1. Project Quality Management
Presented by Project Masters Inc.

2. Project Quality Management
Chapter Objectives/Topics
Define Project Quality Management
Discuss Project Quality Management and Its basis
Discuss the difference between Product Quality, Service Quality, and Project Quality
Discuss the Roles and Responsibilities of Stakeholders
List and discuss three Quality Pioneers

3. Project Quality Management
Chapter Objectives/Topics:
Discuss the complementary relationship between Modern Quality Management and Project Management
Define and discuss the Project Quality Management processes
Plan Quality Management
Perform Quality Assurance
Control Quality

4. Project Quality Management

5. Project Quality Management
The processes and 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.
(The PMBOK® Guide: Fifth Edition)
The concept is to implement the Quality Management System through policies/procedures and continuous process improvement.

6. Project Quality Management
Project Quality Management utilizes the following three processes at differing times and, in some cases, continuously throughout project phases and the project life cycle.
Plan Quality Management
Perform Quality Assurance
Perform Quality Control

7. Project Quality Management

8. Defining Quality
As a delivered performance or result, is the degree to which a set of inherent characteristics fulfill requirements. (The PMBOK® Guide: Fifth Edition)

9. Defining Grade
As a design intent is a category assigned to deliverables having the same functional use but different technical characteristics. (The PMBOK® Guide: Fifth Edition)

10. Quality Points/Issues
Quality is determined by the customer.
Quality goes beyond merely fulfilling the explicitly stated specifications.
Quality is not an absolute characteristic.
Quality is different from grade.
Quality is based on meeting a standard.

11. Product Quality
To the degree to which products fail to fulfill the needs for which they are purchased, they are lacking in quality.
This describes - Fitness for Use

12. Service Quality
What exactly does it mean when someone says that they received poor quality service at a restaurant?
Different people have different ideas regarding this simple question
What are your thoughts?

13. Project Quality
Project Quality refers to more than just the product or service delivered by the project. Project Quality pertains to the project itself – as an entity.
Meeting the time, cost, and scope objectives of the project itself.

14. Project Quality
Once stakeholder expectations are identified, the Project Manager must work to distill a set of project requirements.
Expectations that all stakeholders hold in common will be the easiest to define.
Where there is disagreement, the Project Manager must work to negotiate a common expectation, when possible.
Where the conflict involves regulations, laws, or ethics, the Project Manager must clearly communicate what is required to remain legal and ethical.

15. Stakeholder Roles and Responsibilities

16. Stakeholder Roles and Responsibilities
The Customer is responsible for setting the requirement for an acceptable grade and quality level.
Senior Management sets the tone for quality in the company; they should be part of the Quality Team, and are responsible to provide the resources needed.
The Project Manager is responsible for implementing Quality Policies and Procedures.

17. Stakeholder Roles and Responsibilities
Functional Management is responsible for implementing Quality Policies and Procedures.
Suppliers/Vendors must provide quality services, pieces, parts, components, and materials.
Subcontractors are responsible for meeting the Quality Standards of the customer.
The Project Staff is responsible for meeting the Quality Requirements.

18. Project Manager Responsibilities
Work to define the requirements up-front
Obtain customer agreement on the requirements and then determine their fitness for use with the deliverables
Manage the Project Team toward satisfying the requirements
Measure and drive continuous improvement of the project management process

19. Philosophies of Modern Quality Management

20. Project Quality Management
The purpose of Project Quality Management as described in this section is intended to be compatible with the International Organization for Standardization (ISO).
In the context of of achieving ISO compatibility, modern quality management approaches seek to minimize variation and to deliver results that meet defined requirements.

21. Modern Project Quality Management
These quality management approaches recognize the importance of the following:
Customer satisfaction – Understanding, evaluating, defining, and managing requirements so that customer expectations are met – fitness for use
Prevention over inspection – Quality should be planned, designed, and built into the process versus inspected into the process
Continuous improvement - PDCA (plan-do-check-act) in addition to quality improvement initiatives such as Total quality Management (TQM), Six Sigma, Lean Six Sigma, CMMI, etc.

22. Modern Project Quality Management
These quality management approaches recognize the importance of the following:
Management responsibility – Must provide suitable resources for the project
Cost of Quality (COQ) – refers to the total cost of the conformance work and the nonconformance work that should be done as a compensatory effort because, on the first attempt to perform that work, the potential exists that some portion of the required work effort may be done incorrectly.

