Slides8-13.pdf

PMPG 5001
Project Scope & Quality
Management
Lecture 8, Quality Introduction
S2022 – On‐line

Getting to know Each other….
Who Am I?
 Hossam A
 Peng ON, PMP, MSc, MBA East London University, UK
 Background: 20 + years in Industry
 Asia ( Gulf) , Africa, Europe, N. America
 Lead of Project Management Segment
 Process, Sales, Marketing, and Design
3

Getting to Know Each Other…..
3
Who are you?
30 second Elevator Pitch
1-Your name
2-Tell us a little bit about yourself
3-What is your expectations from this course

Faculty – June 28 to August 9
Professor:
Email:
Office:
Phone:
Virtual Office Hours:
Hossam Abdelhamid
Blackboard Course Message
Virtual
905-301-3629
5 pm – 8 pm ( Mon-Thr)
3

Course Outline – Summer, 2022
Semester
PART 2 – Project Quality Management
Week
8. Quality Introduction
9. Evolution of Quality
10. Plan Quality Management
11. Manage Quality
12. Control Quality
13. PM Quality Toolkit + Course Review
14. FINAL EXAM
2

Agenda Today
 Overview of three main quality processes
 The cost of quality
 Class exercise
 Assignment #3
5

Learning Outcomes Today
 Team check up
 Common understanding of Quality basics
 Set up for Assignment #3
4

Team Checkup
 How are things working in your teams?
 What is working well?
 What is not working?
 Do you need help?
6

Starting A Project
Recall the overlaps…
Collect
Reqmts.
Define
Scope
Create
WBS
Plan
Quality
7

Class Exercise
 What is quality?
 What does quality mean?
 How do you know quality when you see it?
8

Exercise (cont’d)
How does quality relate to:
 Deliverables?
 Defects?
 Processes?
 Customers?
 Systems?
9
What
Do
You
Think?

what is quality?
The degree to which a set of basic characteristics
fulfill requirements
1
■ …basic characteristics could be of products
processes, or systems
■ …requirements of customers, other stakeholders
■ Avoid Gold Plating..I.e.... giving the customer
extras, this practice is not recommended.
11

Wheel of Quality
12
Projects have many
customers (internal,
external, hidden) NB: Repeatable
processes do not
always produce
repeatable results…and
variations produce
defects

The Quality journey
A 7 step Framework for project quality management
and quality improvement
1. Customers
2. Requirements
3. Specifications
4. QA Activities
5. QA Plan
6. Quality Control
7. PDCA Model
We will discuss each of these in class: (See the text, P.89)
13

What is Project Quality?
Project
Deliverables
Customer
Acceptance
Customer
Requirements
W
a
n
t
s
N
e
e
d
s
Thedegreeto which
a setof inherent
characteristicsfulfill
requirements1
14

8 Project Quality Management
PMBOK view…
 “…includes the processes for incorporating the
organization’s quality policy regarding planning,
managing and controlling project and product
quality requirements in order to meet
stakeholders’ objectives.”
15

PMBOK view…
 “…also supports continuous process improvement
activities as undertaken on behalf of the
performing organization.”1
16

Addresses…
 The management of the project
 The deliverables of the project
 Applies to all projects
Quality measures & techniques are specific to the
type of deliverables being produced by the project
17

Three main sub processes:
1. Plan quality management
2. Manage quality
3 Control quality
18

8.1 PLAN QUALITY
MANAGEMENT
8.2 MANAGE
QUALITY
8.3 CONTROL
QUALITY
~ Lecture 10 ~ Lecture 11 ~ Lecture 12
19
Aswith otherprocesseswe havelooked at,
each has its own set of Inputs, Tools& Techniques& Outputs

8.1 Plan Quality Management:
 The processes of identifying quality requirements
and/or standards for the project and its deliverables
 Documenting how the project will demonstrate
compliance with quality requirements
20

21
8.2 Manage Quality:
 The process of translating the quality
management plan into executable quality
activities that incorporate the organization’s
quality policies into the project.
Includes

8.3 Control Quality:
 The process of monitoring and recording results
of executing the quality activities to…
 Assess performance and…
 Ensure that project outputs are complete, correct
& meet customer expectations.
22

Quality
Who determines quality requirements?
 Customers & stakeholders
 ….based on needs and expectations
23

Quality
Who is responsible for quality?
 Everyone associated with the project
…And…
 PM is responsible for ensuring quality across the
project
24

Quality - destination or journey
Is quality a…
 destination?
 journey?
25
What do you
think?

PMPG 5001
Management
The Cost of Quality

The Cost of Quality
What is ‘conformance’?
 ... delivering results that fall within the limits that
define acceptable variation for a quality
requirement
28

The Cost of Quality
Cost of conformance: Money spent during the
project to avoid failures: E.g.…
 Training
 Validation
 Testing
 Maintenance
 Calibration
 Audits
29

The Cost of Quality
Cost of non-conformance: Money spent during & after
the project because of failures
...put another way, the cost of NOT creating a quality
product or service…
 Rework, scrap
 Warranty repairs, product recalls
 Handling customer complaints
 Lost business
30

The Cost of Quality
More costs of non-conformance…
 Retesting
 Rebuilding
 Implementing corrections
 Reprocessing
 Replacing
31

The Cost of Quality
The cost of non-conformance - Example…
 US company won the contract to supply 10,000 parts to a
Japanese company
 An inspection of the shipment at the customer’s facility
turned up two defective parts
 The Customer returned the entire shipment of 10,000
parts
32

The Cost of Quality
Another example:
 1981: GMCL won a contract to supply Iraq with 25,500 cars
 $100M deal
 First 13,000 cars shipped - quality issues surfaced. Customer
cancelled the order
 Outcome? Company was forced to:
1. Send technicians to Iraq to repair the problem
2. Sell 12,500 cars at a significant discount
33

The Cost of Quality
The message?
DTRTRTFT, because….
 The cost of non-conformance could well exceed
the cost of conformance by an order of
magnitude, or more
 The goods come back but the customers don’t
1,2
34

Exercise:
Product Quality vs.
Services quality

Exercise: Product and Services Quality
We are all familiar with physical, manufactured
products – and characteristics of quality for
these...e.g.:
 Durability
 Performance
 Features
 Support
 Look and feel
 Other?
35

What about intangible services though?
i.e. “primary or complementary activity that does not
directly produce a physical product…” 1
 Courtesy
 Accuracy
 Completeness
 Consistency
 Convenience
 Accessibility
 Timeliness
36

Exercise 1: Product and Services Quality
See learning materials Product and service
In random breakout groups…Discuss examples of intangible services
you have used:
• What are some characteristics of quality?
• What characterizes ‘good’ quality vs. ‘poor’, in your view?
• Do you report examples of good or poor quality?
• Why or why not?
• How do your experiences of quality (good or bad) affect your
• buying behaviour?
37

Choose one service. On one slide, briefly outline:
 The service
 What good quality looks like
 What poor quality looks like
 Did your experience of quality cause you to complain?
 What was the result?
Designate a presenter for your group
15 mins.
38

Question:
“Satisfied customers can serve as unpaid
sales representatives”1
 What do you think?
 What about unsatisfied customers?
39

Total Quality Costs
Prevention
Costs
Appraisal
Costs
Failure
Costs
40

Total Quality Costs
Prevention
Costs
Appraisal
Costs
Failure
Costs
41
Up-Front
Before &
After The Fact

Prevention Costs
Up-front costs associated with satisfaction of
Customer requirements:
 Quality education & training
 Equipment, time to do it right!
 Supplier & sub-contractor capability reviews
 Process documentation & process capability reviews
 Quality improvement
 …Actions the organization takes
42

Appraisal Costs
Costs associated with assessing the quality of the
product (or process) to determine how well customer
requirements are being met:
 Inspections & testing
 …incoming material
 …in-process inspection
 Vendor control
 Destructive testing loss
 Design reviews
43

Failure Costs - Internal
Costs associated with the failure of products /services
BEFORE leaving the control of the organization – e.g.:
 Scrap
 Rework
44

Failure Costs - External
Costs associated with failure of products /services
found by the customer: …e.g.:
 Liabilities
 Customer complaints, returns & allowances
 Warranty claims, product recalls
 Corrective action
 Lost business
 …a response
45

The Cost of Quality…
Good qualityor poor quality?
…both carrycosts
46

PMPG 5001
Management
Cost and benefits of Quality
- Exercise

Exercise 2 – Failure Costs Chrysler Recall Article
Read learning materials article… 10 mins
Try to understand :-
 What was the situation?
 What was the company’s initial approach to the situation?
 Why did they take this approach?
 Why do you think they changed their approach?
48

Exercise 2 (cont’d)
Assemble your team’s estimate of the total costs to the
company of the recall
1. Cost category of they paid
2. Cost estimate of what they paid
 If you are responsible: What would you do and why?
 What benefits can be derived when we pay attention to
quality as we deliver a project?
49

PMPG 5001
Project Scope & Quality Management
Benefits of Quality

Benefits of Project Quality
 Customer satisfaction
 Reduced costs
 Increased profits
 Increased the ability
51

More Benefits of Project Quality
52
 Improved quality of products and services
 Better organizational communications
 Improved worker performance
 Improved morale

Elements of Customer Satisfaction
 Deliverable satisfaction
 Relationships
 Project execution
 Schedule
 Cost
 Technical performance
53
Highestpriority
inAgileprojects

Conclusions?
Quality
 ...can be difficult to define
→ is ‘fitness for use’ adequate as a definition?
 …has implications for deliverables, defects, processes,
customers, systems
 …in a project context, comprises three key sub-processes:
→ Plan Quality Management
→ Manage Quality,
→ Control Quality
 …remember the costs of quality
 DTRTRTFT
54

PMPG 5001
Management
Assignment #3

ASSIGNMENT #3 – The Sydney to Hobart race
Develop a Quality Plan to support a winning entry in
the Sydney to Hobart Yacht Race
The context….
 1,000km sailing yacht race from Sydney, Australia
to Hobart, Tasmania
 First held in 1954
56

More context….
 Most treacherous seas in the world
→ 1998: 115 yachts started, 43 finished
 World’s toughest oceangoing race:
→ Boats are lost
→ People die
57

More context….
■ https://www.youtube.com/watch?v=c684IJD2-r8
1:40 mins.
 https://www.youtube.com/watch?v=GIdTBwxDseI
2:58 mins.
58

ASSIGNMENT #3 Case Study (10%)
You are the project team for the scenario outlined in
the Case Study….
Your mission:
 Develop a Quality Plan for a winning entry in the race.
 A template has been provided
 **Follow the template headings**
 DUE: Lecture 11
 GROUP ASSIGNMENT: 10%
59

In your teams:
Review & discuss the case study and consider:
 What would be some relevant quality standards for this
project?
 What factors can you control?
 Review the key project deliverables – how would you propose
to evaluate whether (or not) each meets quality standards?
60

ASSIGNMENT #3 Case Study (10%)
Sydney to Hobart case...
More things to consider:
 Project deliverables
 Relevant quality standards
 Acceptance criteria
 Appropriate tools
 Costs of failure
61

For next lecture ...
Topics to be Covered:
 Evolution of Quality
To do:
 Read Chapters 1 - 3 in the Text Project Quality Management
 Read The Article “Measuring Project Quality”
→ Learning materials
 Read the Sydney to Hobart case study (Asgn. 3)
 Review the Quality Plan document template (for assignment
#3)
62

Course Textbooks...it’s time
Course Textbooks reminder
Project Quality Management, Why, What and How
SECOND EDITION, 2014
Kenneth H Rose, PMP
ISBN 978-1-60427-102-7
Project Management Body of Knowledge (PMBOK) Guide, 6th
Edition (Project Management Institute (PMI).
63

Course Textbooks...it’s time
64

Exercise 2 – Failure Costs Chrysler Recall Article
 What was the situation?
 What was the company’s initial approach to the situation?
 Why did they take this approach?
 Why do you think they changed their approach?
 Estimate
 Cost category of they paid
 Cost estimate of what they paid
 If you are responsible: What would you do and why?
 What benefits can be derived when we pay attention to quality as we deliver a project?

