© 2004, David Gadish, Ph.D.1 Project Management CIS 486 Fall 2005 Week 5 Lecture Dr. David Gadish.

4 Project Quality Management Chapter 8

© 2004, David Gadish, Ph.D.5 Learning Objectives  Understand the importance of project quality management for IT products and services  Define project quality management and understand how quality relates to various aspects of IT projects  Describe quality planning and its relationship to project scope management

© 2004, David Gadish, Ph.D.6 Learning Objectives  Discuss the importance of quality assurance  List the three outputs of the quality control process  Understand the tools and techniques for quality control, such as Pareto analysis, statistical sampling, Six Sigma, quality control charts, and testing  Describe important concepts related to Six Sigma and how it helps organizations improve quality and reduce costs

© 2004, David Gadish, Ph.D.7 Learning Objectives  Summarize the contributions of noteworthy quality experts to modern quality management  Understand how the Malcolm Baldrige Award and ISO 9000 standard promote quality in project management  Describe how leadership, cost, organizational influences, and maturity models relate to improving quality in information technology projects  Discuss how software can assist in project quality management

© 2004, David Gadish, Ph.D.8 Quality of Information Technology Projects  People seem to accept systems being down occasionally or needing to reboot their PCs  There are many examples in the news about quality problems related to IT  But quality is very important in many IT projects

© 2004, David Gadish, Ph.D.9 What Is Quality?  The International Organization for Standardization (ISO) defines quality as the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs  Other experts define quality based on –conformance to requirements: meeting written specifications –fitness for use: ensuring a product can be used as it was intended

© 2004, David Gadish, Ph.D.10 Project Quality Management Processes  Quality planning: identifying which quality standards are relevant to the project and how to satisfy them  Quality assurance: evaluating overall project performance to ensure the project will satisfy the relevant quality standards  Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality

© 2004, David Gadish, Ph.D.11 Quality Planning  It is important to design in quality and communicate important factors that directly contribute to meeting the customer’s requirements  Design of experiments helps identify which variables have the most influence on the overall outcome of a process  Many scope aspects of IT projects affect quality like functionality, features, system outputs, performance, reliability, and maintainability

© 2004, David Gadish, Ph.D.12 Quality Assurance  Quality assurance includes all the activities related to satisfying the relevant quality standards for a project  Another goal of quality assurance is continuous quality improvement  Benchmarking can be used to generate ideas for quality improvements  Quality audits help identify lessons learned that can improve performance on current or future projects

© 2004, David Gadish, Ph.D.15 Quality Control  The main outputs of quality control are –acceptance decisions –rework –process adjustments  Some tools and techniques include –Pareto analysis –statistical sampling –Six Sigma –quality control charts

© 2004, David Gadish, Ph.D.16 Pareto Analysis  Pareto analysis involves identifying the vital few contributors that account for the most quality problems in a system  Also called the 80-20 rule, meaning that 80% of problems are often due to 20% of the causes  Pareto diagrams are histograms that help identify and prioritize problem areas

© 2004, David Gadish, Ph.D.18 Statistical Sampling and Standard Deviation  Statistical sampling involves choosing part of a population of interest for inspection  The size of a sample depends on how representative you want the sample to be  Sample size formula: Sample size =.25 X (certainty Factor/acceptable error) 2

© 2004, David Gadish, Ph.D.19 Commonly Used Certainty Factors 95% certainty: Sample size = 0.25 X (1.960/.05) 2 = 384 90% certainty: Sample size = 0.25 X (1.645/.10) 2 = 68 80% certainty: Sample size = 0.25 X (1.281/.20) 2 = 10

© 2004, David Gadish, Ph.D.20 Six Sigma Defined  Six Sigma is “a comprehensive and flexible system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes.”

