qm lecture

8/13/2019 QM Lecture

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Masters in Project Management from SZABIST, Islamabad

Masters in Business Administration ,Peshawar

Certified Project Manager from Project Management Institute (PMI)

Manager Disaster Preparedness and Emergency Response Unit (

Humanitarian Organization )

Zahid Shafiq, PMP

Z a h i d s h a f i q 7 @ G M A I L . C O M0 3 3 3 - 9 2 9 9 2 9 0

Facilitators Introduction

Facilitators Problems

Asks too many questions!

Observes punctuality


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Name

Education

Professional background & experience

Expectations from this course

Participants Introduction


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WHAT IS MEANT BY QUALITY?

Meeting customer requirements & satisfaction

Complying to best practices

Fitness for use

Freedom from defects Meeting Legal Requirements

WHAT IS MEANT BY MANAGEMENT?

Managementin all business and organizational activities is the act of

getting people together to accomplish desired goals and objectives

using available resources efficiently and effectively

Understanding Quality Concepts


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DIFFERENCE B/W QUALITY & GRADE

Quality is fulfilling the customer requirements and grade is the

facilities or features in the product.

"You can choose a low grade product but not low quality

DIFFERENCE B/W PRECISION & ACCURACY

Accuracy is nearness to a target value for measurements or data

Precision is the repeatability of a measurement or data

Understanding Quality Concepts


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Inspection Vs Audit

An inspection is an evaluation or assessment on products, itinvolves measurements or tests to conform the product to

meet the specified requirements and standard.

An Audit is an evaluation on organization, system, process,project or production line.

Checking thickness of a rod

Validating the shirt cutting methodology

Weighing the cement bag

Verifying cupboard dimensions

Review of on-line ticket purchasing

Interview and selection for IT job


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Discipline Explanation of Quality

Airlines On-time, safety, comfortable, low-cost service

Health CareCorrect diagnosis, minimum wait time, lower cost,

security

Postal Services faster delivery, correct delivery, cost containment

AcademiaProper preparation for future, on-time knowledge

delivery

Consumer

ProductsProperly made, defect-free, cost effective

Communications Clearer, faster, accessible, cost effective

Quality Examples in Disciplines


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Little q & Bigger Q

Product

Qualityq

Organizational

Quality

Q

Focus has been shifting from product quality to Assurance

From To


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MaterialReceiving

Sorting Cutting Marking

FinalInspection

Galvanizing Washing AcidCleansing

q q q q

Q = q1 + q2 + q3 +. qn

q q q

Q

Changing Scope of Quality (q to Q)


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PLANTHE WORK

DOACCORDING TO

PLAN

ACTAFTER PROBLEM

IDENTIFICATION

CHECKOUTCOME OF

WORK

PA

C D

(The Deming Wheel)

The PDCA Cycle


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Cost of Good Quality

These are the costs required to ensure that product will meet the

requirements and it has got minimum defects (high acceptability)

Prevention Costs - Costs incurred to keep failure and appraisal costs

to a minimum

o Quality planningo Scheduled maintenance

o Trainings

Appraisal Costs - Costs incurred to determine the degree of

conformance to quality requirements.

o Checking & testing of purchased goods/ services

o Field testing

o Inspection


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Cost of Poor Quality

These are the costs which are required to spend when there is a con-

conformity in product/ service

External Failure Costs

o Complaints

o Warranties

o Defect repair

o Sales reduction

Internal Failure Costs

o Delays

o Downtime

o Re-testingo Re-working

Cost of Quality = AC+PC+EFC+IFC


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Cost of Quality


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Consequences of Poor Quality

Low productivity

Increased inspections Cost overruns

Disturbed cash flows

Delays in product delivery

Bad market reputation

Disagreements over product acceptances

Loss of business

Reduction in expected sales numbers


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Identify the activities studied in the topic on COST OF QUALITY under the

umbrella of Quality Assurance and Quality Control.

