Presentation on Quality Management

2. STARTING THE PROJECT (Continue)
Already assembled a high performing engaged and
empowered project team,
Now we have started the planning phase
At the beginning, we have to determine the
methodology or method
A. Assess project needs, complexity, and
magnitude to determine the appropriate project
methodology /methods and practices.
B. Plan & Manage the Scope
C. Plan & Manage the budget & resources
D. Plan, prepare, modify & manage the project
schedule based on methodology
E. Plan & manage quality of product &
deliverables
F. Integrate project planning activities
G. Plan & manage procurement strategy
H. Establish the project governance structure
I. Plan & manage project/phase
closure
Lesson Objectives:

Enablers:
• Plan Quality Standard required for project deliverables
• Recommend options for improvement based on quality gaps
• Continually survey project deliverable quality
- What the level of quality is?
- How the project quality is to be measured?
- How it will be aligned to the project objectives?
- How the quality is to be tracked & reported?
Following Deliverables & Tools are relevant to the enablers:
E. PLAN AND MANAGE QUALITY OF PRODUCT & DELIVERABLES

Quality
Quality is the degree to which a set of inherent characteristics fulfills requirements
 Quality represents what the stakeholders expect from the project.
 The stated and implied quality needs are inputs for devising project requirements.
 In Business – Quality should be feasible, modifiable and measureable.
Quality Standards and Regulations
A standard is a document established by an authority, custom, or general consent as model or example.
 Standards are typically voluntary Guidelines or characteristics
 Approved by recognized body of experts (such as International Organization for Standardization - ISO).
Regulations are requirement imposed by a governmental body.
 Requirements can established product, process, or service characteristics.
 Its kind of government-mandated compliance.
 Stands often start out as accepted or De facto best practice describing a preferred approach
 May later become de jure regulations such as uniting the critical path method in Scheduling major
construction projects.

Quality Management Plan
The quality management plan describes how applicable policies, procedures, and guidelines
will be implemented to achieve the quality objectives.
It describes the activities and resources necessary for the project management team to
achieve the quality objectives set for the project. The quality management plan may be formal or
informal, detailed, or broadly framed.
Quality Management Plan includes:
 Quality objectives of the project
 Quality standards that will be used by the project
 Quality roles and responsibilities
 Project deliverables and processes subject to quality review
 Quality control and quality management activities planned for the project
 Quality tools that will be used for the project
 Major procedures relevant for the project, such as dealing with nonconformance, corrective
actions procedures, and continuous improvement procedures.

Quality
Quality is the degree to which the product or result meets the
customer or end-user requirements. Their requirements may
or may not be in alignment with the documented project
requirements, however. It is simply their assessment on how
well the output aligns with their needs and expectations.
Grade
Grade is a category assigned to products that have the same
functional use but different technical characteristics. Grade is
usually determined through some set of pre-determined
measurements and demonstration of compliance to those
measurements.
 Low grade may not be a problem, but low quality is
almost always a problem.
 High quality doesn’t necessarily mean high grade.
 The project management team manages the
trade-off between quality and grade based on the
project requirements.
 Higher grade products are usually more expensive
than lower grade ones.

Cost of Quality (COQ) is primarily a measure of
all costs related to the quality and the lack thereof.
In other words, its an integrated concept of the costs to
achieve quality and the costs that occur due to quality
issues.
COQ = Cost of Conformance + Cost of Non-Conformance (or failure costs)
Cost of non-conformance = sum of external and internal failure costs.
Cost of conformance = sum of the prevention and appraisal costs

Cost of conformance
describes the amount of resources
needed to achieve the quality
requirements and targets of a project.
The underlying rationale is to spend
money on the prevention of quality
issues rather than for fixing them.
Cost of non-conformance
is used as a synonym for failure
cost. It refers to the resources that
are required to fix failures and
take corrective actions but also
to indirect effects from quality
issues, such as negative business
impact.
Appraisal costs are the (financial and non-financial) resources that are consumed to
assess and measure the quality of the deliverables of a project. This relates to quality
assurance and money invested in activities that identify quality issues.

