Project Management

Chapter 7. Quality management

Quality Management as a concept

- Increasingly important, now central factor in most project-decision making processes

- Into the 1960’s western managers considered low cost most important, but the Japanese from the mid 60’s dominated many of these markets by increasing quality

- Increased sales due to quality and reliability leads to further sales, which in turn reduces costs of production

- Japanese: 1) Same quality, lower cost -> increased sales, 2) same quality, even lower costs -> further increase in sales, 3) Better quality, same price, 4) Better quality, lower price

- Growing importance of quality reflected in the development of quality management and quality control standards, BS5750, ISO9000, BS6079 and ISO10006

The traditional Japanese view

1) The overall value of quality:

- Overall value of quality: apparent value+ true value

2) The overall cost of defects:- Overall cost of defects= apparent cost + true cost- Apparent cost: covering warranties/guarantees- True cost: loss of reputation and customer trust, generally much greater than

apparent cost

3) Quality dividends:- Improved company status and image- Improved performance based demand- Increased respect from competitors- Share price stability- Improved staff motivation- Improved sales- Better industrial relations- More stable risk profile- Improved goodwill- Improved prospects in potential M&A’s, and alliances and partnerships

4) Involving people:- Develop close links between the company and the employee, ensuring that the

mutual interests coincided- Motivated employees need less control in the process of producing quality

products- This was partly culturally inclined, while in western countries the 60’s, 70’s and to

some extent the 80’s, witnessed increased alienation between companies and employees due to increased labour union power leading to strikes and work disruption.

- The Japanese approach successful because:o Based on employee commitment, reduced need for expensive quality

control systemso Employee commitment and empowerment made the systems self-

regulatingo Comparative advantage in that production could run at lower cost -> lower

priced productso Cheaper and simpler, and also more reliableo Approach reinforced the bond between company and employeeso Approach compatible with cultural characteristics (co-operation and team

work)

5) Proactive planning:

- Preventive is better than responsive action- Systems based on forward looking, planned approaches to quality- Using western approaches, preventive methods are expensive if high standards

are required- The Japanese realised that cost of improving quality could be reduced by giving

more attention to product development, producing better quality products with fewer inherent defects

6) Involving the whole organisation:- Quality improvement requires a “quality-attitude” of all people at all levels.- Japanese the first to develop strategic quality-management systems, which were the origin of TQM, also including non-production process activities

7) Educating the customer to expect quality- By constantly improving quality of products, the customer learns to expect innovation, new products and higher standards of quality, so that the company could be the only supplier to deliver this in the market

Quality standards

-BS5750: an attempt at a industry generic quality standard; bureaucratic and involving amounts of paperwork- a “snapshot” assessment of quality standards- BS5750 superseded by ISO9000; an international generic quality standard containing 5 main sections:1) ISO9000: Quality management and Quality assurance standards-Guidelines for selection and use

2) ISO90001: Quality systems-Model for quality assurance in design and development, production, installation and servicing3) ISO90002: Quality systems-Model for quality assurance in production and installation4) ISO90003: Quality systems: Model for quality assurance on final inspection and test5) ISO90004: Quality management and quality system elements-Guidelines

ISO9000 is based on a never ending cycle that includes planning, controlling and documentation.Drawbacks: Bureaucratic, “snapshot” assessment, does not take account of cultural differences in production systems

7.2.3.2 Brief Guide to ISO9000

This brief guide to ISO9000 takes the form of a series of questions and their answers. Thus:

o What is ISO9000?  ISO9000 is concerned with quality assurance. It is a standard that allows organisations to be assessed in relation to their quality assurance systems and procedures.

o Why is it important? Quality is an important issue and it is becoming more and more important all the time. Quality achievement has to be planned and monitored. ISO9000 provides a framework for this planning process.

o What is a quality plan?  A quality plan should be a formal document that reflects the quality policy and objectives of an organisation. It should have senior management support and it should identify the various stages required, together with costings, timings and resource allocations, in order that the organisation can meet the quality objectives that have been agreed. It should also set out the specific quality processes that are to be adopted.

o What is quality assurance?  Quality assurance relates to the customer. It provides an ongoing assurance to the customer that the organisation has the necessary processes in place to produce goods and services to the required levels.

o Who is affected by quality assurance? Virtually everybody in the organisation. Effective quality management has to operate organisation-wide. It includes production, design, research, administration, management, packaging and delivery. Almost everybody involved in the organisation has a responsibility and therefore a commitment to make.

o What does ISO9000 look for?  ISO9000 is really a generic model for quality management. It can be used to build a quality management system in almost any company or industry.

The quality gurus

Common concepts:1) Quality processes must be enterprise wide2) Process defects should be considered before employee defects3) Quality must be structured (WBS- type element development)4) Quality processes must ensure that the product exceeds customer expectations5) Quality processes must be able to rely on commitment

Deming: (Appeals to democratic manager)- Intrinsic link between quality management and production. Better quality

management -> equal quality/lower cost or better quality/same cost- Quality problems: 85% controlled by management

Demings’ 14 points:

1) Create a common sense of purpose2) Create a new mindset3) Build quality into the system: Difficult to produce a defective item4) Review procurement strategy: Suppliers and subcontractor quality requirements5) Research and innovate: Constantly analyse and control the quality system6) Invest in staff development7) Enhance supervision:

8)Develop a system of open communication: Across operational islands and authority boundaries9) Encourage enterprise-wide open communication10) Avoid the use of output standards: Increased demands must be followed by equal increases in resources or improved training.11) If output standards are used, use them carefully12) Encourage pride13) Invest in training14) Encourage commitment

Juran: (Appeals to boss-type managers)

10 steps for quality improvement:

1. Develop an awareness that products must evolve and improvement is necessary;2. Establish a strategic plan for improvement and establish goals for improvement at

different positions within the strategy;3. Plan an operational system that allows the goals for improvement to be achieved;4. Provide adequate staff training and development as required;5. Where there are major problems, treat them as projects and set up a project team to

resolve them;6. Establish a regular and detailed reporting system;7. Recognise good performance and reward it. Take appropriate corrective action in the

case of poor performance;8. Develop an open communication system and communicate results;9. Maintain performance records and publish results. Use ‘league tables’;10. Drive the system maintaining momentum and constantly introducing improvements

and innovations.

Philosophy: Plan improvement, control implementation and then improve. Juran’s approach is the most scientific and structured

Quality planning: (analogous to cost and schedule planning:

Identifying and ranking all existing customers; Identifying individual customer demands and requirements Developing a solution (product) that meets and exceeds these demands and

requirements; Planning the development and implementation of this product; Establishing goals for achieving the product; implementing the production process; Ensuring that the system is accurate and reliable.

These steps are similar to the standard approach to TQM planning. Management has to establish planning oriented cross-functional teams to work with steering groups to make sure subsequent implementation will work. Communication barriers must be removed.

Quality control (collection and analysis of data for the purpose of determining the level of system matching the quality goals)

- Based on statistical techniques using meaningful sample sizes- The data are monitored before and after improvement actions in order to

determine success levels

Quality improvement

- The process of breaking through to a new level of quality performance

Crosby: (aimed at the human-resources type of manager)

- Quality has to become the universal goal of the organisation

- Quality is best achieved through prevention rather than detection of errors and defects

- Establishing objectives and targets, and then designing the production system to meet these standards

- Target: Zero defects

14 stages:

1) Establish commitment at all levels of management

2) Establish specific quality teams

3) Establish measurement and evaluation teams

4) Establish cost implications

5) Promote awareness of quality

6) Establish appropriate corrective action

7) Establish plans for zero defects

8)Initiate education programmes

9) Initiate zero-defect day

10) Establish achievable quality improvement goals

11) Remove the sources of defects

12) Recognise good performance and reward it

13) Establish quality forums

14) Ensure evaluation and feedback

Imai: (Structured, production type managers)

Imai developed a philosophy based on continuous improvement with an emphasis on the production system and the immediate environment rather than on the product itself.