PMPG 5001
Management
Lecture 9 – Evolution of Quality
W2022 – On-line

Course Outline – Winter, 2022
Semester
Week PART 2 – Project Quality Management
11. Manage Quality
12. Control Quality
14. FINAL EXAM

Understanding of:
◼ The evolution of the quality movement
◼ …how the quality movement started and grew
◼ ….the roles played by quality pioneers
3

Agenda Today
◼ The evolution of quality
◼ Case study – Measuring & Managing Project Quality
◼ The pioneers
◼ Class exercise
4

Some Review
Which belongs to Costs of conformance …?
( Prevention or Appraisal or Failure)
Which belongs of non-conformance …?
( Internal – External)
The 3 main quality sub-processes are…?
What are 7 step Framework for project quality management?
Quality benefits?
5

PMPG 5001
Evolution of Quality

Quality - In the beginning….
1700’s (& before) -> Less
people in the world
Individual Craftsperson per
Local Area
Customers expected quality
Craftsperson responsible for his
or her own work quality
Craftsperson understood it
7

In the beginning….
Individual craftsperson responsibilities included all
aspects of what he/she produced:
 Design : the one create the design
 Acquiring supplies : choose material for his product
 Tools choose material for his product
 Production techniques choose the best technique
 Quality re do if quality is as expected
 Sales talk to people to sale the product
 Customer complaints no customer service
 Improvements lesson learned to improve
8

In the beginning….
Individual craftsperson approach:
 Total control over output : will control the product looks like
 Items made one at a time : single Product
 Each item a little (?) bit different impossible to repeat same item
 Learning passed on to apprentices someone taught him/her
9

The Industrial Revolution
10
Things changed…
 Demand increased : more people / transportation to reach more places
 More items, faster due to demand , process is changed
 Work moved to central locations main Quarter cities
 Factories….
 Standardization of designs
 Assembly lines increase the production

11
Things changed…
 Interchangeable parts : market change
 Specialized tasks (‘Scientific Management’) new jobnames
 Unskilled workers trained to make parts according to a
standard design
 Worker focus = individual parts (vs. the whole)
 Individual contribution = part of final product
 Holistic manufacturing concept destroyed

12
Still more changes…
 Inspection becomes important
 Design standards evolve

Variation
Design
Manuf
acture
Test –
for
quality
Discard
Rejects
Distribute
Accepted
Product
13
Design Problems
Customer Complaints
Rejects & waste
‘Test’ for good vs.
bad products

Modern times…
14
Early 20th Century…
 New theories & inspection methods
 Charts, sampling techniques, analysis
tools introduced
 Statistical approaches to quality developed
 Foundations for modern quality assurance

Modern times…
15
Post World War II
 Statistical quality control introduced in Japan
 Quality required to open new markets and…
 …necessary for survival of the nation
 20 yrs. on:
→ Japan: improved quality at an unprecedented rate
→ The West: life is good - who needs quality?

Modern times…
16
1970’s & 1980’s…
 Significant market share losses by western businesses
 Japan relentlessly improves, the West is asleep at the switch
 Finally… ‘If Japan can do it, why can’t we??’
 The West wakes up….
 US introduces the Malcolm Baldrige quality award
→ …only 34 years after Japan introduced the Deming award
→ Who is first country introducing quality award?

Modern times…
17
1990’s…
 Governments, healthcare, education, service providers begin
serious quality improvement efforts
 Quality principles integrated into management systems
 Organization-wide performance excellence movement is born
→ ‘Total Quality Management’ movement

Modern times…
18
Going Forward…
 It’s a global marketplace
 “Successful organizations know that the principles of Total
Quality are essential to effective management practice, and
…a sound approach for achieving business success.”1
 Survival depends on high quality

Modern times…
19
Some paradigms……
 Quality is an integral part of the organization’s DNA
OR
 Quality is a new add-on initiative to stem market
share/revenue losses or customer complaints
What do you
think?

They added Quality in Design
Design
Quality
Designed in
Manufacture
Quality Built-in,
Mfg Controlled
Test
Discard
Rejects
Distribute
Accepted
Product
20
Design Problems
Customer
Complaints
For example, if you have a product with a poor
design will be low quality even if quality control and
quality assurance succeed in producing the design
accurately.

The added Quality in Manufacturing
Design
Manufacture
Quality Built-in
Mfg. Controlled
Test
Discard
Rejects
Distribute
Accepted
Product
21
For example, if you have a product with a
good design will be low quality if quality
control and quality assurance not succeed in
producing the design accurately.

Benefits of Meeting Quality requirements
22

PMPG 5001
Case Study – Measuring and
Managing Project Quality

Goff Case Study
◼ In your teams, review the case study
◼ What are the key themes in the Goff case?
→ Measuring and Managing Project Quality
→ See ‘Learning materials’
25 mins.
24

PMPG 5001
The Pioneers……

Quality Pioneers
Important names in our quality life
◼ Walter Shewart (American )
◼ W. Edwards Deming (American )
◼ Joseph M. Juran (American )
◼ Philip B. Crosby
◼ Kaoru Ishikawa
26

Shewart - 1931
◼ Focused on variation
◼ Father of statistical quality control
*how we use of statistical methods in the monitoring
◼ Identified Chance Cause it is by chance (e.g. human not perfection)
& Assignable Cause (e.g. batch of defective raw material )
→ Assignable cause can be fixed
◼ Developed ‘Plan, Do, Check, Act’ cycle
27

Deming – 1950’s
 Post WWII (1950’s)
 Invited to Japan to lecture on quality
 Deming’s focus – understanding basic statistical
principles to aid in the discovery of causes
 Book – “Quality, Productivity and Competitive Position”
 Later Book – “Out of the Crisis” see next slide
28

From his book Out of the Crisis” Deming’s Deadly Diseases
1. The crippling disease: lack of constancy of purpose
to plan product/service that will keep the company in business and provide jobs.
2. Emphasis on short-term profits
opposite from long term the methods used will destroy the company later on
3. Evaluation of performance, merit rating, on annual review
Personal review system
4. Mobility of management
Management interest will be in the short term rather than long term performance of the company.
5. Running a company on visible figures alone (counting the money)
In a meeting, no one says no to the boss. What does it mean?
6. Excessive medical costs warranty/liability, business is just trying not to be sued.
1. Excessive costs of liability 29

From his book Out of the Crisis”
Deming’s 14 Points for Management
1. Create constancy of purpose for improvement of product and
service. Plan for quality in the long term. Resist reacting with short-term solutions
Predict and prepare for future challenges, and always have the goal of getting better .
2. Adopt the new philosophy Be prepared for a major change in the way
business is done. Create your quality vision and implement it.
3. Cease dependence on mass inspection Don't just find what you did
wrong – eliminate the "wrongs" altogether because Inspections are costly and unreliable
4. Don’t award business on price alone. Look at suppliers as your partners
in quality. less variation you have in the input, the less variation you'll have in the output
5. Constantly improve the system of production and service
Continuously improve your systems. Deming promoted the Plan-Do-Check-Act
6. institute on-the-job training to help reduce variation
7. Adopt and institute leadership Be a coach not a policeman
30

Deming’s 14 Points for Management
8. Drive out fear Ensure people are not afraid to express ideas or concerns.
9. Break down barriers between staff areas each department serves other
10. Eliminate slogans, exhortations and targets for the work force
Let people know exactly what you want – don't make them guess.
11. Eliminate numerical quotas for the workforce; eliminate
numerical goals for people in management Look at how processes are
carried out not just numerical targets. Measure the process rather than people behind process
12 Remove barriers that rob people of pride of workmanship
Treat workers equally. Allow everyone to take pride in their work
13 Encourage education and self improvement for everyone
Encourage people to learn new skills to prepare for future changes and challenges.
14 Take action to accomplish the transformation
Improve your overall organization by having each person take a step toward quality.
31

Juran (1940’s & 50’s)
Lectured in Japan
◼ Book – Managing for Quality
→ …the role of management in quality
◼ Key points
→ Management involvement
→ Pareto principle
→ Training
→ Quality = fitness for use
→ Project by project approach to quality improvement
32

…More on Juran
The Juran trilogy:
◼ Quality planning
◼ Quality control
◼ Quality improvement
33

Crosby (1970’s)
◼ Quality is free
it is less expensive to do it right initially than to do it over. Cheap is expensive
◼ Quality is conformance to standard
The capability of a product to meet certain design standards set by the producer
◼ Prevention is the key to quality better than failure
◼ Zero defects is the standard high quality
◼ Measurement is the price of non conformance
the money spent by the company when it fails to ensure the required quality of its
products and services.
34

Karou Ishikawa (1960’s – 1980’s)
◼ Focus on the customer (not methods of production)
focus on customer satisfaction is the foundation of quality today,
◼ Focus on the employee for problem solving & identifying
improvement opportunities
◼ Introduced the 7 basic tools of quality
→ Fishbone diagram (cause & effect analysis)
◼ Created quality circles
◼ Simplified things
35

PMPG 5001
Quality Today…

Changing Views of Quality
THEN NOW
INSPECTION: Inspect
something at the end of
production to determine if it
meets specs
CUSTOMER FOCUS: Customer
requirements are the base
STATISTICS: Establish statistical
goals for conformance
VARIATION: Understand it,
control it
REWORK: Fix (or discard) non-
conforming product
CONTINUOUS IMPROVEMENT:
Products and processes
improve …forever
37

Changing Views of Quality (cont’d)
THEN NOW
Quality is the responsibility of blue-
collar workers & direct labour
employees working on the floor
Quality is everyone’s responsibility;
(white-collar workers, indirect labour
force, overhead staff)
Quality defects should be hidden
from customers (and possibly
management)
Defects should be highlighted for
corrective action
Quality problems lead to blame,
faulty justification, and excuses
Quality problems lead to cooperative
solutions
Correcting quality problems should be
accomplished with minimum
documentation
Documentation is essential for
lessons learned so that mistakes are
not repeated
38

Changing Views of Quality (cont’d)
THEN NOW
Increased quality will increase
project costs
Improved quality saves money
and increases business
Quality is internally focused Quality is customer focused
Quality will not occur without
close supervision of people
People want to produce quality
products
Quality occurs during project
execution
Quality occurs at project
initiation and must be planned
for within the project
39

PMPG 5001
Quality Theory…

Continuous Improvement
41
in addition to the standard PDCA diagram
• Plan
• Do
• Check
• Act
there is extended model
• Problem finding
• Display
• Clear
• Acknowledge

Continuous Improvement System
Definition:
A disciplined methodology to achieve the goal of
commitment to excellence by continually
improving all processes
42

Recall the Wheel of Quality…
Copyright Kenneth H. Rose
2003
43
Themes:
→ Leadership
→ Reqmts., controls, processes
→ Customer focus, PDCA
→ Variation
→ TRAINING!

