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LESSON 35
QUALITY IN PROJECT MANAGEMENT (CONTD.)
BROAD CONTENTS
The Quality Movement
Quality Development Stages
Quality Audit
Deming Philosophy
35.1
THE QUALITY MOVEMENT:
During the past 100 years, the views of quality have changed dramatically. Prior to World War
I, quality was viewed predominantly as inspection, sorting out the good items from the bad.
Emphasis was on problem identification. Following World War I and up to the early 1950s,
emphasis was still on sorting good items from bad.
However, quality control principles were now emerging in the form of:
 Statistical and mathematical techniques
 Sampling tables
 Process control charts
From the early 1950s to the late 1960s, quality control evolved into quality assurance, with its
emphasis on problem avoidance rather than problem detection. Additional quality assurance
principles emerged, such as:
The cost of quality
Zero-defect programs
Reliability engineering
Total quality control
35.2
DEVELOPMENT OF QUALITY STAGES:
This comprises of the following "five level model":
1.
Inspection
2.
Quality Control
3.
Quality Assurance
4.
Quality Management
5.
Total Quality Management
1.
Inspection:
"Activity such as measuring, examining, testing, or gauging one or more characteristics
of an entity and comparing the results with specified requirements in order to establish
whether conformity is achieved for each characteristic" (ISO 8402)
2.
Quality Control:
Quality control is a collective term for activities and techniques, within the process, that
are intended to create specific quality characteristics. Such activities include continually
monitoring processes, identifying and eliminating problem causes, use of statistical
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process control to reduce the variability and to increase the efficiency of processes.
Quality control certifies that the organization's quality objectives are being met.
Quality control is also referred to as the technical aspect of quality management. They
set up the technical processes and procedures that ensure that each step of the project
provides a quality output from design and development through implementation and
maintenance. Each step's output must conform to the overall quality standards and
quality plans, thus ensuring that quality is achieved.
A good quality control system will:
Select what to control
Set standards that provide the basis for decisions regarding possible corrective
action
Establish the measurement methods used
Compare the actual results to the quality standards
Act to bring nonconforming processes and material back to the standard based on
the information collected
Monitor and calibrate measuring devices
Include detailed documentation for all processes
3.
Quality Assurance:
Quality assurance is the collective term for the formal activities and managerial
processes that are planned and undertaken in an attempt to ensure that products and
services that are delivered are at the required quality level. Quality assurance also
includes efforts external to these processes that provide information for improving the
internal processes. It is the quality assurance function that attempts to ensure that the
project scope, cost, and time functions are fully integrated.
The Project Management Institute Guide to the Body of Knowledge (PMBOK) refers to
quality assurance as the management section of quality management. This is the area
where the project manager can have the greatest impact on the quality of his project.
The project manager needs to establish the administrative processes and procedures
necessary to ensure and, often, prove that the scope statement conforms to the actual
requirements of the customer. The project manager must work with his team to
determine which processes they will use to ensure that all stakeholders have confidence
that the quality activities will be properly performed. All relevant legal and regulatory
requirements must also be met.
A good quality assurance system will:
 Identify objectives and standards.
 Be multifunctional and prevention oriented.
 Plan for collection and use of data in a cycle of continuous improvement.
 Plan for the establishment and maintenance of performance measures.
 Include quality audits.
4.
Quality Management:
During the past twenty years, there has been a revolution toward improved quality. The
improvements have occurred not only in product quality, but also in quality leadership
and quality project management. Unfortunately, it takes an economic disaster or a
recession to get management to recognize the need for improved quality. Prior to the
recession of 1979­1982, Ford, General Motors, and Chrysler viewed each other as the
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competition rather than the Japanese. Prior to the recession of 1989­1994, high-tech
engineering companies never fully recognized the need for shortening product
development time and the relationship between project management, total quality
management, and concurrent engineering. The push for higher levels of quality appears
to be customer driven. Customers are now demanding:
Higher performance requirements
Faster product development
Higher technology levels
Materials and processes pushed to the limit
Lower contractor profit margins
Fewer defects/rejects
One of the critical factors that can affect quality is market expectations. The variables
that affect market expectations include:
Salability: the balance between quality and cost
Produceability: the ability to produce the product with available technology and
workers, and at an acceptable cost
Social acceptability: the degree of conflict between the product or process and the
values of society (i.e., safety, environment)
Operability: the degree to which a product can be operated safely
Availability: the probability that the product, when used under given conditions,
will perform satisfactorily when called upon
Reliability: the probability of the product performing without failure under given
conditions and for a set period of time
Maintainability: the ability of the product to be retained in or restored to a
performance level when prescribed maintenance is performed
Customer demands are now being handled using total quality management (TQM).
Total quality management is an ever-improving system for integrating various
organizational elements into the design, development, and manufacturing efforts,
providing cost-effective products or services that are fully acceptable to the ultimate
customer. Externally, TQM is customer oriented and provides for more meaningful
customer satisfaction. Internally, TQM reduces production line bottlenecks and
operating costs, thus enhancing product quality while improving organizational morale.
