PMP Exam Preparation Workshop Project Quality Management 1
Learning Objectives By the end of this session you will understand: The PM Quality Processes The PM Process Groups Project Quality Management Inputs Tools & Techniques Outputs 2
Agenda Introduction Plan Quality Management Perform Quality Assurance Control Quality Sample Exam Questions 3
Introduction to Project Quality Management Experts define Quality based on: Conformance to requirements: Project s processes and products meet specifications. Fitness for use: A product can be used as it was intended. The concept addresses both: Management of the project Deliverables of the project Every project should have a Quality Management Plan. PMBOK 5E Ref #8.0 4
Quality vs. Grade Quality is the degree to which a set of inherent characteristics fulfill requirements. (PMBOK Guide 5th Edition definition glossary). It includes stated and implied needs. Grade is a category assigned to products or services having the same functional use but different technical characteristics. For example, a software product can be of: High Quality (no defects) and Low Grade (a limited number of features), or of Low Quality (many defects) and High Grade (numerous features) PMBOK 5E Ref #8.0 5
Accuracy vs. Precision Accuracy is an assessment of correctness. Accuracy means the measured value is very close to the true value. Precision is a measure of exactness. Precision means the values of repeated measurements are clustered and have little scatter. PMBOK 5E Ref #8.0 6
Project Quality Management The Project Manager and Project Team are responsible for managing the level of Quality and Grade The Project Team must determine appropriate levels of Accuracy and Precision PMBOK 5E Ref #8.0 7
Project Quality Management Modern quality management complements project management by recognizing the importance of: Customer Satisfaction: Understanding, evaluating, defining, and managing requirements to meet customer expectations. The product or service must satisfy real needs. Prevention over Inspection: Quality is planned, designed, and built into the deliverables not inspected in. The cost of preventing mistakes is generally much less than the cost of correcting them when they are found by inspection. PMBOK Ref #8.0 8
Project Quality Management cont d Management Responsibility: Management is responsible for providing the resources needed to succeed. Continuous Improvement: Initiatives such as the plan-docheck-act cycle as defined by Shewhart/Deming; quality initiatives such as TQM and Lean Six Sigma; process improvement models such as Malcolm Baldrige, Organizational Project Management Maturity Model (OPM3); and, Capability Maturity Model Integrated (CMMI). Cost of Quality (COQ): Total cost of conformance and nonconformance work. PMBOK 5E Ref #8.0 9
Project Quality Management Overview PMBOK 5E Ref#Fig 8-1 10
Plan Quality Management Inputs, Tools & Techniques, and Outputs PMBOK 5E Ref # Fig 8-3 11
Plan Quality Management Plan Quality Management process: Identifies quality standards relevant to the project Documents how the project will demonstrate compliance to the quality requirements PMBOK 5E Ref #8.1 12
Plan Quality Management Plan Quality Management process: Key benefit of this process: It provides guidance and direction on how quality will be managed and validated throughout project. Fundamental quality tenet: Quality is planned, designed and built in not inspected in. PMBOK 5E Ref #8.1 13
Plan Quality Management - Inputs Project Management Plan Scope baseline Schedule baseline Cost baseline Other management plans PMBOK 5E Ref #8.1.1 14
Plan Quality Management - Inputs Stakeholder Register Risk Register Requirements Documentation Enterprise Environmental Factors Organizational Process Assets PMBOK 5E Ref #8.1.1 15
Plan Quality Management - Tools & Techniques Cost-Benefit Analysis Cost of Quality (COQ) Seven Basic Quality Tools Benchmarking Design of Experiments (DOE) Statistical Sampling Additional Quality Planning Tools Meetings PMBOK 5E Ref #8.1.2 16
Cost-Benefit Analysis Quality Management must consider cost to benefit trade offs Benefits of quality management include: less rework higher productivity lower costs Increased stakeholder satisfaction Increased profitability Costs of quality management include: All costs associated with Quality Management activities PMBOK 5E Ref #8.1.2 17
Cost of Quality (COQ) Cost of quality includes all costs incurred over the life of the product or service through: Investment in preventing nonconformance to requirements Appraising the product or service for conformance to requirements Failing to meet requirements (rework) PMBOK 5E Ref #8.1.2 18
Cost of Quality (COQ) - cont d There are three types of COQ: Prevention costs Appraisal costs Failure costs/cost of poor quality Internal costs (found by the project) External costs (found by the customer) PMBOK 5E Ref #8.1.2 19
