CPM CPM - - 100: Principles of Project 100: Principles of ...

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CPM CPM - - 100: Principles of Project 100: Principles of ...

  1. 1. CPM -100: Principles of Project Management Lesson C: Quality Management Presented by Jim Lightfoot lightfoj@erols.com Ph: 301-932-9004 Presented at the PMI-CPM 2002 Fall Conference Prepared by the Washington, D.C. Chapter of PMI Presenter: James E. Lightfoot PMP 11
  2. 2. Quality Management Review Part I: Quality Management 1. Quality Planning: inputs, tools/techniques, outputs 2. Quality Assurance inputs, tools/techniques, outputs 3. Quality Control inputs, tools/techniques, outputs Part II: Other Sources Presenter: James E. Lightfoot PMP 1
  3. 3. Part I: Quality Management Review Presenter: James E. Lightfoot PMP 1
  4. 4. Quality Management • Project Quality Management includes the processes required to ensure that the project will satisfy the needs for which it was undertaken. It includes “all activities of the overall management function that determine the quality policy, objectives, and responsibilities, and implements them by means such as quality planning, quality control, quality assurance, and quality improvement, within the quality system” 1 1. International Organization for Standardization. 1993. Quality—Vocabulary (Draft International Standard 8402). Geneva, Switzerland: ISO Press. Presenter: James E. Lightfoot PMP 1
  5. 5. Definitions • Quality is: – ♦ The totality of characteristics of an entity which bear on its ability to satisfy stated or implied needs. 2 – ♦ Conformance to requirements and fitness for use.3 (The project must produce as proposed and satisfy a real need.) • Quality is not: – Excellence, luxury, prestige, or grade 2. International Organization for Standardization. 1993. Quality—Vocabulary (Draft International Standard 8402). Geneva, Switzerland: ISO Press. 3. PMBOK Presenter: James E. Lightfoot PMP 1
  6. 6. Other Definitions of Quality • A product or service's nature or features that reflect capacity to satisfy express or implied statements of need (Deming) • Conformance to requirements (Crosby) • Fitness for purpose or use (Juran) • Product and service characteristics as offered by design, marketing, manufacture, maintenance and service that meet customer expectations (Feigenbaum) Presenter: James E. Lightfoot PMP 1
  7. 7. Quality/ PM Complements • Customer Satisfaction • Prevention Over Inspection • Management Responsibility • Processes Within Phases Presenter: James E. Lightfoot PMP 1
  8. 8. COMPATIBILITY • The basic approach of PMI to quality management is intended to be compatible with the International Organization for Standardization (ISO) as detailed in the ISO series of standards and guidelines. The PMI approach is also compatible with proprietary approaches to quality management such as those recommended by Deming, Juran, Crosby, et al, and non-proprietary approaches such as TQM. Presenter: James E. Lightfoot PMP 1
  9. 9. Quality Management Philosophies Deming Juran Crosby PMI Definition Conform to Fitness for use Conform to Conform to Specs Requirements Requirements System Prevent Prevent Prevent Prevent Standard Minimize cost Minimize cost Zero Defect Zero Defect of QM of QM Measure Direct Cost of Quality Cost of Non Cost of Non Measure Conformance Conformance Manager Leadership Leadership Leadership Leadership Participation Participation Participation Participation Role Worker Maintenance Moderate Moderate High Level Improvement Involvement Involvement Involvement role Presenter: James E. Lightfoot PMP 1
  10. 10. Philosophical Similarities • Management Support I Top management support and commitment are essential. I Most problems associated with quality can be attributed to management policy, action or inaction I Implementation is applicable to any organization I Effective communication and teamwork at all levels are essential. Presenter: James E. Lightfoot PMP 1
  11. 11. Philosophical Similarities (Cont.) • Measurement I Measurement is critical. I Improvements are not viewed in terms of final products Presenter: James E. Lightfoot PMP 1
  12. 12. Philosophical Similarities (Cont.) • System and Standard I Zero defect / Post-production inspection needs to be minimized. I Education and training must be continuous. I Managers need to provide workers with the means to do a good job.. I There are no shortcuts to quality The pursuit of quality must be a continuous effort. I Suppliers must be involved in the quality effort. Presenter: James E. Lightfoot PMP 1
