Project Metrics week 6 Critical Thinking

Project Metrics, Monitoring, and Control

Module 6: Project Quality Management

Module Introduction

Readings

Required

• Chapter 20 in Project Management: A Systems Approach to Planning, Scheduling and Controlling

Recommended

• Chapter 8, Project Time Management in A Guide to the Project Management Body of Knowledge (PMBOK).

For Your Success

In this module you should focus on understanding how project quality management can be incorporated into projects with continuous process improvement activities conducted throughout the project. The readings in the module cover various aspects required to meet product or project quality requirements. As you consider the cases in this week’s readings, you will focus on the essential requirements for an effective project quality management and how cost or quality can be part of an effective project management system.

Learning Outcomes

. Define Quality.

. Explain and summarize the cost of Quality.

. Apply cause-and-effect analysis.

. Explain the use of Six Sigma, the DMAIC processes.

. Differentiate between Lean Six Sigma and DMAIC.

Page 1 of 2PJM535 - Module 6: Project Quality Management

9/19/2016https://coursecms.csuglobal.edu/file/ed1d4003-dfb2-4a99-948f-6ddaedb0a255/1/production/PJM535_6/pjm535...

4. Six Sigma: the DMAIC processes

What is Six Sigma? It is a statistical term:

◦ Sigma (s) is a measure of frequency distribution 3 sigma covers 99.73% of a normal distribution 6 sigma covers 99.9999998%

The term Six Sigma was first espoused by Motorola. In the 1990’s Six Sigma was thought more of another Total Quality Management (TQM) or Quality tool, however; recent success stories from companies such as General Electric, Sony, AlliedSignal and others have captured the attention of the business world. Six Sigma strategy involves the use of statistical tools within a structured methodology for gaining the knowledge needed to create products and services better, faster and cheaper than the competition (Kerzner, 2009).

The primary focus of the Six Sigma process improvement methodology is known as DMAIC (Define, Measure, Analyze, Improve, and Control). In this methodology, defects are removed by careful examination from a Six Sigma team made up of cross-functional positions having different lines of sight into the process.

The thing a project manager should keep in mind is that a project team follows the DMAIC methodology to determine the root cause(s) of the defects. The team uses data and appropriate numerical and graphical analysis tools to raise awareness of process variables generating defects.

Note: VOC is the Voice of the Customer

Click to Enlarge

Click Here to Begin

Check Your Understanding

References:

Kerzner, H. (2013). Project management: A systems approach to planning, scheduling and controlling (11th ed.). Hoboken, N.J.

Kerzner, H. (2009). Project management: A systems approach to planning, scheduling and controlling (10th ed.). New York, NY:

John Wiley & Sons.

Project Management Institute Standards Committee. (2008). A guide to the project management body of knowledge (4th ed.).

Newtown Square, PA: Project Management Institute.

Page 2 of 3PJM535 - Module 6: Project Quality Management

9/19/2016https://coursecms.csuglobal.edu/file/ed1d4003-dfb2-4a99-948f-6ddaedb0a255/1/production/PJM535_6/pjm535...

3. Cause-and-effect Analysis

Once a problem is identified in a project, the next step is to determine the cause or causes of the problems. The cause-and-effect relationship is not always clear, so a certain amount of analysis is required to determine the causes of the problems. The cause-and-effect analysis is a tool that uses diagramming techniques to reveal the relationship between the effect and the causes.

There are six steps to perform in a cause-and-effect analysis:

Step 1. Identify the problem. Step 2. Select interdisciplinary brainstorming team. Step 3. Draw the problem box and prime arrow. The prime arrow functions as the foundation for the major categories. Step 4. Specify major categories. Step 5. Identify defect causes. Step 6. Identify corrective action.

Each cause will need to be categorized. The exercise that works best in identifying the causes you can take action upon is as follows:

. Each cause will need to be determined if it is a Constant, meaning there is nothing that you can do about it.

