project quality management6)_pmbody_of_knowledge… · 21/11/2015 · term (1) assiut university...

Project Management Body Project Management Body Of KnowledgeOf Knowledge

Faculty of Computers and InformationFaculty of Computers and Information

Academic Year 2014/ 2015Term (1)

Ass iut UniversityAss iut University

Project Quality ManagementProject Quality Management

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Agenda

� Week 1

¡ Introduction to Project Management

¡ Organizational Influences and Project Life Cycle

� Week 2

¡ Project Management Processes

¡ Project Integration Management

� Week 3

¡ Project Scope Management

� Week 4

¡ Project Time Management

� Week 5

¡ Project Cost Management

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� Week 7

¡ Project Quality Management

¡ Project Risk Management

� Week 8

¡ Project Stakeholder Management

¡ Project Communications Management

� Week 9

¡ Project Human Resource Management

¡ Project Procurement Management

� Week 10

¡ Agile Project Management Techniques and Practices

� Week 11

¡ Agile Development / SDLC Models

� Week 12

¡ Wrap-up / Revision

� Week 6 (7 Dec 2014)

Mid-Term Exam

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What is Quality?• International Organization for Standardization (ISO) defines

quality as– The totality of characteristics of an entity that bear on its ability to satisfy

stated or implied needs. (ISO 8024:1994)

– The degree to which a set of inherent characteristics fulfils requirements. (ISO9000:2000)

• Others define quality base on conformance to requirements and fitness for use.– Conformance to requirements means The processes and products

meet written specifications.

– Fitness for use means a product can be used as it was intended.

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What is Grade?

•“Grade, is a category assigned to products or services having the same functional use but different technical characteristics.”– e.g., a software product can be of;

• High quality (no obvious defects, readable manual) and

• Low grade (a limited number of features),

or of

• Low quality (many defects, poorly organized user documentation) and

• High grade (numerous features).

4PM with his team are responsible to manage the tradeoffs involved to deliver the required levels of both Quality and Grade

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Precision Vs. Accuracy

••PrecisionPrecision means the values of repeated measurements are clustered and have little scatter.

••AccuracyAccuracy means that the measured value is very close to the true value.

– Precision measurements are not necessarily accurate.

– A very accurate measurement is not necessarily precise.

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PM with his team must determine appropriate levels of Accuracy & Precision

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Quality Management Approaches

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Ø Deming –“Dr. W. Edwards Deming”

ü Deming’s Cycle for Improvement:

Plan –Do –Check –Act

PLAN for changes to bring about important

DO changes on a small scale first to trial them

CHECK to see if changes are working and to investigate selected processes

ACT to get the greatest benefit from changes

Ø Juran –“Joseph M. Juran”He stressed on the importance of top management commitment to continuous product quality improvement

Ø Crosby –“Philip B. Crosby”

Best know for suggesting the organizations strive for zero defects.

He stressed that cost of poor quality should include all the costs of not doing the job right the first time, such as scrap, rework, lost labor and machine hours, lost sales and warranty costs. (cost of non(cost of non--conformance)conformance)

Quality comes from prevention

Quality Gurus Quality Gurus ((11))

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Quality Management Approaches

• Ishikawa – “Kaoru Ishikawa”ü He developed the concept of Quality

Circles and pioneered the use of cause-and-effect diagrams (Fish bone diagram)

ü Quality Circles are groups of non-supervisors and work leaders in a single company department who volunteer to conduct group studies on how to improve the effectiveness of work in their department.

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n Taguchi –“Genichi Taguchi”ü He designed methods for high-quality products, which focused on eliminating

defects by substituting scientific inquiry for trial-and-error methods

ü Key concepts of Taguchi methods:Ø Quality should be designed into the product and not inspected into it.Ø Quality is best achieved by minimizing deviation from the target value.

n Feigenbaum –“Armand V Feigenbaum” ü He developed the concept

of Total Quality Control (TQC)

ü The responsibility for quality should rest with the people who do the work

Quality Gurus Quality Gurus ((22))

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Quality Concept

Zero Defect Implies that there is no tolerance for errors within the system

Do The Right Thing Right The First Time

Implies that it is easier and less costly to do the work right the first time than it is to do it the second Time

The Customer is the Next Person in the Process

Focuses on improving quality at each step of production. Quality goals set for each step as if the final product is being delivered to the customer.