  13. 13. Guru Legacies • Deming: Plan-Do-Check-Act (PDCA) and the Japanese “Deming Award”. • Crosby: “Quality is Free” & Zero Defects. • Juran: “The Quality Trilogy” of Planning, Control and Improvements. • Feigenbaum: “The Cost of Non- Conformance” Presenter: James E. Lightfoot PMP 1
  14. 14. How Much Quality is Enough? • Ideally, the objective is to manufacture parts identical to each other. However, there are conditions that create uncontrollable variances. • Unit-to-unit differences usually follow a normal distribution called a Bell Curve. • The standard deviation (Sigma) is a measure of variance. As the value of Sigma decreases, variance is reduced. Presenter: James E. Lightfoot PMP 1
  15. 15. How Much Quality is Enough? ✦ Traditionally, a process was considered satisfactory if it was within a 3 Sigma capability. Upper limit at 3 Sigma to the right of the mean and the lower limit at 3 Sigma to the left of the mean. ✦ This represented 99.73 of the total area under the curve that represented the total population of products produced. Presenter: James E. Lightfoot PMP 1
  16. 16. Normal Curve Distribution One Sigma Two Sigma Three Sigma “ Presenter: James E. Lightfoot PMP 1
  17. 17. How Much Quality is Enough? ✦ What would you get if 99.9% was good enough? ✦ 20,000 incorrect prescriptions per year. ✦ 70 incorrect surgical operations per day. ✦ 16,000 pieces of mail lost each hour. ✦ 10 commercial airline crashes per day. ✦ 22,000 checks deducted from the wrong bank account each hour. ✦ 86 seconds without electrical power daily. Presenter: James E. Lightfoot PMP 1
  18. 18. How Much Quality is Enough? ✦ Today, the Traditional 3 Sigma process capability is not always good enough. ✦ Motorola began a “new quality control standard”, i.e. the 6 Sigma process capability with variances so small that there will only be 0.002 defects outside the control limits for every million units produced. The elusive “Zero Defects” goal is continually pursued. Presenter: James E. Lightfoot PMP 1
  19. 19. The 5 PMI Process Groups Where does Quality fit in? Presenter: James E. Lightfoot PMP 1
  20. 20. PMI Process Groups (Flow) Initiating Planning Processes Processes 8.1 QP Controlling Executing Processes 8.3 QC Processes 8.2 QA Closing Processes Presenter: James E. Lightfoot PMP 1
  21. 21. Quality Processes • Quality Planning – Plan • Quality Assurance – Do • Quality Control – Check Presenter: James E. Lightfoot PMP 1
  22. 22. PMI Project Planning Processes Presenter: James E. Lightfoot PMP 1
  23. 23. Planning Processes CORE PROCESSES 6.2 Activity Sequencing 6.4 Schedule 5.2 Scope Development 6.1 Activity Planning Definition 6.3 Activity Duration Est. 7.3 Cost Budgeting 5.3 Scope 7.1 Resource Definition Planning 7.2 Cost 4.1 Project Plan Estimating Development FACILITATING PROCESSES 8.1 Quality 10.1 Communications 11.1 Risk 11.2 Risk 11.3 Risk Response Planning Planning Identification Quantification Development 9.1 Organizational 9.2 Staff 12.1 Procurement 12.2 Solicitation Acquisition Planning Planning Planning Presenter: James E. Lightfoot PMP 1
  24. 24. Planning Process Flow Chart 6.2 Activity Sequencing 6.4 Schedule 5.2 Scope Development 6.1 Activity Planning Definition 6.3 Activity Duration Est. 7.3 Cost Budgeting 5.3 Scope 7.1 Resource Definition Planning 7.2 Cost Estimating 4.1 Project Plan Development FACILITATING PROCESSES h Shows the steps of a process. h Shows precedencies and dependencies between activities. Presenter: James E. Lightfoot PMP 1
  25. 25. Quality Planning (8.1) • Quality Planning (8.1) - identifying which quality standards are relevant to the project and determining how to satisfy them. Presenter: James E. Lightfoot PMP 1
  26. 26. Quality Planning Inputs Presenter: James E. Lightfoot PMP 1
  27. 27. Quality Planning - Inputs • Company Quality Policy: overall intentions and directions with regard to quality. • Scope statement: deliverables and project objectives that define stakeholder requirements. • Product description: technical requirement and other concerns that may affect quality planning. • Standards and Regulations: as they apply. • Other Process Outputs: inputs from other knowledge areas including procurement planning, risk planning, etc. Presenter: James E. Lightfoot PMP 1
  28. 28. Quality Management Framework - Key Concepts • Definition of Quality: I Conformance to requirements / specifications • Responsibility (Everybody’s) I Management & Line Organization I Team & individual for the work at hand. • Ownership I Project Manager - the ultimate owner! Presenter: James E. Lightfoot PMP 1
