Facilitators Introduction Zahid Shafiq, PMP

Zahidshafiq7@GMAIL.COM 0333-9299290 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 )

Facilitators Problems
Asks too many questions! Observes punctuality

Participants Introduction

Name Education Professional background & experience Expectations from this course

Understanding Quality Concepts

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? Management in 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

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

Inspection Vs Audit
An inspection is an evaluation or assessment on products, it involves 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

Quality Examples in Disciplines

Discipline
Airlines Health Care Postal Services Academia Consumer Products

Explanation of Quality
On-time, safety, comfortable, low-cost service Correct diagnosis, minimum wait time, lower cost, security faster delivery, correct delivery, cost containment Proper preparation for future, on-time knowledge delivery Properly made, defect-free, cost effective

Communications Clearer, faster, accessible, cost effective

Little q & Bigger Q

Product Quality q
From

Organizational Quality Q
To

Focus has been shifting from product quality to Assurance

Changing Scope of Quality (q to Q)

Material Receiving Sorting Cutting Marking

q
Galvanizing

q
Washing

q
Acid Cleansing

Final Inspection

Q = q1 + q2 + q3 +. qn

 The PDCA Cycle

(The Deming Wheel)

ACT AFTER PROBLEM IDENTIFICATION

PLAN THE WORK

A C
CHECK OUTCOME OF WORK

P D
DO ACCORDING TO PLAN

Cost of Quality
These are the costs refers to cost associated with providing poor quality product/ service. Cost of good quality (cost of conformance) Cost of poor quality (cost of non-conformance)

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 planning o 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

Cost of Poor Quality

These are the costs which are required to spend when there is a conconformity 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-testing o Re-working

Cost of Quality = AC+PC+EFC+IFC

Cost of Quality

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

Exercise
Identify the activities studied in the topic on COST OF QUALITY under the umbrella of Quality Assurance and Quality Control. Prototyping Customer Complaints Training Evaluation Quality Planning Defect identification Process validation Warranties Supplier evaluation

Field testing Calibration of tools/ equipment Following acceptance protocol

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

Diff. b/w Quality Assurance & Control

QA is part of the QMS that aims to provide confidence that quality requirements are being fulfilled and is targeted at predicting and preventing error before their occurrence. Characteristics of QA: Process oriented Starts before projects commence and continues till projects complete Follows preventive approach Interprets and strives to achieve customer requirements and project specifications Follows PDCA cycle Complied through audits

Diff. b/w Quality Assurance & Control

QC is also a part of the QMS focused on fulfilling quality requirements by evaluating and comparing actual performance and planned performance. 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?

Quality Managing Tools

WHY DO WE USE QUALITY MANAGEMENT TOOLS?

Helps to solve problems Helps identify reasons for problems Narrows down your observations Makes decision making easy Brings rationality to your claims

Quality Managing Tools

Basic Steps to Solve Problems:

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

Quality Managing Tools

There are 07 Basic Tools of Quality identified as being most helpful in troubleshooting quality issues. They are called basic because 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

Flow Charts
It visually represent relationships among the activities and tasks that make up a process.
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.

Symbols in Flowcharting
Following standard symbols are used to create process maps: Document/ Report

Terminal

Process Step

Decision

Input/ Output

On-page Connector

Page Connector

Existing Process

Manual Operation

Delay

Manual Input

Types of Flow Charts

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

Detailed Flowchart It maps all the steps and activities that occur in the process including decision points, waiting periods, documents and feedback loops etc.

Types of Flow Charts

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 various participants and the flow of steps among these participants.

Creating a Flow Chart

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

Flow Charts
Exercise: Draw a process map showing the sequence, flow and interaction of activities involved in the process of selection of a GD pilot for Pakistan Air 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

Cause & Effect Diagram

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 4

CATEGORY 5

CATEGORY 6

EFFE CT

CATEGORY 3

CATEGORY 2

CATEGORY 1

Cause & Effect Diagram

Mark Categories Draw Spine Define Problem

Highlight issues

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

No perks

Check Sheet
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
Problem Frequenc y Total

Hard to drive IIII to Office location Low Salary Lesser Perks Salaries getting higher IIIII IIIIIIIIIIIIII IIIIIIIIIII

4 6 13 9

IIIIIIIIIIIIIII

15

High market IIIII demand Flexibility in managemen III t

Pareto Chart
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.

