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EDID 6511 TEAM PROJECT CONTRIBUTION TO BOOK

EDID 6511:FACILITATING AND MANAGING LEARNING

Contribution to Book - Project Management for Instructional Designers

Chapter 10 - Managing Project Quality

By

Lifelong Brain Boosters

Genevieve Cox

Rachele Wagstaffe

Rhonda Grant

Nyeisha George-Minott

Presented in Partial Fulfilment of

EDID 6511 Facilitating and Managing Learning

Date of submission: November 20, 2016

Email: genevieve.cox@my.open.uwi.edu

rachele.wagstaffe@my.open.uwi.edu

rhonda.grant@my.open.uwi.edu

nyeisha.georgeminott@my.open.uwi.edu

University: University of the West Indies (UWI) Open Campus

Course Coordinator: Dr. Camille Dickson-Deane

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EDID 6511 TEAM PROJECT CONTRIBUTION TO BOOK

Table of Contents

Table of Contents
Justification of Proposal.......................................................................................................... 3
Chapter 10.............................................................................................................................. 5
Managing Project Quality.......................................................................................................5
10.2 Development of Quality as Competitive Advantage........................................................5
The Cost of Quality........................................................................................................... 5
The Unfortunate Cost of Poor Quality................................................................................6
10.3 Trade and International Standards...............................................................................6
What is Standardization?...................................................................................................6
ISO Standards.................................................................................................................. 7
10.4 Planning and Controlling Project Quality......................................................................8
Root Cause Analysis.......................................................................................................... 8
Gap Model........................................................................................................................ 8
10.5 Other tools and techniques for planning and controlling the quality of.........................10
a project............................................................................................................................ 10
Scatter Diagram.............................................................................................................. 10
Types of Scatter Diagrams...............................................................................................10
10. 6 Ethics and Employee-Based Quality Management......................................................12
10.7 Issues and trends in quality management....................................................................13
Star Point System............................................................................................................ 13
Benefits of the Star Point System:.....................................................................................14
Benefits of Lean Production:...........................................................................................14
References............................................................................................................................. 16
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Justification of Proposal

Quality management in the 21st century is a never ending process of continuous

improvement that covers every aspect of the design of products and services. It involves
people and processes and is the basis of achieving the concept of perfection in the quest to
improve operations in every field.
Quality management has evolved from the work of the pioneers in the quality
management industry throughout the past 7 decades. Quality principles, practices, and
approaches have improved, and with the improvement of quality techniques, the focus of the
discipline has moved the ownership of quality control from the quality technician to the
trend of quality control being in the hands of the actual worker. The quality management
discipline has continuously improved in its approaches to achieve the goal of winning
customers, and in so doing creates a competitive advantage for organizations, customers, and
employees.
Quality management can cause organizations, customers and employees to foster a
culture that demands excellence, and improving quality can result in many good things
happening. So, we felt that the quality management chapter was a great place to start in
updating the usefulness of the quality of information found in the PM4ID book.

The reason for choosing the chapter on quality management is to improve the content
so that it reflects the current trends, techniques and tools used in quality management today.
Additionally several techniques and tools that are now implemented in quality management
were missing from the chapter and gave reason for the inclusion of such methods.

Based on the sub-heading on Development of Quality as a Competitive Advantage

it was seen that limited information was highlighted on the Cost of Quality and this sparked
our interest and created a rationale for further investigation on this topic. Given recent reports
on product recalls, quality is a critical aspect of product and service development. The
product recalls of prominent consumer electronics companies, e.g. Samsung Galaxy S7 and
E-Cigarettes are prime examples. The implications of quality to globalization, in a world
where increasing legislation is a trend necessitates a proactive approach to creating high
quality goods and services that meets customer needs and expectations.
Quality standards have evolved to address environmental factors that affect the way
business is done. The continual internationalization of quality and the empowerment of the
employee can build virtual quality circles, such as the community of learners who
collaborated on contributing to improvement of this chapter. The inclusion of International
Standards in quality management plans allows for increased benefits for all project
stakeholders. For instance, standardized quality plans allow for improved efficiency which
lowers cost, increases value for the product and promotes greater levels of marketability
across international borders.
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It must be noted that the information that follows on Managing Project Quality should be
considered to be introductory when compared to the vast stores of information that already
exist on this topic. However, the writers hope that the information which follows will be an
impetus to encourage the reader to perform independent studies on quality plans in project
design and management.
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Chapter 10

