WEEK 12:

PROJECT QUALITY
1
MANAGEMENT
PMI, PMP and PMBOK are registered marks of the Project Management
Institute, Inc.
 QUALITY MANAGEMENT
“Best value” is achieved when systems meet
customer expectations the first time,
with no rework. No more, no less!

Drive “Zero Loss” mentality

throughout the project life
 C ONCEPTS
QUALITY MEANS :
🞆 Customer Satisfaction:
⚫ Conformance to requirements Custom
er
⚫ Fitness for use driven

🞆 Prevention (plan, design and

build in) over inspection -> Custom
Costs reduction er
Satisfac
Quality
Management
Custom
er focus

🞆 Continuous improvement tion

(Kaizen): e.g Plan-Do-Check- Custom

Ack (Shewhart and Deming), er
feedback
&
Lean Six Sigma…. Involve
ment
🞆 Management Responsibility:
Team member + Management
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Customer defines Quality !
 QUALITY CONCEPT
Dimensions of services quality:
1. Tangible
2. Services reliability
3. Responsiveness
4. Assurance
5. Empathy
6. Availability
7. Professionalism
8. Timing
9. Completeness
10. Services with smiles (Pleasure)
 PROCESSES

Initiati Planning Executing Monitorin Closing

ng process group process g& process
proces group controllin group
s g process
group group

Project ∙ Plan Quality ∙ Perform ∙ Control

quality Management Quality Quality
manageme Assurance
nt

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 CAUSE AND EFFECT
DIAGRAM(*)
🞆 Is also called Fishbone Diagram or Ishikawa Diagram
🞆 Used to find the root cause of a defect. The causes are found by
looking at the problem statement and asking “why” until the
actionable root cause has been identified or until the reasonable
possibilities on each fishbone have been exhausted
🞆 Can be used in quality planning, as well as quality control

18
CAUSE AND EFFECT
DIAGRAM(*)

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 5-WHY’S
🞆 Ask “WHY” 5 times
⚫ e.g. Why does it occur? or Why does it exist?

Probable
Symptom 4
Root
Symptom 3 Cause
Why?
Symptom 2 Why?
Why?
Symptom 1
Why?
Why does it
occur?

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 5-WHY’S
Counter-
measure:
We need to
find a
supplier
who can
(5) Why?
deliver ink
(4) Why? We didn't
have at very
The ink
(3) Why? was all enough in short
We ran used up stock, and notice.
(2) Why? out of on a big, we
Problem: printer last- couldn't
Your client The job
minute order it in
is refusing took longer ink. order. quickly
to pay for (1) Why?than we enough.
The anticipated
the leaflets
you delivery .
printed for was late,
so the
them. leaflets
couldn't
be used.

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 CONTROL CHART(*)
🞆 Determine if the process is within acceptable
limits.
🞆 Monitor project performance figures such as cost or
schedule variance

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 CONTROL CHART
🞆 Rule of seven, assignable cause (special cause), out of
control
🞆 Special causes are easier to predict and handle than
common causes

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 FLOWCHARTING
⚫ Determine falling step(s)
⚫ Identify potential
improvement
opportunities

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 CHECK SHEET
🞆 Also called tally sheets are useful as checklists while
gathering data.
🞆 Especially useful during inspections. For example, data about
the frequencies or consequences of defects collected in check-
sheets are often displayed using Pareto diagrams.

25
 HISTOGRAM
🞆 Is a special form of bar chart to show frequencies of causes of problems to
understand preventive or corrective action.
🞆 Unlike the control chart, the histogram does not consider the influence of
time on the variation that exists within a distribution.

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 PARETO DIAGRAM(*)
🞆 The Pareto diagram will
be organized into

STEVBROS - Global PMI R.E.P

categories that measure
either frequencies or
consequences, prioritizes
potential causes of the
problem
• Pareto’s Law (80/20
principle) : 80% of the
problems are due to
20% of cause => helps
focus attention on the
most critical issues
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 SCATTER DIAGRAM(*)
🞆 Plots ordered pairs (X, Y) and are
sometimes called correlation
charts.
🞆 The direction of correlation may be
proportional (positive correlation),
inverse (negative correlation), or a
pattern of correlation may not exist
(zero correlation).

