Transcript Document 7164397

Project Quality
Management
TOTAL QUALITY MANAGEMENT
BY
Engr. Dr. Attaullah Shah
PhD (Civil Engg.) , MSc ( Str Engg.) , MBA , MA ( Eco) , MSc Envir design
BSc Civil Engg (Gold Medal) , Post Grad Dip in computer ( Gold medal)
Project Director Allama Iqbal Open University
Islaamabad Pakisatn.
[email protected]
[email protected]
Cell: +92-333-5729809
Tel:+92-51-9057212
Fax:+92-51-9250100
What is quality?

All those features of a product (or services)
which are required by the customer.

In this context, quality may include a number of
Different attributes, such as:

Availability- can it be delivered when I want it?
Reliability- will it work first time every time
Responsibilities- will the supplier be reasonably
flexible
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Competence- do the necessary skills and
knowledge exist to perform the service?

Communication- can I contact the supplier
easily and do they speak my language?
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Credibility- do they inspire confidence?
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Security- are their systems and procedures
secure.
Why is quality important?
T h e e f f ec t i v e n e ss of q u al i t y m a na g e m e n t
has been shown to be one of the most
important characteristics of successful
companies. In recent years quality has
become the key in determining many
organizations’ position in respect of their
competitive advantage. Improved quality can
increase revenue and reduce costs, since:

Better quality improves the perceived image of a product or
service and makes customers more likely to buy it.

Higher demand should result in higher sales volume and higher
profits.

Higher quality in manufacturing should result in lower unit costs,
with economies of scale in production and selling.

Higher quality in manufacturing should result in lower waste and
defective rates, which will reduce production cost.

The volume of customer complaints should fall, and warranty
claims should be lower. This will reduce costs.

Better quality in production should result in shorter processing
times and less capital equipment requirements.
The cost of quality

A report into ‘ The effectiveness of the corporate
overhead in British business ‘ by Develin & Partners
(1989), estimates that the average cost of waste and
mistakes in the UK represents 20% of controllable
corporate overhead.
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This includes the cost of ensuring and assuring
quality, as well as the loss incurred when quality is
not achieved. Quality costs can be classified as
prevention cost, appraisal cost, internal failure cost
and external failure cost.
Quality control
Quality control is the traditional approach
co n c er n ed w i t h en s uri n g t hat a c t ual qu a l i t y,
as measured, meets the target or
benchmark standards that have been set. It
is concerned with maintaining quality
standards, rather than improving them and
involves:

Establishing quality standards for a product or service.

Establishing procedures and processes that ought to
ensure that these quality standards are met in a
suitably high number of cases (in other words, quality
acceptance standards are established)
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Monitoring actual quality
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Taking control action in cases where actual quality falls
below the standard.

Procedures for inspecting and checking the quality of
bought – in material’s and production output.
QUALITY ASSURANCE
Quality assurance is the term used where a supplier
guarantees the quality of goods supplied and
allows the customer access while the goods are
being manufactured.
This is usually done through supplier quality
assurance (SQA) officers, who control the
specification of the goods supplied. Quality
assurance may:
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save purchasers quality control and production
costs as items can be passed unchecked straight
to production. This can give large savings in cost
and time inflow production, and can facilitate
Just- in- Time (Jit) production.
help companies to identify and remove the
causes for poor quality goods before production
instead of waiting for the end result
be particularly useful where extensive subcontracting work is carried out, such as in the
motor industry.
TOTAL QUALITY
MANAGEMENT (TQM)
Origins, Evolution &
key elements
WHAT IS QUALITY?
Quality is “fitness for use”
(Joseph Juran)
Quality is “conformance to requirements”
(Philip B. Crosby)
Quality of a product or services is its ability to satisfy
the needs and expectations of the customer
WHAT IS QUALITY
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FEDEX - “PERFORMANCE TO THE
STANDARD EXPECTED BY THE CUSTOMER”
GENERAL SERVICES ADMINISTRATION “MEETING THE CUSTOMER’S NEED THE
FIRST TIME AND EVERY TIME”
BOEING - “PROVIDING CUSTOMERS WITH
PRODUCTS AND SERVICES THAT
CONSISTENTLY MEET THEIR NEEDS AND
EXPECTATIONS”
WHAT IS QUALITY
US DEPARTMENT OF DEFENSE “DOING THE RIGHT THING RIGHT THE
FIRST TIME, ALWAYS STRIVING FOR
IMPROVEMENT, AND ALWAYS
SATISFYING THE CUSTOMER”.
 QUALITY CAN BE DEFINED IN TERMS
OF THE AGENT. WHO IS THE JUDGE
OF QUALITY?