- Organisation should make sure that the production system is exactly aligned to the characteristics and demands of the environment, and improvements should be made continuously as needed.

- By continually improving the process, the product will improve as a consequence- “The P-approach”: Process approach, which was at odds with classical

motivational theorists, who tended to assume an “R-approach”, results approach. (Kaizen approach)

Quality management 6-pack

1) Quality policy: A statement of the overall organisation vision on quality:

- Clearly stated organisational quality objectives

- Established measurable minimum performance levels

- A clear reconciliation of the quality policy with the established strategy objectives of the organisation- Clear and unambiguous senior management support- Stated penalties or consequences for non-compliance- Reference to any central or statutory restraints- Some form of measurement and evaluation procedure- Stated responsibility and ownership

2) Quality objectives: Components of the quality policy, which convert the overall policy into individual statements of what has to be done by individual sections in order to achieve the overall policy outcomes.- Individual performance-control elements (WBS-type/CAC-type)- Objectives must be:

o Clearly achievable and in context;o Linked to organisational and strategic goals;o Adequately resourced;o Associated with clear and unambiguous relevant operational support;o Related to some form of measurement and evaluation procedure;o Related to stated responsibility and ownership;o Related to any operational and/or statutory standards;o Related and apply to all relevant operational units;o Stated in the context of specific time scales for implementation (where appropriate);o Stated in the context of any implementation cost limits that may apply.

4) Quality assurance: A general term applied to a wide range of tools and processes that are used as drivers to ensure that the quality management system performs and produces results that comply with what has been specified

- A proactive concept in that it sets the standards that are required of the systems in order to ensure project success

- Setting up a quality assurance system involves establishing some kind of benchmark or target against which actual performance can be measured. These standards will be derived directly from the individual component objectives that were themselves derived from the quality policy

- A good quality assurance system should:

o Clearly identify the minimum standards of performance that are acceptable;

o Be proactive (where possible);o Be reactive (where necessary);o Apply across all sections that are involved in production;o Establish procedures for the collection and analysis of performance data;o Be established in the context of any relevant audit and performance review

procedures.

5) Quality control: Another collective term that refers to a range of tools and processes that are intended to create known or specific quality-performance levels

- The main difference between quality assurance and control is in evaluation and physical measurement.

- Quality assurance is concerned with proactively establishing drivers and standards for performance. Quality control is concerned with the evaluation of how well these standards or targets are actually being achieved, and reacting to any deviations. Quality control is therefore based on a retrospective approach.

- Quality control processes include continuous sampling, with results being analysed using some form of statistical analysis. These results are then compared with the standards established as part of the quality assurance system in order to evaluate the quality variance performance of different levels of the OBS and WBS.

- For every divergence identified, the quality control system has to be able to recommend necessary remedial action in order to correct the situation.

- A quality control system should:

o Measure and confirm actual performanceo Compare target and actual performanceo Identify significant performance varianceso Identify the sources of significant performance varianceso Initiate suitable corrective actionso Assign ownership and specific responsibilitieso Monitor the effectiveness of corrective actionso Generate suitable reports and control outputs

6) Quality audit:

- Any quality management system must have an audit process. The idea is that an independent check is carried out by impartial personnel in order to ensure that the project's quality performance standards are being met. Most realistic quality-assurance and quality control systems would be subject to internal and external (independent) audit. External audit generally provides a stronger and more reliable measure of performance.

- The audit process helps ensure impartiality, objectivity and the correct and fair interpretation of results and implementation of the system.

An audit system should confirm that:

- Quality assurance procedures have been observed and complied with;- Quality control performance figures have been correctly assembled;- All relevant issues have been included;- All processes have complied with any relevant internal standards and with any

external statutory regulations;- All analysis and reporting have complied with any relevant internal standards and

with any external statutory regulations;- All proposed corrective actions have complied with any relevant internal standards

and with any external statutory regulations;- All monitoring and control systems have complied with any relevant internal

standards and with any external statutory regulations;- All reporting systems have complied with any relevant internal standards and with

any external statutory regulations;- Any appropriate areas for improvement have been identified and correctly

addressed;- All plans and strategies for improvement have been correctly assembled and

implemented;- Any possible areas of misdirection or misinterpretation have been addressed;- The system is free of corruption.

7) Quality assurance plan and review

- The quality management plan is analogous to the project master schedule and project cost plan. It is a strategic plan for the implementation of the quality management system.

- It breaks down the quality objectives of the organisation and expresses them in terms of individual targets for different sections of the organisation.

- It establishes the basis of all quality monitoring and control systems, and it sets specific time scales and cost limits for the implementation and review of the quality management system. The implementation process then takes place, structured around the overall strategy that is contained in the plan and review.

- A good quality plan will:

o Establish clear targets for the achievement of any stated objectives;

o Ensure that all targets are achievable;o Allow for any interdependencies between activities;o Allow reasonable provision for response to change;o Include reasonable contingency planning;o Clearly specify performance objective success criteria;o Establish relevant risk profiles for each affected section and activity;o Include provision for all performance variance corrective actions;o Include ownership and specific responsibilities;o Include provision for the monitoring and control of the effectiveness of corrective

actions;o Include provision for the generation of suitable reports and control outputs;o Be fully accountable for overall performance improvement

The functions of the quality plan:

o 1) Strategic focus: The quality assurance plan QAP is a strategic initiative in that it established the long-term aims and objectives of the quality management system. It is important that the strategic aspect of the QAP is properly focussed and aligns with overall organisational strategic objectives. Strategic focus is particularly important in systems that are complex and where there are a multitude of potentially conflicting performance variables. The QAP has to be clearly defined in order to be able to set specific targets for performance at individual levels within the organisation. The end result has to be a clear definition of what each section and individual employee needs to do in order to achieve overall success.

The quality assurance review (QAR) acts as an on-going control of the QAP. The QAR ensures that the QAP is being implemented correctly and remains aligned to overall strategic objectives.

2) Formal procedures and processes: The QAP is effectively a network of procedures. The various actions that are necessary for effective quality management are intrinsically linked and cannot be regarded or treated in isolation. The QAP acts as the overall co-ordinating mechanism to ensure that all procedures work together towards the common set of objectives. This is an important function, as the objectives will change over time

3) Internal performance targets and benchmarking: The QAP sets individual section procedures and performance levels and makes these known to all parts of the organisation. Each section or division can see how its contribution fits in to the output standards of the whole organisation. This increases individual accountability and acts as a form of safeguard against corruption and the compromise of standards.

4) Support for tendered/bid resource allocation: The QAP states the level of resourcing required to guarantee a given level of performance within the time scales and cost limits that are specified in the plan. This clear statement of resource-level requirements can act to strengthen a project manager's hand when conflict over resources occurs. Once agreed, the standard resource limit becomes a kind of benchmark and, to some extent, acts as a safeguard against future reductions in resources.