Continuous Improvement Process - CIP

A concept which recognizes that the world is constantly changing and any process that is satisfactory today may well be unsatisfactory tomorrow

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Modern Quality Management

• Customer satisfactionUnderstanding, evaluating, defining, and managing expectations so that customer expectations are met. (a combination of conformance to requirements and fitness for use)

• Prevention over inspectionThe cost of avoiding mistakes is much less than the cost of correcting them (quality is planned, designed, and built-in NOT inspected-in)

• Continuous improvement. Plan-Do-Check-Act cycle, is the basis for quality improvementTQM and Six Sigma, improve the quality of PM as well as project’s outcome – Product.

OPM3 “Org. Project Management Maturity Model” and CMMI “Capability Maturity Model Integrated, are Process improvement models.

• Management responsibility Success requires participation of all team members, but it is the responsibility of management to provide resources needed.

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Project Quality ManagementProject Quality Management

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Project Quality Management

• Includes the processes and 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

• Implements the quality management system through policy, and procedures with continuous process improvement activitiesconducted throughout, as appropriate

• Must address both the management of the project and the deliverables of the project

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Project Quality Management Processes

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Project QualityManagement

Plan Quality Management

Perform Quality Assurance

Quality Control

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• Plan Quality is the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance.

• Quality planning should be performed in parallel with the other project planning processes.

– e.g. Proposed changes in the product to meet identified quality standards may require cost or schedule adjustmentsand of course risk analysis of the impact to plans

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Plan Quality

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Inputs

•Project management plan

•Stakeholder Register

•Risk register

•Requirement documentation

•Enterprise Environmental Factors

•Organizational Process Assets

•Cost-benefit analysis

•Cost of quality

•Seven Basic Quality tools

•Benchmarking

•Design of experiments

•Statistical sampling

•Additional quality planning tools

•Meeting

•Quality management plan

•Process improvement plan

•Quality metrics

•Quality checklists

•Project document updates

Tools and Techniques

Outputs

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Plan Quality: Input

• Project management Plan– Scope Baseline, contains the project description, major deliverables, and

acceptance criteria.

Ø The product scope description contains details of technical issues and other concerns, which might affect quality planning

Ø Acceptance criteria can significantly increase or decrease project costs quality costs

– WBS, is a deliverable-oriented hierarchical decomposition of the work to be executed by project team to accomplish project objectives and create required deliverables.Ø Identifies the deliverables, work packages, and control accounts used to measure project

performance.

– WBS Dictionary, describes each component in the WBS (technical information)

• WBS dictionary includes a:– Code of account identifier

– Statement of work

– Responsible organization

– List of schedule milestones

– Contract information

– Quality requirements, … … 15

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Plan Quality: Input (2)

• Stakeholder Register– Identifies stakeholders with a particular interest in, or impact on, quality

• Cost Baseline– Documents the accepted time phase used to measure cost performance

• Schedule Baseline– Documents the accepted schedule performance measures including start

and finish dates

• Risk Register– Contains information on threats and opportunities that may impact quality

requirements

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Plan Quality: Tools & Techniques (1)

• Cost-Benefit Analysis– The primary benefits of meeting quality requirements can include less rework, higher

productivity, lower costs, and increased stakeholder satisfaction.

• Benefit = less rework , higher productivity, lower costs, and increased stakeholder satisfaction.

• Cost = expense associated with Project Quality Management activities

– Cost–benefit analysis is used mainly to assess the monetary value of very large private and public sector projects.

Because such projects tend to include costs and benefits that are less amenable to being expressed in financial or monetary terms (e.g., environmental damage), as well as those that can be expressed in monetary terms.

Total up all the positive factors (benefits),Total up all the negative factors (costs),

Find the difference between the two17

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Cost Of Quality – COQ

• COQ is the total cost of all efforts related to quality throughout the product or service life cycle to achieve quality

• This includes all work to ensure conformance to the requirements, as well as all work resulting from non-conformance to the requirements (product returns, warranty claims, and recall campaigns)

• There are three types of costs that are incurred:

Ø Preventive costs

Ø Appraisal costs

Ø Failure costs (internal and external)

• Due to the temporary nature of a project, sponsoring Org. choose to invest in product quality improvement, especially defect prevention and appraisal, to reduce the external cost of quality.

• Cost of a quality system is often viewed as a negative cost because errors in work have been traditionally accepted as a cost of doing business

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Quality Cost Types• Prevention Cost: The cost of planning and executing a project so that it

is error-free or within an acceptable error range

• Appraisal Cost: The cost of evaluating processes and their outputs to ensure that the project is error-free or within an acceptable error range

• Failure Cost - Internal : A cost incurred to correct an identified defect before the customer receives the product

• Failure Cost - External : A cost that relates to all errors not detected and not corrected before delivery to the customer

• Measurement & Test Equipment Costs: the capital cost of equipment used to perform prevention and appraisal activities

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• Cost of Quality – COQ– Total cost of all activities aimed at ensuring product quality– Failure costs are often categorized into internal (found by the project) and external (found by the

customer), also called Cost of Poor Quality.