WHAT IS QUALITY
QUALITY INVOLVES MEETING OR
EXCEEDING CUSTOMER
EXPECTATIONS.
 QUALITY APPLIES TO PRODUCTS,
SERVICES, PEOPLE, PROCESSES,
AND ENVIRONMENTS.
 QUALITY IS AN EVER-CHANGING
STATE (I.E., WHAT IS CONSIDERED
QUALITY TODAY MAY NOT BE GOOD
ENOUGH TO BE CONSIDERED
QUALITY TOMORROW).

SIX BASIC CONCEPTS OF
TQM
1.
2.
3.
A COMMITTED AND INVOLVED
MANAGEMENT TO PROVIDE LONGTERM TOP-TO-BOTTOM
ORGANIZATION SUPPORT
AN UNWAVERING FOCUS ON THE
COSTOMER, BOTH INTERNALLY
AND EXTERNALLY.
EFFECTIVE INVOLVEMENT AND
UTILIZATION OF THE ENTIRE WORK
FORCE.
SIX BASIC CONCEPTS OF
TQM
4.
CONTINUOUS IMPROVEMENT OF
THE BUSINESS AND PRODUCTION
PROCESS.
5. TREATING SUPPLIERS AS
PARTNERS.
6. ESTABLISH PERFORMANCE
MEASURES FOR THE PROCESSES.
THE TOTAL QUALITY
APPROACH

TOTAL QUALITY IS AN APPROACH TO
DOING BUSINESS THAT ATTEMPTS TO
MAXIMIZE THE COMPETITIVENESS OF
AN ORGANIZATION THROUGH THE
CONTINUAL IMPROVEMENT OF THE
QUALITY OF ITS PRODUCTS,
SERVICES, PEOPLE, PROCESSES AND
ENVIRONMENTS.
THE TOTAL QUALITY APPROACH
Customer focus
THE TOTAL QUALITY APPROACH
CHARACTERISTICS OF THE TOTAL
QUALITY
 STRATEGICALLY BASED
 CUSTOMER FOCUS (INTERNAL AND
EXTERNAL)
 OBSESSION WITH QUALITY
 SCIENTIFIC APPROACH TO DECISION
MAKING AND PROBLEM SOLVING
 LONG-TERM COMMITMENT
THE TOTAL QUALITY APPROACH
 TEAMWORK

