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Project Quality Management

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Title: Project Quality Management


1
Project Quality Management
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TOTAL QUALITY MANAGEMENT
  • BY
  • Engr. Dr. Attaullah Shah
  • PhD (Civil Engg.) , MSc ( Str Engg.) , MBA , MA (
    Eco) , MSc Envir design
  • BSc Civil Engg (Gold Medal) , Post Grad Dip in
    computer ( Gold medal)
  • Project Director Allama Iqbal Open University
  • Islaamabad Pakisatn.
  • pdaiou_at_yahoo.com
  • pd_at_aiou.edu.pk
  • Cell 92-333-5729809
  • Tel92-51-9057212
  • Fax92-51-9250100

4
What is quality?
  • All those features of a product (or services)
    which are required by the customer.
  • In this context, quality may include a number of
    Different attributes, such as
  • Availability- can it be delivered when I want it?
  • Reliability- will it work first time every time
  • Responsibilities- will the supplier be reasonably
    flexible

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  • Competence- do the necessary skills and knowledge
    exist to perform the service?
  • Communication- can I contact the supplier easily
    and do they speak my language?
  • Credibility- do they inspire confidence?
  • Security- are their systems and procedures
    secure.

6
Why is quality important?
  • The effectiveness of quality management
  • has been shown to be one of the most
  • important characteristics of successful
  • companies. In recent years quality has
  • become the key in determining many
  • organizations position in respect of their
  • competitive advantage. Improved quality can
  • increase revenue and reduce costs, since

7
  • Better quality improves the perceived image of a
    product or service and makes customers more
    likely to buy it.
  • Higher demand should result in higher sales
    volume and higher profits.
  • Higher quality in manufacturing should result in
    lower unit costs, with economies of scale in
    production and selling.
  • Higher quality in manufacturing should result in
    lower waste and defective rates, which will
    reduce production cost.
  • The volume of customer complaints should fall,
    and warranty claims should be lower. This will
    reduce costs.
  • Better quality in production should result in
    shorter processing times and less capital
    equipment requirements.

8
The cost of quality
  • A report into The effectiveness of the
    corporate overhead in British business by
    Develin Partners (1989), estimates that the
    average cost of waste and mistakes in the UK
    represents 20 of controllable corporate
    overhead.
  • This includes the cost of ensuring and assuring
    quality, as well as the loss incurred when
    quality is not achieved. Quality costs can be
    classified as prevention cost, appraisal cost,
    internal failure cost and external failure cost.

9
Quality control
  • Quality control is the traditional approach
  • concerned with ensuring that actual quality,
  • as measured, meets the target or
  • benchmark standards that have been set. It
  • is concerned with maintaining quality
  • standards, rather than improving them and
  • involves

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  • Establishing quality standards for a product or
    service.
  • Establishing procedures and processes that ought
    to ensure that these quality standards are met in
    a suitably high number of cases (in other words,
    quality acceptance standards are established)
  • Monitoring actual quality
  • Taking control action in cases where actual
    quality falls below the standard.
  • Procedures for inspecting and checking the
    quality of bought in materials and production
    output.

11
QUALITY ASSURANCE
  • Quality assurance is the term used where a
    supplier guarantees the quality of goods supplied
    and allows the customer access while the goods
    are being manufactured.
  • This is usually done through supplier quality
    assurance (SQA) officers, who control the
    specification of the goods supplied. Quality
    assurance may

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  • save purchasers quality control and production
    costs as items can be passed unchecked straight
    to production. This can give large savings in
    cost and time inflow production, and can
    facilitate Just- in- Time (Jit) production.
  • help companies to identify and remove the causes
    for poor quality goods before production instead
    of waiting for the end result
  • be particularly useful where extensive
    sub-contracting work is carried out, such as in
    the motor industry.

13
TOTAL QUALITY MANAGEMENT (TQM) Origins,
Evolution key elements
14
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
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WHAT IS QUALITY
  • FEDEX - PERFORMANCE TO THE STANDARD EXPECTED BY
    THE CUSTOMER
  • GENERAL SERVICES ADMINISTRATION - MEETING THE
    CUSTOMERS NEED THE FIRST TIME AND EVERY TIME
  • BOEING - PROVIDING CUSTOMERS WITH PRODUCTS AND
    SERVICES THAT CONSISTENTLY MEET THEIR NEEDS AND
    EXPECTATIONS

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WHAT IS QUALITY
  • US DEPARTMENT OF DEFENSE - DOING THE RIGHT THING
    RIGHT THE FIRST TIME, ALWAYS STRIVING FOR
    IMPROVEMENT, AND ALWAYS SATISFYING THE CUSTOMER.
  • QUALITY CAN BE DEFINED IN TERMS OF THE AGENT. WHO
    IS THE JUDGE OF QUALITY?