The Wheel of Quality
Copyright Kenneth H.
Rose 2003
44
Training:
◼ The foundation of quality
Leadership
◼ The unifying force of quality
…...Customer-driven project management

Customer Driven Project Management
TQM
TQM = Total Quality Management
45

Recall …:
Project Quality involves three key Project Management
processes, starting in the Planning Process Group:
■ 8.1 Plan Quality Management
■ 8.2 Manage Quality
■ 8.3 Control Quality
■ In next sides we will definite each key
46

8.1 Plan Quality Management:
◼ …identifying quality requirements and/or
standards for the project and its deliverables
◼ Documenting how the project will demonstrate
compliance with quality requirements and /or
standards
47

8.2 Manage Quality:
◼ …translating the QM plan into executable quality
activities that incorporate the organization’s
quality policies into the project
48
+

8.2 Manage Quality also includes:
49
+
→ Are we using the right processes?
→ Are they effective?
→How are we improving the processes?
→ Will the design result in
outputs that meet specified
requirements?

8.3 Control Quality:
◼ …monitoring and recording results of executing
the quality activities
◼ Assess performance
◼ Recommend necessary changes
50

TQM
TQM = Total Quality Management
51

What is ‘Total Quality Management’?
 A philosophy and set of guiding principles that
stresses continuous improvement
 People involvement
 Disciplined, structured methodology
 Focuses on process measurement
 Goal – total customer satisfaction
52

The PDCA Cycle – a TQM Approach
Plan–Do–Check–Act cycle:
→ a four-step model for carrying out change.
The PDCA cycle should be repeated again and again for
continuous improvement.
American Society for Quality (ASQ)
53

PDCA Steps
 Plan: Recognize an opportunity and plan a change
 Do: Test the change
→ carry out a small-scale study
 Check: Review the test
→ analyze the results
→ identify what you’ve learned
54

PDCA Steps
 Act: …based on learnings:
→ If the change didn’t work, go through the cycle again with a
different plan
→ If you were successful, incorporate what you learned from
the test into wider changes
**Use what you learned to plan new
improvements & begin the cycle again**
55

TQM, Continuous Improvement, etc.
Simply put…
 A commitment to constantly improve operations,
processes and activities in order to meet customer
requirements in an efficient, consistent and cost
effective manner
 There is always room for improvement
56

Total Customer Satisfaction
PM role…
◼ Define the project through plans, specifications,
policies and procedures
◼ Know customer needs & expectations
◼ Determine metrics
◼ Measure performance
◼ Satisfy both internal and external customers
◼ Watch for hidden customers!
57

Projects often have multiple customers:
◼ External customers: The client, (…pays the bills &
verifies project completion)
→ Could be inside or outside the organization
→ Suppliers are also external customers (who have
requirements for accurate, timely information)
→ End users
58

Customers…
What about internal customers?
◼ Who are they?
◼ Are they important?
◼ Why or why not?
◼ Should they be treated the same as external
customers?
59
What do you
think?

Customer Focus:
◼ Internal customers: the next step in the process
chain
→ Projects usually require multiple collaborating
elements within the organization
each element performs a piece of the work and passes its piece on to another
element that will perform another piece and pass it along to another and another
until the final product is delivered to the client.
→ Projects can have multiple supplier-customer
relationships
60

Customer Focus:
◼ Hidden customers: stakeholders who do not
participate directly in the project but who have an
interest/concern and may want to influence project
outcomes:
→ Difficult to identify
→ Can be very troublesome
Any example in your mind for hidden customers?
61

Customer Role in Quality
1. Provide needs and requirements
→ Foundation for the project
2. Define standards
→ How well the product should perform
→ Provide measurable targets
62

Customer Role in Quality
3. Evaluate products
→ How well does the product meet expectations?
4. Provide feedback
→ Comments, complaints, recommendations
63

64
Customers & Quality Planning
Q: What consideration in my quality plan related to customer?
A: I need to consider
◼ Customer requirements & expectations
◼ Define the scope of work
◼ Project strategy
◼ Project goals
◼ Measures of success
◼ Technical standards & processes
◼ Project team responsibilities & structure
64

◼ Deliverable satisfaction
It is part of customer satisfaction not all of it. we will define in next slide
◼ Relationships
◼ Project execution
→ Schedule
→ Cost
→ Technical performance
◼ Team leadership
65

Customer Satisfaction
A challenge to consider…
Deliverable satisfaction means, in part, meeting
specs. BUT just meeting specs…
◼ …may result in minimal customer satisfaction
◼ …does not provide a better solution (if one is possible)
◼ …does not enhance organizational competence (unless specs
are set ‘challengingly’ high)
66

Consider…
◼ If you don’t meet the contract specs you are in
breach
◼ To complete the current contract you need to meet
the contract specs
◼ But If you want to win the next contract, you need
to meet or exceed the customer’s expectations
67

What to do?
Continuous improvement requires three key actions:
Continuous improvement, step 1:
1. Communicate:
→ Inside, outside, everywhere
→ By communication you can Identify & resolve problems &
opportunities
68

2. Take corrective action: Fixing problems is good but
not sufficient
→ Prevention is better
It is good to fix a problem; it is better to prevent it from occurring again
69

3. Identify & act on opportunities:
→ Practice PDCA
plan-do- check-act cycle provides an approach for continuous
improvement based on either identified problems or opportunities
70

Recall the payoff…
…for continuous improvement :
1. Meet dynamic needs & requirements
Customer needs are always changing. Give them what they ask for and they will ask for more
2. Stay competitive The global marketplace is not in a steady state; it is a race, and
you cannot win a race by standing still.
3. Reduce costs (& increase profits) Reducing costs can increase
competitiveness, which will increase sales and overall profit.
4. Develop new technologies, processes, products Technology is
always changing so improve your processes to take advantage of new technology
5. Stay in business!
71

PMPG 5001
Global Quality and
International Quality
Standards (Paradigms)

Some Standards…
◼ Six Sigma
◼ ISO
◼ PMBoK
◼ Excellence Canada Program (Canada)
◼ Baldrige National Quality Program (USA)
◼ Deming Award (Japan)
73

Six Sigma
Sigma Rating Defect Rate On-time At-
quality Rate
0 93.32% 6.68%
1 69.15% 30.85%
2 30.85% 69.15%
3 6.68% 93.32%
4 .62% 99.38%
5 .023% 99.977%
6 .00034% 99.99966%
Process Variation…. : 6S process using of statistics and data
analysis to analyze and reduce errors or defects. Q: What is 6S value?
3.4 defects
per million
74
E.g. Sigma 0
every 100 item
93.32 defected
+ 6.68 on time

Six Sigma Results
“Companies of all types and sizes are in the midst of a
quality revolution.
◼ GE: saved $12B over five years, added $1 to its EPS Earnings Per
Share
◼ Annual benefits > $2.5B across the organization from Six
Sigma.”
◼ Honeywell (AlliedSignal): recorded more than $800M in
savings”
75

Six Sigma Results
Motorola formalized a Six Sigma program in the
1980’s and….
◼ “Reduced manufacturing costs by $1.4B …1987-1994.”
◼ …reportedly saved $15B over an 11 year period
Related benefits…
◼ 500% increase in sales
◼ 20% annual increase in profits
“
3.4 defects
per million
76

ISO
77
 Worldwide federation of national standards bodies from 162
countries
→ In Canada, the Standards Council of Canada
 independent, non-governmental international organization
 Founded in 1947
 ISO brings together experts to share knowledge and develop
International Standards that support innovation and provide
solutions to global challenges.

Some ISO Quality Standards
◼ ISO 9000:2005 - Quality management systems – Fundamentals
and Vocabulary
◼ ISO 9001:2008 - Quality management systems -- Requirements
◼ ISO 10006:2003 - Quality management systems – Guidelines for
quality management in projects
◼ ISO 21500:2012 – Guidance on project management
NB: These standards do not address quality itself, but
the processes necessary to achieve quality 1
PMBoK
78

ISO 9001 – Company Focus
Management responsibility Quality system
Control of non-conforming
products
Design control
Handling, storage, packaging
and delivery
Purchasing
Purchaser-supplied products Product identification and traceability
Process control Inspection and testing
Inspection and test equipment Inspection and test status
Contract review Corrective action
Document control Quality records
Internal quality audits Training
Servicing Statistical techniques
79
ISO 9001 is a brief document. contains many paragraphs that indicate what an
organization “shall” do. To get this important doc, it the management responsibility

ISO 10006:2003 – Project Focus
◼ Guidance in the application of Quality Management in Projects
◼ First Published in June, 2003 (replaced ISO 10006:1997)
80

ISO 10006:2003 – Project Focus
81
This standard has been revised by ISO 10006:2017

ISO:21500:2012 – Guidance for Project Management
The schedule:
◼ Develop Working Drafts – June, 2008 to June, 2009
◼ Develop Committee Drafts – November, 2010
◼ Develop Draft International Standard – November, 2011
◼ Develop Final Draft International Standard – January, 2012
◼ Update & Launch International Standard – June, 2012
◼ Published 2012-09-03
82

ISO: 21500:2012 – Guidance for Project Management
83
This standard has been revised by ISO 21500:2021

Excellence Canada Program*
Recognizes Canadian organizations in business, health
care, education, and nonprofit sectors for excellence
and performance improvements
Organizations must:
◼ Meet & exceed rigorous standards and requirements
◼ Demonstrate continual improvement
◼ Demonstrate measurement of progress, and verification
* Formerly the National Quality Institute (NQI)
84

Excellence Canada Program
To receive the Award, an organization must demonstrate
outstanding performance in the appropriate award
category:
◼ Excellence
◼ Innovation and Wellness
◼ Healthy Workplace
◼ Mental Health at Work
◼ Financial Wellness
85

Malcolm Baldrige Award
A Quality award that recognizes U.S. organizations
in business, health care, education, and nonprofit
sectors for performance excellence.
Three-part Excellence Framework:
1. Criteria for performance excellence
2. Core values and concepts
3. Scoring guidelines
86

Excellence Framework purposes:
1. Help organizations assess their improvement efforts,
diagnose their overall performance management
system, and identify strengths and opportunities for
improvement
2. Identify Baldrige Award recipients that will serve as role
models for other organizations.
87

Award criteria
◼ Leadership
◼ Information & Analysis
◼ Strategic Quality Planning
◼ Human Resource Utilization
◼ Quality Assurance
◼ Quality Results
◼ Customer Satisfaction
Points awarded for each category (Total = 1,000)
88

Malcolm Baldrige Award examples
2020 winners:
◼ AARP (American Association of Retired Persons)
◼ Elevations Credit Union of Boulder, Colo.
◼ GBMC HealthCare System of Towson, Md.
◼ MESA of Tulsa, Okla. (Corrosion control services)
◼ Wellstar Paulding Hospital of Hiram, Ga.
(The five recipients were chosen from a field of 20 applicants)
89

Conclusions?
Quality
▪ …has evolved in concept & practice over many years
▪ ‘then’ and ‘now’ views are very different
▪ Today, everyone plays a role in Quality
▪ Quality is critical to business survival in today’s global
marketplace
▪ TQM, PDCA, Customer-Driven project management, Six Sigma,
ISO, etc. all…
→ …demonstrate significant business benefits
→ …centre on Quality (or have it as a critical component)
90

For next week…..
Next week…Topics to be Covered
◼ Read Chapter 4 in the text (Project Quality Planning)
◼ Read the QFD paper (Blackboard)
→ Learning materials
91

