMMI PMBoK ® Guide, 4 th Edition, p. 199 8.1.2.9 Additional Quality Planning Tools  Brainstorming  Affinity Diagrams  Force Field Analysis  Nominal Group Techniques  Matrix Diagrams  Prioritization Matrices PMBoK ® Guide, 4 th Edition, p. 199-200

20. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 20 8.1.3.1 Quality Management Plan “The quality management plan describes how the project management team will implement the performing organization’s quality policy.” 8.1.3.2 Quality Metrics “A quality metric is an operational definition that describes, in very specific terms, a project or product attribute and how the quality control process will measure it.” 8.1.3.3 Quality Checklists “A checklist is a structured tool, usually component-specific, used to verify that a set of required steps has been performed.” 8.1.3 Plan Quality Outputs PMBoK ® Guide, 4 th Edition, p. 200-201

21. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 21 8.1.3.4 Process Improvement Plan “The process improvement plan details the steps for analyzing processes to identify activities which enhance their value.” The Process Improvement Plan includes the following:  Process boundaries – describe the purpose, start and end of processes, their inputs and outputs, data required, and the process owner and stakeholders  Process configuration – a graphic depiction of processes, with interfaces defined, used to facilitate analysis.  Process metrics – along with control limits, allows analysis of process efficiency  Targets for improved performance – guides the process improvement activities PMBoK ® Guide, 4 th Edition, p. 201 8.1.3.5 Project Document Updates Organizational quality policies, procedures, guidelines, lessons learned, historical databases, and culture may affect the project 8.1.3 Plan Quality Outputs (cont’d)

22. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 22 Practice Question Which of the following is not a Plan Quality Tool or Technique? a)Cost of Quality (COQ) b)Benchmarking c)Quality Metrics d)Design of Experiments (DOE)

23. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 23 Knowledge Area Project Management Process Groups InitiatingPlanningExecuting Monitoring & Controlling Closing 8. Project Quality Management - 8.1 Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control - 8.2 Perform Quality Assurance

24. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 24 8.2 Perform Quality Assurance Definition: “The process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.” PMBoK ® Guide, 4 th Edition, p. 201 PMBoK ® Guide, 4 th Edition, p. 202

25. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 25 8.2.1.1 Project Management Plan Described in Section 4.2.3.1  Quality management plan – describes how quality assurance will be performed  Process improvement plan – details the steps for analyzing processes to identify activities which enhance their value 8.2.1.2 Quality MetricsDescribed in Section 8.1.3.2 8.2.1.3 Work performance information  Technical performance measures  Project deliverable status  Schedule progress  Costs incurred 8.2.1.4 Quality Control Measurements Described in Section 8.3.3.1 8.2.1 Perform Quality Assurance Inputs

26. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 26 8.2.2.1 Plan Quality and Perform Quality Control Tools and Techniques Described in Sections 8.1.2 and 8.3.2 8.2.2.2 Quality Audits “A quality audit is a structured, independent review to determine whether project activities comply with organizational and project policies, processes, and procedures” 8.2.2.3 Process Analysis “Process analysis follows the steps outlined in the process improvement plan to identify needed improvements” 8.2.2Perform Quality Assurance Tools and Techniques PMBoK ® Guide, 4 th Edition, p. 204

27. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 27 8.2.3 Perform Quality Assurance Outputs 8.2.3.1 Organizational Process Assets Updates Including the quality standards 8.2.3.2 Change Requests  Requests to increase effectiveness and/or efficiency of policies, processes, and procedures of the performing organization  Used as input into the Perform Integrated Change Control process (section 4.5) 8.2.3.3 Project Management Plan Updates Quality, schedule, and cost management plans, in particular 8.2.3.4 Project Document Updates  Quality audits reports  Training plans  Process documentation

28. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 28 Practice Question Quality control measurements are an output of ________ and an input of _________. a) Perform Quality Assurance, Perform Quality Control b) Perform Quality Control, Perform Quality Assurance c) Perform Quality Control, Quality Planning d) Quality Planning, Perform Quality Assurance

29. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 29 Knowledge Area Project Management Process Groups InitiatingPlanningExecuting Monitoring & Controlling Closing 8. Project Quality Management - 8.1 Plan Quality 8.2 Perform Quality Assurance 8.3 Perform Quality Control - 8.3 Perform Quality Control

30. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 30 8.3 Perform Quality Control Definition: “The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.” PMBoK ® Guide, 4 th Edition, p. 206

31. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 31 8.3.1 Perform Quality Control Inputs 8.3.1.1 Project Management Plan Described in Section 4.2.3.1 8.3.1.2 Quality MetricsDescribed in Section 8.1.3.2 8.3.1.3 Quality ChecklistsDescribed in Section 8.1.3.3 8.3.1.4 Work Performance Measurements Evaluate actual progress as compared to planned progress May include:  Planned vs. Actual Scheduled Performance  Planned vs. Actual Technical Performance  Planned vs. Actual Cost Performance

32. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 32 8.3.1 Perform Quality Control Inputs (cont’d) 8.3.1.5 Approved Change Requests Part of the Perform Integration Change Control. Change Control status updates indicate approved and unapproved changes. May include: Defect repair Revised work methods and Revised schedule 8.3.1.6 Deliverables Defined in Integration (4.3.3.1), the deliverables are the items whose quality you are checking during Perform Quality Control 8.3.1.7 Organizational Process Assets May include: Quality Standards and Policies Standard Work Guidelines Issue and Defect reporting procedures and communication policies

33. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 33 8.3.2Perform Quality Control Tools and Techniques 8.3.2.1 Cause and Effect Diagram “Cause and effect diagrams, also called Ishikawa diagrams or fishbone diagrams, illustrate how various factors might be linked to potential problems or effects.” PMBoK® Guide, Fourth Edition, p. 208 PMBoK ® Guide, 4 th Edition, p. 208

34. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 34 8.3.2.2 Control ChartsDescribed in Section 8.1.2.3 8.3.2.3 FlowchartingDescribed in Section 8.1.2.7 8.3.2.4 Histogram A vertical bar chart showing a distribution of variables where each column represents an attribute or characteristic of a problem/situation, and the height of the column represents the relative frequency of the characteristic 8.3.2Perform Quality Control Tools and Techniques (cont’d) PMBoK ® Guide, 4 th Edition, p. 210

35. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 35 8.3.2.5 Pareto Chart “A histogram, ordered by frequency of occurrence, that shows how many results were generated by each identified cause.” PMBoK® Guide, Fourth Edition, p. 210 8.3.2Perform Quality Control Tools and Techniques (cont’d) PMBoK ® Guide, 4 th Edition, p. 211

36. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 36 8.3.2.6 Run Chart A Run Chart shows the history and pattern of variation. A run chart is a line graph that shows data points plotted in the order in which they occur. Primarily used in trend analysis which involves mathematical techniques to forecast future outcomes based on historical results. Most often used to analyze:  Technical performance  Cost and schedule performance 8.3.2.7 Scatter Diagram “A scatter diagram shows the relationship between two variables. This tool allows the quality team to study and identify the possible relationship between changes observed in two variables.” PMBoK ® Guide, 4 th Edition, p. 211 8.3.2Perform Quality Control Tools and Techniques (cont’d)

37. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 37 8.3.2.8 Statistical SamplingDescribed in Section 8.1.2.6 8.3.2.9 Inspection The examination of a work product or defect repair to determine whether it conforms to documented standards. Also called reviews, peer reviews, audits, or walkthroughs. 8.3.2.10 Approved Change Requests Review Verify changes were implemented as approved 8.3.2Perform Quality Control Tools and Techniques (cont’d)

38. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 38 8.3.3 Perform Quality Control Outputs 8.3.3.1 Quality control measurements Represent the results of QC activities that are fed back to QA to reevaluate and analyze standards and processes 8.3.3.2 Validated changesDescribed in Section 8.1.3.2 8.3.3.3 Validated deliverables Confirming the correctness of the deliverables. An input to Verify Scope (5.4.1.4) for formalized acceptance. 8.3.3.4 Organizational process assets updates  Completed checklists (4.1.1.5)  “Lessons Learned” documentation

39. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 39 8.3.3 Perform Quality Control Outputs (cont’d) 8.3.3.5 Change requests Issued if the recommended corrective or preventive actions or a defect repair requires a change to the project management plan 8.3.3.6 Project Management Plan updates In particular:  Quality management plan  Process improvement plan 8.3.3.7 Project documentation updates May include Quality Standards documentation

40. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 40 Preventive Action Corrective Action Defect Repair 8.3Perform Quality Control Terms & Miscellaneous Facts  Keep things from going bad  Things are trending bad  Things went bad

41. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 41 Trend Analysis Trend Analysis is a mathematical technique used to forecast future outcomes based on historical results Probability The likelihood that something will occur, usually expressed as a decimal, fraction or scale from 0 to 1 Mutual Exclusivity Two events are said to be mutually exclusive if they cannot both occur in a single trial Normal Distribution The most common probability density distribution chart. It is in the shape of a bell curve and is used to measure variations 8.3Perform Quality Control Terms & Miscellaneous Facts (cont’d)

42. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 42 Statistical Independence The probability of one event occurring does not affect the probability of another event occurring Standard Deviation (sigma) A measure of a range is its standard deviation. Distance from the mean is taken on both sides +/- 3 sigma = 99.73% +/- 6 sigma = 99.99985% Upper and Lower Control Limits The acceptable range of variation of a process often shown as two dashed lines on a control chart Assigned Cause / Special Cause Variation A data point or rule of seven that requires investigation to determine the cause of the variation 8.3Perform Quality Control Terms & Miscellaneous Facts (cont’d)

43. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 43 Rule of Seven A heuristic that refers to non-random data points grouped together in a series on one side of the mean. Indicates that the process is out of control Mean A line in the middle of the control chart that shows the middle of the range of acceptable variation of the process Specification Limits Represent the customer’s expectations or contractual requirements for performance and quality. To meet specification limits, the control limits must be stricter than the specification limits Out of Control Occurs when a data point falls outside of the upper and lower control limit or rule of seven. Lack of consistency and predictability of the process 8.3Perform Quality Control Terms & Miscellaneous Facts (cont’d)

44. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 44 Project teams should know these differences: Prevention (Keeping errors out of the process) vs.Inspection (Keeping errors out of the hands of the customer) Attribute Sampling (Result conforms or does not) vs.Variable Sampling (Result rated on continuous scale to measure degree of conformity) Special Causes (Unusual events) vs.Random Causes (Normal process variation) Tolerances (Results fall within specific range) vs.Control Limits (Results fall within control limit) 8.3Perform Quality Control Terms & Miscellaneous Facts (cont’d)

45. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 45 1) A Standard: “document that provides, for common and repeated use, rules, guidelines or characteristics for activities or their results, aimed at the achievement of the optimum degree of order in a given context.” PMBoK ® Guide, 4 th Edition, Glossary 2) Regulations: “requirements imposed by a government body” PMBoK ® Guide, 4 th Edition, Glossary 8.3Perform Quality Control Terms & Miscellaneous Facts (cont’d)

46. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 46 Practice Question Which Quality Control Tool or Technique is used to prioritize potential causes of problems? a) Cause & Effect Diagram b) Run Chart c) Pareto Diagram d) Histogram

47. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 47 Proprietary Quality Theories Traditional Thinking: Human beings make mistakes and errors are inevitable. The cost to secure zero defects would be significantly greater than the value of achieving "perfection.“ Joseph Juran: A "breakthrough" is the accomplishment of any improvement that takes the organization to unprecedented levels of performance. Defined Quality as “fitness of use”. Phillip Cosby: Popularized the concept of the cost of poor quality, zero defects, advocated prevention over inspection and said “Quality is free”. W. Edwards Deming: Advocated “Plan-Do-Check-Act” cycle.

48. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 48 Proprietary Quality Theories (cont’d) Taguchi Method: Uses statistical techniques to compute a "loss function" to determine the cost of producing products that fail to achieve target value. Used to estimate the loss associated with controlling or failing to control process variability. Based on principle that by carefully selecting design parameters to produce robust design, an organization can produce products that are more forgiving and tolerant. Helps determine the value or break-even point of improving a process to reduce variability. Constancy of Purpose: Should be provided by Top Management and infused throughout the organization. Requires a shared belief among organization members. Quality Assurance and Control are performed by everyone.

49. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 49 Study Hints Study Chapter 8 in the PMBoK Study Chapter 8 in Rita’s Book Take practice tests until you can consistently score 80+ Read additional material on relevant subjects Take the exam relatively soon after the exam prep classes

50. Project Quality Management ©2010 Long Island Chapter of the Project Management Institute ALL RIGHTS RESERVED PMP Prep Course – PMBOK 4th Edition – Version 2.0 Good Luck!!