Description of the Quality knowledge area-PMBok 4th Edition, Quality Concepts and tools

1. Quality Management
Chapter 8 PMBok
Instructor: Aldo Arecco, MIBA, PMP

2. QUALITY SPECIFICATIONS

3. Project Quality Management
The processes and activities of the performing
organization that determines quality policies,
objectives and responsabilities so that the
project will satisfy the needs for which it was
undertaken.

4. Quality Managment
• PMbOK Processes
• Important Quality Terms

5. 8. Project Quality Management
Monitoring &
Controlling Processes
Planning
Processes
Enter phase/ Initiating Closing Exit phase/
Start project Processes Processes End project
Executing
Processes
Knowledge Process
Area Initiating Planning Executing Monitoring & Contol Closing
Perform Quality - Perform Quality -
Cost Quality Planning
Assurance Control

6. Quality Concepts
• Quality vs. Grade
▫ Quality: the degree to which a set of inherent characteristics fulfill
requirements
▫ Quality level that fails to meet quality requirements is always a
PROBLEM
▫ Grade: a category assigned to product or service having the same
functional use but different technical characteristics
▫ Low grade may not be a problem

7. QUALITY CONCEPTS
• Six Sigma
• Prevention vs. Inspection
• Attribute Sampling vs Variable Sampling
• Special Causes vs Common Causes
• Tolerance vs. Control limits

8. Important Terms
• Mutual Exclusive: if two events cannot both occur in a single trial
• Probability: something will occur
• Normal Distribution: common probability density distribution chart
• Statistical independence: the probability of one event occurring does not
affect the probability of another event occurring
• Standard deviation (or Sigma): how far you are from the mean
• 3 or 6 sigma
▫ Represent the level of quality has decided to try to achieve
▫ 6σ is higher quality standard than 3σ
▫ Used to calculate the upper and lower control limits in a control chart
Percentage of occurrences
Number of σ between two control limits
1 68.26%
2 95.64%
3 99.73%
6 99.99985%

9. Quality Management: Important points
• Customer satisfaction
• Conformance to requirement
• Fitness for use: product/service produced must satisfy real needs
• Prevention over inspection
• Cost of preventing mistakes < cost of correcting
• Continuous improvement (Kaizen)
• Based on PDCA cycle
• Using quality improvement initiatives e.g. TQM, 6 sigma
• Using process improvement models e.g. OPM3, CMMI, Malcolm Baldrige
• Management responsibility
• To provide the resource needed to succeed

10. Quality Concepts
• Gold Plating: giving the customer extras
▫ This practice is not recommended
• Marginal Analysis: looking for the point where..
benefits/revenue to be received from improving quality EQUALS
the incremental cost to achieve that quality
• Just in Time (JIT): just when they are needed or just before they
are needed.
▫ It forces attention on quality practices.
• Total Quality Management (TQM)
▫ Company & their employees focus on finding ways to continuous
improve the quality of their business practices & products.

11. 8.1 Plan Quality
• The process of identifying requirement and/or standards for the
project and product and documenting how the project will
demonstrate compliance.
▫ What is quality? How will we ensure it?
Tools &
Inputs Outputs
Techniques
1. Scope baseline 1. Cost benefit analysis 1. Quality management
2. Stakeholder register 2. Cost of Quality (CoQ) plan
3. Cost performance 3. Control charts 2. Quality metrics
baseline 4. Benchmarking 3. Quality checklists
4. Schedule baseline 5. Design of experiments 4. Process improvement
5. Risk register 6. Statistical sampling plan
6. Enterprise 7. Flowcharting 5. Project document
environmental factors updates
8. Proprietary quality
7. Organizational process management
assets methodologies
9. Additional quality
planning tools

12. Quality Planning Techniques
• Cost benefit analysis
▫ Weight the benefits versus the cost of meeting quality requirements
• Design of Experiments (DOE)
▫ Use experimentation to statistically determine what variable will improve
quality
▫ Systematically changing all of the important factors, rather than changing
the factors one at a time
• Statistical sampling
▫ We need it since studying entire population would take too long, too much
cost, be too destructive
• Flow charting
▫ Use to see a process or system flows and find potential quality problem

13. Cost of Quality
• Cost of quality (CoQ)
▫ Looking at what the cost of conformance and
nonconformance to quality and creatingless then..
.. should be an appropriate
balance
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Image Source: PMBOK Guide 4nd Edition. PMI © 2008

14. Cuanto cuesta la calidad?
• Costos de Conformidad

15. Cuanto cuesta la Calidad?
• Costos de No Conformidad

16. Control charts
Rule of seven (non random data points)
Out of control
Assignable/special cause Normal and expected variation
Upper control limit Usually 3 or 6 sigma
Lower control limit
Normal distribution curve
Out of control Specification limit: is
Assignable/special cause point determines by
customer, not calculated
based on control chart

