Session 07 1187 2020

OPMT 1187 Y
Project Quality
Copyright BCIT School of Business 2020
Session # 7 Agenda
• Defining Quality
• Quality Assurance vs. Quality Control
• Quality Management in Projects
• Costs of Quality
Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Learning Outcomes
By the end of this session students will be able to
• Understand the difference between Quality Assurance and Quality

control
• Ability to differentiate between various quality tools and when to use

them
• Define quality in terms of the project customer
• Identify quality considerations in each project knowledge area

performance

Defining Quality
“The sum of features and characteristics of a product or service that bear

on its ability to satisfy customer needs (stated or implied)” ISO 9000
“The degree to which a set of inherent characteristics fulfills

requirements.” PMBOK Definition
Discuss: What are the quality characteristics of a ball-point pen or white-

board marker?

Quality Trends & Emerging Practices
Customer Satisfaction – Understand, define, and manage requirements across

the project life cycle
Management Responsibility – Qualified capable resources are acquired and

sustainable capacity of work is maintained
Continuous Improvement:
o Plan-Do-Check-Act (PDCA) Cycle

o Six Sigma

Quality
Focus is on the Customer
To provide quality we must know exactly what the customer wants: “Voice of
the Customer”
Think back to Session 01 – Understanding and Approval of Customer

Requirements of project deliverables is a MUST before project planning &
execution
Project Quality and Risk Management – BCIT Course OPMT 2510

Quality Control
The current state of quality on the project. A snapshot of existing situation
Inspection to standards, testing and validation, looking for expected defects.

Fixing identified defects, but not fixing the system (root cause) that caused the
defects to occur
By the time we detect a defect it is too late: damage has been done (impacts
time, cost, customer satisfaction)
We need to rework or repair the discovered defects
Does NOT add value to the Customer

Quality Assurance
The desired state of quality, a proactive approach
Based on mistake-proofing, fail-safing, training - a total system-wide

approach to quality. Prevent defects from ever occurring.
Directly adds value to Customers
Management must actively support and provide resources to these efforts
Discuss examples of quality assurance features in your car

Costs of Quality:
Internal Failure Costs

Costs incurred to fix problems detected before the product or service is
delivered to the customer
External Failure Costs

Costs incurred to fix problems detected after delivery to the customer
Appraisal Costs
Inspection and replace/repair costs
Prevention Costs
Training, planning, process control and quality improvement costs to
prevent defects from occurring

Costs of Quality – Internal Failure
Costs incurred to fix problems detected before the product or service is
delivered to the customer.
• Inspection
• Audit/testing
• Scrap & Rework (Redo/replace)
• Retesting or inspecting
Discuss: should we tell customer about an internal failure we have corrected?

Costs of Quality – External Failure
All costs incurred to fix problems detected after delivery to the customer
• Upset or delayed customer

• Loss of goodwill (reputation)
• Possible loss of future business
• Costs associated with personnel travelling to customer site to fix
problem
• Customer compensation costs
Discuss: product recall costs for defective cars

Costs of Quality - Appraisal
All inspection costs
• Quality Department: personnel and testing equipment

• Inspection activities
• Record keeping; drawings, samples and sampling
• Adding inspections into project schedule lengthens total project timeline
and increases costs

Costs of Quality - Prevention
All training, planning, process control and quality improvement costs to

prevent defects from occurring
• Training
• Concurrent design
• Collaborative planning
• Mistake-proofing
• Ensure same consistent information carried through all phases of the
project
• Voice of the customer processes; QFD

Total Quality Management (TQM)
Continuous Improvement: make never-ending improvements to critical

processes to eliminate future defects – the BEST solution
Employee empowerment: Giving workers responsibility (and

accountability)
Training – teamwork, quality, problem solving

Quality at the Source: making each project team-member responsible for
the quality of their work
Fail-safing: incorporating design elements that prevent incorrect processes

