Episode 24 : Project Quality Management Include the processes required to ensure that the project will satisfy the needs for which it was undertaken Include 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 assurance, quality control, and quality improvement, within the quality system

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SAJJAD KHUDHUR ABBAS
Chemical Engineering , Al-Muthanna University, Iraq
Oil & Gas Safety and Health Professional – OSHACADEMY
Trainer of Trainers (TOT) - Canadian Center of Human
Development
Episode 24 : Project
Quality Management

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Project Quality ManagementProject Quality Management

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IntroductionIntroduction
 Include the processes required to ensure that the project will
satisfy the needs for which it was undertaken
 Include 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 assurance, quality control, and quality improvement,
within the quality system

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What is Quality?What is Quality?
 The International Organization for Standardization (ISO) defines
quality as “the degree to which a set of inherent characteristics fulfils
requirements” (ISO9000:2000).
 Other experts define quality based on:
 Conformance to requirements: The project’s processes and products meet
written specifications.
 Fitness for use: A product can be used as it was intended.

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What Is Project Quality Management?What Is Project Quality Management?
 Project quality management ensures that the project will satisfy the
needs for which it was undertaken.
 Processes include:
 Quality planning: Identifying which quality standards are relevant to the project
and how to satisfy them.
 Quality assurance: Periodically evaluating overall project performance to ensure
the project will satisfy the relevant quality standards.
 Quality control: Monitoring specific project results to ensure that they comply
with the relevant quality standards.

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 Project quality management must address:
 Management of the project
 Product of the project
 Quality vs grade
 Grade – “a category or rank given to entities having the same
functional use but different technical characteristics”
 Software product:
 high quality (no obvious bugs, readable manual) but low grade (a limited number of
features
 Low quality (many bugs, poorly organized user documentation) and high grade
(numerous feature)

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Modern Quality Management PracticesModern Quality Management Practices
 Customer satisfaction –
 understanding, managing and influencing needs so that customer
expectation are met.
 Conformance to requirements
 Fitness for use
 Prevention over inspection
 Cost of preventing mistakes is always much less than the cost of
correcting them as revealed by inspection

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Modern Quality Management PracticesModern Quality Management Practices
 Management responsibility
 Success requires the participation of all members of the team,
 the responsibility of management to provide the resources needed to
succeed
 Processes within phases
 Plan-do-check-act cycle
 Quality improvement initiatives by the performing organization
(TQM, Continuous Improvement etc)

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Who’s Responsible for the QualityWho’s Responsible for the Quality
of Projects?of Projects?
 Project managers are ultimately responsible
for quality management on their projects.
 Several organizations and references can help
project managers and their teams understand
quality.
 International Organization for Standardization
(www.iso.org)
 IEEE (www.ieee.org)

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QUALITY PLANNINGQUALITY PLANNING
 Involves identifying which quality standards are relevant to
the project and determining how to satisfy them
 Should be performed regularly and in parallel with the other
project planning processes
 Implies the ability to anticipate situations and prepare actions
to bring about the desired outcome.
 Quality is planned in, not inspected in

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The processesThe processes
InputsInputs
1. Quality policy
2. Scope statement
3. Product
description
4. Standards and
regulations
5. Other process
outputs
1. Quality policy
2. Scope statement
3. Product
description
4. Standards and
regulations
5. Other process
outputs
Tools and TechniquesTools and Techniques
1. Benefit/cost analysis
2. Benchmarking
3. Flowcharting
4. Design of experiments
5. Cost of quality
1. Benefit/cost analysis
2. Benchmarking
3. Flowcharting
4. Design of experiments
5. Cost of quality
OutputsOutputs
1. Quality
management plan
2. Operational
definitions
3. Checklists
4. Inputs to other
processes
1. Quality
management plan
2. Operational
definitions
3. Checklists
4. Inputs to other
processes

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InputsInputs
 Quality Policy
 The overall intentions and direction of an organization with regard to quality, as
formally expressed by top management
 Project team can adopt the performing organization policy “as is” or develop a
policy for the project
 Scope statement
 Documents major project deliverables, as well as the project objectives that serve
to define important stakeholder requirements
 Product descriptions
 Contain details of technical issues and other concerns that may affect quality
planning

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 Standards and regulations
 Must consider any application area-specific standards or regulations
that may affect the project
 Other process outputs
 Processes in other knowledge areas may produce outputs that
should be considered as part of quality planning
 Eg in procurement planning may identify contractor quality
requirements that should be reflected in the overall quality
management plan

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Tools and TechniquesTools and Techniques
 Benefit/cost analysis
 Primary benefit of meeting quality requirements is less rework, which
means higher productivity, lower costs and increased stakeholders
satisfaction
 Primary cost is the expense associated with project quality
management activities
 Benchmarking
 Involves comparing actual or planned project practices to those of
other projects to generate ideas for improvement and to provide a
standard by which to measure performance

