Chapter 8 Quality

Achieve PMP Exam Success PMBOK Guide: A Concise Study Guide for the Busy Project Manager, 3rd
Edition Companion
by Margaret Chu, Diane Altwies and Edward Walker OuterCore Professional Development. (c) 2006. Copying Prohibited.
Reprinted for DINESH PILLAI, BP [email protected] Reprinted with permission as a subscription benefit of Books24x7, http://www.books24x7.com/
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Table of Contents
Chapter 8: Quality ............................................................................................................................1 QUALITY MANAGEMENT.....................................................................................................1 Things to Know................................................................................................................1 Key Definitions.................................................................................................................2 QUALITY PLANNING PROCESS ..........................................................................................2 Quality Management Plan ................................................................................................3 Legal Implications of Quality............................................................................................3 Market Expectations .........................................................................................................4 Responsibility for Quality ..................................................................................................4 Impact of Poor Quality ......................................................................................................5 Prevention Over Inspection ..............................................................................................5 Quality vs. Grade.............................................................................................................5 Cost of Quality ..................................................................................................................5 Quality Training................................................................................................................6 Process Improvement......................................................................................................6 PERFORM QUALITY ASSURANCE PROCESS ...................................................................6 Deming .............................................................................................................................7 Crosby Absolutes of Quality .............................................................................................7 Juran Trilogy....................................................................................................................8 Total Quality Management (TQM) ....................................................................................8 Continuous Improvement Process (CIP) or Kaizan.........................................................9 Taguchi............................................................................................................................9 PERFORM QUALITY CONTROL PROCESS.......................................................................9 Plan for Improvements...................................................................................................10 Case Study Exercise ......................................................................................................12 SAMPLE PMP EXAM QUESTIONS ON QUALITY MANAGEMENT ...................................13 CASE STUDY SUGGESTION SOLUTION ..........................................................................16
Chapter 8: Quality
QUALITY MANAGEMENT
The quality management questions on the PMP certification exam are straightforward especially if you know definitions of terms and understand statistical process control. You are not required to solve quantitative problems but there are questions on statistical methods of measuring and controlling quality. An emphasis on customer satisfaction and continuous improvement is likely to be on the exam; how tools such as Pareto analysis and causeandeffect diagrams are used may also be on the exam. To pass, you must know the differences among the 3 quality processes: quality planning, perform quality assurance and perform quality control. Many organizations use these terms interchangeably; however PMI specifically defines each in terms of the process group in which it is performed. The following chart summarizes the 3 processes as defined by PMI and within the PMP exam. Process Quality Planning Primary Plan Activity Explanation Determine what the quality standards on the project will be and how quality will be measured. Process Planning Group Perform Quality Assurance Implement/Manage Use the measurements to see if the quality standards will be met; validate the standards. Executing Perform Quality Control Measure/Monitor Perform the measurements and compare to specific quality standards; identify ways of eliminating the problem in the future. Monitoring and Controlling
Things to Know
1. The 3 processes of quality management: Quality Planning Perform Quality Assurance Perform Quality Control
2. The contents of a good Quality Management Plan 3. The Legal Implications of Quality 4. Market Expectations regarding quality 5. Where Responsibility for Quality lies 6. The Impact of Poor Quality 7. Prevention Over Inspection
Reprinted for Weblearn/[email protected], BP J. Ross Publishing, OuterCore Professional Development (c) 2006, Copying Prohibited
Achieve PMP Exam Success PMBOK Guide: A Concise Study Guide for the Busy Project Manager, 3rd Edition Companion
8. Quality vs. Grade 9. The concept of Cost of Quality 10. The components of a Quality Training program 11. The importance of Process Improvement 12. What a Quality Audit is and the differences among Deming, Crosby, Juran, TQM, CIP and Taguchi theories of quality 13. The use of Quality Control Tools
Key Definitions
Quality: the degree to which a set of inherent characteristics satisfies the stated or implied needs of the customer. To measure quality successfully, it is necessary to turn implied needs into stated needs via project scope management. Quality Objective: a statement of desired results to be achieved within a specified time frame. In writing objectives, it is important to realize the perspective from which they are being written. For customers, quality is typically defined by the ability of the project's product to be fit for use. From a project perspective, adherence to specifications will define quality. Whether defining objectives from the customer's or the project's perspective, it is important to define goals specifically through stated quality objectives and ensure that they are communicated well and understood by all stakeholders. Quality Policy: a statement of principles for what the organization defines as quality. It does NOT define how quality will be achieved. When organizations create quality policies, they do so to promote consistency, to provide specific guidelines for important matters and to help outsiders better understand the organization. For example, some companies consider quality as the ability to produce products very inexpensively and want to be considered the lowcost leader, while others prefer to offer the most options or features for a higher price. Successful quality policies are drafted by specialists, approved by top management and understood by and adhered to by the entire organization. Warranties: assurance that the products are fit for use or the customer receives compensation. It could cover downtime and maintenance costs.
QUALITY PLANNING PROCESS

