PROJECT PLANNING

AND BUDGETING
PROJ6002

Module 2
Subject Structure
• Module 1: Project Scope Management Planning
• Module 2: Project Quality Management Planning
• Module 3: Project Resource Management Planning 2

• Module 4: Project Schedule Management Planning

• Module 5: Project Cost Management Planning
• Module 6: Global Challenges and the Human Perspective

Roughly two weeks per module

 Assessment Structure
Assessment Task Task Type Weighting Word Count Due

Discussion activity using the given case Initial discussion post – Week 3
Assignment 1 10% 750 words
study (Individual) Response post - Week 4

3
Project Scope and Quality Management
Assignment 2 35% 2500 words Week 6
Plans (Group of 2 Students)

Project Schedule and Cost Management

Assignment 3 15% 1000 words Week 9
memo (Individual)

Project Schedule and Cost Management

Assignment 4 40% 1500 words Week 11
Plans (Individual)

Detailed instructions in Assessment briefs

Recap
Module 1
• Project planning processes and components
• Collect requirements
4
• Define scopes
• Create WBS
Module 2.1

Project Quality management and

Processes
Project Quality Management
Project Quality Management includes the processes and
activities of the performing organisation that determine
quality policies, objectives, and responsibilities so that 6

the project will satisfy the needs for which it was

undertaken.
Project Quality Management
Project Quality Management uses policies and procedures to
implement the organisation’s quality management system. It
supports continuous process improvement activities as
7
undertaken on behalf of the performing organisation.

Project Quality Management works to ensure that the project

requirements, including product requirements, are met and
validated.
Project Quality
Management
Process
Inter-relations
8
TQM =
Everyone involved &
Every movement counts

High

Poor Quality Gem

Grade

Rubbish Good Quality

Low High
Performance
 Performance

Consistency Aesthetics

Serviceability Product Special

Features
Quality
Perceived Conformance
Benefits

Durability Reliability
 Convenience

Expectations Reliability

Perceived
Consistency Responsibility
Expected Service
Quality
Communication
Tangibles Time
Conformance

Service Design
Courtesy Assurance
Market Research
Project Quality Management
is all of the processes and activities needed to determine and achieve
project quality. Processes generally include:

 Quality planning: identifying which quality standards are relevant 12

to the project and how to satisfy them

 Quality assurance: providing confidence that quality
requirements will be fulfilled (periodically evaluating overall project
performance)
 Quality control: fulfilling quality requirements (monitoring specific
project results)
Plan Quality Management
QM / QA / QC / QI

Embedded Juran’s Trilogy 13

Quality Management Process:

• Quality Planning
• Quality Control
• Quality Improvement
Source:
http://www.juran.com
Quality Metrics
• Describes a project or product attribute
and how the control quality process
will measure it.
14

• Quality metrics are used to directly

translate customer needs into
acceptable performance measures in
both products and processes.
Quality Metrics
• A measurement is an actual value.
• The tolerance defines the allowable variations to the metric.
• Ensure direct relationship between metrics and the projects
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activities.
Quality Metrics
• Project metrics are intended to provide clear
and tangible project status information about
project schedules and costs.
16

• Metrics are used to identify areas for project

process improvement.

• Metrics should demonstrate the results of

process improvement efforts.
Quality Metrics
• Remember, measuring for measurement's sake has little or no
connection to quality management goals
• Eg: The measurement would be the amount or reason for any 17
deviation from the specifications.
• Customer satisfaction;
• Success / Failure rate;
• Timing, Frequency, Percentage
• Defect…
Quality Assurance
• Essential for Quality Management Plan
• Essential for Process Improvement Plan
18
• Based on Quality Metrics
• Quality Control Documents
Quality Assurance
• Is part of quality management focused on providing confidence
that quality requirements will be fulfilled; How a process is
performed, or how a product or service is produced or provided. 19

• Refers to all the planned and systematic activities implemented

within the quality system that can be demonstrated to provide
confidence that a product or service will fulfill requirements for
quality
• Is PROACTIVE
 Select standard or
specification

Assemble activities Define data

into a quality collection and result
assurance plan comparison to plan

Assign Develop and apply

Developing responsibility metrics

Assurance Define and provide

resources
Activities
 Quality Assurance – Example
WBS Responsible
Requirement Specification Assurance Activity Schedule
Ref Entity

Work from specific and when it will be

what to be done who will do it
ID customer measurable done 21

PM team to
provide 2 status 1. Project data collection and 1. Final week 1.& 2. Senior
Detailed
reports every six consolidation; each month; project offer;
Status report
2.2.3 months, with WIP, 2. Status report compiled 2. & 3. Final 3. Project
provided by
health check, risk 3. Report reviewed and week each Manager
PM team
analysis, and disseminated quarter
summary
Quality Control
Quality control is more the inspection
aspect of quality management.
It is a process through which a business 22

seeks to ensure that product quality is

maintained or improved and
manufacturing errors are reduced or
eliminated.
It is REACTIVE
Quality Control cont.
• Inspection is the process of measuring, examining, and testing to gauge
one or more characteristics of a product or service and the comparison
of these with specified requirements to determine conformity. 23

• Products, processes, and various other results can be inspected to

make sure that the object coming off a production line, or the service
being provided, is correct and meets specifications.
Quality Control cont.
Quality Checklist

• A structured, component-specific used to verify

24
that a set of required steps has been performed.

