You are on page 1of 70

PMP Examination Preparatory Course

Topic: Project Quality Management


Version 4.0
Project Quality Management – Hot Topics

Quality Assurance
Cost of Quality
Control Charts
Fishbone diagram

Quality Pioneers
Pareto Chart

Design of experiments

Statistical sampling Normal curve

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 2
Project Quality Management Processes

Initiating Monitoring & Closing


Planning Executing
Process Controlling Process Process
Process Group Process Group
Group Group Group
 Plan Quality  Perform  Perform Quality
Quality Control
Assurance

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 3
Project Quality Management

 Processes required to ensure that the project will satisfy the needs for which it
was undertaken
• Plan Quality (Planning)
• Perform Quality Assurance (Executing)
• Perform Quality Control (Monitoring & Controlling)

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 4
What is Quality?

 Quality Definitions:
• The degree to which a set of inherent characteristics fulfills requirements
• Conformance to requirements
• Fitness for use – Produce what was said to be produced and what gets produced must
satisfy the real need

Cost
Costof
ofpreventing
preventingmistakes
mistakesisisalways
alwaysmuch
muchless
lessthan
thancost
costof
of
correcting
correctingthem,
them,hence
hencePrevention
Preventionisisalways
alwaysbetter
betterthan
than
Inspection
Inspection

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 5
Plan Quality

 Involves identifying which quality standards are relevant to the project and
determining how to satisfy them
 Should be performed in parallel with the other project planning processes

Quality
Qualityisis planned,
planned,designed
designedand
andbuilt
built in
in ––Not
Not
inspected
inspectedin
in

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 6
Plan Quality

Inputs Tools and Techniques Outputs


 Scope Baseline  Cost-Benefit analysis  Quality Management Plan
 Stakeholder Register  Cost of Quality (COQ)  Quality Metrics
 Cost Performance Baseline  Control Charts  Quality Checklists
 Schedule Baseline  Benchmarking  Process improvement plan
 Risk Register  Design of experiments  Project document updates
 Enterprise Environmental  Statistical Sampling
Factors  Flowcharting
 Organizational process  Proprietary QM
Assets
methodologies
 Additional Quality Planning
tools

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 7
Inputs – Plan Quality
 Scope Baseline
• Scope statement : Contains the project description, major project deliverables and
acceptance criteria
• WBS: identifies the deliverables, the work packages and the control accounts used to
measure project performance
• WBS Dictionary: defines technical information for WBS elements
 Stakeholder Register
• Identifies stakeholders with particular interest in, or impact on, quality
 Cost Performance Baseline
• Documents accepted time phase used to measure cost performance

The
Thedefinition
definitionof
ofacceptance
acceptancecriteria
criteriacan
cansignificantly
significantlyincrease
increaseor
or
decrease
decreaseproject
projectquality
qualitycosts
costs

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 8
Inputs – Plan Quality

 Schedule Baseline
• Accepted schedule performance measures including start date and end date

 Risk Register
• Information on threats and opportunities that may impact quality requirements

 Enterprise Environmental Factors


• Governmental Agency regulations, rules, standards and guidelines etc.

 Organizational Process Assets


• Organizational quality policies, procedures etc
• Lessons learned from previous projects

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 9
Tools & Techniques – Plan Quality

 Cost / Benefit Analysis


• The primary cost of meeting quality requirements is the expense associated with
Project Quality Management activities. Benefits are less rework, higher productivity,
lesser costs etc.
 Benchmarking
• Involves comparing actual or planned project practices to those of comparable projects
to identify best practices, generate ideas for improvement and to provide a basis by
which to measure performance
 Design of Experiments (DoE)
• DoE is a statistical method that helps identify which factors may influence specific
variables of a product or process under development or in production
• It provides a statistical framework for systematically changing all of the important
factors, instead of changing the factors one at a time
 Cost of Quality (or Conformance) CoQ  Discussed in the next slide

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 10
Cost of Quality (CoQ)

Types of Costs Associated with Quality are:


Cost of Conformance (Prevention and Appraisal costs)
Cost of Non-Conformance (Failure Costs)

Prevention costs Appraisal costs Failure costs


 Costs associated with  Costs associated with checking  Costs associated with products
preventing defects from the product to separate the that have failed to meet the
occurring – PROACTIVE defectives from the acceptable quality requirements. Failures
 Planning for quality products – REACTIVE can be internal as well as
 Inspections external.
 Training
 Reviews  Scrap
 Audits
 Repair and rework
 Testing
 Product recalls
 Loss of customers
 Down time

 Impact of Poor Quality – Increased cost, decreased productivity, increased risk, increased cost
of tracking and monitoring
 The cost of conformance is always lower than the cost of non-conformance !!

