Project management

Q1) a)Explain the concept of project quality and importance of TQM in projects.

Ans. What Is Project Quality Management?

Project quality management encompasses the processes and
activities that are used to figure out and achieve the quality of
the deliverables of a project. However, quality can be an elusive
word.

What is quality? While we could go on forever about the “true”

meaning of quality and use the Socratic method to dialogue on its
many possible meanings, for project management the answer is
more defined.

Project Quality Management Concepts

Project managers oversee implementing a project quality

management plan. The main idea, again, to deliver a product or
service to the specifications of the customer or stakeholder.
Doing so requires knowing quality management concepts.

Customer Satisfaction

Without customer satisfaction there can be no quality. Even if a

deliverable meets all aspects of what the customer or stakeholder
has required but is done so where the process itself was not to
satisfactory, then there’s a problem.

Of course, the deliverable must meet with agreed upon

requirements or else the project has failed because the product of
the project and the management of the project didn’t meet with
the expectations of the customer or stakeholder.That’s why
implementing quality control means managing both process and
people. Meet with your customer or stakeholder regularly to keep
them abreast of the project’s progress. Get their feedback and
make sure that you’re being fully transparent with them to avoid
issues arising later.

Prevention Over Inspection

Quality doesn’t come free. The Cost of Quality (COQ) is the

money spent dealing with issues during the project, and then
after the project, to fix any failures. These are broken up into two
categories: cost of conformance and cost of nonconformance.

The cost of conformance can be considered a preventive cost.

These costs are primarily related to training, the documentation
process, equipment needed, and the time required to get the
quality done right. Other costs related to this can include testing,
destructive testing loss and inspections.

The cost of nonconformance refers to internal failure costs. These

consist of having to rework something or even scrap it entirely.
Further costs can come from liabilities, warranty work and lost
business.

Continuous Improvement

This concept of quality project management can be found in Six

Sigma and Total Quality Management (TQM) and is featured
dominantly in the Prevention Over Inspection concept.

This concept is, as explained in its title, an ongoing effort to

address improvements of the deliverables over time. Whether
through small, incremental changes or through large ones, the
opportunity to identify and address change is always present.

How to Implement Quality Project

Management

Once you have an idea of the different concepts, the next step is
to implement a project quality management plan. To do so, follow
these three steps.

Plan Quality
Quality Assurance
Quality Control

Total Quality Management (TQM) is a popular customer-based methodology

of quality control and improvement derived from Japanese industry since the
1950’s. It offers a unique approach for managing quality of a product or
process while looking to customers as the major source of quality definition.
In other words, TQM principles are based on customer requirements and
standards to establish a continuous and dynamic process for product
improvement. The methodology lets create an effective working environment
where every person strives to consistently improve the product or process.
Because TQM is a customer-oriented methodology it requires every project
team member to be completely involved in the improvement process. Every
employee should focus on improvements while trying to enhance their
personal productivity.

Improvement Sequence
The improvement method of Total Quality Management requires using an
iterative four-step management process for planning and monitoring quality
of a product/service. This process is known as PDCA (Plan–Do–Check–Act). It
creates an improvement sequence to be used within the methodology.
 Plan. First you must determine the problem, then identify possible
reasons for that problem, and finally evaluate possible alternative
problems and their reasons thought cause/effect analysis. Output: you
 develop a plan describing your problem, reasons, effect, and course of
action for addressing the problem.
 Do. Now you need to implement your plan. You must involve a team in the
implementation and start the improvement process.
 Check. During and after the implementation you must gather information
on the observed effects of the problem. Your goal here is to find out what
improvement solutions were successful.
 Action. At the final step you need to ensure that the improvement process
has been implemented so the problem is successfully solved and the
product quality is improved.
In combination with TQM principles, the PDCA improvement
sequence significantly increases the likelihood of quality improvement
success because it allows avoiding common management mistakes. The
project manager gets a set of tools for planning, monitoring and solving
potential issues.

TQM Implementation Steps

The method of Total Quality Management in combination with project
management ideas can be carried out in 10 basic steps, which are listed
below.
1. Define the problem. First, you must define the problem to be addressed by
your TQM-driven project. Cause-effect analysis and statistical data can be
used for problem definition.
2. Develop new strategic thinking. Your project team can use brainstorming
and brain-writing as effective tools for developing solutions to the defined
problem.
3. Know the customer. TQM focuses on customers and their expectations so
you must research needs and requirements of your customers. Conducting
a customer survey, gathering data, and determining who your customers
are will be the primary goals at this step.
4. Determine quality requirements. Results of your customer survey will
give you a description of customer needs and expectations. This
information will be helpful for you to determine quality standards and
requirements for your new TQM-based project.
5. Plan for contingency. As you have a list of quality requirements based on
your customers’ needs now you need to think about potential threats and
uncertainties that surround your project and may negatively affect quality
levels. You must plan for contingency and develop a risk response strategy
to managing risks and eliminating their negative effect.
 6. Reduce waste. The TQM methodology requires you to run the project with
minimized waste of resources. If you meet this requirement you reduce
sources of waste and improve quality of your product/process in a cost-
effective way.
7. Develop a continuous improvement strategy. There should a strategy that
ensures a continuous improvement process with multiple iterations and
“buffers” (safety margins). You need to develop such a strategy or
otherwise there’s no sense to start the TQM-based project because there’s
n solid framework for managing and maintaining the improvement
process continuously.
8. Reduce variations. Total Quality Management offers a set of tools to
reduce variations in quality of your product. You can use these tools to
optimize use of project resources and minimize the likelihood of quality
deficiencies and variations.
9. Balance the approach. Your goal here is to make sure that the
implementation process runs smoothly so there’s no lack of resources for
every task or procedure of the process. You can reach this goal through
continuous monitoring and tracking of your project.
10.Apply the improvement process. The final step of TQM implementation is
to use the improvement process in every facet of your project to start
improving quality of your product