• Quality checklists should incorporate the

acceptance criteria included in the scope
baseline.
Quality Control cont.
Quality Audit

A structured, independent process to determine if 25

project activities comply with organizational and

project policies, processes, and procedures.
The audits may be scheduled or random and may
be conducted by internal or external auditors.
 QA vs. QC
Quality Assurance and Quality Control are two aspects of quality
management. While some quality assurance and quality control activities
are interrelated, the two are defined differently.
Quality System
• Typically, QA activities and responsibilities cover
Quality Plan
virtually all of the quality system in one fashion or
another, while QC is a subset of the QA activities. Quality
• Also, elements in the quality system might not be Assurance
specifically covered by QA/QC activities and Quality
responsibilities but may involve QA and QC. Control

Figure 1: adapted ISO 9000 definitions from ISO 9000:2015: Quality management systems - Fundamentals and Vocabulary.
Assessment 1.1
Discussion post: Due by 12th March
500 words initial post to address the questions from Blackboard:
“How may scope creep affect project deliverables' quality, and how should a project 27

manager communicate and validate those variances to project stakeholders?

Illustrate some hypothetical examples from the given case study to support your
discussion.”
Your discussion should include an example of how this might happen, and its impact, on
the assigned case study. You should cite your sources and include your references at the
end of your post
Presentation title goes here

Module 2.2

Other Project Quality

Management Tools
Deming’s Quality Management
Deming’s quality management is based on four principal methods:

• The Plan-Do-Check-Act (PDCA) Cycle

29

• Statistical process control

• The 14 principles of transformation
• The seven-point action plan
PDCA Cycle
• This cycle is iterative. Once it has been
completed, it recommences without
ceasing.
30
• The approach is seen as re-emphasising
the responsibility of management to be
actively involved in the organisation’s
quality program.
• AKA Plan-Do-Study-Act (PDSA)
PDCA Cycle cont.
1. Plan – Recognise an opportunity and plan changes;
2. Do – Test the change by carrying out a small-scale study;
3. Check – Review the test, analyse results, and identify learnings; 31

4. Act – Take action based on what you learned in the study step.
If the change did not work, go through the cycle again with a different
plan. If successful, incorporate the learning from the test into wider
changes. Use lessons learned to plan new improvements, beginning the
cycle again.
PDCA Cycle cont.
• As a model for continuous improvement
• When developing a new or improved design of
process, product, or service
32
• When defining a repetitive work process
• When planning data collection and analysis in
order to verify and prioritise problems or root
causes
33
34
Ishikawa Quality Circle
• Quality circles are small groups of employees
who meet frequently to resolve quality problems
and provide recommendations to management. 35

• The group identifies problems, analyse data,

recommends solutions, and carries out
management-approved changes.
Key Elements of the Circle
• They are a team effort.
• They are completely voluntary.
• Employees are trained in group dynamics, motivation, 36

communications, and problem solving.

• Members rely upon each other for help.
• Management support is achieved but as needed.
• Creativity is encouraged.
• Management listens to recommendations.
 Six Sigma
• Six sigma is a process quality technique that focuses on
reducing variation in the process and preventing deficiencies
in the product.
37
• Six sigma is a Greek letter, σ, standing for standard deviation.
It describes how much variation exists in a set of data, a
group of items, or a process. It is a measurement of
“goodness’ using a universal measurement scale. It
measures how many times a customer’s requirements were
not met (a defect) per million opportunities.
Six Sigma Roadmap

38

Six Sigma is not for every

organisation or every project,
it takes extra time and resources!
 Cause &
Histogram Effect
Diagram Check Sheet

Stratification Control Chart

Quality
Classic
Tools
Scatter
Diagram Flowchart

Run Chart Pie Chart Pareto Chart

 Activity
Network
Diagram
Tree Affinity
Diagram Diagram

Management
Process and Planning
Decision
Program
Tools Interrelation
ship Digraph

Prioritisation Matrix
Matrix Diagram
 Benchmarking
Process
Mapping/ Cause &
Flowcharting Effect
Diagram

Process
5W2H Analysis Cost of
Quality
Tools

Critical to
5 Whys Failure Quality
Analysis Mode and
Effects
Analysis
 Root-Cause
Analysis

Statistical
Process PDCA
Control Cycle

Process
Improvement
Tools
Failure
Mode and
SIPOC
Effects
Analysis
Analysis
(FMEA)

Six Sigma-
DMAIC
 Brain
storming
Business
40 Principles Model
Canvas

Innovation
and Creative
TRIZ Theory Tools
of Inventive
5W 2H
Problem
Solving

Six Sigma- Mind

DMAIC Mapping
 Waste
Reduction Concurrent
Engineering
Cellular
Visual Design
Management

5S

Value
Stream LEAN Tools
Mapping
Just in
Time

Single
Minute Kanban
Exchange
of Die
Mistake
Outsourcing Proofing
Kaizen
Assessment 1.2
Discussion post: Due by 19th March
250 words post to respond (reply) to others Discussion post:
“How may scope creep affect project deliverables' quality, and how should a project manager 46

communicate and validate those variances to project stakeholders?

Illustrate some hypothetical examples from the given case study to support your discussion.”
Your feedback should include positive solutions to the initial post and add to the other student’s post
to support and allow for further learning and understanding. Your feedback is not an assessment of
the initial post, but rather an expansion of the discussion. You should cite your sources and include
your references at the end of your feedback.
Next Module
Project Resources Management (Planning)

47