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WHAT IS QUALITY
  • QUALITY INVOLVES MEETING OR EXCEEDING CUSTOMER
    EXPECTATIONS.
  • QUALITY APPLIES TO PRODUCTS, SERVICES, PEOPLE,
    PROCESSES, AND ENVIRONMENTS.
  • QUALITY IS AN EVER-CHANGING STATE (I.E., WHAT IS
    CONSIDERED QUALITY TODAY MAY NOT BE GOOD ENOUGH
    TO BE CONSIDERED QUALITY TOMORROW).

18
SIX BASIC CONCEPTS OF TQM
  • 1. A COMMITTED AND INVOLVED MANAGEMENT TO
    PROVIDE LONG- TERM TOP-TO-BOTTOM ORGANIZATION
    SUPPORT
  • 2. AN UNWAVERING FOCUS ON THE COSTOMER, BOTH
    INTERNALLY AND EXTERNALLY.
  • 3. EFFECTIVE INVOLVEMENT AND UTILIZATION OF THE
    ENTIRE WORK FORCE.

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SIX BASIC CONCEPTS OF TQM
  • 4. CONTINUOUS IMPROVEMENT OF THE BUSINESS AND
    PRODUCTION PROCESS.
  • 5. TREATING SUPPLIERS AS PARTNERS.
  • 6. ESTABLISH PERFORMANCE MEASURES FOR THE
    PROCESSES.

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THE TOTAL QUALITY APPROACH
  • TOTAL QUALITY IS AN APPROACH TO DOING BUSINESS
    THAT ATTEMPTS TO MAXIMIZE THE COMPETITIVENESS OF
    AN ORGANIZATION THROUGH THE CONTINUAL IMPROVEMENT
    OF THE QUALITY OF ITS PRODUCTS, SERVICES, PEOPLE,
    PROCESSES AND ENVIRONMENTS.

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THE TOTAL QUALITY APPROACH
Customer focus
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THE TOTAL QUALITY APPROACH
  • CHARACTERISTICS OF THE TOTAL QUALITY
  • STRATEGICALLY BASED
  • CUSTOMER FOCUS (INTERNAL AND EXTERNAL)
  • OBSESSION WITH QUALITY
  • SCIENTIFIC APPROACH TO DECISION MAKING AND
    PROBLEM SOLVING
  • LONG-TERM COMMITMENT

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THE TOTAL QUALITY APPROACH
  • TEAMWORK
  • CONTINUAL PROCESS IMPROVEMENT
  • EDUCATION AND TRAINING
  • FREEDOM THROUGH CONTROL
  • UNITY OF PURPOSE
  • EMPLOYEE INVOLVEMENT AND EMPOWERMENT