5) Data for trade-off analysis: The QAP acts as a time and cost plan for the project. It states the time and money required for each stage in the process in order to meet specific target performance levels. As such, it acts as the trade-off link between time, cost and quality for the project. This linkage is important: it establishes the QAP as the standard contract document that links time, cost and quality. (The EVA-based PVAR report links only time and cost.) In many project systems, time and cost are considered as more important than performance, and performance is often the first of the three trade-off variables to be compromised if there is a problem. However, performance is less likely to be cut if it is planned for specifically

6) Standardisation of procedures: Large organisations with complex production systems can have wide variations in individual quality standards. The QAP tends to generate uniform quality.

Generally, there are several major problems associated with the imposition of a quality management system onto an organisation:

o In the early stages of a project, performance management is often under-valued as there is an assumption that the specification contains all relevant information.

o Immediate time and cost constraints tend to dominate early stage decision-making.

o Design teams in particular tend to leave performance management until the later stages of the process.

o It is only in the middle and later stages of implementation that clients tend to become concerned about the eventual performance of the system in relation to the other project success criteria.

o Performance measures tend to be related to the degree of implementation of the remainder of the project. It can be difficult to assess actual performance until the various operational processes are in place and functioning.

o Trade-offs place pressure on performance. The classical first response of a project manager who is faced with time and/or cost inconsistencies is to attempt to compromise performance.

o Performance is often incorrectly interpreted as being a function of time and cost. There is often an incorrect assumption that allowing more time or money must improve performance.

o Performance management is a subjective approach. The approaches to time and cost planning and control have already been discussed. It is not always possible to use such a direct and structured approach to performance planning and implementation.

o Performance planning and control is much more customer-related than time or cost planning and control.

o Advanced software packages link time and cost as standard using EVA. No advanced software at present includes performance as a functional variable.

o Performance management in general tends to suffer from a lack of adequate planning

The QAP itself can be formulated fairly easily by producing a quality assurance matrix using combined OBS and WBS elements, broken down into work packages and assigned using a task responsibility matrix (TRM). The quality assurance matrix is generally developed by a project quality-assurance team (if this exists as a separate entity), or alternatively by the project manager. It shows what is required, who is responsible for achieving it, and how that person is to achieve its objectives. It is essentially a TRM applied to quality management.

Quality control tools

Identification tools:

Pareto analysis: A pareto diagram is a type of histogram. The objective is to produce a graphical representation that identifies problem areas. It also gives an approximation of the relative value or size of the problem area. It isolates areas on nonconformity to standard and draws attention to the most frequently occurring element.

- Basic Pareto analysis identifies those elements that account for the highest proportion of quality problems in the system.

- Comparative Pareto analysis considers a range of processes or actions and compares them in order to determine a league table of problem causes.

- Weighted Pareto analysis allows consideration of factors that might not be obvious from the initial analysis. These could include quality determinants such as time and cost.

Brainstorming techniques:

- Brainstorming techniques are widely used in the detection of defects or inefficiencies in quality management systems. The idea is that as many people as

possible review the project scenario and try to identify as many defects as possible. These include internal and external elements, controllable and uncontrollable risks, and all other factors that could theoretically affect the project.

- Phase 1 is the Creative phase . The idea of phase 1 is to invite as many ideas as possible from the brainstorming team. The team should include as many project-team members as possible, and also other individuals who have an impact on the project or who act as stakeholders. The co-ordinator usually extracts one idea at a time from team members. It is important that any risks or risk areas are identified. People are encouraged to think outside their own specialisation.

- Phase 2 is the Evaluation phase . Once the list of ideas is complete (at least for this particular session), each one is evaluated by all members of the team. Technical expertise and experience can now be applied by individual members in order to identify those ideas that have potential and those that do not. It is important that ideas are not linked to individuals, so that free and open criticism and evaluation can take place. Each idea is considered in detail, and a final list is formulated. These are the ideas on risk that are regarded as having real potential and worth further development.

The Delphi method 

- In the Delphi method, a panel of experts (or steering group) is selected from both inside and outside the organisation. They are all given an identical statement of the problem, with full associated data and support information. The experts do not interact and do not know of each other's existence. They therefore act purely as individuals. Each expert is asked to make an anonymous identification of, and prediction on, a particular risk. Once the identification and prediction are complete, each expert submits it to the steering group. The steering group assesses the evaluation and provides comprehensive feedback to each expert on the collective answer. Each expert therefore knows what the collective answer is in relation to his or her individual response. Each expert is then asked to make a new identification and prediction based on that collective answer. The process is then repeated as necessary.

Nominal Group Technique

- In this technique, a panel is convened. The panel is then asked to brainstorm the problem at hand and to list proposed answers in writing. The listing usually goes onto a flipchart so that the whole group can help develop the list and observe it as it develops. Each idea is discussed openly and in detail among the various panel members. Each panel member then individually ranks each idea in terms of its perceived suitability for the particular problem. A collective rank is then developed and the ideas are listed in order of this collective rank. They are then listed and discussed again as necessary until a final ranking can be arrived at.

Error sources from techniques like these brainstorming methods include:

o loyalty to the project;o the consequences of group think;o political alliances between group members;o personality issues;o team balance issues;o prior knowledge and experience;o failure to assimilate all relevant information;o inability to reach an acceptable solution within time limits;o intuition;o pre-established ideas and concepts.

SWOT-analysis

A strengths, weaknesses, opportunities and threats (SWOT) analysis is a useful way of identifying defects and areas where there are potential weaknesses within a production system. Such an analysis provides a means for examining both the internal and external environment. In general terms, strengths and weaknesses are controllable internal factors and can theoretically be engineered if they are not acceptable as they are.

Opportunities and threats are generally uncontrollable external factors, and cannot be engineered by the organisation.

A SWOT analysis generally works on the same basis as a work breakdown structure (WBS). It can operate at the top level within an organisation and can be used to consider performance as a whole, or it can move down through the structure of individual projects and look at individual sections and departments. A company might make a range of individual products, and might wish to carry out a SWOT analysis of each product.

In order to reduce the risk inherent in any project, the organisation needs to:

o build on and exploit strengths;o address and mitigate weaknesses;o take advantage of opportunities;o avoid or reduce threats.

Analysis tools

Scatter Diagrams

Scatter diagrams are based on the concept of having dependent and independent variables. Variations in one as a function of the other are shown on a simple two-axis graph. The scatter of the points will indicate correlations (if any) between the variables – for example positive, negative or curvilinear. Dependent and independent variables can be isolated in most processes. In excavating a tunnel, for instance, the time taken (assuming constant rock conditions) will be a function of length. Length is the independent variable while time is the dependent variable. The time required will always be a direct function of the length required.

Control charts

Control charts exemplify a preventive approach. They attempt to prevent defects, rather than detecting and isolating them after they have occurred. Most forms of control chart are based upon the statistical concept of a standard normal distribution. Control charts can be used in a number of ways, including concordance analysis, which involves plotting the frequency of occurrence of two variables in concurrence. If this happens enough times, the association will become statistically significant. If this significance occurs at the 90%, 95% or 99% level, then there is clearly a strong association between the two variables.