17. Output
• Quality Management Plan
▫ Contains:
 Project management method
Quality metrics is input for
 Role and responsibility in managing quality • Quality Assurance AND
 Deliverable measurement • Quality Control
 Standard for monitoring & control purpose
 Process review Quality checklist is input for
• Quality Control ONLY
 Major check points
 Inspection & acceptance criteria
• Quality metrics
▫ An operational that describes how quality control process will measure it.
▫ What are things that important to measure and decide what measurement is acceptable
• Quality checklists
▫ A list of items to inspect, step to be performed and note if any defects found

18. 8.2 Perform Quality Assurance
• The process of auditing the quality requirement and the
result of quality control measurements to ensure appropriate
quality standards and operational definitions are used.
Tools &
Inputs Outputs
Techniques
1. Project management 1. Plan quality and 1. Organizational process
plan Perform Quality Control updates
2. Quality metrics tools & techniques 2. Change requests
3. Work performance 2. Quality audits 3. Project management
information 3. Process analysis plan updates
4. Quality control 4. Project document
measurement updates

19. Quality Assurance
Are we using the standard?
Can we improve the standard?
• Quality Audits
▫ To see if you are complying with company policies, standards &
procedures
▫ Determine whether they are used efficiently & effectively
▫ Identify all the good practices being implemented
▫ Identify all the gaps/shortcomings
▫ Look for new lesson learned & good practices
• Process Analysis
▫ Includes root cause analysis

20. 8.3 Perform Quality Control
• The process of monitoring and recording results of
executing the quality activities to assess performance
andInputs
recommend necessary changes.
Tools &
Outputs
Techniques
1. Project management 1. Cause and effect 1. Quality control
plan diagrams measurements
2. Quality metrics 2. Control charts 2. Validated changes
3. Quality checklist 3. Flowcharting 3. Validated deliverables
4. Work performance 4. Histogram 4. Organizational process
measurements 5. Pareto chart updates
5. Approved change 6. Run chart 5. Change requests
requests 6. Project management
7. Scatter diagram
6. Deliverables
8. Statistical sampling
plan updates
7. Organizational process 7. Project document
9. Inspection
assets updates
10.Approved change
request s reviews

21. Quality Control
• Cause and Effect Diagram (Ishikawa Diagram or Fishbone
Diagram)
▫ Helps stimulate thinking, organize thoughts, and generate discussion
▫ Can be use to explore the factors that will result in a desire future outcome
• Histogram
▫ Showing how often a particular problem/situation occurred
• Pareto Chart/Diagram (80/20 principle)
▫ Histogram ordered by frequency of occurrence which used to focus attention on the most
critical issues
▫ 80% of the problems are due to 20% of the causes
• Run Chart
▫ To look at history and see a pattern of variation
• Scatter Diagram  Regression analysis

22. Quality Control vs Quality Assurance
• Cuando los miembros del equipo que presenten
sus informes sobre la situación a usted como jefe
de proyecto, evaluar la información y verificar su
exactitud antes de incluirlo en su informe global
de los resultados del proyecto. El acto de la
validación de la información sería considerada
como…….

23. Quality Control vs Quality Assurance
• Al compilar toda la información del proyecto en
el informe de ejecución del proyecto, evaluar los
resultados actuales del proyecto contra el plan
de gestión de proyectos, bases de referencia y
objetivos. La evaluación de las desviaciones
entre el plan y los datos reales se consideraría
…………... Usted está determinando la necesidad
de cualquier proceso o cambios en los
procedimientos basados ​en las diferencias entre
los requisitos documentados y los resultados
reales del proyecto.

25. HISTOGRAMA VS DIAGRAMA DE PARETO

26. Run Chart vs Graphic Chart

27. Costs of Conformance vs Costs of Non
Conformance
• Cost of Conformance
• The costs incurred while building in, or ensuring, quality are called the
costs of conformance.
• Costs of conformance can include activities such as process documentation,
training, inspections, and audits. This is money spent to avoid failures.
• These activities each consume resource hours and thus need to be included
in your project schedule, resource assignments, and cost estimates.
• Cost of Non-Conformance
• However, if there is a choice made not to conduct quality activities, there is
a potential for costs associated with any resulting problems. These costs are
referred to as the costs of non-conformance. This is money spent
because of failures.
• Costs of non-conformance can include things such as payments made out
on warranties, re-work or scrap, and/or damage to reputation.
• It is easy to see that there is a potential correlation between the amount of
money spent on conformance versus the cost implications of non-
conformance.