Exercise

Prototyping

Customer Complaints

Training Evaluation Quality Planning

Defect identification

Process validation

Warranties

Supplier evaluation

Field testing

Calibration of tools/ equipment

Following acceptance protocol


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Cost-Benefit Analysis

CBA is a decision making technique which helps you to evaluate the

effectiveness of the planned action to take place

Trade-off between the decision to be taken and its value addition

After calculating the cost of quality, you come up with a better picture

as to what measures are required to be opted and what to leave

Time factor is also be given due importance while doing CBA

Return on investment

Payback period


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QA ispart of the QMSthat aims to provide confidence that quality requirements

are being fulfilled and is targeted at predicting and preventing error before their

occurrence.

Diff. b/w Quality Assurance & Control

Characteristics of QA:

Process oriented Starts before projects commenceand continues till projects complete

Followspreventive approach

Interprets and strives to achieve customer requirements and project

specifications

FollowsPDCA cycle Complied through audits


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QC is also a part of the QMS focused on fulfilling quality requirements by

evaluating and comparing actual performance and planned performance.

Diff. b/w Quality Assurance & Control

Characteristics of QC:

Product oriented

Helps QA to validate the customer requirements and project

specifications Done through inspections, testing and verifications

Starts after projects commences and continues till projects are handed

over

Follows corrective approach

What should be the sequence?

Which activities are performed in QA & QC?

How do they compliment each other?


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Basic Steps to Solve Problems:

Quality Managing Tools

Define the problem and establish an improvement goal

Collect data

Analyze the problem

Generate potential solutions

Choose a solution

Implement the solution

Monitor the solution to see if it accomplishes the goal


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There are 07Basic Tools of Qualityidentified as being most helpful

in troubleshooting quality issues. They are called basicbecause they

are suitable for people with little formal training in statistics. These

are :

Flow Chart

Cause & Effect Diagram

Check Sheet

Pareto Chart

Histogram

Scatter Plot

Control Chart

Quality Managing Tools


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It visually represent relationships among the activities and tasks that

make up a process.

Flow Charts

A Flowchart may:

Have a logical start and an end.

Have Inputs and outputs.

Indicate resources involved in the

process.

Mention sequence of activities.

Show controlling points.


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Following standard symbols are used to create process maps:

Symbols in Flowcharting

Process Step

Input/

Output

Terminal Decision

On-page

Connector

Page

Connector

Document/

Report

Existing

Process

Manual

OperationDelay Manual

Input


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Three (03) types of flow diagrams can be used to describe a process,

depending upon the information to be shared. These are:

High-Level Flowchart

A first-level or top-down flowchart shows the major steps in a process. It

illustrates a "birds-eye view" of a process.

Types of Flow Charts



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Detailed Flowchart

It maps all the steps and activities that occur in the process

including decision points, waiting periods, documents and

feedback loops etc.



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Deployment or Matrix Flowchart

It maps out the process in terms of who is doing what and how in

a process. It is in the form of a matrix, showing the variousparticipants and the flow of steps among these participants.



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Define the process steps by observing the process

Sort the steps into the order of their occurrence in the

process

Place the steps in appropriate flow chart symbols

Add the decision points & controlling points

Create the chart

Get it peer-reviewed

Modify if required

Creating a Flow Chart


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Exercise:

Draw a process map showing the sequence, flow and interaction of

activities involved in the process of selection of a GD pilot for PakistanAir Force with the below mentioned activities:

Advertisement in newspaper

Applications receiving & scrutiny

Welcoming applicants at recruitment center Admission

Conducting preliminary test

Preliminary Test results announcement

Arrangements for ISSB tests

Conducting ISSB protocol

ISSB results declaration

Call for interview

Interview conduct

Selection formalities completion

Flow Charts


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Also termed as Ishikawa, Fishbone and Cause & Effect Diagram.

It visually represents the causes of a problem or effect and help you

determine the ultimate source of the problem the root cause. It is used at the beginning of root cause analysis and planning.