Quality Audits
An audit is a structured, independent process used to determine if project activities comply
with organizational and project policies, processes, and procedures.
A quality audit is usually conducted by a team external to the project, such as the organization’s
internal audit department, PMO, or by an auditor external to the organization.
Quality audit objectives may include:
 Identifying all good and best practices being implemented
 Identifying all nonconformity, gaps, and shortcomings
 Sharing good practices introduced or implemented in similar projects in the organization and/or
industry
 Proactively offering assistance in a positive manner to improve the implementation of
processes to help raise team productivity
 Highlighting contributions of each audit in the lessons learned repository of the organization

Quality Measurement Tolls:
There are a variety of tools available for continually surveying the
quality of a project. Seven common tools are:
 Cause and effect diagram. Diagrams that define the inputs to a
process or product in order to identify potential causes of defects.
 Histogram. A bar chart showing a distribution of variables.
 Run chart. Show trends in the variation of a process over time.
 Scatter diagram. Shows the relationship between two variables.
 Control chart. A graphic display of process data over time and
against established control limits, and that has a centerline that
assists in detecting a trend of plotted values toward either control
limit.
 Flowcharting. The depiction in a diagram format of the inputs,
process actions, and outputs of one or more processes within a
system.
 Pareto chart. A histogram, ordered by frequency of occurrence, that
shows how many results were generated by each identified cause.
Quality Metrics is a description of a
project or product attribute and how to
measure it. The tolerance is the allowable
variation in this measurement.
For Example:
Schedule is within +10% and -10% of the
actual schedule.
Other Example:
 Budget variance
 Defect count
 Requirements coverage
 Failure rate

Cause and effect diagram. Diagrams that define the inputs to
a process or product to identify the potential causes of defects are known
as Cause and effect diagrams.
This diagram is also referred to as Fish-bone analysis
diagram or Ishikawa diagram.
The given diagram illustration simply helps us list out the
possible causes of the cost over-run. Once the root
cause is determined, it could be handled with
appropriate resolution and may help in damage control.

Histogram. A bar chart showing a distribution of variables over time, is called a Histogram.
Histograms give us a fair idea of how our data breaks down. It shows the distribution of data over various streams
ranging from resource allocation to budget distribution.
Histogram represents each attribute or characteristic
as a column and the frequency of each attribute or
characteristic occurring as the height of the column.
Shows IT department’s survey to rank the reasons for
dissatisfaction of a call center’s service. Its uses bars to
demonstrate the number of times each cause of
dissatisfaction was checked.

Run Chart. A run chart is a line graph of data plotted over time used to show trends in the variation of a process.
In a run chart, you are looking for trends in the data over time. You could check the chart to see if it seem to be going
up or down as the project progresses.
The run chart is a running record of a process over
time:
 Vertical axis represents the process being
measured
 The horizontal axis represents the units of time
by which the measurements are made
In software development, we observed that the trend of
fixing the bugs was slower in the initial phase of software
testing. However, as more and more bugs were generated
by the tester, the developers started focusing on fixing
more bugs to ensure delivery on-time and on-budget.

Scatter Diagram. A scatter diagram, or scatter graph is a graphical representation of quantitative analysis on
mathematical statistics of two variables, using Cartesian coordinates.
In a run chart, you are looking for trends in the data over time. You could check the chart to see if it seem to be going
up or down as the project progresses.
 Scatter diagrams use two variables, one
called an ‘independent variable’, which is
an input and the other called the
‘dependent variable’, which is an output.
 This relationship is also analyzed to prove
or disapprove cause and effects
relationship between the variable.
The local ice cream shop keeps track of how much ice
cream they sell versus the noon temperature on that day

Control Chart. A Control Chart is a graphical display of data over time and against established control limits that
has a center line that assists in detecting a trend of plotted values toward either control limits.
Control Charts measure the results of processes over time and display the result in graph form to show whether the
process variance is in control or out of control.
A process is considered to be in control if the
measurements fall within the control limits. So in
a Control Chart, there is a mean, a Lower
control limit and an Upper control limit.
Control charts helps to answers to the following:
 Is the process under control?
 Is the project moving in the right direction?
 Are the deliverables within the specification limits?

Flow Chart. The depiction in a diagram format of the inputs, process actions, and outputs of one or more
processes within a system is called a Flow Chart. .
The flowchart shows the steps as
boxes of various kinds, and their
order by connecting the boxes with
arrows. This diagrammatic
representation illustrates a solution
model to a given problem.