23. Philosophies of Quality Management
Deming
Juran
Crosby
PMI
Definition
Conformance to specs.
Fitness for use
Conformance to requirements
System
Prevention
Performance Standard
Zero defects
Minimize cost of quality
Measure
Direct measures
Cost of Quality
Cost of Nonconformance
Role of Top Management
Leadership & Participation
Role of Worker
Maintenance improvement
Moderate involvement

24. 3-Sigma Process with +/- 1.5 Sigma Shift

25. Six Sigma Quality Six Sigma Vs. Three Sigma 99.999% -6 -5 -4 +3 +2 +1-3 -2 -1 +6 +5 +4
Six Sigma Repeatable Processes
99.7%
95%
68%
Traditional thinking says 99.7% was good enough
Added Standard
Deviations
Normal Standard
Six Sigma Vs. Three Sigma

26. Project Quality

27. Project Quality
Project Quality refers to whether the project was completed:
On time
To the specifications
Within budget
To the customer’s satisfaction

28. Project Quality
Project Quality refers to how well the organization performed as it
Conceptualized
Planned
Implemented
Closed-out
“THE PROJECT”

29. Project Quality
Cost
Scope
Quality
Time
Risk
Customer
Satisfaction

30. Monitoring & Controlling
Initiating
Planning
Executing
Monitoring & Controlling
Close-out

31. Project Quality Management Processes

32. Plan Quality Management

33. Plan Quality Management
The process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with relevant quality requirements.
(The PMBOK® Guide: Fifth Edition)
The key benefits of this process is that it provides guidelines and direction on how quality will be managed and validated throughout the project.

35. Plan Quality Management Inputs
Project Management Plan
Scope Baseline
Project description, deliverables, and acceptance criteria
Schedule Baseline
Cost Baseline
Other Management Plans
Stakeholder Register
Identifies those with interest or impact on quality
Risk Register
Requirements Documentation

36. Plan Quality Management Inputs
5. Enterprise Environmental Factors
Governmental Agency Regulations
A standard is a document approved by a recognized body that provides for common and repeated use, rules, guidelines, or characteristics for products, processes or services with which compliance is not mandatory.
A regulation is a document that lays down product, process, or service characteristics, including the applicable administrative provisions, with which compliance is mandatory.
Rules, standards, guidelines, etc.
Working or operating conditions of the project or its deliverables that may affect project quality
Cultural perceptions that may influence expectations about quality

37. Plan Quality Management Inputs
6. Organizational Process Assets
Quality policies/procedures, guidelines
Historical databases
Lessons learned

38. Plan Quality Management Tools and Techniques
Cost Benefit Analysis
Business Case for each quality activity compares the cost of the quality step to the expected benefit, e.g. less rework, higher productivity, etc.
Cost of Quality
Cost of Conformance or the Cost of Nonconformance
Cost of Conformance Prevention Costs and Appraisal Costs
Cost of Nonconformance Internal Failure Costs and External Failure Costs

39. Plan Quality Management Tools and Techniques
Cost of Conformance
Prevention Costs (Build a Better Product)
Training, document processes, equipment, time to do it right
Appraisal Costs (Assess the quality)
Testing, destructive testing loss, Inspections
Cost of Nonconformance
Internal Failure Costs (Failures found by the project)
Rework, scrap
External Failure Costs (Failures found by the customer)
Liabilities, warranty work, lost business

40. Plan Quality Management Tools and Techniques
3. Seven Basic Quality Tools
Cause and Effect Diagrams
Also called Fishbone Diagrams or Ishikawa Diagrams, which illustrate the linkage between the problem symptoms (the effect) and the possible causes.
Time
Machine
Method
Material
Energy
Measurement
Personnel
Environment
Major Defect
Cause
Effect

41. Plan Quality Management Tools and Techniques
3. Seven Basic Quality Tools (cont’d)
Flowcharts
Also referred to as process charts because they display the sequence of steps and the branching possibilities that exists for a process that transforms one or more inputs into one or more outputs.
Start
Finish
Step 1
Step 2
Step 3
OK?
Correct

42. Plan Quality Management Tools and Techniques
3. Seven Basic Quality Tools (cont’d)
Checksheets
Also known as tallysheets and may be used as a checklist when gathering data.
Pareto Diagrams
Exist as a special form of vertical bar chart and are used to identify the vital few sources that are responsible for causing most of a problems effects.
Alfredo Pareto – The 80/20 Rule or 80% of the problems are attributed to 20 % of the causes.