© 2004, David Gadish, Ph.D.21 Basic Information on Six Sigma  The target for perfection is the achievement of no more than 3.4 defects per million opportunities  The principles can apply to a wide variety of processes  Six Sigma projects normally follow a five- phase improvement process called DMAIC

© 2004, David Gadish, Ph.D.22 DMAIC  Define: Define the problem/opportunity, process, and customer requirements  Measure: Define measures, collect, compile, and display data  Analyze: Scrutinize process details to find improvement opportunities  Improve: Generate solutions and ideas for improving the problem  Control: Track and verify the stability of the improvements and the predictability of the solution

© 2004, David Gadish, Ph.D.23 How is Six Sigma Quality Control Unique?  It requires an organization-wide commitment  Six Sigma organizations have the ability and willingness to adopt contrary objectives, like reducing errors and getting things done faster

© 2004, David Gadish, Ph.D.24 How is Six Sigma Quality Control Unique?  It is an operating philosophy that is customer-focused and strives to drive out waste, raise levels of quality, and improve financial performance at breakthrough levels

© 2004, David Gadish, Ph.D.25 Examples of Six Sigma Organizations  Motorola, Inc. pioneered the adoption of Six Sigma in the 1980s and saved about $14 billion  Allied Signal/Honeywell saved more than $600 million a year by reducing the costs of reworking defects and improving aircraft engine design processes  General Electric uses Six Sigma to focus on achieving customer satisfaction

© 2004, David Gadish, Ph.D.26 Six Sigma and Project Management  Improvement takes place project by project, and in no other way.  It’s important to select projects carefully and apply higher quality where it makes sense  Six Sigma projects must focus on a quality problem or gap between current and desired performance and not have a clearly understood problem or a predetermined solution.

© 2004, David Gadish, Ph.D.27 Six Sigma and Project Management  After selecting Six Sigma projects, the project management concepts, tools, and techniques described in this course come into play, such as creating business cases, project charters, schedules, budgets, etc.

© 2004, David Gadish, Ph.D.28 Six Sigma and Statistics  The term sigma means standard deviation  Standard deviation measures how much variation exists in a distribution of data  Standard deviation is a key factor in determining the acceptable number of defective units found in a population  Six Sigma projects strive for no more than 3.4 defects per million opportunities, yet this number is confusing to many statisticians

© 2004, David Gadish, Ph.D.29 Standard Deviation  A small standard deviation means that data cluster closely around the middle of a distribution and there is little variability among the data  A normal distribution is a bell-shaped curve that is symmetrical about the mean or average value of a population

© 2004, David Gadish, Ph.D.32 Six Sigma Conversion Table The Six Sigma convention for determining defects is based on the above conversion table. It accounts for a 1.5 sigma shift to account for time and measures defects per million opportunities, not defects per unit.

© 2004, David Gadish, Ph.D.33 Quality Control Charts and the Seven Run Rule  A control chart is a graphic display of data that illustrates the results of a process over time.  It helps prevent defects and allows to determine whether a process is in control or out of control.

© 2004, David Gadish, Ph.D.34 Quality Control Charts and the Seven Run Rule  The seven run rule states that if seven data points in a row are all below the mean, above, the mean, or increasing or decreasing, then the process needs to be examined for non-random problems.

© 2004, David Gadish, Ph.D.36 Testing  Many IT professionals think of testing as a stage that comes near the end of IT product development  Testing should be done during almost every phase of the IT product development life cycle

© 2004, David Gadish, Ph.D.38 Types of Tests  A unit test is done to test each individual component (often a program) to ensure it is as defect free as possible  Integration testing occurs between unit and system testing to test functionally grouped components

© 2004, David Gadish, Ph.D.39 Types of Tests  System testing tests the entire system as one entity  User acceptance testing is an independent test performed by the end user prior to accepting the delivered system

© 2004, David Gadish, Ph.D.42 Malcolm Baldrige Award and ISO 9000  The Malcolm Baldrige Quality Award was started in 1987 to recognize companies with world-class quality  ISO 9000 provides minimum requirements for an organization to meet their quality certification standards

© 2004, David Gadish, Ph.D.43 Improving Information Technology Project Quality  Several suggestions for improving quality for IT projects include –Leadership that promotes quality –Understanding the cost of quality –Focusing on organizational influences and workplace factors that affect quality –Following maturity models to improve quality

© 2004, David Gadish, Ph.D.44 Leadership  It is most important that top management be quality-minded.  In the absence of sincere manifestation of interest at the top, little will happen below.  A large percentage of quality problems are associated with management, not technical issues

© 2004, David Gadish, Ph.D.45 The Cost of Quality  The cost of quality is –the cost of conformance or delivering products that meet requirements and fitness for use –the cost of nonconformance or taking responsibility for failures or not meeting quality expectations