Managing Project Quality

10.2 Development of Quality as Competitive Advantage

The Cost of Quality

The cost of quality refers specifically to the costs associated with avoiding poor quality or
those incurred as a consequence of poor quality. By conducting cost of quality analysis
project managers can identify and qualify major opportunities for process improvements and
evaluate the importance of quality and improvement for project operations. The cost of
quality can be divided into four parts: prevention costs, appraisal costs, internal failure costs
and external failure costs.

Prevention costs - Those costs expended to keep nonconforming goods and services from
being made and reaching the customer: These include:
Quality planning costs
Process-control costs
Information system costs
Training and general management costs

Appraisal costs - Those costs expended on determining quality levels through the
measurement and analysis to troubleshoot and correct problems. They include:
Test and inspection costs
Instrument measurement costs
Process-measurement and process-control costs

Internal failure costs - Those costs incurred as a result of unsatisfactory quality this is found
before the delivery of a good or service. They include:
Scrap and rework costs
Costs of corrective action
Downgrading costs
Process failures

External Failure costs - Those costs incurred after poor quality goods or services reach the
customer. These include:
Costs due to customer complaints and returns
Goods and services recall costs and warranty and service guarantee claims
Product liability costs
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EDID 6511 TEAM PROJECT CONTRIBUTION TO BOOK

The Unfortunate Cost of Poor Quality

A major news story in 2016 was the case of the consumer electronics company Samsung. The
company had to recall the Galaxy Note 7 devices. According to their website, the affected
devices can overheat and pose a safety risk. Consumers on state and social media retold
stories of these devices that caught fire and lead to personal and property damage. Major
airlines banned them from being stowed in luggage or used onboard. Hundreds of phones in
the U.S. and worldwide had the critically high propensity for battery failure. Following these
reports Samsung and the U.S. Consumer Product Safety Commission (CPSC) announced a
complete recall of all Note 7 devices. It has become illegal to sell any Galaxy Note 7 device,
new or used. Samsung has since moved on to its new flagship device the Galaxy S8, with the
hope of rebuilding consumer trust. (Samsung, 2016)

10.3 Trade and International Standards

What is Standardization?

The European Commission (2016) stated that standards help manufacturers reduce
costs, anticipate technical requirements, and increase productive and innovative efficiency.
The Commission states that standardization in goods and services is imperative if
international trade will be realized. This is so because standardization diminishes barriers to
trade, improves the international market access as well as heightens cooperation among
international trade partners. Itemized benefits of standards include:
Improved market access as a result of increased competitiveness and efficiency
reduces trading costs, simplified contractual agreements, and increases quality. Better
relations with all suppliers and clients derived from the improved safety of consumers create
an immense value for the competitiveness of enterprises working in transport, machinery,
electro-technical products, or telecommunications. Easier introduction of innovative products
provided by interoperability between new and existing products, services, and processes
makes for a better quality of life. For example in the field of eco-design, smart grids, energy
efficiency of buildings, nanotechnologies, security, and eMobility help to bridge the gap
between research and marketable products or services.
-(European Commission, 2016)

ISO Standards
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The International Organization for Standardization (2016) is an independent, non-

governmental organization with a membership of one hundred and sixty three (163) national
standards bodies. The members collectively pool their knowledge of products and processes
and create internationally recognized standards to effect positive change in the
standardization of goods and services. The ISO notes that there are over 21000 International
Standards that have been created. Among these standards, is the ISO suite which addresses
Quality Management. This suite comprises of:

