PMI Quality Management Review

CPM -100: Principles of Project
Management
Lesson C: Quality Management
Presented by
Jim Lightfoot
lightfoj@erols.com
Ph: 301-932-9004
Presented at the PMI-CPM 2002 Fall Conference
Prepared by the Washington, D.C. Chapter of PMI

Presenter: James E. Lightfoot PMP 11
Quality Management Review
Part I: Quality Management
1. Quality Planning:
inputs, tools/techniques, outputs
2. Quality Assurance
3. Quality Control
Part II: Other Sources

Part I:
Quality Management Review

Quality Management
• Project Quality Management includes the
processes required to ensure that the
project will satisfy the needs for which it
was undertaken. It includes “all activities
of the overall management function that
determine the quality policy, objectives,
and responsibilities, and implements
them by means such as quality planning,
quality control, quality assurance, and
quality improvement, within the quality
system” 1
1. International Organization for Standardization. 1993. Quality—Vocabulary (Draft
International Standard 8402). Geneva, Switzerland: ISO Press.

Definitions
• Quality is:
– ♦ The totality of characteristics of an
entity which bear on its ability to
satisfy stated or implied needs. 2
– ♦ Conformance to requirements and
fitness for use.3 (The project must
produce as proposed and satisfy a real
need.)
• Quality is not:
– Excellence, luxury, prestige, or grade
2. International Organization for Standardization. 1993. Quality—Vocabulary (Draft
International Standard 8402). Geneva, Switzerland: ISO Press.
3. PMBOK

Other Definitions of Quality
• A product or service's nature or
features that reflect capacity to satisfy
express or implied statements of need
(Deming)
• Conformance to requirements
(Crosby)
• Fitness for purpose or use (Juran)
• Product and service characteristics as
offered by design, marketing,
manufacture, maintenance and service
that meet customer expectations
(Feigenbaum)
Quality/ PM Complements
• Customer Satisfaction
• Prevention Over Inspection
• Management Responsibility
• Processes Within Phases

COMPATIBILITY
• The basic approach of PMI to quality
management is intended to be
compatible with the International
Organization for Standardization (ISO)
as detailed in the ISO series of
standards and guidelines. The PMI
approach is also compatible with
proprietary approaches to quality
management such as those
recommended by Deming, Juran,
Crosby, et al, and non-proprietary
approaches such as TQM.
Quality Management Philosophies
Deming Juran Crosby PMI
Definition Conform to Fitness for use Conform to Conform to

Specs Requirements Requirements
System Prevent Prevent Prevent Prevent
Standard Minimize cost Minimize cost Zero Defect Zero Defect

of QM of QM
Measure Direct Cost of Quality Cost of Non Cost of Non
Measure Conformance Conformance
Manager Leadership Leadership Leadership Leadership
Participation Participation Participation Participation
Role
Worker Maintenance Moderate Moderate High Level
Improvement Involvement Involvement Involvement
role

Philosophical Similarities
• Management Support
■ Top management support and
commitment are essential.
■ Most problems associated with quality
can be attributed to management
policy, action or inaction
■ Implementation is applicable to any
organization
■ Effective communication and teamwork
at all levels are essential.

Philosophical Similarities (Cont.)
• Measurement
■ Measurement is critical.
■ Improvements are not viewed in terms
of final products

Philosophical Similarities (Cont.)
• System and Standard

■ Zero defect / Post-production
inspection needs to be minimized.
■ Education and training must be
continuous.
■ Managers need to provide workers with
the means to do a good job..
■ There are no shortcuts to quality The
pursuit of quality must be a continuous
effort.
■ Suppliers must be involved in the
quality effort.

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 Non-
Conformance”

How Much Quality is Enough?
• Ideally, the objective is to
manufacture parts identical to each
other. However, there are
conditions that create
uncontrollable variances.
• Unit-to-unit differences usually
follow a normal distribution called a
Bell Curve.
• The standard deviation (Sigma) is a
measure of variance. As the value
of Sigma decreases, variance is
reduced.
✦ Traditionally, a process was
considered satisfactory if it was
within a 3 Sigma capability. Upper
limit at 3 Sigma to the right of the
mean and the lower limit at 3
Sigma to the left of the mean.
✦ This represented 99.73 of the total
area under the curve that
represented the total population of
products produced.

Normal Curve Distribution
One Sigma
Two Sigma
Three Sigma

✦ What would you get if 99.9% was
good enough?
✦ 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.
✦ 86 seconds without electrical power
daily.
✦ Today, the Traditional 3 Sigma
process capability is not always
good enough.
✦ Motorola began a “new quality
control standard”, i.e. the 6 Sigma
process capability with variances so
small that there will only be 0.002
defects outside the control limits
for every million units produced.
The elusive “Zero Defects” goal is
continually pursued.
The 5 PMI Process Groups
Where does Quality fit in?

