7. Quality Management

7/21/2017
Quality Management
Saraca Solutions Pvt. Ltd.
1
Best PMP Exam Simulator

• includes the processes and 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
• Uses policies and procedures to implement within the project’s
context the organization’ s QMS
Project Quality Management
7/21/20172 www.Testudaan.com

Quality can be defined as :
“the degree to which the set of inherent characteristics fulfills requirements”- PMBOK® Guide ,
Fifth edition, ISO 9000
Other experts define quality based on:
Conformance to requirements - meeting written specifications
AND Fit for use - ensuring a product can be used as it was intended
Quality Defined

• Car Quality
 Ride, Reliability, Fit & Furnish,Audio System ?
• Food Quality
 Taste, Smell, Colour,Texture, Freshness ?
• Shoe Quality
 Fit, Stitching, Comfort,Wear?
• Baby Furniture
 Safety, Reputable, Durability, Easy toAssemble ?
Quality Examples

• Quality is the degree to which a set of inherent characteristics
fulfills requirement
• Grade as a design intent is a category assigned to deliverables having the same
functional use but different technical characteristics
 Low grade may not be a problem
Example :A camera with lots of functions is high grade and a camera which takes bad pictures is
low quality
The project manager and the project management team are responsible for managing
the trade-offs associated with delivering the required levels of both quality and grade
Quality v/s Grade

Project management team should determine the appropriate levels of accuracy and precision for
use in the quality management plan
• Precision is a measure of exactness
 Magnitude for each increment on the measurement’s number line is the interval that
determines the measurements precision
 Greater the number of increments, greater the precision
 Consistency of meeting requirements
• Accuracy is an assessment of correctness
 If the measured value of an item is very close to the true value of the characteristic being
measured, the measurement is more accurate
Precision v/s Accuracy

• Compatibility with ISO Quality Standards should be a major consideration:
 Minimize variation
 Deliver results that meet requirements
• To that end, PMI places emphasis on:
 Customer Satisfaction (meeting customer’s requirements)
 Prevention over Inspection (doing it right first time)
 Continuous Improvement (PDCA)
 Management Responsibility (driven by management by providing right resources)
 Cost of Quality (COQ - conformance cost + non-conformance cost)
ISO Quality Standards

• Process of (a) identifying quality requirements and/or standards for the project and its
deliverables and (b) documenting how the project will demonstrate compliance with relevant
quality requirements and/or standards
8.1 Plan Quality Management

8.1 Plan Quality Management

Benefit/Cost Analysis
• A Cost-BenefitAnalysis should be applied to every quality activity
• Compares the cost of the quality activity to the expected benefit
• The golden rule associated with Cost-BenefitAnalysis is :
‘All benefits of quality activities must outweigh the costs’
• Such benefits might include less rework, lower overall costs, higher productivity, increased
customer satisfaction and increased profitability
Cost of Quality ( COQ)
• Conformance Costs - Costs incurred during the project in either (a) appraising the deliverable to
ensure compliance with requirements or (b) preventing non-compliance
• Non-Conformance Costs - Costs incurred during the project or after release of the deliverable
because it has failed to comply with requirements
Plan Quality Management (Tools &Techniques)

Cost of Quality - Examples
Conformance Costs
Appraisal Costs - Design/Build
-Tests
- Inspections
Prevention Costs -Assessment
-Training
- Documented Processes
- Equipment
-Time Required
during Project -ToAvoid Failure
Non - Conformance Costs
Internal Failure Costs -Team
- Rewark
- Scrap
External Failure Costs - Customer
- Liabilites
-Warranty work
- Lost business
During /After Project - Due to Failure

Seven Basic QualityTools

Cause and Effect Diagram:
• Also known as Ishikawa or fishbone diagram
• The problem statement placed at the head of the fishbone is used as a starting point to trace the
problem’s source back to its actionable root cause
• It proves useful in linking the undesirable effects seen as special
variation to the assignable cause upon which project teams should implement corrective actions to
eliminate the special variation detected in a control chart

Flowcharting :
• Also called process maps as they display the sequence of steps and the branching possibilities that
exist for a process that transforms one or more inputs into one or more outputs
• A flowchart is a graphical representation of a process
• Useful in understanding and estimating the cost of quality in a process
• Obtained by using the workflow branching logic to estimate EMV for the conformance and non-
conformance work required to deliver the expected conforming output

Example of Flowcharting

Checksheets :
• are also known as tally sheets
• may be used as a checklist when gathering data
• are used to organize facts to facilitate the effective collection of useful data about a potential quality
problem
• They are especially useful for gathering attributes data while performing inspections to identify
defects
Example : data about the frequencies or consequences of defects collected in checksheets are often
displayed using Pareto diagrams

Pareto chart – 80/20 Rule
• It is based on 80/20 rule : 20% of activities cause 80% of problems => a small no. of causes (20%)
create the majority of problems (80%)
• 80% of problems can be solved by curing 20% of the causes
• Pareto chart is a vertical bar chart that are used to identify the vital few resources that are
responsible for causing most of the problem’s effects
• Categories shown on the horizontal axis exist as a valid probability distribution that accounts for
the 100% of the possible observations
• The relative frequency of the each specified cause listed on the horizontal axis decrease in
magnitude. Data is arranged in order of
importance, most significant problem is listed first and other problems fall in descending order

Example of Pareto Chart

Histogram:
• It is a special form of bar chart and are used to describe the central tendency, dispersion and shape
of a statistical distribution
• Each column represents an attribute or characteristics of a problem or situation
• The height of each column represents the relative frequency of the characteristics
• Histogram helps identify the cause of the problem in a process by the shape and width of the
distribution
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
90,000
100,000
Jan Feb Mar Apr May
Widget and Sprocket Sales

