tomsk polytechnic university international management institute

Project ManagementProject Management

Prof. Dr.-Eng. Prof. Dr.-Eng. А.А. А.А. DulzonDulzon

Tomsk Polytechnic University Tomsk Polytechnic University

International Management Institute International Management Institute

Project Quality managementProject Quality management• 7.1 Introduction7.1 Introduction• 7.2 Quality management as a concept7.2 Quality management as a concept• 7.3 The quality gurus7.3 The quality gurus• 7.4 The quality management “Six pack”7.4 The quality management “Six pack”• 7.5 Total quality management7.5 Total quality management• 7.6 Configuration management7.6 Configuration management• 7.7 Concurrent engineering and time-7.7 Concurrent engineering and time-

based competitionbased competition

Project Quality managementProject Quality managementIntroductionIntroduction

• ISO9000 defines quality as:ISO9000 defines quality as: The totality of feature and characteristics of a product or service The totality of feature and characteristics of a product or service

that bears on its ability to satisfy stated or implied needs.that bears on its ability to satisfy stated or implied needs.• Quality control is just as important as time and cost control. Quality control is just as important as time and cost control.

There is no point in completing a project early, or under the There is no point in completing a project early, or under the cost limit, if the end product is defective or does not meet the cost limit, if the end product is defective or does not meet the specification or minimum standards that apply. specification or minimum standards that apply.

• Projects are by definition non-repetitive, and is therefore not Projects are by definition non-repetitive, and is therefore not possible to apply standard sampling techniques on batches of possible to apply standard sampling techniques on batches of outputs (as it used in the industry).outputs (as it used in the industry).

• Quality cannot be considered in isolation from time and cost. Quality cannot be considered in isolation from time and cost. There is always a trade-off to be made in setting standards for There is always a trade-off to be made in setting standards for one or more of these variables.one or more of these variables.

Quality management as a Quality management as a conceptconcept

• The traditional Japanese view considered the following The traditional Japanese view considered the following main areas:main areas:– the overall value of quality;the overall value of quality;– the overall cost of defects;the overall cost of defects;– quality dividends;quality dividends;– involving people;involving people;– proactive planning;proactive planning;– involving the whole organization;involving the whole organization;– educating the customers to expect quality.educating the customers to expect quality.

• The Japanese recognized at an early stage that quality The Japanese recognized at an early stage that quality management is expensive. As organization increase the management is expensive. As organization increase the quality standard, the cost per unit tends to increase.quality standard, the cost per unit tends to increase.

• Acceptable defect rates will vary depending on the Acceptable defect rates will vary depending on the product and the industry concerned.product and the industry concerned.


Defect rate versus manufacturing cost


• There are two ways of defining the quality. There is an There are two ways of defining the quality. There is an apparent value of quality and there is also a true value apparent value of quality and there is also a true value of quality.of quality.

• The apparent value of quality is what people will pay to The apparent value of quality is what people will pay to get a good-quality product. This can be regarded as get a good-quality product. This can be regarded as being equal to the cost of producing the product plus the being equal to the cost of producing the product plus the cost of replacing a defective version, multiplied by the cost of replacing a defective version, multiplied by the probability of a defect arising.probability of a defect arising.

• True value of quality acts over and above the apparent True value of quality acts over and above the apparent value. This represents the premium that people will pay, value. This represents the premium that people will pay, and the goodwill and prestige that is formed by a and the goodwill and prestige that is formed by a company selling a reliable-quality product.company selling a reliable-quality product.


Apparent and true value of quality


• The overall cost of defects.The overall cost of defects.– The true cost of a defect can be far greater than the The true cost of a defect can be far greater than the

apparent cost of fixing it. Products that are seen to have a apparent cost of fixing it. Products that are seen to have a high failure rate can lose customer confidence, and high failure rate can lose customer confidence, and customers will change suppliers or providers.customers will change suppliers or providers.

– Generally, a bad reputation builds up over time. However, Generally, a bad reputation builds up over time. However, in some cases, even one incident of a defect can jeopardize in some cases, even one incident of a defect can jeopardize the profile of the product or even the position of entire the profile of the product or even the position of entire company.company.

– Traditional economic analysis of production processes Traditional economic analysis of production processes dramatically underestimate the true cost of poor quality.dramatically underestimate the true cost of poor quality.

– The overall cost of defects is not simply the apparent cost The overall cost of defects is not simply the apparent cost of correcting defects but also includes the cost of the loss of of correcting defects but also includes the cost of the loss of reputation.reputation.


• Quality dividends include:Quality dividends include:– improved company status and image;improved company status and image;– improved performance based demand from customers;improved performance based demand from customers;– increased respect by competitors;increased respect by competitors;– increased share price stability (perhaps);increased share price stability (perhaps);– improved staff attitudes and motivation;improved staff attitudes and motivation;– improved sales (perhaps);improved sales (perhaps);– better industrial relations;better industrial relations;– improved and more stable risk profile;improved and more stable risk profile;– improved goodwill;improved goodwill;– improved prospects in potential mergers and acquisitions;improved prospects in potential mergers and acquisitions;– improved prospects in potential alliances and partnership.improved prospects in potential alliances and partnership.


• Involving people.Involving people.– Reliable and powerful quality-management systems are Reliable and powerful quality-management systems are

expensive, both to design and to implement.expensive, both to design and to implement.– The Japanese developed close links between the company The Japanese developed close links between the company

and the employee, always ensuring that the interests of the and the employee, always ensuring that the interests of the employee coincided as far as possible with the interest of employee coincided as far as possible with the interest of the company. There is less need for rigid and expensive the company. There is less need for rigid and expensive quality control and assurance systems if you can trust the quality control and assurance systems if you can trust the workforce to do their best to produce quality products as workforce to do their best to produce quality products as standard.standard.

– The Japanese culture allowed companies to guarantee The Japanese culture allowed companies to guarantee quality at a lower overall cost, and this gave them a quality at a lower overall cost, and this gave them a significant advantage in their competition with European significant advantage in their competition with European and US organizations.and US organizations.


• Proactive planning.Proactive planning.– The retrospective approach involves current testing of The retrospective approach involves current testing of

existing production. The defects cannot be detected until existing production. The defects cannot be detected until they have occurred. they have occurred.

