Quality

c Go n Grow Business Consulting Inc.
© Eureka! Business Management Ltd 1
Quality in Projects
A Customer-focused
Approach

c Go n Grow Business Consulting Inc. 2
Agenda
 Quality Planning
Exercise 1
Exercise 2
 Quality Assurance
 Quality Control

Why Quality
 Fundamental to staying in business
 Protect the Brand
 Retain customers
 Maintain internal morale
 Increase unit profitability
 Promotes versatility

Continuous Improvement
Out of the Crisis by W. Edwards Deming ,1986.

Constancy of Purpose
 Long term vision
 Beyond current customer view
 Build for the future

Adopt a New Philosophy
 Quality ahead of financial returns
 Starts in the boardroom
 Clear definition
 Clear organisation
 Design a work process, test it then refine it

Cease Mass Inspection
 Too expensive to make, inspect, correct
and release
 Management has the responsibility to
Learn the process
Adjust it to eliminate defects
Reduce inspectors
 Move to statistical sampling

Differentiate Products
 Stop the price tag alone approach
 Minimise total cost by
Building long term relationships with
High quality suppliers
Build value – a joint effort

Improve Continuously
 Don’t manage the defects or outcomes
 Manage the system that produced the
defect

Train and Retrain
 Skills to perform the job
 Why it is important
 How it fits into the system
 Understand upstream and downstream
user needs
 You are your supplier’s customer

Improve Leadership
 Help people do a better job
 Help them be consistent
 Be a Visionary
 Ensure your managers know the system

Safe-fail Environments
 Provide a sense of security
 Learn from failure
 Embrace change
 Acknowledge uncertainty
 Stress community

Eliminate Inter-Departmental
Friction
 Interdependent NOT independent
 View the business as a whole
 Competition is overall improvement in
place of divisional ‘wins’

Eliminate Slogans
 Ask people to what they can do
 Provide support to do a better job
 Design the system to eliminate problems
 Exhortations will frustrate where the
system is not designed for quality

Performance Appraisals
 Eliminate numerical quotas
 Focus on well rather than many
 Reduce competition
 Substitute cooperation
 Design organisational rewards

Create Pride
 Celebrate success – customer feedback
 Show how contribution is significant
 Most valuable asset is people
Their skills
Teir ability to work together

Self-improvement
 Vigorous programs
Knowledge and skills in any area
 Steve Jobs: Connecting the dots, humility & death
Job focused
Personal development
 By learning more, do better

Do It
 Top management initiate actions
Through seminars
By teaching
Showing by example
 Put everyone to work to accomplish the
transformation

What is “Quality”
 The customer defines your quality standard
 Expectation = Fitness for Purpose
 A strategy to consistently meet requirements or
expectations
 A series of steps and activities that convert
inputs into outputs and deliver “value”
 Value = effectively satisfying customer needs
 Effectiveness = efficiency + flexibility

The Customer’s View
 Customers feel variation not averages
 Six Sigma is all about:
reducing variation in product or service quality
from the customer perspective

Quality Responsibility
 Management owns the responsibility:
As executives of the organisation
As directors of delivery and supporting
processes
Errors = 94% Management and processes,
6% worker fault
 Management have the authority and tools
to align resources to the customer needs

Quality Flows
 From identification of the project purpose
 Integral to scope and deliverable definition
 Impact on risk and mitigation strategies
 Execution (assurance) and control
(control) phases
 Project close – lessons learned folded
back into continuous improvement
process

Quality is When?
 At each project stage
 Metrics defined at project planning
 Where cost of failure is greater than
Cost of appraisal and control and
Cost of prevention
 As a compulsory project process
 Integral to the regular status report

Quality is Maintained
 Inspection steps throughout the planning,
execution and close project phases
 Determine special or common causes
 Problem solving teams – Ishikawa diagram:
People, Methods, Management, Technology,
Measurements & Environment.
 Change control
 Continuous improvement

Quality Planning
 Define Product Quality
 Attributes
 Functionality
 Usability
 Reliability
 Performance
 Measurements
 Plan Quality Processes
 Change Management
 Configuration Management
 Standards
 Procedures
 Testing Methods
 Tools

Define Attributes
 Who is the Customer?
 Common agreement of outcome
What the product will accomplish for the users
Clearly defined components
What each component does
How each component links the other

Who is the Customer?
 Owner or user
 Owner puts the money up
 User has significant influence on the
specification
 Use is daily operational mode
 Cost-effective
 Team buy-in
 Tripartite negotiations with PM facilitating

Acceptable Quality Level - AQL
 Acceptable Quality Level. Also referred to as Assured
Quality Level. The largest quantity of defectives in a
certain sample size that can make the lot definitely
acceptable; Customer will definitely prefer the zero
defect products or services and will ultimately establish
the acceptable level of quality. Competition however, will
'educate' the customer and establish the customer's
values. There is only one ideal acceptable quality level -
zero defects - all others are compromises based upon
acceptable business, financial and safety levels.