Pareto Chart. A Pareto chart is a specific type of histogram that ranks causes or issues by their overall influence.
A Pareto chart assists in prioritizing corrective actions as the issues with the greatest impact are displayed in order. In
addition, the Pareto chart includes an arc representing the cumulative percentage of the causes..
A Pareto chart is named after Pareto’s Law that states
that a relatively small number of causes will typically
produce a large majority of the problems or defects.
This is commonly known as the 80/20 rule, where
80% of the problems are due to 20% of the causes.
The causes on the left of the intersection point of the
80% cumulative line (orange line) and the cumulative
frequency line (red line) are the issues to focus the
attention on.

Statistical sampling is one of the tools and techniques
used in Control Quality. It is defined as selecting part of a
population in question or interest for inspection. The samples are
chosen and tested according to the quality management plan.
Population is the entire set of items from which you draw
data for a statistical study. It can be a group of individuals, a
set of items, etc. It makes up the data pool for a study.
A sample represents the group of interest from the
population, which you will use to represent the data. The
sample is an unbiased subset of the population that best
represents the whole data.
In attribute sampling, data is in the “attribute” form,
and the result either conforms or does not conform.
Attribute sampling checks whether an item is defective or
not. It’s a yes or no answer.
In variable sampling, data is in the “variable”
form, and the result is rated on a continuous scale
that measures the degree of conformity.
Variable sampling is about checking “how much”,
“how good”, or “how bad”.

Enablers:
 Manage & rectify ground rule violations
 Consolidate the project/phase plans
 Assess plans for dependencies, gaps, and continued business
value
 Analyze the data collected
 Collect & Analyze data to make informed project decisions
 Determine critical information requirements
 Plan and manage project compliance to business factors
 Plans are developed and updated throughout the project, need to integrate all
those plans and components.
 This integrated view can identify and correct gaps or conflicts
F. INTEGRATE PROJECT PLANNING ACTIVITIES

Project Management Plan
and Project Documents:
A project plan, also known as the
project management plan, is the document
that describes how the project will be
executed, monitored, and controlled, and
closed.
There is generally not one single plan,
But many plans that make up the project
management plan.
Project documentation is the
process of recording the key project details
and producing the documents that are
required to implement it successfully.
Project documents come in many forms

Components:
 Baselines (4)
 Subsidiary plans (13)
 Life Cycle (1)
 Project Processes
 Work Explanation
 Agile Project Plan
Baselines are used to compare what has been done to what was
planned. The three most common baselines are:
 Scope baseline - an approved version of the detailed project scope
 Schedule baseline - an approved version of the schedule
 Cost baseline - an approved version of the time-phased budget
Performance measurement baseline
An integrated scope-schedule-cost plan for the project work. Used to
measure and manage project work during project execution.

Components:
 Baselines (4)
 Subsidiary plans (13)
 Life Cycle (1)
 Project Processes
 Work Explanation
 Agile Project Plan

The scope management plan is a component of the project or program management
plan that describes how the scope will be defined, developed, monitored, controlled, and
verified. The scope management plan is a significant input into the Develop Project
Management Plan process and the other scope management processes.
The components are as follows:
 The process to prepare a detailed project scope
statement
 The process that allows creating WBS from the detailed
project scope statement
 The process that establishes how the WBS will be
maintained and approved
 The process that explains how formal acceptance of
completed project deliverables are to be obtained
 The process to control the requests for changes to the
detailed project scope statement will be documented.

The Requirements Management Plan A process that describes how the project
requirements will be analyzed, documented, and managed. They rightly choose the most effective
relationship for the project and document the approach in the requirements management plan.
The plan focuses on:
 How the requirement activities are planned,
tracked, and reported.
 How the changes to the product will be initiated.
 The procedures required for analyzing the impacts,
and methods used to trace and report the issues.
 Getting Details of the authorization levels that are
required to approve the changes made.
 The conditions required to rank the implemented
processes.
 Focusing on why and how the product metrics are
being used.
 Traceability structure to reflect which requirement
features will be captured on the traceability matrix.