– The Japanese realized early on that the costs of improving The Japanese realized early on that the costs of improving quality could be significantly reduced if more was given to quality could be significantly reduced if more was given to product development. This produced a higher quality of product development. This produced a higher quality of product with fewer inherent defects and a corresponding product with fewer inherent defects and a corresponding reduction in the demand for responsive maintenance later reduction in the demand for responsive maintenance later in the process.in the process.

• Involving the whole organization.Involving the whole organization.– Improving quality requires an improvement in the quality Improving quality requires an improvement in the quality

attitude of people at all levels.attitude of people at all levels.– The quality efforts of the production workers would be The quality efforts of the production workers would be

wasted or diluted if other parts of the organization failed to wasted or diluted if other parts of the organization failed to adopt the same high quality standards. adopt the same high quality standards.


• Educating the customers to expect quality.Educating the customers to expect quality.– The traditional Western view of quality has assumed that The traditional Western view of quality has assumed that

the customers’ views of quality and quality demands were the customers’ views of quality and quality demands were fixed and did not very over time.fixed and did not very over time.

– The Japanese took the approach that quality should be The Japanese took the approach that quality should be constantly improved and engineered. By doing this, the constantly improved and engineered. By doing this, the customers could be educated and programmed to expect customers could be educated and programmed to expect innovations, new products and higher standards of quality innovations, new products and higher standards of quality as a matter of course.as a matter of course.

– In effect, Japanese companies educated the customer to In effect, Japanese companies educated the customer to demand higher standards than the competition could demand higher standards than the competition could supply, and they then put themselves in a unique position supply, and they then put themselves in a unique position of being the only supplier able to supply to that standards of being the only supplier able to supply to that standards and cost. This allowed them to effectively take over a and cost. This allowed them to effectively take over a particular market and then charge a premium.particular market and then charge a premium.


• Quality standards.Quality standards.– Quality standards are one of the earliest forms of standards known to Quality standards are one of the earliest forms of standards known to

humanity. In 2000 BC, the ancient Egyptians had a system of quality humanity. In 2000 BC, the ancient Egyptians had a system of quality control for funeral goods.control for funeral goods.

– BS5750 was until recently an important British standard for quality BS5750 was until recently an important British standard for quality management. It has now been superimposed by ISO9000. This is the management. It has now been superimposed by ISO9000. This is the latest attempt at a generic international quality standard that is latest attempt at a generic international quality standard that is applicable throughout Western Europe.applicable throughout Western Europe.

– ISO9000 is basically a never-ending cycle including planning, ISO9000 is basically a never-ending cycle including planning, controlling and documentation. However, as with the formerBS5750 , controlling and documentation. However, as with the formerBS5750 , the fact that a company is ISO9000-accredited does not mean that the the fact that a company is ISO9000-accredited does not mean that the company produces only high-quality products. It merely shows that the company produces only high-quality products. It merely shows that the necessary procedures are in place – or at least were at the time that necessary procedures are in place – or at least were at the time that the appropriate inspections were carried out.the appropriate inspections were carried out.

– The main drawbacks with the standard are that, like BS5750, it is The main drawbacks with the standard are that, like BS5750, it is bureaucratic and only measures performance at one point in time.bureaucratic and only measures performance at one point in time.

7.3 The quality gurus7.3 The quality gurus

• There are five main areas where the main quality gurus There are five main areas where the main quality gurus (W. Edwards Deming, Joseph M. Juran, Philip B. Crosby (W. Edwards Deming, Joseph M. Juran, Philip B. Crosby and Imai) all agree to some extent:and Imai) all agree to some extent:

1.1. Quality processes must be enterprise-wide.Quality processes must be enterprise-wide. Effective quality Effective quality management has to apply to everything from the management has to apply to everything from the production process to administrative support.production process to administrative support.

2.2. Process defects should be considered before employee Process defects should be considered before employee defects.defects. People tend to operate processes correctly People tend to operate processes correctly provided they have adequate training and motivation and provided they have adequate training and motivation and so long as the system operates correctly.so long as the system operates correctly.

3.3. Quality processes must be structured.Quality processes must be structured. Quality management Quality management systems should operate on the same principle as WBS. The systems should operate on the same principle as WBS. The process should be broken down into elements so that the process should be broken down into elements so that the performance of each element can be controlled and performance of each element can be controlled and managed.managed.

The quality gurusThe quality gurus

4.4. Quality processes must ensure that the product exceeds Quality processes must ensure that the product exceeds customer demands.customer demands. The most satisfied customers are those The most satisfied customers are those who receive a product that offers them more than they who receive a product that offers them more than they actually demanded in the first place.actually demanded in the first place.

5.5. Quality processes must be able to relay on commitment.Quality processes must be able to relay on commitment. Greater commitment gives the possibility of reduced formal Greater commitment gives the possibility of reduced formal (expensive) quality control system.(expensive) quality control system.

• The Deming approachThe Deming approach suggested that better quality- suggested that better quality-management allows a company to produce equal-management allows a company to produce equal-quality goods at a lower cost, or better-quality goods quality goods at a lower cost, or better-quality goods at the same cost. He believed that operatives basically at the same cost. He believed that operatives basically want to do a good job and will do so if given the right want to do a good job and will do so if given the right equipment and processes.equipment and processes.


• Deming’s underlying philosophy was that company Deming’s underlying philosophy was that company managers tend to be too interested in what is happening managers tend to be too interested in what is happening today and not enough on what may happen tomorrow.today and not enough on what may happen tomorrow.

• The Deming approach is very much worker-oriented and The Deming approach is very much worker-oriented and appeals to the democratic type of manager. It has a appeals to the democratic type of manager. It has a core of statistical analysis, supporting a fourteen-point core of statistical analysis, supporting a fourteen-point plan for managers:plan for managers:– Create common sense of purpose.Create common sense of purpose.– Create a new mind-set.Create a new mind-set.– Build quality into system.Build quality into system.– Review procurement strategy.Review procurement strategy.– Research and innovate.Research and innovate.– Invest in staff development.Invest in staff development.


– Enhance supervision.Enhance supervision.– Develop a system of open communication.Develop a system of open communication.– Encourage enterprise-wide open communication.Encourage enterprise-wide open communication.– Avoid the use of output standards.Avoid the use of output standards.– If standards are used, use them carefully.If standards are used, use them carefully.– Encourage pride.Encourage pride.– Invest in training.Invest in training.– Encourage commitment.Encourage commitment.

