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Project Quality

Management

April 29th,Improvement
Continuous 2009
What is Quality?

Quality is fitness for use


(Joseph Juran)
Quality is conformance to requirements
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy
the needs and expectations of the customer
Quality Planning & Project Management

Quality can be defined as meeting


the customer's expectations or
exceeding the customer expectations
achieved by way of deliverables
and/or activities performed to produce
those deliverables.

Continuous Improvement
Project Quality Plan
can be defined as a set of activities planned
at the beginning of the project that helps
achieve Quality in the Project being executed.
The Purpose of the Project Quality Plan is
to define these activities / tasks that intends
to deliver products while focusing on
achieving customer's quality expectations.

Continuous Improvement
Project Quality Plan
These activities / tasks are defined on the
basis of the quality standards set by the
organization delivering the product.
Project Quality Plan identifies which Quality
Standards are relevant to the project and
determines how can they be satisfied. It
includes the implementation of Quality
Events (peer reviews, checklist execution) by
using various Quality Materials (templates,
standards, checklists) available within the
organization.
Continuous Improvement
Project Quality Plan
The holding of the Quality Event is termed
as Quality Control.
As an output of the various activities,
Quality Metrics or Measurements are
captured which assist in continuous
improvement of Quality thus adding to the
inventory of Lessons Learned.
Quality Assurance deals in preparation of
the Quality Plan and formation of organization
wide standards.
Continuous Improvement
Guidelines to write the Project Quality Plan

Project Quality Plan should be written with


the objective to provide project management
with easy access to quality requirements and
should have ready availability of the
procedures and standards thus mentioned.
The following list provides you the various
Quality Elements that should be included in a
detailed Project Quality Plan:

Continuous Improvement
Guidelines to write the Project Quality Plan

Management Responsibility. Describes the


quality responsibilities of all stakeholders.
Documented Quality Management System.
This refers to the existing Quality Procedures
that have been standardized and used within
the organization.
Design Control. This specifies the
procedures for Design Review, Sign-Off,
Design Changes and Design Waivers of
requirements. Continuous Improvement
Guidelines to write the Project Quality Plan
Document Control. This defines the process to
control Project Documents at each Project Phase.
Purchasing. This defines Quality Control and
Quality Requirements for sub-contracting any part /
whole part of the project.
Inspection Testing. This details the plans for
Acceptance Testing and Integration Testing.
Nonconformance. This defines the procedures to
handle any type of nonconformance work. The
procedures include defining responsibilities,
defining conditions and availability of required
documentation in such cases. Continuous Improvement
Continuous Improvement
Guidelines to write the Project Quality Plan
Corrective Actions. This describes the procedures for
taking Corrective Actions for the problems encountered
during project execution.
Quality Records. This describes the procedures for
maintaining the Quality Records (matrices, variance
reports, executed checklists etc) during project execution
as well as after the project completion.
Quality Audits. An internal audit should be planned and
implemented during each phase of the project.
Training. This should specify any training requirements for
the project team.

Continuous Improvement
Evaluating your Project Quality Plan

For quality assurance to be effective, two things


must be ensured:
First, the Project Quality plan must be
sufficient to achieve the required quality
standards expected of the organization.
In this regard the plan must not only be
specific and detailed listing all quality
requirements and standards, but also include all
the steps taken to ensure that those
requirements and standards are met.
Continuous Improvement
Evaluating your Project Quality Plan

Secondly, quality assurance (i.e. final product


testing) should be independent of the project
itself (as well as the project manager).
This comes down from the project
management guidelines for effective quality
assurance, and builds on a broad-based,
organizational approach to standards-based
product testing.

Continuous Improvement
The development of a Project Quality Plan
The development of a Project Quality Plan is a
team process that depends as much on
communicating information as it does on planning.
The key objective is to create a cohesive dialog
and subsequently develop awareness of potential
quality issues assurance. Based on this awareness,
project managers can prepare plans and actions to
counter any weaknesses or deficiencies in the
project execution, thus ensuring that all quality
standards are met effectively.

Continuous Improvement
Evolution of Quality Management

Inspection Salvage, sorting, grading, blending, corrective


actions, identify sources of non-conformance
Develop quality manual, process performance
Quality data, self-inspection, product testing, basic
Control quality planning, use of basic statistics,
paperwork control.
Quality systems development, advanced quality
Quality
planning, comprehensive quality manuals, use of
Assurance quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.