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Evolution of Quality Management
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Inspection
Develop quality manual, process performance data,
self-inspection, product testing, basic quality
planning, use of basic statistics, paperwork
control.
Quality Control
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis,
SPC.
Quality Assurance
Policy deployment, involve supplier customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
TQM
25
Demings view of a production as a system
Consumer Research
Design redesign
Receipt test of materials
Suppliers, materials equipment
Production, assembly, inspection
Distribution
Consumers
Test of processes, machines, methods, cost
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Demings Chain Reaction
Improve Quality
Provide jobs and more jobs
Cost decreases because of less rework, fewer
mistakes, fewer delays, snags, better use of
machine time and materials
Stay in business
Productivity improves
Capture the market with better quality and lower
price
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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
DO
ACT
Adopt the change as a permanent modification to
the process, or abandon it.
Implement the change on a small scale and measure
the effects
CHECK
Study the results to learn what effect the change
had, if any.
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W. Edwards Demings 14 Points
1)
Create constancy of purpose towards improvement
of product and services. Adopt the new
philosophy. We can no longer live with commonly
accepted levels of delays, mistakes, defective
workmanship. Cease dependence on mass inspection.
Require, instead, statistical evidence that
quality is built in. End the practice of awarding
business on the basis of price tag.
2)
3)
4)
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W. Edwards Demings 14 Points
5)
Find problems. It is managements job to work
continually on the system. Institute modern
methods of training on the job. Institute modern
methods of supervision of production workers. The
responsibility of foremen must be changed from
numbers to quality. Drive out fear that everyone
may work effectively for the company.
6)
7)
8)
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W. Edwards Demings 14 Points
9)
Break down barriers between departments. Eliminate
numerical goals, posters and slogans for the
workforce asking for new levels of productivity
without providing methods. Eliminate work
standards that prescribe numerical quotas. Remove
barriers that stand between the hourly worker and
his right to pride of workmanship.
10)
11)
12)
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W. Edwards Demings 14 Points
Institute a vigorous programme of education and
retraining. Create a structure in top management
that will push everyday on the above 13 points.
13)
14)
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Demings System of Profound Knowledge
Knowledge about variation
Appreciation for system
Theory about knowledge
Knowledge of psychology
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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
34
What is TQM?
Concern for employee involvement and development
Management by Fact
Constant drive for continuous improvement and
learning.
Organisation response ability
Passion to deliver customer value / excellence
Result Focus
Partnership perspective (internal / external)
Actions not just words (implementation)
Process Management
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LEARNING AND TQM
Learning
Process Improvement
Quality Improvement
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BASIC PRINCIPLES OF TQM
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FOUR KEY PRINCIPLES
  • Measure quality so you can affect it
  • Focus on a moving customer
  • Involve every employee
  • Think long term - Act short term

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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 .
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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
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TQM IN CONSTRUCTION INDUSTRY
  • IMPLEMENTATION OF TQM RESULTED IN IMPROVED
    CUSTOMER SATISFACTION, REDUCED CYCLE TIMES,
    DOCUMENTED COST SAVINGS, AND MORE SATISFIED AND
    PRODUCTIVE WORK FORCES.
  • A TQM PROCESS IMPLEMENTED BY TEXAS INSTRUMENT
    (USA) HAS FOLLOWING OUTCOMES

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THE TQM IN CONSTRUCTION INDUSTRY
  • REWORK REDUCED FROM 11 TO LESS THAN 1 OF
    PROJECT
  • IMPROVED SAFTY AND HEALTH
  • REDUCED WORKERS COMPENSATION INSURANCE, AND
    COMPLETION ON SCHEDULE.

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IS QUALITY A SOUND INVESTMENT?
Year Company Stock Growth (Oct
94) 1988 Motorola 373.0 1988 Westing
house (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 ATT (UCS)
32.2 1992 ATT (TSBU)
32.2 1992 Texas Instruments (DSE)
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
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Project Quality management
  • Project Quality Management processes include all
    the activities of the performing organization
    that determine quality policies, objectives, and
    responsibilities so that the project will satisfy
    the needs for which it was undertaken.
  • It implements the quality management system
    through the policy, procedures, and processes of
    quality planning, quality assurance, and quality
    control, with continuous process improvement
    activities conducted throughout, as appropriate.

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Project Quality Management processes
  • Quality Planning identifying which quality
    standards are relevant to the project and
    determining how to satisfy them.
  • Perform Quality Assurance applying the planned,
    systematic quality activities to ensure that the
    project employs all processes needed to meet
    requirements.
  • 8.3 Perform Quality Control monitoring specific
    project results to determine whether they comply
    with relevant quality standards and identifying
    ways to
  • eliminate causes of unsatisfactory performance

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Project Management and TQM
  • Modern quality management complements project
    management. For example, both disciplines
    recognize the importance of
  • Customer satisfaction. Understanding, evaluating,
    defining, and managing expectations so that
    customer requirements are met. This requires a
    combination of conformance to requirements (the
    project must produce what it said it would
    produce) and fitness for use (the product or
    service must satisfy real needs).
  • Prevention over inspection. The cost of
    preventing mistakes is generally much less than
    the cost of correcting them, as revealed by
    inspection.
  • Management responsibility. Success requires the
    participation of all members of the team, but it
    remains the responsibility of management to
    provide the resources needed to succeed.
  • Continuous improvement. The plan-do-check-act
    cycle is the basis for quality improvement