Cost of Quality (COQ) - cont d PMBOK 5E Ref #Fig 8-5 20
Seven Basic Quality (7QC) Tools PMBOK 5E Ref #Fig 8-7 21
Seven Basic Quality (7QC) Tools 1. Cause-and-Effect Diagrams Also known as: Fishbone or Ishikawa Diagram: Illustrates how various factors might be linked to potential problems or effects - helps to better understand a problem and the contributing factors Effective tool for studying processes and situations - leads to better understanding of a process by generating detailed questions about it 22
Seven Basic Quality (7QC) Tools 2. Flowcharts Also known as: process maps Shows activities, decision points and order of processing: Useful to understand and estimate cost of quality in a process Helps anticipate and analyze how, where and what problems may occur 23
Seven Basic Quality (7QC) Tools Flowcharts - SIPOC Model Flowcharts map operational details of procedures that exist within a horizontal value chain of a SIPOC Model PMBOK 5E Ref #Fig 8-6 24
Seven Basic Quality (7QC) Tools 3. Checksheets Also known as tally sheets used to: Organize facts to facilitate the effective collection of useful data about a potential quality problem Gather attribute data while performing inspections to identify defects PMBOK 5E Ref #8.1.2.3 25
Seven Basic Quality (7QC) Tools 4. Pareto Diagrams Special form of vertical bar chart used to identify vital few sources responsible for causing most of a problem s effects Categories on horizontal axis are a valid probability distribution that accounts for 100% of possible observations Frequencies for each cause decrease in magnitude until other accounts for non-specified causes Typically organized into categories that measure frequencies or consequences PMBOK 5E Ref #8.1.2.3 26
Seven Basic Quality (7QC) Tools Pareto Diagrams 27
Seven Basic Quality (7QC) Tools 5. Histograms Special form of bar chart Used to describe the central tendency, dispersion, and shape of a statistical distribution Does not consider the influence of time on the variation that exists within a distribution (unlike the control chart) PMBOK 5E Ref #8.1.2.3 28
Seven Basic Quality (7QC) Tools Histograms 29
Seven Basic Quality (7QC) Tools 6. Control Charts Visually display if the process (measurements) are in control Help to predict trends Main use of control charts is to prevent defects, rather than to detect or reject them The upper control limit and lower control limit are generally +/- 3 sigma around a process mean set at 0 sigma Upper (maximum) and lower (minimum) values are based on contract requirements. The values are set by Project Manager and appropriate stakeholders to reflect the points at which corrective action will be taken to prevent exceeding specification limits. PMBOK 5E Ref #8.1.2.3 30
Seven Basic Quality (7QC) Tools 6. Control Charts To monitor any type of output variable. For example: cost / schedule variations volume and frequency of scope changes errors in project documents Process is out of control if: - Data point exceeds a control limit - Seven consecutive points are above or below the mean When a process is outside acceptable limits, the process should be adjusted PMBOK 5E Ref #8.1.2.3 31
Seven Basic Quality (7QC) Tools Control Chart 32
Seven Basic Quality (7QC) Tools Measurement Control Chart UCL Allowable Range of Variation Mean LCL 0 Time Beyond acceptable ranges 33
Seven Basic Quality (7QC) Tools Measurement Control Chart UCL Allowable Range of Variation Mean LCL 0 Possible problem - 7 points below (or above) the mean known as the Rule of 7 Time 34
Seven Basic Quality (7QC) Tools 7. Scatter Diagrams Aka correlation charts - seek to explain a change in the dependent and corresponding independent variable Dependent variables vs. Independent variables are plotted The plot can depict correlations inverse (negative) proportional (positive) no correlation (zero) If correlation exists, a regression line is calculated to estimate pattern of relationship between two variables PMBOK 5E Ref #8.1.2.3 35
Seven Basic Quality (7QC) Tools Scatter Diagrams Highly Negative Low to Moderate Negative 36
Seven Basic Quality (7QC) Tools Scatter Diagrams 37
Seven Basic Quality (7QC) Tools Scatter Diagrams No correlation Highly Positive 38
Benchmarking Compares actual measurements to those of other projects Provides a basis by which performance can be measured These other projects can be within the performing organization or outside of it and can be within the same or in other application area Allows analogies from projects in different area PMBOK 5E Ref #8.1.2.4 39
Design of Experiment (DOE) Statistical method for products under development Framework for systematically changing elements of a process Helps highlight influencing factors that reveal the presence of interactions and synergy among the factors Helps identify which factors may influence a product variables Helps with optimization of products or processes PMBOK 5E Ref #8.1.2.5 40