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 11
Tools & Techniques – Plan Quality

 Control Charts
• Used to determine whether or not a process is stable and has predictable performance
• Covered in later in this presentation
 Statistical Sampling
• Choosing a part of population of interest for inspection
• Sample size and frequency are planned
 Flowcharting
• Graphical representation of process steps and their inter-relationships
 Proprietary QM Methodologies
• Six sigma, TQM, CMMi etc (Covered in later in this presentation)
 Additional Quality Planning Tools
• Brain storming, Force field analysis, Affinity diagrams, Nominal group techniques, etc

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 12
Grade Vs Quality

 Grade vs. Quality


• A ranking or categorization used to distinguish items or products that have the same
functional use (e.g., eggs, hammers, paper), but do not share the same requirements
for quality (e.g., different hammers maybe built to withstand varying degrees of force)
• If the customer or client’s requirement calls for grade B materials rather than grade A,
then using grade A does not add to the project. You must understand the spec, then
conform to it.

Low
LowGrade
Gradeisisacceptable,
acceptable,but
butnot
notlow
lowQuality
Quality

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 13
Outputs – Quality Planning
 Quality Management Plan
• Describes how the project management team will implement the performing organization’
quality policy
 Quality Metrics
• A metric describes what something is and how the QC process measures it.
• A measurement is an actual value
 Quality Checklists
• A checklist is a structured tool, used to verify that a set of required steps has
been performed
 Process Improvement Plan
• Process boundaries, process configuration, process metrics, Targets for
improved performance.
 Project Document Updates

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 14
Sample Question

 Which of the following is correct with respect to a product developed or


service performed?
• A. Low quality is acceptable, low grade is not.
• B. Low grade is acceptable, but low quality is not
• C. Neither low grade nor low quality is acceptable
• D. Grade and quality are the same thing

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 15
Sample Question (Cont’d.)

 Which of the following statements about Cost of Quality are true?


• A. The cost of quality is the expense of non-conformance to requirements
and specifications
• B. The costs of quality are mostly the direct responsibility of workers who are
manufacturing the product
• C. Quality control programs should only be implemented when the costs of
quality is low
• D. A and B

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 16
Perform Quality Assurance (Executing Process Group)

 Quality Assurance is the application of planned, systematic quality


activities to ensure that the project will employ all processes needed to
meet requirements
• Performed by Q.A. department or group
• QA also provides support for Continuous Process Improvement
• Quality assurance is not a one time activity, but performed throughout the
project

Continuous
ContinuousProcess
ProcessImprovement
Improvementreduces
reduceswaste
waste
and
andnon-value-added
non-value-addedactivities
activities

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 17
Perform Quality Assurance

Inputs Tools and Techniques Outputs


 Project Management Plan  Quality planning tools and  Organizational process assets
 Quality Metrics Quality control tools updates
 Quality audits  Change requests
 Work performance information
 Quality control measurements  Process Analysis  Project management plan
updates
 Project document updates

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 18
Inputs – Quality Assurance
 Project Management Plan
• Quality Management Plan: Describes how QA will be performed with in the project
• Process Improvement Plan: Details the steps for analyzing processes to identify
activities which enhance their value
 Quality Metrics
• Is an operational definition that describes, in very specific terms, a project or product
attribute and how a quality process will measure it
 Work Performance Information
• Project deliverables status, schedule progress, costs incurred.
 Quality Control Measurements
• QC measurements are the results of QC activities that are fed back to the QA process

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 19
Perform Quality Assurance – Tools & Techniques

 Quality Planning & Control Tools and Techniques


• Discussed in Plan Quality and Quality Control Processes
 Quality Audits
• A quality audit is a structured, independent review to determine whether project
activities comply with organizational and project policies, processes, and procedures
• Quality audit may be scheduled or random and may be conducted by internal or
external auditors.
 Process Analysis
• Follows steps outlined in process improvement plan
• Examines problems/constraints experienced
• Includes root cause analysis

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 20
Perform Quality Assurance – Outputs

 Organizational process assets updates


• Changes in quality standards (not limited to)
 Change requests
 Project management plan updates
 Project document updates
– Quality audit reports, Training plans, process documentation.