CATEGORY

1

CATEGORY

2

CATEGORY

3

CATEGORY

4

CATEGORY

5

CATEGORY

6

EFFECT


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Define

Problem

Draw SpineMark

Categories

Highlight

issues


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Draw a fishbone diagram for investigating the reasons for higher turnover of

employees

Exercise

No

perks


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Ch k Sh


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It is a simple document that is used for collecting data in real-time and at the

location where the data is generated. This document is typically a blank form that is

designed for the quick, easy, and efficient recording of the desired information

Check Sheet

ProblemFrequenc

yTotal

Hard to drive

toIIII 4

Officelocation

IIIII 6

Low Salary IIIIIIIIIIIIII 13

Lesser

PerksIIIIIIIIIII 9

Salariesgetting

higher

IIIIIIIIIIIIIII 15

High market

demandIIIII 6

Flexibility in

managemen

t

III 3


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P t Ch t


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It is a simple bar graph that ranks problems in order of magnitude to determine the

priorities for improvement activities. Often called the 80-20 rule, the Paretos Principle

is a way of separating the vital few from the trivial many.

Pareto Chart


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S tt Pl t


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A scatter plot is a classic statistical diagram that lets you visualize the relationship

between numeric variables. For instance, if you have a table of data on cities, you

could use a scatter plot to see if there is a relationship between population and

crime levels.

Scatter Plot

If the points cluster in a band running from lower left to upper right, there is a

positive correlation (if x increases, y increases).

If the points cluster in a band from upper left to lower right, there is a negativecorrelation (if x increases, y decreases).


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Statistical


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Standard Deviation

Square of variance; formula is:

X = mean of values of distribution

n = No. of values used to calculate standard deviation

xi = value of x for each item in distribution

( )2

n

xxi=

Statistical

Concepts

Standard


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Standard

Deviation Shows amount of variation or "dispersion" from the average

(mean, or expected value).

A low standard deviation indicates that the data points tend

to be very close to the mean, whereas:

High standard deviation indicates that the data points are

spread out over a large range of values.
http://upload.wikimedia.org/wikipedia/commons/8/8c/Standard_deviation_diagram.svg


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Control Charts

Control charts present the results of a process over time

They are used to determine if the process is under control Can be used to monitor:

Cost and Schedule variances

Errors in process

Control Chart- a typical


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Control Chart a typical

illustartion


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Out of Control Process

The process is out ofstatistical control under oneof two circunstances:

A point is out of the control limits

boundaries or there are; Non random points that are within

the upper and lower limits, asstated by the rule of seven.

Think of out of control as alack of consistency andpredictability in the process.


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Out of Control Process

f S C C
http://sixsigmaindonesia.com/blog/?attachment_id=69


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The Rule of Seven in Control Charts

Refers to non randompoints grouped in a

series, totalizing seven,all of them on one side

of the mean.

The rule states that,even though none of

these points is out of the

control limits, they arenot random and so theprocess is out of control.

O t f C t l P R l f S


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Out of Control Process Rule of Seven


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Histogram


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A histogram is a type of bar graph for showing frequency distribution, or how

often individual data points occur across the range of the data from low to high.

It represents frequency distribution by means of rectangles whose widthsrepresent class intervals and whose areas are proportional to the corresponding

frequencies

Histogram

How to draw a histogram


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SELECTthe measures to be examined. For example, you need to study things

like time, weight, dimensions and speed etc.

COLLECTthe data (use a check sheet)

PREPAREthe frequency table in a sequential form

DESIGNthe histogram (class interval and class width finalization)

DRAWthe histogram in a graphical display (using bar graph)

INTERPRETthe data and draw your observations

How to draw a histogram

Interpretation of Histogram


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Customer Satisfaction


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Customer Requirements & Satisfaction

C

U

ST

O

M

E

R

S

C

U

ST

O

M

E

R

S

Product & QMS

Product

Continual Improvement of the

Quality Management System

R

e

qu

i

r

e

m

e

nt

s

S

a

t

i

s

f

a

c

t

io

nInput

Output


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Customer Satisfaction

Customer is the one who uses our products by spending his

money that is actually the lifeline of your business.

CUSTOMER IS THE KING and it is inevitable to satisfy him and

keep him retained.

Customer satisfaction must be the prime goal of an organization.


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Types of Customers

Internal Customers and External Customers > Both must be

satisfied

Internal customers are the company employees, people in the

process and each department is a customer to another one.

External customers are your product users and the ones who

influence the sales of products

Customers change their needs and must be tapped periodically


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Customer Feedback

Comment Card

Customer Questionnaire

Toll Free Telephone Numbers

Customer Visits

Internet & Computer

Employee Feedback

Customer Complaints


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PQM Approach

ProjectQuality

Management

Perform

Quality

Assurance

Plan

Quality

Perform

Quality

Control


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Definitions

Plan Quality

Identifying which quality standards are relevant to the

project and determining how to satisfy them.