© 2004, David Gadish, Ph.D.47 Five Cost Categories Related to Quality  Prevention cost: the cost of planning and executing a project so it is error-free or within an acceptable error range  Appraisal cost: the cost of evaluating processes and their outputs to ensure quality  Internal failure cost: cost incurred to correct an identified defect before the customer receives the product

© 2004, David Gadish, Ph.D.48 Five Cost Categories Related to Quality  External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer  Measurement and test equipment costs: capital cost of equipment used to perform prevention and appraisal activities

© 2004, David Gadish, Ph.D.49 Organization Influences, Workplace Factors, and Quality  A study by DeMarco and Lister showed that organizational issues had a much greater influence on programmer productivity than the technical environment or programming languages  Programmer productivity varied by a factor of one to ten across organizations, but only by 21% within the same organization

© 2004, David Gadish, Ph.D.50 Organization Influences, Workplace Factors, and Quality  The study found no correlation between productivity and programming language, years of experience, or salary  A dedicated workspace and a quiet work environment were key factors to improving programmer productivity

© 2004, David Gadish, Ph.D.51 Maturity Models  Maturity models are frameworks for helping organization improve their processes and systems –Software Quality Function Deployment model focuses on defining user requirements and planning software projects

© 2004, David Gadish, Ph.D.52 Maturity Models –The Software Engineering Institute’s Capability Maturity Model provides a generic path to process improvement for software development –Several groups are working on project management maturity models, such as PMI’s Organizational Project Management Maturity Model (OPM3)

© 2004, David Gadish, Ph.D.53 Project Management Maturity Model 1. Ad-Hoc: The project management process is described as disorganized, and occasionally even chaotic. The organization has not defined systems and processes, and project success depends on individual effort. There are chronic cost and schedule problems.

© 2004, David Gadish, Ph.D.54 Project Management Maturity Model 2. Abbreviated: There are some project management processes and systems in place to track cost, schedule, and scope. Project success is largely unpredictable and cost and schedule problems are common.

© 2004, David Gadish, Ph.D.55 Project Management Maturity Model 3. Organized: There are standardized, documented project management processes and systems that are integrated into the rest of the organization. Project success is more predictable, and cost and schedule performance is improved.

© 2004, David Gadish, Ph.D.56 Project Management Maturity Model 4. Managed: Management collects and uses detailed measures of the effectiveness of project management. Project success is more uniform, and cost and schedule performance conforms to plan.

© 2004, David Gadish, Ph.D.57 Project Management Maturity Model 5. Adaptive: Feedback from the project management process and from piloting innovative ideas and technologies enables continuous improvement. Project success is the norm, and cost and schedule performance is continuously improving.

© 2004, David Gadish, Ph.D.58 Using Software to Assist in Project Quality Management  Spreadsheet and charting software helps create Pareto diagrams, Fishbone diagrams, etc.  Statistical software packages help perform statistical analysis.

© 2004, David Gadish, Ph.D.59 Using Software to Assist in Project Quality Management  Specialized software products help manage Six Sigma projects or create quality control charts  Project management software helps create Gantt charts and other tools to help plan and track work related to quality management

60 Project Human Resource Management Chapter 9

© 2004, David Gadish, Ph.D.61 Learning Objectives  Explain the importance of good HR management on projects, especially on IT projects  Define project HR management and understand its processes  Summarize key concepts for managing people  Discuss organizational planning and be able to create a project organizational chart, responsibility assignment matrix, and resource histogram

© 2004, David Gadish, Ph.D.62 Learning Objectives  Understand important issues involved in project staff acquisition and explain the concepts of resource assignments, resource loading, and resource leveling  Assist in team development with training, team-building activities, and reward systems  Describe how project management software can assist in project human resource management

© 2004, David Gadish, Ph.D.63 The Importance of Human Resource Management  People determine the success and failure of organizations and projects  Recent statistics about IT workforce: –The total number of U.S. IT workers was more than 10.1 million in December 2002, up from 9.9 million in January 2002 –IT managers predict they will need to hire an additional 1.2 million workers in the near future –Hiring by non-IT companies outpaces hiring by IT companies by a ratio of 12:1