• Juran Juran is famous for his ten steps to quality is famous for his ten steps to quality improvement and for the Juran trilogy. The ten steps improvement and for the Juran trilogy. The ten steps are to:are to:

1.1. Develop an awareness that products must evolve and Develop an awareness that products must evolve and improvement is necessary.improvement is necessary.

2.2. Establish a strategic plan for improvement and establish Establish a strategic plan for improvement and establish goals for improvement at different position within the goals for improvement at different position within the strategy.strategy.


3. Plan an operational system that allows the goals for improvement 3. Plan an operational system that allows the goals for improvement to be achieved.to be achieved.

4. Provide adequate staff training and development as required.4. Provide adequate staff training and development as required.5. Where there are major problems, treat them as projects and set 5. Where there are major problems, treat them as projects and set

up a project team to resolve them.up a project team to resolve them.6. Establish a regular and detailed reporting system.6. Establish a regular and detailed reporting system.7. Recognize good performance and reward it. Take appropriate 7. Recognize good performance and reward it. Take appropriate

corrective action in the case of poor performance.corrective action in the case of poor performance.8. Develop an open communication system and communicate 8. Develop an open communication system and communicate

results.results.9. Maintain performance records and publish results. Use “league 9. Maintain performance records and publish results. Use “league

tables”.tables”.10 Drive the system maintaining momentum and constantly 10 Drive the system maintaining momentum and constantly

introducing improvements and innovations.introducing improvements and innovations.


• Juran’s approach suggests that senior management must Juran’s approach suggests that senior management must establish top-level strategic and annual plans for establish top-level strategic and annual plans for improvement in quality. It is a highly structured and improvement in quality. It is a highly structured and coordinated approach. It tends to appeal more to boss-type coordinated approach. It tends to appeal more to boss-type managers who identify with a rigid control system.managers who identify with a rigid control system.

• Juran’s philosophy is basically to plan improvement, control Juran’s philosophy is basically to plan improvement, control implementation and then improve. It is the most scientific implementation and then improve. It is the most scientific and highly structured of the approaches.and highly structured of the approaches.

• The Juran trilogy comprises the following:The Juran trilogy comprises the following:– Quality planning.Quality planning.– Quality control.Quality control.– Quality improvement.Quality improvement.


• Quality planningQuality planning is analogous to cost and schedule is analogous to cost and schedule planning. It includes:planning. It includes:– identifying and ranking all existing customers;identifying and ranking all existing customers;– identifying individual customer demands and requirements;identifying individual customer demands and requirements;– developing a solution (product) that meets and exceeds developing a solution (product) that meets and exceeds

these demands and requirements;these demands and requirements;– planning the development and implementation of this planning the development and implementation of this

product;product;– establishing goals for achieving the product;establishing goals for achieving the product;– implementing the production process;implementing the production process;– ensuring that the system is accurate and reliable.ensuring that the system is accurate and reliable.

• These steps are similar to the standard approach to TQM These steps are similar to the standard approach to TQM planning and now usually form part of any quality planning and now usually form part of any quality management.management.


• Quality control.Quality control. The process is usually based on standard The process is usually based on standard statistical techniques using meaningful sample sizes.statistical techniques using meaningful sample sizes.

• Quality improvement.Quality improvement. The objective is to improve the The objective is to improve the system so that the end result is a procedure that system so that the end result is a procedure that operates at a measurable higher level of quality operates at a measurable higher level of quality performance than it did before.performance than it did before.

• The Juran approach, like Deming’s , stresses the need for The Juran approach, like Deming’s , stresses the need for open communication and the involvement of people open communication and the involvement of people from all levels of the organizational breakdown from all levels of the organizational breakdown structure.structure.


• P. B. Crosby’s approachP. B. Crosby’s approach is based on the philosophy that is based on the philosophy that quality has to become the universal goal of the quality has to become the universal goal of the organization and that senior management must provide organization and that senior management must provide the leadership to drive the organization forward in which the leadership to drive the organization forward in which quality is paramount and is never compromised. The quality is paramount and is never compromised. The Crosby approach is more aimed at the human-resources Crosby approach is more aimed at the human-resources type of manager.type of manager.

• The Crosby approach is based on preventing defects, The Crosby approach is based on preventing defects, rather than setting up systems to check products and rather than setting up systems to check products and detecting errors and defects.detecting errors and defects.

• The Crosby approach encourages a performance The Crosby approach encourages a performance standard of zero defects.standard of zero defects.


• Crosby, like Deming, also produced a fourteen-stage Crosby, like Deming, also produced a fourteen-stage process for quality improvement:process for quality improvement:- Establish commitment of all levels of management.Establish commitment of all levels of management.- Establish specific quality teams.Establish specific quality teams.- Establish measurement and evaluation systems.Establish measurement and evaluation systems.- Establish cost implications.Establish cost implications.- Promote awareness of quality.Promote awareness of quality.- Establish appropriate corrective action.Establish appropriate corrective action.- Establish plans for zero-defects.Establish plans for zero-defects.- Initiate education programs.Initiate education programs.- Initiate zero-defect day.Initiate zero-defect day.- Establish achievable quality improvement goals.Establish achievable quality improvement goals.- Remove the sources of defects.Remove the sources of defects.- Recognize good performance and reward it.Recognize good performance and reward it.- Establish quality forums.Establish quality forums.- Ensure evolution and feedback.Ensure evolution and feedback.


• Imai’s approachImai’s approach became known as the ‘P’ approach (the became known as the ‘P’ approach (the process approach). It concentrate on the process rather than process approach). It concentrate on the process rather than the results.the results.

• The idea is that the organization should concentrate on making The idea is that the organization should concentrate on making sure that the production system is exactly aligned to the sure that the production system is exactly aligned to the characteristics and demands of the environment.characteristics and demands of the environment.

• The production system should then be continuously assessed The production system should then be continuously assessed and evaluated and improvements should continuously be made and evaluated and improvements should continuously be made to each part of then system where there are any problems or to each part of then system where there are any problems or areas where improvement potential exists.areas where improvement potential exists.