Perform Quality Assurance

Evaluating overall project performance on a regular basis to

provide confidence that project is meeting and satisfying

the relevant quality standards.

Perform Quality Control

Monitoring specific project results to determine if they

comply with relevant quality standards and identifying ways

to eliminate causes of unsatisfactory performance.

Understanding Project Quality


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Quality in the real world


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Quality in the real world To begin:

The customer determines their requirements.

The project team clarifies the requirements. The project team determines what is to be done to meet requirements

Quality Starts:

The PM determines available existing standards, policies, plans and

procedures.

Project planning and execution gets underway.

QC department measures the performance from the start of planning till

project end against standards, policies, plans and procedures. This initiates

changes, corrective & preventive actions and defect repairs.

QA department conducts audits periodically. This department issueschange requests and highlight areas needing corrective and preventive

actions.

The change control board reviews the changes as part of integrated

change control.

The project is completed, quality targets are approved and customer is


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PLAN QUALITY


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Plan Quality

It is the process of:

Identification of quality requirements and standards.

Documenting how to demonstrate the compliance

Quality planning is done in parallel with other project planning


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Plan Quality


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T l & T h i f PLAN QUALITY


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Tools & Techniques for PLAN QUALITY Flow Charting

What actions would add the value in achieving quality results

Cost of Quality

Good and poor quality costs estimations

Control Charts

Setting different thresholds for various processes

Benchmarking

Comparing planned practices with alike projects

Design of Experiments

Exploring different options to achieve quality objectives

Statistical Sampling

Sample frequency and sizes to be determined


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O t t f PLAN QUALITY


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Outputs from PLAN QUALITY

Quality Management Plan

How quality would be managed throughout project lifecycle

Quality Metrics

A definition that describes clearly how QC will measure it

Quality Checklists

Component specific tool used to verify requirements

Process Improvement Plan

How processes can be improved by analyzing the improvement areas

Project Document Updates

Stakeholder register and Responsibility Assignment Matrix

Q lit M t Pl


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Scope

Assemble a team

Systematically plan

Write the Plan

Submit the Plan for review and approval

Once approved, distribute the plan

Start work, following the plan

Revise when needed, get approval and then re-distribute the plan

Quality Management Plan

Constituents of Quality Management Plan


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Quality Requirements & Expectations

What to achieve, Project Scope, Constraints, Stakeholders, Procurement,

Outsourcing, Deliverables & Acceptance Criteria etc.

Quality Management and Organization

Framework, Standards, Documentation , Quality Metrics and Quality

Responsible, HSE Requirements, Change Management & Responsibility

Assignment Matrix

QA Processes

Process Evaluation, Validations, Audits, Root cause Analysis, Supplier

Management, Trainings and Corrective & Preventive Actions

QC Processes

Inspections, Verifications, Variances, Tools & Defect Repairs

Constituents of Quality Management Plan



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Differences in Approach


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Differences in Approach

Quality Assurance Testing (Quality Control)

A mind set that focuses on doing

everything as well as possible.

An activity that looks for where things

were not done as well as they could be

done.

QA requires high levels of interactionand focusses the needs of multiple

people, groups, and stakeholders to

make effective decisions on balance.

Test requires high levels of technical

skill to execute procedures for

validation.

Are the business requirements an

accurate reflection of the customer's

needs? (Doing the right thing.)

Does the product satisfy the

requirements, as written? (Doing things

right.)