Quality planning is included along with all other project planning. Quality planning includes: Identifying which Quality Standards are relevant to the project and determining how to satisfy them Benchmarking past projects to find ideas for improvements and to establish quality performance measures Using Cost Benefit Analysis to compare the benefits and the costs of quality
Flowcharting a process or system to show how various components interrelate (used to help determine potential future quality problems and establish quality standards) Having a Design of Experiments with "what if" scenarios to determine which variables will have the most influence on project outcomes, thereby improving quality
Quality Management Plan

A quality management plan is the output of the quality planning process. It should describe how the project management team will implement its quality policy and will provide input to the overall project plan. A good quality management plan will specifically address each of the following: Design control Document control Purchased material control Material identification and control Inspections Test control Measuring and testing equipment control Corrective actions Quality assurance records Audits Process improvements
PMI does not advocate developing quality policies from scratch. Most organizations have some level of quality policy which can be adjusted to fit the needs of the project.
Legal Implications of Quality

In addition to the benefits organizations gain from implementing quality programs, there are legal considerations that must be addressed when developing the quality management plan: Criminal liability Fraud or gross negligence
Civil liability Criminal or civil liability, even if following orders Lawsuits against the company Appropriate corporate actions
Market Expectations
In determining what preventative measures to take to avoid nonconformance costs, the project manager must take into consideration the market's expectations of the project's product by reviewing the customer's product expectations on the following criteria: Salability: a balance of quality and cost Producibility or constructability: the ability of the product to be produced with available technology and workers at acceptable cost Social Acceptability: the degree of conflict between the product or its process and the values of society Operability: the degree to which a product can be safely operated Availability: the probability that the product, when used under given conditions, will perform satisfactorily. The 2 key parts of availability are: Reliability: the probability that the product will perform, without failure, under given conditions for a set period of time Maintainability: the ability of the product to be restored to its stated performance level within a specified period of time
Responsibility for Quality

The organization as a whole has responsibilities relating to quality, but PMI recommendations may not be what your organization practices. The PMI position is:
Exam Tip
Be sure to read the PMP test questions on responsibility for quality carefully to determine to whom in the organization the question refers.
The project manager has the ultimate responsibility for the quality of the product of the project. (In reality, the project manager may delegate work but must retain responsibility.) The team member has the primary responsibility for quality at the task or work package level.
The primary responsibility for establishing design and test criteria resides with the quality engineer.
Whoever is responsible for quality within an area of expertise must identify quality problems, recommend solutions when problems occur, implement solutions and, if the process is nonconforming, limit further processing.
Impact of Poor Quality

Regardless of the organization, poor quality can result in higher costs to the entity or the customer, less customer satisfaction, lower team morale and greater risk of project failure.
Prevention Over Inspection

For many years, the determination of quality relied heavily on inspection methods. Over the years, it has been determined that the costs of inspection can become so high that it is better to spend money preventing problems from ever occurring. The current views of PMI subscribe to the notion that quality must be planned in and not inspected in. In reaching this conclusion, PMI researched many key quality experts from the past several decades. The exam could include questions on specific theories or experts' opinions
Quality vs. Grade

Quality and grade are different. Grade is a way to distinguish between products with the same functional use but different technical attributes. For example, a Grade 1 bolt has a certain strength while a Grade 3 bolt of the same size is stronger and a Grade 5 bolt is stronger still. The Grade 1 bolt, though of low grade, can still be of high quality (no defects, of proper size, etc.)
Cost of Quality
Conformance is the ability for the product of the project to meet requirements. A project manager has options when planning a project. He or she can implement quality processes to increase the likelihood that the products will meet requirements, or the project manager can inspect the product, determine if it meets requirements and take corrective action if it does not.
Exam Tip
PMI emphasizes that quality should be planned into the project, not inspected in.
PMI advocates the Deming approach, described further below, that says approximately 85% of the costs of quality are the direct responsibility of management. These costs can be broken up into 2 categories: the costs of conformance and the costs of nonconformance. Costs of Conformance Quality training Studies Surveys Validation and audits Costs of Nonconformance Rework Scrap Inventory costs Warranty costs
Costs of conformance can be categorized as preventative, such as the use of highquality parts or appraisals, which assess quality at various stages of the project to increase the likelihood of conformance. Costs of nonconformance can be categorized as internal or external failures.
Internal failures are the costs associated with scrapping or reworking the product before it reaches the end customer. External failures are those that have reached the customer. External failures include costs associated with handling and resolving customer concerns.
Quality Training
Quality does not happen because a plan is created. In order to implement a quality plan successfully, training the organization should be at the top of the priority list.
Process Improvement
PMI emphasizes the importance of continually assessing the gap between the current position of the organization and the desired goals or capabilities to be achieved. This continual activity of planning and implementing processes within the organization to improve is known as process improvement. Therefore, process improvement is an analytical approach that focuses on activities that provide value to the organization. Continuous process improvement provides an iterative means for ongoing incremental improvement of all processes, including project management processes.
PERFORM QUALITY ASSURANCE PROCESS

