Four core project quality concepts

CONTEMPORARY PROJECT MANAGEMENT, 4E

Timothy J. Kloppenborg

Vittal Anantatmula

Kathryn N. Wells

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Project Quality Planning & Project Kickoff

Chapter 12

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Chapter 12 Core Objectives:

Define each core project quality concept & explain why each is vital

Explain what may be included in a project quality management plan

Compile a complete project management plan, including all parts covered in the last several chapters

Chapter 12 Technical Objectives:

Baseline your complete project plan in Microsoft Project

Chapter 12 Behavioral Objectives:

Describe the major contributions to contemporary project quality made by each of the quality gurus and by TQM, ISO, & Six Sigma

Kick off a project with effective pre-meeting preparation, a kickoff meeting, & documentation

Develop a quality-conscious approach to managing project activities & decisions

General Tool Company

“In short, for GTC, proper quality planning is more than good project management—it is a matter of survival!... it is imperative for the subcontractor to understand all quality and technical performance requirements prior to beginning the manufacturing process. Failing to do so can erode profit margins, damage customer relationships, and negatively impact the performance of highly engineered projects.”

6

Project Quality Management

All the necessary work to ensure the project deliverables satisfy their intended purpose.

The first step in project quality management is plan quality management.

May be performed simultaneously with other aspects of project planning

Plan quality management – “the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance.” ~PMBOK® Guide 6th Edition

Quality is planned at a high level for the entire project at the outset and at a detailed level just before the start of each iteration.

Development of Contemporary Quality Concepts

Quality Gurus

Total Quality Management/Malcolm Baldrige

ISO 9001:2008

Lean Six Sigma

Quality Gurus – W. Edwards Deming

Understanding variation is essential to improving quality

It is important to understand how companies operate as systems

Managers need insight in order to accurately predict the future

Leaders need to understand individual motivations

Developed a system of profound knowledge based on these ideas

Deming’s Profound Knowledge System

Quality Gurus – Joseph Juran

Introduced the Quality Trilogy, which serves as basis for PMI’s quality planning, control, & assurance

Other Project Quality Pioneers

Breakout Session!

How do the ideas of the “quality gurus” apply to real organizations? Identify specific good and bad/missing examples you have seen.

Total Quality Management/Malcolm Baldrige

In 1980s it was evident that inspection was not an adequate means of discovering quality problems

Core concepts of TQM (total quality management) evolved into criteria for the Malcolm Baldrige National Quality Award

Include concepts such as leadership, customer focus, learning, partnership, innovation, & managing by facts

Baldrige National Quality Award – Key Areas and Specific Criteria

p. 390 in textbook

ISO 9001:2015

A quality framework developed in Europe

Developed by the International Organization for Standardization

ISO 9001 is the quality management standard

2015 represents the latest revision of the standard

Originally focused on technical standards in documenting work processes

Evolved into a comprehensive set of principles

ISO 9001:2008 Areas & Specific Responsibilities

p. 391 in textbook

Lean Six Sigma

Sigma stands for standard deviation – a statistical term for the amount of variation in data

Quality problems are measured in parts per million opportunities

Rigor of statistics in Six Sigma is not always applicable

Six Sigma uses a disciplined process DMAIC to plan and manage improvement projects

DMAIC Methodology

A 15-step process broken up into 5 project phases

DMAIC is a continuous circular flow used as a method of implementing continuous improvement

Define

Measure

Improve

Analyze

Control

The DMAIC Methodology

Breakout Session!

How do (or could) the various frameworks discussed—Malcom Baldridge, ISO, Lean Six Sigma—apply to an organization you are familiar with?