CONTINUAL PROCESS IMPROVEMENT
 EDUCATION AND TRAINING
 FREEDOM THROUGH CONTROL
 UNITY OF PURPOSE
 EMPLOYEE INVOLVEMENT AND
EMPOWERMENT
Evolution of Quality Management
Inspection
Salvage, sorting, grading, blending, corrective
actions, identify sources of non-conformance
Quality
Control
Develop quality manual, process performance
data, self-inspection, product testing, basic
quality planning, use of basic statistics,
paperwork control.
Quality
Assurance
Quality systems development, advanced quality
planning, comprehensive quality manuals, use of
quality costs, involvement of non-production
operations, failure mode and effects analysis, SPC.
TQM
Policy deployment, involve supplier & customers,
involve all operations, process management,
performance measurement, teamwork, employee
involvement.
Deming’s view of a production as a system
Receipt & test of
materials
Suppliers,
materials &
equipment
Production,
assembly,
inspection
Design &
redesign
Distribution
Test of processes, machines,
methods, cost
Consumer
Research
Consumers
Deming’s Chain Reaction
Improve Quality
Provide jobs and
more jobs
Stay in business
Cost decreases because
of less rework, fewer
mistakes, fewer delays,
snags, better use of
machine time and
materials
Productivity improves
Capture the market with
better quality and lower price
The Deming Cycle or PDCA Cycle
PLAN
Plan a change to the process. Predict the
effect this change will have and plan how
the effects will be measured
ACT
DO
Adopt the change as a
permanent modification
to the process, or
abandon it.
Implement the change on
a small scale and measure
the effects
CHECK
Study the results to
learn what effect the
change had, if any.
W. Edwards Deming’s 14 Points
1) Create constancy of purpose towards improvement
of product and services.
2) Adopt the new philosophy. We can no longer live
with commonly accepted levels of delays, mistakes,
defective workmanship.
3) Cease dependence on mass inspection. Require,
instead, statistical evidence that quality is built in.
4) End the practice of awarding business on the basis of
price tag.
W. Edwards Deming’s 14 Points
5) Find problems. It is management’s job to work
continually on the system.
6) Institute modern methods of training on the job.
7) Institute modern methods of supervision of
production workers. The responsibility of foremen
must be changed from numbers to quality.
8) Drive out fear that everyone may work effectively for
the company.
W. Edwards Deming’s 14 Points
9) Break down barriers between departments.
10) Eliminate numerical goals, posters and slogans for
the workforce asking for new levels of productivity
without providing methods.
11) Eliminate work standards that prescribe numerical
quotas.
12) Remove barriers that stand between the hourly
worker and his right to pride of workmanship.
W. Edwards Deming’s 14 Points
13) Institute a vigorous programme of education and
retraining.
14) Create a structure in top management that will push
everyday on the above 13 points.
Deming’s System of Profound Knowledge
Appreciation for
system
Theory about
knowledge
Knowledge
about variation
Knowledge of
psychology
Joseph M. Juran and the Cost Of Quality
2 types of costs:
Unavoidable Costs: preventing defects (inspection,
sampling, sorting, QC)
Avoidable Costs: defects and product failures
(scrapped materials, labour for re-work, complaint
processing, losses from unhappy customers
“Gold in the Mine”
What is TQM?
Constant drive
for continuous
improvement and
learning.
Result Focus
Actions not just
words
(implementation)
Management
by Fact
Passion to deliver
customer value /
excellence
Process
Management
Concern for
employee
involvement and
development
Organisation
response
ability
Partnership
perspective
(internal /
external)
LEARNING AND TQM
Learning
Process Improvement
Quality Improvement
Customer
Satisfaction
Shareholder
Satisfaction
Employee
Satisfaction
BASIC PRINCIPLES OF TQM
Approach
Scope
Scale
Management Led
Company Wide
Everyone is responsible for Quality
Philosophy
Prevention not Detection
Standard
Right First Time
Control
Cost of Quality
Theme
On going Improvement
FOUR KEY PRINCIPLES
•Measure quality so you can affect it
•Focus on a moving customer
•Involve every employee
•Think long term - Act short term
THE CASE FOR QUALITY
1 Success of competitors who take quality seriously
2 Rising expectations of customers
3 Quality differentiates companies from the
competition
4 Narrowing of supplier bases by quality conscious
companies
.
THE CASE FOR QUALITY
5 Growing evidence that growth in market
share comes from sustained quality.
6 Cost advantages
7 High cost of catastrophic failure
8 Inspection poor substitute for right first time
TQM IN CONSTRUCTION INDUSTRY
IMPLEMENTATION OF TQM RESULTED
IN IMPROVED CUSTOMER
SATISFACTION, REDUCED CYCLE
TIMES, DOCUMENTED COST SAVINGS,
AND MORE SATISFIED AND
PRODUCTIVE WORK FORCES.
A TQM PROCESS IMPLEMENTED BY
TEXAS INSTRUMENT (USA) HAS
FOLLOWING OUTCOMES:
THE TQM IN CONSTRUCTION
INDUSTRY
REWORK REDUCED FROM 11% TO
LESS THAN 1% OF PROJECT
 IMPROVED SAFTY AND HEALTH
 REDUCED WORKERS’
COMPENSATION INSURANCE, AND
COMPLETION ON SCHEDULE.

IS QUALITY A SOUND INVESTMENT?
Year
1988
1988
1989
1990
1990
1990
1991
1992
1992
1992
1993
1994
Company
Stock Growth (Oct 94)
Motorola
373.0%
Westinghouse (CNFD)
- 49.6%
Xerox (BPS)
75.9%
General Motors
1.6%
Federal Express
10.6%
IBM (IBM Rochester)
- 34.9%
Selectron
526.9%
AT&T (UCS)
32.2%
AT&T (TSBU)
32.2%
Texas Instruments (DS&E)
106.8%
Zyta
8.4%
Eastman Chemical
18.5%
Total Stock Value
Standard & Poor 500 Stock value
Source: US Dept. of Commerce Study 1995
£23016 (91.8% growth)
£15911 (32.6% growth)
Project Quality management

Project Quality Management processes include
all the activities of the performing organization
that determine quality policies, objectives, and
responsibilities so that the project will satisfy the
needs for which it was undertaken.