Scatter Plot
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.

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 negative correlation (if x increases, y decreases).

Scatter Plot
HIGH POSITIVE CORELATION LOW NEGATIVE CORELATION

HIGH NEGATIVE CORELATION

NO CORELATION

Run Charts
A run chart is a line graph of data plotted over time. By collecting and charting data over time, you can find trends or patterns in the process

Statistical Concepts
Standard Deviation Square of variance; formula is:

X n xi = = =

xi x = n
mean of values of distribution

No. of values used to calculate standard deviation value of x for each item in distribution

 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.

Standard Deviation

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 Chartillustartion

typical

Out of Control Process

The process is out of statistical control under one of 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, as stated by the rule of seven.

Think of out of control as a lack of consistency and predictability in the process.

Out of Control Process

The Rule of Seven in Control Charts

Refers to non random points 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 are not random and so the process is out of control.

Out of Control Process Rule of Seven

Histogram
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 widths represent class intervals and whose areas are proportional to the corresponding frequencies

How to draw a histogram

SELECT the measures to be examined. For example, you need to study things like time, weight, dimensions and speed etc. COLLECT the data (use a check sheet) PREPARE the frequency table in a sequential form DESIGN the histogram (class interval and class width finalization) DRAW the histogram in a graphical display (using bar graph) INTERPRET the data and draw your observations

Interpretation of Histogram

Interpretation of Histogram

Customer Satisfaction

Customer Requirements & Satisfaction

Continual Improvement of the Quality Management System

C U S T O M E R S

R e q u i r e m e n t s

Product & QMS Input Output Product

C U S T O M E R S

S a t i s f a c t i o n

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.

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

Customer Feedback
Comment Card Customer Questionnaire Toll Free Telephone Numbers Customer Visits Internet & Computer Employee Feedback Customer Complaints

PQM Approach
Project Quality Management

Plan Quality

Perform Quality Assurance

Perform Quality Control

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

 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 issues change 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

Quality in the real world

PLAN QUALITY

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

Plan Quality

Inputs to PLAN QUALITY

Scope Baseline Project Scope Statement, WBS and WBS dictionary Stakeholder Register Identification of major stakeholders impacting or impacted Cost Performance Baseline Gives information about cost availability and thresholds Schedule Baseline Activities information along with start and finish dates

Risk Register
Threats and opportunities impacting quality Enterprise Environmental Factors and Organizational Process Assets

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

Tools & Techniques to PLAN QUALITY

Flowcharting To anticipate expected problems Proprietary Quality Management Methodologies Six Sigma and other tools that can help plan quality Additional Quality Planning Tools Brainstorming, Affinity Diagrams, Matrix diagram and Focus groups etc.

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

Quality Management Plan

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

Constituents of Quality Management Plan

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

Understanding Project Quality

Differences in Approach
Quality Assurance Testing (Quality Control) An activity that looks for where things A mind set that focuses on doing were not done as well as they could be everything as well as possible. done. QA requires high levels of interaction Test requires high levels of technical and focusses the needs of multiple skill to execute procedures for people, groups, and stakeholders to validation. make effective decisions on balance.

Are the business requirements an Does the product satisfy the accurate reflection of the customer's requirements, as written? (Doing things needs? (Doing the right thing.) right.)

Definition:
Assurance is
The act of giving confidence The state of being certain The act of making certain

Quality assurance is 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

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:

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

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

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

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

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

Understanding Project Quality

Importance of Quality Control

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

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

Quality Control Plan

Objectives definition Organizational setup for QC Inspection methodologies Documentation requirements and archiving Communication requirements Reviews

Inputs to PERFORM QUALITY CONTROL

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

Inputs to PERFORM QUALITY CONTROL

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

 C& E Diagram Pareto Chart Histogram Flow Chart Control Chart Run Chart Scatter Plot

Tools & Techniques for PERFORM QUALITY CONTROL

Statistical Sampling Inspection Approves Change Requests Review Requests review for implementation as approved

Outputs from PERFORM QUALITY CONTROL

Quality Control Measurements Documented results of QC activities in specified formats Validated Changes Changed or repaired items are inspected and approved/ disapproved Validated Deliverables Correctness of deliverable Helps in scope verification Organizational Process Updates Filled checklists as records Lessons Learnt documents updates Other Documents

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