Core Project Quality Concepts

When defining quality, you must consider the following perspectives:

Product—presence of desired attributes

Value—ratio of benefits to price

Manufacturing—consistency in goods & services

Customers—ability to satisfy given needs & expectations

Four Contemporary Core Project Quality Concepts

Stakeholder Satisfaction

Process Management

Fact-Based Management

Empowered Performance

1. Stakeholder Satisfaction

Identify all stakeholders

External stakeholders – customers, suppliers, the public

Internal stakeholders – shareholders and workers at all levels

Determine relevant quality standards

Understand ultimate quality goals with respect to stakeholders

PM may facilitate a process in which important stakeholders use the quality standards to judge the project process & deliverables

Developing Quality Standards Based Upon Stakeholder Requirements

Identify all stakeholders

Prioritize among the stakeholders

Understand the prioritized stakeholders’ requirements.

Develop standards to ensure the requirements are met.

Make tradeoff decisions.

Stakeholder Satisfaction Sayings

“Measure twice, cut once.”

“Meet requirements, but exceed expectations.”

“A smart project manager develops capable customers.”

Communicate often (maybe daily) with the owner and other stakeholders

2. Process Management

To effectively manage project processes, PMs need to understand, control, & improve them

Process Understanding with a SIPOC Model

Process Control

Process Improvement with a PDCA Model

process – a sequence of connected activities whose goal is to produce a good, service, or specific result

Process Understanding with a SIPOC Model

All work flows from suppliers, through the project, to customers

Use a supplier-input-process-output-customer (SIPOC) model to envision this flow

Think backward from the project’s customer

Determine if the process is capable of creating project deliverables

Design quality into the processes

PDE Deliverable Analysis Functional Model (based on SIPOC)

Breakout Session!

Using Exhibit 12.7 as a reference, construct a SIPOC model for your project and use it to discuss where your process is most vulnerable, as well as how to build quality into your project.

Process Control

In order to have confidence that outputs are predictable:

Establish standards

Measure actual performance

Calculate difference between standards & performance (variance)

Strive to reduce unwanted variance

Covered further in Chapter 14

Process Improvement with a PDCA Model

Processes can be improved in a continuous or breakthrough fashion

Slow and steady improvement is a good foundation

Substantial improvement requires a breakthrough

Models based on scientific method exist to guide the improvement process

Commonly used models include the DMAIC used by Six Sigma or the Plan-Do-Check-Act (PDCA) model

Plan-Do-Check-Act Model

3. Fact-Based Management

Opinions get in the way

Project decisions may need to be made quickly

Taking just enough time to get the facts often yields better results

Four Aspects of Fact-Based Management

Understanding variation

Deciding what to measure

Working correctly with data

Using the resulting information appropriately

Understanding Variation

Common cause vs. special cause

Large majority of variation is due to common causes

Within the range of what can be expected

Common Cause

Something unusual is happening

SPECIAL Cause

Determining What to Measure

Avoid not measuring anything

Avoid measuring many things just to be sure

Refer to lessons learned from previous projects

Acceptance criteria from milestone schedule is a good starting point

Agree on what measures, when, & under what circumstances

Quality metric – what to measure (and how) to ensure customer satisfaction

Working Correctly with Data

Devise simple methods of collecting & analyzing data

The person closest to the situation should collect the data

Ensure data are complete, accurate, timely

Turn raw data into information useful to decision makers

Using the Resulting Information Appropriately

Encourage truth and transparency in communications

Use information to challenge opinions and decisions

Project communication plan outlines how to share information

4. Empowered Performance

Have capable and willing workers at every level/function within a company

Corporate leaders develop the organizational culture

Project sponsors & managers develop the project culture

Empowered Performance

Recognize individuality

Projects benefit greatly from diversity in workforce

PM should discuss one-on-one individual’s goals for project

Capitalize on individual strengths

Emphasize individual responsibilities

Use appropriate collaboration/share learning

Breakout Session!

Refer to Exhibit 12.12 on p.402 of your textbook. Within each of the four core project quality concepts, which specific guidance do you feel is most critical? Why? How will you incorporate it into your project?

Plan Quality Management

Quality Policy

Quality Management Plan Contents

Quality Baseline

Process Improvement Plan

Quality management plan – a component of the project management plan that describes how the project will perform in accordance with the quality policy.