The Schedule Management Plan defines how the
project schedule is managed throughout the project lifecycle. The
plan provides guidance and sets expectations for project
schedule policies and procedures for planning, developing,
managing, executing, and controlling the project schedule.
The components of the Schedule Management Plan can include:
 Roles and responsibilities. (Schedule owner. Who can update? Who
can read?)
 Update frequency. describe the timing of schedule updates.
(weekly, bi-weekly)
 Progress feedback. describes how the schedule feedback will be
delivered (status report, progress report)
 Schedule change review and approval. define the process
required to evaluate and approve proposed schedule changes.
 Tools. Describe about any scheduling tool used on this project
(read the schedule, update schedule, etc)
 Reports. types and names of reports using to manage the project,
 Schedule integration. master schedule is the result of a roll-up of
other underlying schedules

Risk Management Plan – The Risk Management Plan
shall outline the strategies how to increase the probability and
impact of positive events and decrease the probability and impact
of negative events in a project by utilizing the processes set out
by PMBOK.
Components of Risk Management?
1. Risk Identification
Risk identification is the process of documenting potential risks and then
categorizing the actual risks the business faces.
2. Risk Analysis
Once risks have been identified, the next step is to analyze their likelihood and
potential impact. How exposed is the business to a particular risk? What is the
potential cost of a risk becoming a reality?
3. Response Planning
Response planning answers the question: What are we going to do about it?
4. Risk Mitigation
Risk mitigation is the implementation of your response plan. It is the action your
business and its employees take to reduce exposure.
5. Risk Monitoring
Risks are not static; they change over time. The potential impact and probability
of occurrence change, and what was once considered a minor risk can grow
into one that presents a significant threat to the business and its revenue.

“The configuration management plan defines those
items that are configurable, those items that are require formal
change control, & the process for controlling changes to such
items.”
Configuration Planning tells us the following:
 What all project items are configurable
 Which all items (say Scope Statement, WBS Dictionary) needs,
formal change control
 And, what would be the process of controlling changes to these
items?
Configuration Management Plan also recommends:
 A tool to manage Configurable Items,
 A versioning scheme. For example, a Document Version will have two
segments like aa, bb, cc, .dd. The first segment will represent the
product; the second will represent deliverable, etc.

Change Management Plan
A change management plan is a component of the project management plan that establishes
the change control board or involvement level of the Product Owner, documents that extent of it
authority and describes how the change control system will be implemented.
A change management plan can answer the
following questions:
 Who can propose a change?
 What exactly constitutes a change?
 What is the impact of the change on the project’s
objectives?
 What steps are necessary to evaluate the change
request before approving or rejecting it?
 When a change request is approved, what project
documents must be amended to record the actions
necessary to effect the change?
 How will these actions be monitored to confirm that
they have been completed satisfactorily?

Enablers:
• Define external resource requirements and needs
• Communicate external resource requirements
• Manage suppliers/Contracts
• Analyze the data collected
• Plan & manage procurement strategy
• Develop a delivery solution
 Identifying suppliers, obtaining bids or proposal from them, awarding contracts
based on their evaluation
 All procurements must be done within time, cost & quality
Following Deliverables & Tools are relevant to the
enablers:
G. PLAN AND MANAGE PROCUREMENT

Procurement Management Plan – Documents the
activities relative to purchasing or acquiring services from
outside the project team or entity. An entity can either be the
buyer or vendor of a service or a product.
Project Procurement Management takes into account four
(4) processes namely:
1. Plan Procurements
2. Conduct Procurements
3. Administer Procurements
4. Close Procurements
Make or Buy Analysis
A make or buy analysis typically occurs in the
Plan Procurement Management stage of a
project. There are two PMP exam definitions
you should know:
Make or Buy Analysis: The process of
gathering and organizing data about product
requirements and analyzing them against
available alternatives, including the purchase
or internal manufacture of the product.
Make or Buy Decisions: Decisions made
regarding the external purchase or internal
manufacture of a product
Calculate Make or Buy Decisions
 Direct and Indirect Costs
 Costs of producing in-house vs.
an outside source
 Cost of conformance vs. non-
conformance

Enablers:
• Determine appropriate governance for a project
• Define escalation path and thresholds
 Organization use governance guidelines to establish strategic direction and
performance parameters
 Strategic direction provides the purpose, expectation, goals and action to guide
business pursuits and is aligned with the business objectives.
 Project management activities must stay aligned with business direction.
H. ESTABLISH PROJECT GOVERNANCE STRUCTURE