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Quality Planning Tools and Techniques
  • Cost-Benefit Analysis Quality planning must
    consider cost-benefits tradeoffs. The primary
    benefit of meeting quality requirements is less
    rework, which means higher productivity, lower
    costs, and increased stakeholder satisfaction.
  • Benchmarking involves comparing actual or planned
    project practices to those of other projects to
    generate ideas for improvement and to provide a
    basis by which to measure performance.
  • Design of Experiments (DOE) is a statistical
    method that helps identify which factors may
    influence specific variables of a product or
    process under development or in production.
  • Cost of Quality (COQ) are the total costs
    incurred by investment in preventing
    nonconformance to requirements, appraising the
    product or service for conformance to
    requirements, and failing to meet requirements
    (rework).

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  • Additional Quality Planning Tools
  • Other quality planning tools are also often used
    to help better define the situation and help plan
    effective quality management activities.

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Quality Planning Outputs
  • Quality Management Plan describes how the project
    management team will implement the performing
    organizations quality policy. The quality
    management plan provides input to the overall
    project management plan and must address quality
    control (QC), quality assurance (QA),and
    continuous process improvement for the project.
  • Quality Metrics A metric is an operational
    definition that describes, in very specific
    terms, what something is and how the quality
    control process measures it. A measurement is an
    actual value.
  • Quality Checklists A checklist is a structured
    tool, usually component-specific, used to verify
    that a set of required steps has been performed.
    Checklists may be simple or complex.
  • Quality Baseline The quality baseline records the
    quality objectives of the project.
  • Project Management Plan (Updates) The project
    management plan will be updated through the
    inclusion of a subsidiary quality management plan

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Perform Quality Assurance
  • Quality assurance (QA) is the application of
    planned, systematic quality activities to ensure
    that the project will employ all processes needed
    to meet requirements.
  • Continuous process improvement provides an
    iterative means for improving the quality of all
    processes.
  • Continuous process improvement reduces waste and
    non-value-added activities, which allows
    processes to operate at increased levels of
    efficiency and effectiveness.

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Perform Quality Assurance Inputs, Tools
Techniques, and Outputs
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Perform Quality Assurance Tools and Techniques
  • Quality Planning Tools and Techniques
  • The quality planning tools and technique.
  • Quality Audits
  • A quality audit is a structured, independent
    review to determine whether project activities
    comply with organizational and project policies,
    processes, and procedures.
  • The objective of a quality audit is to identify
    inefficient and ineffective policies, processes,
    and procedures in use on the project.
  • Quality audits may be scheduled or at random, and
    may be carried out by properly trained in-house
    auditors or by third parties, external to the
    performing organization.

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  • Process Analysis
  • Process analysis follows the steps outlined in
    the process improvement plan to identify needed
    improvements from an organizational and technical
    standpoint.

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Perform Quality Assurance Outputs
  • Requested Changes
  • Quality improvement includes taking action to
    increase the effectiveness and efficiency of the
    policies, processes, and procedures of the
    performing organization, which should provide
    added benefits to the stakeholders of all
    projects.
  • Recommended Corrective Actions
  • Quality improvement includes recommending actions
    to increase the effectiveness and efficiency of
    the performing organization.
  • Organizational Process Assets (Updates)
  • Updated quality standards provide validation of
    the effectiveness and efficiency of the
    performing organizations quality standards and
    processes to meet requirements.
  • Project Management Plan (Updates)

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Perform Quality Control
  • Performing quality control (QC) involves
    monitoring specific project results to determine
    whether they comply with relevant quality
    standards and identifying ways to eliminate
    causes of unsatisfactory results.
  • Quality standards include project processes and
    product goals.
  • QC is often performed by a quality control
    department or similarly titled organizational
    unit.
  • The project management team should have a working
    knowledge of statistical quality control,
    especially sampling and probability, to help
    evaluate QC outputs.

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  • Among other subjects, the team may find it useful
    to know the differences between the following
    pairs of terms
  • Prevention (keeping errors out of the process)
    and inspection (keeping errors out of the hands
    of the customer).
  • Attribute sampling (the result conforms, or it
    does not) and variables sampling (the result is
    rated on a continuous scale that measures the
    degree of conformity).
  • Special causes (unusual events) and common causes
    (normal process variation).
  • Common causes are also called random causes.
  • Tolerances (the result is acceptable if it falls
    within the range specified by the tolerance) and
    control limits (the process is in control if the
    result falls within the control limits).

