1. Quality and reliability management in projects

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
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
The probability of something operating for a certain amount of time without failure.
It is a function of time: a time value plus a probability value, like: there is a 95% chance that it will work without failure for 1 year.

6. It illustrates hypothetical failure rate over time.
The bathtube curve
Infant mortality
End of life wear-out
Normal life
It illustrates hypothetical failure rate over time.

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

8. Maximizing the satisfaction of customers (and other 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.

9. 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.

10. 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.

11. 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

12. 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.

13. 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.

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

15. Strategic processes These 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 (are the objectives still valid?, is prevention or correction needed?)
Policies for proper closure

16. Interlinking processes
Since there are many interrelated processes of the project, any change will affect more than one process. Interlinking processes should handle these problems.
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.

17. 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

18. Reading
Textbook chapter 5

19. Projects and procurement

20. 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 accommodation for staff away from home
Hiring specialists or consultants
Renting (building, equipment etc.)
Documentation

21. 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.

22. 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

23. 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 organization 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

24. 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.

25. Tasks of the procurement executive/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

26. 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.
Do always update the contact lists.

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

28. 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 experience (even with projects)
Financial stability
Perceived quality
Delivery promise
Price
Terms of payment

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

30. Purchasing at least total cost
Tendering
Weighted average of many factors: price of the resource is only one of them
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

31. Vendor surveillance Orders need to be chased (progressed)
Telephone,
Personal visit (manufacturing progress)
Ask for help from specialists

32. 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).

33. Reading
Textbook chapter 6