TQM Policy deployment, involve supplier & customers,


involve all operations, process management,
performance measurement, teamwork, employee
involvement.
Demings Chain Reaction

Improve Quality
Provide jobs and Cost decreases because
more jobs of less rework, fewer
mistakes, fewer delays,
snags, better use of
Stay in business machine time and
materials

Productivity improves
Capture the market with
better quality and lower price
The Deming Cycle or PDCA Cycle

PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT DO
Adopt the change as a Implement the change on
permanent modification a small scale and measure
to the process, or the effects
abandon it.
CHECK
Study the results to
learn what effect the
change had, if any.
W. Edwards Demings 14
Points
1) Create constancy of purpose towards improvement of
product and services.
2) Adopt the new philosophy. We can no longer live with
commonly accepted levels of delays, mistakes,
defective workmanship.
3) Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis of
price tag.
W. Edwards Demings 14
Points
Find problems. It is managements job to work
5) continually on the system.
Institute modern methods of training on the job.
6)
Institute modern methods of supervision of
7) production workers. The responsibility of foremen
must be changed from numbers to quality.
Drive out fear that everyone may work effectively for
8) the company.
W. Edwards Demings 14
Points
Break down barriers between departments.
9)
Eliminate numerical goals, posters and slogans for
10) the workforce asking for new levels of productivity
without providing methods.
Eliminate work standards that prescribe numerical
11)
quotas.
Remove barriers that stand between the hourly
12)
worker and his right to pride of workmanship.
W. Edwards Demings 14
Points
13) Institute a vigorous programme of education and
retraining.
14) Create a structure in top management that will push
everyday on the above 13 points.
Demings System of Profound Knowledge

Appreciation for Knowledge


system about variation

Theory about Knowledge of


knowledge psychology
Joseph M. Juran and the Cost Of Quality

2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers

Gold in the Mine


Joseph M. Juran and the Cost Of Quality

Costs
Total Unavoidable
Costs costs

Avoidable
costs

100% defective Point of Enough


quality
What is TQM?
Concern for
Constant drive Management employee
for continuous by Fact involvement and
improvement and development
learning.

Organisation
Passion to deliver response
Result Focus customer value / ability
excellence
Partnership
Actions not just
perspective
words (internal /
Process
(implementation) external)
Management
LEARNING AND TQM

Learning

Process Improvement

Quality Improvement

Customer Shareholder Employee


Satisfaction Satisfaction Satisfaction
BASIC PRINCIPLES OF TQM

Approach Management Led

Scope Company Wide

Scale Everyone is responsible for Quality

Philosophy Prevention not Detection

Standard Right First Time

Control Cost of Quality

Theme On going Improvement


FOUR KEY PRINCIPLES

Measure quality so you can affect it

Focus on a moving customer

Involve every employee

Think long term - Act short term


THE CASE FOR QUALITY
1 Success of competitors who take quality seriously

2 Rising expectations of customers

3 Quality differentiates companies from the


competition

4 Narrowing of supplier bases by quality conscious

companies

.
THE CASE FOR QUALITY
5 Growing evidence that growth in market
share comes from sustained quality.

6 Cost advantages

7 High cost of catastrophic failure

8 Inspection poor substitute for right first time


SEVEN DEADLY SINS OF TQM

Quality kept as a separate activity


Gluttony: Everything is a #1 Priority
Lust: Motorola Results
Anger: People, Not Processes
Envy and Excuses: But, We're Different
Greed: First Cost vs. Return
Sloth: All Talk, No Action

Teaching to the test

Booz-Allen & Hamilton


IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct 94)
1988 Motorola 373.0%
1988 Westinghouse (CNFD) - 49.6%
1989 Xerox (BPS) 75.9%
1990 General Motors 1.6%
1990 Federal Express 10.6%
1990 IBM (IBM Rochester) - 34.9%
1991 Selectron 526.9%
1992 AT&T (UCS) 32.2%
1992 AT&T (TSBU) 32.2%
1992 Texas Instruments (DS&E) 106.8%
1993 Zyta 8.4%
1994 Eastman Chemical 18.5%

Total Stock Value 23016 (91.8% growth)


Standard & Poor 500 Stock value 15911 (32.6% growth)
Source: US Dept. of Commerce Study 1995
Q
Project Quality Assurance
Project Quality Plan
PQP
Project Quality Plan
Definition

The project quality plan is a documented description


of the project management system and must be
approved by the AEM, in part to demonstrate his
commitment to quality but primarily it is the means by
which technical and administrative authorities are
delegated through out the project.

