Week 8 Ch 10 Project Quality

• What is Quality?


  • ISO9000: The totality of features of a product that support its ability t o meet explicit or implicit needs.

  • Kodak: Products that are perceived a s meeting or exceeding customer needs and expectations at a cost that represents excellent value

  •PMI - the degree to which a set of inherent characteristics fulfills requirements
• Project Succes


  Project success exists but no universally accepted set of criteria. Commonly "iron triangle" of schedule, cost and quality.
• • Quality can be measured on the product and/or on the process
• Cost, Time & Quality

  once project manager has made commitment cost, schedule and quality cannot be compromised without renegotiating. Think twice before compromising on quality.
• The Concept of Quality


  Meeting specifications: prevents being taken to court; Ensures payment; But meeting specifications is not sufficient to ensure: customer satisfaction; Good reputation; repeat business.
• Concept of quality implies:

  Fitness for the intended purpose: performance; safety reliability ease of handling; logistical support; environmental safety. Value for money; customer satisfaction; absence of defects.
• Cost of Defects v. Cost of Quality Mgmnt.

  
• Quality Process: ISO 9001: PDCA cycle

  
• Performance Management

  1. Define 2. Measure 3. Compare 4. Improve

  
• Metrics Categories 


  Business or Financial

  Return on Investment Net present value Profit margin Market share Number of new customers

  Project Based

  Time, CostsNumber of changesQualitySafety

  Risks Tendency

  Success Based

  Benefits achieved Value achieved Milestones achieved User satisfaction Stakeholders satisfaction

  Project Management

  Accuracy of estimates Accuracy of measurements Quality of the process
• Procurement Management


  why process? Transparency, Reduce risk, achieve better description of resources needed, monitor performance.
• Procurement Management


  Who is involved? Project Team; Legal Department; Procurement Department; Functional/Technical Areas; Additionally, the following may be involved: finance department; foreign trade department; external consultants.
• A procurement Process (example)


  What is needed

  • Planned features (includes needs, wants)
  • Why it is required, what it is required for
  • When, for how long and how often it is required
  • How long it takes to deliver the ordered product
  • Where is it required
  • How is it required
  • Who or what requires it
  • What is the Budget
  • Particular considerations
  • Risk that the company is willing to accept
  • Relationship with other purchases/adq.

  
• A procurement Process (example) 1

  
• A procurement Process (example) 2

  
• A procurement Process (example) 3

  
• A procurement Process (example) 4

  
• A procurement Process (example) 6

  
• A procurement Process (example) 5

  
• Quality


  the degree to which a set of inherent

  characteristics fulfills requirements (PMI).

  
• Project Quality Management


  Quality management includes: Plan Quality management; Manage quality; control quality.
• Plan Quality Management


  the process of identifying quality requirements and/or standards for the project and its deliverables, and documenting how the project will demonstrate compliance with quality requirements and/or standards (PMI). Organizational Policies; Project Quality Plan.
• Manage Quality

  The process of translating the quality management plan into executable quality activities that incorporate the organization’s quality policies into the project (PMI). Process oriented: Two primary methods of quality assurance include quality audit and process improvement. 1. Quality audit used to determine what methods are being appropriately used and whether they are effective. 2. Process improvement is used to improve both quality and productivity.
• Control Quality


  the process of monitoring and recording results of executing the quality management activities to assess performance and ensure the project outputs are complete, correct, and meet customer expectations. (PMI). (Deliverable/Product oriented) Tests whether specific project deliverables meet their quality standards; inlaces inspection (as part of audit) of inputs, activities, deliverables, and reporting systems.
• Cost Of Conformance vs. Non-Conformance


  Cost of Quality –All costs incurred over the life of the product by investment in preventing nonconformance to requirements, appraisal of the product or service for conformance to requirements and failure to meet requirements (PMI)

  
• Ensuring System Quality

  Preliminary design review; Critical Design review; functional readiness review; product readiness review.

  
• Basic Tools of Quality


  check sheet; flowchart; run chart; control chart; Pareto diagram & histogram; cause-and-effect diagram.
• Check Sheet

  Used to collect data about a problem based on observations

  
• Flowchart


  Used to show steps in a process or procedure

  
• Run Chart


  Used to reveal trends based on observed results over time

  
• control chart 


  used to track and control repetitive events

  
• Scatter Diagram


  Used to show pattern of relationship between two variables

  
• Pareto Diagram & Histogram


  Used to track sources of recurrent problems

  
• Cause-and Effect Diagram


  Used to organize the causes of a problem in an logical way

  
• Check List


  Used to ensure procedures are followed

  
• The Procurement Process For A Request For Proposal (RFP)

  
• Plan Procurement Management


  A central consideration when planning procurement management is the decision whether to do the work Internally or externally. This is called the “make or buy” decision. • When the buyer organization has resources to staff a project, they must decide whether to use internal or external staff• Is it more cost-effective to make it ourselves or buy (procure externally) the product or service (or buy the effort to produce the product or service [contract out the work])?
• Conduct Procurements


  To conduct procurement, organizations prepare a solicitation. Common types of solicitations include: Invitations for Bid (IFB); Request for Information (RFI); Request for Quote (RFQ); Request for Proposal (RFP); Request for Tender (RFT)
• Conduct Procurements (cont’d.)

  Key element of solicitations is the statement of work (SOW)

  
• Control Procurements


  Contract Administration is central activity of Control Procurements. Role of contract administration to ensure commitments made by developer/ contractor and customer as specified in the contract are met: • authorizing work begin; • monitoring work; • ensuring quality; • insuring compliance to warranties; • managing waivers & changes; • checking for default or breach of contract; • resolving disputes; • ensuring that the customer is invoiced for deliverables; • ensuring that contractors and suppliers are paid for GWS received; and • closing out or terminating the project.