Identification and analysis tools

Cause and Effect Analysis

Cause and effect analysis use diagramming techniques in order to identify the relationship between an effect and its causes. Cause and effect analysis comprises six major stages, as follows:

o Identify the source of the problem The first step is to identify the problem. This can be done using cause and effect or SWOT analysis or other identification methods as appropriate. Problem identification in large systems can be difficult. EVA for example can identify where there are cost and/or schedule variances but it does not identify the source of the problem. In some cases the apparent problem may not coincide with the source of the problem. A schedule variance in a WBS level-3 element may actually originate in a level-5 package. In the cement bags example, the production systems might be working correctly and the problem may actually relate to the storage conditions in which the bags are kept prior to distribution.

o Brainstorm the source of the problem A brainstorming team should be established. The team should be multidisciplinary, cross functional and include representatives from each part of the production system. The brainstorming process should analyse the problem and try to identify all factors that could have a cause and effect. It is usually possible to establish logical scope for the brainstorming process so that it does not become unmanageable.

o Establish the problem box and primary arrow The problem is isolated in a ‘problem box’. The problem box represents the end result of whatever is wrong with the system. The ‘prime arrow’ represents the total inputs to the problem box that exist within the system. The prime arrow reflects the relevant scope limitations of the production system. If the problem is unsatisfactory cement, there are only so many factors that can contribute to this. The prime arrow represents the sum total of all the possible factors that could produce the problem.

Identify all possible primary causes and effects The next stage is to identify and add all primary possible causes and effects (within process scope limitations) of the problem. In some cases there could be a large number of potential causes and corresponding effects and it is important that each one is identified and added to the analysis. In practice there are a series of elemental areas that are generally considered. These are:

the production process; the people who work as part of the production process; the equipment and plant used; the materials used; the quality control systems that are in place; the environment.

o Identify all possible primary cause and effect components The primary cause and effect categories represent collective headings. In each case there will be a series of cause components that generate the collective primary cause and effect. As discussed above in the cement example, a primary cause and effect might be bad storage prior to distribution. This primary element will in turn comprise a number of components such as storage time, storage conditions, checking and maintenance. If the primary cause and effect is labour problems, the components might be (for example) pay levels, morale, motivation and working conditions. The relative importance of each component will directly affect the magnitude and characteristics of the primary cause and effect. The component causes are added to the analysis as shown in Figure   7.15 .

Figure 7.15 Primary causes and effect and components

o

Develop a proposed course of corrective action The analysis so far has identified the problem and shown what the main causes and effects are. For each cause and effect the analysis has also indicated what the primary components are. The analysis is now reversed so that the problem box becomes the ‘solution box’. The prime arrow now represents a solution strategy rather than the total inputs to the problem. The analysis then takes a modular approach and develops solutions for each individual primary cause and effect component. Individual corrective solutions are identified as tactical responses for each component and collectively these

correct the primary cause and effect. The result is a corrected primary cause and effect that acts as a corrective contributor to the solution strategy. The end result (in theory) is a corrective strategy that corrects the problem.

The tactical response for each component is usually delegated to the individual managers who have control over the component. For example, the ‘pay’ component might be addressed by holding negotiations with employees and agreeing a new pay structure. The concept (yet again) uses a WBS approach, where individual problems or concerns are broken down into smaller elements where individual control can be applied. This is shown diagrammatically in Figure   7.16 .

Figure 7.16 Corrective action from cause and effect analysis

Trend Analysis

Trend analysis (or linear regression analysis) is a method for working out a best-fit equation. It uses the assumption that the larger the sample size, the more accurate and representative the data become. Once all the data have been plotted, it then becomes possible to work out a formula that describes the data in terms of a best fit. The best fit, or trend line, is the line that most accurately represents the data.

Trend analysis is most powerful when used to identify strong trends over relatively long periods of time. It is often used in opinion polls and by political analysts in trying to isolate and analyse long-term shifts in voting intention. The time scale could be relatively long, such as the typical period between general elections.

Total Quality Management

TQM is another Japanese invention. It originated in Japan in the 1960s, and became integral to the great Japanese expansion of the 1960s, 1970s and 1980s. Earlier in this module the authors referred to the Japanese capture of a wide range of lucrative Western markets by building quality into their production systems. They were able to produce goods of a higher quality at the same price (and later at a lower price) than their Western competitors. In many cases, the improvement in quality was modest, but it was enough to win customers over. The Japanese did this by making quality central to the process and, equal in importance, to cost and time taken for production

Definition of TQM

TQM is a structured approach to organisation-wide quality management. It combines enterprise-wide quality management with organisational control. The key element is enterprise-wide.

- TQM needs committed employees. It is based on the overriding assumption that most quality problems originate from the process rather than from the operatives

TQM structure

1) Commitment phase: the organisation makes a high-level commitment to implementing the TQM approach. Common reasons include:

1) Changed perceptions of customer demands and expectations;2) Changing organisational structures and policy;3) The introduction of new high specification products;4) The introduction of revised industry standards;5) The introduction of new technology and altered production processes.

2) Mission phase: The mission phase involves the organisation in clearly defining the aims and objectives of the TQM system in terms of a strategic outcome. These objectives have to be clear and precise and must also be measurable

3) Customer phase: In the customer phase, the organisation reviews its current customers and researches potential new customers in relation to the TQM implementation system. Companies always have to remember that their existing and established customer-base can change.

- In addition, there might be a large potential customer-base that is not currently being exploited. There could be a number of reasons for this, and the company's approach to quality management could be one of these reasons.

- TQM systems are complex and expensive and the extent to which the eventual system is effective will depend a great deal on the customer base. Customer research and marketing are therefore vitally important, and TQM systems often involve the commissioning of very expensive and detailed market research.

4) Process phase: TQM assumes that most defects arise from the process rather than from the people who operate the process. TQM therefore requires a detailed process phase that involves a very thorough scrutiny and examination of all aspects of the production system. The process phase is more or less a matching process. The customer phase has produced a detailed assessment of what the existing and potential customer bases want. The process phase involves taking a close look at the production system and evaluating the extent to which it is capable of meeting those expectations.

5) Vision phase: The vision phase takes the customer and process phase results and establishes the outcomes as firm parameters. It then involves projecting alternative scenarios of customer requirements and alterations to the process, and choosing the optimum outcome

6) Planning phase: TQM is expensive and complex. It is intrinsically linked to many parts of the organisation. It is imperative that the TQM system is carefully planned and then monitored and controlled as it is implemented. The TQM system is usually planned at a number of different levels. The system itself has to be designed to work within the organisation. The implementation process also has to be planned. In addition, there has to be some form of tactical response planning to allow for unforeseen or non-quantified eventualities.

In most cases there will be a TQM strategic project plan (SPP) that covers both the design and implementation of the process

7) Risk management phase: In most cases, a thorough and detailed risk assessment is required, and a detailed risk management system is put in place. There will always be a risk of failure somewhere in the system. It is important to ensure that the TQM SPP is supported by a detailed risk management system

8) Breakthrough and implementation phase: ‘Breakthrough’ forms the first part of the implementation phase, the whole of which is described further next.

TQM implementation

1) Breakthrough: The concept of breakthrough is central to TQM. The breakthrough phase is effectively the mechanics that allow the strategic and annual plans to be put into operation. It involves clear and precise communication of the whole TQM system to each and every member of the organisation, with clear objectives and frequent appraisal and review. This ensures that the system is implemented organisation-wide and that all aspects of the system are communicated to employees.

Vision objectives have to be clearly established and communicated, and everybody has to know exactly what they have to do in order to meet the objectives. If necessary, training and staff development should be established so that any gaps in knowledge or expertise are corrected.