PMPG 5001
Management
Lecture 10– Plan Quality Management
W2022 – On-line

Last Lecture - Review
1 What is a paradigm? (DNA or add-on)
2 The benefits of quality include improved of…?
improved Productivity – increase warranty cost - improved response
3 Deming’s points of managements ? ( 12 -13 -14)
4 Ishikawa is famous for…? (Customer focus- Deadly Diseases)
5 What are some characteristics of Quality today, vs. ‘back
then...’?
3

4
More review…
6. What was the main observation from the Goff case study?
7. PDCA means…?
8. ( ) ?...is the foundation of quality
9. ( ) ?...is the unifying force of quality
10.What is TQM?
4

Agenda Today
 Case study – QFD (Quality Function Deployment)
 Class exercise
 Plan Quality Management
 Inputs
 Tools
 Outputs
5

Common Understanding of:
 The basics of QFD Quality Function Deployment & its
importance for project quality
→ Differing levels of needs
 Elements of Planning Quality Management
6

PMPG 5001
QFD Case study & discussion

QFD Case Study
In your teams, review the QFD case study and
determine:
 What are the benefits of QFD?
 What does the case say about customer needs?
 What do you think of QFD as a process?
 What kind of industries/businesses do you think
it would best fit?
20 mins.
8

Quality Function Deployment
QFD means that…
 “…All operations of the company are driven by
the voice of the customer, rather than by top
management edicts or design engineers’
opinions.”
9

QFD: Quality Function Deployment
QFD= Customer-driven product (or process or
service) development
 A Philosophy
 A set of planning & communications tools
 Focuses on Customer requirements in coordinating
design, manufacturing & marketing
 An example of a facilitated workshop technique to
define critical characteristics for new product
development
10

QFD : Quality Function Deployment
 A planning process to guide design, manufacturing
and marketing of goods
 Translates the voice of the customer (i.e. customer
requirements) into technical requirements for each
stage of product development and production
…throughout the organization 1
11

Quality Function Deployment
QFD = Customer-driven product (or process, or
service) development
 Defines customer needs and expectations
 Establishes initial design requirements
→ …includes understanding those requirements prior to
the design phase
 Provides primary product planning information
 Initiates competitive assessments
12

QFD…The 4 Houses of Quality…
13
The 4 houses connect….
1. Customer reqmts. to product technical reqmts.
2. Product technical reqmts. to component reqmts.
3. Component reqmts. to process operations
4. Process operations to quality control plans

QFD…The first house…
Customer Requirements Planning matrix:
1. Identify Customer reqmts.
2. Identify technical reqmts.
3. Evaluate competing products
4. Evaluate technical reqmts. & develop targets
5. Determine which technical reqmts. to deploy in the
remaining production/delivery
14

PMPG 5001
Kano’s view of
needs…

Kano’s view…
17
…segments customer requirements into 3 groups:
1. Dissatisfiers (‘must haves’): Basic reqmts. expected in a
product or service
2. Satisfiers (‘wants’): Customers say they want these…, not
generally expected, but fulfilling them creates satisfaction
(performance needs)
3. Exciters/delighters (‘never thought of’): Innovative features
neither expected nor anticipated, but loved once they are
there

Kano’s view…Implication
To be truly competitive,…organizations
must surprise and delight customers by
going beyond basic requirements and
expressed desires”1
18

Class Exercise – applying Kano’s view of needs
In your teams, choose a product or service you are
familiar with:
1. What are the basic (‘must have’) needs?
2. What are the performance (‘satisfiers’) needs?
3. What are some potential excitement (‘never thought of…’)
needs?
4. Appoint a spokesperson for playback
20 mins.
19

PMPG 5001
Plan Quality
Management

Starting A Project
Collect
Reqmts.
Define
Scope
Create
WBS
Plan
Quality
21
Recall the overlaps!

8.1 Plan Quality Management
PMI definition : PQM is the process of what?
 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
 The phase where the PM can have the most
influence on Quality…
 Q) How many time is PQM process performed in the
project lifecycle? ( one time - many times)
22

8.1 Plan Quality Management
INPUTS
1. Project Charter
2. Project mgmt. plan
3. Project documents
4. Enterprise Environ.
Factors
5. Org. process assets
TOOLS AND
TECHNIQUES
1. Expert Judgment
2. Data gathering
3. Data analysis
4. Decision making
5. Data representation
6. Test & inspection
planning
7. Meetings
OUTPUTS
1. Qual. Mgmt. plan
2. Quality metrics
updates
updates
23

8.1 Quality Planning Inputs
Sources for inputs can be:
1 Project charter: high-level project description
2 Project Mgmt plan :Scope Baseline, Stakeholder register
Requirements Mgmt plan , Risk management plan
3 PROJECT DOCUMENTS :Assumption log, Requirement’s
documentation, RTM Requirements traceability matrix, Risk register,
Stakeholder register
 How many inputs for Quality plan? ( 3- 4 -5)
Read PMBOK, 6th Edition, p.277
24

More Sources:
4- Enterprise environmental factors, e.g.
→ Government regulations
→ Rules, standards, guidelines
→ Cultural perceptions
→ Working/operating conditions
→ Organizational structure
→ Market conditions
25

Still More Sources:
5- Organizational process assets, e.g.
→ Historical data
→ Lessons learned
→ Formal quality policy, procedures
→ Quality templates
26

Quality Policy…
…is a LEADERSHIP item…
 Overall intention and direction of the organization
regarding quality, as formally expressed by top
management
 Management team responsibility: disseminate the
quality policy to all project stakeholders through
appropriate information distribution channels
27

Quality Policy - Example
SNC-Lavalin Quality Policy
Quality means satisfying clients on each and
every project and mandate we execute. It is the
policy of SNC-Lavalin to achieve client satisfaction
through the careful management of our work
processes, with due attention to value creation
through scope, schedule, cost control, and
with emphasis on safety and the environment. 1
28

PMPG 5001
The 7 Basic PQM Tools

8.1 Plan Quality Management – tools…
INPUTS
1. Project Charter
Factors
TOOLS AND
TECHNIQUES
1. Expert Judgment
2. Data gathering
3. Data analysis
4. Decision making
planning
7. Meetings
OUTPUTS
1. Qual. Mgmt. plan
2. Quality metrics
updates
updates
30

1. Expert Judgment
 Expertise from individuals or groups with
experience, specialized knowledge or training …e.g.
→ Strategy
→ Technical knowledge
→ Duration & budget estimation
→ Risk identification
31

2. Data gathering
Benchmarking ( next slide)
“…the practice of comparing the performance or
attributes of one organization to that of others…in
order to understand differences and learn from the
approaches and practices of others.”1
How many TOOLS AND TECHNIQUES
for Quality plan? ( 6- 7 -8)
32

Benchmarking
 …could compare project practices (or quality
standards) to those of comparable projects,
practices, organizations
→ Identify best practices – inside or outside of the
organization
→ Generate ideas for improvement
→ Draw analogies from different application areas or
industries
33

Benchmarking (cont’d)
 Best practices: ones that will lead to superior
performance.
 Establishing operating targets based on best
possible practices is a critical component in the
success of every organization
 Benchmark projects/practices may exist:
→ Within the organization
→ Outside the organization
→ Within a different application area
34

Benchmarking (cont’d)
The continuum…
 Baseline performance
 Improving
 Competitive
 Best in Class
 World Class
35

2. Data gathering – more examples
 Brainstorming: group technique for generating
ideas ( next slide)
 Focus groups: interactive discussion technique that
brings together, stakeholders and uses a
moderated conversational approach to gather
information
 Interviews: One on one discussions with
stakeholders to gather information
 NB: confidentiality may be an important factor
36

Brainstorming…
…a formal process used to generate ideas.
Comes in 2 flavours
1. Structured approach:
 Identify the issue to be addressed & write it down for all
to see
 Team members propose ideas, taking turns going
around the table – one at a time
 One idea per team member per round
 Each idea is recorded – no passing judgment allowed!
37

Brainstorming (cont’d)
2. Unstructured approach:
 Identify the issue to be addressed & write it down for
all to see
 Team members propose ideas, as they occur
 Each idea is recorded – no passing judgment allowed!
 !
38

3. Data Analysis
 Cost/benefit analysis:
→ Compares the cost of the quality activity to the
expected benefit received
 Cost of Quality analysis:
→ Prevention costs
→ Appraisal costs
→ Failure costs
39

3. Data Analysis
What is the optimal Cost of Quality?…
→ …That point “where investing in additional prevention
/appraisal costs is neither beneficial nor cost
effective”
40
Something to think about…

PMPG 5001
More Tools &
Techniques

Remember Plan Quality Management
42
TOOLS AND
TECHNIQUES
1. Expert Judgment
2. Data gathering
3. Data analysis
4. Decision making ( next)
6. Test & inspection planning
7. Meetings

Design of Experiments
Design of Experiment (DOE):
 Structured method for determining the relationship between
factors affecting a process and the output of that process
 E.g. determine the number and types of tests and their
impact on cost of quality during the Plan Quality
Management process
 Use the experimental data to highlight factors that will
influence results
43

Design of Experiments - Example
While doing interior design of a new house, the final
effect of interior design will depend on various factors
such as colour of walls, lights, floors, placements of
various objects in the house, sizes and shapes of the
objects and many more. Each of these factors will
have an impact on the final outcome of interior
decoration. While variation in each factor alone can
impact, a variation in a combination of these factors at
the same time also will impact the final
outcome. Hence it needs to be studied how each of
these factors impact the final outcome, which are the
critical factors impacting the most, which are the
most important combination of these factors
impacting the final outcome significantly.
44

Statistical Sampling
Statistical sampling:
 ….A way of identifying the quality of a service or product
when it is impractical or too expensive to examine each item
 Effective sampling is based on statistical probability theory
which identifies the probability of error for a sample size
 Using standard deviation and variance calculations, control
charts can be constructed, which accurately predict the
likelihood of a sample being representative of a population
or lot size
45

Statistical Sampling (cont’d)
Approach…:
 …choose a part of a ‘population of interest’ for further
inspection
→ E.g. selecting 5 student assignments out of 47 for inspection
 Sample frequency and size should be determined during
the Plan Quality Management process
46

4. Decision Making
 Multi-criteria decision analysis:
→ Uses tools (prioritization matrix) to identify issues and
alternatives to be prioritized
→ Criteria are prioritized & weighted
→ Criteria are applied to the alternatives
→ Mathematical score derived for each alternative
→ One application? Prioritize quality metrics
47

5. Data Representation – some examples
 Flowcharts: known as process maps e.g.
S.I.P.O.C (suppliers, inputs, process, outputs, and customers)
 Logical data model: visual representation
of an organization’s data
 Matrix diagrams: shows relationships
between factors
 Mind maps: diagrams that visually
organize information
48

6. Test & Inspection Planning
 Determine how to test or inspect the product,
deliverable or service
 Objective: meet stakeholders needs & expectations
AND goals for product performance & reliability
 …can be industry dependent
49

7. Meetings
Recall that meetings…:
 …occur in all project phases and processes
 …good application: to develop the Quality Management
Plan
 …are most successful when planned & structured carefully
 Remember: Start with the end in mind…
50

Characteristics:
Clearly stated outcomes and a defined agenda
circulated ahead of the meeting
All agenda items are covered & outcomes met
The right participants are invited (and show up)
Starts on time, finishes on time
Discussions stay (largely) on-track
Effective meetings
51

More Characteristics:
Minimal digressions or interruptions
Decisions are clear
Next steps clearly documented
Concise, accurate minutes are produced quickly and
circulated, quickly
...and remember the nicest thing about not planning
Effective meetings
52