© 2004, David Gadish, Ph.D.64 Digital Planet Reports  The global high-tech industry generated more than $2.1 trillion in 1999, $2.3 trillion in 2000, and $2.4 trillion in 2001  The Internet and e-commerce were notable bright spots in the global economy  Global e-commerce went up 79 percent from 2000 to 2001  China, Poland, and other developing countries are playing an increasing role in the global IT market

© 2004, David Gadish, Ph.D.65 Long Hours and Stereotypes of IT Workers Hurt Recruiting  Many people are struggling with how to increase and diversify the IT labor pool. Noted problems include: –The fact that many IT professionals work long hours and must constantly stay abreast of changes in the field

© 2004, David Gadish, Ph.D.66 Long Hours and Stereotypes of IT Workers Hurt Recruiting –Undesirable stereotypes that keep certain people away from the career field, like women –The need to improve benefits, redefine work hours and incentives, and provide better HR management

© 2004, David Gadish, Ph.D.67 What is Project Human Resource Management?  Project human resource management includes the processes required to make the most effective use of the people involved with a project.  Processes include: –Organizational planning –Staff acquisition –Team development

© 2004, David Gadish, Ph.D.68 Keys to Managing People  Psychologists and management theorists have devoted much research and thought to the field of managing people at work  Important areas related to project management include –motivation –influence and power –effectiveness

© 2004, David Gadish, Ph.D.69 Motivation  Abraham Maslow developed a hierarchy of needs to illustrate his theory that people’s behaviors are guided by a sequence of needs  Maslow argued that humans possess unique qualities that enable them to make independent choices, thus giving them control of their destiny

© 2004, David Gadish, Ph.D.71 Herzberg’s Motivational and Hygiene Factors  Frederick Herzberg wrote several famous books and articles about worker motivation. He distinguished between –motivational factors: achievement, recognition, the work itself, responsibility, advancement, and growth, which produce job satisfaction –hygiene factors: cause dissatisfaction if not present, but do not motivate workers to do more. Examples include larger salaries, more supervision, and a more attractive work environment

© 2004, David Gadish, Ph.D.72 McClelland’s Acquired-Needs Theory  Specific needs are acquired or learned over time and shaped by life experiences, including: –Achievement (nAch): Achievers like challenging projects with achievable goals and lots of feedback –Affiliation (nAff): People with high nAff desire harmonious relationships and need to feel accepted by others, so managers should try to create a cooperative work environment for them –Power: (nPow): People with a need for power desire either personal power (not good) or institutional power (good for the organization). Provide institutional power seekers with management opportunities

© 2004, David Gadish, Ph.D.73 McGregor’s Theory X and Theory Y  Douglas McGregor popularized the human relations approach to management in the 1960s  Theory X: assumes workers dislike and avoid work, so managers must use coercion, threats, and various control schemes to get workers to meet objectives  Theory Y: assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs  Theory Z: introduced in 1981 by William Ouchi and is based on the Japanese approach to motivating workers, emphasizing trust, quality, collective decision making, and cultural values

© 2004, David Gadish, Ph.D.74 Thamhain and Wilemon’s Ways to Have Influence on Projects 1. Authority: the legitimate hierarchical right to issue orders 2. Assignment: the project manager's perceived ability to influence a worker's later work assignments 3. Budget: the project manager's perceived ability to authorize others' use of discretionary funds 4. Promotion: the ability to improve a worker's position 5. Money: the ability to increase a worker's pay and benefits

© 2004, David Gadish, Ph.D.75 Thamhain and Wilemon’s Ways to Have Influence on Projects 6. Penalty: the project manager's ability to cause punishment 7. Work challenge: the ability to assign work that capitalizes on a worker's enjoyment of doing a particular task 8. Expertise: the project manager's perceived special knowledge that others deem important 9. Friendship: the ability to establish friendly personal relationships between the project manager and others

© 2004, David Gadish, Ph.D.76 Ways to Influence that Help and Hurt Projects  Projects are more likely to succeed when project managers influence with –expertise –work challenge  Projects are more likely to fail when project managers rely too heavily on –authority –money –penalty

© 2004, David Gadish, Ph.D.77 Power  Power is the potential ability to influence behavior to get people to do things they would not otherwise do  Types of power include –Coercive –Legitimate –Expert –Reward –Referent