It implements the quality management system
through the policy, procedures, and processes of
quality planning, quality assurance, and quality
control, with continuous process improvement
activities conducted throughout, as appropriate.
Project Quality Management processes
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Quality Planning – identifying which quality standards
are relevant to the project and determining how to satisfy
them.
Perform Quality Assurance – applying the planned,
systematic quality activities to ensure that the project
employs all processes needed to meet requirements.
8.3 Perform Quality Control – monitoring specific
project results to determine whether they comply with
relevant quality standards and identifying ways to
eliminate causes of unsatisfactory performance
Project Management and TQM

Modern quality management complements project
management. For example, both disciplines recognize the
importance of:

Customer satisfaction. Understanding, evaluating, defining, and
managing expectations so that customer requirements are met. This
requires a combination of conformance to requirements (the project must
produce what it said it would produce) and fitness for use (the product or
service must satisfy real needs).
Prevention over inspection. The cost of preventing mistakes is
generally much less than the cost of correcting them, as revealed by
inspection.
Management responsibility. Success requires the participation of all
members of the team, but it remains the responsibility of management to
provide the resources needed to succeed.
Continuous improvement. The plan-do-check-act cycle is the basis
for quality improvement
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Quality Planning: Tools and Techniques
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Cost-Benefit Analysis: Quality planning must consider costbenefits tradeoffs. The primary benefit of meeting quality
requirements is less rework, which means higher productivity,
lower costs, and increased stakeholder satisfaction.
Benchmarking involves comparing actual or planned project
practices to those of other projects to generate ideas for
improvement and to provide a basis by which to measure
performance.
Design of Experiments (DOE) is a statistical method that helps
identify which factors may influence specific variables of a
product or process under development or in production.
Cost of Quality (COQ) are the total costs incurred by investment
in preventing nonconformance to requirements, appraising the
product or service for conformance to requirements, and failing to
meet requirements (rework).
Additional Quality Planning Tools
 Other quality planning tools are also often
used to help better define the situation and
help plan effective quality management
activities.
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Quality Planning: Outputs
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Quality Management Plan describes how the project management
team will implement the performing organization’s quality policy. The
quality management plan provides input to the overall project
management plan and must address quality control (QC), quality
assurance (QA),and continuous process improvement for the
project.
Quality Metrics A metric is an operational definition that describes,
in very specific terms, what something is and how the quality control
process measures it. A measurement is an actual value.
Quality Checklists A checklist is a structured tool, usually
component-specific, used to verify that a set of required steps has
been performed. Checklists may be simple or complex.
Quality Baseline The quality baseline records the quality objectives
of the project.
Project Management Plan (Updates) The project management
plan will be updated through the inclusion of a subsidiary quality
management plan
Perform Quality Assurance
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Quality assurance (QA) is the application of planned,
systematic quality activities to ensure that the project will
employ all processes needed to meet requirements.
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Continuous process improvement provides an iterative
means for improving the quality of all processes.

Continuous process improvement reduces waste and
non-value-added activities, which allows processes to
operate at increased levels of efficiency and
effectiveness.
Perform Quality Assurance: Inputs, Tools &
Techniques, and Outputs
Perform Quality Assurance: Tools and
Techniques
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Quality Planning Tools and Techniques
 The quality planning tools and technique.
Quality Audits
 A quality audit is a structured, independent review to
determine whether project activities comply with
organizational and project policies, processes, and
procedures.
 The objective of a quality audit is to identify inefficient
and ineffective policies, processes, and procedures in
use on the project.
 Quality audits may be scheduled or at random, and may
be carried out by properly trained in-house auditors or by
third parties, external to the performing organization.

Process Analysis
 Process
analysis follows the steps outlined in
the process improvement plan to identify
needed improvements from an organizational
and technical standpoint.
Perform Quality Assurance: Outputs
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Requested Changes
 Quality improvement includes taking action to increase the
effectiveness and efficiency of the policies, processes, and
procedures of the performing organization, which should provide
added benefits to the stakeholders of all projects.

Recommended Corrective Actions
 Quality improvement includes recommending actions to increase
the effectiveness and efficiency of the performing organization.
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Organizational Process Assets (Updates)
 Updated quality standards provide validation of the effectiveness
and efficiency of the performing organization’s quality standards
and processes to meet requirements.

Project Management Plan (Updates)
Perform Quality Control
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Performing quality control (QC) involves monitoring specific project
results to determine whether they comply with relevant quality
standards and identifying ways to eliminate causes of unsatisfactory
results.
Quality standards include project processes and product goals.