All projects shall have quality plan.

Project engineer shall develop and update the PQP.


.
Relationships between project quality plans

PQP
ADCO

PQP
Designer

PQP Suppliers
construction quality plans
contractor
Preparation of a project quality plan

Confirm project objectives

Plan the project allocate resources

Identify critical activities

Define standards and controls

Audits

Close-out
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

1. COVER SHEET + REVISION CONTROL

1.1 Document purpose


1.2 Policy statement

2.INTRODUCTION

2.1 Background
2.2 Project Scope
2.3 Project Objectives & Constraints
2.4 QA Standards (Consider putting in Document purpose)
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

3. EXECUTION STRATEGY

3.1 Project Management risks.


3.2 Critical Activities.
3.3 Control Strategy.
3.4 Cost & Schedule.
3.5 HSE Plan.
3.6 Commissioning & Hand-over.
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

4.ORGANISATION, RESPONSIBILITES & INTERFACES


4.1 Table with names
4.2 External interfaces
4.3 Definition of specific roles and responsibilities.

5. QUALITY REFERENCE SYSTEM


5.1 Controlling Documents
5.2 Applicable Procedures (Check list based)

6. INTEGRATION OF CONTRACTORS & SUPPLIERS


6.1 Define Contractor interfaces.
6.2 Contractor + Supplier Quality System.
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

7.AUDITS & REVIEWS


This section should include schedule for:
* PHSER * HSEIA
* HAZOP * VE
* TECHNICAL REVIEWS * QA AUDITS
* LESSONS LEARNT REVIEW.

8. QUALITY IMPROVEMENT

8.1 LESSONS LEARNT


8.2 CLOSE-OUT REPORT
CONTENTS OF TYPICAL PROJECT QUALITY PLAN

PREPARATION & APPROVALS:

PREPARE: PE, PM and / or Team Leaders


ENDORSE: AEM
APPROVE: EPM

Timing

The nominated PE, PM or Team leader shall develop the PQP


immediately after receiving the PID document and approval of the
project in the Business Plan.
Quality is a Journey,
not a Destination
JUDGING QUALITY
A project quality is usually judged on the following criteria:
Was the project completed on time?
Was the project completed within budget?
Did the system meet my needs when it was delivered?
Is it stable?
From a technical perspective, project quality is usually judged
as:
Does the system comply with corporate standards for such
things as user interface, documentation, naming standards etc.?
Is the technology stable?
Is the system well engineered so that it is robust and
maintainable?
Project Quality Management
Project Quality Management
Processes required to ensure that the project will
satisfy the needs for which it was designed
Includes all activities of the overall management
function that determine the quality policy,
objectives, and responsibilities. These are
implemented by quality planning, quality control,
quality assurance, and quality improvement.
Chapter 8 Project Quality Management- 3 major processes:

Quality Planning identifying quality standards that are


relevant to the project (Plan); Project Manager, Project Owner
Quality Assurance evaluating overall project performance
to provide confidence that project will satisfy relevant quality
standards (Implement or Execution); Project Team
Quality Control monitoring specific results to comply with
quality standards and eliminating unsatisfactory performance
causes (Check or Control); Project Manager, Project Team
Compatible with ISO 9000 and 10000 series
Proprietary and non-proprietary approaches (total quality
management
Must address the management of the project and the
product of the project
Project Quality Management
Quality the totality of characteristics of an entity that bear on its ability to satisfy
stated or implied needs
Critical aspect is to turn implied needs into stated needs through
project scope management
Do not confuse with grade category or rank given to entities having
the same functional use but different requirements for quality
Customer satisfaction conformance to specifications (must
produce what is stated) and fitness for use (must satisfy real needs)
Prevention avoid mistakes vs. cost of correction
Management responsibility requires participation of team;
responsibility of management to provide resources
Processes within phases plan-do-check-act cycle
Recognize that the investment in product quality improvements may be borne
by the performing organization since the project may not last long enough to
reap reward
Project Quality Management
Quality Planning
Identify quality standards are relevant and how to satisfy
Inputs to Quality Planning
Quality Policy the overall intentions and direction of
an organization with regard to quality as expressed by
management
Scope Statement
Product Description
Standards and Regulations
Other Process Outputs processes from other
knowledge areas (procurement planning)
Project Quality Management
Tools &Techniques for Quality Planning
Benefit/Cost Analysis consider trade-offs, benefit is less rework; cost is
expense of project management activities
Benchmarking comparing actual or planned practices to those of other
projects
Flowcharting
Cause and effect diagramming (Ishikawa or fishbone diagrams)
illustrate how causes relate to potential problems or effects
System or Process flowcharts show how various elements of
the system interrelate
Helps anticipation of what and where quality
problems may occur
Design of Experiments analytical technique which defines what variables
have most influence of the overall outcome
Cost and schedule tradeoffs
Project Quality Management
Outputs from Quality Planning
Quality Management Plan describes how team will implement its
quality policy; describes the project quality system organizational
structures, responsibilities, procedures, processes and resources
needed to implement quality management
Operational Definitions defines how an item is measured by the
quality control process. Also known as Metrics.
Checklists structured tool used to verify that a set of required steps
has been performed
Inputs to other processes may identify a need for further activity in
another area
Quality Assurance
All planned and systematic activities implemented within the quality
system to provide confidence that the project will satisfy quality
standards
Project Quality Management
Inputs to Quality Assurance
Quality Management Plan
Results of quality control measurements (testing)
Operational definitions
Tools & Techniques for Quality Assurance
Quality planning tools & techniques
Quality Audits structured review of quality management activities to
identify lessons learned
Outputs from Quality Assurance
Quality improvements taking action to increase the effectiveness
and efficiency of the project to provide added benefits to the
stakeholders
Most likely will involve change control
Project Quality Management
Quality Control monitoring specific results to determine if they comply with quality
standards and identifying ways to eliminate causes of unsatisfactory results
Includes project (deliverables) and management (cost and schedule
performance) results
Awareness of statistical quality control
Prevention (keep errors out of process) and inspection
(keep errors from customers)
Attribute sampling (result conforms) and variable sampling
Special Causes (unusual events) and random causes
Tolerances (acceptable range) and control limits (result falls
within range)
Project Quality Management
Inputs to Quality Control
Work results include process and product results
Quality Management Plan
Operational Definitions
Checklists
Tools & Techniques for Quality Control
Inspection activities such as testing to determine if results comply
with requirements
Control Charts plot results over time
Pareto diagrams frequency of occurrence that identifies type or
category of result (80/20 rule) guides corrective action
Project Quality Management
Statistical sampling select population of
interest for inspection
Flowcharting
Trend Analysis forecast future outcomes based
on historical results
Technical performance (# of errors
identified; # of errors that remain)
Cost and Schedule performance
(activities per period with significant
variances)
Project Quality Management
Outputs from Quality Control
Quality Improvement
Acceptance Decisions (accept/reject)
Rework action to bring defective item into compliance
Frequent cause of project overruns
Completed checklists
Process Adjustments immediate
corrective/preventive actions
Most likely involves change control
Project Quality Management
Tips from the Review Guide
Philosophy: definition of quality, avoidance of gold plating
giving customer extras, prevention over inspection
Conformance to requirements, specifications and fitness of use
Quality Management processes required to ensure that the
project will satisfy the needs for which it was undertaken
Continuous Improvement - small improvements to reduce
costs and ensure consistency
Marginal Analysis optimal quality is reached at the point
when revenue from improvement equals the costs to secure it
Just in Time - decrease amount of inventory/decrease
investment
Project Quality Management
Tips from the Review Guide
ISO 9000 or 10000 standards to ensure that corporations follow their own
quality procedures
Total Quality Management continuous improvement in business practices
Normal Distribution most common probability used to measure variations
Standard deviation (sigma) measure how far away from the mean (dotted
vertical line)
3 or 6 sigma represents level of quality
+/- 1 sigma equal to 68.26%
+/- 2 sigma equal to 95.46%
+/- 3 sigma equal to 99.73%
+/- 6 sigma equal to 99.99%
Project Quality Management