• By continually improving the process the product itself must By continually improving the process the product itself must improve as a direct consequence. improve as a direct consequence.

7.4 The Quality Management 7.4 The Quality Management ‘Six Pack’‘Six Pack’

• In a competitive environment, In a competitive environment, qualityquality is the level of is the level of performance required in order to win more of the same type of performance required in order to win more of the same type of work and to acquire new customers.work and to acquire new customers.

• Quality managementQuality management is the process of managing quality in is the process of managing quality in order to ensure that certain established standards are order to ensure that certain established standards are achieved.achieved.

• There are six primary areas that should be established and There are six primary areas that should be established and performed in order to support any project:performed in order to support any project:- quality policy;- quality policy;

- quality objectives;- quality objectives; - quality assurance;- quality assurance; - quality control;- quality control; - quality audit;- quality audit; - quality assurance plan and review.- quality assurance plan and review.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality policyQuality policy

• The quality policy is a statement of the overall organization The quality policy is a statement of the overall organization vision on quality. It does not specify individual performance vision on quality. It does not specify individual performance requirements or the mechanics required to achieve the requirements or the mechanics required to achieve the objectives.objectives.

• The policy should have the full support of senior management The policy should have the full support of senior management and this support should be advertised and communicated and this support should be advertised and communicated around the organization.around the organization.

• The primary components of the quality policy are:The primary components of the quality policy are: - - clearly stated organizational quality objectives;clearly stated organizational quality objectives; - established measurable minimum performance level;- established measurable minimum performance level; - a clear reconciliation of the quality policy with the established - a clear reconciliation of the quality policy with the established

strategy objectives of the organization;strategy objectives of the organization; - clear and unambiguous senior management support;- clear and unambiguous senior management support; - stated penalties or consequences for non-compliance;- stated penalties or consequences for non-compliance; - reference to any central or statutory restrains;- reference to any central or statutory restrains; - some form of measurement and evaluation procedure;- some form of measurement and evaluation procedure; - stated responsibility and ownership (where appropriate).- stated responsibility and ownership (where appropriate).

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality objectivesQuality objectives

• The quality objectives represent individual performance-The quality objectives represent individual performance-control elements. They are analogous to work control elements. They are analogous to work breakdown structure (WBS) elements and cost breakdown structure (WBS) elements and cost accounting code (CAC) elements.accounting code (CAC) elements.

• The objectives should be:The objectives should be: - - clearly achievable and in context;clearly achievable and in context; - linked to organizational and strategic goals;- linked to organizational and strategic goals; - adequately resourced;- adequately resourced; - associated with clear and unambiguous relevant operational support;- associated with clear and unambiguous relevant operational support; - related to some form of measurement and evaluation procedure;- related to some form of measurement and evaluation procedure; - related to stated responsibility and ownership;- related to stated responsibility and ownership; - related to any operational and/or statutory standards;- related to any operational and/or statutory standards; - related and apply to all relevant operational units;- related and apply to all relevant operational units; - stated in the context of specific time scales for implementation;- stated in the context of specific time scales for implementation; - stated in the context of any implementation cost limits that may apply.- stated in the context of any implementation cost limits that may apply.

• Quality assurance is a general term applied to a wide range of Quality assurance is a general term applied to a wide range of tools and processes that are used as drivers to ensure that the tools and processes that are used as drivers to ensure that the quality management system performs and produces results quality management system performs and produces results that comply with what has been specified.that comply with what has been specified.

• Quality assurance also includes the collection and use of Quality assurance also includes the collection and use of information from outside the manufacturing process, and even information from outside the manufacturing process, and even outside the organization. This information is used for some outside the organization. This information is used for some kind of benchmarking and as feedback or input for improving kind of benchmarking and as feedback or input for improving the system.the system.

• Generally, a good quality-assurance system will identify Generally, a good quality-assurance system will identify objectives in relation to workable standards. It will be objectives in relation to workable standards. It will be multifunctional and will operate as part of a continual cycle for multifunctional and will operate as part of a continual cycle for system improvement.system improvement.

• Normally the assurances will be backed up by some kind of Normally the assurances will be backed up by some kind of customer refund or compensation system if the standards are customer refund or compensation system if the standards are not met.not met.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality assuranceQuality assurance

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality assuranceQuality assurance

• Generally a good quality-assurance system will:Generally a good quality-assurance system will:- clearly identify the minimum standards of performance that clearly identify the minimum standards of performance that

are acceptable;are acceptable;- be proactive (where possible);be proactive (where possible);- be reactive (where necessary);be reactive (where necessary);- apply across all sections that are involved in production;apply across all sections that are involved in production;- establish procedures for the collection and analysis of establish procedures for the collection and analysis of

performance data;performance data;- be established in the context of any relevant audit and be established in the context of any relevant audit and

performance review procedures.performance review procedures.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality controlQuality control

• Quality assurance is concerned with proactively Quality assurance is concerned with proactively established drivers and standards of performance. established drivers and standards of performance. Quality control is concerned with the evaluation of how Quality control is concerned with the evaluation of how well these standards or targets are actually being well these standards or targets are actually being achieved, and reacting to any deviations. Quality control achieved, and reacting to any deviations. Quality control is therefore based on a retrospective approach.is therefore based on a retrospective approach.

• The process can involve observing, sampling, collecting The process can involve observing, sampling, collecting and processing actual performance data, comparing and processing actual performance data, comparing actual to planned, calculating variances, and identifying actual to planned, calculating variances, and identifying reasons for divergences from planned performance. For reasons for divergences from planned performance. For every divergence identified, the quality control system every divergence identified, the quality control system has to be able to recommend the necessary remedial has to be able to recommend the necessary remedial action in order to correct the situation.action in order to correct the situation.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality controlQuality control

• A quality control system should:A quality control system should:- measure and confirm actual performance;measure and confirm actual performance;- compare target and actual performance and generate compare target and actual performance and generate

performance variances;performance variances;- identify significant performance variances;identify significant performance variances;- identify the sources of significant performance variances;identify the sources of significant performance variances;- initiate suitable corrective actions;initiate suitable corrective actions;- assign ownership and specific responsibilities;assign ownership and specific responsibilities;- monitor the effectiveness of corrective actions;monitor the effectiveness of corrective actions;- generate suitable reports and control outputs.generate suitable reports and control outputs.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality auditQuality audit

• The idea is that an independent check is carried out by impartial The idea is that an independent check is carried out by impartial personnel in order to ensure that the project’s quality performance personnel in order to ensure that the project’s quality performance standards are being met.standards are being met.