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Perform Quality Control Inputs, Tools
Techniques, and Outputs
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Perform Quality Control Tools and Techniques
  • Cause and Effect Diagram
  • Cause and effect diagrams, also called Ishikawa
    diagrams or fishbone diagrams, illustrate how
    various factors might be linked to potential
    problems or effects.

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  • Control Charts
  • A control chart's purpose is to determine whether
    or not a process is stable or has predictable
    performance.
  • Control charts may serve as a data gathering tool
    to show when a process is subject to special
    cause variation, which creates an out-of-control
    condition.
  • Control charts also illustrate how a process
    behaves over time
  • When a process is outside acceptable limits, the
    process should be adjusted.
  • The upper control limit and lower control limit
    are usually set at /- 3 sigma (i.e., standard
    deviation).
  • Control charts can be used for both project and
    product life cycle processes. An example of
    project use of control charts is determining
    whether cost variances or schedule variances are
    outside of acceptable limits (for example, /- 10
    percent).

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  • Flowcharting
  • Flowcharting helps to analyze how problems occur.
    A flowchart is a graphical representation of a
    process. There are many styles, but all process
    flowcharts show activities, decision points, and
    the order of processing.
  • Flowcharts show how various elements of a system
    interrelate.
  • What and where quality problems might occur and,
    thus, can help develop approaches for dealing
    with them.

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  • Histogram
  • A histogram is a bar chart showing a distribution
    of variables. Each column represents an attribute
    or characteristic of a problem/situation.
  • The height of each column represents the relative
    frequency of the characteristic. This tool helps
    identify the cause of problems in a process by
    the shape and width of the distribution.

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  • Run Chart
  • A run chart shows the history and pattern of
    variation. A run chart is a line graph that shows
    data points plotted in the order in which they
    occur.
  • Run charts show trends in a process over time,
    variation over time, or declines or improvements
    in a process over time.
  • Trend analysis is performed using run charts.
    Trend analysis involves using mathematical
    techniques to forecast future outcomes based on
    historical results. Trend analysis is often used
    to monitor
  • Technical performance. How many errors or defects
    have been identified, how many remain
    uncorrected?
  • ost and schedule performance. How many
    activities per period were completed with
    significant variances?

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  • Scatter Diagram
  • A scatter diagram shows the pattern of
    relationship between two variables.
  • This tool allows the quality team to study and
    identify the possible relationship between
    changes observed in two variables. Dependent
    variables versus independent variables are
    plotted.
  • The closer the points are to a diagonal line, the
    more closely they are related.
  • Statistical Sampling
  • Statistical sampling involves choosing part of a
    population of interest for inspection (for
    example, selecting ten engineering drawings at
    random from a list of seventy five).
  • Appropriate sampling can often reduce the cost of
    quality control. There is a substantial body of
    knowledge on statistical sampling in some
    application areas, it may be necessary for the
    project management team to be familiar with a
    variety of sampling techniques.

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  • Inspection
  • An inspection is the examination of a work
    product to determine whether it conforms to
    standards.
  • Generally, the results of an inspection include
    measurements.
  • Inspections can be conducted at any level. For
    example, the results of a single activity can be
    inspected, or the final product of the project
    can be inspected. Inspections are also called
    reviews, peer reviews, audits, and walkthroughs.
    In some application areas, these terms have
    narrow and specific meanings. Inspections are
    also used to validate defect repairs.

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  • Defect Repair Review
  • Defect repair review is an action taken by the
    quality control department or similarly titled
    organization to ensure that product defects are
    repaired and brought into compliance with
    requirements or specifications.

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Perform Quality Control Outputs
  • Quality control measurements represent the
    results of QC activities that are fed back to QA.
  • Validated Defect Repair
  • The repaired items are re inspected and will be
    either accepted or rejected before notification
    of the decision is provided
  • Quality Baseline (Updates)
  • Recommended Corrective Actions
  • Recommended Preventive Actions
  • Requested Changes
  • Recommended Defect Repair
  • Organization Process Assets (Updates)
  • Completed checklists.
  • Lessons learned documentation
  • Validated Deliverables
  • Project Management Plan (Updates)

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Quality is a Journey, not a Destination
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