Pmp Chapter 8 2004

PMP Preparation Course

Project Quality Management Prepared by: Eng. Ahmed Farahat, PMP February 12, 2006

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Project Quality Management

Quality: o The totality is the degree to which a set of inherent characteristics fulfill requirements. stated or implied needs are the inputs to developing project requirement.

Grade: o Grade is a category assigned to products or services having the same functional use but different technical characteristics. February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management The Development of Quality Management Quality Management Quality is defined, planned and supervised companywide

Quality Insurance

Quality Control Quality is separating good from bad parts without feedback to the production process

Quality develops during the production process

Commitment of management participation of employees, step by step improvement

Inspections shifted into the production process, prevention, process orientation

Final inspection

1950

1960

1970

February 12, 2006

1980

1990

2000

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Concept

1. Zero defects 2. The customer is the next person in the process 3. Do the right thing right the first time 4. Continuous improvement process (CIP) 5. Process capability February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Modern Quality Management o

Customer satisfaction n

o

Prevention over inspection n

o

The cost of avoiding mistakes is much less than the cost of correcting them

Management responsibility n

o

Understanding, managing, and influencing needs so that customer expectations are met or exceeded

Success requires participation of all members of the team, but it is the responsibility of management to provide resources needed

Processes within phases n

Plan/Do/Check/Act cycle

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Approaches to Quality Management

1. ISO 9000 2. Continuous improvement 3. Total quality Management (TQM) 4. Quality Gurus n Deming n Juran n Crosby February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

1. ISO 9000

o A quality system standard that is applicable internationally to any product or service. o It is a system for quality assurance o It includes three-part, never-ending cycle including: n Planning n Controlling n Documentation February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

ISO 9000 (cont.)

Fuzzy boundaries

Interdepartmental Covers major categories of the standard

Interdepartmental Written for individuals performing special tasks

February 12, 2006

Describes the quality system of the customer

Quality Manual

Quality Goals, Objectives & Policy

Process Procedures

Description of activities & functional units

Job Instruction, specifications Inspection and Test Procedures, Reports

Detailed work documents

Drawing, Schedules, Material Bills, forms, etc.

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

2. Continuous Improvement Continuous Improvement Process (CIP): Is the concept that supports the quality goals by making gradual improvements in the processes and sub-processes. n CIP focuses on: 1. Constancy of purpose 2. Commitment to quality 3. Customer focus and involvement 4. Process orientation 5. System centered management 6. Investment in knowledge 7. Team work 8. Conservation of human resources 9. Total involvement 10. Perpetual commitment February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Continuous Improvement (cont.) Improvement procedure 1. Define and standardize (sub) processes 2. Assess (sub) process performance 3. Improve (sub) processes 4. Measure progress

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Continuous Improvement (cont.) Dr. Kerzner's Project Management Maturity Model Plateau Process The five levels of Maturity Level 5

Maturity

Improvement

Process Control Process Definition

Continuous Improvement Level 4

Benchmarking Level 3 Single Methodology

Basic Knowledge

Level 2

Innovation Steps

Common Process Level 1 Common Language February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Continuous Improvement (cont.)

KAIZEN

Small improvements in products or processes to reduce costs and ensure consistency of performance of products or services. In Japan this is just a word not a quality movement. Kaizen means Kai (alter) and Zen (make better or improve). In the US and most of Western Europe improvements are thought of as BIG improvements. In Japan, improvements are thought of as small improvements. February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

3. Total quality Management (TQM) o o

A common approach to implementing a quality improvement program within an organization. Total quality management focuses on:

1. 2. 3. 4. 5.

Effectiveness (meeting our objectives, goals & expectations) Efficiency (the maximum use of resources) Reengineering Restructuring Business process: o Downsizing (firing people) o Rightsizing (reallocation)

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

4. Quality Gurus

Deming:

o Pioneered the use of statistics and sampling methods. o Top down support (top management support) o Postulated that 85% of all quality problems required management to take the initiative and change the process. o Only 15% of the quality problems could be controlled by the workers on the floor. o Deming Cycle for improvement: Plan – Do – Check – Act February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Quality Gurus (cont.)

Deming Cycle Act by correction

Plan for Improvement

Process Improvement

Check the results

February 12, 2006

Do on small scale

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Gurus (cont.)

