Order 1328631: Project Management
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Week10.pdf
2018-11-14
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Project Management Class – 10
Project Quality Management
Learning Outcomes
Ø What is quality and what are different dimensions of quality?
Ø What are the main quality concepts Ø Define different cost elements of quality Ø Implement quality planning, assurance, and control in
projects Ø Discuss the basic quality control tools Ø Explain how control charts are designed and the concepts
that underlie their use.
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Quality Concepts
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$550
Which watch has the higher quality?
Let’s not confuse quality with luxury…
Ø Which watch has the higher quality?
$110
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Which watch has the higher quality?
Movado üStainless steel üQuartz movement üWater-resistant üShock-resistant üFashionable!
Timex üStainless steel üQuartz movement üWater-resistant üShock-resistant üDate indicator üHour/minute markings üIlluminated dial üFashionable??
Let’s consider their features:
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What is Quality?
There are two ways of defining quality: Ø Conformance to requirements: The project’s processes and products
meet written specifications. The International Organization for Standardization (ISO) defines quality as “the degree to which a set of inherent characteristics fulfills requirements” (ISO9000). § Those requirements may be imposed by government (such as the Ontario
Building Code) or by the client (deliverables in the agreement) or by a consultant (materials described in a building specification).
Ø Fitness for use: A product can be used as it was intended. Fitness may be determined by the client, users or other key stakeholders. § If the lobby of a new condominium building has a bare concrete floor, that
would be acceptable under the Ontario Building Code, but would not be considered suitable by most purchasers.
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Eight Dimensions of Product Quality
Ø Performance refers to a product's primary operating characteristics. This dimension of quality involves measurable attributes. § Example: A car’s fuel economy, acceleration rate, top speed, interior volume, seating capacity,
etc.
Ø Features are additional characteristics that enhance the appeal of the product or service to the user. § Example: Availability of heated steering, AC, power brakes, alloy wheels, GPS mapping, etc.
Ø Reliability is the likelihood that a product will not fail within a specific time period. This is a key element for users who need the product to work without fail. § Example: The reliability of cars is often measured by how many problems the owner has with
a particular product and how severe the problems are.
Ø Conformance is the precision with which the product or service meets the specified standards. § Example: Emission control in Canada is a predetermined standard that needs to be
implemented regardless of where the car was manufactured and bought.
Competing on the eight dimensions of quality. David A. Garvin, Harvard Business Review. 1987. 7
Eight Dimensions of Product Quality (cont’d)
Ø Durability measures the length of a product’s life. When the product can be repaired, estimating durability is more complicated. § Example: Durability of tires in terms of kilometres until they require replacement
Ø Serviceability is the speed with which the product can be put into service when it breaks down, as well as the competence and the behavior of the serviceperson. § Example: How accessible are battery, spark plugs, and other easily maintainable parts
Ø Aesthetics is the subjective dimension indicating the kind of response a user has to a product. It represents the individual’s personal preference. § Example: Style and look of the exterior and interior of cars; overall image
Ø Perceived Quality is the quality attributed to a good or service based on indirect measures. § Example: Having the opinion that cars made in Germany or Japan have higher quality
Competing on the eight dimensions of quality. David A. Garvin, Harvard Business Review. 1987. 8
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More on Reliability and Maintainability
Reliability § Average time that a unit or a piece of equipment performs its intended function under specified conditions.
§ Usually specified as Mean Time Between Failure, or MTBF
§ Determined in two ways: § Predicted MTBF - based on a mathematical computation of sequential failure of “parts”
§ Actual MTBF - based on field collected data
Maintainability § Average time to restore a malfunctioning unit to working condition, meeting standards, under prevailing conditions.
§ Usually defined as the Mean Time To Repair or MTTR
§ Types of Repairs § Operator Repairs: Usually less than 1 hour
§ Shop Repairs: 1-3 hours § Major Overhaul: 3-60 hours
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MTBF & MTTR
Availability of a machine is defined in terms of the time when it is available for use; i.e. when it is not being repaired or maintained.