PMPG 5001
Plan Quality
Management Outputs

8.1 Plan Quality Management – Outputs
INPUTS
1. Project Charter
Factors
TOOLS AND
TECHNIQUES
1. Expert Judgment
2. Data gathering
3. Data analysis
4. Decision making
planning
7. Meetings
OUTPUTS
1. Qual. Mgmt. plan
2. Quality metrics
updates
updates
54

Quality Planning Outputs
1. Quality Management Plan
2. Process improvement plan
3. Quality metrics
4. Quality checklists
5. Project document updates
55

1. Quality Management Plan *Sample
Quality Management Plan
August 20
Project Name: Just-In-Time Training Project
Introduction
The main goal of this project is to develop a new training program that provides just-in-time training to
employees on key topics, including supplier management, negotiating skills, project management, and
software applications.
Quality Standards
The standards that apply to this project are summarized as follows:
1. Survey standards: See Attachment 1 for corporate standards for developing and administering
surveys to employees. Quantitative and qualitative information will be collected. Quantitative data will
use a 5-point Likert scale as much as possible. A corporate expert on surveys will review the survey
before it is administered.
2. Supplier selection standards: See Attachment 2 for corporate standards regarding supplier selection.
Past performance and developing partnerships will be key issues for this project.
3. Training standards: See Attachment 3 for corporate standards regarding training. The training
provided as part of this project will be available in several formats, including instructor-led, CD/ROM,
and web-based. Employees will have access to CD/ROM and web-based training at any time to
meet individual and business needs on a just-in-time manner.
56

1. Quality Management Plan – Sample (cont’d)
Metrics
Metrics measure quality performance. Several metrics apply to this project, and more may be developed as the
project progresses. The project team will use a few key metrics as follows:
1. Survey response rate: For the survey to be successful, a response rate of at least 30% must be achieved.
2. Course evaluations: All course participants must complete a course evaluation in order for their training to
be tracked in our corporate professional development system. In addition to evaluations on more detailed
topics, there will be an overall course rating. The average course rating should be at 3.0 or better on a 5.0
scale.
Problem Reporting and Corrective Action Processes
Project plans will include clear roles and responsibilities for all stakeholders. The person responsible for an
individual task should report problems to appropriate managers (see the project organizational chart) and work
with them to determine and implement corrective actions. Major problems should be brought to the attention of
the project manager, who should elevate problems that might affect project success, including meeting scope,
time, cost, and quality goals, to the project steering committee and then the project sponsor. It is crucial to
address problems as early as possible and develop several alternative solutions.
Supplier Quality and Control
The project manager will closely monitor work performed by suppliers, with assistance from our supplier
management department. All contracts must clearly state quality standards, metrics, etc.
57

2. Process Improvement Plan…
 Specifies plans for periodically assessing the project, to
determine areas for improvement, and to implement the
improvements.
 Ensures that the process improvement plan is closely
related to the problem resolution plan.
 Inclusions in the improvement plan:
 Process to identify project processes that can be improved without
serious disruption to an ongoing project
 Identification of project processes that can best be improved by
process improvement initiatives at the organizational level
58

3. Quality Metrics
Project metrics selected should:
 Reflect the voice of the customer (customer needs)
 Ensure that the internal metrics selected by the organization
are achieved
 Be simple, straightforward and meaningful
 Create a common language among diverse team members
59
This Photo by Unknown Author is licensed under
CC BY-SA
Remember the...

3. Project Quality Metrics - Examples
60
 Scope containment
 Quality of deliverables
 Duration
 Cost
 Risks
 Effort
 Productivity
 Stakeholder involvement
 Project team performance

3. Product Quality Metrics – More Examples
 Defect Frequency
 Failure Rate
 Availability
 Reliability
 Mean time to respond
 Mean Time to repair
61

A Word on Metrics…
 Meaningful to the customer
 Customer must agree that the metric provides value
 Distinguishes between acceptable & unacceptable
 Must be repeatable over time
 Needs to indicate a trend
62

3. Sample Quality Metrics
The following quality metrics apply to this project:
1. Survey response rate: In order for the survey to be successful, a response rate of at least
30% must be achieved. Most surveys will be administered online using the standard
corporate survey software, which can track the response rate automatically. If the
response rate is less than 30% one week after the survey is sent out, the project manager
will alert the project steering committee to determine corrective action.
2. Course evaluations: All course participants must complete a course evaluation so that
their training can be tracked in our corporate professional development system. In addition
to evaluations on more detailed topics, there will be an overall course rating. The average
course rating should be at least 3.0, with 5 being the highest score. Surveys should
include questions measured on a Likert scale. Example: “My overall evaluation of this
course is ……” Respondents would select 1 for Poor, 2 for Fair, 3 for Average, 4 for Good,
or 5 for Excellent.
63

4. Quality Checklists
 Checklist: a list of items to be noted or consulted
 Helps project teams verify that a set of required topics or
steps has been covered or performed
 A single project can have many different checklists, e.g.:
 Interviewing project team members
 Selecting suppliers
 Reviewing important documents
 Ensuring a room is ready for training
64

4. Sample Quality Checklist
65

Steps to take:
 Agree on what is being observed
 Decide on time period
 Design form
 Collect data
4. Quality Check lists - steps
66

….a note on Check lists vs. check sheets
Check sheet:
 tally sheet
 used to collect data and record it in an organized way
Check list:
 a ‘to do’ list
67

5. Project Document Updates
Project documents that may require updating:
 Scope statement
 Stakeholder register
 Cost performance
 Schedule
 Risk register
 WBS
68

Conclusions?
 QFD is a powerful methodology that ensures that All
operations of the company are driven by the voice of the
customer
 Savvy marketers understand customer needs as being ‘basic’,
‘performance’, or ‘excitement’, each with very different
implications for the business
 Choosing appropriate quality metrics requires careful
consideration…
69

For next week…..
Topics to be Covered
(8.2) Manage Quality
To do:
 Assignment #3 is due!
 Read Chapter 5 in the text (Project Quality Assurance)
70

Course Textbooks
Course Textbook reminder
Project Quality Management, Why, What and How
SECOND EDITION, 2014 (Updated for 2019)
Kenneth H Rose, PMP
ISBN 978-1-60427-102-7
71

QUALITY FUNCTION DEPLOYMENT (QFD): A CASE STUDY
Robin Rawlings-Quinn, Manager, Market Research and Developmental Process, Intertape Polymer
Group, Marysville, MI
Abstract
Quality Function Deployment (QFD) was conceived in Japan in the late 1960's, and introduced
to America and Europe in 1983. This paper will provide a general overview of the QFD methodology
and approach to product development. Once familiarity with the tool is established, a real-life
application of the technique will be provided in a case study. The case study will illustrate how QFD
was used to develop a new tape product and provide counsel to those that may want to implement the
QFD process.
Introduction
Quality Function Deployment (QFD) was conceived in Japan in the late 1960' s, and introduced
to America and Europe in 1983. During the period between the late 1960's and early 1980's, the
concept of QFD was evolved from the belief that Total Quality Control must include not only checking
of the control points during production, butan understanding of the requirements prior to the design
phase. In the late 1960's, Japanese companies were breaking from their post World War II mode of
imitation and copying to a more original mode of product development 1,making design quality an
important consideration. The need to understand the critical design issues prior to production was
acknowledged and QC process charts were widely used to ensure that the design criteria were met
during manufacturing, but there was no formal system to translate the customer's needs into the initial
design and subsequent process control points. Thus, an opporttmity was created for QFD to come to
fruition as a method to check the design itself for adequacy in meeting customer requirements and to
translate those requirements to production.
At this juncture, the quality chart as created by the Kobe Shipyards of Mitsubishi Heavy Industry
(MHI) became known. The quality chart developed at MHI showed the relationship between customer
needs and quality characteristics. Because the quality chart was first created at Kobe, it is often stated
that QFD originated there. However, Akao states that "I first wrote about quality deployment, however,
in an article published in April 1972, which described both the terminology and the procedure. This
article was a compilation of what I had taught and experimented with at various companies over a six
year period beginning in 1966. The writing of this article took place before the MHI quality chart was
made public in May of 1978" 2. In 1983, Akao published an article on QFD in Quality Progress, the
magazine by the American Society of Quality Control, and began giving lectures and seminars to
American audiences. It was at this time that QFD was brought to the American automotive industry and
the QFD Institute was founded. Since then, QFD has been extensively utilized in many diverse
applications and industries. Examples of this diversity include the use of QFD in developing education
products for Northem Australia beef producers 3, designing the animatronics for the Triceratops
Encounter at Universal Studios in Florida4, exploring a new market for fleshpork sausage in southem
Brazil5, and improving the Ritz-Carlton's housekeeping system6. There have also been numerous QFD
projects in the automotive industry including Visteon's power train control systems division work on
fuel system components7and Ford Motor Company's project on automotive painting8.
i
27

Benefits of QFD
The major advantage of the QFD process is that it encourages proactive product development
instead of reactive product development (Figure 1). Proactive product development results in fewer and
earlier design changes, decreased development time, fewer start-up problems, lower start-up costs, fewer
field problems, and a more satisfied customer. A less obvious, though equally important, benefit of
QFD is that it facilitates organizational knowledge transfer and establishes a proprietary knowledge
base. The matrices that are generated during a QFD project make the logic flow obvious and act to
preserve technical and customer knowledge. This affords others in the organization the opportunity to
easily access and use the accumulated knowledge.
J
r~
ouml
r~
"-.14 months
y % Complete
Time
Proactive
Company
........ Reactive Company
Production
Start
Figure 1. Change Comparison 1°
QFD Defined
As well as having several alternative translations (Table 1), the phrase Quality Function
Deployment is a literal translation of the Japanese Kanji characters Hin Shitsu Ki No Ten Kai 9.
Table 1. Alternate Translations
Hin Shitsu Ki No Ten Kai
Quality
Features
Function
Mechanization
Deployment
Diffusion
Attributes Development
Qualities Evolution
The true meaning of the phrase QFD is customer driven product (or process or service)
development. It is a system for translating customer requirements into appropriate company
requirements at each stage, from research and product development, to engineering and manufacturing,
to marketing/sales and distribution. QFD is a disciplined, systematic method that ensures the voice of
the customer is heard throughout the development, manufacturing, and product launch processes. Some
say that QFD is a way to "neutralize the voice of the executives or engineers". This rather sarcastic turn
of the phrase has its roots in the idea that customer's needs are paramount and that what executive
management or engineering thinks the customer needs or wants may not be reality. QFD forces a
consideration and prioritization of needs based on the customer's own words, terminology, and actions.
28