PMI Process Groups (Flow)
Initiating Planning
Processes Processes
8.1 QP
Controlling Executing
Processes 8.3 QC Processes 8.2 QA
Closing
Processes

Quality Processes
• Quality Planning – Plan
• Quality Assurance – Do
• Quality Control – Check

PMI Project Planning
Processes

Planning Processes
CORE PROCESSES
6.2 Activity
Sequencing
6.4 Schedule
5.2 Scope Development
6.1 Activity
Planning Definition 6.3 Activity
Duration Est.
7.3 Cost
Budgeting
5.3 Scope
7.1 Resource
Definition
Planning 7.2 Cost 4.1 Project Plan
Estimating Development
FACILITATING PROCESSES
8.1 Quality 10.1 Communications 11.1 Risk 11.2 Risk 11.3 Risk Response
Planning Planning Identification Quantification Development
9.1 Organizational 9.2 Staff 12.1 Procurement

12.2 Solicitation
Acquisition Planning
Planning Planning

Planning Process Flow Chart
6.2 Activity
Sequencing
6.4 Schedule
5.2 Scope Development
6.1 Activity
Planning
Definition 6.3 Activity
Duration Est.
7.3 Cost
Budgeting
5.3 Scope
7.1 Resource
Definition
Planning 7.2 Cost
Estimating 4.1 Project Plan
Development
h Shows the steps of a process.
h Shows precedencies and dependencies between
activities.

Quality Planning (8.1)
• Quality Planning (8.1) -

identifying which quality
standards are relevant to the
project and determining how
to satisfy them.

Quality Planning
Inputs

Quality Planning - Inputs
• Company Quality Policy: overall intentions
and directions with regard to quality.
• Scope statement: deliverables and project
objectives that define stakeholder
requirements.
• Product description: technical requirement
and other concerns that may affect quality
planning.
• Standards and Regulations: as they apply.
• Other Process Outputs: inputs from other
knowledge areas including procurement
planning, risk planning, etc.
Quality Management Framework -
Key Concepts
• Definition of Quality:
■ Conformance to requirements /
specifications
• Responsibility (Everybody’s)
■ Management & Line Organization
■ Team & individual for the work at hand.
• Ownership
■ Project Manager - the ultimate owner!

Customer Expectations (“ilities”)
• Producibility
The ability to produce a product with available
technology, at a cost compatible with market
expectations
• Usability
The product is fit to perform the expected
purpose for which it was designed
• Reliability
Probability that the product will perform its
required functions under stated conditions for a
specified length of time
• Availability
Probability that the product will perform under
given conditions when called on

Customer Expectations (“ilities”)
• Maintainability
Ability of a unit to be restored to a specified state
within a given period of time
• Flexibility
Ability of a product to be used for different
purposes, at different capacities and under
different conditions
• Acceptability
Degree of conflict between the characteristics of a
product and the prevailing value system of society
• Operability
Degree to which a product can be safely and
easily operated

Quality Team Member Actions
• Customers - Set the requirement
• Senior Management - Sets the tone
• Project Manager and Functional
Managers - Select & implement quality
requirements
• Quality Staff - Monitor quality compliance
• Suppliers / Vendors - Meet the specified
quality standards
• Project Staff - Provide quality at the source

Quality Planning
Tools and Techniques

Quality Planning - Tools &
Techniques
• 1. Benefit/cost analysis where quality
is concerned:
– Benefit: less rework, lower final costs,
and in-creased stakeholder satisfaction.
– Cost: expense associated with project
quality management activities and
initiatives.
Key: benefits must outweigh costs

Cost Of Quality
✦ Cost of Quality includes the cost of planning,
quality assurance, quality control, rework/waste
and warranty.
✦ Types of Quality Costs:

– Internal - defect exists in the product prior to shipment.
– External - defect exists in the product after shipment.
– Appraisal - cost incurred to determine the condition of
the product.
– Prevention - costs incurred to reduce failure and
appraisal cost.

Cost of Quality
Conformance Non-Conformance
✦ Planning ✦ Scrap
✦ Training and ✦ Rework
indoctrination ✦ Material cost (additional)
✦ Product Design/Validation ✦ Warranty repairs
✦ Process Validation ✦ Complaint handling
✦ Test and Evaluation ✦ Liability Judgments
✦ Quality Audits ✦ Product recall
✦ Maintenance/Calibration ✦ Field Service
✦ Field Testing ✦ Expediting
✦ Process Corrective
Actions

Techniques
• 2. Benchmarking Objectives:
– Comparing actual or planned project
– practices to those of other projects or
companies.
– Generating ideas for improvements.
– Providing a standard by which to
measure performance.