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QUALITY MANAGEMENT SYSTEM

Level 1
Quality
Manual

Policy Level 2
SOP

Work instruction Level 3

Record
Level 4
Proof of achievement of the required quality and
effective application of the Quality System
 Definition

Level 1: Quality Manuals

Document specifying the quality
management system of an organization
Level 2: Policy/Standard operating Procedure
Documents that provide information about how to
perform activities and processes consistently
Level 3: Work Instruction
Documents that provide details guidelines from on
HOWs Level 4: Records
Documents that provide objective evidence of activities
performed or results achieved for continuous
 QUALITY MANAGEMENT
Quality Management Plan
🞆 Projects must establish and document an Engineering and Construction
Quality Management Plan that ensures customer requirements and
expectations are reflected in the project objectives.
🞆 A Quality Assurance Process will be implemented which includes quality verification,
identifies non-conformance to technical specifications, and develops preventative, as
well as, corrective action plans.
🞆 Quality Management Plan applies to all attributes of project management.

In construction industry:
⚫ Mandatory statutory quality requirement
⚫ Customer quality contracted requirements
⚫ Specific requirements of performing organization to meet commercial needs (profit, ROR,
reputation ect..)
All needs to be in balance!
DEMING CIRCLE - PCDA

Act

Plan
Plan

Check

Do
 Quality Management
WHO IS YOUR CUSTOMER
- QUALITY IS A PARTNERSHIP ?
🞆 We’re all customers and
Achieving suppliers
quality 🞆 Everyone has an obligation
🞆 The Customer has
requires a responsibility for quality too
partnership 🞆 Form a quality team to develop
with the KPIs

customer
 CUSTOMER ALIGNMENT?
Requires on-going dialog between “end” customer and team
✔ Review Charter and Scope
✔ Determine what the “end” customer needs to deliver
the business objectives
✔ Align to WHAT the project is to deliver and HOW it will
be delivered
✔ Develop a detailed, written “contract” of what the
customer is expecting and how it is measured
✔ Helps ensure:
✔ Consistency when people change roles and
✔ Quality amid low cost capital environment
 MANAGEMENT RESPONSIBILITY

🞆 Leadership play an important role to Quality

Management
🞆 Success requires the participation of all members of the
project team. Nevertheless, management retains, within its
responsibility for quality, a related responsibility to
provide suitable resources at adequate capacities.
🞆 Just in Time (JIT): just when they are needed or
just before they are needed.
⚫ It forces attention on quality practices.
🞆 Total Quality Management (TQM):
⚫ Company & their employees focus on finding ways to
continuous improve the quality of their business
practices & products.
 QUALITY IMPACTS SCHEDULE & SAFETY

🞆 Quality defects can lead

to rework
🞆 Rework can lengthen
schedule
🞆 Rework is a loss

🞆 Quality defects can lead to

safety incidents:
⚫ During construction execution
⚫ Defects – customer does not
accept – Rework!
⚫ After turnover to operations
 QUALITY IMPACTS COST
Where Does Quality Fit?
Cost Expenditure
High
Feasibility 100%

Conceptual

Definition

Ability to
Influence Cost Design / Construct

Start-Up
Cost Influence

Low
Start Date Need Date
Time
 COST OF QUALITY
.. should be less then..

<

A Guide to the Project Management Body of Knowledge, Fifth Edition (PMBOK® Guide) ©2013 Project Management
Institute, Inc. All Rights Reserved. Figure 8-5 Page 235.
 QUALITY PLANNING
🞆Quality Management provides best value is
achieved by doing “the right things right, the
first time, with no rework.” Quality is a
continuous cycle throughout the project life

Develop Deploy Execute Evaluate

the Quality the Quality the Quality the Quality
Management Management Management Management
Plan - PLAN Plan - DO Plan - CHECK Plan - ACT
 QUALITY PLANNING
🞆 Best value is achieved by doing “the right things right,
the first time, with no rework.”
 QUALITY PLANNING
🞆 Define quality objectives and acceptance criteria
🞆 Define quality system framework of the project
- Audits
- Assessments
- Reviews
🞆 Operation process to be used
- Configuration audits
- Acceptance procedures
- Inspections & Tests
🞆 Quality support activities
- Project performance indicator
- Non-conformance control
- Sub-contractor management
- Etc..
 DEVELOP THE QMP