Crosby: o Performance standard is "Zero defect" o Cost of quality is measured by cost of non-conformance o Conformance to requirements o Quality comes from Prevention o Cheaper to do right first time February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Quality Gurus (cont.)

Juran:

o The customer's view of quality is Fitness for use. o Technical / Statistical focus o Juran's Trilogy: n Quality improvement, Quality planning and Quality Control

o The cost of quality and the legal implication of quality o There can exist many grades of quality February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Team for a project Senior Management Regulatory Authorities

Customer Project Manager

Subcontractors

Venders and Suppliers Project staff February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Quality Management

Processes necessary to ensure that the project will satisfy the need for which it was undertaken. oAddresses both the management of the project and the product of the project oImproves project management as well as the quality of the product oDelivery of both high quality and high grade of product February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Management o o o

o

Quality is planned in, not inspected in Investments in product quality improvement must often be borne by the performing organization The responsibilities for building quality product rest primary with management is 85%, while the responsibility of team members is 15% The project Quality management processes 1. Quality Planning 2. Perform Quality Assurance 3. Perform Quality Control

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Process Orientation

Planning

8.1 Quality Planning

Execution 8.2 Perform Quality Assurance

Monitoring & Controlling 8.3 Perform Quality Control February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Planning

o Identifying the quality standards that are relevant to the project and determining how to meet them n It is one of the Key facilitating processes during the project planning. n Should be performed regularly and parallel with the other project planning processes February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Quality Planning Inputs 1. Enterprise Environmental Factors 2. Organizational Process Assets 3. Project scope statement

Outputs 1. Quality management plan 2. Quality metrics

4. Project Management Plan

3. Quality Checklists

Tools &Techniques 1. cost / Benefit analysis

4. Processes improvement plan 5. Quality baseline 6. Project Management Plan (updates)

2. Benchmarking 3. Design of experiments 4. Cost of Quality (COQ) 5. Additional quality planning tools February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Planning, Tools & Techniques

1. cost / Benefit analysis: n Cost and benefit tradeoffs of meeting quality requirements

2. Benchmarking: n Comparing actual or planned project practices to other projects, in order to generate ideas for improvement and to provide a standard against which to measure performance February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Quality Planning, Tools & Techniques

3. Design of experiments: n Is a statistical method that helps identify which factors might influence specific variables. The technique is applied to the product of the project and the project management issues.

4. Additional Quality Planning Tools: n Brainstorming, affinity diagrams, force field analysis, nominal group techniques, matrix diagrams, flowcharts and prioritization matrices. February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Planning, Tools & Techniques

5. Cost of Quality: Cost of quality refers to the total cost of all efforts to achieve product/service quality, and

includes

all

the

work

to

ensure

conformance to requirements, as well as all work resulting from non-conformance to requirements. February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Cost of Quality

o Cost of conformance: n Prevention n Appraisal

o Cost of Nonconformance: n Internal failures (in house) ( under control) n External failures (customer / field) February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Cost of Quality

Cost of Conformance 1. Prevention cost: o Quality training o Quality auditing o Process capability studies o Survey of vendors / suppliers o Survey of subcontractors February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Cost of Quality

Cost of Conformance 2. Appraisal Cost: o Inspection and testing of the products o Maintenance of inspection and test equipment o Cost to process and report inspection data o Laboratory testing o Internal design review and walk through February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Cost of Quality

Cost of Nonconformance 1. Internal Failure Cost: Scrap and rework Charges related to late payment of bills Inventory costs Engineering change cost related to correcting a design error o Infant mortality o Correcting documentation o o o o

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Cost of Quality , Infant mortality

Probability of Failure

Bathtub Curve

MTTF Mean time to failure

Wear-out period

Infant Mortality Period

Life of product ( time, operation hours, cycles, etc.) February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Cost of Quality

Cost of Nonconformance 2. External Failure Cost: o o o o o o o

Complaints Warranty cost: cost of repair or replacement. Product rejected and returned. Concessions Future business losses. Product recall costs Product liability

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Cost of Quality

Cost of Quality

Total Cost of Quality Failure

Appraisal Prevention Time February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

The Cost of Quality before & after TQM Saving 50% of the total in 3 years Failure Cost

Failure Cost

Appraisal Cost

Appraisal Cost 23%

10 – 15%

Prevention cost 2% max.

