CPM -100: Principles of Project
Management
Lesson C: Quality Management
Presented by
John Cormier PMP
cormierj@erols.com
Ph: 703-819-7776
Presented at the IPM 2003 Fall Conference
Prepared by the Washington, D.C. Chapter of PMI
Presenter: John Cormier PMP
Quality
• Quality is:
– Conformance to requirements
– Fitness for use.
• Quality is not:
– Luxury,
– Gold plating,
– High grade or prestige.
Presenter: John Cormier PMP
COMPATIBILITY
• The PMI approach to quality is intended
to be compatible with the International
Organization for Standardization (ISO).
• The PMI approach is also compatible
with proprietary approaches to quality
such as those recommended by gurus
such as Deming, Juran, and Crosby
Presenter: John Cormier PMP
Guru Legacies
• Deming: Plan-Do-Check-Act (PDCA)
and the Japanese “Deming Award”.
• Crosby: “Quality is Free” & Zero
Defects.
• Juran: “The Quality Trilogy” of Planning,
Control and Improvements.
• Feigenbaum: “The Cost of NonConformance”
Presenter: John Cormier PMP
Project Process Groups
Planning
(Quality Plan)
Initiating
Controlling
(QC)
Executing
(QA)
Closing
Presenter: John Cormier PMP
Quality Planning
INPUTS
1. Quality policy
2. Scope statement
3. Product descriptions
4. Quality standards and
regulations.
5. Other: procurement
planning, contract
stipulations, risk
planning, etc
TOOLS & TECHNIQUES
1. Benefit/cost analysis*
2. Benchmarking*
3. Flow charting
4. Design of experiments
5. Cost of Quality
OUTPUTS
1. Quality Management Plan.
2. Operational definitions
3. Checklists and inputs to
other processes
Presenter: John Cormier PMP
Planning For Quality
• Benefit/cost analysis: Finding ways
eliminate rework, lower final costs, and increased stakeholder satisfaction. Finding
trade-offs.
• Benchmarking: Looking for “best
practices” that can improve quality and
performance.
Presenter: John Cormier PMP
Planning For Quality
• How do you determine the tolerance for
defects?
– Corporate policy
– Contract requirement
– User expectations
• How much quality is “good enough”?
• How do you measure quality?
– New 6 sigma?
– Traditional 3 sigma?
Presenter: John Cormier PMP
3 Sigma (σ) Bell Curve
Presenter: John Cormier PMP
Traditional Industry Standard
• Three sigma (σ) equals three standard
deviations above and below the mean.
• This represented 99.73 of the area under
the normal distribution curve that
represented the total population of products
produced.
• Three sigma quality means 99.73% of
products are defect free.
• Sounds pretty good, wouldn’t you say?
Presenter: John Cormier PMP
Three Sigma Calculations (1994)
• 20,000 incorrect prescriptions per year.
• 70 incorrect surgical operations per day.
• 16,000 pieces of mail lost each hour.
• 10 commercial airline crashes per day.
• 22,000 checks deducted from the wrong
bank account each hour.
• 15 minutes without electrical power
daily.
Still happy with three sigma?
Presenter: John Cormier PMP
How Much Quality is Enough?
• Today, the traditional 3 sigma capability is
not good enough for many industries and
customers.
• New goal is 6 sigma! Variances will be so
small that there will only be 2 defects
outside the control limits for every billion
units produced.
• Can you ever reach zero defects?
Presenter: John Cormier PMP
Planning For Quality
• Flowcharting: Using diagrams to show
relationships i.e., cause/effect diagrams,
process flow diagrams, etc.
• Design of Experiments: Identifying
variables that can influence outcomes and
evaluating options that offer cost
advantages without impact to quality.
Presenter: John Cormier PMP
Process Flow Diagram
System
Requirement
Delivery and
Installation
Customer
Acceptance
Preliminary
Design
Validation
Testing
Final
Design
Fabricate and
Assembly
Where would you
have check points?
Presenter: John Cormier PMP
Cause & Effect Diagram Example
(Fish Bone or Ishikawa Flow Chart)
Cause
Time
Machine
Method
Effect
Material
Major
Defect
Energy
Measure
People
Environ.
Quality Control Tool & Technique
•
Brainstorm probable causes for the defect.
