Project Management

Project Quality Management

Dr. Giselher Dombach

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Goals of this session

Presenting the principles of project quality management Explaining the integration of PQM in the corporate TQM system

Dr. Giselher Dombach

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Small problems lead to great disasters

22.06.62

D0 3 I = 1.3 instead of D0 3 I = 1,3 A very small FORTRAN error

Mariner-I was lost just a couple of minutes after launch

04.06.96

A small error in the Ada program

Ariane 5 exploded 39 seconds after the start

Dr. Giselher Dombach

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What is quality?

Quality is ultimately defined by the customer and represents how close the project and deliverables come to meeting the customers requirements and expectations.
TenStep, Inc.

Customers = Internal and external customers

Dr. Giselher Dombach
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The views on quality changed significantly over the last twenty years

The push for higher levels of quality is customer driven

Dr. Giselher Dombach
Source: H. Kerzner, 2003 -5-

The development of the Total Quality Management concept was a paradigm shift

Dr. Giselher Dombach

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What is Total Quality Management (TQM)?

TQM is a philosophy or approach to management that can be characterized by its principles, practises, and techniques. Its three principles are customer focus, continuous improvement, and teamwork. Each principle is implemented through a set of practises, which are simply activites such as collecting customer information or analyzing processes. The practices are, in turn, supported by a wide array of techniques.
J.W. Dean, D. E. Bowen, 1994

Dr. Giselher Dombach

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TQM is not a new management concept

Prior to WWI quality was mainly perceived as inspection 1950s Japanese companies suffered from poor product quality 1960s Strong influence of Deming, Juran Japanese companies adopted the principles of QM 1970s Japanese companies gained worldwide market share while US products had the reputation of bad quality 1980s US companies adopt TQM principles

Dr. Giselher Dombach

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TQM includes various quality management practises

Deming Principles Six Sigma 5-S

Seiban

Hoshin Kanri

Poka-Yoke
Dr. Giselher Dombach
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Kaizen

PQM is an integral part of the companys TQM system ISO 9000

Customer orientation Integrative across functions and business units All employees involved Process quality Product quality Continuous quality improvement

Management has a model funtion Quality is as important as cost and time

Dr. Giselher Dombach

ISO 10000
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Project Quality Management is an integral part of a companys quality management system

Project quality management 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.
PMI, 1996

Dr. Giselher Dombach

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Project quality management has two objectives

Satisfying the needs of internal and external customers by ensuring the quality of the project output

Securing the high quality of the project management process

Dr. Giselher Dombach

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PQM addresses both project management and project outcome

Negative impact of sustainable business performance

Meeting customer requirement

Overworking the project team

Increased employee turnover PM frustration Loss of experience

Meeting project schedule

Rusching or neglecting quality inspections

Product with defects Reduced customer satisfaction

Dr. Giselher Dombach

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The project quality management consists of three modules (I)

Project Quality Management Quality Planning Inputs Quality Assurance Inputs Quality Control Inputs

Tools & Techniques

Tools & Techniques

Tools & Techniques

Outputs

Outputs

Outputs

Dr. Giselher Dombach

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The project quality management consists of three modules (II)

Quality Planning

Identifying which quality standards are relevant to the project and determining how to meet them

Quality Assurance

Evaluationg overall project performance on a regular basis to provide confidence that the project will meet the relevant quality standards

Quality Control

Monitoring specific project results to determine if they comply with relevant quality standards and identifying ways to eliminate causes of unsatisfacotry performance

Dr. Giselher Dombach

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Quality planning identifies the relevant quality standards and how to fulfill them

Inputs
Quality policy Scope statement Products description Standards and regulations Other process outputs

Tools & Techniques

Benefit/Cost analysis Benchmarking Flowcharting Design of experiments

Outputs
Quality managment plan Operational definitions Checklists Inputs to other processes

Project Planning

Source: PMI, 1996

Dr. Giselher Dombach

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The typical quality planning tools can also be found in general project planning

Benefit / Cost analysis

Benefit/cost trade off are considered Satisfying quality requirements means higher customer satisfaction but also additional expenses by PQM activities Comparing actual or planned project paractises with other internal or external projects Analysing the impacts of various elements by using cause-and-effect diagrams and process flowcharts Design experiments or simulations on project managements issues in order to optimize these issues

Benchmarking

Flowcharting

Design of experiments
Dr. Giselher Dombach

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Quality assurance is the implementation of the planned activities of the quality system throughout the entire project

Inputs
Quality management plan Results of quality control measurements Operational definitions

Tools & Techniques

Quality planning tools and techniques Quality audits

Outputs
Quality improvement

Project Conduct

Source: PMI, 1996

Dr. Giselher Dombach

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Quality assurance uses various tools which are also employed in project conduct

Quality Planning Tools

Budget / Cost Analysis Benchmarking Flowcharting

Experiments

Quality Audits

A structured review of other quality management activities It is part of the continuous improvement philosophy by capturing lessons learned that can improve the performance of project management

Dr. Giselher Dombach

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Quality control involves monitoring project results with regard to their fulfillment of quality standards and identifying counter actions

Inputs
Work results Quality management plan Operational definitions Checklists

Tools & Techniques

Inspection Control charts Pareto diagrams Statistical sampling Flowcharting Trend analysis

Outputs
Quality improvement Acceptance decisions Rework Completed checklists Process adjustments

Project Conduct

Source: PMI, 1996

Dr. Giselher Dombach

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Quality control uses typical tools widely applied in TQM (I)

Inspection

Measuring, examining, and testing process results and products

Control Charts

Graphical displays of results over time of certain PM processes

Deviations are spottet early and counter actions can be employed

Pareto Diagrams

Visualizing and analyzing the frequency of occurance by a histogram Rank ordering guides corrective actions

Dr. Giselher Dombach

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Quality control uses typical tools widely applied in TQM (II)

Statistical Sampling

Applying statistical methods in order to choose samples of the products for inspection

Flowcharting

Using flow charts to analyse problems in the PM process

Trend Analysis

Using mathematical models to forecast future outcomes

Dr. Giselher Dombach

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Projects should be guided by the six principles of project quality

Satisfy the needs and requirements of internal and external customers and stakeholders

Management has to ensure continuous improvement

All project tasks are interlinked processes. The PL has to integrate them

Create an environment and climate of quality Concentrate on right product quality to meet the customer requirements
Dr. Giselher Dombach
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Concentrate on process quality

Rule #10

Not all successful managers are competent and not all failed managers are incompetent. Luck still plays a part in success or failure but luck favors the competent hard working manager.

Source: One Hundred Rules for NASA Project Managers

Dr. Giselher Dombach

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Dr. Giselher Dombach

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