Quality Tools:
Check Sheet: groups defects by category. Identifies areas to focus upon

first
Cause & Effect Diagram: “fish bone” Shows on one page all different
areas to investigate for source of quality problem
Histograms: Bar chart of defects per category. Check highest occurrence

first
Scatter diagram: Shows relationship between two variables. Investigate

where pattern is not consistent

Check Sheet Example
Type of defect
Day Time Bent Cracked Missing Missing Other
Paint Screws
Monday 7-8am 5 4 3 12
Monday 8-9am 3 2 5
Monday 9-10am 1 3 2 6
Monday 11am- 2 3 1 2 8
noon wrong
colour
Monday 1-2pm 2 1 1 4
Monday 2-3pm 7 1 8
Total 8 19 4 10 2 43

Cause & Effect (Fish-Bone Diagram)
Exercise: Create a fishbone diagram for “Bad Coffee”

Scatter Diagram
Show relationship (if any) between two different things
Identify and investigate outliers from the pattern
Real Experiences. Real Results.

Histogram
Investigate First
Defects
30
25
20
15
10
0
Cracked Bent Missing Screws Wrong Colour Missing Paint

Tolerances & Deviations
Allowable deviations from desired mean
Example. Part length: 25mm+/- 3mm means:
25 is the optimal desired

22 is the smallest we will allow
28 is the largest we will allow
Any part whose measurement is higher or lower than these numbers are
considered defective
The tighter the tolerance – the more difficult and costly it will be to meet
that tolerance. Allow as great a tolerance without impacting product
performance or appearance

If all inspected parts fall

within this range we have
Quality
22 25 28
Lower Limit Desired Mean Upper Limit
Copyright BCIOT School of Business 2020 Real Experiences. Real Results.

Acceptable Quality Unacceptable Quality
X
x
X
X X
22 25 28
Lower Limit Desired Mean Upper Limit

Tolerances & Deviations – Control Chart
Defective
28 Upper Control
Limit
25 Desired
Mean
22 Lower
control Limit
Discuss: When to take action on trending data?

Quality Issues in Projects
Planning
Voice of the Customer is not heard or heard incorrectly – customer

requirements, project scope is not accurate
Deliverables are not defined
Resource allocation – resources not verified as qualified/capable to successfully

complete the work
Incorrect person chosen as Project Manager

Planning
WBS is not complete – activities missing, interconnectedness of dependent

tasks inaccurate or missing
Cost/time estimates inaccurate – leading to incorrect budget or schedule

(over or under stated)
Incorrect personnel chosen for Project Team

Project Execution
What if project baselines are not correct as a result of quality issues from
Planning?
How will this impact project success?
How will this impact project performance management?

Project Execution/Monitor & Control
Process to verify a WBS component has been completed correctly before

moving to next activity
Ensure project work and communication is consistent with Voice of the

Customer requirements
Ensure resources obtained when needed are qualified fit for use

Project Execution/Monitor & Control
Regular reporting of project progress/status including any delays and their

cause(s) – Time and Cost considerations (Sessions 03 & 04). Earned Value
analysis
Include a thorough Quality Check at as part of each Project Gate Review

Closing
Internal verification of Deliverables – have we have met ALL customer

requirements?
Customer verification and acceptance (or rejection) of Deliverables –

may involve third party independent verification
Transfer of Deliverables to the Customer
Discuss: Can we have customer project sign-off if not all deliverables

completed?

Closing
Transfer project “lessons-learned” and issues into centralized project

management database – capture the knowledge for future projects
Hold a Final Project Review meeting to discuss quality issues that arose
and how they were resolved
Update Quality Assurance processes for future projects – continuous

process improvement

Revision Control
Every time we update product design we update the schematic or

engineering drawings. Ex. 1.3 rev up to 1.4
Discuss: why would ISO 9001 auditor closely check for old revision
drawings available at work stations or production floor?
Food
FIFO – First In First Out stock rotation – use closer expiry date first

Quality Issues – Assignment 02
Work Activities
For each Work Activity define how you will check quality workmanship
Compare to: engineering drawings, building schematics, building codes,

visual aesthetics, etc.
Show in a table format.

