Session 27 - 24.4.19 Project Quality Management

UPES – The Nation Builders University
Session 27
24th April 2019
Centre for
Continuing Education
Project Quality Management
Centre for
The cost of quality
It’s a term that’s widely used – and widely

misunderstood.
The “cost of quality” isn’t the price of creating a

quality product or service.
It’s the cost of NOT creating a quality product or

service.
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Every time work is redone, the cost of quality increases
• The reworking of a manufactured item.
• The retesting of an assembly.
• The rebuilding of a tool.
• The correction of a bank statement.
• The reworking of a service
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COST OF QUALITY PROBLEM
1000x
100x
10x
x
Specs design produce install
When problem identified
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Quality costs increase over time
Failure Costs Liability costs
Failure found by customer

Field repair costs
Failure found at installation
Failure found at final inspection

Failure found at onset of manufacture
Failure found during design phase
Prevention Costs
Time when failure found
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Hidden Costs of Poor Quality
Reprocessing
Customer returns
Rejects
Warranty expenses
Lost sales Loss of goodwill

Overtime to correct errors
Process downtime
Extra inventory Delays
Premium freight costs Extra process capacity
Extra inventory
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Cost of Quality
 Cost of Achieving Good Quality
◦ Prevention costs
 costs incurred during product design
◦ Appraisal costs
 costs of measuring, testing, and analyzing
 Cost of Poor Quality
◦ Internal failure costs
 include scrap, rework, process failure, downtime,
and price reductions
◦ External failure costs
 include complaints, returns, warranty claims,
liability, and lost sales
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Cost of Quality
2. These two main areas can be split further as shown below:
FIGURE 1.3
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1-10-100 Rule
1
Prevention
10
$ $
Correction
$ $
100
Failure $
$
$
$
$
$
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Three aspects of Project Quality Management
Quality Management Plan helps to identify which quality requirements and

standards are relevant to the project and product. It also helps you to determine
how to satisfy those standards and to document the quality control processes to
be used.
Quality Assurance involves executing quality process activities and auditing quality
control measures. This is to ensure that the team uses the correct standards and
operational definitions – that it carries out what it planned to do.
Quality Control includes measuring, evaluating, and documenting project results

to determine whether the results meet project quality standards. This process
helps you to determine when changes are necessary.
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QUALITY ASSURANCE
Quality Assurance is to ensure that the performing

organization uses appropriate policies and work methods to
fulfill the project's quality standards.
The goal of the Perform Quality Assurance process is to

ensure that an organization uses appropriate policies and
work methods during a project to meet customers' needs.
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QUALITY CONTROL
Throughout a project, it involves performing the activities as

outlined in the quality management plan, and monitoring
the results.
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Seven basic quality tools
• Cause and effect diagrams

• Control charts
• Flowcharts
• Histograms
• Pareto diagrams
• Check sheets
• Scatter diagrams.
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The Cause and Effect Diagram is basically used to

investigate a problem, exploring, identifying, and
displaying the possible causes.
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Manpowe Materials
r
Typos
Source info incorrect
Wrong source info
Didn’t follow proc.
Dyslexic Transposition
Wrong purchase order
Incorrect shipping
documents
Glare on
Temp. display Corrupt
data
No training
Environment
No procedure
Keyboard sticks
No communications
Software problem
Methods Machine
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Flow charts
Visual illustration of the sequence of operations required to
complete a task
• Schematic drawing of the process to measure or improve.
• Starting point for process improvement
• Potential weakness in the process are made visual.
• Picture of process as it should be.
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Flowcharts
Some standard symbols
Start or end
An activity
a decision point in the process.
a point at which the flowchart connects

with another process.
An off page connection
All records are identified
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END
5 - Action Assignee
performs detail
analysis of failure. No
Start Requests failure
analysis as needed. 11 - Fleet Analysis
Still monitors failure to
failing? ensure corrective
action is effective.
1- Fleet Analysis
Yes
utilizes data
Yes
warehouse reports to 6 - Action Assignee
create and distribute documents
a selection matrix. 10 - FRB determines
investigation
required corrective
findings.
action - i.e. QAM or
supplier corrective
2 - Other Groups action.
compile data as
determined by FRB.
7 - Action Assignee 9 - FRB Categorize
reports investigation Failure: Workmanship,
3 - FRB meets to results to FRB. Still component, material,
No
analyze data. failing? maintenance, or
design. Also fleet
wide or RSU.
4 - FRB selects 8 - Fleet Analysis

candidate problems monitors failed item
for additional to ensure failure has
investigation. been corrected.
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Check sheet
A form or sheet used to record data.
Tool for collecting and organizing measured or

counted data
Data collected can be used as input data for other
quality tools
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Example of a simple check sheet. (for car valet operation)

Car type XYZ
Car registration AB XY C 1234
Interior vacuumed √
Upholstery cleaned √
Dash board cleaned √
De odorised √
Body washed √
Washed waxed & Polished √
Under car washed √
Wheels washed √
Tyres blacked √
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Example of a simple process check sheet. (attributes)
Model XYZC217 Batch
1
failures 1 2 3 4 5 6 7 8 9 0
Power up
1 2 1
Boot up
6 4 2 1 2
Sink test
2 1 1 1
Case damage
1 1 2
Keyboard damage
Monitor damaged
1 2
Bundled s/w included