ISO 9001:2015: This standard outlines the requirements of a quality management system
ISO 9000:2015: This standard the basic concepts associated with quality management
ISO 9004:2009: This standard outlines how businesses may create quality systems that
are efficient and effective.
ISO 19011: 2011: This standard sets out guidance on internal and external audits of
quality management systems (ISO, 2016)

Each ISO standard as outlined above was created by giving consideration to Seven Quality
Management Principles as outlined below (ISO, 2015):
Customer Focus
Leadership
Engagement of People
Process Approach
Improvement
Evidence based Decision Making
Relationship Management
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10.4 Planning and Controlling Project Quality

Root Cause Analysis

The root cause analysis is a term used to designate the source of a problem. In medical
analogy, eliminating the symptoms of problems provides only temporary relief; eliminating
the root cause provides long term relief. The 5-why technique is useful in determining the
root cause. Essentially you are trying to redefine the problem statement by asking why at
least 5 times until you get to the root cause.

In this example, 5 whys are asked to get to the root cause of the problem -
Rust stains on laundry

Why is there rust stains on the laundry? Because of rusty water

Why is there rusty water? Because of a rusty water pump
Why is there a rusty water pump? Because the water pump has never been replaced
Why has the pump never been replaced? Because it has never been inspected since
installation
Why has it never been inspected? Because there is no scheduled maintenance plan in place.

Without a proper maintenance plan, the water pump sat uninspected. Years of wear and tear
caused the water pump to become rusty, causing rusty water to pass through the pipes. The
laundry was affected by rust stains as a result. Using rust remover or bleach in the laundry
would only treat the symptoms. Long term relief comes from replacing the rusty pump and
having regular inspections and a maintenance schedule.

Gap Model
Todays consumer wants high quality products as well as high quality customer service.
Many people view quality by comparing features and characteristics of goods and services to
a set of expectations. The aim of the Gap model is to recognize gaps between customer
expectations and the actual services provided and focus on closing the gap and improving
customer service.
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There are several ways to mismanage the creation and delivery of high levels of quality.
These gaps are seen in the model diagram above.

Gap 1 - The discrepancy between customer expectations and management perceptions

Gap 2 - The discrepancy between management perceptions of what features constitute a
target level of quality and the task of translating these perceptions into executable
specifications.
Gap 3 - The discrepancy between quality specifications documented in operating and training
manuals and plans and their implementation
Gap 4 - The discrepancy between actual manufacturing and service delivery system
performance and external communication
Gap 5 - The discrepancy between the customers expectations and perceptions
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10.5 Other tools and techniques for planning and controlling the quality of
a project

Scatter Diagram

According to the PMBOK Guide 5th edition, the scatter diagram is A correlation chart that
uses a regression line to explain or to predict how the change in an independent variable will
change a dependent variable. The scatter diagram is used to show the relationship between
two variables, usually the first variable is independent and the second variable is dependent
on the first variable. If the variables are correlated, the points will fall along a line or curve.
The better the correlation, the tighter the points will hug the line. (Tague, 2005).

Usami (2014) noted the example, for analyzing the pattern of accidents on a highway. The
two variables motor speed and number of accidents are selected, and the diagram is drawn.
Once the diagram is completed, you notice that as the speed of vehicle increases, the number
of accidents also goes up. This shows that there is a relation between the speed of vehicles
and accidents happening on the highway.

Types of Scatter Diagrams

Scatter Diagrams fall into three categories:

Scatter Diagram with No Correlation

Scatter Diagram with Moderate Correlation
Scatter Diagram with Strong Correlation

Scatter Diagram with No Correlation

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EDID 6511 TEAM PROJECT CONTRIBUTION TO BOOK

In this diagram the data point is spread randomly no line can be drawn. Hence there is no
correlation between the variables

Scatter Diagram with Moderate Correlation

In this diagram the data points are a little closer and there is some kind of correlation that
exists between both variables.
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Scatter Diagram with Strong Correlation

In this diagram the data points are close together thereby showing that the variables are
closely related. A line can be drawn to show/follow the pattern.