Control Chart
• It determines whether or not a process is stable or has predictable performance
• Control limits are calculated by standard statistical calculations and principles to establish the natural
capability for a stable process
• PM and stakeholders will use control limits as the points at which corrective action will be taken to
prevent unnatural performance
• Control charts most frequently used to track repetitive activities required for producing
manufactured lots
• They are also used to monitor cost and schedule variances, volume and frequency of scope changes
and other management results to help determine if the process is in control

Example of Control Chart

• Corrective action maintains the natural stability of a stable, capable process
• The upper control limits and lower control limits are usually set at +/- 3 sigma (i.e.
standard deviation)
• Mean represent the average of control limits or specification limits
• Out of control -A process is considered out of control if:
 A data point falls out of control limits
 Breaks the rule of seven
• Rule of seven - Is a rule of thumb or heuristic which states that consecutive seven data points one
either side of the mean is considered out of control, even though the data points are within control
limits
Control Chart

Scatter Diagram
• Plot ordered pairs (X,Y)
• Sometimes called “Correlation Charts” in that they seek to explain a change in the dependent variable
Y, in relationship to a change observed in the corresponding independent variable X
• The direction of correlation may be proportional (positive correlation) inverse (negative Correlation)
or a pattern of correlation may not exist (zero correlation)
• If correlation can be established, a regression line can be
 calculated and used to estimate how a change to the
 independent variable will influence the value of the dependent
variable

70
75
80
85
90
95
100
760 780 800 820 840 860 880 900 920 940
SalesMadeintheMonth
Outbound Sales Calls in the Month
Relationship Between Outbound Sales Calls And Sales
Made
Example of Scatter Diagram

• It is a statistical method for identifying which factors may influence specific variables of a product or
process under development or in production
 May be used during Plan Quality Management process to determine the number and type of tests and their
impact on cost of quality
 Used to reduce the sensitivity of product performance to sources of variations caused by environmental or
manufacturing differences
• It provides a statistical framework for systematically changing all of the important factors
rather than changing factors one at a time
• The analysis of the experimental data helps to find out factors that influence the results,
reveals the presence of interactions & synergisms
e.g.Automotive designers use this technique to determine which combination of suspension and tires
will produce the most desirable ride characteristics at a reasonable cost
Design Of Experiments (DOE)
Plan Quality Management –T &T

Process Improvement Plan
• details the steps for analyzing processes that will facilitate the identification of waste and non-
value added activity which ultimately increases customer value
Quality Metrics
• It is an operational definition, describes in very specific terms, what something is and how QC process
will measure it
• Tolerance is the allowable variation to the metric
• Quality metrics are used in perform quality assurance and control quality processes
e.g. on-time performance, cost control, defect frequency, failure rate, availability, etc.
Plan Quality Management - Outputs

Quality assurance is the process of auditing (a) the quality requirements and (b) results from quality control
measurements to ensure that appropriate quality standards and operations definitions are met
8.2 Perform QualityAssurance

Quality management and control tools
Figure 8-10 Storyboard illustrating the seven quality management and control tools
Perform QualityAssurance –T &T

Affinity Diagram
Process Description Program Chart (PDPC)
• Similar to mind mapping techniques used to generate ideas that can be used to form organized
patterns of thought about a problem
• Used to understand a goal in relation to the steps for getting to the goal
• It is used as a tool for contingency planning
• It aids in anticipating intermediate steps that could derail the achievement of the goal
Interrelationship Diagraph
• An adaptation of relationship diagrams
• Provides a process for creative problem solving in moderately complex scenarios that possess
intertwined logical relationships for up to 50 relevant items

Tree diagrams
Prioritization Matrices
• Also known as systematic diagrams that may be used to represent decomposition hierarchies such as
WBS
• Identify the key issues and the suitable alternatives to be prioritized as a set of decisions for
implementation
• Criteria are prioritized and weighted before being applied to all available alternatives to obtain
mathematical score that ranks the options

Matrix diagrams
• Tool used to perform data analysis within the organizational structure created in the matrix. It seeks
to show the strength of relationship between factors , causes and objectives that exist between the
rows and columns that form the matrix
Activity network diagrams
• Called “Arrow Diagrams” in the past
• Include both the frequently usedActivity-on-Node (AON) format as well as the now seldom-used
Activity-on-Arrow (AOA) format
• Used with PERT, CPM, and PDM scheduling methodologies

Control quality is the process of monitoring and recording the results of executing the quality activities
to assess performance and recommend necessary changes
8.3 Control Quality

• are results of‘Control Quality’ process activities
• should be captured in the format (i.e. Quality Metrics) that was specified through the
‘Plan Quality Management’ process
• are used to analyze and evaluate the quality of the processes of the project against the
standards of the performing organization or the requirements specified
• can also compare the processes used to create the measurements and validate actual
measurements to determine their level of correctness
Quality control measurements
Control Quality – Output

Quality Assurance
• Process related
• Proactive
• Audit
• Prevention
• Provides confidence that the
stakeholder’s requirements
will be met
Quality Control
• Product related
• Reactive
• Check
• Inspection
• Formally demonstrates that the
sponsor and/or customer’s
acceptance criteria have been
met
Control Quality – Output

7/21/2017
Thank you
Saraca Solutions Pvt. Ltd.
36 www.Testudaan.com

7. Quality Management

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7. Quality Management