Role of PM: Project Quality
Ultimately responsible for ensuring quality levels attained throughout the
project
Pre-planning. Review past similar projects and Lesson Learned; what

went well, what did not
Elevate and resolve any quality issues that arise – may involve Sponsor,
Customer or team
Maintain records of quality issues as they arise
Implement process improvements to prevent recurrence on future

projects

Role of Team: Project Quality
Deal with quality issues that arise
Team needs a level of education and training in Quality

Management
Proactively look for possible quality issues in WBS

individually assigned activities
Utilize their subject matter expertise or departmental

knowledge on any possible quality issues that could be
expected

Quality Management
Project: construct 6 identical houses
1 2 3
4 5 6
Discuss: from a quality perspective what is best method to do this?

Quality Management
Which is the best option?
• Build all 6 at same time – 6 different contractors or construction crews
• Ladder-schedule building all 6 at one time
• Fully build only one at a time
Best Solution: Fully build one first then ladder-schedule the remaining 5. First
one will identify any quality issues to be corrected before proceeding further.

Quality Vs. Grade
Quality: Workmanship. Quality cannot be compromised
Grade: Specification
Examples:
4 or 5 star hotel, Grade A eggs, First Class vs. Economy
Often the customer already knows which Grade they wish – usually
based on available budget
Discuss: Quality vs, Grade in cars

Images Acknowledgement:
Slide 17: Conceptdraw.com

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OPMT 1187 Y

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

• Understand the difference between Quality Assurance and Quality

• Ability to differentiate between various quality tools and when to use

• Define quality in terms of the project customer

• Identify quality considerations in each project knowledge area

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

“The sum of features and characteristics of a product or service that bear

“The degree to which a set of inherent characteristics fulfills

Discuss: What are the quality characteristics of a ball-point pen or white-

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Customer Satisfaction – Understand, define, and manage requirements across

Management Responsibility – Qualified capable resources are acquired and

o Plan-Do-Check-Act (PDCA) Cycle

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Focus is on the Customer

Think back to Session 01 – Understanding and Approval of Customer

Project Quality and Risk Management – BCIT Course OPMT 2510

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

The current state of quality on the project. A snapshot of existing situation

Inspection to standards, testing and validation, looking for expected defects.

We need to rework or repair the discovered defects

Does NOT add value to the Customer

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

The desired state of quality, a proactive approach

Based on mistake-proofing, fail-safing, training - a total system-wide

Directly adds value to Customers

Management must actively support and provide resources to these efforts

Discuss examples of quality assurance features in your car

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Internal Failure Costs

External Failure Costs

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Discuss: should we tell customer about an internal failure we have corrected?

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

• Upset or delayed customer

Discuss: product recall costs for defective cars

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

All inspection costs

• Quality Department: personnel and testing equipment

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

All training, planning, process control and quality improvement costs to

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Continuous Improvement: make never-ending improvements to critical

Employee empowerment: Giving workers responsibility (and

Training – teamwork, quality, problem solving

Fail-safing: incorporating design elements that prevent incorrect processes

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Check Sheet: groups defects by category. Identifies areas to focus upon

Histograms: Bar chart of defects per category. Check highest occurrence

Scatter diagram: Shows relationship between two variables. Investigate

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Exercise: Create a fishbone diagram for “Bad Coffee”

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Identify and investigate outliers from the pattern

Real Experiences. Real Results.

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

Example. Part length: 25mm+/- 3mm means:

25 is the optimal desired

Copyright BCIT School of Business 2020 Real Experiences. Real Results.

If all inspected parts fall

Copyright BCIOT School of Business 2020 Real Experiences. Real Results.

Acceptable Quality Unacceptable Quality