. The next category that a cause can be placed into is Noise, meaning that you might be able to do something about it with a great amount of effort.

. The final category that a cause can be placed in is Experimental, meaning that you can do something about that cause right away, or, as some project managers might say, those causes are low hanging fruit.

The following video on cause and effect should provide you with some guidance on how to use the tool to identify a corrective action on your problem:

Click to Enlarge

(Source: Kerzner, 2009)

(Source: http://youtu.be/bNDlg1h-za0)

Cause and Effect Diagram Training Video (aka Fishbone Diagram & Ishikawa Diagram)

Page 2 of 3PJM535 - Module 6: Project Quality Management

9/19/2016https://coursecms.csuglobal.edu/file/ed1d4003-dfb2-4a99-948f-6ddaedb0a255/1/production/PJM535_6/pjm535...

2. Cost of Quality

In project management, the cost of quality is known as the measurement of meeting customers’ requirements. This cost of quality can be classified as the cost of conformance and the cost of non-conformance. The conformance cost can include items such as verification, testing, maintenance, audits, indoctrination, validation and others. Nonconformance costs include items such as product recalls, rework, waste, warranty repairs, recalls, customer complaints and others (Kerzner, 2009). Attempting to save money by reducing conformance costs will prove unwise. A project manager should always focus on building the product or service right the first time.

To give you a better idea of what the cost of quality contains, Kerzner presents other common methods to classify costs that you should be aware of when considering the cost of quality in a project:

Prevention Costs - Up-front costs oriented toward customer satisfaction with first and all following units of products following without defects.

Appraisal cost – Cost associated with evaluation of product to assert how well all of the requirements of the customer have been met.

Internal failure costs – Costs associated with the failure of the processes to make products acceptable to the customer, before leaving the control of the organization.

External failure costs – costs associated with the determination by the customer that his requirements have not been satisfied.

The following website contains a discussion of a cost of quality and the importance of putting results at the bottom line:

The following website contains a discussion of a cost of poor quality and the impact it has on the bottom line, but more importantly lowering the total cost of quality:

(Source: http://www.youtube.com/watch?v=SpGFeTl5Pz0&feature=share&list=PL51E1080C3392F71F&index=2 )

Cost of Quality

Page 2 of 3PJM535 - Module 6: Project Quality Management

9/19/2016https://coursecms.csuglobal.edu/file/ed1d4003-dfb2-4a99-948f-6ddaedb0a255/1/production/PJM535_6/pjm535...

1. Define Quality

Established organizations would agree that they cannot accurately define quality because quality is defined by the customer. However, the most common definition of quality in project management is to meet or exceed the expectations of the customer at a cost that represents value. There are other quality definitions provided by organizations, such as International Organization for Standardization (ISO). The ISO 9000 definition of quality is “the totality of feature and characteristics of a product or service that bears on its ability to satisfy stated or implied needs” (Kerzner, 2013, pp. 1017-1018).

The Project Management Body of Knowledge (PMBOK) describes quality as “The degree of which a set of inherent characteristics fulfills requirements” (PMOK, 2008, p. 437). American Society of Quality (ASQ) defines quality as a subjective term for which each person or sector has its own definition. From these definitions, you can see that Quality is a much more complicated term than it appears. Dictionary definitions are not always accurate in assisting a project professional to understand the concept. Every quality expert defines quality in a somewhat different way. Most organizations view quality more as a continuous improvement process where lessons learned are used to modify future products are services (Kerzner, 2009).

The following video on project management discusses important considerations in meeting quality targets. The video lesson focuses on improving project results.

(Source: http://www.123rf.com)

(Source: http://youtu.be/TDj0RBjYAdk)

How to Meet Your Quality Targets - Project Management

Page 2 of 3PJM535 - Module 6: Project Quality Management

9/19/2016https://coursecms.csuglobal.edu/file/ed1d4003-dfb2-4a99-948f-6ddaedb0a255/1/production/PJM535_6/pjm535...