Ques2.c) discuss the different types of cost estimating in the life cycle of project

Ans. The main purpose of estimation is to give a reasonably accurate

idea of the cost. The estimated accurate cost of the project is necessary to
give the owner a reasonably accurate idea of the cost to help him decide
whether the works have sufficient finance or need to arrange more
money. How many projects will cost to him and what are the returns from it
after completion of the project.

In the case of government work or a project, the estimate is required to get

financial sanction. Sometimes, small nonpriority work are given on a lump-
sum basis; in which case the Estimator must be in a position to know exactly
how much expenditure he is going to incur on them

1. Materials Estimating:

An estimate of material gives an idea about the type of material and their
quantity is to be required for completion of the project. It will help in the
advance arrangement of that material and make an order.
2. Estimating Labor:

Labor estimates provide the quality and quantity of manpower required during
project work. Sufficient and skilled labor is essential to complete the project in
given time limits.

3. Estimating Plant:

An estimate will help in determining the different types of equipment and

plant required for completion of the project.

4. Estimating Time:

The estimation of the quantity of item work helps in deciding the time of
completion of the project. Also, the accurate estimation of project duration is
important. It is a fact that as our time of completion increases the cost of the
project also increase with that, so making an accurate estimate of project
duration is essential.

Characteristics of a good estimate:

 Must be supported by the assumptions made by the estimators.

 Must be derived from more than one estimating method.
 Must always be presented as a range.
Ensure that the estimators are clear about the product or deliverable. They are clear
about the process that will be used to build the product or deliverable and also clear
about the assumed resource profile that’s skill-sets, knowledge and experience and the
risks associated with the product or deliverable. There is a difference between the effort
estimate and duration estimate, try to understand this difference for better cost
estimation. Give estimators time to produce good estimates and don’t commit any
timelines before the complete estimation.

In an IT department they want estimates very fast and with higher accuracy, which is
indeed a challenge. Estimates should be created early and often. Top down estimates
start when you have a basic understanding of the project. They are usually based on
similarity to previous projects, and this is best done with actual historical data.. At times
a simple database can significantly improve the accuracy of early estimates. Once you
have these estimates you should revisit them as you are creating your WBS (Work
breakdown Structure). Here you are transitioning from top down to bottoms up.

Finally, as you wrap up planning you can give your most accurate bottoms up estimate.
Of course, accuracy depends on planning appropriately. Schedule planning and
estimates are meaningless if you quickly create a schedule to provide dates to your
management, without analyzing how to address risk and other quality related issues.
Today there are many applications containing a lot of useful information for project
managers related to cost. Some use a three point estimate based on those who will be
doing the work with adjustments, which is appropriate basis past experience. There are
periodic reviews that accommodate changes and other impacts. Bottom-up estimate
(supported with rate analysis) is a better choice if the components of work are known.
Sometimes it is combined with Three-point estimate too. But bottom up cost accounting
with committed firm price quotes and historic labor data is most accurate. Sometimes
given the time and information available you have to be able to take a similar historic
project and add some factor to it, to get a ballpark figure. This is the reason why
documentation and proper project closure and lessons learned is so important.

It is difficult to get the Actuals when you are in the planning phase of the project. So it is
better to get the estimates from the people who are actually going to perform the work
and look at the historic data to come up with the best estimates.

TYPES OF COST ESTIMATES IN PROJECT MANAGEMENT

1. Revised Cost Estimate:

The revised estimate is prepared when the original sanctioned cost of the
project is exceeded by 5% or more. It detailed estimate but improper
estimating or underestimated cost of the project, it needs to be revised.

The reason behind preparing revised estimate may sudden increase in the
cost of materials, cost of transportation, etc. the major reason behind the
preparation of this estimate should be mentioned on the last page of the
revised estimate.
2. Supplementary Cost Estimate:

The supplementary cost estimate is a supplement to a detailed estimate and it

is prepared freshly when there is a requirement of additional works during the
progress of original work. After approval of the supplementary estimate, the
total estimated cost should include detailed estimate cost as well as the cost
of supplementary work for which sanction is required.

3. Annual Repair Cost Estimate:

The annual repair cost estimate is known as annual maintenance estimate

which is prepared to know the costs of maintenance of building which will
keep the structure in a safe condition. It includes the cost of whitewashing,
painting, minor repairs, etc. are considered while preparing annual repair
estimate for a building.