• In general terms an audit system should confirm that:In general terms an audit system should confirm that:- quality assurance procedures have been observed and complied with;quality assurance procedures have been observed and complied with;- quality control performance figures have been correctly assembled;quality control performance figures have been correctly assembled;- all relevant issues have been included;all relevant issues have been included;- all processes, all analysis and reporting, all proposed corrective actions, all processes, all analysis and reporting, all proposed corrective actions,

all monitoring and control systems, all reporting systems have complied all monitoring and control systems, all reporting systems have complied with any relevant internal standards and with any external statutory with any relevant internal standards and with any external statutory regulations;regulations;

- any appropriate areas for improvement have been identified and any appropriate areas for improvement have been identified and correctly addressed;correctly addressed;

- all plans and strategies for improvement have been correctly assembled all plans and strategies for improvement have been correctly assembled and implemented;and implemented;

- any possible areas of misdirection or misinterpretation have been any possible areas of misdirection or misinterpretation have been addressed;addressed;

- the system is free of corruption.the system is free of corruption.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality Assurance Plan and ReviewQuality Assurance Plan and Review

• The quality management plan is analogous to the PMS and The quality management plan is analogous to the PMS and project cost plan. It breaks down the quality objectives of the project cost plan. It breaks down the quality objectives of the organization and expresses them in terms of individual targets organization and expresses them in terms of individual targets for different sections of the organization.for different sections of the organization.

• The quality assurance plan itself can be formulated fairly easily The quality assurance plan itself can be formulated fairly easily by producing a quality assurance matrix using combined OBS by producing a quality assurance matrix using combined OBS (organization breakdown structure) and WBS elements, broken (organization breakdown structure) and WBS elements, broken down into work packages and assigned using a TRM (task down into work packages and assigned using a TRM (task responsibility matrix) .responsibility matrix) .

• The quality assurance matrix is generally developed by a project The quality assurance matrix is generally developed by a project quality assurance team or, alternatively, by the project manager. quality assurance team or, alternatively, by the project manager. It shows what is required, who is responsible for achieving it and It shows what is required, who is responsible for achieving it and how that person is to achieve his objectives. It is essentially a how that person is to achieve his objectives. It is essentially a TRM applied to quality management.TRM applied to quality management.

• The plan (and review) has to be dynamic. It has to be able to The plan (and review) has to be dynamic. It has to be able to respond to changes in the production system and client base.respond to changes in the production system and client base.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality Assurance Plan and ReviewQuality Assurance Plan and Review

• Generally, a good quality plan will:Generally, a good quality plan will:- establish clear targets for the achievement of any stated establish clear targets for the achievement of any stated

objectives;objectives;- ensure that all targets are achievable;ensure that all targets are achievable;- allow for any interdependencies between activities;allow for any interdependencies between activities;- allow reasonable provision for response to change;allow reasonable provision for response to change;- include reasonable contingency planning;include reasonable contingency planning;- clearly specify performance objective success criteria;clearly specify performance objective success criteria;- establish relevant risk profiles for each affected section and establish relevant risk profiles for each affected section and

activity;activity;- include provision for all performance variance corrective actions;include provision for all performance variance corrective actions;- include ownership and specific responsibilities;include ownership and specific responsibilities;- include provision for the monitoring and control of the effectiveness include provision for the monitoring and control of the effectiveness

of corrective actions;of corrective actions;- include provision for the generation of suitable reports and control include provision for the generation of suitable reports and control

outputs;outputs;- be fully accountable for overall performance improvement.be fully accountable for overall performance improvement.

The Quality Management ‘Six Pack’The Quality Management ‘Six Pack’Quality Control ToolsQuality Control Tools

• The main tools used in quality management concentrate on The main tools used in quality management concentrate on either identification of a problem, or analysis, or both.either identification of a problem, or analysis, or both.

• Identification tools:Identification tools:- Data tables;Data tables;- Pareto analysis;Pareto analysis;- Brainstorming techniques (including the Delphi Method and Brainstorming techniques (including the Delphi Method and

Nominal Group Technique):Nominal Group Technique):- SWOT Analysis.SWOT Analysis.

• Analysis Tools:Analysis Tools:- Scatter Diagrams;Scatter Diagrams;- Control Charts.Control Charts.

• Identification and Analysis Tools:Identification and Analysis Tools:- Cause and Effect Analysis;Cause and Effect Analysis;- Trend Analysis;Trend Analysis;- Decision Analysis.Decision Analysis.


• Data tables provide a simple method for collecting and arranging quality Data tables provide a simple method for collecting and arranging quality data. The main applications are in repetitive operations, where the same data. The main applications are in repetitive operations, where the same materials are being produced by the same suppliers and are being materials are being produced by the same suppliers and are being consumed by the same client.consumed by the same client.


• A Pareto diagram is a type of histogram. The objective is to A Pareto diagram is a type of histogram. The objective is to produce a graphical representation that identifies problem produce a graphical representation that identifies problem areas. It also gives an approximation of the relative value or areas. It also gives an approximation of the relative value or size of the problem area. It isolates area of nonconformity in size of the problem area. It isolates area of nonconformity in data presentations and, by doing so, it draws the attention data presentations and, by doing so, it draws the attention towards the most frequently occurring element.towards the most frequently occurring element.

• Scatter diagrams analyze the correlation between two quality Scatter diagrams analyze the correlation between two quality variables. They are based on the concept of having dependent variables. They are based on the concept of having dependent and independent variables.and independent variables.

• Control charts are an example of a preventive approach. They Control charts are an example of a preventive approach. They attempt to prevent defects, rather than detecting and isolating attempt to prevent defects, rather than detecting and isolating them after they have occurred. Most form of control chart are them after they have occurred. Most form of control chart are based upon a standard normal distribution.based upon a standard normal distribution.