Breakthroughs are generally large-scale, fundamental quality improvements. They may involve significant investments by the organisation – perhaps in new plant and resources, training courses, procedure changes and so on. The process generally involves section heads in establishing processes for the implementation of the goals that have been set. This is done by the selection of breakthrough items or activities. These breakthrough items are usually a small number (perhaps five or six) of immediate goals that will assist an organisation in moving towards its stated objectives.

Breakthrough also requires the establishment of some kind of structure for monitoring progress towards the vision. There has to be some form of monitoring and control procedure in place in order that the rate of progress of the organisation toward achieving the goals and milestones, and progressing towards the stated vision, is controlled.

2) Daily application management: Daily application management (DAM) relates to the long-term implementation of the system. DAM is a process of establishing objectives followed by continual assessment and monitoring in order to assess performance, and then comparing this with the progress required in the plan to meet the overall goals and end vision. It requires the co-operation and involvement of all members of staff at all levels in order to monitor performance continually. It often involves the use of study groups with continuous feedback. DAM shows each employee what he or she has to do in order to keep the organisation running smoothly.

Continuous improvement is achieved by the use of problem-solving teams. These teams identify customer requirements and problems, analyse the problem, find solutions and provide feedback to the rest of the system in order to allow these solutions to be implemented. The teams then monitor the improved process in order to ensure that enhanced customer or client satisfaction is achieved.

3) Interdepartmental (cross-functional) management: Interdepartmental or cross-functional management (CFM) is the control of the TQM system across the different organisational and functional boundaries that exist within the overall organisational boundary. CFM is the integration of team activities across functional divisions and departments in order to meet published organisational goals. It ensures that all groups within the organisation are working together towards a common purpose.

Advantages and disadvantages of TQM-systems:

Advantages:

Increased organisational awareness Increased appreciation of the links between process and

performance Increased efficiency Improved communications Improved employee performance Improved operational systems Improved external relationships Improved reputation Opening potential new markets

Disadvantages:

Cost Inconvenience of disruption/change in routine Selling TQM to employees Distribution of TQM principles in international organisations Training requirements with time, cost and disruption implications Dilution in the status of TQM as it becomes standard across

several industries

Configuration management

Configuration management or configuration change control is an essential aspect of any good quality-management system. It is also one of the most important functions of a project manager, particularly on larger or more complex projects. Configuration management is about controlling change. In particular, it is about controlling the information that relates to change. As projects evolve and develop, there will be a functional relationship between the project phase and the cost required in order to make given changes. Generally, as the project develops, the opportunity for change decreases and the cost of change increases. The shape of the curve will vary depending on the project concerned. In most cases, the change–cost curve will look something like that shown in Figure   7.17 .

Figure 7.17 Typical change–cost curve for a large project

Configuration management is a control technique for formal review and approval of changes proposed to a project. It is based on the assumption that the components that form a project also form a configuration that defines the project. This configuration should only be changed in a formal and systematic manner, or the project will be adversely affected. If properly executed, a good configuration management system (CMS) provides a comprehensive change-control and management system; it also acts as a focus for change proposal consideration, and as an interface for client and contractor responses and communications. The main advantage of using an effective CMS is that it manages change and, in doing so, it controls the impact that individual changes have on the overall project.

Configuration management system components

1) Configuration format and layout: A complex project can involve a large number of different suppliers and contractors. These could be based in different cities, or even in different countries. The CMS has to link them all together into one information highway controlled by the project manager's central control system.

The CMS therefore acts as an electronic information network. It is designed to relay all relevant project information to the members of the project team that require access to that information. A CMS generally uses a central server with dedicated links to a series of PCs at remote sites within the project structure. Each piece of information has to have a separate identity, and each PC or user also has to have an identity. The software then simply works by sending the right information to the right people.

2) Configuration Identification specification: A clear identification system is essential in order for the CMS to function. The identification system includes the process of identifying each component within the system and allocating some form of unique identity. The configuration identification process comprises three primary considerations, as set out below:

System characteristics System characteristics define the way in which the CMS is assembled in relation to its environment and the characteristics of the project. The CMS will be very much restricted by the limitations that are applied to the project. There may be rigid cost limits, in which case change may be restricted unless any additional costs can be absorbed elsewhere. Alternatively, cost limits may be less rigid and change is therefore more flexible. In some cases, the approach may be to design and construct to a cost limit. This is sometimes known as the scope limiting approach.

The alternative is the cost-effectiveness approach. Here, the design team works to minimise the ratio between the cost of the solution and the cost of its effectiveness. In both cases, there is a need to define and estimate the value of some performance measures for cost and effectiveness. This in itself tends to result in a more efficient and effective project, although costs at the outset are more difficult to establish.

Project-relevant information The CMS delivers information. The main objective of the concept is to provide and communicate information that is useful to the project team, for there is no point in providing information that is not useful. Typical information relating to a drawing issue that might be useful to the project manager, which the CMS can readily provide, includes:

date of drawing issue; drawing revision number; drawing author, authoriser and checker; date when drawing received by project team members (with receipts); electronic receipts from all recipients; flags for action.

An effective CMS depends very much upon the accuracy of the identification system used for data and entries. Identification consists of the selection of configuration items. Configuration items are components within the CMS that are assigned a unique identity. Typical examples might include:

project team members; other involved individuals and companies; individual PC and other hardware ports; project information systems (drawings, schedules, letters, instructions

etc.); project change orders and history.

o Data analysis and classification In order for information to be useful, it has to be classified in some way. Having identified the useful information that is to be presented by the CMS, the next stage is to classify the components of that information in some way. This stage is usually achieved by assigning a simple code to each component. The codes are designed to provide a range of specific information that is unique to each configuration item. A typical arrangement of configuration identification codes would include items such as: equipment specification number; equipment identifier number; drawing and part number; revision number and date of revision; change identification number;

manufacturer's code identification numbers.

For project team members, typical code systems might include:

full name; individual identification code and system user name; personal settings and configuration control reference; organisation; direct report; project authority level; project security clearance level; primary responsibilities; change control approval limit.

3) Configuration change control system: A typical change-control system involves the development of procedures that govern three steps:

1. Identification of a change requirement and submission of a change request;2. Appropriate consideration and approval or rejection of the change request;3. Authorisation and issue of an appropriate change order followed by implementation.

Some special considerations related to these aspects are the following:

a) Procedural considerations Under a formal change control process, a formal change request is prepared and submitted. A change request is generated, sometimes automatically, by the CMS.

The change notice itself might specify:

a. The identity of the WBS element, sub-element or work package concerned;b. Relevant cost account code details;c. Current EVA and PVAR status;d. Any existing PVAR corrective actions that affect the work concerned;e. Reasons for the change request;f. Linkages to any other work and possible consequences of authorisation or

refusal of the change request;g. Records of any previous change requests that affect the work concerned;h. Details of the level of authorisation required;i. Likely time scales involved if higher level authorisation is required;j. Estimated time and cost implications of the change request;k. Implications for the project as a whole (including effects on the overall cost

and durationb) Authority clearance The evaluation process would be carried out either by the

project manager directly or by a team of project representatives. These generally represent all of the main organisational functions that could be affected by the change. In most cases, the client or an appointed representative would also be present and would probably have the final authority to approve or reject. On large projects, a permanent change-control and review board (CCRB) would consider all change requests before approving or rejecting them

It will be appreciated that the configuration management process is always changing. As changes are implemented, the project changes and the configuration management process adapts to suit the changed environment. A CMS is therefore dynamic and has to be designed as such. The status of the CMS will change from one point to the next. Status changes are monitored via a configuration accounting process.

c) Schedule constraints The timing of a change is generally important. The project is planned carefully and the various activities and durations are interlinked. Change in the design stage often involved modifications to the design that has already evolved and there may be some resultant abortive design work. The change may introduce a requirement for new design work, which may have a considerable time implication. It is therefore advisable to identify and develop any associated design requirements before the change order request is submitted. The further the associated design has progressed the more chance there is of the change order being approved.

d) Gateways and checkpoints The timing issues discussed above generate another problem. The original change that is adopted as a configuration item may continue to evolve separately. The individual designers and engineers may continue working on the design or product after it has been introduced to the change control system. In addition, there may be several versions of the same item. A checkpoint is a way of making sure that design changes are put into the public domain and that continuing design changes are not hidden or kept private.