Stakeholder Analysis Chart
Key
Stakeholder
Strongly
Against
Having It
Happen
Moderately
Against
Havening It
Happen
Lets It
Happen
Helps It
Happen
Makes It
Happen
Robyn
o x
Rick
o x
Joanna
o x
Ruben
o x

Influence Chart
Key Stakeholder Type of Resistance Underlying Issue Strategy
Robyn
Rick
Joanna
Ruben
Technical
Political
Organisational
Individual
Feelings of inadequacy
with new technology
Loss of perceived power
Control
Emotional paralysis
Educate, involve in
learning and inform
Stress what is gained
through successful
solutions
Give control over
processes or give credit for
successes
Support and consult
without asking for
decisions

Define Functionality
 Cost of Quality
Specification
Duty cycle
 Fitness for purpose
 Conforming to the customer requirement

Define Usability
 Use in whose view
 Multiple perspectives
 Different outcomes for each perspective
 Back to the scope
 Negotiate a compromise
 Check on ‘fit-for-purpose’ and ‘cost of
quality’

Define Reliability
 Availability
 Expected duty cycle
 Expectation of errors
 Tolerance for errors
 Impact of errors
 Maintainability
 Difficult, complex
 Lagging maintenance reduces reliability and, in turn,
availability

Define Performance
 Standard a product is expected to deliver
 Link back into:
Fit for purpose
Reliability
Cost of quality
Scope – Common agreement of outcome

Performance Is..
Input
Suppliers
Effectiveness
Process
Your Efficiency
Output
Your Effectiveness
Develop key quality
measures
Cycle time
How well you are meeting
customer requirementsCost Structure
Value Added
Labour Applied

Define Measurements
 Measure performance
Not too many parameters (Analysis paralysis)
The ones that show up as a variance in the
customers eyes
The ones that increase cost
Those that have a significant impact where
performance fails or is sub standard

Measurement Tollgates
 Create a Data Collection plan of:
 What to measure
 Input = Supplier Effectiveness (1 to 2)
 Process = Your Efficiency (1 or 2)
 Output = Your Effectiveness (2 to 3)
 Type of measure: Not too much; not too little
 Type of data
 Discrete = on/off, good/bad
 Continuous = days, height, weight, length
 Operational definitions = common language: no ambiguity
 Target/Specifications: Target = finite; Specifications = limits up or down
 Data collection forms that define
 What a defect is
 Categories of defect
 Time frame to collect data
 Grid of data collection

Definition Reality
Time
Broadened Scope
Increased Quality
to Match New Scope
Original Scope
Original Quality
Larger
Team Increased
Cost
People Cost

Threat / Opportunity Matrix
Threats
Long Term Changes require a new
skill-set
Lay-off’s through not
meeting business goals
Customers regognise
and reward
organisation for
exceptional work
Short Term
Increased negative
publicity over internal
actions
Profitability targets met
Short Term Long Term
Opportunities

Solution Payoff Matrix
Ease to
Implement
Hard Install SAP as the ‘Best
Practice’ information
system
Install new fab lines
without disrupting
existing production
Easy
Change web site to
provide ‘click-through’
to order entry
Eliminate 60% of non-
value add activities in
the set-up process
Low High
Business Impact

Solution Vision Statement
Solution Action Result Behaviour
Modify patient
registration form
Next Solution
Reduce lines to 5 from
14
Actions
Less time registering
Results
 Greater personal
attention to the customer
 More discretionary time
to manage the process
 More flexible behaviour

Plan Change Management
Processes
 You don’t get it right first time
 As you build, you learn of greater possibilities
 Involve people in setting the priority changes –
what’s changed
 Assess the benefits against the cost
 Compromise on rigidity vs. fluidity
 Publish the change process widely and often

Plan Configuration Management
Processes
 Identify errors as early as possible in the
lifecycle
 Costs of change are highly geared the further
you are in the process
 Spend time at the front doing lots of ‘what-if’
scenarios
 Start the Quality Control Walkthroughs right at
the beginning of the project lifecycle