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(assess the quality)•Testing•Destructive testing

loss•Inspection

Cost of Conformance

Prevention Appraisal(Build a quality product)•Training•Document Processes•Equipment•Time to do it right•Reviews

Money spent during the projectTo avoid Failures

Cost of non-Conformance

InternalFailure

ExternalFailure

(Failures found by the project)

•Rework•Scrap

Money spent during and after the projectBecause of Failures

(Failures found by the customer)

•Liabilities•Warranty work•Lost business

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• Benchmarking– Involves comparing actual or planned project practices to those of comparable

projects to identify;• Best practices, • Generate ideas for improvement, and• Provide a basis for measuring performance

– These other projects can be within the performing organization or outside, and can be within same or in another application area.

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n Statistical Sampling

n 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)

n Sample frequency and sizes should be determined during the Plan Quality process so the cost of quality will include the number of tests, expected scrap, etc

Sample size = 0.25×(certainty factor/acceptable error)2

acceptable error = (1- Desired Certainty)

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Desired Certainty Certainty Factor

95% 1.960

90% 1.645

80% 1.281

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Ex.Ex.

Suppose production manager accepts 95% certainty (5% error) that a sample of products would contain no variation. He would calculate the sample size?

Commonly used certainty factors

Sample size = 0.25 × (Certainty Factor / (1- Desired Certainty))2

Sample size = 0.25 × (1.96 / 0.05)2 = 384

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• Flowcharting– Flowcharts are any diagrams that allow to

examine and understand the relationships between various elements of a system.

– Graphical representation of a process showing the relationships among process steps.

– Flowcharting can help the project team anticipate quality problems that might occur. An awareness of potential problems can result in the development of test procedures or approaches for dealing with them.

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• Proprietary Quality Management Methodologies

– These include Six Sigma, Lean Six Sigma, Quality Function Deployment, CMMI®, etc.

– Define-Measure-Analyze-Improve-Control

• Additional Quality Planning Tools– Brainstorming

– Affinity diagrams, used to visually identify logical groupings based on natural relationships.

– Force field analysis, which are diagrams of the forces for and against change.

– Nominal group techniques, to allow ideas to be brainstormed in small groups and then reviewed by a larger group.

– Matrix diagrams, which include two, three, or four groups of information and show relationships between factors, causes, and objectives

– Prioritization matrices, which provide a way of ranking a diverse set of problems and/or issues (usually generated through brainstorming) by their importance.

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Plan Quality - Outputs (1)

• Quality Management Plan

– Describes how the project management team will implement the performing organization’s quality policy.

– The quality management plan provides input to the overall project management plan and includes quality control, quality assurance, and continuous process improvement approaches for the project.

• Quality Metrics

– An operational definition that describes, in very specific terms, a project or product attribute and how the quality control process will measure it.

– A measurement is an actual value. The tolerance defines the allowable variations on the metrics.

• For example, a metric related to the quality objective of staying within the approved budget by ±10% could be to measure the cost of every deliverable and determine the percent variance from the approved budget for that deliverable.

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Plan Quality - Outputs (2)

• Quality Checklists

– Used to verify that a set of required steps has been performed.

– Checklists range from simple to complex based on project requirements and practices.

– Quality checklists are used in the quality control process.

• Process Improvement Plan

It details the steps for analyzing processes to identify activities which enhance their value.

– Process boundaries. Describes the purpose of processes, their start and end, their inputs/outputs, the data required, the owner, and the stakeholders.

– Process configuration. A graphic depiction of processes, with interfaces identified, used to facilitate analysis.

– Process metrics. Along with control limits, allows analysis of process efficiency.

– Targets for improved performance. Guides the process improvement activities.

• Project Document Updates

– Project documents that may be updated include, but are not limited to:

• Stakeholder register, and

• Responsibility Assignment Matrix26

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Quality Control

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• Is the process of auditing the quality requirements and the results from quality control measurements to ensure appropriate quality standards and operational definitions are used.

• An execution process that uses data created during Perform Quality Control.

• Involves periodically evaluating overall project performance to ensure that the project will satisfy the relevant quality standards.

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Inputs

•Quality management plan

•Process improvement plan

•Quality metrics •Quality control

measurements •Project document

•Quality management and control tools

•Quality audits

•Process analysis

•Change requests

•Project management plan Updates


•Organizational process assets updates


Outputs

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Perform Quality Assurance : Input

• Project Management Plan– Quality management plan.

