Project Quality Management

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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
• Tel[phone]
• Fax[phone]

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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.

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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

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• 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.

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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.

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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.

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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.

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TOTAL QUALITY MANAGEMENT (TQM)Origins,
Evolution key elements
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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).

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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
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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
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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