Quality assurance occurs during the execution phase of the project. It is the process of regular structured reviews to ensure the project will comply with the planned quality standards. This is usually done by means of a Quality Audit. Quality audits are independent evaluations of quality performance to ensure that: Intended quality will be met Products are safe and fit for use Laws and regulations are followed Data systems are adequate Corrective action is taken, if needed Improvement opportunities are identified Quality standards, procedures and methods established during quality planning are reevaluated and are still relevant
A good quality assurance system will:
Identify objectives and standards

Be multifunctional and prevention oriented Collect and use data Establish performance measures Include a quality audit
Deming
W. Edwards Deming is well known for his 4step cycle to improve quality: Plan, Do, Check, Act (PDCA). He also developed 14 activities for implementing quality. For the PMP exam, know some major points of his works: Use participative approach to quality Adopt new philosophy of quality throughout the organization Cease the use of mass inspections End awards based on price Improve production and service Institute leadership Eliminate numerical quotas Emphasize education and training Encourage craftsmanship
Crosby Absolutes of Quality

Philip Crosby is also well known for his books on quality. Similar to Deming, he too developed 14 steps to improving quality. These steps emphasize management commitment, measurement, zero defect planning, goal setting, quality awareness and quality councils. In addition, Crosby stressed 4 absolutes of quality: Quality is conformance to requirements The system of quality is prevention The performance standard is zero defects
The measure of quality is the price of nonconformance
Juran Trilogy
Joseph Juran developed the fitnessforuse concept of quality which emphasizes that the measure of high quality is achieved by ensuring that the product meets the expectations of the stakeholders and customers. Juran's fitnessforuse concept looks at 3 components of quality. These components are known as the Juran trilogy: Quality of design: design may have many grades Quality of conformance: determined by choice of process, training, adherence to program and motivation Quality characteristics: determine the characteristics important to the customer Structural (length and frequency) Sensory (taste and beauty) Time oriented (reliability and maintainability) Ethical (courtesy and honesty)
Juran also established the following trilogy as an approach to improving quality:
Plan: attitude breakthrough, identify vital few new projects Improve: knowledge breakthrough, conduct analysis, institute change Control: overcome resistance, institute controls
Total Quality Management (TQM)

Although there is no explicit definition of TQM, most definitions include providing quality products at the right time and at the right place, thereby meeting or exceeding customer requirements. Kerzner has defined 7 primary strategies for TQM (pages 806 to 809): Solicit improvement ideas from employees Encourage teams to identify and solve problems Encourage team development
Benchmark every major activity in the organization Utilize process management techniques Develop staff to be entrepreneurial and innovative in dealing with customers and suppliers Implement improvements in order to qualify for ISO 9000
Continuous Improvement Process (CIP) or Kaizan

Kaizan is the Japanese word for a sustained gradual change for improvement. It differs from innovation, which consists of sudden jumps that plateau and mature over time before the next jump. The PDCA cycle developed by Deming and described above is the basis for CIP. The Japanese also came up with the concept of providing materials only when they are needed in manufacturing environments. This concept is known as Just In Time (JIT). TQM (also described above) and Six Sigma Initiatives help to improve project management processes as well as project management products.
Taguchi
Dr. Genichi Taguchi developed the concept of loss functions according to which, as variation for the target increases, losses will also increase.
PERFORM QUALITY CONTROL PROCESS

Quality control is performed as part of the monitoring and controlling process group. Quality control involves measurement of the process or performance using quality control tools. It also includes the technical processes that compare and report a project's actual progress with its standard. A good quality control system will: Select what to control Set standards Establish measurement methods Compare actuals to standards Act when standards are not met
Key outputs of the perform quality control process are validated deliverables and defect repair recommendations. Based on these recommendations, corrective actions are performed as part of the direct and manage project execution process group. Corrections are validated again within the perform quality control process through defect repair reviews.
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Plan for Improvements