  29. 29. Customer Expectations (“ilities”) • Producibility The ability to produce a product with available technology, at a cost compatible with market expectations • Usability The product is fit to perform the expected purpose for which it was designed • Reliability Probability that the product will perform its required functions under stated conditions for a specified length of time • Availability Probability that the product will perform under given conditions when called on Presenter: James E. Lightfoot PMP 1
  30. 30. Customer Expectations (“ilities”) • Maintainability Ability of a unit to be restored to a specified state within a given period of time • Flexibility Ability of a product to be used for different purposes, at different capacities and under different conditions • Acceptability Degree of conflict between the characteristics of a product and the prevailing value system of society • Operability Degree to which a product can be safely and easily operated Presenter: James E. Lightfoot PMP 1
  31. 31. Quality Team Member Actions • Customers - Set the requirement • Senior Management - Sets the tone • Project Manager and Functional Managers - Select & implement quality requirements • Quality Staff - Monitor quality compliance • Suppliers / Vendors - Meet the specified quality standards • Project Staff - Provide quality at the source Presenter: James E. Lightfoot PMP 1
  32. 32. Quality Planning Tools and Techniques Presenter: James E. Lightfoot PMP 1
  33. 33. Quality Planning - Tools & Techniques • 1. Benefit/cost analysis where quality is concerned: – Benefit: less rework, lower final costs, and in-creased stakeholder satisfaction. – Cost: expense associated with project quality management activities and initiatives. Key: benefits must outweigh costs Presenter: James E. Lightfoot PMP 1
  34. 34. Cost Of Quality ✦ Cost of Quality includes the cost of planning, quality assurance, quality control, rework/waste and warranty. ✦ Types of Quality Costs: – Internal - defect exists in the product prior to shipment. – External - defect exists in the product after shipment. – Appraisal - cost incurred to determine the condition of the product. – Prevention - costs incurred to reduce failure and appraisal cost. Presenter: James E. Lightfoot PMP 1
  35. 35. Cost of Quality Conformance Non-Conformance ✦ Planning ✦ Scrap ✦ Training and ✦ Rework indoctrination ✦ Material cost (additional) ✦ Product Design/Validation ✦ Warranty repairs ✦ Process Validation ✦ Complaint handling ✦ Test and Evaluation ✦ Liability Judgments ✦ Quality Audits ✦ Product recall ✦ Maintenance/Calibration ✦ Field Service ✦ Field Testing ✦ Expediting ✦ Process Corrective Actions Presenter: James E. Lightfoot PMP 1
  36. 36. Quality Planning - Tools & Techniques • 2. Benchmarking Objectives: – Comparing actual or planned project – practices to those of other projects or companies. – Generating ideas for improvements. – Providing a standard by which to measure performance. Presenter: James E. Lightfoot PMP 1
  37. 37. Quality Planning - Tools & Techniques • 3. Flowcharting – Any diagram which shows how various elements of a system relate: • System or Process flow charts showing interfaces and how elements relate. • Cause-and-effect diagrams (also called Ishikawa diagrams or fishbone diagrams) Presenter: James E. Lightfoot PMP 1
  38. 38. Cause and Effect Diagram (Fish Bone or Ishikawa Flow Chart) Cause Effect Time Machine Method Material Major Defect Energy Measure People Environ. ✦ Identify major and minor causes for the defect ✦ Classify in related groups ✦ Visualize the group with the most causes Presenter: James E. Lightfoot PMP 1
  39. 39. Quality Planning - Tools & Techniques • 4. Design of experiments – An analytical technique which helps identify which variable has the most influence on the overall outcome. Used for determining: • Product improvements such as selecting the best combination of parts for a desired feature. • Project improvements such as cost and schedule trade-offs Presenter: James E. Lightfoot PMP 1
  40. 40. Quality Planning Outputs Presenter: James E. Lightfoot PMP 1
  41. 41. Quality Planning - Outputs • 1. Quality management plan – Describes how the management team will implement quality requirements for the project. • 2. Operational definitions: – They address the required quality control, quality assurance, and quality improvements for the project. They describe, in very specific terms, what something is, and how it is measured by the quality control process (metrics). Presenter: James E. Lightfoot PMP 1