The quality management plan describes how quality assurance will be performed within the project.

– Process improvement plan.The process improvement plan details the steps for analyzing processes to identify activities which enhance their value.

• Quality Metrics مقایس الجوده– A quality metric specifically describes a project or product attribute and how the control

quality process will measure it. A measurement is an actual value. The tolerance defines the allowable variations to the metric. • For example, if the quality objective is to stay within the approved budget by ± 10%, the specific

quality metric is used to measure the cost of every deliverable and determine the percent variance from the approved budget for that deliverable.

– Quality metrics are used in the perform quality assurance and control quality processes. • Some examples of quality metrics include on-time performance, cost control, defect frequency,

failure rate, availability, reliability, and test coverage.

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Perform Quality Assurance : Input (2)

• Work Performance InformationPerformance information from project activities is routinely collected as the project progresses.

•Technical performance measures,

•Project deliverables status,

•Schedule progress, and

•Costs incurred.

• Quality Control MeasurementsQuality control measurements are the results of quality control activities. They are used to analyze and evaluate the quality standards and processes of the performing organization.

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Perform Quality Assurance: Tools & Techniques (1)

• Plan Quality and Perform Quality Control Tools and Techniques– Cost-Benefit Analysis

– Cost of Quality

– Control Charts

– Benchmarking

– Design of Experiments

– Statistical Sampling

– Flowcharting

– Cause and Effect Diagrams

– Histogram

– Run Chart

– Pareto Chart

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n Process Analysisn Process analysis follows the steps

outlined in the process improvement plan to identify needed improvements.

n This analysis also examines problems experienced, constraints experienced, and non-value-added activities identified during process operation.

n Process analysis includes root cause analysis— a specific technique to identify a problem, discover the underlying causes that lead to it, and develop preventive actions

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• Quality AuditsA quality audit is a structured, independent review to determine whether project activities comply with organizational and project policies, processes, and procedures or not.

• The objectives of a quality audit are:– Identify all the good/best practices being implemented,

– Identify all the gaps/shortcomings,

– Share the good practices introduced or implemented in similar projects in the organization and/or industry,

– Proactively offer assistance in a positive manner to improve implementation of processes to help the team raise productivity, and

– Highlight contributions of each audit in the lessons learned repository of the organization.

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• Quality Audits (cont’d)

– The subsequent effort to correct any deficiencies should result in a reduced cost of quality and an increase in sponsor or customer acceptance of the project’s product.

– Quality audits may be scheduled or random and may be conducted by internal or external auditors.

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Perform Quality Assurance - Outputs

• Organizational Process Assets Updates

• Change Requests– Quality improvement includes taking action to increase the effectiveness and/or

efficiency of the policies, processes, and procedures of the performing organization.

• Project Management Plan Updates– Quality management plan,

– Schedule management plan, and

– Cost management plan

• Project Document Updates– Quality audits reports,

– Training plans, and

– Process documentation

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Quality Control

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Perform Quality Control

• Perform Quality Control is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

• Project results include deliverables and project management results, such as cost and schedule performance.

• The project management team should have a working knowledge of statistical quality control, especially sampling and probability, to help evaluate quality control outputs.

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Perform Quality Control (2)

• 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 either conforms or does not conform) and variables sampling (the result is rated on a continuous scale that measures the degree of conformity).

– Tolerances (specified range of acceptable results) and control limits(thresholds, which can indicate whether the process is out of control).

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• Goals of Quality Control– Quality improvement.

– Rework actions to bring defective or nonconforming items into compliance with requirements or specifications.

– Completed checklists which become part of the project's records.

– Process adjustments, which involve immediate corrective or preventive action as a result of quality control measurements.

– A good quality control system will:•Compare actual to standards

•Act when standards are not met

•Plan for improvements

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• Attribute Sampling– Examining one or more attributes in an entire population– Results either conform or they do not

• Variable Sampling– Measures a process variable and charts it to determine conformity– Results are rated on a continuous scale that measures the degree of conformity– Used for creating control charts

• Work Results– The results of the processes are an important input to Quality Control– Planned or expected results versus actual results

• Operational Definitions– Identify project elements with quality concerns– Provide the basic measurement parameters for Quality Control

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Quality Control

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Inputs

•Project management plan

•Quality metrics

•Quality checklists

•Work performance data

•Approved change requests

•Deliverables

•Project documents

•Organizational process assets

•Seven basic quality tools

•Statistical sampling

•Inspection

•Approved change requests review

•Quality control measurements

•Validated changes•Verified deliverables•Work performance

information•Change requests•Project

management plan updates


•Organizational process assets updates


Outputs

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Perform Quality Control : Input (1)

• Project Management Plan

• Quality Metrics

• Quality Checklists

• Deliverables

• Work Performance Measurements, are used to produce project activity metrics to evaluate actual progress as compared to planned progress

– Planned vs. actual technical performance,

– Planned vs. actual schedule performance,

– Planned vs. actual cost performance

• Approved Change Requests, can include modifications such as defect repairs, revised work methods and revised schedule. The timely implementation of approved changes needs to be verified.