There are many exam questions on Quality Control Tools. You will need to know the uses and differences in the following tools and techniques. In general, to use these control tools effectively, an agreement must be made on what will be observed, the time frame for observation, the form of the presentation and how the data will be collected. These quality control tools are: Inspections: used after the work is completed; may use Checklists or Data Tables to assist in the measuring, examining and testing activities. Figure 81 shows a sample inspections checklist. Problem A B C Total 1 II I 8 Month 2 3 II I I I II 5 7
Total 5 3 12 20
Figure 81: Sample Inspections Checklist Control Charts: a graphical display of results of a process over time. Figure 82 shows a sample control chart. Control charts include a defined upper and lower control limit, a mean and a visual pattern indicating outofcontrol conditions, such as Outliers (points outside upper [UCL] or lower [LCL] control limits). Control charts that produce particular patterns can provide visual information to the project manager. Some such patterns are: Limit Huggers: a run of points close to control limits Run: a series of consecutive points on the same side of the mean Trend: a series of consecutive points with an increasing or decreasing pattern Cycle: a repeating pattern of points Rule of Seven: a run of 7 or more points above or below the mean indicating adjustment is needed
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Figure 82: Sample Control Chart Pareto Diagrams: a histogram ordered by frequency of occurrence. Pareto diagrams are conceptually related to Pareto's law, which visually shows that 20% of causes produce 80% of defects. Figure 83 shows a sample Pareto diagram.
Figure 83: Sample Pareto Diagram Statistical Sampling: choosing part of a population for inspection for the purpose of accepting or rejecting the entire lot. The results of statistical sampling can be depicted through the use of a variety of charting methods such as histograms, scatter diagrams or Pareto diagrams. Figure 84 on the next page shows a sample histogram created through statistical sampling.
Figure 84: Sample Histogram The advantages of using sampling techniques include less product damage, the ability to make decisions more quickly, fewer expenses and fewer sources. The disadvantage is the possibility of bad decisions due to incomplete information. Here are some sampling definitions: Attribute: characteristic of the product that is appraised in terms of whether or not it exists Variable: anything measured
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Sampling Plan: must include the sample size and the acceptance criteria Producer's Risk: the chance of rejecting a good lot prior to selling to the customer Consumer's Risk: the chance of accepting a bad lot after purchase
Flowcharting: diagrams that show how various elements of a system relate. System or process flowcharts are the most common types of flowcharts. Fishbone Diagrams (also called causeandeffect or Ishikawa diagrams): show how various causes and subcauses relate to create problems or effects. Run Charts: line graphs showing data points plotted in the sequence of occurrence. Used for analysis of trends. Run charts can be used for technical performance such as measuring errors or defects, or cost and schedule performance through the use of earned value techniques. A sample run chart showing trend analysis is shown in Figure 85.
Figure 85: Sample Run Chart Showing Trend Analysis
Case Study Exercise

Exercise 81 Using the data in the table below for the Lawrence RV Garage Project, create a Pareto diagram for the reasons each phase was completed later than planned. What do you think your results indicate? Phase Site Prep Actual Start Variance +4 Actual End Variance +4 +6 +9 Actual Duration Variance Per plan +1 +1 Actual Resources Variance Per plan Per plan Per plan Actual Materials Costs Var Per plan Per plan Per plan Notes Permit delay Rain delay
Foundation +6 Framing +8
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Roughins +12 Roof Exterior Interior Grounds Completion +13
+12 +12
Per plan 1
Per plan Per plan
Per plan Per plan
Materials delay Materials delay Materials delay
SAMPLE PMP EXAM QUESTIONS ON QUALITY MANAGEMENT