10. 6 Ethics and Employee-Based Quality Management

Quality does not describe what happens in any one department. The concept of
quality applies to everything that takes place in an organization, and involves among other
things, its ethical practices, how employees are empowered, and the sustainability practices
used to achieve greater efficiency in managing the quality of its processes and products
(www.sjm06.org)
Delivering poor quality to customers is unethical, and not allowing employees who
understand the shortcomings of the system to contribute to the improvement of processes and
product quality is counterproductive to the achievement of sustainable quality standards.
Organizational core values that guide everyone from top management to the lowest level of
the organization are important in managing quality, and the organization loses when the
continuous improvement of quality is not made a priority for all employees (asq.org).
Organizations have an ethical obligation to deliver quality products and services to
their customers. Organizations that fail to follow ethical standards in delivering quality may
incur external costs as noted in section 10.2. Philip Crosby stated that quality is free. What
costs money are the unquality things - all the actions that involve not doing it right the first
time.1 Organizational accounting systems provide only limited information to account for

1 Crosby, P. B. (1979) Quality is free. New York. McGraw-Hill cited in Heizer, J. and Render, B. (2011).
Operations Management. Pearson
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the cost of poor quality, and cannot totally quantify the real cost of inadequate design and
inefficient production processes in all areas of operations.

Juran states that the cost of poor quality are huge, but the amounts are not known
with precision. In most companies the accounting system provides only a minority of the
information needed to quantify this cost of poor quality. It takes a great deal of time and
effort to extend the accounting system so as to provide full coverage.2
Empowering employees can aid organizations in conforming to ethical quality
standards. When nonconformance occurs, it is most times not the workers fault, but that the
product or the system that makes the product was designed wrong, or the employees were not
properly trained to do the job. Building employee-based quality teams with a specially
trained team member called the facilitator to address quality issues, and forming quality
circles which meet regularly to solve work-related problems can help organizations to
effectively manage quality.
Heizer and Render (2011, p.228) lists the following techniques for building employee
empowerment:3
1. Building communications networks that include employees
2. Developing open, supportive supervisors
3. Moving responsibility from both managers and staff to production employees
4. Building high morale organizations
5. Creating such formal organization structures as teams and quality circles.

10.7 Issues and trends in quality management

Quality concepts, and issues in quality management have evolved over the past
century, and emerging trends in the field suggests that the approach to managing quality is
shifting from where the quality professional defined and enforced quality standards towards
that of working in partnership with employees to find the root cause of the problem. The
changing role of the quality professional is gravitating towards a shifting mindset where the
quality technician is seen as a coach, mentor, teacher, and team player. As the role of the
quality manager evolves, the quality manager as part of the team must now work in
partnership to find a solution with employees, and other team members to implement the
solution, and ensure that employees and team members understand the effect of the problem
and solution to the success of the organization4. Organizational success can be ensured by
implementing the Star Point System, which drives necessary changes and improves
integration between functions5, and teams.

2 Juran, J.M. (1992) Juran on quality by design. (The Free Press 1992, p.119) cited in Heizer, J. and
Render, B. (2011). Operations Management. Pearson
3 Heizer, J. and Render, B. (2011). Operations Management. Pearson

4 http://www.qualitymag.com/articles/92184-quality-management-for-the-future
5http://www.newdirectionsconsulting.com/teams2/creating-a-dual-operating-system-the-star-point-system-of-
high-performance-teams/
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Star Point System

The Star Point system creates a dual operating system which allows teams to cross over
functional areas and link processes together.
The Star Point system, along with lean/employee empowerment is a future trend in quality
management. Both methods have employee involvement as a key component, and engage all
concerned in process ownership.

In organizations where integrated quality management is implemented, this can help

to improve process, quality expectations, financial performance, and improve the image of
both employees and the quality professional. The benefits to be derived from lean production
and the star point system will continually drive the organization to sustainable quality
improvement standards.

