SIE/ENTR 457/557

Project Management
Project Quality Management

Overview

SIE 457 / 557

Bob Lepore
Systems & Industrial Engineering
rglepore@email.arizona.edu
“PAY ME NOW OR PAY ME LATER”

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 What Is Project Quality?

• The International Organization for Standardization (ISO) defines quality as “the degree
to which a set of inherent characteristics fulfills requirements” (ISO 9000:2000)

• Other experts define quality based on:

• Conformance to requirements: the project’s processes and products meet written

specifications

• Fitness for use: a product can be used as it was intended

• The degree to which a set of inherent characteristics fulfill requirements.

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What is Quality? – Consumer Perspective

• Car Quality
• Ride, Reliability, Fit & Finish, Audio System ?

• Food Quality
• Taste, Smell, Color, Texture, Freshness ?

• Shoe Quality
• Fit, Stitching, Comfort, Wear ?

• Baby Furniture
• Safety, Reputable, Durability, Ease of Assembly ?

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 Quality Experts
Joseph Juran - applied the Pareto 80/20 principle to quality,
advocated top management involvement, defined quality as “fitness
for use.’’

• Juran wrote the Quality Control Handbook and ten steps to quality improvement

• First to think of “Cost of Poor Quality”

• Considered legal implications of quality

• Juran trilogy
• Quality Plan
• Quality Control
• Quality Improvement

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 Quality Experts

W. Edwards Deming - developed 14 Steps to Total Quality Management, advocated

the Plan-Do-Check-Act cycle (PDCA) as the basis for quality improvement.

Cost to correct problems rises the further the results are from
the target
• Suggested that as much as 85% of the Cost of Quality is a
management problem.
• Once the quality issue gets to the level of the worker, there is
little control.
• Workers need to be shown what is acceptable quality and made
to understand its importance.

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 Quality Experts

Phillip Crosby
Popularized the concept of cost of poor quality, advocated prevention over
inspection and “zero defects.” He believed that quality is “conformance to
requirements.’’

• Crosby wrote Quality is Free and suggested that organizations strive for
zero defects

Genichi Taguchi
Developed the Design of Experiments process. Believed that quality
should be designed in, not inspected in.

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 Malcolm Baldrige Award
• The Malcolm Baldrige National Quality Award originated in 1987 to
recognize companies that have achieved a level of world-class competition
through quality management

• Given by the President of the United States to U.S. businesses

• Up to 18 awards each year in different categories

• Manufacturing

• Service

• Small business

• Education

• Health care

• Non-profit
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 What Is Project Quality Management?

• Project quality management ensures that the project will satisfy the needs for
which it was undertaken

• Includes 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.

• “Project Quality Management processes include all 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.” - PMBOK4

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 Purpose of Project Quality Management

• To ensure that the Project will satisfy

the needs for which it was undertaken
with respect to:
• Scope/Performance

• Cost

• Time

• Ultimately, the customer decides if

Quality is Acceptable.

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 Common Understanding

Quality management should complement modern project management as they both

recognize the importance of:

• Customer satisfaction - Conformance to requirements, fitness for use.

• Prevention over inspection - Cost of preventing mistakes vs. cost of correcting.

• Management responsibility - Provide resources needed to succeed.

• Processes within phases - (plan-do-check-act cycle).

• Continuous Improvement (Kaizen) - small improvements to reduce costs and

ensure consistency, uses quality initiatives such as 6-sigma, TQM (Total Quality
Management).

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 PMI’s Quality Management Philosophy

• “Understanding, evaluating,
Customer defining, and managing
Satisfaction expectations so that the customer’s
requirements are met.”

Prevention • “The cost of preventing mistakes is

much less than the cost of
over correcting them, as is revealed by
Inspection inspection.”

Management Responsibility
“Success requires the participation of all members of the team, but it remains
the responsibility of management to provide the resources needed to succeed.”
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 Cost of Defects Over Project Life Cycle
”The cost of correcting a defect rises exponentially with the time taken to
identify the defect. Or more generally, bad news does not age well.“
Agile Elements Blog, 4/22/2008

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PMI’s Quality Management Philosophy
Continuous Improvement
“Plan-Do-Check-Act” (The PDCA Cycle)

Plan to bring Do changes

about on a small
improvement scale first

Act to get the Check to see if

greatest benefit changes are
from changes working

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 Cost of Quality (CoQ)

The cost of quality is both the cost of conformance

and the cost of nonconformance.
• Conformance means delivering products that meet requirements and
fitness for use.
• Cost of nonconformance means taking responsibility for failures or not
meeting quality expectations.

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 The Cost of Quality (CoQ)
Cost of Conformance Cost of Non-Conformance

Prevention Costs
(Build a quality product) Internal Failure Costs
•Training (Failures found by the project)
•Document Processes
•Equipment
< •Rework
•Scrap
•Time to do it right Should be
less than
External Failure Costs
Appraisal Costs
(Failures found by the customer)
(Assess the Quality) •Debugging effort/patches
•Testing •Field upgrades
•Destructive testing loss •Customer good will/confidence
•Inspection

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CoQ = Cpr + Capp + Cf
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 Cost Categories Related to Quality

• Prevention Cost: the cost of planning and executing a project so it is error-free or within
acceptable error range. It costs less to prevent during development than fix later in the life
cycle

• Appraisal Cost: the cost of evaluating processes and their outputs to ensure quality
• Measurement and Test Equipment Costs: capital cost of equipment used to perform prevention
and appraisal activities

• Failure Costs:
• Internal Failure Cost: cost incurred to correct an identified defect before the customer receives
the product.

• External failure cost: cost that relates to all errors not detected internally and have to be
corrected after customer receives the product.

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 Project Quality Management Includes:

• Quality Planning – a Planning process which focuses on defining quality for the project and
identifying how it will be achieved.

• Quality Assurance - an Executing process which focuses on the work of the project. Its
purpose is to ensure that the team is following the processes as planned to produce the
project’s deliverables.

• Quality Control – a Monitoring & Control process which examines the actual deliverables
produced by the project. Its purpose is to ensure the deliverables are correct and that they
met the planned level of quality.

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 Project Quality Management Summary

Information Technology Project

Management, Fifth Edition, Copyright
2007
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