Quality Planning Questions 1. The importance of quality compared to cost and schedule in project management can be characterized as which of the following: a. Schedule is most important, quality next and then cost b. Quality is more important than either c. Cost is most important, quality next and then schedule d. All three are equal 2. Where does the primary responsibility for quality management in the project rest? a. Project manager b. Purchasing agent c. Quality manager d. Project engineer 3. The absolutes of quality by Phillip Crosby include all of the following except: a. Award is based on price b. Quality is conformance to requirements c. Performance standard is zero defects
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d. System of quality is prevention 4. According to the PMBOK Guide, quality is: a. Confermance to management's requirements b. Conformance to requirements, specifications and fitnessforuse c. Adding extra to make the customer happy d. Conformance to the customer's needs Quality Executing Questions 5. The concept of making a giant leap forward followed by a period of maturity is called: a. Continuous Improvement Process (CIP) b. Kaizan c. Innovation d. Just In Time (JIT) 6. A project sponsor is not comfortable with the quality level of the project. He instructs the project manager to come up with quality standards and to improve quality. The project manager, however, is concerned about the effect of quality improvements on the project. Which best describes the results of an increase in quality in the long run? a. Reduced productivity and an increase in overall product or service cost b. Reduced productivity and no change to cost effectiveness or cost risk c. Increased productivity, decreased cost effectiveness and increased cost risk d. Increased productivity, increased cost effectiveness and decreased cost risk Quality Monitoring and Controlling Questions 7. A histogram ordered by frequency of occurrence that shows how many results were identified by each identified cause is a: a. Pareto diagram b. Causeandeffect diagram c. Fishbone diagram
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d. Ishikawa diagram 8. ________________is credited with the practice of ceasing mass inspections and ending awards based on price. a. Pareto b. Ishikawa c. Crosby d. Deming 9. During the execution phase of the project, the project manager's company begins to make use of control charts on all its projects. What does a control chart help with? a. Exploring a desired future outcome b. Determining if a process is out of control c. Focusing on stimulating thinking d. Focusing on the most critical issues to improve quality 10. Sample testing of a population should be used when testing the entire population would____________________. a. Be too inexpensive b. Take too long c. Show too many defects d. Be mutually exclusive 11. Standard deviation is: a. A measure of how much time remains in the project b. A measure of how far you are from the mean c. A measure of how correct the sample is d. A measure of how far you are from the average estimate
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12. What is the percentage of 3 standard deviations from the mean? a. 68.26% b. 98.6% c. 95.4% d. 99.7%
Answers
1.
Section numbers refer to the PMBOK Guide. D Planning, see The Triple Constraint in Chapter 2 of this study guide See the triple constraint. A Planning Section 8.0 Quality Management A Planning, see Deming in this chapter Ending awards based on price is part of the theory by Deming. B Planning Section 8.0 Quality Management Quality is the degree to which a set of inherent characteristics fulfill requirements. C Executing, Ireland and see Continuous Improvement Process (CIP) or Kaizan in this chapter Know the meaning of choices A through D. D Executing, see Cost of Quality in this chapter A Monitoring and Controlling Section 8.3.2.5 Perform Quality Control Choices B, C and D are the same and are examples of flowcharting (a method of quality planning). D Monitoring and Controlling, see Deming in this chapter Deming is also mentioned with the PDCA cycle and CIP. B Monitoring and Controlling Section 8.3.2 Perform Quality Control B Monitoring and Controlling Section 8.3.2.8 Perform Quality Control B Monitoring and Controlling Section 8.3 Perform Quality Control D Monitoring and Controlling Section 8.3 Perform Quality Control
2. 3. 4. 5.
6. 7.
8. 9. 10. 11. 12.
CASE STUDY SUGGESTION SOLUTION

Exercise 81: Pareto Diagrams for the Lawrence RV Garage Project 5 4 3 2 1
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Occurrences Materials delay Rain delay Permit delay 5 4 3 2 1 Permit delay Days delayed Materials delay 2 Rain delay Materials delay 1 Materials delay 3
Looking at the Pareto diagram for the reasons for delays, it appears that our materials suppliers cannot seem to get us what we need when we need it. We would need to investigate further to see if this is really a supplier problem or if our project manager is not giving our suppliers enough notice of when materials will be needed.

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Achieve PMP Exam Success PMBOK Guide: A Concise Study Guide for the Busy Project Manager, 3rd

QUALITY PLANNING PROCESS

Quality Management Plan

Legal Implications of Quality

Responsibility for Quality

Impact of Poor Quality

Prevention Over Inspection

Quality vs. Grade

PERFORM QUALITY ASSURANCE PROCESS

A good quality assurance system will:

Identify objectives and standards

Crosby Absolutes of Quality

The measure of quality is the price of nonconformance

Juran also established the following trilogy as an approach to improving quality:

Total Quality Management (TQM)

Continuous Improvement Process (CIP) or Kaizan

PERFORM QUALITY CONTROL PROCESS

Plan for Improvements

Figure 85: Sample Run Chart Showing Trend Analysis

Case Study Exercise

Roughins +12 Roof Exterior Interior Grounds Completion +13

Per plan Per plan

Per plan Per plan

Materials delay Materials delay Materials delay

SAMPLE PMP EXAM QUESTIONS ON QUALITY MANAGEMENT

8. 9. 10. 11. 12.

CASE STUDY SUGGESTION SOLUTION

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