•
Classify in related groups.
•
Start solving with the group having the most likely cause.
Presenter: John Cormier PMP
Assessing The Cost of Quality
• Cost of Conformance:
– Prevention costs
– Appraisal costs.
• Cost of Non-Conformance:
– Internal failure costs.
– External failure costs (includes loss of
customer confidence).
Presenter: John Cormier PMP
Outputs of Quality Planning
• Quality requirements defined
• Operational definitions (metrics for quality
assessments).
• Checklists for QA and QC.
• The Quality Management Plan
Presenter: John Cormier PMP
Quality Assurance
TOOLS & TECHNIQUES
INPUTS
1. Quality Management
Plan
2. Results of Quality
Control measurements
3. Operational definitions.
1. Quality planning tools such
as Benefit/cost analysis,
benchmarking, flow
charting, cause effect
diagrams, etc
2. Quality Audits.
3. Promote quality at the
source
OUTPUTS
1. Quality improvements to
include new initiatives,
corrective actions and
Presenter: John Cormier changes
PMP
Assuring Quality
• Application of quality planning tools and
techniques such as:
– Benefit/cost analysis
– Benchmarking
– Flow charting
– Cause effect diagrams
• Auditing
• Promoting quality at the source.
Presenter: John Cormier PMP
Managing Quality Control
TOOLS & TECHNIQUES
INPUTS
1. Quality Management
Plan
2. Results of work
3. Checklists
4. Operational definitions
1. Inspection
2. Control charts*
3. Pareto charts*
4. Statistical sampling
5. Flow charting
6. Trend analysis
OUTPUTS
1. Risk Management Plan.
Presenter: John Cormier PMP
Quality Definitions
• Attribute: A characteristic that reflects.
conformance or non-conformance to
specifications and tolerances. A go-nogo metric.
• Variable: a characteristic that can be
measured in increments related to
control limits.
• Probability: The percentage of chance
that something will happen.
Presenter: John Cormier PMP
Quality Control Definitions
• “Rule of Seven”: When seven
consecutive samples are found on one
side of a control chart specification, the
process is statistically out of control.
• Process Control Assessment:
Testing a process to determine if
control limits are within customer
acceptance tolerances.
Presenter: John Cormier PMP
Sample Control Chart
UCL
o
USL
o
o
o
Specification
o
o
o
o
X
o
o
o
oo
o
LSL
LCL
UCL = Upper Control Limit
USL = Upper Specification Limit
LCL = Lower Control Limit
LSL = Lower Specification Limit
Presenter: John Cormier PMP
o
o
Statistical Sampling
• Tolerances
– Upper and Lower Control Limits.
– Upper and Lower Specification Limits.
• Out-of-Control Situation
– A data point exceeds a limit.
– Rule of Seven occurs.
Presenter: John Cormier PMP
Control Chart Variances
– Random Variance: Variations normal
to the process and deemed
acceptable.
– Special Variance: Variations outside
the normal range that can be
assigned a cause (special or
assignable cause) and the process
needs to be fixed.
Presenter: John Cormier PMP
Pareto Diagram
• A histogram of defects, ordered by the
frequency of occurrence.
• Rank ordering is used to focus
corrective action on the most often
occurring problems.
• “The 80/20 Rule”. The majority of
defects (80%) are usually caused by a
vital few (20%) of the problems.
Presenter: John Cormier PMP
Pareto Chart
Presenter: John Cormier PMP
Statistical Sampling
• Attribute Sampling: Determining
whether to reject or accept the entire
lot (go-no go decisions).
• Variable Sampling: Using control charts
to measure variance in a process to
determine the process capability and
deciding whether to accept or reject.
Presenter: John Cormier PMP
Output of Quality Control
• Quality improvements
• Acceptance decisions
• Rework decisions and scrap
• Rejection of deliveries
• Documentation
• Process adjustments
Presenter: John Cormier PMP
Quality Team Responsibilities
• Customers - Set the requirement.
• Senior Management - Sets the tone.
• Project Manager - Select & implement
quality requirements.
• Quality Staff - Monitor & inspect for
compliance.
• Suppliers / Vendors - Meet the specified
quality standards.
• Project Team - provide quality at the
source.
Presenter: John Cormier PMP