Project Quality

Management
 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.”
 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
• What is quality and how will we ensure it?
– Perform Quality Assurance
• Are we following the quality standards?
– Perform Quality Control
• Are we meeting the quality standards?

Plan Perform Perform

Quality Quality Quality
Assurance Control
 Chapter 8 - Project Quality
5
Management
 Plan Quality
Inputs Tools & Techniques Outputs
Scope Baseline Quality Management
 Cost-benefit analysis Plan
Stakeholder Register  Cost of quality
Quality Metrics
 Control charts
Cost Performance
Baseline  Benchmarking Quality Checklists

Schedule Baseline  Design of experiments

Process
 Statistical sampling Improvement Plan
Risk Register
 Flowcharting
Enterprise Project document
Environmental Factors  Proprietary quality updates
management methodologies
Organizational Process
Assets  Additional quality planning
tools

Plan Perform Perform

Quality Quality Quality
Assurance Control
 Plan Quality
• Cost of Quality – Evaluating Deming’s Costs of Quality
the cost of conformance
with the cost of Cost of Cost of Non
nonconformance to reach a Conformance Conformance
balance. Includes; Quality training Rework
– Prevention Costs
– Appraisal Costs Studies Scrap
– Failure Costs

Surveys Inventory Costs

Warranty Costs

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
Tools & Techniques
Outputs Organizational
Project Management Plan  Plan quality and perform Process Assets
Inputs Updates
quality control tools and
Quality Metrics
techniques
Change Requests
Work Performance  Quality audits
Information
 Process analysis Project Management
Plan Updates
Quality Control
Measurements
Project Document
Updates

Plan Perform Perform

Quality Quality Quality
Assurance Control
 Statistics Terms Review
• Mutually Exclusive – Two Normal Distribution
events that cannot both
occur in a single trial Remember:
+/- 1  = 68.26%
• Statistical Independence – +/- 2  = 95.46%
Probability of one event +/- 3  = 99.73%
+/- 6  = 99.99%
occurring does not affect
the probability of another
event occurring
• Probability – The likelihood
that something will occur
(usually expressed in
percent)
 Perform Quality Control
Inputs Tools & Techniques
Project Management
Plan  Cause and effect diagram Quality Control
Outputs Measurements
Quality Metrics  Control charts
Validated Changes
 Flowcharting
Quality Checklists Validated Deliverables
 Histogram
Organizational Process
Work Performance  Pareto Chart Assets Updates
Measurements  Run chart Change Requests
Approved Change  Scatter diagram Project Management
Requests
 Statistical sampling Plan Updates
Deliverables  Inspection Project Document
Updates
Organizational Process  Approved change requests
Assets review

Plan Perform Perform

Quality Quality Quality
Assurance Control
 Pareto Chart
• Graph of problem type vs. frequency
• 80/20 Rule – 80% of your problems will come from 20%
of your work!

Cumulative Percentage
Frequency

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

Specification Limit

(or Mean)

Specification Limit