Quality Policy

Concise statement from top management to guide quality efforts. May include:

Reference to customers

Improving processes

Satisfying requirements

Products and services

Value to customers

Cost control

Quality Policy

Quality Management Plan Contents

The project’s overall quality objectives

Key project deliverables & the standards to evaluate each

Deliverable completeness & correctness criteria from customer’s viewpoint

Quality control activities

Quality assurance activities

Qualities tools

Quality roles & responsibilities

Quality reporting plan

Quality Baseline

Reflects agreed-upon quality objectives

Include metrics

What will be measured

How it will be measured

The target value

Process Improvement Plan

A definition of “done” is explicitly stated

Details how to analyze work processes with an eye towards improving them

Manage Quality

Perform Quality Assurance—an executing process that deals with process improvements and ensuring that deliverables are free of errors.

The process of using the quality plan and policy to perform tasks that will most likely lead to creating project outputs to customers’ satisfaction. A key component of Manage quality is forward-looking quality assurance.

Two main methods of Quality Assurance

Quality audit—used to determine what methods are being used and whether they are effective

2. Process analysis—used to improve both quality & productivity

Quality Assurance

Quality audits often lead to one or more of the following recommendations:

Preventive actions—taken to ensure future performance is acceptable

Corrective actions—intended to bring performance back into alignment with baseline

Defect repair—judgment needed to decide whether to repair or scrap & re-make

Process analysis– breaking processes down into steps in order to determine ways to increase overall efficiency

Quality Assurance

One common type of process analysis is benchmarking, which consists of the following:

Control Quality

Test whether specific project deliverables meet their quality standards

Includes inspection of inputs, activities, deliverables, & a reporting system

Agile creates & manages quality in small batch sizes; Agile projects may

allow for more variability in quality processes—achieving a Minimum

Viable Product (MVP)—in exchange for speed to market

Control quality – the activities used to verify that deliverables are complete, correct, & acceptable; the purposes of control quality are to improve project processes & outputs, as well as to reduce the number of defects and inefficiencies.

Quality Control Terms *See definitions in textbook, pp.407-408

Cost of Quality

Cost of Quality =

cost of conformance + cost of nonconformance

Develop Project Management Plan

Resolve Conflicts

Establish Configuration Management

Apply Sanity Tests to All Project Plans

The Project Management Plan is composed of all subsidiary plans discussed in Chapters 5-11. They should be compiled into one comprehensive, practical plan

Resolve Conflicts

Different people may have developed different sections of the project plan, and while the components may look good individually, do they fit well together?

Establish Configuration Management

It takes hard work to control the project (& products)

Establish a configuration management system

Configuration management system – composed of four parts:

Process for identifying and uniquely naming items to be controlled

Activity of managing project deliverables and documentation

Recording and reporting all changes

Verifying the correctness of all deliverables and their components

Apply Sanity Tests to all plans….is this practical?

Does the critical path look reasonable?

Do the milestones look achievable?

Are some resources over allocated?

Does everyone understand what they are supposed to do?

Do we really understand our customers?

Are the customers’ desires likely to change?

How well do we understand the standards we will be judged against?

Are the methods for completing our work really sensible?

Are we confident we can gather and analyze the data we need to control this?

Kickoff Project

A formal kickoff gives stakeholders a chance to see how everything fits together

Convinces project stakeholders that the project leaders will be good stewards of assets

All interested parties are eager to commit to the project and get on with the work

Preconditions to Kickoff Meeting Success

Sponsor and PM set clear direction during the planning.

Core team commits to the project first.

Create an atmosphere of trust and relationship-building

Project leaders practice active listening

Include as many as possible in planning to enhance buy-in

Meeting Activities

Sponsor, PM, and core team will each present at the meeting to ensure everyone knows enough about to the project & to enhance the status of the participants

Formality of kickoff meeting can vary greatly depending on size & type of project

Should include signing the charter

For list of more possible activities & example agenda, see textbook pp.411-412

Agile projects have a large meeting every planning cycle, which is similar to a kickoff meeting

Baseline and Communicate Project Management Plan

A baseline is the approved plan

A project plan becomes official when enough info is available for key stakeholders to commit to and baseline the plan

The majority of planning is done and the majority of executing is just beginning

Using MS Project for Project Baselines

Before creating a baseline, verify the following from previous planning:

QA and QC activities are included.