43. Sample Pareto Chart Cumulative Percentage Frequency by Cause
Car Problems 40
100 10 20 30 25 50 75
Number of Defective Cases
Percentage of Defective Cases
Cumulative Percentage
Frequency by Cause
Improper Rotation
Noise
Wobble
pressure
Axle Caulking
Case Wobbles
Others

44. Plan Quality Management Tools and Techniques
3. Seven Basic Quality Tools (cont’d)
Histograms
A special form of bar chart used to describe the central tendency, dispersion, and shape of a statistical distribution.

45. Plan Quality Management Tools and Techniques
Seven Basic Quality Tools (cont’d)
Control Charts
Are used to determine whether a process is stable or has predictable performance.
Reflects the maximum and minimum values allowed
The values are normally established by the team, policies, and/or contracts.
Project Schedule Performance Control Chart
Time
Average
Upper and
Lower
Control
Limits

46. Plan Quality Management Tools and Techniques
3. Seven Basic Quality Tools (cont’d)
Scatter Diagrams
Exist as ordered pairs (X,O) and are sometimes called correlation charts because they seek to explain a change in the dependent variable Y in relationship to a change in the corresponding independent variable X.
For example, an insurance company may generate a scatter diagram showing educational level and number of automobile accidents to determine whether education level should be used as a factor in determining the price of an automobile insurance policy.

47. Sample Scatter DiagramY X

48. Plan Quality Management Tools and Techniques
4. Benchmarking
Benchmarking involves comparing actual or planned project practices to those of other projects in order to generate ideas for improvement and to provide a standard by which to measure performance.
These other projects may be within the performing organization or outside of it, and may be within the same application area or in another area.

49. Plan Quality Management Tools and Techniques
5. Design of Experiments (DOE)
A statistical method that helps identify which factors may influence specific variables of a product or process under development or in production.
DOE may be used during the Plan Quality Management process to determine the number and type of tests and their impact on the cost of quality.

50. Plan Quality Management Tools and Techniques
6. Statistical Sampling
A Sample is a few items selected from that set to represent the Population at large.
The more a sample represents the population, the more confident the user can be in making inferences about the population from the data derived from the sample.
A statistically significant sample is chosen in such a way that it is large enough and diverse enough that it represents the entire population.

51. Plan Quality Management Tools and Techniques
7. Additional Quality Planning Tools
Brainstorming
Force Field Analysis – Diagrams of the forces for and against change
Nominal Group Techniques – allows for ideas to be brainstormed in small groups and then reviewed by a larger group
Quality Management and Control Tools
8. Meetings

52. Plan Quality Management Outputs
Quality Management Plan
Describes how the project team will implement the performing organization’s quality policies
Process Improvement Plan
Process Boundaries – Describes the purpose of the process, start and end of the process, its inputs and outputs, the owner, and stakeholders
Process Configuration
Process Metrics
Targets for Improved Performance

53. Plan Quality Management Outputs
3. Quality Metrics
4. Quality Checklists
5. Project Documents Updates
Stakeholder Register
Responsibility Assignment Matrix
WBS and WBS Dictionary

54. Project Quality Planning Summary and Conclusions
Ensuring that the Inputs to the Plan Quality Management Process are in-place and that Project Team Members have been trained to use the associated Tools and Techniques is the first step in developing a Project Quality Management System

55. Perform Quality Assurance

56. Perform Quality Assurance
The process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used.
(The PMBOK® Guide: Fifth Edition)
The key benefit of this process is it facilitates the improvement of quality processes.

57. Perform Quality Assurance
Quality assurance seeks to build confidence that a future output or an unfinished output, also known as work in progress, will be completed in a manner that meets the specified requirements and expectations.
(The PMBOK® Guide: Fifth Edition)

59. Perform Quality Assurance Inputs
Project Management Plan
Describes the Quality Assurance and Continuous Process Improvement Approach
Process Improvement Plan
Quality Metrics
Quality Control Measurements
Results of Control Quality Activities
Used to analyze and evaluate the quality standards of the performing organization
Project Documents

60. Perform Quality Assurance Tools and Techniques
Quality Management and Control Tools
Affinity Diagrams – Used to generate ideas that can be linked to form organized patterns of thought about a problem
Process Decision Program Charts (PDPC) – Used to understand a goal in relation to the steps for getting to the goal
Interrelationship Digraphs – provide a process for creative problem solving in moderately complex scenarios that possess intertwined logical relationships for up to 50 relevant items