QC is often performed by a quality control department or similarly
titled organizational unit.
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The project management team should have a working knowledge of
statistical quality control, especially sampling and probability, to help
evaluate QC outputs.
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Among other subjects, the team may find it useful to know the
differences between the following pairs of terms:
Prevention (keeping errors out of the process) and inspection
(keeping errors out of the hands of the customer).
Attribute sampling (the result conforms, or it does not) and variables
sampling (the result is rated on a continuous scale that measures
the degree of conformity).
Special causes (unusual events) and common causes (normal
process variation).
Common causes are also called random causes.
Tolerances (the result is acceptable if it falls within the range
specified by the tolerance) and control limits (the process is in
control if the result falls within the control limits).
Perform Quality Control: Inputs, Tools &
Techniques, and Outputs
Perform Quality Control: Tools and Techniques

Cause and Effect Diagram
 Cause and effect diagrams, also called Ishikawa diagrams or
fishbone diagrams, illustrate how various factors might be linked
to potential problems or effects.

Control Charts
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A control chart's purpose is to determine whether or not a
process is stable or has predictable performance.
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Control charts may serve as a data gathering tool to show when a
process is subject to special cause variation, which creates an
out-of-control condition.
Control charts also illustrate how a process behaves over time
When a process is outside acceptable limits, the process should
be adjusted.
The upper control limit and lower control limit are usually set at
+/- 3 sigma (i.e., standard deviation).
Control charts can be used for both project and product life cycle
processes. An example of project use of control charts is determining
whether cost variances or schedule variances are outside of
acceptable limits (for example, +/- 10 percent).
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Flowcharting
Flowcharting helps to analyze how problems occur. A flowchart is a
graphical representation of a process. There are many styles, but all
process flowcharts show activities, decision points, and the order of
processing.
Flowcharts show how various elements of a system interrelate.
What and where quality problems might occur and, thus, can help
develop approaches for dealing with them.
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Histogram
A histogram is a bar chart showing a distribution of variables. Each
column represents an attribute or characteristic of a
problem/situation.
The height of each column represents the relative frequency of the
characteristic. This tool helps identify the cause of problems in a
process by the shape and width of the distribution.
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Run Chart
A run chart shows the history and pattern of variation. A
run chart is a line graph that shows data points plotted in
the order in which they occur.
Run charts show trends in a process over time, variation
over time, or declines or improvements in a process over
time.
Trend analysis is performed using run charts. Trend
analysis involves using mathematical techniques to
forecast future outcomes based on historical results.
Trend analysis is often used to monitor:
Technical performance. How many errors or defects have been
identified, how many remain uncorrected?
•ost and schedule performance. How many activities per period
were completed with significant variances?
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Scatter Diagram
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A scatter diagram shows the pattern of relationship between two
variables.
 This tool allows the quality team to study and identify the
possible relationship between changes observed in two
variables. Dependent variables versus independent variables are
plotted.
 The closer the points are to a diagonal line, the more closely
they are related.
Statistical Sampling
Statistical sampling involves choosing part of a population of interest
for inspection (for example, selecting ten engineering drawings at
random from a list of seventy five).
Appropriate sampling can often reduce the cost of quality control.
There is a substantial body of knowledge on statistical sampling; in
some application areas, it may be necessary for the project
management team to be familiar with a variety of sampling
techniques.
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Inspection
An inspection is the examination of a work product to
determine whether it conforms to standards.
Generally, the results of an inspection include
measurements.
Inspections can be conducted at any level. For example,
the results of a single activity can be inspected, or the final
product of the project can be inspected. Inspections are
also called reviews, peer reviews, audits, and
walkthroughs. In some application areas, these terms
have narrow and specific meanings. Inspections are also
used to validate defect repairs.
 Defect

Repair Review
Defect repair review is an action taken by the
quality control department or similarly titled
organization to ensure that product defects are
repaired and brought into compliance with
requirements or specifications.
Perform Quality Control: Outputs
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Quality control measurements represent the results of QC activities
that are fed back to QA.
Validated Defect Repair
 The repaired items are re inspected and will be either accepted
or rejected before notification of the decision is provided
Quality Baseline (Updates)
Recommended Corrective Actions
Recommended Preventive Actions
Requested Changes
Recommended Defect Repair
Organization Process Assets (Updates)
 Completed checklists.
 Lessons learned documentation
Validated Deliverables
Project Management Plan (Updates)
Quality is a Journey,
not a Destination