quality management (pqm01) course 01 - concept of quality · course 01 - concept of quality . ... `...

Quality Management (PQM01)

Course 01 - Concept of Quality

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Concept of Quality

Customer Input to Quality

Quality Planning

Quality Control

Six Sigma

2v.7.0- © Copyright and all rights reserved –Looking Glass Development, LLC.

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Quality is conforming to requirements or specifications, and fitness for use.


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Quality addresses all of the characteristics that describe how the product meets the stated need◦ Grade vs. Quality

◦ Prevention vs. Inspection

◦ Management Responsibility

◦ Accuracy vs. Precision

◦ Customer Satisfaction


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Grade vs. Quality Grade is a category or rank given to entities having the same functional use but different technical characteristics

Quality is the totality of characteristics of an entity that bear on its ability to satisfy the stated or implied needs


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Quality Management Carrying out a project through its phases with zero deviations from the project specifications or objectives

Improving the quality of the process is the only way to improve the quality of the project outcome


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Deming states – 85% of the costs of quality are the direct responsibility of management


Cost of

Conformance

Cost of Non-

Conformance

Quality Training Rework

Studies Scrap

Surveys Inventory Costs

Warranty Costs

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Impact of Poor Quality Increased Costs

Low Morale

Lower Customer Satisfaction

Increased Risk


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Key Terms Gold Plating – Giving the customer extra

functionality. Gold plating adds no value to the project. PMI argues against gold plating.

Marginal Analysis – Is the process of finding the point where the cost of the incremental improvement in quality equals the value of the improvement.


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Key Terms Kaizan – The concept of ongoing small

improvements will have greater impact than fewer large efforts.

Just In Time (JIT) – This is an approach to decrease the amount of inventory a company has on hand.


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Key Terms ISO 9000 – A standard created by the

International Organization for Standardization to help ensure companies have quality procedures and follow them.

ANSI – American National Standards Institute.


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Key Terms Total Quality Management (TQM) – A philosophy that encourages companies and their employees to focus on finding ways to continuously improve the quality of their business practices and products.


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Key Terms Statistical Independence – The probability of one event occurring does not affect the probability of another event occurring.

Standard Deviation – Also called Sigma, a measure of how far you are from the mean.


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Key Terms 3 or 6 Sigma – Represents the level of quality that a company has decided to try and achieve. At 6 Sigma, only 1 out of 10,000 of a product has a problem. At 3 Sigma the number is 27 out of 10,000.◦ 1 Sigma 68.26% 2 Sigma 95.46%

◦ 3 Sigma 99.73% 6 Sigma 99.99%


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Key Terms Customer Satisfaction – Describes the customer’s feelings about a product or service.

Conformance to the Requirements –Describes the condition of the product or service in relation to the customer’s requirements.


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Key Terms DTRTRTFT – Do the Right Thing Right the First Time

CIP – The Continuous Improvement Process is a concept which recognizes that the world is constantly changing and any process that is satisfactory today may well be unsatisfactory tomorrow


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The Five Major Cost Categories Prevention Cost – The cost to plan &

execute the project to reduce or eliminate error.

Appraisal Cost – The cost of evaluating the processes and the outputs of the processes to reduce or eliminate error

Internal Failure Cost – The cost to correct an identified defect before the customer receives the product


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The Five Major Cost Categories External Failure Cost – All costs incurred

because of defects not detected and corrected before the delivery to the customer.

Measurement & Test Equipment – The capital cost of equipment used to perform prevention and appraisal activities.


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8 Categories of Waste Waste in Rejects of Completed Work –

Completed work does not meet requirements.

Waste in Design Flaws – The design does not conform to the requirements.

Waste in Work-in-Progress – Flow of work is affected when it has to be stopped because of poor process capability


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8 Categories of Waste Waste in Motion for Manpower – Poorly

trained people will waste effort.

Waste in Management – Management will poorly direct resources.

Waste in Manpower – Resources are placed on tasks for which they are not trained; or miss scheduled time that cannot be recaptured


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8 Categories of Waste Waste in Facilities – The improper use of project materials.

Waste in Expense – Expenses that do not contribute to the completion of the project.


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The Project Manager has primary responsibility for project quality, but everyone on the project is responsible for conformance to standards.

The ultimate responsibility for quality rests on the whole project team.