🞆 Plan for non-conformance resolution

🞆 Establish communication process
🞆 Identify special skill requirements –Rs&Rs
🞆 Plan for construction completion
🞆 Plan the assessment process
 EXECUTE THE QMP
🞆 Select:
⚫ Contractors
⚫ Material suppliers
🞆 Mobilize the contractors
🞆 Execute quality assurance
🞆 Implement quality control
🞆 Manage non-conformance issues
🞆 Monitor quality at Construction
Completion
 EVALUATE THE QMP
🞆 Analyze quality performance
🞆 Assess individual feedback
🞆 Gather and analyze project documentation and
data
🞆 Develop improvement plans
🞆 Develop a job history
🞆 Evaluate the contractor
 IMPACT OF ORGANIZATIONAL STRUCTURE
🞆 Get the right organization in place with the right skills
to assure quality throughout
the project
⚫ Depends on the Execution Approach and Contracting
Strategy
⚫ Who monitors quality?
⚫ How are disputes resolved?
 QUALITY CHALLENGES
🞆 Clear definition of quality
🞆 Contractor skill and availability
🞆 Interface changes (within Engineering and Plant)
🞆 Schedule management
🞆 Change management
🞆 Other?
 PERFORM QUALITY ASSURANCE
🞆 The process of auditing the quality requirements and the results from
quality control measurements to ensure that appropriate quality
standards and operational definitions are used.
• Provides an umbrella for continuous process improvement
• Continuous process improvement reduces waste and eliminates
activities that do not add value
• Increase levels of efficiency and effectiveness
Quality Assurance is performed throughout the project life cycle for
Commitment and Improvement of quality processes

A Guide to the Project Management Body of Knowledge, Fifth Edition (PMBOK® Guide) ©2013 Project Management
Institute, Inc. All Rights Reserved. Figure 8-8 Page 242.

47
 PERFORM QUALITY INSURANCE

Copyright@STEVBROS
STEVBROS - Global PMI R.E.P
A Guide to the Project Management Body of Knowledge, Fifth Edition (PMBOK® Guide) ©2013 Project Management
Institute, Inc. All Rights Reserved. Figure 8-9 Page 242.

48
 QUALITY AUDIT
A quality audit is a structured, independent process to
determine if project activities comply with
organizational and project policies, processes, and
procedures.
⚫ Objectives:
🞆 Identifying Good/Best practices; Shortcomings/Gaps;
🞆 Sharing good practices, Support for implementation
🞆 Documenting lesson learned
⚫ Can be scheduled or random and performed by
Internal or External auditors

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 PROCESS ANALYSIS

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🞆 Process analysis follows the steps outlined in the
process improvement plan to identify needed
improvements.

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⚫ This analysis also examines problems experienced,
constraints experienced, and non-value-added
activities identified during process operation.
⚫ Process analysis includes root cause analysis—a specific
technique used to identify a problem, discover the
underlying causes that lead to it, and develop preventive
actions.

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 LEAN

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🞆 Lean goals are:
⚫ Eliminate waste and non-value-added activity

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⚫ Improve quality: understand customers' wants and
needs and design processes to meet their expectations
and requirements.
⚫ Reduce time: most effective way to finish an activity

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 8 WASTES

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D.O.W.N.T.I.M.E
• Error or mistake lead to rework, scrap
Defect • Incorrect information,

Overproduction • Too much products/information those are more

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than needed or far ahead of schedule

Waiting • Waiting for the next production step/information

• Interruptions of production during shift chang

Non-utilized skills • Underutilization of people’s knowledge, talents

and skills
Transportation • Unnecessary travel or movement of
material/goods
Inventory • Materials, Parts, Goods
• Excessive Multitasking
Motion • Needless moving or walking of people or
equipment
Excess processing • Unnecessary action
• Overshooting requirements
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 VALUE-ADDED ACTIVITY

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🞆 The opposite of waste is value-added
⚫ The customer must be willing to pay for the activity

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⚫ The activity must change the “form, fit, or function” of the
product, making it closer to the end product that the customer
wants and will pay for
⚫ The activity must be done right the first time.