© 2004, David Gadish, Ph.D.78 Improving Effectiveness - Covey’s 7 Habits  Project managers can apply Covey’s 7 habits to improve effectiveness on projects –Be proactive –Begin with the end in mind –Put first things first –Think win/win –Seek first to understand, then to be understood –Synergize –Sharpen the saw

© 2004, David Gadish, Ph.D.79 Empathic Listening and Rapport  Good project managers are empathic listeners; they listen with the intent to understand  Before you can communicate with others, you have to have rapport  Mirroring is a technique to help establish rapport  IT professionals often need to develop empathic listening and other people skills to improve relationships with users and other stakeholders

© 2004, David Gadish, Ph.D.80 Improving Relationships Between Users and Developers  Some organizations require business people, not IT people, to take the lead in determining and justifying investments in new computer systems  CIOs push their staff to recognize that the needs of the business must drive all technology decisions  Some companies reshape their IT units to look and perform like consulting firms

© 2004, David Gadish, Ph.D.81 Organizational Planning  Organizational planning involves identifying, documenting, and assigning project roles, responsibilities, and reporting relationships  Outputs and processes include –project organizational charts –work definition and assignment process –responsibility assignment matrixes –resource histograms

© 2004, David Gadish, Ph.D.88 Staff Acquisition  Staffing plans and good hiring procedures are important in staff acquisition, as are incentives for recruiting and retention  Some companies give their employees one dollar for every hour a new person they helped hire works

© 2004, David Gadish, Ph.D.89 Staff Acquisition  Some organizations allow people to work from home as an incentive  Research shows that people leave their jobs because they: –don’t make a difference –don’t get proper recognition –aren’t learning anything new –don’t like their coworkers, and want to earn more money

© 2004, David Gadish, Ph.D.90 Resource Loading and Leveling  Resource loading refers to the amount of individual resources an existing project schedule requires during specific time periods  Resource histograms show resource loading  Overallocation means more resources than are available are assigned to perform work at a given time

© 2004, David Gadish, Ph.D.92 Resource Leveling  Resource leveling is a technique for resolving resource conflicts by delaying tasks  The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce overallocation

© 2004, David Gadish, Ph.D.94 Team Development  It takes teamwork to successfully complete most projects  Training can help people understand themselves, each other, and how to work better in teams  Team building activities include –physical challenges –psychological preference indicator tools

© 2004, David Gadish, Ph.D.95 Meyers-Briggs Type Indicator (MBTI)  MBTI is a popular tool for determining personality preferences and helping teammates understand each other  Four dimensions include: –Extrovert/Introvert (E/I) –Sensation/Intuition (S/N) –Thinking/Feeling (T/F) –Judgment/Perception (J/P)  IT people vary most from the general population in not being extroverted or sensing

© 2004, David Gadish, Ph.D.96 Social Styles Profile  People are perceived as behaving primarily in one of four zones, based on their assertiveness and responsiveness: –Drivers –Expressives –Analyticals –Amiables  People on opposite corners (drivers and amiables, analyticals and expressives) may have difficulties getting along

© 2004, David Gadish, Ph.D.98 Reward and Recognition Systems  Team-based reward and recognition systems can promote teamwork  Focus on rewarding teams for achieving specific goals  Allow time for team members to mentor and help each other to meet project goals and develop human resources

© 2004, David Gadish, Ph.D.99 General Advice on Teams  Focus on meeting project objectives and producing positive results  Fix the problem instead of blaming people  Establish regular, effective meetings  Nurture team members and encourage them to help each other  Acknowledge individual and group accomplishments

© 2004, David Gadish, Ph.D.100 Using Software to Assist in Human Resource Management  Software can help in producing RAMs and resource histograms  Project management software includes several features related to human resource management such as –viewing resource usage information –identifying under and overallocated resources –leveling resources

© 2004, David Gadish, Ph.D.103 Project Resource Management Involves Much More Than Using Software  Project managers must –Treat people with consideration and respect –Understand what motivates them –Communicate carefully with them  Focus on your goal of enabling project team members to deliver their best work

© 2004, David Gadish, Ph.D.1 Project Management CIS 486 Fall 2005 Week 5 Lecture Dr. David Gadish.

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© 2004, David Gadish, Ph.D.1 Project Management CIS 486 Fall 2005 Week 5 Lecture Dr. David Gadish.

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