I. Project Governance
II. Project Governance Framework
III. Project Phases
IV. Applying governance to Project Lifecycle
V. Escalation Paths (Phase Gate/Tollgate/Kill Point)
VI. Phase-to-Phase Relations
 Sequential Relationship
 Overlapping Relationship
VII. Guideline to Determine Appropriate Governance for a Project
This topic covers:
Project Governance:
 Framework, functions, and processes that guide project management activities to
meet organizational, strategic and operational goals.
 It provides the structure, processes and decision making model and tools for the
project manager and team to manage the project

Project Governance Framework:
 Project success and deliverable acceptance
criteria
 Process to identify, escalate and resolve issue
 Relationship between project team, organizational
groups and external stakeholders
 Project organizational chart with roles
 Communication process and procedures
 Process for project decision making
 Project Life cycle approach
 Process for stage gate or phase review etc.
Guideline to Determine Appropriate
Governance for a Project:
 Involve the organization’s decision managers
 Choose the most appropriate governance goals
 Select a group of experienced people for all
governance activities
 Practice the governance for projects, programs and
portfolios.
 Keep the governance process transparent to
stakeholders

Enablers:
• Determine criteria to successfully close the project or phase
• Develop transition planning artifacts
• Validate readiness for transition
• Conclude activities to close out project or phases
Following Deliverables & Tools
are relevant to the enablers:
Close Project or Phase Process:
- All work is completed and project has delivered its objectives
- Scope baseline is reviewed to confirm completion
- Deliverables meet acceptance criteria are formally signed off or approved by
the customer or sponsor
- All invoices are paid
- Contracts are closed out
- Project lessons learned are discussed and documented
- Any other loose ends are wrapped up
- Project or phase information is archived
- Resources are released
I. PLAN & MANAGE PROJECT/PHASE CLOSURE

Close Project or Phase Criteria:
 Project/phase successfully met its completion objectives
 Requirement changed during execution where project is no longer feasible
 Adequate funding is no longer available
 Significant risks are encountered that make the project success impossible
 Organization no longer needs the project deliverable
 Change in laws or regulation
 Global or national economic changes
Consideration of lessons learned:
 Scheduling lessons learned: Relevant scheduling problems/issues)
 Conflict management lessons learned: Within the team or between the team & customer)
 Sellers lessons learned: Seller experience and performance
 Customer lessons learned: Excessively litigious or unreasonable to work with
 Strategic lessons learned: Some aspects of project management methodology, template, form or process
 Tactical lessons learned: If you do this type of project again what should you stop, start and continue so
that you can execute flawlessly?
I. PLAN & MANAGE PROJECT/PHASE CLOSURE

Difference between grade and quality
 The process of identifying quality requirements and/or
standards for the project and its deliverables, and
documenting how the project will demonstrate
compliance with relevant quality requirements.
 Concerned with the stability or predictability of the
product.
 Is a general characteristic or property, such as
capacity and height.
 Grade: characteristics of the product. Quality: stability
or predictability of the product or how well something
works
Fishbone (Ishikawa) diagram
 Shows cause and effect to identify potential
root cause of defects; evaluate what could
potentially cause defects; review symptoms
to determine real problems (continue to ask
questions until the root cause is determined).
 Tools you can use to capture and categorize
quantitative or qualitative data. Can use to
indicate each time a process failed over a
specific period of time.
 are used to depict a goal and the steps
required to attain that goal
 Practice of providing more than the customer
requested
Sample Question

Sample Question
Peter works as a project manager for GOODSTEEL, a steel melting shop. He was assigned by his
Executive Project Manager to study and prepare a report on the defects that eroded the blast furnace
lining which has caused a drastic decline in production. Since this report will be used by the
management to control the process and material quality, Peter performed a careful study and identified
two major factors out of many factors related to refractories that caused majority of the lining problems.
Which of the following statements BEST illustrate the technique Peter must have used in this scenario?
A. A Pareto chart indicates that the vital few sources of the problem.
B. A cause and effect diagram indicates how various causes show the
history and variation of defects
C. A Pareto chart identifies the possible relationship between changes
observed in two independent variables
D. A cause and effect diagram indicates how various factors or causes can
be linked to potential problems

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