5.
Total Quality Management (TQM):
For this, we first explain what "total quality" is. Total Quality means:
Quality of work
Quality of Service
Quality of information
Quality Process
Quality of Organization
Quality of People
Quality of Company
Quality of Objectives
Mature organizations today readily admit that they cannot accurately define quality.
The reason for this is because quality is defined by the customer. The Kodak definition
of quality is those products and services that are perceived to meet or exceed the needs
and expectations of the customer at a cost that represents outstanding value.
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The ISO 9000 definition is "the totality of feature and characteristics of a product or
service that bears on its ability to satisfy stated or implied needs." Terms such as fitness
for use, customer satisfaction, and zero defects are goals rather than definitions. Most
organizations today view quality more as a process than a product. To be more specific,
it is a continuously improving process where lessons learned are used to enhance future
products and services in order to:
Retain existing customers
Win back lost customers
Win new customers
Therefore, companies today are developing quality improvement processes. Figure 35.1
shows the five quality principles that support Kodak's quality policy. Figure 35.2 shows
a more detailed quality improvement process.
Total Quality Management (TQM) is a management strategy aimed at embedding
awareness of quality in all organizational processes. Total Quality Management (TQM)
has been widely used in manufacturing, education, government, and service industries,
as well as NASA space and science programs.
Total Quality provides an umbrella under which everyone in the organization can strive
and create customer satisfaction at continually lower real costs.
Total Quality Management (TQM) is the management of total quality. We know that
management consists of planning, organizing, directing, control, and assurance. Then,
one has to define "total quality". Total quality is called total because it consists of the
following three qualities:
1. Quality of return to satisfy the needs of the shareholders
2. Quality of products and services to satisfy some specific needs of the consumer
(end user)
3. Quality of life - at work and outside work - to satisfy the needs of the people in the
organization.
This is achieved with the help of upstream and downstream partners of the enterprise.
To this, we have to add the corporate citizenship, that is the social, technological,
economical, political, and ecological (STEPE) responsibility of the enterprise
concerning its internal (its people) and external (upstream and downstream) partners,
and community. Therefore, total quality management goes well beyond satisfying the
customer, or merely offering quality products (goods and/or services). Note that we use
the term consumer or end customer. The reason is that in a Supply Chain Management
approach, we do not have to satisfy our customers' needs but the needs of our
customers' customers' all the way to the end customer, the consumer of a product and/or
service.
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Figure 35.1: Kodak's Five Quality Principles
Figure 35.2: The Quality Improvement Process
These two figures (35.1 and 35.2) seem to illustrate that organizations are placing more emphasis on the
quality process than on the quality product and, therefore, are actively pursuing quality improvements
through a continuous cycle.
35.3
QUALITY AUDIT:
A quality audit is an independent evaluation performed by qualified personnel that ensures that
the project is conforming to the project's quality requirements and is following the established
quality procedures and policies.
A good quality audit will ensure that:
The planned quality for the project will be met.
The products are safe and fit for use.
All pertinent laws and regulations are followed.
Data collection and distribution systems are accurate and adequate.
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Proper corrective action is taken when required.
Improvement opportunities are identified.
Figure 35.3: The Result of Total Quality
35.4
DEMING'S PHILOSOPHY:
Deming postulated that 85 percent of all quality problems required management to take the
initiative and change the process. Only 15 percent of the quality problems could be controlled
by the workers on the floor. As an example, the workers on the floor were not at fault because
of the poor quality of raw materials that resulted from management's decision to seek out the
lowest cost suppliers. Management had to change the purchasing policies and procedures.
Management had to develop long-term relationships with vendors.
Dr. Deming's Dreadful Diseases:
1.
Looking elsewhere for examples, or concluding that "our problems are different.
2.
"Creative accounting" rather than "commitment"
3.
Purchasing to an "acceptable level of quality.
4.
Management's failure to delegate responsibility.
5.
That employees cause all the problems.
6.
Quality can be "assured by inspection".
7.
False starts: no organization-wide commitment.
Although many experts have contributed to the success of the quality movement; the three most
influential contributors in this country and internationally are W. Edwards Deming, Joseph M.
Juran, and Phillip B. Crosby. Dr. Deming pioneered the use of statistics and sampling methods
from 1927 to 1940 at the U.S. Department of agriculture. Dr. Deming applied Dr. Shewhart's
Plan/Do/Check/Act cycle to clerical tasks. Figure 35.4 shows the Deming Cycle for
Improvement.
Deming contended that workers simply cannot do their best. They had to be shown what
constitutes acceptable quality and that continuous improvement is not only possible, but
necessary. For this to be accomplished, workers had to be trained in the use of statistical process
control charts. Realizing that even training required management's approval, Deming's lectures
became more and more focused toward management and what they must do.