• Cause and effect analysis comprises six major stages:Cause and effect analysis comprises six major stages:- identify the source of the problem;identify the source of the problem;- establish the problem box and primary arrow. The problem establish the problem box and primary arrow. The problem

box represents the end result of whatever is wrong with the box represents the end result of whatever is wrong with the system. The prime arrow represents the sum total of all the system. The prime arrow represents the sum total of all the possible factors that could produce the problem;possible factors that could produce the problem;

- identify all possible primary causes and effects;identify all possible primary causes and effects;- identify all possible primary cause and effect components;identify all possible primary cause and effect components;- develop a proposed course of corrective action. The develop a proposed course of corrective action. The

analysis is now reversed so that the problem box becomes analysis is now reversed so that the problem box becomes the “solution box” and the prime arrow now represents a the “solution box” and the prime arrow now represents a solution strategy.solution strategy.


Primary causes and effect and components

Corrective action from cause and effect analysis


• Decision analysis includes a number of stages:Decision analysis includes a number of stages:- identify the problem;identify the problem;- analyze potential consequences;analyze potential consequences;- determine the best course of corrective action;determine the best course of corrective action;- carry out the corrective action;carry out the corrective action;- monitor to ensure that the corrective action works;monitor to ensure that the corrective action works;- repeat the process as required until the problem is corrected.repeat the process as required until the problem is corrected.

• The primary decision-analysis tools:The primary decision-analysis tools:- algorithmalgorithm which is simply a sequence of instructions for which is simply a sequence of instructions for

diagnosing a problem;diagnosing a problem;- means-end chain;means-end chain;- decision tree;decision tree;- Monte-Carlo simulation.Monte-Carlo simulation.


• A means-end chain is a method A means-end chain is a method for laying out and analyzing a for laying out and analyzing a chain of events, where the end chain of events, where the end result depends on the chain of result depends on the chain of events being successfully events being successfully completed. A means-end chain completed. A means-end chain is based on the logic that what is based on the logic that what is an objective at one level is an objective at one level within the system might be a within the system might be a starting point for another set of starting point for another set of objectives higher up in the objectives higher up in the system.system.

7.5 Total Quality Management7.5 Total Quality Management

• TQM is a structured approach to organization-wide quality TQM is a structured approach to organization-wide quality management.management.

• It has to be continuous and applied throughout the It has to be continuous and applied throughout the organization in order to produce quality products that exceed organization in order to produce quality products that exceed the expectations of the customers.the expectations of the customers.

• TQM needs committed employees. It is based on the overriding TQM needs committed employees. It is based on the overriding assumption that most quality problems originate from the assumption that most quality problems originate from the process rather than from the operatives.process rather than from the operatives.

• There are some systems where it is easier to achieve high There are some systems where it is easier to achieve high employee commitment than others (for example, aircrew).employee commitment than others (for example, aircrew).

• High commitment can also be engineered to some extent. In High commitment can also be engineered to some extent. In the case of a complex production line, the process may be the case of a complex production line, the process may be designed so that human input is relatively small and that, designed so that human input is relatively small and that, where it occurs, there is no possibility of error or omission. where it occurs, there is no possibility of error or omission.

Total Quality ManagementTotal Quality Management

• A TQM system has to have a formal structure in order to A TQM system has to have a formal structure in order to function. Most TQM systems comprise eight major function. Most TQM systems comprise eight major components:components:- commitment phase (developing internal resolve);- commitment phase (developing internal resolve);- mission phase (defining objectives and strategy);- mission phase (defining objectives and strategy);- customer phase (identifying what the customer wants);customer phase (identifying what the customer wants);- process phase (tactical analysis);process phase (tactical analysis);- vision phase (generation of eventual outcomes);vision phase (generation of eventual outcomes);- risk management phase (risk assessment and management risk management phase (risk assessment and management

strategy);strategy);- planning phase;planning phase;- breakthrough and implementation phase (tactical move and breakthrough and implementation phase (tactical move and

monitoring).monitoring).


Typical TQM implementation phases


• TQM implementation has three major components:TQM implementation has three major components:- The The breakthrough phasebreakthrough phase is the mechanics that allow the is the mechanics that allow the

strategic and annual plans to be put into operation. The strategic and annual plans to be put into operation. The process generally involves section heads in establishing process generally involves section heads in establishing processes for the implementation of the goals that have been processes for the implementation of the goals that have been set. This is done by the selection of a small number of set. This is done by the selection of a small number of breakthrough itemsbreakthrough items or activities (quick-win activities); or activities (quick-win activities);

- Daily application managementDaily application management (DAM) relates to the long-term (DAM) relates to the long-term implementation of the system DAM is the process of implementation of the system DAM is the process of establishing objectives followed by continual assessment and establishing objectives followed by continual assessment and monitoring and then comparing this with the progress monitoring and then comparing this with the progress required in the plan to meet the overall goals and end visions.required in the plan to meet the overall goals and end visions.

- Interdepartmental (cross-functional) managementInterdepartmental (cross-functional) management (CFM) is the (CFM) is the control of the TQM system across the different organizational control of the TQM system across the different organizational and functional boundaries. It ensures that all groups within the and functional boundaries. It ensures that all groups within the organization are working together towards a common purpose.organization are working together towards a common purpose.

Advantages and disadvantages of TQM Advantages and disadvantages of TQM systemssystems

• Advantages:Advantages:- increased organizational awareness;- increased organizational awareness;- increased appreciation of the links between processes and - increased appreciation of the links between processes and performance;performance;- increased efficiency;- increased efficiency;- improved communications;- improved communications;- improved employee performance;- improved employee performance;- improved operational systems;- improved operational systems;- improved external relationships;- improved external relationships;- improved reputation;- improved reputation;- opening potential new markets.- opening potential new markets.

• Disadvantages:Disadvantages:- cost;- cost;- inconvenience;- inconvenience;- selling;- selling;- distribution;- distribution;- training;- training;- dilution.- dilution.

7.6 Configuration Management7.6 Configuration Management

• Configuration management is a control technique for formal Configuration management is a control technique for formal review and approval of change on a project. In particular, it is review and approval of change on a project. In particular, it is about controlling the information that relates to change.about controlling the information that relates to change.

• If properly executed, a good configuration management If properly executed, a good configuration management system (CMS) provides a comprehensive change-control and system (CMS) provides a comprehensive change-control and management system. It also acts as a focus for change management system. It also acts as a focus for change proposal and consideration and as an interface for client and proposal and consideration and as an interface for client and contractor responses and communications.contractor responses and communications.

