Control

The process of comparing actual performance with planned performance, analyzing

variances, evaluating possible alternatives, and taking appropriate corrective action as
needed.
Control Charts
A graphic display of the results, over time and against established control limits, of a
process. They are used to determine if the process is in control or in need of adjustment.
Corrective Action
Changes made to bring expected future performance of the project into line with the plan.
Cost of Quality
The cost incurred to ensure quality. Includes quality planning, quality control, quality
assurance, and rework.
Pareto Diagram
A histogram ordered by frequency of occurrence that shows how many results were
generated by each identified cause.
Performance Reporting
Collecting and disseminating information about project performance to help ensure
project progress.
Project Quality Management
The processes required to ensure that the project will satisfy the needs for which it as
undertaken.
The process of evaluating overall project performance
on a regular basis to provide confidence that the
Quality
project will satisfy the relevant quality standards.
Assurance (QA)
Also, the organizational unit that is assigned
responsibility for quality assurance.
The process of monitoring specific project results to
determine if they comply with relevant quality
Quality Control
standards and identifying ways to eliminate causes of
(QC)
unsatisfactory performance. Also, the organizational
unit that is assigned responsibility for quality control.
A document setting out the specific quality practices,
resources and sequence of activities relevant to a
Quality Plan
particular product, service, contract or project. (ISO8402)
The overall quality intentions and direction of an
Quality Policy organization as regards quality, as formally expressed
by top management. (ISO-8402)
Quality
Identifying which quality standards are relevant to the
Planning
project and determining how to satisfy them.
Total Quality
A common approach to implementing a quality
Management
improvement program within an organization.
(TQM)

Quality Planning

The process of identifying which quality standards are relevant to the project and
determining how to satisfy them.

Input includes: Quality policy, scope statement, product description, standards and
regulations, and other process Output.

Methods used: benefit / cost analysis, benchmarking, flowcharting, and design of

experiments

Output includes: Quality Management Plan, operational definitions, checklists, and

Input to other processes.

Quality Assurance

The process of evaluating overall project performance on a regular basis to provide

confidence that the project will satisfy the relevant quality standards.

Input includes: Quality Management Plan, results of quality control measurements, and
operational definitions.

Methods used: quality planning tools and techniques and quality audits.

Output includes: quality improvement.

Quality Control

The process of monitoring specific project results to determine if they comply with
relevant quality standards and identifying ways to eliminate causes of unsatisfactory
performance.

Input includes: work results, Quality Management Plan, operational definitions, and
checklists.

Methods used include: inspection, control charts, pareto diagrams, statistical sampling,
flowcharting, and trend analysis.

Output includes: quality improvements, acceptance decisions, rework, completed

checklists, and process adjustments.

Quality Management Concepts

Definition of Quality: (from Ireland book)

Quality is the totality of features and characteristics of a product or service that bear on
its ability to satisfy stated or implied needs.

Some goals of quality programs include:

o
Fitness for use. (Is the product or service capable of being used?)
o
Fitness for purpose. (Does the product or service meet its intended purpose?)
o
Customer satisfaction. (Does the product or service meet the customer's
expectations?)
o
Conformance to the requirements. (Does the product or service conform to the
requirements?)

Quality Movements
Deming Prize (Overseas)
o
Administered by the Union of Japanese Scientists and Engineers (JUSE)
o
Awarded to overseas companies that demonstrate a superior quality program
o
Checklist includes: organization's policy, structure, education, collection,
dissemination, and use of information, analysis of problems, establishment and use of
standards, management system, quality assurance, effects, and future plans. (See Ireland,
Appendix A)
o
Deming's 4 step cycle for improvement: Plan, Do, Check, Act
o
Deming's major points for implementing quality
1.
Participative approach
2.
Adopt new philosophy
3.
Cease mass inspection
4.
End awards based on price
5.
Improve production and service
6.
Institute leadership
7.
Eliminate numerical quotas

8.
9.

Education and training

Encourage craftsmanship

Malcolm Baldrige
o
The Malcolm Baldrige National Quality Improvement Act was established in Aug.
20, 1987.
o
Purpose of the act was to promote quality awareness; to recognize quality
achievements of U.S. companies, and to publicize successful quality strategies.
o
Covers the following seven categories: (See Ireland, Appendix B)
1.
Leadership
2.
Information and Analysis
3.
Strategic Quality Planning
4.
Human Resources
5.
Quality Assurance
6.
Results
7.
Customer Satisfaction
Department of Defense: Total Quality Management (TQM)
o
Quality is key to maintain level of readiness
o
Quality is vital to our defense, requires a commitment by all personnel
o
Quality is a key element of competition
Philip Crosby (ITT): Quality is Free
o
Four absolutes of quality Management:
1.
Quality is conformance to requirements.
2.
The system of quality is prevention.
3.
The performance standard is zero defects.
4.
The measurement of quality is the price of nonconformance.
o
14 steps to improving quality.
1.
Management commitment
2.
Quality improvement team
3.
Measurement
4.
Cost of quality
5.
Quality awareness
6.
Corrective action
7.
Zero defects planning
8.
Employee education
9.
Zero defects day
10.
Goal setting

11.
12.
13.
14.