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 Flowcharting
 Any diagram that shows how various elements of a system relate
 Cause-and-effect diagrams
 System or process flow charts
 Flowcharting can help the project team anticipate what and where
quality problems might occur and thus can help develop approaches
for dealing with them

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Cause-and-effect diagrams, also called Ishikawa diagrams or
fishbone diagrams, which illustrate how various factors might be
linked to potential problems or effects
Cause-and-effect diagrams, also called Ishikawa diagrams or
fishbone diagrams, which illustrate how various factors might be
linked to potential problems or effects

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An example of a process flow
chart for design reviews
An example of a process flow
chart for design reviews

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 Design of experiments
 is a quality planning technique that helps identify which variables have the most
influence on the overall outcome of a process.
 Also applies to project management issues, such as cost and schedule trade-
offs.
 Eg senior engineers will cost more than junior engineers, but can also be expected
to complete the assigned work in less time
 Involves documenting important factors that directly contribute to meeting
customer requirements.

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 Cost of quality
 Refers to the total cost of all efforts to achieve product/service quality
and include all work to ensure conformance to requirements, as well
as all work resulting from non-conformance to requirements
 Three types of costs that are incurred
 Prevention cost
 Appraisal costs
 Failure costs

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OutputsOutputs
 Quality management plan
 Should describe how the project management team will implement
its quality policy
 ISO 9000 terminology :- “the organizational structures,
responsibilities, procedures, processes and resources needed to
implement quality management”
 Provides input to the overall project plan and must address quality
control, quality assurance and quality improvement for the project

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 Operational definitions
 Describes in very specific terms what something is and how it is
measured by the quality control process
 Checklists
 Structured tool used to verify that a set of required steps have been
performed
 Input to other processes
 Identify a need for further activity in another area

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QUALITY ASSURANCESQUALITY ASSURANCES
 Quality assurance includes all the activities related to satisfying the relevant
quality standards for a project.
 Another goal of quality assurance is continuous quality improvement.
 Benchmarking generates ideas for quality improvements by comparing
specific project practices or product characteristics to those of other projects
or products within or outside the performing organization.
 A quality audit is a structured review of specific quality management
activities that help identify lessons learned that could improve performance
on current or future projects.

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InputsInputs
1. Quality
management plan
2. Results of quality
control
measurements
3. Operational
definitions
1. Quality
management plan
2. Results of quality
control
measurements
3. Operational
definitions
Tools and TechniquesTools and Techniques
1. Quality planning tools
and techniques
2. Quality audits
1. Quality planning tools
and techniques
2. Quality audits
OutputsOutputs
1. Quality
improvements
1. Quality
improvements

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QUALITY CONTROLQUALITY CONTROL
 Involves monitoring specific project results to determine if
they comply with relevant quality standards, and identifying
ways to eliminate causes of unsatisfactory results
 Often performed by a Quality Control Department

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 Requires some knowledge of statistical quality control, especially
sampling and probability, to help evaluate quality control outputs
 Prevention (keeping errors out of the process) and inspection (keeping errors out
of the hands of the customer)
 Attribute sampling (the result conforms, or it does not) and variables sampling
(the result is rated on a continuous scale that measures the degree of conformity)
 Special causes (unusual events) and random causes (normal process variations)
 Tolerances (the result is acceptable if it falls within the range specified by the
tolerance) and control limits (the process is in control if the result falls within the
control limits)

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InputsInputs
1. Work results
2. Quality
management plan
3. Operational
definitions
4. Checklists
1. Work results
2. Quality
management plan
3. Operational
definitions
4. Checklists
Tools and TechniquesTools and Techniques
1. Inspection
2. Control chart
3. Pareto diagrams
4. Statistical sampling
5. Flowcharting
6. Trend analysis
1. Inspection
2. Control chart
3. Pareto diagrams
4. Statistical sampling
5. Flowcharting
6. Trend analysis
OutputsOutputs
1. Quality
improvements
2. Acceptance
decisions
3. Rework
4. Completed
checklists
5. Process
adjustments
1. Quality
improvements
2. Acceptance
decisions
3. Rework
4. Completed
checklists
5. Process
adjustments

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Pareto AnalysisPareto Analysis
 Pareto analysis involves identifying the vital few contributors
that account for the most quality problems in a system.
 Also called the 80-20 rule, meaning that 80 percent of
problems are often due to 20 percent of the causes.
 Pareto diagrams are histograms, or column charts
representing a frequency distribution, that help identify and
prioritize problem areas.