Impact on the User - Historical
Traditional Project Transition
Transition Point
Degree of Change
Time
Learning Curve
Turns Positive
T1 T3
Project Team Rolls Off
Operations Takes Over
T2
The Valley of Despair

Current View
Early Project Transition
Transition Starts
Degree of Change
Time
Learning Curve
Turns Positive
T1 T2
Transition Point
Project Team Rolls Off
Operations Takes Over
Joint Team Effort
Transition Gradient
T3
Project Team
Operations Team
a
b
c

Cause & Effect Diagram
Why are there so many
'waits' in this process
Machine Methods
People Materials
Measurement
Mother Nature
Numbers in
place of
minutes
Traffic conflict
Tempramental
Thermometers
Push
production
Electrical
'brown-outs'
Inferior
materials
Cost
pressures
Layout
Training
Staff turnover
Power lines
down

Plan Procedures
 Design or apply processes to
 Monitor quality
 Trigger changes
 Align project processes to internal processes
 Bring your internal customers into the team as
experts
 Publish procedures widely and show respect for
the process – walk the talk.

Procedures - Actions
 Communication
 Build awareness of demand for quality & opportunity for improvement
 Set goals for improvement
 Report progress
 Celebrate success and learning from failure
 Organise
 Make the process acceptable to the people
 Take advice: use cross-functional teams
 Train & retrain
 Don’t apply yesterday’s tools to today’s problems
 Keep score
 Compare actual outcome to baseline

Plan Quality Management Tools
 Tools include
Critical to quality trees
Process maps
Cause and effect analysis
Pareto diagrams and histograms
Affinity diagrams
Run and control charts

10 Technical Tools
1. Critical to Quality Tree
2. Process Map
3. Histogram
4. Pareto Chart
5. Process Summary Worksheet
6. Cause-Effect Diagram
7. Scatter Diagram
8. Affinity Diagram
9. Run Chart
10. Control Chart

10 Soft Tools
 Stakeholder Analysis Chart
 Planning for Influence Table
 Threat / Opportunity Matrix
 Pay-off Matrix
 Solution Vision Statement
 Team Meeting Agenda
 Ground Rules
 Parking Lot
 Plus / Delta Meeting Review
 Activity Reports

Balance People with Tools
 Six Sigma is tool-heavy
 Statistics
 Processes
 Solutions
 Six Sigma requires
changed behaviours
 Managers
 Supervisors
 Line workers
 Successful Six Sigma
projects require:
 Intense strategic
communication
 Bringing people along as
part of the change process
 Training and retraining
 Providing safe-fail
environments
 Celebrating failures and
successes

Critical to Quality Tree
Registration
Courtesy
Timeliness
Accuracy
General Need Behaviour Required
Type of Room
Hospital Ward

The Critical To Quality Tree
 Start with the Customer needs
 State the need as a noun with no adjective
 Move left to right until ‘how to measure’ is
described – not the unit of measure
 Once started, a branch should define
greater detail – not a new requirement

Your Turn, Now
 For the next 45 minutes:
Get into your teams and take a whiteboard
Start defining and planning your quality
approach to your Archer solution
 At the end of 30 minutes, report out the full
class on your key activities

A Little Bit of Six Sigma
 The Six Sigma History
Motorola under Bob Galvin
 Acted on processes producing most variance
Allied Signal under Larry Bossidy
 Understood customer measures of effectiveness
General Electric under Jack Welch
 Pursued with passion

Philosophy of Six Sigma
 Management responsible for work gets
done
 Customers see business as a series of
processes
 Strategic business objectives are:
Revenue less Costs = Profit Margin
Growth: continued customer satisfaction
Sustainability via employee satisfaction

Standard Deviation

Partial Process Sigma Table
Long Term Yield Process Sigma Defects per
1,000,000
99.99966 6 3.4
99.98 5 233
99.4 4 6,210
93.3 3 66,807
84.1 2.5 158,655
69.1 2 308,538
50.0 1.5 500,000

Σ Calculation
 Unit = food order
 Defects = too early or too late (1), inaccurate (1), not
fresh (1)
 Opportunities = 3
 Examine 50 orders: result = early or late (13), inaccurate
(3), not fresh (0)
 Calculate: defects (16)/(units (50)x opportunities (3))x
1,000,000
 [16/(50x3)x1,000,000 = 106,667]
 Σ between 2.7 and 2.8