Definition:


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Definition:

Assuranceis

The act of giving confidence

The state of being certain

The act of making certain

Quality assuranceis the planned and systematic activity implemented in a QMS

so that the requirements for a product/ service are met

In QA, we establish whether we are following/ using the standards captured in

Plan Quality or otherwise and exploit options for improvement

Audit Triggering


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Audit Triggering

Audits can be triggered in two scenarios:

Routine audits conduct as spelt out in QMP

*After having QC results

* Once you have the problematic QC results, you need to:

Revisit your processes, especially the area needing attention

Revisit your auditing process

Revisit your auditing techniques

Importance of QA:


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Importance of QA:

Compliance of standards and best practices Overseeing the processes

Prevention from defects -foreseeing issues before hand

Reduces costs Reworking costs are controlled

Analytical approach to defects handling Root-cause analysis

Change Management- Tracking of all changes

Process Improvement Identification of any process improvements

Reporting

Audit is the most reliable tool to ascertain QA plan

It can be done internally or externally

PERFORM QUALITY ASSURANCE


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PERFORM QUALITY ASSURANCE

Inputs to PERFORM QUALITY ASSURANCE


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Inputs to PERFORM QUALITY ASSURANCE

Project Management Plan

Quality Management Plan covering QA activities and Process Improvement

Plan

Quality Metrics

A definition that describes clearly how QA & QC will measure it

Work Performance Information

Technical Performance measures

Project Deliverables Status

Schedule Progress &

Cost Incurred

Quality Control Measurements

Results obtained from QC activities like inspections and testing

Tools & Techniques for PERFORM QUALITY ASSURANCE


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Tools & Techniques for PERFORM QUALITY ASSURANCE

Plan Quality and Perform QC Tools & Techniques

Quality Audits

To identify good practices

To identify gaps and improvement areas

To confirm the implementation of approved change requests

Process Analysis

Used for repetitive activities in the project

To identify problems, constraints and non-value added activities

Root cause analysis is part of process analysis

Outputs from PERFORM QUALITY ASSURANCE


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Outputs from PERFORM QUALITY ASSURANCE

Organizational Process Updates

Checklists, pro-formas and standards updates

Lessons Learnt documents

Process modifications

Change Requests

Suggested improvements and corrective actions to be proposed through

integrated change control

Project Management Plan Updates

Relevant plans like QMP, time, cost & communication management plan

Project Documents Updates

Process Documents

What is Quality Control


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What is Quality Control

QC is checking the actual product parameters against the standard/

requirements

It is done through inspections and testing

It can be performed on deliverables or on the product as a whole

It takes time but sampling may help---can mislead too!!!

It needs appreciable set of skills

Acceptance and rejection criterion along with tolerances & thresholds

information

QC process needs to be revisited periodically

YOU MUST HAVE; WHAT YOU NEED



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g j Q y

Importance of Quality Control


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p Q y

It provides measurement data to help perform RCA

It validates the achievement of what is written in standards & requirements

It keeps mistakes out of hands of customer

Prevention and inspection

Inspection & Testing


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Inspection & Testing

INSPECTION:

Checking the physical characteristics of product

Checking the completeness of product/ deliverable

Inspection in phases reduces:

Cost and time for final inspection

Re-working and error rate

TESTING:

Checking performance of product

It may be destructive or non-destructive

PERFORM QUALITY CONTROL


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PERFORM QUALITY CONTROL

Quality Control Plan


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Q y

Objectives definition

Organizational setup for QC

Inspection methodologies

Documentation requirements and archiving

Communication requirements

Reviews

Inputs to PERFORM QUALITY CONTROL


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Project Management Plan

Quality Management Plan covering QC activities

Quality Metrics

A definition that describes clearly how QC will measure it

Quality Checklists

Component specific tool used to verify requirements

Work Performance Measurements

Planned vs Actual Technical Performance

Planned vs Actual Schedule Performance

Planned vs Actual Cost Performance



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Approved Change Requests

Defect Repairs, Revised methodologies and revised schedule

Deliverables

Tangible and phase-gate products

Organizational Process Assets

Quality Standards and Policies

Standard Work Guidelines

Issue and Defect Reporting Procedures & Communication Policies

Tools & Techniques for PERFORM QUALITY


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CONTROL C& E Diagram

Pareto Chart

Histogram

Flow Chart

Control Chart

Run Chart

Scatter Plot

Statistical Sampling

Inspection

Approves Change Requests Review

Requests review for implementation as approved


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Outputs from PERFORM QUALITY CONTROL


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Outputs from PERFORM QUALITY CONTROL

Change Requests

Changes arising out of defects, corrective and preventive actions

Project Management Plan Updates

Quality Management Plan &

Process Improvement Plan

Project Documents Updates

Quality Standards