Statistical Sampling Involves choosing part of a population of interest for inspection For example, selecting ten engineering drawings at random from a list of seventy-five Sample frequency sizes should be determined for including number of tests, expected scrap etc. (Cost of Quality) PMBOK 5E Ref #8.1.2.6 41
Additional Quality Planning Tools Used to better define the situation and manage quality: Brainstorming Force Field Analysis Nominal Group Technique Quality Management and Control Tools PMBOK 5E Ref #8.1.2.7 42
Meetings Teams hold planning meetings to develop the Quality Management Plan Attendees include anyone responsible for Project Quality Management activities (Project Manager, Sponsor, Team members, Stakeholders) PMBOK 5E Ref #8.1.2.8 43
Plan Quality Management - Outputs Quality Management Plan Process Improvement Plan Quality Metrics Quality Checklists Project Document Updates: Stakeholder Register Responsibility Assignment Matrix WBS and WBS Dictionary PMBOK 5E Ref #8.1.3 44
Quality Management Plan Describes how the project team will implement the performing organization's quality policy Based on requirements, the plan can be: Formal or informal Detailed or broadly framed PMBOK 5E Ref #8.1.3.1 45
Process Improvement Plan Details the steps for analyzing project management and product development processes Facilitates the identification of waste and non-value adding activity The steps are: Process Boundaries - describe the purpose, start, and end of each process Process Configuration - a flowchart of processes with identified interfaces Process Metrics - used to maintain control over status of processes Target for improved performance - guides the process improvement activities PMBOK 5E Ref #8.1.3.2 46
Quality Metrics Metric describes project or product attribute and how the control quality process measures it Measurement actual value of a metric parameter Quality metrics are used in QA and QC processes PMBOK 5E Ref #8.1.3.3 47
Quality Checklists Used to verify that a set of required steps has been performed Used to ensure consistency in frequently performed tasks Generally structured to provide a Yes or No, or N/A answer Designed to ensure all elements in the process or procedure have been completed PMBOK 5E Ref #8.1.3.4 48
Project Documents Updates Project documents that may be updated include, but not limited to: Stakeholder register Responsibility assignment matrix WBS and WBS dictionary PMBOK 5E Ref #8.1.3.5 49
Perform Quality Assurance: Inputs, Tools & Techniques, and Outputs PMBOK 5E Ref # Fig 8-8 50
Perform Quality Assurance Activity to assure the required level of quality is met Often performed by the Quality Assurance Department Key benefit is to facilitate improvement of quality processes Provides an umbrella for continuous process improvement Builds confidence in quality through prevention of defects QA work falls under the conformance work category in COQ PMBOK 5E Ref # 8.2 51
Perform Quality Assurance - Inputs Quality Management Plan Process Improvement Plan Quality Metrics Quality Control Measurements Project Documents PMBOK 5E Ref # 8.2.1 52
Perform Quality Assurance Tools & Techniques Quality Management and Control Tools Quality Audits Process Analysis PMBOK 5E Ref # 8.2.2 53
Quality Management and Control Tools PMBOK 5E Ref # Fig 8-10 54
Quality Management and Control Tools Affinity Diagrams Similar to mind mapping techniques Used to generate ideas that can be linked to form organized thought patterns about a problem Process Decision Program Charts (PDPC) Used as a method for contingency planning Aids in anticipating intermediate steps that derail goal attainment Interrelationship Digraphs Process for creative problem solving in moderately complex scenarios that possess intertwined logical relationships for up to 50 relevant items PMBOK 5E Ref # 8.2.2.1 55
Quality Management and Control Tools cont d Tree Diagrams Known as systematic diagrams Used to represent decomposition structures e.g.: WBS, RBS Useful to visualize parent-to-child relationships Useful as decision trees for establishing expected value Prioritization Matrices Identifies key issues and suitable alternatives to be prioritized as a set of decisions for implementation Criteria are prioritized and weighted before applied to available alternatives to obtain a score that ranks the options PMBOK 5E Ref # 8.2.2.1 56
Quality Management and Control Tools cont d Activity Network Diagrams Known as arrow diagrams Include both the AOA and AON formats Used with project scheduling methodologies: PERT, critical path method (CPM) and precedence diagramming method (PDM) Matrix Diagrams Used to perform data analysis within the organizational structure Seek to show the strength of relationships between factors, causes, and objectives that exist between the rows and columns that form the matrix PMBOK 5E Ref # 8.2.2.1 57