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Thought Leaders W.E.Deming: (P,D,C,A); Poor Quality – 85% / 15%

J.M.Juran: TQM; Fitness for Use

P.Crosby: Quality is Free; 0-Defects; Conformance

to Requirements

K. Ishikawa: Cause-Effect (Fishbone) Diagram;

Design Statistics

G. Taguchi: Quality as part of the Design—not

Inspection


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8.1 Plan Quality Management

25v. 7.0 - © Copyright and all rights reserved –Looking Glass Development, LLC.

Inputs.1 Project management plan

.2 Stakeholder register

.3 Risk register

.4 Requirements documentation

.5 Enterprise environmental

factors

.6 Organizational process assets

Tools & Techniques.1 Cost-benefit analysis

.2 Cost of Quality

.3 Seven basic quality tools

.4 Benchmarking

.5 Design of the experiments

.6 Statistical sampling

.7 Additional quality planning

tools

.8 Meetings

Outputs.1 Quality management

plan

.2 Process improvement

plan

.3 Quality metrics

.4 Quality checklists

.5 Project documents

updates

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8.2 Perform Quality Assurance


Inputs.1 Quality management plan.2 Process improvement plan.3 Quality metrics.4 Quality control

measurements.5 Project documents

Tools & Techniques.1 Quality management & control tools

.2 Quality audits

.3 Process analysis

Outputs.1 Change requests.2 Project management plan

updates.3 Project documents

updates.4 Organizational process

assets updates

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8.3 Control Quality


Inputs.1 Project management plan

.2 Quality metrics

.3 Quality checklists

.4 Work performance data

.5 Approved change requests

.6 Deliverables


.8 Organizational process assets

Tools & Techniques

.1 Seven basic quality

tools

.2 Statistical sampling

.3 Inspection

.4 Approved change

requests review

Outputs.1 Quality control

measurements

.2 Validated changes

.3 Validated deliverables

.4 Work performance

information

.5 Change requests

.6 Project management

plan updates


updates

.8 Organizational process

assets updates

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Review Questions:

1. Which of the following is a major component of project quality?

A. Conformance to requirements

B. Fitness for use

C. Conformance to specifications

D. All of the above

2. Which of the following is NOT a characteristic defined by quality?

A. Grade vs. Quality

B. Customer satisfaction

C. Accuracy vs. Precision

D. Schedule requirements

3. Which of the following most accurately describes the difference between grade

and quality?

A. Grade describes whether or not the product of the project meets the

requirements while quality describes how well the product meets those

requirements

B. Quality describes whether or not the product of the project meets the

requirements while grade describes how well the product meets those

requirements

C. Grade is quantitative while quality is qualitative

D. They both measure the same thing

4. If project quality is delivered, which of the following statements are true?

A. Quality is a category ranking used to ensure the stakeholders’ need is met

B. Grade is the totality of characteristics of an entity that bear on its ability to

satisfy the stated or implied needs

C. Delivering on quality means continually improving quality

D. The project has been carried through its phases with zero deviations from

the project specifications or objectives

5. According to many writers, which of the following is required to improve the

quality of the outcome?

A. The quality of the process must be improved

B. Each worker must improve their deliverables

C. Statistical sampling must be used

D. The rate of inspection must be increased

6. Which of the following statements are accurately attributed to Edward Deming?

A. Most of the responsibility for quality belongs to the project team

B. Most of the responsibility for project quality belongs to the stakeholders

C. Project quality is 15% process and 85% worker

D. Project quality is 85% process and 15% worker

7. Which of the following is NOT a cost of conformance?

A. Quality training

B. Studies

C. Rework

D. Surveys

8. Which of the following is NOT a cost of non-conformance?

A. Inventory costs

B. Warranty costs

C. Scrap

D. Training

9. Which of the following is NOT considered an impact to poor quality?

A. Lower customer satisfaction

B. Lower morale

C. Increased risks

D. All of the above are impacts of poor quality

10. Which of the following terms means adding extra functionality not approved by

the sponsor?

A. Marginal analysis

B. Exceeding expectations

C. Gold plating

D. Kaizan

11. Which of the following terms represents the idea that many small improvements

will have a greater impact than a few big improvements?


B. JIT

C. Gold plating

D. Kaizan

12. Which of the following terms provides a technique to reduce an organization’s

inventory?


B. JIT

C. Gold plating

D. Kaizan

13. Which of the following is a member of ISO?

A. BSO

B. ITIL

C. PMI

D. ANSI

14. Which of the following is a methodology that tasks employees with constantly

improving?