  42. 42. Quality Planning - Outputs • 3. Checklists: – A structured tool, usually for a product or activity, and used to verify that a set of required steps have been performed. • 4. Inputs to other processes such as: – Special skill requirement. – Procurement quality requirements. – Reporting goals and thresholds. Presenter: James E. Lightfoot PMP 1
  43. 43. Quality Assurance (8.2) • Quality Assurance (8.2)— evaluating overall project performance on a regular basis to provide confidence that the project will satisfy the relevant quality standards. ( Performed throughout the project and may be both an internal function and an external function). Presenter: James E. Lightfoot PMP 1
  44. 44. Quality Assurance Inputs Presenter: James E. Lightfoot PMP 1
  45. 45. Quality Assurance - Inputs • 1. Quality management plan. • 2. Results of quality control measurements, records of quality control activities that are in a format for comparison and analysis. • 3. Operational definitions. Presenter: James E. Lightfoot PMP 1
  46. 46. Quality Assurance Tools and Techniques Presenter: James E. Lightfoot PMP 1
  47. 47. Quality Assurance - Tools & Techniques • 1. Quality planning tools and techniques – Benefit/Cost analyses, benchmarking, flow charting and design of experiments. • 2. Quality audits – A structured review of activities on a continuous basis.. • scheduled or random. • by trained in-house auditors or third parties. Presenter: James E. Lightfoot PMP 1
  48. 48. Quality Assurance Outputs Presenter: James E. Lightfoot PMP 1
  49. 49. Quality Assurance - Output • Quality improvements including: – New process Initiatives. – Approval actions. – Facilitating changes: • Participation in change request activities. • Initiating corrective action initiatives. Presenter: James E. Lightfoot PMP 1
  50. 50. Quality Control (8.3) • Quality Control (8.3)— monitoring specific project results to determine compliance with relevant quality standards and identify ways to eliminate causes of unsatisfactory performance. Presenter: James E. Lightfoot PMP 1
  51. 51. Controlling Processes 10.3 Performance 4.3 Overall Reporting Change Control FACILITATING PROCESSES 5.5 Scope 6.5 Schedule 7.4 Cost Change Control Control Control 8.3 Quality 11.4 Risk Control Response Control Presenter: James E. Lightfoot PMP 1
  52. 52. Quality Control Inputs Presenter: James E. Lightfoot PMP 1
  53. 53. Quality Control - Inputs • 1. Quality management plan • 2. Operational definitions • 3. Checklists • 4. Work results and forecasts – Process results and product results. – Planned or expected results (from the project plan). – Other information about actual results. Presenter: James E. Lightfoot PMP 1
  54. 54. Quality Control Definitions • Attribute: A characteristic that reflects. conformance or non- conformance to specifications and tolerances. • Variable: a characteristic that can be measured in increments. • Probability: The chance that something will happen. – For attributes, it applies to “go” or “no- go”. – For Variables, it applies to the chance of something happening over the entire range of a distribution curve. Presenter: James E. Lightfoot PMP 1
  55. 55. Quality Control Tools and Techniques Presenter: James E. Lightfoot PMP 1
  56. 56. Quality Control - Tools & Techniques • 1. Inspection ( product reviews, audits, and walk-through surveys). – Activities undertaken to determine whether results of a single activity or the final product conform to requirements. •Measuring •Examining •Testing Presenter: James E. Lightfoot PMP 1
  57. 57. Quality Control - Tools & Techniques • 2. Control charts – A graphic display of results over time. •used to determine if the process is “in control” •used to collect data on process variance. •used to determine cost and schedule variance. Presenter: James E. Lightfoot PMP 1
  58. 58. Remember the Normal Distribution Curve? One Sigma Two Sigma Three Sigma “
  59. 59. Process Control Chart Usually, 3 sigma is set to define tolerance limits so that the control limit set by customer specifications are not exceeded. Process “A” Upper Control Limit 15 10 Upper Tolerance 5 Mean 0 -5 Lower Tolerance -10 Lower Control Limit -15 Time Presenter: James E. Lightfoot PMP 1