Benefits of the Star Point System:

Gets more people on the playing field owning critical process work for the team
Links all similar Star Points together so they learn from each other
Provides a leadership role as a Star Point Leader for someone on the bench in a
specialty area
Structures a fast way to communicate with all teams via the Star Point system
Improves the consistent delivery of instruction and materials to all employees
Provides mini-leadership opportunities on the self-directed teams for those in SP
roles
Accumulates deep knowledge among team members in multiple Star Point areas
as rotations occur on the team

Benefits of Lean Production:

Improved Customer Service; delivering exactly what the customer wants when they want it 6.

Improved Productivity; Improvements in throughput and value add per person.

Quality; Reductions in defects and rework.
Innovation; staff are fully involved so improved morale and participation in the
business
Reduced Waste; Less transport, moving, waiting, space, and physical waste.

6 https://toughnickel.com/industries/Benefits-of-Lean-Manufacturing
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Improved Lead Times; Business able to respond quicker, quicker set ups, fewer
delays.
Improved Stock Turns; Less work in progress and Inventory, so less capital tied
up.
All of the above have financial impacts on your business, as well as helping you
become a business that can better react to and meet your customer's needs.(toughnickel.com)

References

Abhijith P. (2014 Nov. 24). Service Gaps and Service Model. Retrieved from: ABS-Service
Marketing Blog:
https://asbservicemarketing1.wordpress.com/2014/11/24/service-gaps-and-service/

Benefits and advantages of lean manufacturing (April, 25, 2016). Retrieved from:
https://toughnickel.com/industries/Benefits-of-Lean-Manufacturing
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EDID 6511 TEAM PROJECT CONTRIBUTION TO BOOK

Collier A. D., & Evans R. J. (2010-2011). OM. Cengage Learning.

Crosby, P. B. (1979) Quality is free. New York. McGraw-Hill cited in Heizer, J. and Render,
B. (2011). Operations Management. Pearson

Employee Empowerment (asq.org website. Retrieved 28 November 2016 from:

http://asq.org/learn-about-quality/employee-involvement/overview/overview.html. Excerpted
from: The Certified Manager of Quality/Organizational Excellence Handbook, pages 45-46.

European Commission. (2016). Benefits of Standards. Retrieved from

https://ec.europa.eu/growth/single-market/european-standards/policy/benefits_en
Halis, M., Akova.)., Tagrif, H. (2007). The relationship between ethics and quality: Conflicts
And common grounds. Retrieved November 25, 2016 from:
http://www.sjm06.com/SJM%20ISSN1452-4864/2_2_2007_November_101-280/2_2_127-
145.pdf

Heizer, J. and Render, B. (2011). Operations Management. Pearson

International Organization for Standardization. (2016). ISO 9000 (Quality Management).

Retrieved from
http://www.iso.org/iso/home/standards/management-standards/iso_9000.htm

International Organization for Standardization. (2015). Quality Management Principles.

Retrieved from http://www.iso.org/iso/pub100080.pdf

Juran, J.M. (1992) Juran on quality by design. (The Free Press 1992, p.119) cited in Heizer,
J. and Render, B. (2011). Operations Management. Pearson

Samsung. (2016 Oct. 17). Samsung shares important information for Galaxy Note 7 users.
Retreived from : Samsung: http://www.samsung.com/latin_en/note7exchange/

Project Management Institute. (2013). A guide to the project management body of knowledge
(5th ed). Newtown Square: Project Management Inc.

Tague, N. R. (2005). The Quality Toolbox, Second Edition, ASQ Quality Press, p. 471
474.

Usami, F. (2014). What is a Scatter Diagram (Correlation Chart)? [Web log post]. Retrieved
from
https://pmstudycircle.com/2014/08/what-is-a-scatter-diagram-correlation-chart/
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Appendix

Group Contribution
Members

Rachele Scatter Diagram and Justification of Proposal

Rhonda What is Standardization?

ISO standards

Genevieve Ethics, and Employee-Based Quality Management

Issues and trends in quality management
Justification of Proposal
Final Editing and Submission

Nyeisha Cost of Quality Management

Root cause analysis
Gap Model
Justification of Proposal