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Sample Pareto DiagramSample Pareto Diagram

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Statistical Sampling and StandardStatistical Sampling and Standard
DeviationDeviation
 Statistical sampling involves choosing part
of a population of interest for inspection.
 The size of a sample depends on how
representative you want the sample to be.
 Sample size formula:
Sample size = .25 X (certainty factor/acceptable error)2
 Be sure to consult with an expert when using
statistical analysis.

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Six SigmaSix Sigma
 Six Sigma is “a comprehensive and flexible
system for achieving, sustaining, and
maximizing business success. Six Sigma is
uniquely driven by close understanding of
customer needs, disciplined use of facts, data,
and statistical analysis, and diligent attention
to managing, improving, and reinventing
business processes.”*
*Pande, Peter S., Robert P. Neuman, and Roland R. Cavanagh, The
Six Sigma Way, New York: McGraw-Hill, 2000, p. xi.

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ISO StandardsISO Standards
 ISO 9000 is a quality system standard that:
 Is a three-part, continuous cycle of planning, controlling,
and documenting quality in an organization.
 Provides minimum requirements needed for an
organization to meet its quality certification standards.
 Helps organizations around the world reduce costs and
improve customer satisfaction.
 ISO 15504, sometimes known as SPICE
(Software Process Improvement and Capability
dEtermination), is a framework for the
assessment of software processes.

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Improving Project QualityImproving Project Quality
 Several suggestions for improving quality for
projects include:
 Establish leadership that promotes quality.
 Understand the cost of quality.
 Focus on organizational influences and workplace
factors that affect quality.
 Follow maturity models.

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LeadershipLeadership
 As Joseph M. Juran said in 1945, “It is most important that
top management be quality-minded. In the absence of sincere
manifestation of interest at the top, little will happen below.”*
 A large percentage of quality problems are associated with
management, not technical issues.
*American Society for Quality (ASQ), (www.asqc.org/about/history/juran.html).

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The Cost of QualityThe Cost of Quality
 The cost of quality is the cost of conformance plus the cost of
nonconformance.
 Conformance means delivering products that meet requirements and fitness for
use.
 Cost of nonconformance means taking responsibility for failures or not meeting
quality expectations.
 A 2002 study reported that software bugs cost the U.S. economy $59.6
billion each year and that one third of the bugs could be eliminated by
an improved testing infrastructure.*
*RTI International, “Software Bugs Cost U.S. Economy $59.6 Billion Annually, RTI Study
Finds,” July 1, 2002.

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Costs Per Hour of Downtime Caused by SoftwareCosts Per Hour of Downtime Caused by Software
DefectsDefects
Business Cost per Hour Downtime
Automated teller machines (medium-sized bank) $14,500
Package shipping service $28,250
Telephone ticket sales $69,000
Catalog sales center $90,000
Airline reservation center (small airline) $89,500

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Five Cost Categories Related to QualityFive Cost Categories Related to Quality
 Prevention cost: Cost of planning and executing a project
so it is error-free or within an acceptable error range.
 Appraisal cost: Cost of evaluating processes and their
outputs to ensure quality.
 Internal failure cost: Cost incurred to correct an identified
defect before the customer receives the product.
 External failure cost: Cost that relates to all errors not
detected and corrected before delivery to the customer.
 Measurement and test equipment costs: Capital cost of
equipment used to perform prevention and appraisal
activities.

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Media Snapshot*Media Snapshot*
 A 2004 study by Nucleus Research Inc. estimates that spam will cost
large companies nearly $2,000 per employee in lost productivity in
2004 alone, despite investments in software to block spam. Spam
currently accounts for more than 70 percent of total e-mail volume
worldwide.
 In just one month (August 2003), at least 50 new Internet viruses
surfaced, and losses related to computer viruses cost North American
companies about $3.5 billion. Businesses have suffered at least $65
billion in lost productivity because of computer viruses since 1997.
*McGuire, David, “Report: Spam Costs Are Rising at Work,” Washington Post (June 7, 2004).

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Organizational Influences, WorkplaceOrganizational Influences, Workplace
Factors, and QualityFactors, and Quality
 Study by DeMarco and Lister showed that
organizational issues had a much greater influence
on programmer productivity than the technical
environment or programming languages.
 Programmer productivity varied by a factor of one to
ten across organizations, but only by 21 percent
within the same organization.
 Study found no correlation between productivity and
programming language, years of experience, or
salary.
 A dedicated workspace and a quiet work environment
were key factors to improving programmer
productivity.

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Expectations and Cultural DifferencesExpectations and Cultural Differences
in Qualityin Quality
 Project managers must understand and
manage stakeholder expectations.
 Expectations also vary by:
 Organization’s culture
 Geographic regions

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