Project Quality Management Sections of this presentation were adapted from A Guide to the Project Management Body of Knowledge 4 th Edition, Project Management Institute Inc., © 2009

Project Quality Management “Creating and following policies and procedures to ensure that a project meets the defined needs it was intended to meet from the customer’s perspective.” PMP Exam Prep, 6 th Edition

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 Plan Quality Plan Quality What is quality and how will we ensure it? What is quality and how will we ensure it? Perform Quality Assurance Perform Quality Assurance Are we following the quality standards? Perform Quality Control Perform Quality Control Are we meeting the quality standards? Perform Quality Assurance Perform Quality Control Plan Quality

Scope Baseline Cost Performance Baseline Schedule Baseline  Cost-benefit analysis  Cost of quality  Control charts  Benchmarking  Design of experiments  Statistical sampling  Flowcharting  Proprietary quality management methodologies  Additional quality planning tools Inputs Outputs Tools & Techniques Risk Register Enterprise Environmental Factors Organizational Process Assets Quality Management Plan Quality Metrics Process Improvement Plan Quality Checklists Project document updates Perform Quality Assurance Perform Quality Control Plan Quality Stakeholder Register

Plan Quality Cost of Quality – Evaluating the cost of conformance with the cost of nonconformance to reach a balance. Includes; Prevention Costs Prevention Costs Appraisal Costs Appraisal Costs Failure Costs Failure Costs Cost of Conformance Cost of Non Conformance Quality training Rework StudiesScrap Surveys Inventory Costs Warranty Costs Deming’s Costs of Quality 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 Project Management Plan  Plan quality and perform quality control tools and techniques  Quality audits  Process analysis Inputs Outputs Tools & Techniques Change Requests Organizational Process Assets Updates Project Document Updates Project Management Plan Updates Quality Metrics Work Performance Information Quality Control Measurements Perform Quality Assurance Perform Quality Control Plan Quality

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) Remember: +/- 1  = 68.26% +/- 2  = 95.46% +/- 3  = 99.73% +/- 6  = 99.99% Normal Distribution

Perform Quality Control Project Management Plan  Cause and effect diagram  Control charts  Flowcharting  Histogram  Pareto Chart  Run chart  Scatter diagram  Statistical sampling  Inspection  Approved change requests review Inputs Outputs Tools & Techniques Quality Control Measurements Validated Deliverables Validated Changes Quality Metrics Quality Checklists Organizational Process Assets Work Performance Measurements Approved Change Requests Deliverables Change Requests Project Management Plan Updates Organizational Process Assets Updates Project Document Updates Perform Quality Assurance Perform Quality Control Plan Quality

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

Control Chart Upper & Lower Control Limits (UCL & LCL) Set by quality goal i.e. 3  Set by quality goal i.e. 3  Includes the normal and expected variation in the process Includes the normal and expected variation in the process Specification Limits Contracted acceptable limit, usually outside UCL & LCL Contracted acceptable limit, usually outside UCL & LCL Out of Control Data point falls outside of UCL/LCL Data point falls outside of UCL/LCL Non-random data points i.e. “Rule of Seven” 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 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 Originally adopted from a Ford quality manual Assignable Change When the controller adjusts the process to bring the process back within process control limits When the controller adjusts the process to bring the process back within process control limits

Control Charts Specification Limit (or Mean)