Prevention cost 10 – 15%

Cost of Poor Quality February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Quality Planning, Outputs 1. Quality Management Plan:

n Describes how the PM team will implement quality policy. Addresses Quality control (QC), quality assurance (QA), and quality improvement for the project

2. Quality Metrics:

n Describes what something is and how it is measured by the quality control process

3. Quality Checklist:

n Used to verify that a set of required steps has been performed

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Quality Planning, Outputs 4. Process improvement Plan: n n n n

Process boundaries Process configuration Process metrics Target for improved performance

5. Quality baseline:

n Record the quality objectives of the project n Basis for measuring and reporting quality performance as part of the performance measurement baseline.

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Assurance (QA) o Evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards

It is a system for prevention. It should be performed throughout the project. It is often provided by a Quality Assurance Department n It may be: o Internal : provided to the performing organization. o External: provided to the customers and others not n n n

involved in the work of the project.

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Assurance Inputs

Tools &Techniques

1. Quality management plan 2. Quality metrics

1. Quality planning tools and Techniques 2. Quality audits

3. Process improvement plan 4. Work performance information 5. Approved change requests 6. Quality control measurements 7. Implemented change requests 8. Implemented corrective actions 9. Implemented defect repair 10. Implemented preventive actions February 12, 2006

3. Process analysis 4. Quality control tools and techniques

Outputs 1. Requested changes 2. Recommended corrective actions 3. Organizational Process Assets (updated) 4. Project management plan

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Assurance, Tools & Tech. 2. Quality Audit: o

A quality audit is a structured review of the management activities. It is used to: n

Determine whether quality activities and related results comply with the planned arrangements.

n

Determine whether the arrangements are implements effectively and are suitable to achieve objectives

n

Identify lessons learned that can improve performance

n

May be scheduled or random

n

Carried out by trained in-house auditors or by third parties such as registration agencies

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control (QC)

o Monitoring results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfactory. n

Focuses on: measuring correction

n

It should be performed throughout the project

n

Performed by a quality control department

n

Project results are deliverables and management results, such as cost and schedule performance

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control o Prevention:

n Keeping errors out of the process

o Inspection:

n Keeping the errors out of the hands of the customer

o Attribute sampling:

n The result conforms or it does not

o Variables sampling:

n The result is rated on a continuous scale that measures the degree of conformity

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control o Tolerances:

n The result is acceptable if it falls with the range specified by the tolerance

o Control Limits:

n The process is in control if the result falls within the control limits (upper limit & lower limit).

o Special causes: n Unusual events

o Random causes:

n Normal process variation

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control o Common Cause Variations n Include poor lots of raw material, poor product design, work conditions being unsuitable, and equipment that cannot meet design tolerances. n These causes are beyond the control of workers on the floor. n For

improvement,

Management

actions

are

required. February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control o Assignable (special) causes: n Include lack of knowledge by workers, workers mistakes, or workers not paying attention during production. n These causes can be identified by workers on the shop floor and corrected. n Workers

can

eliminate

only

special

cause

variability February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control

Tools &Techniques

Inputs

1. Cause and effect diagram 2. Control Charts 3. Flowcharting 4. Histogram 5. Pareto chart 6. Run chart 7. Scatter cart 8. Statistical sampling 9. Inspection 10. Defect repair review

1. Quality Management Plan 2. Quality metrics 3. Quality Checklists 4. Organizational process assets 5. Work performance information 6. Approved change requests 7. Deliverables 1. 2. 3. 4. 5.

Outputs

Quality control measurements Validate defect repair Quality baseline (updates) Recommended corrective actions Recommended prevention actions

February 12, 2006

6. Requested changes 7. Recommended defect repair 8. Organizational process assets 9. Validated deliverables 10. Project Management Plan

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control, Tools & Tech. q Cause and Effect Diagram People

organization

information

materials Major Defect

Policy

methods

equipment

environment

Causes February 12, 2006

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Effect

Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control, Tools & Tech. o Control Charts Graphic displays of the results, over time, of a

§

process; used to assess whether the process is in control §

Identify the allowable range of variation for particular product characteristic

§

The process average is the mean of the averages for the samples taken over a long period of time

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control, Tools & Tech. Control Charts

1. 2. 3. 4. 5.