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One Machine Down
All Machines Working
All Machines Working
MTBF MTTR MTBFMachine A
Machine B
Machine C
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Quality Concepts
1. Zero Defects
2. Quality Throughout
3. The Quality Cycle
4. Continuous Improvement Process (CIP)
5. Specification Practices
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1. Zero Defects
Ø Zero Defects is a management tool aimed at the reduction of defects through prevention. It is directed at motivating people to prevent mistakes by developing a constant and conscious desire to do their job right the first time.
Ø Before the Quality Movement started in the 1970s, 2-3% defects were tolerated in most products and services
Ø Today the Six Sigma quality standards specify a goal of 3.4 defects per million units.
Zero Defects = No tolerance for errors within the system or its processes
Six Sigma is a data-driven approach and methodology for eliminating defects (driving toward six standard deviations between the mean and the nearest specification limit) in any process.
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2. Quality Throughout
Ø Quality has an impact in multiple areas § Product § Process § Organization
Ø Quality will only work if it is applied to all areas in a similar way Ø It requires Total Quality Management (TQM) in which all members of an
organization participate in improving processes, products, services, and the culture in which they work.
Ø TQM enjoyed widespread attention during the late 1980s and early 1990s before the more recent quality concepts such as ISO 9000, Lean manufacturing, and Six Sigma.
3. The Quality Cycle A Four-step Model for Carrying Out Change
1. Plan - decide what your Client wishes to accomplish and what you need to do to fulfill the commission 2. Do - carry out the commission through its stages; preliminary design, working drawings, contract documentation etc. 3. Check - review what you are doing on a continuous basis, identify problems and take corrective action where necessary. 4. Act - identify opportunities for improvement and implement measures to improve the reliability of the process.
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1. Plan
1. Plan the Quality Program
2. Do 2. Do, carry out the Quality Program
3. Check
3. Check the Outcome of the Quality Program
4. Act4. Act to improve Quality
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4. Continuous Improvement Process (CIP)
Ø CIP is a concept that recognizes that innovation in technology and business practices is continuously driving change and that any process that is satisfactory today is unlikely to remain so for long.
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Time
Productivity CIP
Innovation
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5. Specification Practices
Two main types of specification: 1. Detailed or Prescriptive Specification gives full details of the
material to be used and the method of installation § Written for more complex projects, e.g., buildings where the client has
requirements that might not be familiar to contractors
2. Functional or Performance Specification describes the end result required but not the method of achieving that end result. § Written on projects that are straight-forward, e.g., standard building types
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Project Quality Management Processes
Ø Project Quality Management is composed of:
§ Quality planning: Identifies quality standards that are relevant to the project and determines how to use those standards in planning
§ 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, and identifying ways to eliminate causes of unsatisfactory results
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Quality Planning Process of identifying quality requirements and/or standards for the project and product, and documenting how the project will demonstrate compliance with relevant quality requirements and/or standards. – PMBOK® Guide
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Quality Planning
Ø Project quality planning is a process for identifying quality standards and requirements for the overall project and for tracking, monitoring, and managing the expectations of planned quality.
Ø The inputs for quality planning include the § Scope document § Requirements from stakeholders § Risk register § Project schedule
Ø By using this input information, a project manager in cooperation with the quality team can develop a quality plan for a project.
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Quality Planning Standards and Quality
Ø There are many organizations to provide standardization, including International Organization for Standardization (ISO).
Ø The ISO 9000 family of standards addresses quality management to help organizations fulfill the quality requirements of the customer and represents an international consensus on good quality management practices
Ø Some examples of ISO 9000 family:
Version Description ISO 9000 Defines the fundamentals of quality management systems
ISO 9002 Provides a model for quality assurance in production, installation, and servicing.
ISO 9003 Provides a model for quality assurance in final inspection and testing.