Error cause removal

Recognition
Quality councils
Do it over again

Juran
o
Attitude breakthrough
o
Identify vital new projects
o
Knowledge breakthrough
o
Conduct the analysis
o
Institute change
o
Overcome resistance and institute controls

Quality Concepts
Zero Defects
o
Implies that there is no tolerance for errors within the system.
o
The goal of all processes is to avoid defects in the product or service.
o
Similar to six sigma: almost zero defects
The Customer is the Next Person in the Process
o
The internal organization has a system that ensures the product or service is
transferred to the next person in the process in a complete and correct manner.
o
The product or service being built is transferred to another internal party only
after it meets all the specifications and all actions at the current work station.
o
Avoids incorrectly assembled components and poor workmanship.
Do the Right Thing Right the First Time (DTRTRTFT)
o
Implies that it is easier and less costly to do the work right the first time than it is
to do it the second time.
o
Entails the training of personnel to ensure sufficient skills and tools to correctly
complete the work.
Continuous Improvement Process (CIP) (From Japanese word, Kaizen)
o
A sustained, gradual change to improve the situation.
o
Differs from innovation -- does not make a sudden jump to a plateau where it
matures over time. (see Ireland, I-6)
o
Focuses on 11 principles: constancy of purpose, commitment to quality, customer
focus and involvement, process orientation, continuous improvement, system-centered

management, investment in knowledge, teamwork, conservation of human resources,

total involvement, and perpetual commitment.

Project Characteristics/Attributes that bear on

quality
Producibility (technology required)
o
Ability of a product or service to be produced within the existing technology,
human resources, skills, knowledge, and materials at a cost compatible with market
expectations.
o
Producibility is one of the most critical aspects of developing any new product.
Usability (effort expended to use)
o
The ability of a product to perform its intended function for the specified user
under the prescribed conditions.
o
Usability is determined by examining performance, function and condition of a
product.
Reliability (MTBF)
o
The degree to which a unit of equipment performs its intended function under
specified conditions for a specified period of time.
o
Computed by 2 methods of Mean-Time-Between-Failure (MTBF):

Predicted MTBF: Based on a mathematical computation of a component

failure using a tree diagram to determine sequential failure aspects of the component
rated periods. Least desirable method because it cannot account for environmental
variations that can degrade components to lower rates.

Actual MTBF: Use of field collected data to compute the failures under
realistic operating conditions to find the average time between failure. The actual
reliability will seldom be the same as the predicted reliability.
Maintainability (Mean-Time-To-Repair: MTTR)
o
The ability of a unit to be restored within a specified time to its performance
capability under the environmental operating conditions within a specified, average
period of time.
Availability (Probability of performance)
o
The probability of a product being capable of performing a required function
under the specified conditions when called upon.
o
The key parts of availability are reliability and maintainability.
Operability (Expected conditional use)
o
The ability of a product to be operated by human resources for specified periods
of time under given conditions without significant degradation of the output.

 Flexibility (Expected variable use)

o
The ability of a product to be used for different purposes at different capacities
and under different conditions.
Social Acceptability (Environment and safety)
o
The degree of compatibility between the characteristics of a product or service
and the prevailing values and expectations of the relevant society
o
The degree to which a public accepts a product for use.
Affordability (Return for quality required)
o
The ability to develop, acquire, operate, maintain, and dispose of a product over
its life.

Cost of Quality

Cost of quality is the total price of all efforts to achieve product or service quality. This
includes all work to build a product or service that conforms to the requirements as well
as all work resulting from nonconformance to the requirements.

The typical project should have a goal of between 3-5% of the total value as the cost of a
quality program depending on the type of project and its total dollar value.
o
Cost to build right the first time
o

Training programs

Statistical Process Control (SPC) Costs

Cost of a quality system is often viewed as a negative cost because errors in work have
been traditionally accepted as a cost of doing business.

Cost of Conformance

Planning

Training and indoctrination

Process control

Field testing

Product design validation

Process validation

Test and evaluation

Quality audits

Maintenance and calibration

Cost of Nonconformance

Scrap

Rework

Expediting

Additional material or inventory

Warranty repairs or service

Complaint handling

Liability judgments

Product recalls

Product corrective actions

Cost of Non-Quality

Cost of non-quality is estimated to be 12-20% of sales.

Waste of time and materials

Rework of poor quality products

Additional material

Delays in schedule

Product and service image

Corporate image

Major Cost Categories of Quality

Prevention Cost - cost to plan and execute a project so that it will be error-free

Appraisal Cost - cost of evaluating the processes and the Output of the processes to
ensure the product is error-free

Internal Failure Cost - cost incurred to correct an identified defect before the customer
receives the product

External Failure Cost - cost incurred due to errors detected by the customer. This
includes warranty cost, field service personnel training cost, complaint handling, and
future business losses.