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 21
Perform Quality Control

 Involves monitoring specific project results to determine compliance with


standards
 Identify and eliminate causes of unsatisfactory results
 Performed throughout the project
 Project results include deliverables as well as project management results –
cost / schedule performance

Quality
Qualitystandards
standardsinclude
includeproject
projectprocesses
processesand
andproduct
productgoals
goals

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 22
Perform Quality Control (Cont’d.)

Understanding Different Terms

PREVENTION INSPECTION
 Keeping errors out of the process  Keeping errors out of the hands of customers

VARIABLES SAMPLING
ATTRIBUTE SAMPLING
 Result is rated on a continuous scale that
 The results Conform or Does not conform
measures degree of conformity

SPECIAL CAUSES
RANDOM / COMMON CAUSES
 Unusual events (also known as assignable
 Normal process variation
causes)

CONTROL LIMITS
TOLERANCE (Specification limits)
 Derived from the performance
 Set by the Customer, Regulatory bodies,
standards’ bodies, and Organization  Process is in control if results fall within the control
limits

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 23
Perform Quality Control (Cont’d.)

Inputs Tools and Techniques Outputs

 Project management plan  Cause and Effect diagram  Quality control measurements
 Quality Metrics  Control charts  Validated changes
 Quality Checklists  Flow-charting  Validated deliverables
 Work performance information  Histogram  Organization process assets
 Approved change requests  Pareto chart (updates)

 Deliverables  Run chart  Change requests

 Organizational process assets  Scatter diagram  Project management plan


(updates)
 Statistical sampling
 Project document updates
 Inspection
 Approved change request review

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 24
Perform Quality Control – Inputs

 Project Management Plan


• Covered in previous process
 Quality Metrics
 Quality Checklists
 Organization Process Assets
 Work Performance Information – Planned vs. Actual
• Technical performance, schedule performance, cost performance
 Approved Change Requests
• Modifications such as Revised work methods, revised schedule etc.
 Deliverables (work product)

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 25
Tools & Techniques – Perform Quality Control
1
 Fishbone diagram / Cause and Effect Diagram / Ishikawa diagram
• This is also called as root cause analysis; Developed by Ishikawa; Reflects the shape of a fish bone
• Usually conducted in groups; brainstorming is conducted to identify probable causes
• Each ‘Major Cause’ is drilled down to identify causes leading to it
• Rule of Thumb – Do not go beyond 5 levels of ‘drill down’

Tight Schedules People

Late start unskilled


Problem
(Defect)

Not defined
Ill-maintained

Methodology Machine

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 26
Tools & Techniques – Perform Quality Control (Cont’d.)
2
 Inspection
• Examination of a work product to determine if it conforms to documented
standards
• Used to validate defect repairs
• Inspections can be in-process and/or after the product is finished
• Also referred to as reviews, peer reviews, audits or walkthroughs

Inspection
Inspectionisisalso
alsoaaT&T
T&Tof
ofScope
ScopeVerification
Verification

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 27
Tools & Techniques – Perform Quality Control (Cont’d.)
3
 Control Charts
• Purpose is to determine whether or not a process is stable or has predictable
performance
• Illustrate how a process behaves over time
• Can be used to plot any type of output variable
• Helps identify whether process is under control
• Process is said to be capable when it is under control and can meet the set
specification limits
• Upper and Lower control limits are usually set at + / - 3 sigma (standard deviation)

Control
Controlcharts
chartscan
canbe
beused
usedfor
forboth
bothProject
Projectand
andProduct
Productlife
lifecycle
cycle
processes
processes

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 28
Tools & Techniques – Perform Quality Control – Control Chart

Typical Control Chart

Upper Control Limit (UCL)

Typically ± 3σ
R
A
N
G
E
Results Lower Control Limit (LCL)

Typically ± 3σ

TIME

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 29
Tools & Techniques – Perform Quality Control – Control Chart (Cont’d.)

