1. Quality and reliability management in projects (seminar)

2. Quality in PM Quality of the project product: meeting the specific objectives described in the customer’s specification Quality of the project management process – Quality improvement needs continuity of operation – Importance of the project log & compilation of project history

3. Basic principles of managing quality (ISO 9001:2008) Fully documenting all processes and procedures to ensure traceability Continual improvement of all processes in the organisation This means that projects requires a quality plan as a part of the project management plan.

4. Reliabilty of the project product Reliability: – The ability of an item to perform a required function under given conditions for a given time interval. It is generally assumed that the item is in a state to perform the required function at the beginning of the time interval. Reliability may be expressed quantitatively by measures such as the reliability function, the mean time to failure and the failure rate. In some fields of application, the term reliability performance is used to designate the concept.

5. The reliability function

6. Quality and reliability concepts of project management 1.Maximizing the satisfaction of customer and interested parties needs is paramount 2.All work is carried out as a set of planned and interlinked processes 3.Quality and reliability must be built into both products and processes 4.Management is responsible for creating an environment for quality and reliability 5.Management is responsible for continual improvement

7. Maximizing the satisfaction of customers (and interested parties) is paramount Identifying and understanding these needs Both stated and implied Translating them into requirements Ensure that all efforts are contributed to them Establish good communication links with the customer Other interested parties should be taken into account, too, if it is possible, but the customer is privileged if there is a conflict between their needs.

8. All work is carried out as a set of planned and interlinked processes Project processes are for creating value for the customer through transformation of inputs into outputs. Planning: indentifying and documenting the processes and their quality and reliability requirements; Co-ordinating and integrating the processes; Ensuring that the process have the appropriate skills, processes, material, equipment and specifications; Monitoring and controlling the processes.

9. Quality and reliability must be built into both products and processes Prevention of failure (mistakes and errors); Detection is not enough; Must be built into the design of the product; It is required to combine the planned and controlled activities with – competent and quality conscious personnel, – understanding the customer’s requirements and assessment.

10. Management is responsible for creating an environment for quality and reliability Both in the parent organisation & in the project organisation. Setting quality objectives which can be quantified Providing an organisational structure and support which is conductive to meeting quality and reliability objectives Involving all personnel in achieving quality

11. Management is responsible for continual improvement Continually seeking to improve the PM process by learning from experience. PM should not be treated as an isolated activity. Built up a system to collect and analyse information from projects for continual improvement.

12. Project quality and the parent organisation If the parent organisation do not adapt to the PM requirements (PM maturity is low) than a separate quality system should be necessary. If there are two quality systems than there is a need for an interface between them.

13. Project processes and quality Strategic processes Interlinking processes Operational processes

14. Strategic processes – Set the direction of the project – Require the formal and agreed documentation of the customer needs – Policies for the operational processes Procurement Quality Risk assessment and mitigation Closure Knowledge management – These policies should support operational processes and specify: Performance measures to monitor progress Timing of regular management reviews

15. Interlinking processes Since there are many interrelated processes of the project, any change will affect more than one process. Recognising and manage the connections to avoid unwanted consequences. The project management plan: – Integration of all subsidiary plans into a coherent one. Interaction management: – Minimising the adverse effects of actions in one process on others. – Communication system and management. Change management: – Assess change requests and prevent unauthorised changes. – Monitor the implementation of authorized changes. – Resolve conflicts.

16. Operational processes Scope related processes: – translation of the customer’s requirements into activities – ensuring to stay between the defined scope Communications: Communications plan (what, why, when, who): Collecting information Distribution (avoid overload, too) Storing of information Formalised procedures (meetings, agenda etc.) Personnel: – Environment (different from the parent organisation’s) – Staffing – Team management – Performance management

17. Reading Textbook chapter 5

18. Projects and procurement

19. Procurement Acquiring hardware, software, materials, services, spare parts, skills, workforce etc. which are necessary for the project. It is more than purchasing. Organisation of: – Transport – Arrangement of accomodation for staff away from home – Hiring specialists or consultants – Renting (building, equipment etc.) – Documentation

20. Procurement (or acquisition) is… vital for projects concerned with a hardware product. The commitment for materials, goods and services should be made before their use in the project. Procurement can set the course of the project.

21. Responsibility on procurement Project manager: – for the most important actions and for supervision Procurement executive or procurement office: – Operative planning and operative tasks Other: – Legal expert (contracts), experts of special machinery and activities etc. – If special skill are needed – If previous project experience is needed

22. Autonomy of the procurement group is often limited Of the various functions used in projects, it fits least easily. Possible sources of problems: – Significant capital investment (decision is above the project manager) – Supply needed only by the project (the mother organisation is not prepared) – Availability of the resources can be difficult – Procurement from different (esp. new) sources needs various experience and knowledge Sometimes two procurement group is needed: – One at the HQ, one at the project site

23. Sources of information Design/engineering departments specify the material required. – Quality of these specifications will affect the quality of the project product and processes. The project team itself. – Project plans, scheduling etc. Finance department: – Availability of money and financial stability of potential suppliers.

24. Tasks of the procurement group Finding and approving suppliers Ensuring the availability and use of adequate specifications Purchasing at least total cost Vendor surveillance: ensuring delivery time Warning all concerned if delivery specifications are not going to be met Secure storage and accurate control of material Organising all discussions with actual and potential suppliers Advising on prices Acting as a window on the world Post-project disposal of unrequired material and equipment

25. Organising all discussions with actual and potential suppliers Different specialist project team members often have to meet with the suppliers. Attendance on these meeting is also advisable. Always update the contact lists!

26. Window on the world Through contacting suppliers, information can be collected on many areas: – Materials used – Processes – Equipment – Price level – etc.

27. Finding and approving suppliers Goods or services Technical capabilities: quality & financial stability: supporting the contract Choosing between alternative suppliers: weighted average of measures like: – Design competence – Technical competence – Previous experice (even is projects) – Fianncial stability – Perceived quality – Delivery promise – Price – Terms of payment

28. Ensuring the availability and use of adequate specifications Use of appropriate standards – International – National – Company or project

29. Purchasing at least total cost Tendering Weighted average of many factors: price of the resource is only one – Other factors can affect other types of costs (Product) Life-cycle costing is a possibility Target price is an important basis Caution on too low offers

30. Vendor surveillance Orders need to be chased (progressed) – Telephone, e-mail – Personal visit (manufacturing progress) Ask for help from specialists

31. Warning all concerned if delivery specifications are not going to be met Informing the project manager on every significant change is obligatory Changes (delays) can have an impact on other activities. Early delivery is unwanted, too (storage costs, risk).

32. Reading Textbook chapter 6