  60. 60. Process Control Charts • The Rule of Seven. Statistically, whenever there are seven consecutive process data points measured on either side of the mean, the process is going out of control. • A Process Capability Assessment will use control charts to determine whether a process can meet customer specifications. This is especially important during planning and cost estimating when customer requirements exceed normal plant process standards. Presenter: James E. Lightfoot PMP 1
  61. 61. Scatter Diagram Plot the results of two variables Show trends Show distribution around Central tendency Highlight Exceptions (out of tolerance condition) Presenter: James E. Lightfoot PMP 1
  62. 62. Quality Control - Tools & Techniques • 3. Pareto Diagram: •A histogram, ordered by frequency of occurrence (80/20 rule). •Rank ordering is used to focus corrective action on the most often occurring problem. •See page 105 in the PMBOK of example. Presenter: James E. Lightfoot PMP 1
  63. 63. Quality Control - Tools & Techniques • 4. Statistical Sampling Includes; – Attribute Sampling: Determining – the number of acceptable items in a sample of of products in a given lot and deciding whether to reject the entire lot. – Variable Sampling: Using control charts to measure variance in a process to determine the process capability, determine percent of non-conformance and make change decisions. Presenter: James E. Lightfoot PMP 1
  64. 64. Quality Control - Tools & Techniques • 4. Statistical sampling (Cont.) – Special vs Random Causes – Special --Unusual events – Random -- Normal process variation – Tolerances – Acceptance range (product is acceptable or not) – Control limits (process is in or out of control) Presenter: James E. Lightfoot PMP 1
  65. 65. Quality Control - Tools & Techniques • 5. Flow Charts – Help analyze how and/or where problems may occur; •process flow charts •procedural flow charts (step chart) – Help identify constraints. Presenter: James E. Lightfoot PMP 1
  66. 66. Quality Control Outputs Presenter: James E. Lightfoot PMP 1
  67. 67. Quality Control - Outputs • 1. Quality improvements • 2. Acceptance decisions • 3. Rework or scrap decisions • 4. Completed checklists • 5. Process adjustments Presenter: James E. Lightfoot PMP 1
  68. 68. Part II Other Sources Presenter: James E. Lightfoot PMP 1
  69. 69. Other Sources • Lew Ireland’s PMI text book on Quality. • Deming’s “Out of the Crisis” • Crosby’s “Quality is Free” • Juran’s “Handbook on Quality” • Kerzner’s “Project Management” Presenter: James E. Lightfoot PMP 1
  70. 70. Exam Pointers ✦Points applicable to the Quality area of the certification exam: ✦Definitions are important ✦Memorize the process charts ✦Memorize the control charts ✦Expect about 15 questions on this area Presenter: James E. Lightfoot PMP 1
  71. 71. Exam Pointers ✦Points applicable to all areas of the certification exam: 1. Definitions are PMI definitions! 2. Questions addressing “responsibility”are usually looking for the project manager. 3. The longest answer is often the correct answer. Presenter: James E. Lightfoot PMP 1
  72. 72. Certification Examination • Measures knowledge and understanding of the PMBOK. • 200 Questions (multiple choice) – Initiating (needs, charter, etc - 8) - 4% – Planning (scope, schedule, QP -74)-37% – Executing (teaming, QA, etc -48)- 24% – Control (cost, scope, risk, QC -56)- 28% – Closing (admin/contract closeout-14)- 7% Presenter: James E. Lightfoot PMP 1
  73. 73. Certification Examination • Includes situational questions: – What should be the first step ….? – What would be the best ….? – What should the Project Manager ….? • Includes several questions based on the same set of facts. • Includes questions that require under-standing of Context and Processes. Presenter: James E. Lightfoot PMP 1
  74. 74. Certification Examination • Don’t be intimidated by the exam. It is fair, regardless of the first-time failure rate. – PMI became the first certification department in the world to be granted an ISO 9001 and Q9001 certification. – Examination questions must meet the standards from the APA (Amer. Psychological Assn), EEOC, and the NOCA (National Organ. of Competency Assurance). – At least 30 PMPs review each question. Presenter: James E. Lightfoot PMP 1
  75. 75. Recent Quality Question Distribution • Initiating Process: none • Planning Process – Quality Planning: 4 questions • Executing Process – Quality Assurance: 6 questions • Controlling Process – Quality Control: 7 questions • Closing Process: none Presenter: James E. Lightfoot PMP 1

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