Random and special causes


Special Cause

N
O
R Upper Control Limit
M
A
L
V
A
R
I
A
T
I Results Lower Control Limit
O
N

TIME

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 30
Tools & Techniques – Specification Limits are set by Customer

Process under control but outside limits set by customer

UCL

Upper Specification Limit


R
A
N
G Lower Specification Limit
E

LCL
Rejects
TIME

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 31
Tools & Techniques

Process outside control limits, but within customer specifications


Upper Specification Limit

UCL

R
A
N
G LCL
E
Lower Specification Limit

Accepted
TIME

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 32
Tools & Techniques – Perform Quality Control – Control Chart

Process under control and capable – provides assurance

Upper Specification Limit

Upper Control Limit

R
A
N
G
E
Lower Control Limit

Lower Specification Limit

TIME

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 33
Tools & Techniques – Perform Quality Control – Control Chart (Cont’d.)

RULE OF SEVEN: Seven non-random points above or below the mean

Upper Specification Limit

Upper Control Limit

R
A
N
G
E
Lower Control Limit

Lower Specification Limit

TIME

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 34
Tools & Techniques – Perform Quality Control – Pareto Chart
4
 Pareto Chart
Defect Pareto
60 100%
• Histogram ordered by frequency of
90%
occurrence 50
80%
• Also called 80/20 rule or “vital few
70%
trivial many rule” 40
60%
• Helps project teams focus on
30 50%
problems that are causing the
greatest number of defects first 40%
20
30%

20%
10
10%

0 0%
D B A C E F I
Number of Defects % of Total

Rank
Rankordering
orderingisisused
usedto
toguide
guidecorrective
correctiveaction
action

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 35
Tools & Techniques – Perform Quality Control – Flow Charting
5
 Flowcharts Sample
• Help to analyze how problems occur START

• Show how various elements of a


system interrelate Step 1 – Develop product

• Helps teams anticipate what and


where quality problems may occur so
that they can be proactively be Review Fail
tackled Decisio Rework
n?
• Example – If Review step is not
planned, defective products may get Pass
shipped
Dispatch

End

All
Allprocess
processflowcharts
flowchartsshow
showactivities,
activities,decision
decisionpoints,
points,and
andthe
the
order
orderof
ofprocessing
processing
PMBOK Workshop | Financial Services
All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 36
Tools & Techniques – Perform Quality Control
6
 Statistical Sampling
• Choosing part of a population for inspection
• Appropriate sampling can help reduce cost of inspection and quality control

 Example:
• Randomly selecting 5 projects from a list of 60 for an audit

Appropriate
AppropriateSampling
Samplingcan
canreduce
reducethe
thecost
costof Quality Control
of Quality Control

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 37
Project Quality Management

Normal Distribution / Statistical Metrics


 Mean = Arithmetic Average. To calculate the mean, we add all the given numbers
and then divide the sum by total count. A total count is a number that is equal to
how many those given rational numbers we did add together
 Median = Middle. It means the middle value of the several readings, where all
those given readings are placed in an increasing order
 Mode = Most Common. The most common value found in a group consisting of
several readings is called as the 'mode'. A group of observation can have more
than one modal value

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 38
Project Quality Management (Cont’d.)

Normal Distribution / Statistical Metrics


 Variance – measure of a variable’s statistical dispersion through a sample
 Standard Deviation – the most common measure of statistical dispersion,
measuring how spread out the values in a data set are. It’s defined as the square
root of the variance
STD. DEV. OF TASK = P – O
6
TASK VAR. = (P – O)2 = (Std. Dev )2
6

________________________
Project Std. Dev = √ sum of the task variances

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 39
Project Quality Management (Cont’d.)

Normal Distribution

SIGMA
SIGMA 11 == 68.26
68.26
22 == 95.46
95.46
33 == 99.73
99.73
66 == 99.99
99.99

Memorize
 68% of the area under any normal curve lies within 1 standard
deviation from the mean
 95.5% of that area lies within 2 standard deviations from the mean
 99.7% of that area lies within 3 standard deviations from the mean

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 40
Tools & Techniques – Perform Quality Control
7
 Histogram 140 Histogram

• Bar chart showing a distribution of 120


variables
• Each column represents an attribute 100

or characteristic of problem/situation
80
• Height of columns represent relative
frequency of characteristic 60

