Project Quality Management Sections of this presentation were adapted from A Guide to the Project Management Body of Knowledge 3rd Edition, Project Management Institute Inc., © 2004

Project Quality Management “All the 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”

Why Quality Management? Quality means conformance to specifications and fitness for use – i.e. just what you need and not more Projects or products with unnecessary features can be too expensive to meet the business need Prevention is much cheaper than inspection, build quality in early to minimize costs/maximize quality

How Do We Manage Quality? Three processes Quality Planning Setting standards and processes Perform Quality Assurance Use lessons to improve the quality of the upcoming parts/processes Perform Quality Control Measure the output to reject nonconforming items Perform Quality Assurance Perform Quality Control Quality Planning

Quality Planning Perform Quality Assurance Perform Quality Control Inputs Outputs Tools & Techniques Quality Management Plan Enterprise Environmental Factors Cost-benefit analysis Benchmarking Design of experiments Cost of quality (COQ) Additional quality planning tools Quality Metrics Organizational Process Assets Quality Checklists Project Scope Statement Process Improvement Plan Project Management Plan Quality Baseline Project Management Plan Updates Perform Quality Assurance Perform Quality Control Quality Planning

Deming’s Costs of Quality Quality Planning Cost of Quality – Evaluating the cost of conformance with the cost of nonconformance to reach a balance. Includes; Prevention Costs Appraisal Costs Failure Costs Deming’s Costs of Quality Cost of Conformance Cost of Non Conformance Quality training Rework Studies Scrap Surveys Inventory Costs Warranty Costs 85% of the costs of quality are the direct responsibility of management - Deming

Quality Planning Terms Gold Plating – Giving the customer extras that do not add value to the project Marginal Analysis – The point where the incremental revenue from an improvement equals the cost to implement it Kaizen – Continuous improvement process to reduce costs and promote consistency ISO 9000 – International standard to ensure that companies have quality procedures and that they follow them

Perform Quality Assurance Tools & Techniques Quality Management Plan Quality planning tools and techniques Quality audits Process analysis Quality control tools and techniques Quality Metrics Outputs Process Improvement Plan Requested Changes Work Performance Information Inputs Recommended Corrective Actions Approved Change Requests Organizational Process Assets Updates Quality Control Measurements Implemented Change Requests Project Management Plan Updates Implemented Corrective Actions Implemented Defect Repair Implemented Preventive Actions Perform Quality Assurance Perform Quality Control Quality Planning

Statistics Terms Review Mutually Exclusive – Two events that cannot both occur in a single trial Statistical Independence – Probability of one event occurring does not affect the probability of another event occurring Probability – The likelihood that something will occur (usually expressed in percent) Normal Distribution Remember: +/- 1 s = 68.26% +/- 2 s = 95.46% +/- 3 s = 99.73% +/- 6 s = 99.99%

Perform Quality Control Quality Control Measurements Inputs Tools & Techniques Quality Management Plan Cause and effect diagram Control charts Flowcharting Histogram Pareto Chart Run chart Scatter diagram Statistical sampling Inspection Defect repair review Validated Defect Repair Outputs Quality Baseline Updates Quality Metrics Recommended Corrective Actions Quality Checklists Recommended Preventive Actions Organizational Process Assets Requested Changes Work Performance Information Recommended Defect Repair Approved Change Requests Organizational Process Assets Updates Validated Deliverables Deliverables Project Management Plan Updates Perform Quality Assurance Perform Quality Control Quality Planning

Cumulative Percentage Pareto Chart Graph of problem type vs. frequency 80/20 Rule – 80% of your problems will come from 20% of your work! Cumulative Percentage Frequency Problem Type

Control Chart Upper & Lower Control Limits (UCL & LCL) Set by quality goal i.e. 3s Includes the normal and expected variation in the process Specification Limits Contracted acceptable limit, usually outside UCL & LCL Out of Control Data point falls outside of UCL/LCL Non-random data points i.e. “Rule of Seven” Rule of Seven If you get seven points in a row on one side of the mean, seven points ascending, or seven points descending, the process is no longer random and it is out of control Originally adopted from a Ford quality manual Assignable Change When the controller adjusts the process to bring the process back within process control limits

Control Charts Specification Limit (or Mean) Specification Limit

Answers to Questions 1 – C 2 – A 3 – B 4 – D 5 – B 6 – D 7 – A 8 – C