Measurement and Test Equipment - capital cost of equipment used to perform

prevention and appraisal activities.

Opportunities for Reducing Cost

Just-in-Time - concept of zero inventory in a manufacturing plant. Reduces cost of

storing and moving parts; cost of inventory; cost of parts damaged through handling, etc.

Product Life Cycle Cost - concept of reducing overall product life cycle cost by linking
the cost areas of the product life cycle (R&D, acquisition, and operations and
maintenance) and considering each one's cost implications for the other.

Product Maturity - Identifying, documenting, and correcting failures early helps products
achieve stability earlier in the life cycle. (see Ireland, IV-9)

Areas of Waste in Projects

o
Waste in rejects of completed work
o
Waste in design flaws
o
Waste in work-in-process
o
Waste in motion for manpower (under-trained employee)
o
Waste in management (Improper direction of work)
o
Waste in manpower (Misplaced or waiting workers)
o
Waste in facilities (Ordering excess material)
o
Waste in expenses (Unnecessary meetings, travel)

Statistical Concepts and Quality

Tools
Statistical Quality Control

Method used to measure variability in a product for evaluation and corrective actions

Normal Distribution Curve

o
Six standard deviations (+3 and -3) encompass 99.73% of area
o
Four standard deviations (+2 and -2) encompass 95.46% of area
o
Two standard deviations (+1 and -1) encompass 68.26% of area

Quality Control Systems

Process Control Charts
o
Statistical techniques used for monitoring and evaluating variations in a process.
o
Identifies the allowable range of variation for a particular product characteristic
by specifying the upper and lower bounds for the allowable variation.
o
Upper Control Limit (UCL), Lower Control Limit (LCL), process average: the
mean of the averages for the samples taken over a long period of time. (see Ireland V-2
through V-7)
o
Visual patterns indicating out-of-control state or a condition that requires
attention:
1.
Outliers: a sample point outside the control limits
2.
Hugging control limit: a series (run) of points that are close to a control
limit. Requires correction to prevent data points from going outside the control limit.
3.
Cycle: A repeating pattern of points.
4.
Trend: A series of consecutive points which reflect a steadily increasing or
decreasing pattern.
5.
Run: A series of consecutive points on the same side of the average. Rule
of thumb: considered abnormal if 7 consecutive points, 10 of 11, 12 of 14 data points are
above or below the process average.
Acceptance Sampling
o
Used when expensive and time-consuming to test 100%. Random sampling may
be used to check the characteristics and attributes of a given lot of goods.
o
Determines whether or not the lot conforms to the specifications or standards
necessary to support the overall project requirements.
o
Inspection and test standards must be established to ensure that procedures are
adequate to determine whether a lot is conforming or nonconforming to specifications.
o
Standards must also be set for qualification of the sampled lot.
o
Important to select a sample size that will provide sufficient information about the
larger lot of goods without costing a great deal of money.
o
Must determine the number of allowable defects before lot is rejected. (see
Ireland V-8)

Tools of Quality Management

Pareto Diagram

Ranks defects in order of frequency of occurrence to depict 100% of the defects.

(Displayed as a histogram)
o
Defects with most frequent occurrence should be targeted for corrective action.
o

80-20 rule: 80% of problems are found in 20% of the work.

Does not account for severity of the defects

Cause and Effect Diagrams (fishbone diagrams or Ishikawa diagrams)

o
Analyzes the Input to a process to identify the causes of errors.
o
Generally consists of 8 major Input to a quality process to permit the
characterization of each input. (See Ireland, V-13)
Histograms
o
Shows frequency of occurrence of items within a range of activity.
o
Can be used to organize data collected for measurements done on a product or
process.
Scatter diagrams
o
Used to determine the relationship between two or more pieces of corresponding
data.
o
The data are plotted on an "X-Y" chart to determine correlation (highly positive,
positive, no correlation, negative, and highly negative) (See Ireland, V-14)
Other Tools
o
Graphs
o
Check sheets (tic sheets) and check lists
o
Flowcharts

Quality and People in Project Management

Management defines type and amount of work

Management is 85% responsible for quality

The employee can only assume responsibility for meeting the requirements of completing
the work when the employee:
o
Knows what's expected to meet the specifications
o

Knows how to perform the functions to meet the specifications

Has adequate tools to perform the function

Is able to measure the performance during the process

Is able to adjust the process to match the desired outcome

Project quality team consists of:

o
Senior Management

Project Manager

Project Staff

Customer

Vendors, suppliers, and contractors

Regulatory Agencies

Reviews & Audits

o
Management reviews determine the status, progress made, problems, and
solutions
o
Peer reviews determine whether proposed or completed work meets the
requirements
o
Competency center reviews are used to validate documentation, studies, and
proposed technical solutions to problems.
o
Fitness reviews and audits determine the fitness of a product or part of a project.
(addresses specific issues)
The collection of quantitative data for statistical analysis is the basis for proactive
Management by FACT rather than by EXCEPTION. Management by exception lets
errors and defects happen before Management intervention.