61. Perform Quality Assurance Tools and Techniques
Quality Management and Control Tools (cont’d)
Tree Diagrams – Systematic diagrams useful in visualizing parent-to-child relationships in any decomposition hierarchy that uses a systematic set of rules that define a nesting relationship
Prioritization Matrices
Activity Network Diagrams – Previously known as Arrow diagrams
Matrix Diagrams – Used to perform data analysis within the organizational structure created in the matrix

62. Perform Quality Assurance Tools and Techniques
2. Quality Audits
A structured independent process to determine if project activities comply with organizational and project policies, processes, and procedures
Objectives of a quality audit may include
Identify all good and best practices to be implemented
Identify all nonconformity gaps and shortcomings
Sharing of good practices from similar projects, Offer assistance, in a positive manner, to help raise team productivity, highlight audit contributions in lessons learned

63. Perform Quality Assurance Tools and Techniques
3. Process Analysis
Follows the steps outlined in the Process Improvement Plan

64. Perform Quality Assurance Outputs
Change Requests
Could be some form of corrective action
Project Management Plan Updates
Quality, Scope, Schedule, and Cost Management Plans
Project Documents Updates
Quality Audit Reports, Training Plans, and/or Process Documentation
Organizational Process Assets Updates
Organization’s quality standards

65. Control Quality

66. Quality Control
The Process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.
(The PMBOK® Guide: Fifth Edition)
The key benefits of this process include: (1) identifying the causes of poor process or product quality and recommending and (2) taking action to eliminate them and validating that project deliverables and work meet the requirements specified by stakeholders necessary for final acceptance.

67. The Team Should Know the Differences Between the Following
Prevention (keeping errors out of the process) and inspection (keeping errors out of the hands of the customer).
Attribute sampling (the result conforms or it does not) and variables sampling (the result is rated on a continuous scale that measures the degree of conformity).

68. The Team Should Know the Differences Between the Following
Tolerances (specified range of acceptable results) and Control Limits (that identify the boundaries of common variation in a statistically stable process or process performance)

70. Control Quality Inputs
Project Management Plan
Quality Metrics
Quality Checklists
Work Performance Data
Planned-vs.-actual performance (technical, schedule, and actual cost)

71. Control Quality Inputs
5. Approved Change Requests
6. Deliverables
7. Project Documents
Agreements, quality Audit Reports, Training Plans and assessments of effectiveness, and Process Documentation
8. Organizational Process Assets
Organizations Quality Standards/Policies
Standard Work Guidelines
Issue and defect reporting procedures and communication policies

72. Control Quality Tools and Techniques
“Seven Basic Quality Tools”
Statistical Sampling
Inspection
Approved Change Requests Review

73. Control Quality Outputs
Quality Control Measurements
Validated Changes
Verified Deliverables
Work Performance Information
Change Requests
Project Management Plan Updates
Project Documents Updates
Organizational Process Assets Updates
Completed checklists and Lessons learned documentation

74. Project Quality Management
Review Chapter Objectives/Topics
Define Project Quality Management
Discuss Project Quality Management and Its basis
Discuss the difference between Product Quality, Service Quality, and Project Quality
Discuss the Roles and Responsibilities of Stakeholders
List and discuss three Quality Pioneers

75. Project Quality Management
Review Chapter Objectives/Topics
Discuss the complementary relationship between Modern Quality Management and Project Management
Define and discuss the Project Quality Management processes
Plan Quality Management
Perform Quality Assurance
Control Quality

76. Chapter 8 - Quality Management Practice Exam
Turn to Page 324 in the “All in One” Text Book
Take the 20 Question Exam

77. Practice Exam Answers
A. QA is quality assurance for the overall project performance.
C. Quality is planned into the project, not inspected in.
A. Quality planning
A. Ishikawa

78. Practice Exam Answers
6) C. Quality is the process of completing the scope to meet stated or implied needs. 7) D. quality is prevention driven 8) B. Cost of quality 9) C. Cost of nonconformance 10) C. An Ishikawa diagram

79. Practice Exam Answers
11) A. Collaborating/Problem Solving 12) D. A yield-lose solution 13) D. Personality conflicts 14) C. The Rule of Seven 15) B. Benchmarking

80. Practice Exam Answers
16) C. Cost of poor quality 17) D. Quality audit 18) A. Out-of-control data point 19) C. A Pareto diagram 20) A. A Pareto diagram