ISO 9004 Emphasizes quality assurance via preventive actions instead of just checking final product, system or service. 20
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Quality Planning Tools and Techniques
Ø Benchmarking: Comparing planned project practices and quality criteria with those used in similar and successful projects within the organization and external to it.
Ø Design of Experiments: Statistical method use to identify specific variables that influence a product performance § The objective is to determine the most desirable combination of factors for
optimal performance at a reasonable cost Ø Statistical Sampling (more on this later) Ø Cost-Benefit Analysis: Quality planning must consider trade-offs
§ Costs associated with quality activities § Benefit of less rework § See following
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Cost of Quality
Ø Cost of Quality is the total cost of all efforts to achieve product quality.
Ø This includes all the work to develop and build a product that conforms to the stated requirements as well as all work resulting from non-conformance to these requirements.
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Cost of Quality
Cost of Conformance
Cost of Prevention
Cost of Appraisal
Cost of Non- Conformance
Cost of Internal Failure
Cost of External Failure
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Bad Costs: Cost of Internal and External Failure
Ø Costs incurred by the project before a product or service reaches or is used by a client or customer § Cost of repairs or scrapping defective products § Cost of rework § Cost of investigations § Cost of planning corrective action
Ø Costs incurred to rectify a product or service after it has reached or is used by a client or customer § Replacement/repairs costs for defective products § Warranty claims and cost of handling complaints § Cost of lost customers/opportunity § Legal Costs
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Good Costs: Cost of Appraisal
Ø Costs associated with investigative effort to assess and uncover quality issues related to the product § Cost of internal and external audits § Cost of investigations § Cost of inspections § Cost of testing and test equipment § Cost of models, prototypes, mock-ups, etc.
The higher you invest on appraisal, the lower the expected non-conformance cost would be
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Good Costs: Cost of Prevention
Ø Costs associated with proactive measures to ensure conformance with quality standards: § Cost of Quality Consultants § Cost of Quality Management System § Cost of Validation of Design and Planning § Training costs § Maintenance costs § Cost of Continuous Quality Improvement § Cost of preventive actions
The higher you invest on prevention, the lower the expected non-conformance cost would be
Total Cost of Quality
Ø As the cost of conformance decreases, the percentage of defects increases.
Ø As the percentage of defects increases, the cost of non- conformance increases.
Ø Where is the happy medium?
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Percentage Defective
100%0%
Co st o f Q
ua lit y
Cost of Non- Conformance
“Bad”
Cost-Effective Defect %
Cost of Conformance
Good
Total Cost of Quality
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Quality Assurance The process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used. – PMBOK ® Guide
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Quality Assurance
Ø Quality assurance (QA) is a process used to evaluate project performance periodically and ensure that the project will satisfy the quality standards of an organization.
Ø The inputs for quality assurance are quality planning, work performance information, quality control measurements, and quality metrics.
Ø The outputs of the process are change requests, project management plan updates, and project document updates.
Ø Quality assurance is accomplished by quality audits, process analysis, and tools and techniques used in quality control.
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Quality Audits
Ø Quality Audits: A quality audit is a review of the quality plan to determine whether the project activities comply with organizational and project policies, processes, and procedures.
Ø A Quality Audit needs to: § Identify all the best practices of the project. § Identify all the limitations of the project. § Identify all the problems in the project.
Ø The Quality Auditor: § Helps the project by providing positive criticism towards the implementation of
project. § Provides positive influence on project processes.
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Quality Control The process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes. - PMBOK
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Quality Control
Ø Quality Control involves monitoring specific phases of product production to determine if they comply with relevant quality standards, and identifying the root causes of unsatisfactory results.
Ø Quality Control also validates that project deliverables and work meet the requirements. This is necessary for final acceptance by stakeholders.