Understanding Customer Needs
The Kano Model 11is a useful tool in understanding customer needs (Figure 2)12.
/t at d ~ very N#
t~'ssat/s~
Figure 2. Kano Model
The Kano model categorizes customer needs into three groups" basic, performance, and
excitement. This model must be applied to a specific market segment; for example, customer
expectations for a commodity masking product are significantly different from those for a high
temperature automotive masking product.
Basic needs are those that get a company in the market; they are not spoken unless violated. For
example, at a hotel, you don't ask for a bed, you expect it to be there. If you show up and there is no
bed, then you would speak the need (after it was violated). Basic needs, no matter how well done, can at
best make the customer neutral. Continuing with our hotel example, if there are 3 beds in the hotel room
and you are traveling alone, that doesn't make you any happier than if there was one bed. In terms of a
tape product, if high temperature performance up to 300°F is required, and you give the customer a
product that works up to 400°F, but his process never gets above 300°F, then the added temperature
resistance does not increase his satisfaction. However, if the product does not function at 300°F (a basic
need), then the absence of such need will be noticed. Sources of basic needs include complaints,
industry standards, what your competitors are doing, and your own product expertise.
Performance needs are known as those that keep a company in the market. They are spoken by
the customer and considered when purchasing decisions are made. Performance needs make the
customer happy or unhappy, and the customer's happiness is proportional to how well the performance
needs are met. For a pressure sensitive product, it is a basic expectation that it will stick to a surface
29

with pressure. However, a performance need would be the amount of pressure required (i.e. the less
rubdown pressure the customer has to apply, the happier he is). Other examples include delivery (the
faster the better), express hotel checkout (the fewer the steps, the better) and the number of machines in
the fitness center (the more the number and variety, the better). Performance needs can be gathered by
market research, focus groups, surveys, clinic, interviews, and by contextual inquiry (asking questions
while observing the product in use).
The last category of needs per the Kano model are those that afford the greatest opportunity in
terms of becoming a market leader or innovator. These needs are known as excitement needs. Like
basic needs, excitement needs are unspoken. However, unlike basic needs, which are expected and
known, excitement needs are beyond customer expectations. For this reason, they are generally
unknown and difficult to uncover. Some of the techniques used to uncover these needs include looking
upstream and downstream in a customer's process, evaluating how a product has evolved with time,
looking for unconventional uses of the product, and involving people from outside the industry.
Excitement needs are pleasant surprises, leap improvements, "bells and whistles", and sources of
customer delight. As such, if an excitement need is not fulfilled, it does not impact customer
satisfaction. If an excitement need is fulfilled in any way, there is movement on the curve towards
increased customer satisfaction. "Me too" companies do not address excitement needs; these needs are
handled by innovative companies that are looking for the next generation product or service.
Excitement needs for tape might include a protective tape that is pre-printed thus obviating the need for
the customer to apply a separate identification label, or a masking tape that changes color after being
subjected to a certain time/temperature cycle to indicate a paint has cured. Other examples of
excitement needs include the cooler that is built into a recliner so the customer doesn't have to get up
and go to the refrigerator, a fast food restaurant mixing the cream and sugar into a drive-through
customer's morning coffee, and a wedding photographer posting a photo proof book on the intemet for
the viewing and ordering of copies by out of town friends and relatives. None of these things are
expected and if they were lacking, a customer would not complain. However, the presence of them
causes the customer to stand back and take notice.
Evolution of Needs with Time
An extremely important aspect of the Kano model is the idea that needs evolve over time. As
time marches on, excitement needs become performance needs and performance needs become basic
needs. The exciting and innovative needs get copied by competitors and become standard and expected.
There are many examples of this in the auto industry where automatic transmission, cup holders, visors
with clips, automatic windows, and airbags were once considered excitement needs and are now
expected in a new vehicle. Express checkout at hotels, which used to be an excitement need is now
considered a performance need and electronic ticket check in at the airport is moving from an
excitement need to a performance need.
Voice of the Customer
QFD is a tool that ensures the identified customer needs are considered in a design effort. The
initial step in a QFD project is the gathering and analyzing of the voice of the customer; this step is vital
in identifying potential opportunities in terms of excitement needs. The gathering of the voice of the
customer can be done in many ways, including internal brainstorming, review of complaint and warranty
logs, interaction at trade shows, focus groups, technology forecasting, and customer visits. Going
directly to the end-use customer affords the opportunity for not only an interview regarding needs and
wants, but also the chance to watch a customer use a product. This method helps the QFD team become
focused on what the customer is actually doing with the product versus what the team thinks he is doing
30

or what the customer says he is doing. It also requires the design team to think in the customer's terms
and language, not in technical, engineering, or industry terms. This is achieved by a recording of the
needs in the customer's exact words with follow up questions asked to clarify. However, a translation
into technical terms does not take place until later in the QFD process.
QFD Methodology
QFD utilizes a series of matrices, referred to as the House of Quality (HOQ), to translate the voice
of the customer through product design and manufacture. There are four phases of the process: Phase
1-Product Planning, Phase 2-Design Deployment, Phase 3-Process Planning and Phase 4-Production
Control. The HOQ provides a direct link from phase to phase. The four key elements of each HOQ are
what (customer needs), how (company measures), relationship (between what and how), and how much
(target value). The company measures (how) of one phase become needs (whats) of the next phase.
Target values (how much) are carded over from phase to phase to ensure the objective values are not
lost. The cascade process continues until each objective is refined to an actionable level. In order to
keep the process manageable, the fimneling of critical items to the next phase is necessary.
In addition to the four key elements mentioned above, extensions of basic QFD are used as
required for specific projects. The correlation matrix is the "roof' of the house and establishes the
relationship between the hows. This allows for conflict identification early in the process. Conflicts can
be used to generate excitement qualities since competitors may also have the conflict. A tape example is
the need for high adhesion to backing and low high speed unwind. Competitive assessment, which
depicts each item (either the customer needs or company measures) in terms of the current product and
the competition, is another extension of the HOQ. For the customer needs (whats), the customer's
perception of the current product versus the competition is determined and a Customer Competitive
Assessment added to the house. For the company measures (hows), an analysis of competitive products
takes place and a Technical Competitive Assessment added to the house. The technical assessment can
be useful in establishing values for the target values.
Another useful extension of basic QFD is the addition of importance ratings for the customer
needs. The ratings must truly represent customer beliefs rather than internal company beliefs; therefore,
they are based on a customer assessment or prioritization. The importance ratings for the customer
needs are then correlated to importance ratings for the company measures. Additional extensions
include service complaints, organizational difficulty, service repairs, service cost, and regulatory and
company requirements. See Figure 3 for HOQ with extensions.
31

Strong Positive •
Positive O
Negative X
Strong Negative #
Directionof Maximize
1"
Improvement Minimize,[,
Nominal 0
...... Co'mpanY
_ ~ a s u r e s
Customer
Reqmrements
What
How
Relationship
Matrix
Strong •
Medium 0
Weak
Customer
Ratings
1 (low)
5 (high)
Customer
Competitive
Assessment
OrganizationalDifficulty
Targets
Engineering
Competitive
Assessment
1 (low)
5 (high)
AbsoluteImportance
Relativelmnortanee
,,
[[
!/
How Much
32

QFD for the Development of a Heat Activated Tape Product
Intertape Polymer Group began using QFD in late 1997. A team consisting of representatives
from Purchasing, Marketing, Process Engineering, Research and Development, and Quality Assurance
was formed to use QFD to develop a heat activated tape product. An interview guide with questions
designed to elicit performance and excitement needs was developed and visits to several customer sites
arranged. Two members of the QFD team, along with an IPG sales representative, participated in the
customer interviews. The survey questions were asked of several employees at each facility and their
answers recorded verbatim. Employees were also observed as they processed the product through their
operation. Those observations were documented on the survey as well. After all of the interviews were
conducted, the customer needs, in the customer's own words, were organized and consolidated by the
QFD team via an affinity diagram. This process of grouping similar needs together helped in terms of
organization; however, even more importantly, it gave the team members who did not participate in the
interviews a chance to better understand the customer needs.
The initial customer participants were then enlisted to complete a customer competitive survey
and importance ranking of the identified needs. All of this information was subsequently entered on the
HOQ chart (Figure 4) along with other items that the team felt were important but had not been
mentioned by the customer. These were grouped together under the "design/tech" heading. The next
step was the establishment of the company measures. The company measures were organized into
groups and entered into the HOQ. In our project, thecustomer need of"once activated, stays adhered"
was measured by the lead pull force test. A technical competitive benchmark study was performed on
competitive products and that data added to the chart. Any conflicts between the customer competitive
survey and the engineering survey were discussed and resolved at this point.
•Next, the team developed the relationship matrix between the customer needs and the chosen
company measures. In some cases, there was a blank row or a blank column. A blank row meant that a
customer need did not have a company measure associated with it. In those cases, a company measure
ornew test was developed. A blank column indicated that a company measure was in place that did not
relate to a customer need. These tests were removed from the matrix.
The team then developed the preliminary targets for the company measures. This was done
based on an understanding of the competitive technical assessment results as related to the customer
competitive assessment. In our specific case for example, a target for lead pull force was based on
Competitor 2's test results since the customer rated Competitor 2 as superior for the need "once
activated, remains permanently adhered".
Once the target values were developed, the correlation matrix (roof) was developed to determine
the relationship of the company measures to one another. The team evaluated each company measure
(how) by asking "if I optimize this 'how', does it help or hurt his 'how'". For our project, it was
determined that optimizing lead pull force helped "visual test after activation" but hurt "probe transfer at
X°F''. The analysis of the roof leads to discussions about how to deal with conflicts. One option is to
turn strong negative relationships into either strong positives, positives, neutrals, or at least negatives.
These transformations are achieved by design or technology changes. Other options for dealing with
roof conflict are to compromise by adjusting target value or ignore them. In our example, a compromise
was achieved that was acceptable to the customer.
The final steps in the completion of the Phase 1 HOQ were determining the degree of
organizational difficulty, and establishing the absolute and relative importance of each company
33
i,

measure. In our project, we found it would be difficult to achieve the target of 0 set for "number of
splices per roll", but relatively easy to achieve the target set for lead pull force. Thus, the corresponding
entries for organizational difficulty reflect this. The absolute importance weights were calculated by
multiplying the degree of the importance of a need to the customer by a value assigned to the strength of
the relationship between the need and measure. This is best illustrated by an example. Looking at our
chart, lead pull force has a medium relationship (3-point weight)to ~
customer need of"holds components
without bridging" which has a 5-point weight of importance to the customer. 5 times 3 gives 15 points.
Lead pull force also has medium relationship (3-point weight) to "good conformability around
components" with a 5-point importance for another 15 points. Lead pull force is strongly related (9
points) to "once activated, remains adhered" which has a 5 point weight of importance to the customer
for another 45 points. Finally, lead pull force has a weak (1-point) relationship to "holds components in
place without burst through" which also has a high (5) customer importance ranking. This results in an
additional 5 points for a grand total Of 80 (15+15+45+5) for absolute importance. From the absolute
importance, a relative importance can be calculated.
The importance ranking, in conjunction with other criteria, is used to determine which company
measures should be deployed to Phase 2. In addition to highly ranked items, some of the other items to
consider for further deployment include things that can be used as sales points, things that are new and
different, things that are difficult to achieve (means that it is also difficult for the competition), things
that will improve competitive position, things related to previous complaints, and in some cases, the
team's gut instinct.
For our QFD project, Phase 2 and Phase 3 were combined into one as both material and process
characteristics directly influence the end product characteristics. The choice to combine phases is
project or process dependent. The first step in our combined Phase2/3 (Figure 5) was to enter the Phase
1 "hows" (company measures which were chosen based on factors described above), their targets, and
importance ranking from Phase 1 into the second HOQ. These now become, instead of customer
requirements, design requirements. At this point, the R and D team began the design work with the
customer needs and established requirements foremost in their minds. The team usedDesign of
Experiment to determine the best combination of ingredients and process conditions to achieve the
objectives on the HOQ. Once the material and process parameters were optimized, the "how" section
and the corresponding target values, and a measure of manufacturing difficulty were completed for the
second house. The relationship matrix was completed in the same manner as the first house with the
question being "if I control this process or ingredient parameter, how will it impact or satisfy the design
requirement"? In our case, the control of several process and ingredient characteristics, such as coating
weight, resin type, and resin level, was found to strongly impact the design criteria for lead pull force.
The chart was analyzed for blank rows or blank columns to make sure all of the design requirements had
a corresponding ingredient/process characteristic and that all of the ingredient/process characteristics
were related to a design requirement. The team also performed a reality check to confirm that the
ingredients and process characteristics were measurable and controllable.
Phase 4 of QFD is production planning. This is the step that translates the initial customer
requirements to the shop floor, quality assurance, maintenance and other departmental work instructions.
After the importance analysis of the Phase2/3 chart is complete, the selected ingredient/process
characteristics, along with their target values, are entered into a fourth chart. The team then determines
the systems, procedures, instructions, training, and control mechanisms that need to be put in place to
ensure that the specified ingredient/process characteristics will be met. These are entered on the fourth
chart (Figure 6). Phase 4 deployment will vary depending on specific company practices and systems;
34