• Organizational Process Assets

– Quality standards and policies,

– Standard work guidelines, and

– Issue and defect reporting procedures and communication policies.42

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Perform Quality Control: Tools & Techniques (1)

• Cause and Effect Diagrams

Cause and effect diagrams, also called Ishikawa diagrams or fishbone diagrams, illustrate how various factors might be linked to potential problems or effects.

A possible root cause can be uncovered by continuing to ask “WHY” or “HOW” along one of the lines.

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• Control Charts– The appropriate data is collected and analyzed to indicate the quality status

of project processes and products.

– Control charts illustrate how a process behaves over time and when a process is subject to special cause variation, resulting in an out-of-control condition.

– They graphically answer the question: “Is this process variance within acceptable limits?”

– The pattern of data points on a control chart may reveal random fluctuating values, sudden process jumps, or a gradual trend in increased variation.

– By monitoring the output of a process over time, a control chart can help assess whether the application of process changes resulted in the desired improvements.

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• Flowcharting, is used during Perform Quality Control to determine a failing process steps and identify potential process improvement opportunities.

• Histogram, is a vertical bar chart showing how often a particular variable state occurred.

– Each column represents an attribute or characteristic of a problem/situation.

– The height of each column represents the relative frequency of the characteristic.

– Helps illustrates the most common cause of problems in a process by the number and relative heights of the bars.

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• Pareto Chart, also referred to as a Pareto diagram, is a specific type of histogram, ordered by frequency of occurrence.

– It shows how many defects were generated by type or category of identified cause.

– Rank ordering is used to focus corrective action.

– The project team should address the causes creating the greatest number of defects first.

– Pareto diagrams are conceptually related to Pareto’s Law, which holds that a relatively small number of causes will typically produce a majority of the problems or defects.

– This is commonly referred to as the 80/20 principle, where 80% of the problems are due to 20% of the causes.

– Pareto diagrams can also be used to summarize various types of data for 80/20 analyses.

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Histogram & Pareto Chart

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• Run Chart– Similar to a control chart without displayed limits, 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 and involves 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, and how many remain uncorrected?

• Cost and schedule performance. How many activities per period were completed with significant variances?

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• Scatter Diagram, shows the relationship between two variables.

– Allows 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.

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• Statistical Sampling

– Standard Deviation - the variance which measures deviations about a mean of a set of values. It is the root-mean-square of the deviation and is designated by the Greek letter Sigma.

– Three sigma (3 standard deviations), a statistical term meaning 99.7% of the outcomes are within the control limits, has historically been used as the standard for setting control limits

– Six sigma (6 standard deviations), a statistical term indicating that the near 100% (99.99966%) of the outcomes are within the control limits, is becoming a standard with many companies

– Mean - the mean of a set of numbers is the sum of all the individual values divided by the number of values (commonly referred as the average)

– Median - the value of the middle item of any set of data containing an odd number of items or observations. For an even number of items or observations, the median is found by adding the two middle values and dividing by 2

– Mode - the value of the set of numbers which occurs most frequently

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The Standard Deviation (sigma) is used to find the distribution of values around the Mean (x)

Most of the distribution curves are symmetrical around the Mean (x) and are bell shaped

For symmetrical curves the area under the curve is a function of Standard Deviation

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• Inspection, is the examination of a work product to determine whether it conforms to documented standards.

– The results of an inspection generally include measurements and may 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 may be called reviews, peer reviews, audits, or walkthroughs.

– Inspections are also used to validate defect repairs.

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Perform Quality Control – Outputs

• Quality Control Measurements, are the documented results of quality control

activities in the format specified during quality planning.

• Validated ChangesAny changed or repaired items are inspected and will be either accepted or rejected before notification of decision is provided.

Ø Rejected items may require rework.

• Validated Deliverables– A goal of quality control is to determine the correctness of

deliverables.

– The results of the execution quality control processes are validated deliverables.

– Validated deliverables are an input to Verify Scope for formalized acceptance.

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Perform Quality Control – Outputs

• Project Management Plan Updates– Quality management plan, and

– Process improvement plan.

• Project Document Updates

Project documents that may be updated include, but are not limited to,

•quality standards.

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