Quality Audits Structured, independent processes that determine if project activities comply with the project s and organizational policies, processes and procedures Identify all good and best practices used and share them Identify nonconformities, gaps and shortcomings Proactively assist to improve implementation of processes to help the team raise productivity Highlight contributions of each audit in the lessons learned repository Once identified, corrective action can be taken PMBOK 5E Ref # 8.2.2.2 58
Quality Audits - cont d May be scheduled or random May be carried out by properly trained in-house auditors or third parties Quality audits confirm the implementation of approved change requests updates corrective actions defect repairs preventive actions PMBOK 5E Ref # 8.2.2.2 59
Process Analysis Analyzes the processes as outlined in the process improvement plan Tries to identify needed improvements from an organizational and technical standpoint Attempts to find the root cause of any issue, so it can be resolved PMBOK 5E Ref # 8.2.2.3 60
Perform Quality Assurance - Outputs Change requests: Recommended corrective actions Change requests can be used to take corrective action or preventive action or to perform defect repair Project Management Plan Updates Quality, Scope, Schedule, and Cost management plans Project Document Updates Quality audit reports, training plans, and process documentation Organizational Process Assets Updates PMBOK 5E Ref # 8.2.3 61
Control Quality: Inputs, Tools & Techniques, and Outputs PMBOK 5E Ref # Fig 8-11 62
Control Quality Control Quality process: uses set of operational techniques and tasks to verify the delivered output will meet the requirements Quality Control activities: identify causes of poor process or product quality and recommend and/or take action to eliminate them PMBOK 5E Ref # 8.3 63
Control Quality - cont d Quality Assurance: used during project planning and executing phases to provide confidence that stakeholder s requirements will be met Quality Control: used during project executing and closing phases to formally demonstrate meeting customer s acceptance criteria PMBOK 5E Ref # 8.3 64
Control Quality Concepts Prevention: keeping errors out of the process Inspection: keeping errors out of the hands of the customer Attribute Sampling: the result conforms or it does not Variable Sampling: the result is rated on a continuous scale that measures the degree of conformity Tolerances: the result is acceptable if it falls within the range specified by the tolerance Control Limits: the process is in control if the results falls within the control limits PMBOK 5E Ref # 8.3 65
Control Quality - Inputs Project Management Plan Quality Metrics Quality Checklists Work Performance Data Approved Change Requests Deliverables Project Documents Organizational Process Assets PMBOK 5E Ref # 8.3.1 66
Control Quality Tools and Techniques Seven Basic Quality Tools Statistical Sampling Inspection Approved Change Requests Review PMBOK 5E Ref # 8.3.2 67
Statistical Sampling (concepts) Statistic: A descriptive measure of some characteristic of a sample (e.g. width or height) Variable: The characteristic being observed Random Sample: A selection of items from a universe in such a way that each item in the universe has an equal probability (chance) of being selected as each sample item is drawn Mode is the most frequently occurring value 68
Statistical Sampling (concepts) - cont d Median is the value of the middle item in a sorted group of items Arithmetic Mean is the sum of the values of a variable divided by the number of values (or average) Range is the difference between the largest and the smallest values of some variable Standard Deviation is the square root of the variance 69
Statistical Sampling (concepts) - cont d Involves choosing part of a population for inspection Appropriate sampling can reduce the cost of quality control Normal Distribution Curve Is the most common tool for measuring variability Indicates the standard deviations The three standard deviations (+3,-3) encompass 99.73% of the area under the curve +1, -1 has a standard deviation of 68.26% 70
Inspection Also referred to as: reviews, peer reviews, audits, and walkthroughs Examination of work products Determine whether they conform to the standards Inspection can be conducted at any level: a single activity the final product the project PMBOK 5E Ref # 8.3.2.3 71
Control Quality Outputs Quality Control Measurements Validated Changes Verified Deliverables Input to verify scope for formalized acceptance Work Performance Information Change Requests Recommended corrective or preventive actions Project Management Plan Updates Quality management plan and process improvement plan Project Document Updates Organization Process Assets Updates PMBOK 5E Ref # 8.3.3 72