A. Kaizan

B. TQM

C. JIT

D. Exceeding expectations

15. When using sampling, which of the following is a basic assumption?

A. That all the variables are related

B. That the variables are statistically independent

C. The sample accurately represents every possible outcome

D. All of the above

16. Which of the following is a term used to reference the sum of the cases divided

by the count?

A. Mean

B. Standard Deviation

C. Sigma

D. All of the Above

17. If your boss wanted you to be 2/3rds confident in your estimate, which of the

following would you provide?

A. A 1 Sigma estimate

B. A 2 Sigma estimate

C. A 3 Sigma estimate

D. A 6 Sigma estimate

18. At 2 Sigma, how many potential cases would be accounted for assuming a

normal distribution?

A. 68%

B. 95%

C. 99%

D. None of the above

19. Which of the following is NOT one of the five (5) major cost categories for

quality?

A. External failure costs

B. Appraisal costs

C. Internal failure costs

D. Inspection costs

20. Which of the following is NOT one of the eight (8) categories of waste?

A. Rejected work

B. Design flaws

C. Manpower

D. All of the above are categories of waste

21. Which of the following thought leaders is responsible for the PDCA cycle?

A. Deming

B. Juran

C. Crosby

D. Ishikawa

22. Which of the following thought leaders is responsible for the fishbone or cause

and effect diagrams?

A. Deming

B. Juran

C. Crosby

D. Ishikawa

23. Which of the following thought leaders is responsible for TQM?

A. Deming

B. Juran

C. Crosby

D. Ishikawa

Answer Key:

1. D

Project quality management requires the project manager to address the product

or service of the project in two areas:

1. The product or service must meet the specified requirements and any rules or

regulations (conformance to requirements and specifications).

2. The product or service must be capable of meeting the intended purpose

(fitness for use).

2. D

Schedule requirements have nothing to do with quality. They are considered a

separate leg of the triangle or triple constraints.

3. B

A common way of thinking of quality versus grade is that quality represents

binary criteria (e.g. black or white), whereas grade represents shades of grey.

4. D

The key element in this question is remembering the definition of quality. Quality

is meeting the specified requirements.

5. A

The most influential of the writers is E.J. Deming who argued, to fix a system

problem it is 85% process and only 15% worker.

6. D

Deming argued that system problems and quality are 85% process and 15%

worker.

7. C

Rework is a cost of non-conformance and represents work that must be

completed again because it was unsatisfactory.

8. D

Training is a conformance cost as you are teaching your resources to actually do

the required activities, in such a way, as to produce the desired result.

9. D

Poor quality can have many impacts. These include lowering the team’s morale,

increasing the risks to the organization and lower customer satisfaction.

10. C

Gold plating is adding extra functionality not approved by the sponsor.

11. D

Kaizan is a Japanese quality improvement concept that argues many small

improvements will provide greater value than a single large improvement.

12. B

JIT, or Just in Time, is an inventory management technique where components

only arrive just prior to being needed. This reduces costs and held inventory.

13. D

ANSI, or the American National Standards Institute, is the American

representative to the International Standards Organization.

14. B

TQM, or Total Quality Management, is a continuous process improvement

methodology.

15. B

A base assumption of all statistical sampling techniques is that the sample can

be made to fairly represent the entire population, and it is therefore not required

to measure the entire population.

16. A

The mean is defined as the sum of the values divided by the count. It is one of

three statistical averages and provides the exact middle of a normal or Gaussian

Distribution.

17. A

A one standard deviation or 1 Sigma estimate means you are exactly one

standard deviation from both the right and left of the mean. This accounts for

68% of the cases and represents a 2/3rds point.

18. B

A two standard deviation or 2 Sigma estimate means you are exactly two

standard deviations from both the right and left of the mean. This will account for

95% of the cases in a population.

19. D

The five major cost categories include prevention costs, appraisal costs, internal

failure costs, external failure costs, and measurement and testing equipment.

20. D

The eight categories of waste include Waste in Rejects of Completed Work,

Waste in Design Flaws, Waste in Work-in-Progress, Waste in Motion for

Manpower, Waste in Management, Waste in Manpower, Waste in Facilities, and

Waste in Expense.

21. A

Edward Deming created the Plan, Do, Check, Act Cycle.

22. D

Ishikawa Diagrams are sometimes called fishbone diagrams or cause and effect

diagrams, and are used in root cause analysis.

23. B

Juran is the father of the Total Quality Management improvement process.

quality management (pqm01) course 01 - concept of quality · course 01 - concept of quality . ... `...

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