4) Configuration status accounting and reporting: The idea of configuration status accounting and reporting (CSAR) is to keep a record and history of all the changes that are being made to the project. This allows a continuous comparison to be made against the baseline (see Section   7.6.3 ) and it ensures traceability for changes. CSAR provides updates showing actual project performance against projected performance. It effectively involves a comparison between the baseline and current values. The audit process is a full part of the CMS, and effectively acts to monitor change. The accounting process would normally be centralised on a separate database.

Typical database entries would include the following items:

o configuration item identity;o relevant WBS element, sub-element or work package identity;o date of creation of configuration items;o history of change requests relating to the configuration item;o history of approvals or rejections of previous change requests;o reasons for previous rejections (where appropriate);o history of approved change requests and performance of subsequent work;o history of estimated impact on project time and cost objectives;o history of any previous monitoring and reporting outcomes.

This level of detail is essential for traceability.

5)Configuration audit and feedback: Review and audit is essential to any quality management system. It is important that the CMS contains procedures and processes for providing the team and the customer with an effective guarantee that the CMS provides the required level of performance. In other words, the configuration audit process confirms that the product complies in all respects with the specification, regardless of the changes that have been made to it.

Configuration management baselines

Baselines are central to configuration management. A baseline is a window that shows the performance of the project at any moment in time. This could be the projected end performance for the project or the actual performance as of today. The main function of the baseline is to act as a standard against which actual performance can be measured as the project progresses through its life cycle.

o Project level 1 (project life cycle) baseline   A good CMS establishes a different baseline for each phase of the development of the project. The project level 1 baseline is sometimes referred to as the functional objective baseline or the project outcome requirements baseline. The project level 1 baseline is the first baseline that is developed for the project. It is prepared in the early stages of the project life cycle and usually contains an order of magnitude estimate of the overall project cost. The project level 1 baseline typically contains a client brief and details about the basic contractual procedures and approaches that are to be used.

o Project level 2 (detailed design) baseline The project level 2 baseline is sometimes known as the allocated baseline or the design requirements baseline. The project level 2 baseline normally contains an indicative estimate of the project cost together with detailed design information showing full design details.

o Project level 3 (production information) baseline The project level 3 baseline contains a definitive estimate of the cost of the project and all other necessary design information that will allow the project to be implemented.

o Project level 4 (tender stage) baseline The project level 4 baseline is sometimes referred to as the definitive project product baseline or the product configuration baseline. It contains all of the information contained in the project level 3 baseline but updated to allow for agreed contractor, subcontractor and supplier tenders. It also includes (where appropriate) an agreed programme of works and method statement as supplied by the main or prime contractor. The project level 4 baseline forms the SPP baseline and acts as a contract document.

o Project level 5 (execution) baseline The project level 5 baseline is developed during the execution of the project. It is a dynamic baseline and is constantly adjusted for changes as the project continues.

Concurrent engineering and time-based competition

Introduction: Concurrent engineering is another specific quality management tool. It is one approach to time-based competition (TBC). Some researchers think that TBC could be the next big playing field for the multinational companies over the first ten years of the new millennium. Some authors have referred to this process as the ‘contest of the turbo marketers’.

Over the past twenty years or so, all the big companies have downsized and outsourced to such an extent that they are running at near peak efficiency. It is not possible to trim off any more surplus because, in theory at least, it has all gone already. Given that all these companies are already optimised in terms of efficiency and performance, how can they still get an edge on the competition? The answer obviously varies from sector to sector and from company to company. However, in sectors that have a rapidly changing product base, one obvious way is to develop new products and get them on the shelves before the competition does.

The concept of concurrent engineering:

US project managers are traditionally regarded as being the masters of concurrent engineering. They have used phased and fast-track approaches (see Section   7.7.3 ) to reduce the time that it has taken to develop new products and get them on to the market ahead of the competition.

Concurrent engineering is effectively concerned with the overlapping and blurring of traditional life cycle phases. Concurrent engineering basically takes the existing life cycle phases of a project and blurs the edges and overlaps life cycle phases where practicable. This allows the same amount of project work to be done with in a smaller overall time. In this respect, concurrent engineering is a ‘beyond trade-off’ consideration.

Trade-off curve using concurrent engineering

Effective concurrent engineering, especially the fast-track technique, depends on an efficient management and control system. There is obviously more risk involved, and the scope for problems is clearly much greater than on a conventional programme. The basic requirements for an effective concurrent engineering system are:

o parallel rather than sequential activity scheduling;o multiple and concurrent use of resources;o very careful monitoring and control;o immediate response to delay;o efficient and very reliable communications systems;o effective and proven use of a good CMS;o clear stated aims and objectives for all levels of the OBS;o detailed understanding of the complex linkages and dependencies within the WBS;o immediate response to change;o powerful change control;o immediate authorisations where required;o extensive sharing of information;o absence of any ‘political’ influence and (especially) interference;o multidisciplinary and cross functional working;o ability to multi-task;o fast and accurate reporting and report response;o blurring of element and package boundaries;o effective and efficient use of the IMS;o immediate co-operation from subcontractors suppliers and other external bodies;o close and immediate client interfacing.

The process of concurrent engineering is sometimes also referred to as time compression. It enables a product to hit the market earlier than it might have done. This can have two payoffs. First, the product might well get there ahead of the competition and therefore the product is available before the competition and people are more likely to buy it. Second, the fact that it is there first may mean that the manufacturer can charge a premium, again because the competition is weak.

The basic idea of concurrent engineering is to use project scheduling and resource management techniques in the entire life cycle of a project. These techniques have long been used in time and cost scheduling of the production phase, but concurrent engineering extends this application to the entire life cycle of a project. Concurrent engineering is based on designing, developing, testing and building the product as a sequence of concurrent activities

Phased and fast-track concurrent engineering.

Concurrent engineering allows the project development and execution phases to develop and run concurrently. The actual phases may not operate in parallel, but the contributions from the various members of the design team are made in parallel as opposed to in serial. This has obvious implications for projects where there is considerable reciprocal or pooled interdependency

Phased concurrent engineering occurs where the project is separated into individual work packages and each package retains a separate design and execution phase. However, the sequential arrangement of the packages is blurred and some overlap takes place between the various packages – although, in each case, package design is complete before package execution commences.

Fast-track concurrent engineering

The next stage is to split design and execution for the individual packages and run with design–execution overlaps. In other words, for each work package the execution phase starts before the design phase is complete. In addition, each package overlaps. This arrangement is shown diagrammatically in Figure   7.24 . With a fast-track arrangement, individual work packages are still being designed when the execution phase starts. In addition, the activities themselves are overlapped. Fast track gives the shortest possible time for completing any given amount of work.