Project Quality Management Supplementary Material 73
Quality Influencers 74
Deming s 14 Points to Quality 1. Create constancy of purpose 2. Adopt the new philosophy 3. Cease dependence on inspection to achieve quality 4. End the practice of awarding business on the basis of price tag. Instead, minimize total cost 5. Improve constantly and forever 6. Institute training on the job 7. Institute leadership 8. Drive out fear 9. Break down barriers between departments 75
Deming s 14 Points to Quality 10.Eliminate slogans, exhortations, and targets for the work force asking for zero defects and new levels of productivity. 11.Eliminate work standards (quotas) on the factory floor. 12.Remove barriers that rob the hourly worker of his right to pride of workmanship. 13.Institute a vigorous program of education and self improvement. 14.Put everybody in the company to work to accomplish the transformation. 76
Deming Improvement Cycle Immediate Remedies Future Actions Objectives Methods Act Plan Check Do Against Objectives How Methods Executed Train Execute 77
Dr. Joseph Juran Developed the 10 Steps to Quality Improvement: 1. Build awareness of the need and opportunity for improvement 2. Set goals for improvement 3. Organize to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators) 4. Provide training 5. Carry out projects to solve problems 6. Report progress 7. Give recognition 8. Communicate results 9. Keep score 10. Maintain momentum by making annual improvement part of the regular systems and processes of the company PMBOK Ref #Supp. 78
Dr. Joseph Juran The five attributes of fitness for use : 1. Quality of design (different grades of quality) 2. Quality of conformance (training to keep products in specifications, tolerances motivations) 3. Availability, reliability and maintainability 4. Safety 5. Field use (the way the product will be used by the customer) 79
Crosby s 14 Steps to Quality Improvement 1. Make it clear management is committed to quality 2. Form quality improvement teams with representative from each department 3. Determine where current and potential quality problems lie 4. Evaluate cost of quality and explain its use as a management tool 5. Raise quality awareness and explain its use as a management tool 6. Take actions to correct problems identified through previous steps 7. Establish a committee for the zero defect program 8. Train supervisors to actively carry out their part of the quality improvement program 80
Crosby 14 Steps to Quality Improvement 9. Hold a zero-defect day to let employees realize there has been a change 10.Encourage individuals to establish improvement goals for themselves and their groups 11.Encourage employees to communicate to management the obstacles they face in attaining their improvement goals 12.Recognize and appreciate those who participate 13.Establish quality councils to communicate on a regular basis 14.Do it again to emphasize a quality management program never ends 81
Quality Influencers - Other KAIZEN = Continuous Improvement (these two definitions are equivalent on the exam) JIT (Just in Time) : this is an approach to decrease the amount of inventory that a company carries, thereby decreasing the investment in inventory. A just in time philosophy directs a company to improve quality (forces attention to quality) because extra materials are not available. 82
Quality Influencers - ISO The International Organization for Standardization (ISO) is the world s largest developer of voluntary International Standards. Relevant ISO Standards: ISO 9001:2015 Quality management systems -- Requirements ISO 9000:2015 Quality management systems -- Fundamentals and vocabulary ISO 9004:2009 Managing for the sustained success of an organization -- A quality management approach 83
Quality Influencers - ISO Other relevant ISO Standards - cont d ISO 19011:2011 Guidelines for auditing management systems ISO 14001:2015 Environmental management systems -- Requirements with guidance for use ISO 14004:2016 Environmental management systems -- General guidelines on principles, systems and support techniques 84
Quality Influencers ISO Other relevant ISO Standards: ISO 10006:2003 Quality management systems -- Guidelines for quality management in projects ISO 21500:2012 Guidance on project management (See also: PMBOK Fifth Edition page 463) PMBOK Ref #Supp. 85
PMP Exam Preparation Sample Test Questions Project Quality Management 86
Question #1 Quality assurance should be used during the project s to provide confidence that the stakeholder s requirements will be met. A. executing and closing phases B. monitoring and controlling phases C. planning and executing phases D. planning and closing phases Answer: 87