Process Frequency Distribution
X
X
X X
X X X x
X X X X X X
x x x x X x x
Previous
Day
12:00 to
2:00
2:01 to
4:00
4:01 to 6:00 6:01 to
8:00
8:01 to
10:00
Later Day

High-level DMAIC Methodology
Define
Measure
Analyse
Improve
Control
• Charter
• Customer needs, requirements
• High-level process map
•Data collection plan
•Data collection
implementation plans
•Data analysis
•Process analysis
•Root cause analysis
•Solution generation
•Solution selection
•Solution
implementation
•Control methods
•The response plan

The Process Map
 Map the representative process – not the best or
worst
 Capture steps as the actually occur – both easily
seen and invisible (waits or moves)
 Verify the map:
 Talk to people in the process
 Follow the process from beginning to end
 Use verbs or adjectives to describe steps
 Use nouns to describe output and input
 Now, do a ‘to be’ process map of what should be
happening.

Process Map – Five Categories
DMAIC Step Define Analyse Improve
Identity of suppliers
to the process
High level
Start the process of
measurement
Greater detail
Understand the
detail and validate
the measurements
Should be maps
Map the solution
and validate with
experiments
Inputs provided
Function of the
process
Out from the
process
Customers of the
process

Process Summary Worksheet
Process Step 1 2 3 4 5 6 Total
Minute
s
Percent
Time ( in minutes) 1 20 15 45 10 15 106 100.0
Value added x x 16 15.1
Non-value added x x x x 90 84.9
Moves 0 0
Delays x 45 42.5
Set-up 0 0
Internal failures x x 25 23.5
External failures x 20 18.9
Control / Inspection 0 0
Value-enabling 0 0

Plan Testing Methods
 Statistical sampling
 User engagement via test scripts
 Component testing
 Unit testing
 Batch testing
 System testing
 Consolidated testing
 Final user acceptance testing

Run Chart – The Foundation
Weight by Week
55
60
65
70
75
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
Kilo's
Kilo's

Your Turn, Again
 Get to your whiteboard space and:
Brainstorm some processes that fit your
Archer project approach
Develop a stakeholder map and strategies to
move the stakeholders to a positive point
Brainstorm and justify your testing methods
 Take 45 minutes – no more!
 Report out to the full group

Quality Assurance
 Audit Processes
 Verify Quality of the System

Quality Assurance
 A planned and systematic set of activities to ensure that variances in
processes are clearly identified, assessed and improving defined processes
for fullfilling the requirements of customers and product or service makers.
A planned and systematic pattern of all actions necessary to provide
adequate confidence that the product optimally fulfils customer's
expectations.
A planned and systematic set of activities to ensure that requirements are
clearly established and the defined process complies to these requirements.
"Work done to ensure that Quality is built into work products, rather than
Defects." This is by (a) identifying what "quality" means in context; (b)
specifying methods by which its presence can be ensured; and (c)
specifying ways in which it can be measured to ensure conformance (see
*Quality Control*, also *Quality*).

Quality Control – Assess Quality
 Verify and Validate Products
Walkthrough reviews
Technical reviews
Phase reviews
 Perform Acceptance Testing
Solution Acceptance
 Review Quality Standards

To Assess Quality
 Clear specifications: don’t change the agreed
definitions – modified by change processes
 Use defined standards from an agreed baseline
 Historical experience
 Qualified resources
 Impartial design reviews

Quality Control
 Also called statistical quality control. The managerial process during which
actual process performance is evaluated and actions are taken on unusual
performance.
It is a process to ensure whether a product meets predefined standards and
requisite action taken if the standards are not met.
------------
Quality Control measures both products and processes for conformance to
quality requirements (including both the specific requirements prescribed by
the product specification, and the more general requirements prescribed by
*Quality Assurance*); identifies acceptable limits for significant *Quality
Attributes*; identifies whether products and processes fall within those limits
(conform to requirements) or fall outside them (exhibit defects); and reports
accordingly. Correction of product failures generally lies outside the ambit of
Quality Control; correction of process failures may or may not be included.

Run Chart – With Control Limits
Weight by Week
55
60
65
70
75
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
Kilo's
Kilo's
Upper Control Limit
Lower Control Limit
Trend

Run Chart: Expected Revised Control Limits
Weight by Week
55
60
65
70
75
80
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Weeks
Kilo's
Kilo's
Revised Upper Control Limit
Revised Lower Control Limit

Thank You for Your Participation
 Chris.Dennis@shaw.ca
 http://www.isixsigma.com/

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