Techniques
• 3. Flowcharting
– Any diagram which shows how
various elements of a system
relate:
• System or Process flow charts
showing interfaces and how elements
relate.
• Cause-and-effect diagrams (also
called Ishikawa diagrams or fishbone
diagrams)

Cause and Effect Diagram
(Fish Bone or Ishikawa Flow Chart)
Cause Effect
Time Machine Method Material
Major
Defect
Energy Measure People Environ.
✦ Identify major and minor causes for the

defect
✦ Classify in related groups
✦ Visualize the group with the most
causes
Techniques
• 4. Design of experiments
– An analytical technique which
helps identify which variable has
the most influence on the overall
outcome. Used for determining:
• Product improvements such as
selecting the best combination of
parts for a desired feature.
• Project improvements such as cost
and schedule trade-offs

Quality Planning
Outputs

Quality Planning - Outputs
• 1. Quality management plan
– Describes how the management team will
implement quality requirements for the
project.
• 2. Operational definitions:
– They address the required quality control,
quality assurance, and quality
improvements for the project. They
describe, in very specific terms, what
something is, and how it is measured by
the quality control process (metrics).

Quality Planning - Outputs
• 3. Checklists:
– A structured tool, usually for a product
or activity, and used to verify that a set
of required steps have been performed.
• 4. Inputs to other processes such as:
– Special skill requirement.
– Procurement quality requirements.
– Reporting goals and thresholds.

Quality Assurance (8.2)
• Quality Assurance (8.2)—

evaluating overall project
performance on a regular basis to
provide confidence that the project
will satisfy the relevant quality
standards. ( Performed throughout
the project and may be both an
internal function and an external
function).

Quality Assurance
Inputs

Quality Assurance - Inputs
• 1. Quality management plan.

• 2. Results of quality control
measurements, records of
quality control activities that
are in a format for comparison
and analysis.
• 3. Operational definitions.

Quality Assurance

Quality Assurance - Tools &
Techniques
• 1. Quality planning tools and
techniques
– Benefit/Cost analyses,
benchmarking, flow charting and
design of experiments.
• 2. Quality audits
– A structured review of activities on
a continuous basis..
• scheduled or random.
• by trained in-house auditors or third
parties.

Quality Assurance
Outputs

Quality Assurance - Output
• Quality improvements
including:
– New process Initiatives.
– Approval actions.
– Facilitating changes:
• Participation in change request activities.
• Initiating corrective action initiatives.

Quality Control (8.3)
• Quality Control (8.3)—

monitoring specific project
results to determine
compliance with relevant
quality standards and identify
ways to eliminate causes of
unsatisfactory performance.

Controlling Processes
10.3 Performance 4.3 Overall
Reporting Change Control
5.5 Scope 6.5 Schedule 7.4 Cost

Change Control Control Control
8.3 Quality 11.4 Risk

Control Response Control

Quality Control
Inputs

Quality Control - Inputs
• 1. Quality management plan
• 2. Operational definitions
• 3. Checklists
• 4. Work results and forecasts
– Process results and product
results.
– Planned or expected results
(from the project plan).
– Other information about actual
results.
Quality Control Definitions
• Attribute: A characteristic that
reflects. conformance or non-
conformance to specifications and
tolerances.
• Variable: a characteristic that can
be measured in increments.
• Probability: The chance that
something will happen.
– For attributes, it applies to “go” or “no-
go”.
– For Variables, it applies to the chance
of something happening over the entire
range of a distribution curve.
Quality Control

Quality Control - Tools & Techniques
• 1. Inspection ( product reviews,
audits, and walk-through surveys).
– Activities undertaken to
determine whether results of a
single activity or the final product
conform to requirements.
•Measuring
•Examining
•Testing

• 2. Control charts
– A graphic display of results over
time.
•used to determine if the
process is “in control”
•used to collect data on process
variance.
•used to determine cost and
schedule variance.