however, the goal of ensuring that the voice of the customer is carried through to the operating personnel
is the same for every company. In our example, coating weight, which related to lead pull force, was
carried to Phase 4 and specific production requirements put in place. The appropriate process control
instructions for the on-line weight control monitor were established, the troubleshooting guidelines
updated, and a calibration schedule established. If a QFD project is done correctly, each control
mechanism put in place in Phase 4 will be easily traceable back to an original customer requirement
found in Phase 1. In this case, a specific calibration requirement can be traced back to the customer's
spoken need ("once activated, remains permanently adhered") which was discovered during initial
interviews.
Summary
Attaining higher levels of customer delight, increasing the speed and efficiency of the product
development process, and increasing profits are goals that all of us strive to achieve while developing
new products or improving current products. Intertape Polymer Group has found QFD to be a valuable
tool to help quickly understand and integrate customers' needs into our products. The process affords
IPG the ability to develop market-winning products by ensuring that all phases of product development
are integrated together to satisfy the voice of the customer.
35

.1
Project # 980011
July 24,19~8 (Final)
D. Dupes
C. Grew
D. Kovach
R. Rawlings-Quinn
P. Rhude
R. St. Coeur
DIRECTION OF IMPROVEMENT
s
WHAT$
. . . . Rons m n= g~'~-~ ....
:Residue
unwinds,without jerking ~', blocking ....
Leaves no residue/buildup on plastic guide roller
Leaves no residue~b,uildup at the punch i
No buildup at the sprocket pin
Only preventive maintenance (no cleaning) needed
.... No r.es!due on any machine surfaces
Holds components in place without bridgin!l
Holding Has good eonformabil!ly around tempo,,,nen~
Power Once activated, remains permanently adhered_
Holds component= in place w/,0 burst through
Splices
Splices are perforated as easily ae,,,tape
NO ~plices
Max, roll dis allow= all rolls to fit on all machines
Blue Sides
I.s_easy to perforate (punch)
Temperature
Has • low activation temperature "~
Activates at temps, that do,n~:damage oompo~ts :,,:!,,
Manufacturing cost less XXX price
!+l+i+l~l÷i÷]+l+l+l+l+l~l+lOlOl,VlOlOlOi+l,;,
Functional or hidden splice i
Has a way of signaling end of the roll is near
Destgn/Techi Width
Lengm
Caliper
Comes on a plastic corn
" ' ORGANIZATIONAL DIFF'iCULTY
TARGETS
f~U.I~- 0 C0".;~.::c' 2
,-- ~ 14J ~ ":v~.';.¢:'::~ "
'~r--~
Izo.,,,
'zOrn
',,,O<
ABSOLUTE IMPORTANCE
RELATIVE IMPORTANCE
.~0sl~;ve 0 ' ~/ec:,..':'
0 3
'°°"2]
" " CUSTOMER
" 1 ' RATING
cR~llamcl~rlstic Performance Proeeuability i Finished Roll Specification.
,,.,------------ = i"-"~
Z ~ E '
~']e o.l r = ~. -- El ~
•-I l'-'~x $ ==: I.= ti~I 8,~'~/ =-"
,.e
:~ = "-- ~ ='~! -' = =t*- = = e o o!_=. ~. o
m e ~ m 0' ~ ~ E o o~E .'g ='= --- e=
2 " "
2 0
l~iAi
,~
i~ i : , ,® ' ' ~ C
:....... : i :
" i " i i"l °
~2 . . . . . . L _L '_ ' ! OiO" ] : ' .
~i :~ i ~ . . . . : : ~ : ~ '
- . ; _,,
~i ; ; i i!o, ioi ~ i .... ~, °
' i : 1
:, r®io , '' ~ ~-~ ,,,o
....
. ' i ~ ......... A.® .=
4 t, [1 "~ ~.,'" "e ', .......
3 ~ ; !":,',~,"" ' ' ' i T t I i
_ : . *',,:~L i' ' " ~I " ~" ~'' '-- ~ ' --
®
Figure 4. Phase 1 QFD Chart
36

Phase II and III Ingredientsand ProcessPlanning
Jonuan/¢, 1999
D. Dupes
C. 0row
D. Kovach
R..Rowlings-Quinn
P. Rhude
R. St. Coeur
_ • , , ,
Cmto~r Tc~r~+,s
:t of gaps =0 3
r ~
~ V'~Udfor gaps
~ Rolldiameter
Lead pullforce
= V'=~L~i
after oct. (bridgi~)
x"m~ [2
....... >X~ 2
100Xpass I2
' <xn~n 'z
Amt buildupplas,!icrafter Visualpass 5
v~s~[o~) " I~
Elongatedholes
Amt buildup
machine
Widthtolerance
= Leader/Rollsignal .....
~ Splice
materialas t,o,pe
)'~.~=Caliper
ManufacturingOiff'¢ulty
Visuol
(0) 4
x+l-x iz
....
<$Xcon~
Present
kiai'i Desc.
PartCharacteristicValues
HowImpatience
. . . .
I k4All~IX WEK)IIE;
~
treng (~ 9
edium0 5
eok /~ __%__.
=
®
A
Adhesive
© .....
®i®
® ©®®® ®®®A
o 0®®® ooo®
,, ,
®
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0
A
A
o
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0
0 A
i3 ® O00.
~¢
. , ,
~+l-x,, 2 0 ® iO l® 0 r® ®
!i!i!iii!i!!!iii!iiiiiiiiiiiiiii;ii!!!iiiili!iii!iiil)i!ii!i!ii!i!!iii!
',,,e* ¢~ ..- ~ ,.- _~- ,-- ~-__ ,,,-
:f~:!,..~......~..!.:~..?.!.~!:?.~.~)~.....~.~.!~)..i..i!iF!...,.~..~!..i.......1!~.~:~.
÷ ~ ~. x x >~ x , x
~ x ~ x ° .>< x
O
Figure 5. Phase 2 and 3 QFD Chart
Sr~/Pock
,,
,.-,.
~. ~ ~ 8
®O
®
AA)X
® ®
OO
O I
O
A
A
i
r~
®
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x x x x x
37

.~noseIV ProductionPlanning
uanuory8, 1999
O. Dupes
C. Grow
0. Kovoch
R. Rowlings-Ouinn
P. Rhude
R. St. Coeur
equirements
t~ateriaf(ingredients)
P.rocessChoracteristics .
Coot wt. acrossweb
Coot,t.
Resin type I
R~in,~ I
,adhesive-
Adhesiveiype
ioop'tack '
_ ,.
Peel to ss
. . . . . .
Shear
ryp~. . . .
Backing Elongation "
Type
ReleaseCoot
~'leight(w/barrier coot)
. . . . .
trong
ediurn
C)
eak /~ _
I
l
Port/Process Values
+/- XJ/ream
x +l-X#Ireom
X
x phr
. . . . . .
~x
Win
, ,
x~li. , ,
!X#>Xhrs
X
. . . . . . .
,,X~ rain
X
. . . . .
Xoz/yd2 ,.,
"
~ "" ~, ,5
~ > .
>. ".=
®®®
.... ! ..
o--
"d =
. . . . ( ~
®
:®®
®®
®®
....
®®®
...
® ®[®
Figure 6. Phase 4 QFD Chart
References
1. Akao Yoji, "QFD"Past, Present, and Future", International Symposium on QFD '97
2. Ibid
3. Blakely, Shone, et al. "Application of QFD to Developing Education Products for Northern Australia
Beef" 2000 12 th Symposium on QFD
4. Bolt, Andrew and Mazur Glenn, "Jurassic QFD" 1999 1lth Symposium on QFD
5. Ormenese, Francisco M, et al. "Exploring a New Market for Sausage Using QFD" 1996 8 th
Symposium on QFD/2ndInternational Symposium on QFD
6. Kirk, J.N. and Galanty, A.F., "The Ritz-Carlton Housekeeping System: Service QFD Application"
1994 6 th Symposium on QFD
7. Vinarcik, Edward JH., "Application of Quality Functional Deployment to Automotive Fuel System
Components" 1998 10th Symposium on QFD
8. Miller, C., "Using QFD to Improve the Process of Automotive Painting" 1994 6th Symposium on
QFD
9. American Supplier Institute Inc, Dearborn, Michigan "Quality Function Deployment for Products"
Version 5.5 1997.
38

10. Kano Noriaki, et al. "Attractive Quality and Must-Be Quality" [Translated by Glenn Mazur].
Hinshitsu 14, no. 2 (February)"39-48
11. American Supplier Institute Inc, Dearborn, Michigan "Quality Function Deployment for Products"
Version 5.5 1997.
Acknowledgements
The authorwishes to acknowledge the Intertape Polymer Group QFD team participants" Dan
Dupes, Chris Graw, David Kovach, Paul Rhude and Richard St. Coeur.
J
39

5 - 1
Copyright © 2014 Pearson Canada Inc.
Plan Quality Management
Tools & Techniques &
Outputs

5 - 2
Plan Quality
Management
Tools and
Techniques
• Benchmarking It compares actual or planned project
practices to those projects to generate ideas for
improvement and to provide a basis by which to measure
performance.
• These other projects can be within the performing
organization or outside of it, and can be within the same or in
another application area.

5 - 3
Plan Quality
Management
Tools and
Techniques
1. Flowcharting: A graphical
representation of a process
showing the relationships
among the process steps, it
shows the activities,
decision points, branching
loops, parallel paths, and
the overall order of
processing by mapping the
operational details of
procedures that exist within
a horizontal value chain of a
SIPOC model.
Data
Representation

5 - 4
Heizer, Render, Griffin
Operations Management
Canadian Edition
Chapter 5: Design of Goods and Services
Slides adapted for Canada by Mats Gerschman

5 - 5
Quality Function
Deployment
• Process for determining customer requirements ( “wants”)
and translating them into attributes ( “hows”)
• Goal is to make sure each functional area can understand and
act on the requirements
• These identifies the seven basic steps for building a QFD
house of quality, a graphic technique that utilizes a planning
matrix to relate customers “wants” to “how” the firm is going to
meet those “wants.”

5 - 6
Quality Function
Deployment
1. Identify customer wants – what do they want?
2. Identify how the good/service will satisfy customer wants –
identify specific characteristics to show how product will
satisfy customer wants
3. Relate customer wants to product hows – build a matrix (like
the house of quality) to show this relationship
4. Identify relationships between the firm’s hows – how do our
“hows” tie together?
5. Develop importance ratings – compute our importance
ratings
6. Evaluate competing products – how well do competing
products meet customer wants?
7. Compare performance to desirable technical attributes –
compare your performance and the competitor’s

5 - 7
QFD House of Quality
Relationship
matrix
How to satisfy
customer wants
Interrelationships
Competitive
assessment
Technical
evaluation
Target values
What the
customer
wants
Customer
importance
ratings
Weighted
rating

5 - 8
House of Quality Example
Your team has been charged with
designing a new camera for Great
Cameras, Inc.
The first action is to construct a
House of Quality.