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Figure 35.4: The Deming Cycle for Improvement
Table 35.1
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Table of Contents:
  1. INTRODUCTION TO PROJECT MANAGEMENT:Broad Contents, Functions of Management
  2. CONCEPTS, DEFINITIONS AND NATURE OF PROJECTS:Why Projects are initiated?, Project Participants
  3. CONCEPTS OF PROJECT MANAGEMENT:THE PROJECT MANAGEMENT SYSTEM, Managerial Skills
  4. PROJECT MANAGEMENT METHODOLOGIES AND ORGANIZATIONAL STRUCTURES:Systems, Programs, and Projects
  5. PROJECT LIFE CYCLES:Conceptual Phase, Implementation Phase, Engineering Project
  6. THE PROJECT MANAGER:Team Building Skills, Conflict Resolution Skills, Organizing
  7. THE PROJECT MANAGER (CONTD.):Project Champions, Project Authority Breakdown
  8. PROJECT CONCEPTION AND PROJECT FEASIBILITY:Feasibility Analysis
  9. PROJECT FEASIBILITY (CONTD.):Scope of Feasibility Analysis, Project Impacts
  10. PROJECT FEASIBILITY (CONTD.):Operations and Production, Sales and Marketing
  11. PROJECT SELECTION:Modeling, The Operating Necessity, The Competitive Necessity
  12. PROJECT SELECTION (CONTD.):Payback Period, Internal Rate of Return (IRR)
  13. PROJECT PROPOSAL:Preparation for Future Proposal, Proposal Effort
  14. PROJECT PROPOSAL (CONTD.):Background on the Opportunity, Costs, Resources Required
  15. PROJECT PLANNING:Planning of Execution, Operations, Installation and Use
  16. PROJECT PLANNING (CONTD.):Outside Clients, Quality Control Planning
  17. PROJECT PLANNING (CONTD.):Elements of a Project Plan, Potential Problems
  18. PROJECT PLANNING (CONTD.):Sorting Out Project, Project Mission, Categories of Planning
  19. PROJECT PLANNING (CONTD.):Identifying Strategic Project Variables, Competitive Resources
  20. PROJECT PLANNING (CONTD.):Responsibilities of Key Players, Line manager will define
  21. PROJECT PLANNING (CONTD.):The Statement of Work (Sow)
  22. WORK BREAKDOWN STRUCTURE:Characteristics of Work Package
  23. WORK BREAKDOWN STRUCTURE:Why Do Plans Fail?
  24. SCHEDULES AND CHARTS:Master Production Scheduling, Program Plan
  25. TOTAL PROJECT PLANNING:Management Control, Project Fast-Tracking
  26. PROJECT SCOPE MANAGEMENT:Why is Scope Important?, Scope Management Plan
  27. PROJECT SCOPE MANAGEMENT:Project Scope Definition, Scope Change Control
  28. NETWORK SCHEDULING TECHNIQUES:Historical Evolution of Networks, Dummy Activities
  29. NETWORK SCHEDULING TECHNIQUES:Slack Time Calculation, Network Re-planning
  30. NETWORK SCHEDULING TECHNIQUES:Total PERT/CPM Planning, PERT/CPM Problem Areas
  31. PRICING AND ESTIMATION:GLOBAL PRICING STRATEGIES, TYPES OF ESTIMATES
  32. PRICING AND ESTIMATION (CONTD.):LABOR DISTRIBUTIONS, OVERHEAD RATES
  33. PRICING AND ESTIMATION (CONTD.):MATERIALS/SUPPORT COSTS, PRICING OUT THE WORK
  34. QUALITY IN PROJECT MANAGEMENT:Value-Based Perspective, Customer-Driven Quality
  35. QUALITY IN PROJECT MANAGEMENT (CONTD.):Total Quality Management
  36. PRINCIPLES OF TOTAL QUALITY:EMPOWERMENT, COST OF QUALITY
  37. CUSTOMER FOCUSED PROJECT MANAGEMENT:Threshold Attributes
  38. QUALITY IMPROVEMENT TOOLS:Data Tables, Identify the problem, Random method
  39. PROJECT EFFECTIVENESS THROUGH ENHANCED PRODUCTIVITY:Messages of Productivity, Productivity Improvement
  40. COST MANAGEMENT AND CONTROL IN PROJECTS:Project benefits, Understanding Control
  41. COST MANAGEMENT AND CONTROL IN PROJECTS:Variance, Depreciation
  42. PROJECT MANAGEMENT THROUGH LEADERSHIP:The Tasks of Leadership, The Job of a Leader
  43. COMMUNICATION IN THE PROJECT MANAGEMENT:Cost of Correspondence, CHANNEL
  44. PROJECT RISK MANAGEMENT:Components of Risk, Categories of Risk, Risk Planning
  45. PROJECT PROCUREMENT, CONTRACT MANAGEMENT, AND ETHICS IN PROJECT MANAGEMENT:Procurement Cycles