Ø We discuss seven basic quality tools
Tools & Techniques: Seven Basic Quality Tools
1. Cause and effect diagrams – also known as fishbone diagram 2. Check sheets – collection of data about a quality problem 3. Histogram – a bar chart showing a statistical distribution 4. Pareto diagrams – identity the few causes that contributing to a
quality problem 5. Scatter diagrams – plotting ordered pair of two variables to
determine if there is a correlation between the variables 6. Flow charts – showing sequence and branching of steps in a process 7. Control charts – used to determine if a process is stable and
predictable 32Seven Basic Tools of Quality per Ishikawa, in Guide to Quality Control
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Some causes seem to fit in more than one category and it is fine to have the same causes in several bones!
Basic Quality Tools: Cause and Effect Diagrams (Fishbone Diagram)
• Defines the nature of the problem through a “Why” question.
• Brain storming for all root causes that explain the Why? question
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Major Defect
Cause Effect
Schedule
Measurement Personnel EnvironmentEnergy
Machine Method Materials
Categories
Causes
Basic Quality Tools: Check Sheet
Ø Traditionally used for collecting data about a process, and then to discover patterns and trends
Ø Four steps: § Define events and data § Decide on who, what, when, where, how, and why
§ Design the check sheet § Collect data
ØModern tools for collecting data § Bar code scanner §Output from measuring devices
§ Test results § Reports
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Basic Quality Tools: Check Sheet Example
Ø In a healthcare project, the project team needs to understand the reason for hospital admission delays in an emergency department.
Project Management, Process, Technology, and Practice. Ganesh Vaidyanathan
Day REASON Mon Tue Wed Thu Fri
Overload of patients 5 2 2 5 7 Patient discharge problems 2 1 1 2 4 Staff problems 5 2 5 1 2 Lack of rooms 5 2 4 5 5
TOTAL 17 7 12 13 18
Basic Quality Tools: Pareto Charts
Ø Identifies the vital few contributors that account for the most quality problems in a system
Ø The y-axis represents frequency of occurrence and the x- axis represents the reasons
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Problems are charted in order of greatest frequency
0%
25%
50%
75%
100%
31%
62%
85% 100%
In order to lower the amount of delay by 85%, it is sufficient to solve the first three issues!
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Basic Quality Tools: Histogram
Ø Bar chart showing data in a continuous range Ø To prepare a histogram, do the following steps:
1. Select the measures to be examined 2. Collect the data 3. Prepare a frequency table 4. Design the histogram 5. Draw the histogram 6. Interpret the data
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Number of contracts
Number of processing days
Basic Quality Tools: Scatter Diagrams
Ø Identify patterns in testing results and other data:
§ A: No pattern
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x
y
.
..
.
. .
. .
.
Diagram A
. . .
.
.
.
.
. .
Diagram B
x
y
§ B: Positive slope correlation
.
. .
.
.
. .
. .
Diagram D
x
y
§ D: Non-linear correlation
. .
.
. .
.
. .
.
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Diagram C
x
y
§ C: Negative slope correlation
?
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?? ?
? ?
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Linear Regression and Correlation
In process analysis two variables y and x can be functionally correlated. Ø The Independent Variable: The variable x is referred to as the
independent variable. Ø The Dependent Variable: The variable y is referred to as the dependent
variable. Ø The functional relationship: We define the relationship as: y = f(x) Ø The following can be analyzed based on regression models in projects:
§ The activity completion time and number of labors § The cost/time of project completion and type of resource § The cost/time of project completion and geographical location of
project
Example of Linear Correlation Parameters
Linear Correlation y = b + mx where b = y intercept m = Slope of the Line = Δy/Δx r = Correlation Coefficient -1 < r < 1
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y
x
∆x = 2
b2 = -2
∆y = 2
b1= +1
∆x = 1
∆y = 2 m2 = ∆y / ∆x = 1
y = -2 + x
r = 0.90
m1 = ∆y / ∆x = 2
y = 1 + 2x
r = 0.65
*
* *
*
** *
*
*
*
*
* * *
* *
*
Correlation coefficient shows the statistical relationships between two or more values
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Basic Quality Tools: Flow Charts
Ø Used to identify sequence of events in a process
Ø It provides a visual model of how inputs, activities, and outputs of a process are linked.