• Helps identify cause of problems in a


40
process by shape and width of
distribution
20

0
D B A C E F I G J H
Number of Defects

Rank
Rankordering
orderingisisused
usedto
toguide
guidecorrective
correctiveaction
action

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 41
Tools & Techniques – Perform Quality Control (Cont’d.)
8
 Run chart
• Shows history and pattern of variation
• Shows trends in process over time, variation over time, declines or improvements in
process over time
• Facilitates trend analysis
• Mathematical techniques are used to forecast future outcomes based on historical
results

25.0% Run Chart


20.0%
% variation

15.0%
10.0%
5.0%
0.0%
1 2 3 4 5 6 7 8 9 10
-5.0%
Weeks
Schedule Variance Linear (Schedule Variance)

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 42
Tools & Techniques – Perform Quality Control (Cont’d.)
9
 Scatter Diagram
• Shows the pattern of relationship between two variables
• Dependent versus independent variables are plotted
• The closer the points are to a diagonal line, the more closely they are related

60 Scatter diagram
50
undetected defects

40

30

20

10

0
0 1 2 3 4 5 6
Hours in review

Undetected Defects Linear (Undetected Defects)

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 43
Tools & Techniques – Perform Quality Control (Cont’d.)
10
 Approved Change Requests Review
• To verify whether or not Change requests are implemented as approved

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 44
Perform Quality Control – Outputs
Quality control measurements
Documented results of QC activities as per Quality plan
Validated changes
Validated deliverables
Organization process assets (updates)
Completed checklists
Lessons learned documentation
Change requests
Project management plan (updates)
Quality management plan
Process improvement plan
Project document updates

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 45
Quality Assurance Vs Quality Control

Quality Assurance (QA) Quality Control (QC)

QA activities ensure that the process is QC activities focus on finding defects in


defined and appropriate specific deliverables
E.g. Standards development E.g. Testing

Process Oriented Product Oriented

Makes sure you are doing the right Makes sure the results of what you've
things, the right way done are what you expected

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 46
Sample Question

 Which of the following is not an output of quality assurance:


• A. Recommended corrective actions
• B. Updates to the project plan
• C. Requested changes
• D. Quality audits

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 47
Sample Question (Cont’d.)

 Design of experiments (DoE) is a technique used in:


• A. Perform quality assurance process
• B. Perform quality management process
• C. Quality planning process
• D. Perform quality control process

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 48
Sample Question (Cont’d.)

 Quality costs include all of the following except:


• A. Quality planning tools and techniques
• B. External failure
• C. Appraisal
• D. Prevention

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 49
Sample Question (Cont’d.)

 As the project manager on a large defense project, you find that there
are an unexpectedly large amount of quality problems on your project.
You decide that your best approach is to focus on the root cause of the
problems. Which would be the best tool for you to use:
• A. Trend analysis
• B. Ishikawa diagram
• C. Pareto chart
• D. Control chart

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 50
Sample Question (Cont’d.)

 The upper and lower control limits on a control chart represent:


• A. The specification limits for a process
• B. The customer’s specifications for quality
• C. The acceptable range of variation in a process
• D. The variation of a process from the mean

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 51
Sample Question (Cont’d.)

 A series of consecutive points on the same side of an average is


called:
• A. The rule of seven
• B. A run
• C. An outlier
• D. A trend

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 52
Quality Management Topics (Additional Reading Material)

 Deming
 Juran
 Crosby
 Taguchi
 Gold Plating
 Six Sigma

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 53
Project Quality Management – Quality Philosophy

Continuous
Improvement
Standards Proprietary Approach Non-Proprietary Approach

Deming – PDCA cycle


Total Quality Management

ISO 9000 Crosby – Zero defect


series Kaizen

Juran – Quality
improvement, planning and Just-In-Time
control

Taguchi - Design of Six Sigma


Experiments

Quality Management Approach


For both Product and Project

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 54
Quality Pioneers

W. E. Deming
 Pioneered the use of statistics and sampling methods in the 1920’s as
30’s
 Was influenced by Shewhart (plan-do-check-act cycle)

According to Deming:
 85% of quality problems required
managers to make corrective actions
 15% of quality problems were errors that
workers or team members could control

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 55
Quality Pioneers (Cont’d.)