Remember the Normal Distribution Curve?
One Sigma
Two Sigma
Three Sigma
Process Control Chart
Usually, 3 sigma is set to define tolerance limits so that the control
limit set by customer specifications are not exceeded.
Process “A”
Upper Control Limit 15
10
Upper Tolerance
5
Mean 0
-5
Lower Tolerance
-10
Lower Control Limit -15
Time

Process Control Charts
• The Rule of Seven. Statistically,
whenever there are seven consecutive
process data points measured on either
side of the mean, the process is going
out of control.
• A Process Capability Assessment will use
control charts to determine whether a
process can meet customer
specifications. This is especially
important during planning and cost
estimating when customer requirements
exceed normal plant process standards.
Scatter Diagram
z Plot the results of two variables

z Show trends
z Show distribution around Central tendency
z Highlight Exceptions (out of tolerance
condition)

• 3. Pareto Diagram:
•A histogram, ordered by
frequency of occurrence (80/20
rule).
•Rank ordering is used to focus
corrective action on the most
often occurring problem.
•See page 105 in the PMBOK of
example.

• 4. Statistical Sampling Includes;

– Attribute Sampling: Determining
– the number of acceptable items in a
sample of of products in a given lot and
deciding whether to reject the entire
lot.
– Variable Sampling: Using control charts
to measure variance in a process to
determine the process capability,
determine percent of non-conformance
and make change decisions.

• 4. Statistical sampling (Cont.)
– Special vs Random Causes
– Special --Unusual events
– Random -- Normal process variation
– Tolerances
– Acceptance range (product is
acceptable or not)
– Control limits (process is in or out of
control)

• 5. Flow Charts
– Help analyze how and/or where
problems may occur;
•process flow charts
•procedural flow charts (step
chart)
– Help identify constraints.

Quality Control
Outputs

Quality Control - Outputs
• 1. Quality improvements
• 2. Acceptance decisions
• 3. Rework or scrap decisions
• 4. Completed checklists
• 5. Process adjustments
Part II
Other Sources

Other Sources
• Lew Ireland’s PMI text book on
Quality.
• Deming’s “Out of the Crisis”
• Crosby’s “Quality is Free”

• Juran’s “Handbook on Quality”
• Kerzner’s “Project
Management”
Exam Pointers
✦Points applicable to the Quality
area of the certification exam:
✦Definitions are important
✦Memorize the process charts
✦Memorize the control charts
✦Expect about 15 questions on this
area

Exam Pointers
✦Points applicable to all areas of the
certification exam:
1. Definitions are PMI definitions!
2. Questions addressing
“responsibility”are usually looking
for the project manager.
3. The longest answer is often the
correct answer.

Certification Examination
• Measures knowledge and
understanding of the PMBOK.
• 200 Questions (multiple choice)
– Initiating (needs, charter, etc - 8) - 4%
– Planning (scope, schedule, QP -74)-37%
– Executing (teaming, QA, etc -48)- 24%
– Control (cost, scope, risk, QC -56)- 28%
– Closing (admin/contract closeout-14)-
7%

• Includes situational questions:
– What should be the first step ….?
– What would be the best ….?
– What should the Project Manager ….?
• Includes several questions based on
the same set of facts.
• Includes questions that require
under-standing of Context and
Processes.

• Don’t be intimidated by the exam.
It is fair, regardless of the first-time
failure rate.
– PMI became the first certification
department in the world to be granted
an ISO 9001 and Q9001 certification.
– Examination questions must meet the
standards from the APA (Amer.
Psychological Assn), EEOC, and the
NOCA (National Organ. of Competency
Assurance).
– At least 30 PMPs review each question.

Recent Quality Question Distribution
• Initiating Process: none

• Planning Process
– Quality Planning: 4 questions
• Executing Process
– Quality Assurance: 6 questions
• Controlling Process
– Quality Control: 7 questions
• Closing Process: none

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CPM -100: Principles of Project

Presented at the PMI-CPM 2002 Fall Conference

Prepared by the Washington, D.C. Chapter of PMI

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Deming Juran Crosby PMI

Definition Conform to Fitness for use Conform to Conform to

Standard Minimize cost Minimize cost Zero Defect Zero Defect

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

• System and Standard

Presenter: James E. Lightfoot PMP 1

• Crosby: “Quality is Free” & Zero

• Juran: “The Quality Trilogy” of

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Where does Quality fit in?

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

9.1 Organizational 9.2 Staff 12.1 Procurement

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

• Quality Planning (8.1) -

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

✦ Types of Quality Costs:

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Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Time Machine Method Material

✦ Identify major and minor causes for the

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

• Quality Assurance (8.2)—

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

• 1. Quality management plan.

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Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

Presenter: James E. Lightfoot PMP 1

• Quality Control (8.3)—

Presenter: James E. Lightfoot PMP 1

5.5 Scope 6.5 Schedule 7.4 Cost

8.3 Quality 11.4 Risk