3 1 3
Checked by a l l r a
pj m jj [j m m m pj m pj
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Check sheets
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Histogram
To determine the spread or variation of a set of data
points in a graphical form
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340.4 330.9 340.4 331.2 335.7
337.6 330.2 340.4 341.3 335.7
339.7 320.5 345.1 340.4 335.7
330.0 334.2 332.8 330.9 340.4
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FREQUENCY DISTRIBUTION TABLE
Number of observations = 20
number of classes = √ 20 = 4.47 = 5
Smallest value = 320.5
Largest value = 345.1
Range = 24.6
Class width = 24.6 / 5 =4.92 = 5
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FREQUENCY DISTRIBUTION TABLE
class f F
320.45 – 325.35 1 1
325.35 – 330.25 2 3
330.25 – 335.15 5 8
335.15 – 340.05 5 13
340.05 – 344.95 6 19
344.95 – 349.85 1 20
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.
.
.
.
.
.
.......
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Pareto analysis is used to prioritize problems.
Based on famous 80-20 rule
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120
100
80
Quantity
60
40
20
0
Dent Scratch Hole Others Crack Stain Gap
Defects 104 42 20 14 10 6 4
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CONTROL CHARTS
A tool for monitoring and thereby controlling

the process characteristics
Control charts for variables X - R chart

Control charts for attributes p chart
c chart
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GENERAL LAYOUT OF A CONTROL

CHART
USL
+ 3 SD UCL
- 3 SD LCL
LSL
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P chart (fraction defective chart)
p number defective / number inspected

p total number defective / total inspected
Control limits
Central line p
UCL p + 3 p (1-p)
n
LCL p -3 p (1-p)
n
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Statistical Process Control with p Charts
Sample (day) Items Defective Percentage

1 200 10 0.050
2 200 8 0.040
3 200 9 0.045
4 200 13 0.065
5 200 15 0.075
6 200 25 0.125
7 200 16 0.080
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Statistical Process Control with p Charts
UCL = 0.117
p = 0.066
LCL = 0.015
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Scatter diagram
To identify the correlations that might exist between a

quality characteristic and a factor that might be driving it
A scatter diagram shows the correlation between two

variables in a process.
Dots representing data points are scattered on the diagram.
The extent to which the dots cluster together in a line across

the diagram shows the strength with which the two factors
are related.
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Scatter diagrams
Constructing scatter diagram
In order to construct a scatter diagram you need two
variables to be plotted against each other. One on the x
axis the other on the y axis.
The relationship is then plotted.
Variable b
relationship
Variable a
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Scatter diagrams
Constructing scatter diagram
This process is continued, showing the effect of changes in
one of the variables against the other variable.
Variable b
Variable a
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Session 27 - 24.4.19 Project Quality Management

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UPES – The Nation Builders University

24th April 2019

Project Quality Management

The cost of quality

It’s a term that’s widely used – and widely

The “cost of quality” isn’t the price of creating a

It’s the cost of NOT creating a quality product or

Every time work is redone, the cost of quality increases

• The reworking of a manufactured item.

• The retesting of an assembly.

• The rebuilding of a tool.

• The correction of a bank statement.

• The reworking of a service

Specs design produce install

When problem identified

Quality costs increase over time

Failure Costs Liability costs

Failure found by customer

Failure found at installation

Failure found at final inspection

Time when failure found

Hidden Costs of Poor Quality

Lost sales Loss of goodwill

Three aspects of Project Quality Management

Quality Management Plan helps to identify which quality requirements and

Quality Control includes measuring, evaluating, and documenting project results

Quality Assurance is to ensure that the performing

The goal of the Perform Quality Assurance process is to

Throughout a project, it involves performing the activities as

Seven basic quality tools

• Cause and effect diagrams

The Cause and Effect Diagram is basically used to

a decision point in the process.

a point at which the flowchart connects

An off page connection

All records are identified

4 - FRB selects 8 - Fleet Analysis

A form or sheet used to record data.

Tool for collecting and organizing measured or

Example of a simple check sheet. (for car valet operation)

Dash board cleaned √

Washed waxed & Polished √

Under car washed √

Example of a simple process check sheet. (attributes)

Model XYZC217 Batch

Bundled s/w included

340.4 330.9 340.4 331.2 335.7

337.6 330.2 340.4 341.3 335.7

339.7 320.5 345.1 340.4 335.7

330.0 334.2 332.8 330.9 340.4

FREQUENCY DISTRIBUTION TABLE

FREQUENCY DISTRIBUTION TABLE

Pareto analysis is used to prioritize problems.

Based on famous 80-20 rule

A tool for monitoring and thereby controlling

Control charts for variables X - R chart

GENERAL LAYOUT OF A CONTROL

p number defective / number inspected

Statistical Process Control with p Charts

Sample (day) Items Defective Percentage

Statistical Process Control with p Charts

To identify the correlations that might exist between a

A scatter diagram shows the correlation between two