• The main components of a CMS are:The main components of a CMS are:- configuration format and layout;configuration format and layout;- configuration identification specification;configuration identification specification;- configuration change control system;configuration change control system;- configuration status accounting and reporting;configuration status accounting and reporting;- configuration auditing and feedback.configuration auditing and feedback.

Configuration ManagementConfiguration Management• Configuration format and layout is the way in which the CMS is Configuration format and layout is the way in which the CMS is

assembled in relation to its environment and the characteristics of the assembled in relation to its environment and the characteristics of the project. The CMS will depend on the limitations that are applied to the project. The CMS will depend on the limitations that are applied to the project.project.

• Typical configuration item information that might be useful to the Typical configuration item information that might be useful to the project manager might be date of drawing issue, drawing revision project manager might be date of drawing issue, drawing revision number, drawing author and authorizer, data when drawing received number, drawing author and authorizer, data when drawing received by project team members, and similar.by project team members, and similar.

• Configuration identification specification comprises the allocation of Configuration identification specification comprises the allocation of codes to the identified items. The codes are designed to provide a codes to the identified items. The codes are designed to provide a range of specific information unique to each configuration item.range of specific information unique to each configuration item.

• A configuration change control system typically includes facilities for A configuration change control system typically includes facilities for preparation of change request and management of the implementation preparation of change request and management of the implementation of approved changes.of approved changes.

• Configuration status accounting and reporting (CSAR) provides for the Configuration status accounting and reporting (CSAR) provides for the updated recording of current configuration identification and historical updated recording of current configuration identification and historical baselines and approved changes. It also acts as a register of pending baselines and approved changes. It also acts as a register of pending change and reports on the status of implementation of approved change and reports on the status of implementation of approved changes.changes.

• Configuration auditing and feedback includes a review of development Configuration auditing and feedback includes a review of development test plans and test results as well as a summary of required tests not test plans and test results as well as a summary of required tests not yet performed. It also provides details on deviation from plan.yet performed. It also provides details on deviation from plan.

7.7 Concurrent Engineering and Time-7.7 Concurrent Engineering and Time-Based CompetitionBased Competition

• Concurrent engineering is basically an approach to support time-based competition, which is about developing new products and then getting them to the market before the competition does.

• Concurrent engineering allows the project development and construction phases to develop and run concurrently. The actual phases may not operate in parallel, but the contributions from the various members of the design team are made in parallel as opposed to serially.

• Phased concurrent engineering occurs where the project is separated into individual work packages and each package retains a separate design and execution phase. However, the sequential arrangement of the packages is blurred and some overlap takes place between the various packages; in each case, however, package design is complete before package execution commences.

• Fast-track concurrent engineering occurs where individual package design and execution overlap and also each individual work package overlaps.

Concurrent Engineering and Concurrent Engineering and Time-Based CompetitionTime-Based Competition

Typical phased concurrent engineering arrangement

Concurrent Engineering and Concurrent Engineering and Time-Based CompetitionTime-Based Competition

Typical fast-track concurrent engineering arrangement

Review QuestionsReview Questions ( (Module 7)Module 7)Quality management as a conceptQuality management as a concept

• True or False?True or False?7.1 The primary objective of a quality management system is to

produce to the minimum standard acceptable to the customer at the lowest production cost.

7.2 A good quality management system should ensure that goods exceed customer expectations.

7.3 In most cases, quality is a separate project variable that can be planned and operated separately from other project variables.

7.4 Most cost–quality curves are linear for most of their functionality.

7.5 There is no upper limit for defect proportionality, provided that all defects are covered by adequate warranties or guarantees.

7.6 The true cost of defective work is equal to the cost of honoring all the warranties or guarantees that apply in the system.


7.7 The true value of quality equals the cost of production plus the cost of implementing quality improvements.

7.8 The true value of payback can be far higher than net product sales income.

7.9 Most quality management systems are responsive rather than predictive or programmed, as responsive applications are easier to monitor and control.

7.10 BS5750 was a guarantee of quality assured production.

7.11 BS5750 has now been superseded by ISO9000. 7.12 ISO9000 is a European quality standard.


• Multiple choice questionsMultiple choice questions7.35 Quality management systems should generally seek to

manufacture goods that exceed customer expectations at A a higher price; B a lower price C the same price.7.36 Generally, most cost–quality relationships have a direct

functionality that can be expressed as which of the following?

A Direct proportionality; B Linear; C Curvilinear; D Complex function.7.37 The true cost of defects can be said to include:

A cost of honouring guarantees and warranties;B ditto plus cost of loss of reputation;C ditto plus issue of replacement goods;D other.


7.38 Most clients set project objectives that are based on which of the following?A Success criteria;B Failure criteria;C Both success and failure criteria;D Neither success or failure criteria.

7.39 True payback can be expressed in relation to value payback as beingA greater; B equal; C less; D greater or less.

7.40 An EU company that wants to show that it is accredited to the most appropriate European quality standard would seek accreditation throughA BS5750; B ISO9000; C ISO10006; D BS4690.

Review QuestionsReview Questions ( (Module 7)Module 7)Quality gurusQuality gurus

• True or false?True or false?7.13 In a well structured and efficiently managed

organisation, quality management has to be applied throughout all sections. It can never work effectively if it is only applied to some parts of the organisation.

7.14 Most quality problems can be traced back to operative inefficiency and are rarely the fault of the process.

7.15 Most quality management systems have to be based on the objectives and preferences of the customer.


• Multiple choice questionsMultiple choice questions7.41 Which of the following areas of the organisation are

generally agreed by quality management gurus as the most important in setting up an effective quality-management system? A Senior management; B Production processes; C Quality control; D Administrative support; E All sections irrespective of function.

7.42 In which main area do quality problems generally arise?A The management of the system; B The production process; C The people involved; D Administration and support;E Monitoring and checking.

7.43 In general terms, quality management procedures and systems should be designed primarily in relation toA company objectives; B customer requirements;C market research outcomes; D overall strategy.

7.44 The Deming approach appeals more to theA democratic manager; B authoritarian (control freak) manager;C human resource-type manager; D any of the three.