Joseph M. Juran
 Developed the “Juran Trilogy”: quality improvement, quality planning,
quality control
 Emphasized the importance of products being fit for customers’ use
 Was concerned with the legal side of quality standards:
• Criminal liability
• Civil liability
• Warranties
• Appropriate corporate actions

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 56
Quality Pioneers (Cont’d.)

Philip B. Crosby
 Postulated that:
• Error prevention is the key to high quality
• Activities should be done correctly the first time
• Quality is conformance to requirements
• The system of quality is prevention
• The performance standard is zero defects
• The measurement of quality is the price of nonconformance

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 57
Additional Reading Material

JIT (Just-in-Time)
 In order to reduce inventory costs, a company may ask suppliers to
deliver just as much supplies or raw materials as are needed to satisfy
the company’s short-term needs (i.e., “just in time”)
 This means that quality must be high in order to make sure that there
are enough supplies or materials needed to meet production
requirements

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 58
Other PMP Concepts

Gold plating
 Adding tasks or components that are not in the approved scope
• The only activities that should be performed are those in the Work
Breakdown Structure
• Gold plating adds ZERO value to the project
• PMs should concentrate on conforming to requirements, and nothing
else
• Gold plating does not add to quality

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 59
Additional Reading Material – Six Sigma

 Six Sigma is “a methodology to manage process variations that cause


defects, defined as unacceptable deviation from the mean or target;
and to systematically work towards managing variation to eliminate
those defects.”
-- Motorola Corporation: (
http://www.motorola.com/content.jsp?globalObjectId=3088)
 A quality improvement initiative undertaken by the performing
organization
 Focuses on systematically correcting mistakes revealed by thorough
inspection
 Can improve the quality of the project’s management

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 60
Project Quality Management – Six Sigma

Normal Distribution

SIGMA
SIGMA 11 == 68.26
68.26
22 == 95.46
95.46
33 == 99.73
99.73
66 == 99.99
99.99

Memorize
 68% of the area under any normal curve lies within 1 standard
deviation from the mean
 95.5% of that area lies within 2 standard deviations from the mean
 99.7% of that area lies within 3 standard deviations from the mean

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 61
Additional Reading Material

ISO 9000
 A family of ISO (the International Organization for Standardization)
standards for quality management systems
• The standards originated in manufacturing, but are now employed
across a wide range of other types of organizations
• ISO 9000 does not guarantee the quality of end products and
services; rather, it certifies that consistent business processes are
being applied

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 62
Additional Reading Material (Cont’d.)

Kaizen ( 改善 )
 Japanese word for “improvement.”
• Refers to the concept of continuous improvement
• For the PMP exam know:
 Kaizen is small, incremental improvements
 A project manager practicing Kaizen is always looking for a way to make
things better

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 63
Sample Question

 Many quality experts believe that a severe limitation of Taguchi’s


approach to the design of experiments is the need for timing with
respect to product/process development. The technique can only be
effective when applied early in the design of the product/process
system
 Design of experiments is a technique that helps:
• A. Set up a standard used to measure performance
• B. Identify which factors might influence specific variables
• C. Determine how various elements of a system
interrelate
• D. Determine benchmarking variables and measure

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 64
Sample Question (Cont’d.)

 A well written policy statement on quality will:


• A. Define the protocols for making changes to the policy
• B. Include an explanation of how customers view quality
in their own companies
• C. Promote consistency throughout the enterprise and
across projects
• D. Be based on the plan-do-check-act cycle

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 65
Sample Question (Cont’d.)

 The use of quality management processes and activities aims to


provide a higher degree of:
• A. Project team performance
• B. Needs satisfaction
• C. Process capability
• D. Product improvement

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 66
Sample Question

 The project team is using a Pareto chart as part of their effort to


determine what quality standards will be used on the project. What part
of the project quality management process are they in?
• A. Quality defect analysis
• B. Perform quality control
• C. Perform quality assurance
• D. Quality planning

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 67
Project Quality Management – Recap

Quality Assurance
Cost of Quality
Control Charts
Fishbone diagram

Quality Pioneers
Pareto Chart

Design of experiments

Statistical sampling Normal curve

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 68
Review Questions Time

 Review Questions

PMBOK Workshop | Financial Services


All work described was performed by Capgemini or a Capgemini affiliate
© 2009 Ca 69
Thank You

www.capgemini.com/financialservices

You might also like