The document discusses project quality management. It defines quality management as determining quality policies, objectives, and responsibilities to ensure the project satisfies its requirements. Quality management includes quality planning, quality assurance, and quality control. Quality planning identifies relevant standards. Quality assurance applies quality activities to meet requirements. Quality control monitors results to ensure they comply with standards. The document also discusses quality definitions, goals, costs, and techniques used in quality planning, assurance, and control.

1. PM DeepDive
Project Quality Management
- Niraj Agarwal
May 2011
Slide 1

2. Project Quality Management
Definition
Project Quality Management processes include all the 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.
Quality Planning – identifying which quality standards are relevant to
the project and determining how to satisfy them.
Perform Q lit A
P f Quality Assurance – applying the planned, systematic quality
l i th l d t ti lit
activities to ensure that the project employs all processes needed to
meet requirements.
Perform Quality Control – monitoring specific project results to
f l l f l
determine whether they comply with relevant quality standards and
identifying ways to eliminate causes of unsatisfactory performance.
May 2011
Slide 2

3. Project Quality Management
What is Quality?
• The totality of characteristics—features functionalities and
characteristics features,
performance requirements—of an entity that bear on its ability to
satisfy stated or implied needs.
• In simpler terms, the degree to which the project fulfils requirements
terms requirements.
• Quality and Grade are different concepts. Grade is a category or rank
given to entities having the same functional use but different quality
requirements. Hi h G d means more features and f
i t Higher Grade f t d functions, not
ti t
necessarily higher quality.
May 2011
Slide 3

4. Project Quality Management
Goals of Quality
• Conformance to the requirements - Does the product or service
conform to the requirements?
• Fitness for use - Is the product or service capable of being used?
• Fitness for purpose - Does the product or service meet its intended
purpose?
• Customer Satisfaction - Understanding, managing, and influencing
g g g g
needs so that customer expectations are met or exceeded.
• Prevention over Inspection - The cost of avoiding mistakes is always
much less t a t e cost o co ect g t e
uc ess than the of correcting them
May 2011
Slide 4

5. Project Quality Management
Cost of Quality
• Cost of quality is the total cost of all the work required to assure the
project meets the quality standards.
• These costs include all the work required, planned and unplanned, to
meet these standards, as well as the cost of nonconformance rework
standards nonconformance, rework,
and quality assessments.
• In other words Cost of Quality is cost of conformance plus the cost of
non conformance.
f
May 2011
Slide 5

6. Project Quality Management
Major Cost Categories of Quality
• Prevention costs are the costs of keeping defects out of the hands of
the customers. These costs include quality planning, training, design
review, contractor or supplier costs, and any product or process testing
y
you may p
y perform.
• Appraisal costs include the activities performed to examine the
product or process and make certain the quality requirements are being
met. Appraisal costs include inspection, testing, and formal quality
audits.
May 2011
Slide 6

7. Project Quality Management
Major Cost Categories of Quality
• Failure costs include the cost of activities needed if the product fails
fails.
• Failure costs are also known as the cost of poor quality.
- Internal failure costs result when the customer requirements are
not satisfied but the product is still in the control of the
organization. Some examples of internal failure costs include
corrective action, rework, scrapping, and downtime.
- External failure costs occur when the product has reached the
customer and they determine it doesn’t meet their requirements.
Example external failure costs include inspections at the customer
site, returns, and customer service costs.
d
May 2011
Slide 7

8. Project Quality Management
Major Cost Categories of Quality
May 2011
Slide 8

9. Plan Quality
Definition & ITTO
The process of identifying quality requirements and/or standards for
the project.
May 2011
Slide 9

10. Plan Quality
May 2011
Slide 10

11. Plan Quality
Tools & Techniques
• Benefit/cost analysis - Considers cost and benefits arising from
different approaches to quality planning
• Benchmarking - Established standards, practices, or performances
from other projects or market that can be used as comparison
• Design of experiments (DOE) - An analytical technique which helps
to identify variables with greatest influences
• Flowcharting uses diagrams that depict the relationship of various
elements in the project.
May 2011
Slide 11

12. Plan Quality
Quality metrics
• A quality metric is a standard of measurement that specifically
defines what will be measured and how it will be measured.
• You can define metrics for any area of the project.
• E.g. A web sales application - To measure quality of the checkout
process, your metric might state that when the customer implements
the checkout process, the system will multiply the price of each item by
the
th quantity of it
tit f items ordered and compute th applicable sales t and
d d d t the li bl l tax d
shipping charges 100 percent of the time. This metric would be part of
the test scenarios used in the user acceptance test.
May 2011
Slide 12

13. Plan Quality
Quality checklists
• A quality checklist is a tool that lists a series of steps that must be
taken to complete an activity or process.
• As each step is completed, it is marked off the list.
• This provides documentation that the steps were completed and can
also be used to track when the step was taken and who performed the
work.
• Typically phrased as imperatives (DO IT! - LISTS) or as
interrogatives (HAS THIS BEEN DONE? - LISTS)
May 2011
Slide 13

14. Quality Assurance Process
Definition & ITTO
The application of planned, systematic quality activities to ensure that
planned
the project will employ all processes needed to meet requirements.
May 2011
Slide 14

15. Quality Assurance Process
ITTO
May 2011
Slide 15

16. Quality Assurance Process
Quality Audits
• A structured independent review of quality management activities to
determine whether project activities comply with organizational and
project policies, processes, and procedures.
• Identify Lessons Learned for performance improvements
• Performed on a scheduled and random basis
• Can be performed by trained in-house auditors or by external
p y y
auditors
May 2011
Slide 16

17. Perform Quality Control
Definition & ITTO
The Monitoring specific process to determine if they comply with
relevant quality standards and identifying ways to eliminate causes of
unsatisfactory results.
May 2011
Slide 17

18. Perform Quality Control
May 2011
Slide 18

19. Perform Quality Control
Cause and Effect Diagrams
• Cause and Effect Diagrams are also called fishbone diagrams or
Ishikawa diagrams
• Analyze the inputs to a process to identify the causes of errors.
CAUSES EFFECT
TIME MACHINE METHOD MATERIAL
MAJOR
DEFECT
ENERGY MEASUREMENT PERSONNEL ENVIRONMENT
May 2011
Slide 19

20. Perform Quality Control
Pareto Chart
• A relatively small number of causes will typically produce a large
majority of the problems or defects.
• Accredited for the 80/20 Rule
• A Histogram, ordered by frequency of occurrence, that shows how
many results were generated by type or category of identified causes.
• Defects with most frequent occurrence should be targeted for
q g
corrective action.
May 2011
Slide 20

21. Pop Quiz
Question 1
A quality technique that analyzes similar activities as a means
of comparison is known as what?
A. Cost - benefit analysis
B. Cost of quality
C. Flowcharting
D.
D Benchmarking
May 2011
Slide 21

22. Pop Quiz
Question 2
The benefits of meeting quality requirements include all of
the following except for which one?
A. Increased satisfaction
B. Less rework
C. Higher productivity
D.
D Lower costs
E. Improved quality metrics
May 2011
Slide 22

23. Pop Quiz
Question 3
Which of the following are the types of cost of quality? Choose
three.
A. Failure costs
B. Prevention costs
C. Appraisal costs
D.
D Equipment costs
E. Resource costs
F. Quality Planning costs
G. Extended support costs
May 2011
Slide 23

24. Pop Quiz
Question 4
These costs are also known as the cost of poor quality.
A. Appraisal costs
B. Corrective costs
C. Prevention costs
D. Failure costs
May 2011
Slide 24

25. Thank You!