Tips from the Review Guide


Responsibility to quality entire organization
Ultimate employee
Overall or Primary Project Manager
Design and Test Specifications engineer
Prevention over inspection quality must be planned
in not inspected in
Project Quality Management
Tips from the Review Guide
Cost of conformance vs. non-conformance
Quality Training vs. rework
Studies vs. Scrap
Surveys vs. Inventory Costs and warranty costs
Quality Planning (Plan) determine what will be quality on project and how quality will
be measured done during Planning Phases
Identifying which standards are relevant to project how to satisfy them
Benchmarking look at past projects to determine ideas for
improvement
Cost Benefit Analysis
Flowcharts (fishbone)
Design of Experiments
Project Quality Management
Tips from the Review Guide
Quality Assurance (Implement) determine if
your measurement of quality is appropriate done
during Execution phases
Process of evaluating overall
performance on a regular basis
Quality Audits structured review of
quality activities that identify lessons
learned
Project Quality Management
Tips from the Review Guide
Quality Control (Check) perform the measurement and
compare to the quality plan done during Control phases
Process of monitoring specific project results to
determine if they comply with relevant quality
standards and identify ways of eliminating
unsatisfactory performance
Performance of the measurement or process,
using quality control tools checking work
Project Quality Management
Tips from the Review Guide
Quality Control Tools
Pareto Diagrams 80/20 rule the chart presents
the information being examined in its order of priority
and helps focus attention on the most critical issues
Fishbone diagram (Cause and Effect)
A creative way to look at the causes or potential
causes of a problem
Helps stimulate thinking, organizes thoughts and
generates discussion
Can be used to explore a desired future outcome
and the factors to which it relates
Tips from the Review Guide
Quality Control Tools
Checklists list of items to inspect
Control Charts graphic displays of the results over time
used to determine if a process is in control
Upper and Lower Control Limits two dashed lines
show the acceptable range of a variation range
determined by companys quality standard (sigma)
Mean line in the middle shows middle of the range
of acceptable results
Specification Limits 2 solid lines outside the upper
and lower control limits represent the customer's
expectations/requirements of quality
Project Quality Management
Tips from the Review Guide
Quality Control Tools
Out of Control process is out of control when:
A data point falls outside of the upper or lower
control limit
Non-random data points are within the upper
control and lower control limits
Rule of 7 non-random points outside the mean
- process should be investigated
Assignable Cause data point the requires
investigation to determine the cause of the
variation
Project Quality Management
PMI and Deming
Cost of conformance 85% of costs of quality are responsibility of
Management
Quality Training Rework
Studies Scrap
Surveys Inventory and Warranty costs
Crosby absolutes of quality
Performance standard is zero defects; measurement system is cost
of non-conformance
Continuous Improvement
Japanese (Kaizen)
Project Quality Management
Marginal Analysis optimal quality is reached when
incremental revenue from improvement equals
incremental cost to secure
Variable characteristic to be measured
Attribute measurement (objective or subjective)
Increase quality = increased productivity, increased
cost effectiveness, decreased cost risk
Project Quality Management
Review Guide Tips
Primary responsibility for quality management is the PM
Results of increase in quality
Increased productivity
Increased cost effectiveness
Decreased cost risk
Quality attributes can be subjective, objective and are
specific characteristics for which a project is designed and
tested
Quality assurance example is team training
Cost of Conformance = team training
Project Quality Management
Review Guide Tips
Marginal Analysis: optimal quality is reached when
incremental revenue from improvement equals the
incremental cost to secure
Standard Deviation: how far away from mean
Variable: characteristic you want to measure
Attribute: measurement (subjective or objective)
Ultimate Responsibility Employee
Overall Responsibility PM
Design/Test Specifications - Engineer
Project Quality Management
Review Guide Tips
If quality sample size increases, the quality control band
decreases
Product Cost plus Operations and Maintenance costs
increase perceived value when balanced
Cost of Conformance = training
Crosby Absolutes of Quality performance of standard is
zero defects and the measurement system is the cost of
non-conformance
Deming & Japanese are associated with Quality
Improvement programs
Quality Control performed by operating personnel
Project Quality Management
Review Guide Tips
Quality objectives are approved in conceptual stage
by project owner
QA auditing function that provides feedback to
team and client about quality of output being
produced
If sample size is a constant and acceptance numbers
increase, the producers risk decreases and
consumer risk increases
85% of costs of quality are direct responsibility of
management
Continuous Improvement

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