Question #2 The diagram that identifies the vital few sources that are responsible for causing most of a problem s effects, is called a: A. Pareto diagram B. Bar chart C. Network diagram D. Critical path Answer: 88
Question #3 Accuracy is defined as: A. The degree to which a set of inherent characteristics fulfill requirements B. Consistency that the value of repeated measurements are clustered and have little scatter C. Correctness that the measured value is very close to the true value D. Category assigned to projects or services having the same functional use but different technical characteristics Answer: 89
Question #4 All below are tools and techniques for Perform Quality Assurance EXCEPT: A. Interrelationship digraph B. Tree diagram C. Pareto diagram D. Matrix diagram Answer: 90
Question #5 Quality standards and requirements should be defined in the phase. A. conceptual B. planning C. implementation D. risk identification Answer: 91
Question #6 Major cost categories of quality include all of the following EXCEPT: A. Appraisal B. Prevention C. External failure D. Computer operations Answer: 92
Question #7 Quality control should be used during the project to formally demonstrate customer s acceptance criteria has been met. A. executing and closing phases B. monitoring and controlling phases C. planning and executing phases D. planning and closing phases Answer: 93
Question #8 Control quality tools and techniques include all of the following EXCEPT: A. Flowcharting B. Pareto diagrams C. Control charts D. Estimates of control tendency Answer: 94
Question #9 Grade is defined as: A. The degree to which a set of inherent characteristics fulfill requirements B. Consistency that the value of repeated measurements are clustered and have little scatter C. Correctness that the measured value is very close to the true value D. Category assigned to deliverables having the same functional use but different technical characteristics Answer: 95
Question #10 Perform quality is 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. A. control B. assurance C. improvement D. benchmarking Answer: 96
Question #11 Inputs to control quality process are all of the following EXCEPT: A. Work performance data B. Project management plan C. Quality checklists D. Process improvements Answer: 97
Question #12 One of the fundamental tenets of quality management is that quality: A. Exceeds client expectations B. Does not cost C. Is planned, designed, and built into, not inspected in D. Is assured through careful planning Answer: 98
Question #13 A mind-mapping technique used to generate ideas that can be linked to form organized patterns of thought about a problem: A. Process decision program chart B. Affinity diagram C. Histogram D. Tree diagram Answer: 99
Question #14 All of the following are primary benefit(s) of meeting quality requirements EXCEPT: A. Increased profitability B. Higher productivity C. Stakeholder satisfaction D. Fewer change orders Answer: 100
Question #15 In the quality management discipline, benefits costs. A. equal B. outweigh C. are less than D. cannot be evaluated in relation to Answer: 101
Question #16 "Design of experiments" is a statistical method that helps: A. Determine how various elements of a system interrelate B. Anticipate what and where quality problems might occur C. Identify which factors may influence specific variables of a product or process under development D. Establish a standard by which to measure performance Answer: 102
Question #17 The objectives of a quality audit may include all of the below EXCEPT: A. Identify all nonconformity, gaps and shortcomings B. Share good practices C. Aid in contingency planning D. Highlight audit contributions in the lessons learned repository Answer: 103
Question #18 In statistical control processes, the term control limit identifies... A. results rated on a continuous scale that measures the degree of conformity B. the boundaries of common variation in a statistically stable process C. data contained in the control quality outputs D. a problem, discover the underlying causes that lead to it, and develop preventive actions Answer: 104
Question #19 What does Cost of Quality" mean? A. The sacrifice of unessential project objectives to meet essential quality standards B. The life cycle cost of the project C. The costs incurred to ensure quality D. The cost of meeting project objectives Answer: 105
Question #20 Quality Control measurements A. compare the processes used to create the measurements, and validate actual measurements to determine their level of correctness B. provide an umbrella for continuous process improvement for improving the quality of all processes C. analyze project management and product development processes to identify activities that enhance value D. reduce frequency of schedule overruns Answer: 106
PMP Exam Preparation End of Session Project Quality Management 107