7.45 The Juran approach appeals more to the A democratic manager; B authoritarian (control freak) manager; C

human resource-type manager; D any of the three.7.46 The Crosby approach appeals more to the

A democratic manager; B authoritarian (control freak) manager; C human resource-type manager; D any of the three.

7.47 The Imai approach appeals more to the A democratic manager; B authoritarian (control freak) manager; C

human resource-type manager; D any of the three.

Review QuestionsReview Questions ( (Module 7)Module 7)The quality management Six PackThe quality management Six Pack

True or false?True or false?7.16 The quality management six pack comprises quality policy, quality

objectives, quality assurance, quality control, quality audit, and quality assurance plan and review.

7.17 Quality policies are generally insurance-backed guarantees of the quality performance of the company.

7.18 Most types of organisation have to have a published quality policy by law.

7.19 Quality objectives are effectively part of the quality policy. The objectives convert the main aspects of the policy into individual statements of what has to be done by individual sections in order to achieve the overall policy outcomes.

7.20 Generally, a good quality-assurance system will identify objectives in relation to workable standards. It will be unifunctional and will operate as part of a continual cycle for system improvement.

7.21 Quality assurance is based on the establishment of quality targets against which actual performance can be evaluated.

7.22 Quality control is based on performance evaluation and the identification of quality variances between actual and target standards.


Multiple choice questionsMultiple choice questions

7.48 Quality policy is a statement of the organisation’s A overall strategic approach to quality management.B firm commitment to quality improvement.C individual quality targets for reach section.D guaranteed levels of performance and service.

7.49 Which of the following are quality objectives?A Individual section targets derived from the quality policy.B Strategic quality objectives of the organisation as a whole.C Individual improvement increments to comply with statutory requirements.D Operational constraints.

7.50 Quality assurance is based aroundA providing guarantees of quality through the issue of warranties.B use of statistical techniques to evaluate quality variances by comparing

target to actual performance values.C the establishment of objective-based quality performance targets for

subsequent performance analysis.D relying on people to maintain collective standards.


Multiple choice questionsMultiple choice questions7.51 Quality control is based aroundA the use of statistical techniques to evaluate quality variances by comparing target

to actual performance values.B guaranteeing compliance with the terms and conditions of the appropriate quality-

control standard.C setting individual targets for performance. D complying with statutory requirements.7.52 Quality audit is a procedure for ensuring thatA all quality management costs are accurately recorded and justified.B the quality management endeavours of the organisation can be written off against

tax.C the quality management system is operating to the standards set within the

strategic quality plan.D countering corruption.7.53 Quality plan and review is a process forA establishing a formal planning process for the implementation and review of the

quality management system.B establishing individual quality targets for each section of the organisation.C establishing a cost plan for the cost of the implementation of the quality

management system.D cost control.

Review QuestionsReview Questions ( (Module 7)Module 7)Total quality management Total quality management

True or false?True or false?7.23 Total Quality Management (TQM) is quality management applied

throughout the organisation.7.24 TQM implementation has three major components: breakthrough,

daily application management, and interdepartmental cross-functional management.

7.25 Breakthroughs are generally large-scale, fundamental quality improvements. They may involve significant investments by the organisation.

7.26 Daily application management is the long-term implementation of the system. It is a process of continual assessment and monitoring in order to assess performance, comparing this with the progress required in the plan to meet the overall goals and end vision.

7.27 Interdepartmental cross-functional management is the measurement of the performance of individual components of the system so that a quality implementation report can be prepared for senior management.

Review QuestionsReview Questions ( (Module 7)Module 7)Total quality managementTotal quality management

Multiple choice questionsMultiple choice questions7.54 Total Quality Management (TQM) is basically

A the same as quality management.B a quality management applied to all sections of the system.C as in B but designed and applied in accordance with the changing demands of the customer.D as in B but applied in terms of breakthrough and day to day implementation and monitoring.

7.55 TQM systems are most readily applied inA one-off innovative applications.B repetitive predictable applications.C research and development applications.D applications with high external input.

7.56 TQM differs from quality management in that it requiresA more observation and sampling.B less observation and sampling.C no observation and sampling.D co-operation form operatives.

Review QuestionsReview Questions ( (Module 7)Module 7)Configuration managementConfiguration management

True or false?True or false?7.28 Configuration management is essentially the process

of managing change on projects. 7.29 Configuration status accounting and reporting (CSAR)

is a method of recording current configuration identification, historical baselines and approved changes.

7.30 Configuration audit and feedback provides a review method for the development of the configuration management systems used on projects.

Review QuestionsReview Questions ( (Module 7)Module 7)Configuration managementConfiguration management

Multiple choice questionsMultiple choice questions7.57 Configuration management is about the control of

A time; B cost; C quality D communication and change.7.58 A change control panel is responsible for

A the approval of variation orders;B costing variation orders; C considering the implications of change and authorising

where appropriate; D considering the impact of one change on a project in terms

of the performance of the organisation as a whole.

Review QuestionsReview Questions ( (Module 7)Module 7)Concurrent engineering and time-based Concurrent engineering and time-based

competitioncompetition

True or false?True or false?7.31 Concurrent engineering is basically an approach to

support time-based competition. 7.32 Time-based competition is about developing new

products and getting them to the market before the competition does.

7.33 Phased concurrent engineering is where the project is separated into individual work packages and each package retains a separate design and execution phase. However, some overlap takes place between the various packages.

7.34 Fast-track concurrent engineering occurs where individual package design and execution overlap and also each individual work package overlaps.

Review QuestionsReview Questions ( (Module 7)Module 7)Concurrent engineering and time-based Concurrent engineering and time-based

competitioncompetition

Multiple choice questionsMultiple choice questions7.59 Concurrent engineering is about

A overlapping design phases; B overlapping execution phases; C overlapping both design and execution phases; D overlapping milestone

dates.7.60 In phased concurrent engineering, the project is split up into

packages and each package is expressed in terms of design and execution. Packages are then

A crashed; B subject to trade-off analysis; C overlapped; D blurred.

7.61 In fast-track concurrent engineering, the project is split up into packages and each package is expressed in terms of design and execution. Packages are then overlapped

A both in terms of design and execution; B in terms of design only;C in terms of execution only; D in terms of neither design or execution.

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