PROJECT EVALUATION & MONITORING

C H A P T E R TWO

Project Quality Management

By: Mohammed Getahun (MSc, Assistant Professor) in

Accounting & Finance
 Objectives of the Chapter

After completing this chapter you will be able to:

 Define quality and project quality management?
 Discuss quality experts’ view of modern quality
management
 To identify the difference between Grade & quality
 Describe what is involved in quality planning, quality
assurance, and quality control on projects
 To Discuss various types tools and techniques in quality
planning, quality assurance, and quality control on
projects. 2
 Project Success

As beauty is in the eye of the beholder, "project

success" is in the eye of the stakeholder:
Many definitions of "project success" exist no
universally accepted set of criteria.

 The common denominator in all definitions of

project success: the "iron triangle" of
schedule, cost and quality.

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I Concept of Quality
The
1950's Current

Screening out Preventing

defects defects & failures

Inspection Processes
 Definition of Quality

Quality definition; the totality of characteristics of an

entity that bears on its ability to satisfy stated or implied
needs (ISO 8042:1994).
The degree to which a set of inherent characteristics
fulfills requirements (ISO 9000:2000).

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 The Concept of Quality

Conformance to requirements (Meeting

specification).
Fitness for use
But is not sufficient to ensure:
• Customer satisfaction
• Good reputation
• Repeat business

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 The Concept of Quality

Quality implies:
 Fitness for the intended purpose
 Performance
 Safety
 Reliability
 Ease of handling
 Logistical support
 Environmental safety
Value for money
Absence of defects
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 The Concept of Quality

Quality implies that everybody:

 Plan-Do-Check-Act cycle.
 conformance to requirements
 Knows the extent to which meets the expectations
 Customer determination, not an engineer's
determination, not a marketing determination
 Has the ability & authority to take required corrective
actions

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 The Concept of Quality

 Quality does not necessarily imply:

 Most expensive
 Most sophisticated, most features
 Most reliable
 Good quality implies cost-effectiveness and
fitness for a specific intended purpose.
 Quality is equivalent to consumer satisfaction

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 Project Quality Management

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? For project management, quality is
simply what the customer or stakeholder needs from the
project deliverables.

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 Project Quality Management:

Modern quality management complements project

management and both discipline recognize the
importance of;
Customer Satisfaction
Prevention Over inspection
Continuous Improvement
Management Responsibility

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 Grade versus Quality – Definitions and Differences

QUALITY:
It is conformance to the requirements.
It includes the product and the customer’s requirements
As PMP Book: Quality Management is defined as “the
degree to which a set of inherent characteristics fulfills
the requirements.
GRADE:
Many people get confused with quality and grade, and
assume that they are similar; however, they are not the
same.

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Precision versus Accuracy

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Benefits of project quality management:

Quality products
Customer satisfaction
Increased productivity
Financial gains
better teamwork

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 Determining the Quality Policy

Top management should define the quality policy; this is part of

the organizational process assets.
The quality policy of the organization may follow a formal
approach such as: ISO 9000, Six Sigma, or Total Quality
Management (TOM).
1. Six Sigma is defined as “a comprehensive and flexible system
for achieving, sustaining and maximizing business success.
 Six Sigma principles for quality control normally follows a five
phase improvement process called DMAIC (define, measure,
analyze, improve, and control).

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 …Cont’d

2. ISO 9000:Definition is a description of a quality

management system.
 The object of the ISO 9000 family of standards is to
provide organizations with the guidance and tools needed
to ensure that their products and services meet external
requirements and drive consistent quality improvement.
 The seven quality management principles include the
following as described by the ISO (Customer focus,
Leadership, Engagement of people, Process approach,
Improvement, Evidence-based decision making and
Relationship management). 16
 …Cont’d

3. Total Quality Management (TQM):

TQM is the continual process of detecting and reducing or
eliminating errors in manufacturing, streamlining supply chain
management, improving the customer experience, and ensuring
that employees are up to speed with training.
Aims of TQM is to hold all parties involved in the production
process accountable for the overall quality of the final product or
service.

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 Project Quality Management processes

Quality management processes help to control the cost of a

project, establish standards, and determine the steps to
achieving and confirming those standards.
Effective quality management of a project also lowers the risk of
product failure or unsatisfied, unhappy clients.
What Are the Different Phases in Project Quality Management?
 Project quality management comprises three phase
1. Quality Planning
2. Quality Assurance
3. Quality Control

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 Project Quality Management processes

• Quality planning: identifying which quality standards

are relevant to the project and how to satisfy them
• Quality Assurance (QA) is a management method
that is defined as “all those planned and systematic
actions needed to provide adequate confidence that a
product, service or result will satisfy given
requirements for quality and be fit for use”.
• Quality control: monitoring specific project results to
ensure that they comply with the relevant quality
standards while identifying ways to improve overall
quality
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 1. Performing Project Quality Management plan

Quality Planning involves identifying with quality

standards. The project manager and the project team
must identify the requirements of planning.
The way the team will implement the quality policy
Determine how the requirements may be met
Identify the costs and time demands to meet the
identified requirements.
Quality is planned in, not inspected in.
Planning for quality is more cost-effective than
inspecting work results and doing the work over or
correcting the problems. 20
 Quality Planning Tools and Techniques

It is important to design in quality and communicate important

factors that directly contribute to meeting the customer’s
requirements.
Design of experiments helps identify which variables have the
most influence on the overall outcome of a process.
Various tools and techniques are employed on each of these three
major processes.
I. Cost-Benefit Analysis
II. Statistical Sampling
III. Flowcharting
IV. Brainstorming
V. Cause-and-effect diagrams
VI. Histograms
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 …cont’d

VII. Cost of Quality: cost to ensure conformance to requirements as

well as the cost of non-conformance cost.
The following costs are associated with quality:
Cost conformance can be:
1. Prevention costs
2. Appraisal costs
 Non-conformance cost.
 Internal failures and
 External failures

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 Quality Assurance

Quality assurance includes all the activities related to satisfying

the relevant quality standards for a project
Another goal of quality assurance is continuous quality
improvement.
The process improvement plan is developed in the Plan Quality
Management process. It should contain at least the following
information:
 Existing process description
 Current process metrics
 Targets for improvement
 Approach for improvement
 Flow of the existing process
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 Perform Quality Assurance Tools & Techniques

They are wide tools and techniques of the Perform

Quality Assurance Process
 Process Decision Program Charts
 Interrelationship Digraphs
 Tree Diagrams
 Prioritization Matrices
 Activity Network Diagram
 Quality Audit
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 Control Quality

 This is the third and final process in this knowledge area which
comes under monitoring and control process groups for
Performing Quality Control.
 Quality control: monitoring specific project results to ensure that
they comply with the relevant quality standards while identifying
ways to improve overall quality
 It is the process of monitoring and recording results of executing
the quality activities to assess performance and recommend
necessary changes.
 The key benefits of this process include:
• Identifying the causes of poor quality
• Validating that project deliverables and work meet the
requirements.
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 Important Quality terms

 Prevention (Keeping errors out of the process) vs.

Inspection (Keeping errors out of the hands of the
customer).
 Tolerance means range of acceptable results and control
limits means threshold which may indicate out of
control.
 There is a tradeoff between Quality and Grade.

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 Quality Control

The main outputs of quality control are

– acceptance decisions
– rework
– process adjustments
Some tools and techniques include
– Pareto analysis
– statistical sampling
– Six Sigma
– quality control charts
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PUT THIS KNOWLEDGE TO WORK!