Figure 7.24 Typical fast-track concurrent engineering arrangement

Concurrent engineering, whether phased or fast-track, is more applicable to some projects than to others. It clearly requires a higher level of control and management than traditional sequential engineering approaches. Generally, the project should be based on the development of known technology – for example, novel applications of known technology, or routine applications of known technology. Repetitive relatively simple projects are obviously more suited to concurrent engineering than more complex one-off projects. In addition, concurrent engineering does not work well where the end result of the project requires significant levels of innovation

Concurrent engineering also has project team implications. The team must know what concurrent engineering is, how it works and how to use it. Most conventional project teams would initially feel very uneasy about working to such a compressed project time scale. Concurrent engineering is a risky approach and can only be used with any hope of success if it tackled by people who have used it before and know the risks. It also requires a very detailed risk-assessment and risk-management system.

Advantages of concurrent engineering

Achievement of earlier completion dates Compliance with change (shorter time for change requests) Change control flexibility (less formal change bureaucracy) Earlier launch of products Improved innovation Improved break-even and revenue generation due to earlier

launch Improved control of creeping scope (shortened change

opportunity window) Improved design and execution integration (designers and

implementers work together) Improved performance (due to higher levels of control and

collaboration)

Disadvantages of concurrent engineering

Requirement for close internal control (need for communication, team-building and conflict control)

Requirement for multi-functional working (some may have difficulties adapting to the wide area of professional focus)

Requirement to accept increased risk:o May be no design drawings or schedules

o Lack of detailed design can lead to a lack of clear understanding by the client

o Little time to explain things to everyone, trust becomes important

o There may be reduced opportunities for risk mitigation and transfer

Requirement for close external control (external suppliers/contractors have little margin for error. This may lead to inflated tender costs)

Version 2

Project ManagementModule 7: Project Quality Management

Introduction

ISO9000 defines quality as:

The totality of feature and characteristics of a product or service that bears on its ability to satisfy stated or implied goals.

Quality is one of the main technical ‘non-people’ control issues in project management. It forms the boundary of the time-cost quality continuum discussed in Module 1 and 2.

Quality control is just as important as time and cost control. There is no point in completing a project early, or under the cost limit, if the end product is defective or does not meet the specifications or minimum standards that apply. Equally, it is dangerous to trade off quality performance against cost or time. The negative effects of doing so may not be so immediately obvious, but can have equal or greater implications later on. Indeed, quality is unique amongst the classic success criteria in that is has a true value and cost that may be well above the immediate amounts quantified in standard trade-off analysis.

It is one thing to deliver a project late, it is quite another to deliver a project on time but with defects. Such defects can affect the whole attitude of the client and/or the customer base. Once client and/or customer confidence in the product has been damaged, it can be extremely difficult to recover that confidence. There are numerous examples of companies have experienced quality problems that have damaged their reputation to such an extent that they never recover. Some of these examples will be discussed in the module.

Quality management extends beyond the quality assurance and control systems that are evident in most production systems. The establishment of quality assurance and control systems can be a relatively straightforward process in some cases. A system to check the repetitive manufacture of products such as bottles or screws can use a relatively simple sampling process, backed up by some kind of straightforward statistical analysis. The sampling process can take random samples from each production run and compare these against a standard product. Variations in quality can be established within some kind of limit. Bottle glass might be evaluated in terms of the number of imperfections that are visible within a sample area, or in terms of the weight of the bottle in relation to the standard. Bottles that fall outside acceptable limits are rejected, either individually or in batches.

This kind of approach is not possible on all production systems. Projects are by definition non-repetitive, and it is therefore not possible to apply standard sampling techniques on batches of outputs. In addition, projects tend to be complex; there may be a requirement for large numbers of quality controls on a wide range of different parts of the system. This module therefore looks at the wider range of issues surrounding quality management as a concept, and it examines some specific applications of quality management in more detail.

Learning Objectives

By the time you have completed this section, you should be able to:

Understand the concept of quality management Understand the concept of configuration management Understand the main principles of concurrent engineering Define and discuss the quality management “six pack” Summarize the primary quality-control tools Understand the main principles of total quality management (TQM) Summarize the main historical TQM “guru” approaches Understand the concept of quality function deployment (QFD)

Learning Summary

Quality Management as a Concept

Quality implies providing products and services that are perceived to meet or exceed the expectations of the customer at a cost that represents outstanding value.

Quality management is about the design and implementation of monitoring and control systems that enable the producer to manufacture goods to a guaranteed standard of quality for a given price.

Quality cannot in most cases be considered in isolation from time and cost. There is virtually always a trade-off to be made in setting standards for one or more of these variables.

Most quality-cost curves are curvilinear, with the cost per unit of quality increasing more and more rapidly as the process approaches zero defects. For this reason, most organizations assess their production systems, decide on a reasonable level of defects and cover the defect occurrences with warranties and guarantees.

Acceptable defect rates will vary depending on the product and consequences of a defect occurring.

The true cost of defects is much higher than the actual cost of replacing defective goods under warranties or guarantees. Customer loyalty and confidence can have a very high value.

Perrier and Pan American Airways are examples of companies that have experienced the true cost of defects.

The true value of payback can be far higher than current net income. The balance between preventive and responsive strategies is a choice that faces most quality

managers at some point. Generally, preventive systems are very expensive if high quality standards are required.

Generally, preventive defect management is better than responsive defect management. Quality improvement management is a matter of improving the whole business process from

one end to the other. It is far less effective if its application is anything less than universal. BS5750 was until recently an important British standard for quality management. It has now

been superseded by ISO 9000. This is the latest attempt at a generic international quality standard that is applicable throughout western Europe.

ISO9000 is basically a never-ending cycle including planning, controlling, and documentation. However, as with the former BS5750, the fact that a company is ISO9000 accredited does not mean that the company produces only high-quality products. It merely shows that the necessary procedures are in place-or at least were at the time that the appropriate inspections were carried out.

The Quality Gurus

Most contemporary quality management and TQM theory has evolved from the earlier workings of a number of quality gurus. Gurus are people who advance knowledge largely by inspiration and original thought, as opposed to classical researchers who base any advancement on existing literature.

The main quality gurus have been Deming, Juran, Crosby, and Imai. The gurus all agree that quality management and performance improvement have to be

applied throughout the organization. It is no use improving the performance of 90 per cent of the company if the remaining 10 per cent lets it down.

The gurus all agree on the fact that most problems with quality relate to the process rather than the operatives. If the process is set up correctly, the chances are that the people who use the process will use it effectively.

There is a general agreement that any production process has to be broken down into its component elements so that individual aspects that are causing problems can be isolated.

Another area of general agreement is on the importance of the customer. The end result of the whole process is sales, and sales depend on the product being in line with customer expectations.

The gurus all agree that the quality approach has to be applied at all levels throughout the organization and that each section and individual has to want it to succeed.

The Deming approach is very much worker-oriented and appeals to the democratic-type manager. It has a core of statistical analysis supporting a fourteen-point plan for managers.

Juran’s approach suggested that senior management must establish top level strategic and annual plans for annual improvement in quality. It is a highly structured and coordinated approach based on complex planning and implementation control. It is far more controlled than the Deming approach.

Juran’s approach tends to appeal more to boss-type managers who identify with a rigid control system.

