1. 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

2. 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”

3. 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

4. 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

5. 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

6. 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

7. 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

8. 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

9. 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%

10. 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

11. 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

12. 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

13. Control Charts
Specification Limit
(or Mean)
Specification Limit

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