Risk response plan activities (or duration compensation) are included.

Performance posting activities are included.

All “hard” date constraints are incorporated.

A realistic start date is chosen.

Resource overloads are addressed.

Organizational holidays & resource vacations are entered.

Resource allocations are realistic.

Management and contingency reserves are in the schedule.

Time and cost tradeoffs are applied to the schedule.

Baseline the Project Plan

Once project execution begins, the actual values of inputs will begin to vary from the planned values. MS Project will track the variance between baseline and actual values to help you understand project performance

Create the First Time Baseline

Project Tab>>Schedule Groups>>click Set Baseline

Subsequent Baselines

Select the changed or added activities, milestones, and WBS elements.

Click Project tab>>Schedule Group>> click Set Baseline, then click Set Baseline…

3. Ensure original baseline is selected in drop-down menu under “Set Baseline”

4. Click Selected tasks, check To all summary tasks

5. Click OK.

If a change is approved, the tasks must be re-baselined, using the following steps:

Subsequent Baselines

Reasons to change the baseline:

Changes to the project scope

Project delay or restart

Unavailability of planned resources

Slower cash flow than planned

Occurrence of risk events

Quality problems

Viewing Baselines and Variances *See Exhibit 12.18, p.416 in textbook

To display variances in Gantt View:

Click View Tab>>Task Views>>Gantt Chart

Click the Format Tab>>Bar Styles Group>>Baseline>>click the Baseline you want to view

To view actual and baseline values side-by side:

Click the View Tab>>Task Views>>click Other Views>>Task Sheet

In the Data Group>>Tables>>Variances

Summary

The contemporary approach to project quality draws on contributions of Deming, Juran, & others

The Malcolm Baldrige award, ISO certification, & Six Sigma provide quality frameworks

The quality plan should include the quality baseline, which defines performance expectations

Once the quality plan is complete, hold a kickoff meeting with all project stakeholders

The kickoff meeting signifies the official end of planning and beginning of the project execution stage

Summary

First concept in contemporary project quality  stakeholder satisfaction.

Understand project stakeholders

Prioritize stakeholder needs

Manage toward stakeholder needs

Keep the relationships strong

Strive to ensure the customer is capable of using project deliverables.

Summary

Second concept  process management

Understand forms of improvement

Seek the root cause of problems

Use an appropriate model to guide improvement efforts (DMAIC)

Summary

Third concept  fact-based management.

Understand variation

Make good decisions regarding what to measure

Capture and analyze data correctly

Use information in an open, honest decision-making manner

Summary

Final concept  empowered performance

Capable and willing workers

Treat each person as an individual

Ensure people accept responsibility

Strive for collaboration

In quality management planning, either adopt the quality policy of parent organization or supplement it

Quality Planning at GTC

A Quality Plan Requirements (QPR) document is associated with every project

Performed by the Quality Engineer (QE) during preliminary planning stages

QE may uncover risks unknown to the team

PM IN ACTION

Quality Planning at GTC

GTC uses Quality Improvement Action Plan

QPR process provides an opportunity to validate underling assumptions

PM IN ACTION

PMBOK Exams

Remember is the difference between quality assurance (forward-looking/preventative) and quality control (inspection) & how a quality policy or plan can integrate the two.

Understand how to follow an improvement model such as PDCA or DMAIC and know the difference between common causes and special causes of variation.

Be familiar with the contributions of some leaders in the field of quality—especially Deming, Juran, & Ishikawa.

Know what Six Sigma means, why it is relevant, and be prepared to use its standard deviation formula to determine whether a process is in control or out of control.

Casa de Paz Development Project

What are quality implications for zoning and building codes?

What are quality implications concerning professional standards for various programs?

How would you verify these implications?