Crosby, like Deming, produced a fourteen-stage process for quality improvement. Its emphasis is on preventing defects at source by designing and constructing a production system that has inbuilt quality.

The Imai approach assumes that, by continually improving processes and systems, the organization will inevitably arrive at a better product or service. The Imai approach is highly structured and is aimed at structured production type managers.

Imai’s theories became known as the “P” approach (the process approach) because they concentrate on the process rather than the results. This was at odds with the approach of the classical motivational theorists, who tended to assume an “R” approach (the results approach).

The Quality Management Six Pack

Quality management is the process of managing quality in order to ensure that certain established standards are achieved.

The quality management six pack comprises quality policy, quality objectives, quality assurance, quality control, quality audit, and quality assurance plan and review.

Quality policy is a statement of the policy of the organization on quality, defining the organization’s attitude and approaches to quality and setting out overall targets for performance.

Increasingly, organizations are issuing quality policies in the form of charters. Hospitals operating as independent trusts might issue a patient’s charter that specifies performance levels in areas of greatest concern to patients. Obvious examples would include limits on waiting times to see a consultant or for operations, or for providing transport or special access.

The primary components of a quality policy would be organizational quality objectives, minimum levels of acceptable quality, and individual organization member’s responsibility for implementation.

The quality policy should be (and should be seen to be) in the interests of senior management. Measurable performance criteria should be established so that actual performance levels can be determined.

Quality objectives are effectively part of the quality policy. The objectives convert the main aspects of the policy into individual statements of what has to be done by individual sections in order to achieve the overall policy outcomes.

Quality objectives should be achievable, be based around specific goals, be related to overall specific standards or deadlines, and be suitably resourced.

“Quality assurance” is a collective term applied to a wide range of activities and processes that are used as drivers to ensure that the system performs and produces results complying with what has been specified.

Quality assurance also includes the collection and use of information from outside the manufacturing process, and even from outside the organization. This information is used for comparative purposes and as feedback or input for improving the system.

Generally, a good quality-assurance system will identify objectives in relation to workable standards. It will be multifunctional and will operate as part of a continual cycle for system improvement.

Quality control is another collective term. It is usually applied to a range of processes and activities that are intended to create specific quality performance characteristics. Such processes include continuous sampling, with results being supplied by some form of statistical analysis. These results are then compared to the standards established as part of the quality assurance system in order to evaluate the performance of different levels of the OBS.

A quality management system must have an audit process. The idea of this is that a high-level check is carried out by independent personnel in order to ensure that the project’s quality performance standards are being met.

The quality management plan is analogous to the PMS and project cost plan. It breaks down the quality objectives of the organization and expresses them in terms of individual targets for different sections of the organization.

The quality assurance plan itself can be formulated fairly easily by producing a quality assurance matrix using a combined OBS and WBS elements, broken down into work packages and assigned using a TRM.

The quality assurance matrix is generally developed by a project quality assurance team (if this exists as a separate entity) or, alternatively, by the project manager. It shows what is required, who is responsible for achieving it and how that person is to achieve his or her objectives. It is essentially a TRM applied to quality management.

Data tables provide a simple method for collecting and arranging quality data. The main applications are in repetitive operations, where the same materials are being produced by the same suppliers and are being consumed by the same client or customer. They provide a consistent and reliable method for collecting and analyzing quality data.

A pareto diagram is a type of histogram. The objective is to produce a graphical representation that identifies the problem areas. It also gives an approximation of the relative value or size of the problem area. It isolates areas of nonconformity in data presentations and, by doing so, it draws the attention towards the most frequently occurring element.

Scatter diagrams analyze the correlation between two quality variables. They are based on the concept of having dependent and independent variables. Variations in one as a function of the other are shown on a simple two-axis graph.

Control charts are an example of a preventative approach. They attempt to prevent defects, rather than detecting and isolating them after they have occurred. Most forms of control chart are based upon a standard normal distribution.

Cause and effect analysis uses a six-stage process to isolate a problem and then traces back through the system to identify possible origins for the problem. The process is then reversed to provide a route to converting remedial measures to an improved system.

Trend analysis is a method for determining the equation that best fits the data in a scatter plot. It quantifies the relationships of the data, determines the equation, and measures the fit of the equation to the data.

Total Quality Management

TQM is increasingly becoming a standard component of all UK organizational endeavor. TQM is especially important in project management because quality has to be considered as

an engineerable entity alongside project time and cost. TQM is a structured approach to the creation of organization-wide participation in planning

and implementing a continuous improvement process that exceeds the expectations of the customer.

Any TQM system has to be planned and researched before it can be implemented. TQM planning comprises eight primary phases. These are the commitment phase, mission phase, customer phase, process phase, vision phase, planning phase, risk management phase, and breakthrough and implementation phase.

TQM implementation has three major components: breakthrough, daily management, and cross-functional management.

Breakthroughs are generally large-scale, fundamental quality improvements. They may involve significant investments by the organization—perhaps in new plant and resources, training courses, procedure changes, and so on.

Daily management is the long-term implementation of the system. It is a process of continual assessment and monitoring in order to assess performance and then comparing this with the progress required in the plan to meet the overall goals and end vision.

Cross-functional management is the integration of team activities across functional divisions and departments in order to meet organizational goals. It ensures that all groups within the organization are working together towards a common purpose.

Configuration Management

Configuration management or configuration change control, is one aspect of any good quality management system. It is also one of the most important functions of the project manager, particularly on larger or more complex projects.

Configuration management is about controlling change. In particular, it is about controlling the information that relates to change.

Configuration management is a control technique for formal review and approval of change on a project. If properly executed, a good configuration management system (CMS) provides a comprehensive change-control and management system. It also acts as a focus for change proposal and consideration and as an interface for client and contractor responses and communications.

The main components of a CMS are configuration format and layout, configuration identification specification, configuration change control system, configuration status accounting and reporting, and configuration auditing and feedback.

Configuration selection is the way in which then CMS is assembled in relation to its environment and the characteristics of the project. The CMS will depend on the limitations applied to the project.

Typical configuration item information that might be useful to the project manager, which the CMS can readily provide, might be date of drawing issue, drawing revision number, drawing author and authorizer, date when drawing received by project team members, and similar.

Configuration identification specification comprises the allocation of codes to the identified items. The codes are designed to provide a range of specific information unique to each configuration item.

A configuration change control system typically includes facilities for preparation of a change request, evaluation of a change request and management of the implementation of the approved changes.

Configuration status accounting and reporting (CSAR) provides for the updated recording of current configuration, identification (including all baselines and configuration items) and historical baselines and approved changes. It also acts as a register of pending change and reports on the status of implementation of approved changes.

Configuration auditing and feedback includes a review of development test plans and test results as well as a summary of required tests not yet performed. It also provides details on deviation from plan, and waivers.

Concurrent Engineering and Time-Based Competition

Concurrent engineering is basically an approach to support time-based competition. Time-based competition is about developing new products and then getting them to the

market before the competition does. Concurrent engineering allows the project development and construction phases to develop

and run them concurrently. The actual phases may not operate in parallel, but the contributions from the various members of the design team are made in parallel as opposed to serially.

Phased concurrent engineering occurs where the project is separated into individual work packages and each package retains a separate design and execution phase. However, the sequential arrangement of the packages is blurred and some overlap takes place between the various package execution commences.

Fast-track concurrent engineering occurs where individual package design and execution overlap and also each individual work package overlaps.