Upper & lower control limit Assignable cause The process is out of control Rule of seven Specification limits

3

2

5 1 4

1 5 February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control, Tools & Tech. qFlowcharting

Bills from Shipper

Prepare Pay Authorization

Yes OK

Verify

Send to Paying Office

No Prepare Letter of Dispute

February 12, 2006

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Send to Shipper

Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control, Tools & Tech. o Pareto Diagram n Histogram, ordered by frequency of occurrence, that shows how many results were generated by type or category of identified cause o

Pareto's Law n A relatively small number of causes will typically produce a large majority of the problems or defects (80/20) principle, where 80 % of the problems are due to 20 % of the causes.

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control, Tools & Tech. Pareto Diagram 100

30

75

Cumulative Percentage

20

50

Frequency by cause

10

0 February 12, 2006

A

B

C

D

E

25

F

Percentage of Defective Cases

Number of Defective Cases

40

0

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Eng. Ahmed Farahat, PMP

Project Quality Management

Perform Quality Control, Tools & Tech. q Run Chart

Shows the history and pattern of variation. n Trend Analysis:

Using mathematical techniques to forecast future outcomes based on historical results o Technical performance n How many errors or defects have been identified, how man remain uncorrected? o Cost and schedule performance n How many activities per period were completed with significant variances?

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Perform Quality Control, Tools & Tech. q Scatter Diagram n Shows the pattern of relationship between two variables. The closer the points are to a diagonal line, the more closely they are related.

q Statistical sampling n Choosing part of a population of interest for inspection.

q Inspection n Measuring, examining, and testing to determine whether results conform with requirements February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

Processes Flow Diagram

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Relationships among the Initiation Processes

PLANNING PROCESS GROUP

Develop Project Charter EXECUTING PROCESS GROUP

Develop Preliminary Project Scope Statement

February 12, 2006

MONITORING & CONTROLLING PROCESS GROUP

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Eng. Ahmed Farahat, PMP

Project Quality Management

Relationships among the Planning Processes MONITORING & CONTROLLING PROCESS GROUP Develop

INITIATION PROCESS GROUP

Scope Planning

Scope Definition

Project Management Plan

Activity Definition Create WBS

Activity Resource Estimating Activity Duration Cost Estimating

Risk

Estimating

Management Planning Cost Budgeting

Activity Sequencing

Identification

H R Planning

Schedule Development

Qualitative

Quality Planning

Risk

EXECUTING PROCESS GROUP

Risk Analysis Communication Quantitative Risk Analysis

Plan Purchases And Acquisitions

Planning

Plan Contracting

CLOSING PROCESS GROUP

Risk Response Planning

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Relationships among the Execution Processes

MONITORING & CONTROLLING PROCESS GROUP

Perform

INITIATION PROCESS GROUP

Quality Assurance

Acquire Project Team Direct and Manage Project Execution

PLANNING PROCESS GROUP

February 12, 2006

Develop

Information

Project Team

Distribution

Request

Select

Sellers Responses

Sellers

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CLOSING PROCESS GROUP

Eng. Ahmed Farahat, PMP

Project Quality Management

Relationships among the Monitoring and Controlling Processes Scope Verification INITIATION PROCESS GROUP

Scope Control Monitor And Control Project Work

Schedule Control

Cost Control

Perform Quality Control

PLANNING PROCESS GROUP

Manage Project team Integrated Change Control

CLOSING PROCESS GROUP

Perform Reporting

Manage Stakeholders EXECUTING PROCESS GROUP

Risk Monitoring and Control

Contract Administration

February 12, 2006

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Eng. Ahmed Farahat, PMP

PMP Preparation Course

Project Quality Management

Relationships among the Closing Processes PLANNING PROCESS GROUP

Close Project EXECUTING PROCESS GROUP

Contract Closure MONITORING & CONTROLLING PROCESS GROUP

February 12, 2006

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Eng. Ahmed Farahat, PMP

Project Quality Management

? February 12, 2006

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Eng. Ahmed Farahat, PMP