Ø Basic Symbols Start, End, Input, Output Activity Decision Connection Arrow - Direction of flow
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Start
Request invoice data
Request activity reports
Assemble Monthly Status
Report Data
Prepare Monthly Status
Report
Complete and Correct?
Sign Monthly Status Report
Send to distribution
centre
End
Add data Correct Errors
Provide invoice data
Provide activity data
A B
No No
Yes
Incomplete Incorrect End
Send to distribution
centre
Complete and Correct?
A
Basic Quality Tools: Control Charts
Ø Use of control charts: § A proven technique for improving productivity § Effective in defect prevention § Provides diagnostic information
Ø Objective: Distinguish Assignable from Random variations
1. Random variation or chance: Natural variations in the output of process, created by countless minor factors
2. Assignable variation: A variation whose source can be identified (equipment that needs adjustment, human error, defective materials) and eliminated.
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Sampling
Ø A process can be described by a process distribution, with a mean and variance that will be known only with a complete inspection with 100 percent accuracy. ü 100% inspection is expensive
ü 100% inspection is costly
ü Sometimes impossible
Ø The purpose of sampling is to estimate a variable or attribute measure for the output of the process without doing a complete inspection.
Process distribution
Sampling Distribution
Ø Suppose we want to control the amount of soft drink in a large number of bottles.
Ø If these amounts were arranged on a graph, the frequency distribution would reflect the process variability.
Ø The target value for the process is 2 liters.
Ø Let us take samples of n = 3 bottles at a time and compute the mean amount of soft drink in each sample.
Ø By iterating sampling, we have
Distribution of sample means
μ = 2 Liters
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Control Charts
Nominal
UCL
LCLV ar ia tio
ns
Sample number
(a) Normal – No action
Nominal
UCL
LCL
Va ria
tio ns
Sample number
(b) Run – Take action
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Control Charts
Nominal
UCL
LCLV ar ia tio
ns
Sample number
(c) Sudden change – Monitor
Nominal
UCL
LCLV ar ia tio
ns
Sample number
(d) Exceeds control limits – Take action
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Ø We define
Control Charts Formula
𝝈 = Population Standard deviation 𝒏 = Sample size 𝝈𝑿% =
𝝈 𝒏� =Sample mean Std.
𝑿' = Sample mean average
𝑼𝑪𝑳 = 𝑿' + 𝟑𝝈𝑿%
𝑳𝑪𝑳 = 𝑿' − 𝟑𝝈𝑿%
Control Charts Example
Ø The management of West Allis Industries is concerned about the production of a special metal screw used in many of its projects.
Ø The diameter of the screw is critical to the projects.
Ø The standard deviation of the production process is 0.001.
Ø Data from five samples appear in the accompanying table.
Ø The sample size is 4.
Ø Is the process in statistical control?
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Control Charts for Variables – Example
Observations Sample Number 1 2 3 4
1 0.5014 0.5022 0.5009 0.5027 0.5018 2 0.5021 0.5041 0.5024 0.5020 0.5027 3 0.5018 0.5026 0.5035 0.5023 0.5026 4 0.5008 0.5034 0.5024 0.5015 0.5020 5 0.5041 0.5056 0.5034 0.5047 0.5045
Average 0.5027 𝑿 ': Sample mean
average
Control Charts Example
Ø Based on the formula we have
𝑼𝑪𝑳 = 𝑿' + 𝟑𝝈𝑿%
𝑳𝑪𝑳 = 𝑿' − 𝟑𝝈𝑿%
!"# = %& + ()%* = +. -+./+ (× +. ++1
2� = +. -+2. 56
#"# = %& − ()%* = +. -+./ − (× +.++1
2� = +. -+1. 56
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Control Charts for Variables – Example
Process is NOT in statistical control.