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 QUALITY ASSURANCE
🞆 Comprising the implementation of quality system,
performing quality assurance activities, document
performance measurement and project records
🞆 Quality Assurance aims to assure high quality project
performance and system work for a continuous
improvement
🞆 Project QA activities:
- Project milestones review
- Project audits
- Project performance monitoring and measurement
- Project evaluation, esp. before project close out
 PERFORM QUALITY ASSURANCE
INPUTS
🞆Project management plan
• Quality management plan: provides how quality
assurance will be performed within the project
• Process improvement plan: details the steps for
analyzing processes to identify activities which
enhance their value
🞆Quality metrics: an operation definition describes
a project or product attribute and how the quality
control process will measure it in detail.
• Used in the quality assurance and quality control
processes
 PERFORM QUALITY ASSURANCE
INPUTS
🞆Work performance information
• Performance information from project activities is
routinely collected as the project progresses.
• Performance results may support the audit process:
🞆Technical performance measures
🞆Project deliverable status
🞆Schedule progress
🞆Costs incurred
🞆Quality control measurements: are the results of
quality control activities, used to analyze and
evaluate the quality standards and processes of
the performing organization
 PERFORM QUALITY ASSURANCE
TOOLS AND TECHNIQUES
🞆Quality Audit: is a structured, independent
review to determine whether project activities
comply with organizational, and project policies,
processes, and procedures.
🞆The objectives of a quality audit are:
• Identify all the good/best practices being
implemented
• Identify all the gaps/shortcomings
• Share the good practices
• Proactively offer assistance in a positive manner
• Highlight contributions of each audit in the lesson
learned repository of the organization
 PERFORM QUALITY ASSURANCE
TOOLS AND TECHNIQUES
🞆Process analysis: follows the steps outlined in
the process improvement plan to identify
needed improvements.
🞆Process analysis includes root cause analysis – a
specific technique to identify a problem, discover
the underlying causes, and develop preventive
actions
 PERFORM QUALITY ASSURANCE
OUTPUTS
🞆Organization process assets update
🞆Change requests: can be used to take
corrective action or preventive action or the
perform defect repair.
🞆Project management plan updates: include,
but are not limited to
• Quality management plan
• Schedule management plan
• Cost management plan
🞆Project document updates
• Quality audit reports
• Training plans
 PERFORM CONTROL QUALITY
🞆 The process of monitoring and recording results of executing
the quality activities to assess performance and recommend
necessary changes.
⚫ identifying the causes of poor process or product quality
and recommending and/or taking action to eliminate them
⚫ validating that project deliverables and work meet the requirements
specified by key stakeholders necessary for final acceptance.

A Guide to the Project Management Body of Knowledge, Fifth Edition (PMBOK® Guide) ©2013 Project
Management Institute, Inc. All Rights Reserved. Figure 8-11 Page 248.
60
 QUALITY CONTROL
🞆 Comprising project performance monitoring if they comply
with agreed quality standard, required corrective action for
non-conformance and to ensure the project quality will not
be negatively impact by changes during project execution.
🞆 Project QC activities:
-Project outcome monitoring and quality reporting.
-Quality control in operation process
-Quality change control
 PERFORM CONTROL QUALITY

A Guide to the Project Management Body of Knowledge, Fifth Edition (PMBOK® Guide) ©2013 Project
Management Institute, Inc. All Rights Reserved. Figure 8-11 Page 249.
62
 DELIVERABLES, CRS,
AND CONTROL QUALITY PROCESS

CR Approved Validated
CR CR
Perform Control Monitor and
Integrated Control
Change Project Work
Control Quality

Verified Accepted
Deliverables
deliverables deliverables

Direct and Control Validate Close

Manage Project
Execution Scope Project
Quality 63
 PROJECT TRIANGLE
Scope of
Work

Scop
AFFORDABILITY
e
NEED DATE

Sc

et
he u

dg
d le

Bu
Schedule Estimate

Team
Synergy
Scope, Budget and Schedule Summary 64