5 - 9
Customer
importance
rating
(5 = highest)
Lightweight 3
Easy to use 4
Reliable 5
Easy to hold steady 2
Colour correction 1
What the
customer
wants
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
Step #1

5 - 10
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
Low
electricity
requirements
Aluminum
components
Auto
focus
Auto
exposure
Paint
pallet
Ergonomic
design
How to Satisfy
Customer Wants
(What we can do)
Step #2

5 - 11
Lightweight 3
Easy to use 4
Reliable 5
Colour corrections 1
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
High relationship (5)
Medium relationship (3)
Low relationship (1)
Relationship Matrix
Step #3

5 - 12
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
Low
electricity
requirements
Aluminum
components
Auto
focus
Auto
exposure
Paint
pallet
Ergonomic
design
Roof of the
house indicates
the relationships
between the
things we can do
Step #4

5 - 13
Weighted rating
(for its design attributes)
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
Lightweight 3
Easy to use 4
Reliable 5
Our importance ratings 22 9 27 27 32 25
Step #5

5 - 14
Company
A
Company
B
G P
G P
F G
G P
P P
Lightweight 3
Easy to use 4
Reliable 5
Our importance ratings 22 5
How well do
competing products
meet customer wants
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
Step #6

5 - 15
What the
Customer
Wants
Relationship
Matrix
Technical
Attributes and
Evaluation
How to Satisfy
Customer Wants
Interrelationships
Analysis
of
Competitors
Target
values
(Technical
attributes)
Technical
evaluation
Company A 0.7 60% yes 1 ok G
Company B 0.6 50% yes 2 ok F
Us 0.5 75% yes 2 ok G
0.5
A
75%
2’
to
∞
2
circuits
Failure
1
per
10,000
Panel
ranking
Step #7

5 - 16
Completed
House of
Quality
Lightweight 3
Easy to use 4
Reliable 5
Color correction 1
Our importance ratings
Low
electricity
requirements
Aluminum
components
Auto
focus
Auto
exposure
Paint
pallet
Ergonomic
design
Company
A
Company
B
G P
G P
F G
G P
P P
Target values
(Technical
attributes)
Technical
evaluation
Company A 0.7 60% yes 1 ok G
Company B 0.6 50%yes 2 ok F
Us 0.5 75% yes 2 ok G
0.5
A
75%
2’
to
∞
2
circuits
Failure
1
per
10,000
Panel
ranking
22 9 27 27 32 25

5 - 17
House of Quality Sequence
Figure 5.4
Deploying resources through the
organization in response to
customer requirements
Production
process
Quality
plan
House 4
Specific
components
Production
process
House
3
Design
characteristics
Specific
components
House 2
Customer
requirements
Design
characteristics
House 1

PMPG 5001
Management
Lecture 11 – Manage Quality
W2022 – On-line

◼ Some common quality-related terms
◼ Quality Assurance vs. Quality Control
◼ Potential quality metrics
◼ The influence of QA on branding and business results
◼ The importance of process analysis
3

Agenda Today
◼ Assignment #3 was due at 9:00AM
◼ Some review
◼ Manage Quality
◼ SCGC case study & discussion
◼ Business processes & analysis
◼ Set up for assignment #4
4

Some review…
1. What is QFD stands for?
2. According to Kano, if your flight luggage was not damaged, you are in
(basic or excitement) category? And you are (satisfied or dissatisfied)?
3. Test and Inspection Planning is (input – tools- output) of PQM?
4. Project documents is (input – tools- output) of PQM?
5. Qual. Mgmt. plan (input – tools- output) of PQM?
6. Brainstorming Structured one at time or as they occur …?
7. Effective meeting should include what
5

Project Quality Focuses On…
Deliverables
•Products, services, processes, or plans
created as a result of doing a project
Interim
Deliverable
•A final deliverable for the customers of the
project.
Final
Deliverable
•An interim deliverable produced during the
process of creating the final deliverable.
6

The Project Quality Lifecycle – Our Progress
Initiating
•Identify
Customer
(Stakeholders)
Planning
•Collect
Requirements
•Define Scope
•Create WBS
•Plan Quality
Executing,
Monitoring &
Controlling
•Manage
Quality (QA
PROCESS
focus)
•Control
Quality
(PRODUCT
focus)
Closing
•Control
Quality
7

PMPG5001
Some Common Quality
terms…

Quality and Grade
Question:
Are quality and grade the same thing?
9
What do you
think?

Grade…example
10
Example: Pen
a $1 Raymond pen and $1000 Montblanc pen
are both used to write. As long as both are
serving this purpose satisfactorily, both have
good quality.
However, the Montblanc pen is a separate
category of luxury products. Hence it is a
different grade

Grade vs Quality definition
Grade : A category or rank used to distinguish items that
have the same functional use but do not share the same
requirements for quality.
11

Quality…recall the definition…
The degree to which a set of inherent characteristics
fulfill requirements 1
13

Quality…
…and as changes occur and deliverables evolve
(especially with iterative or Agile projects), frequent
quality & review steps throughout the project are
required to ensure requirements can be fulfilled
14

Precision & Accuracy
Accuracy vs. precision – video
https://www.youtube.com/watch?v=8Cl5CeiT7hU
2:34 mins.
Accuracy: An assessment of correctness1,
i.e.
 The degree of closeness of measurements of a quantity to that quantity's actual
(true) value2
15

Precision & Accuracy
In the quality management system…
Precision: measure of exactness of a
measurement system
 The consistency of repeated measurements
→ Relates to reproducibility and repeatability
 The degree to which repeated measurements,
under unchanged conditions, show the same
results1
16

Tolerance
Tolerance: The quantified description of acceptable
variation for a quality requirement 2
 Dimensions, properties, or conditions may vary within
certain limits without significantly affecting functioning of
equipment or a process
 Tolerances are specified to allow reasonable leeway for
imperfections and variability without compromising
performance1
18

Control
The process of comparing actual performance with
planned performance, and:
▪ Analyzing variances
▪ Evaluating possible alternatives
▪ Taking appropriate corrective action as needed
20

Corrective Action
Recall that Corrective Action is…
▪ A reactive process
▪ Changes made to bring expected future
performance of the project in line with the plan
21

Preventive Action
Recall that Preventive Action is…
▪ …a proactive process to identify opportunities for
improvement (vs. reaction to problems or complaints)
▪ …a change implemented to address a weakness in a
management system
▪ …where that weakness is not yet responsible for
causing nonconforming product or service
22

Terms in use…some clarity
Quality Assurance…
▪ Addresses the program, methods, quality standards &
definitions
▪ …activities the project team will perform to meet the
project objectives
▪ focus on the process to improve quality
Quality Control…
▪ Addresses the outcomes/results
▪ …monitoring performance & acting on the results
▪ Focus on the product to find defects that still exist after development
23

PMPG5001
SCGC
Case Study

Concept Overview…for SCGC case study
What is Total Quality Management?1
 Customer-focused … customer is the king
 Total employee involvement…. All employees are working toward one goal
 Process-centered…TQM focus on series of steps ( process)
 Integrated system it is the horizontal processes interconnecting these
functions that are the focus of TQM
 Strategic and systematic approach : organization’s vision, mission, and
goals.
 Continual improvement analytical and creative in finding ways to become
more competitive and more effective
 Communications: effective communications plays a large part in maintaining
25

Case study - SCGC…
In random breakout groups, review the Santa Cruz
Guitar Company case study (see ‘Learning Materials’)
and consider:
 How do the operations and quality practices in the case
reflect the principles of Total Quality Management?
14 Craftspeople employed by SCGC
800 Custom guitars produced each year
15 mins.
26

PMPG5001
Manage Quality

8.2 Manage Quality
PMI view:
 …the process of translating the quality management
plan into executable quality activities that incorporate
the organization’s quality policies into the project”.1
 Includes Quality Assurance but also product design
aspects and process improvements
28

8.2 Manage Quality
…Includes Quality Assurance
 …the process of auditing the quality requirements (and
results from Quality Control measurements…) to ensure
appropriate quality standards and operational definitions
are used1
 Implements the activities & processes as defined in the
quality management plan..…to assure stakeholders that the
final product will meet their needs expectations &
requirements.
29

8.2 Manage Quality
Goal:
◼ Build confidence that the project outputs will be
completed in a manner that meets required specs and
expectations
Key benefit:
◼ Facilitates improvement of the quality processes
30

8.2 Manage Quality
▪ The Project Manager has the ultimate responsibility
for Managing (and Controlling) Quality on a project.
31

8.2 Manage Quality
INPUTS
TOOLS AND
TECHNIQUES
1. Data gathering
2. Data analysis
3. Decision making
5. Audits
6. Design for X
7. Problem solving
8. Quality
improvement
methods
OUTPUTS
1. Quality reports
2. Test & evaluation
documents
3. Change requests
updates
updates
32

8.2 Inputs: Quality Management Plan
Recall, the QM Plan is an output of Plan Quality
Management … It is also one part of the Project Mgmt.
plan (a key input to Manage Quality). It describes:
▪ Quality assurance and continuous process improvement
approaches for the project
▪ How the organization’s quality policies will be implemented
▪ The PM team’s plans to meet the project’s quality
requirements
33

The Quality Management Plan can be:
▪ Formal
▪ Informal
▪ Very detailed
▪ Broadly framed
…..as determined by the requirements of the project
34

8.2 Inputs: Project Document (Quality control measurements )
…an example of a project document.
Quality control measurements are the results of QC
activities and can be used to evaluate quality
standards and project processes against:
▪ Organizational standards
▪ Project requirements
35

8.2 Inputs: Project Document (Quality metrics)
...another project document. Recall some potential quality
metrics …
▪ Scope containment
▪ Quality of deliverables
▪ Duration
▪ Cost
▪ Risks
▪ Effort
▪ Productivity
▪ Stakeholder involvement
▪ Project team performance
36

Project Document (Quality metrics) (cont’d)
Product Quality Metrics – more examples
▪ Defect Frequency
▪ Failure Rate
▪ Availability
▪ Reliability
▪ Mean Time to Repair
37

Don’t forget your Process Improvement Plan
…steps for analyzing the project and product
development processes. Consider:
▪ Process boundaries
▪ Process configuration
▪ Process metrics (and control limits)
▪ Targets for process improvement activities
▪ Aligning to the organization’s process improvement plans!
38

8.2 Manage Quality – tools & techniques
INPUTS
TOOLS AND
TECHNIQUES
1. Data gathering
2. Data analysis
3. Decision making
5. Audits
6. Design for X
7. Problem solving
8. Quality
improvement methods
OUTPUTS
1. Quality reports
documents
3. Change requests
updates
updates
39

8.2 tools & techniques…examples
TOOLS AND TECHNIQUES
1. Data gathering
• Checklists
2. Data analysis
• Alternatives analysis
• Document analysis
• Process analysis
• Root cause analysis
3. Decision making
• Multicriteria decision analysis
40

8.2 tools & techniques…examples
TOOLS AND TECHNIQUES
• Affinity diagrams
• Cause & effect diagrams
• Flowcharts
• Histograms
• Matrix diagrams
• Scatter diagrams
5. Audits
6. Design for X
7. Problem solving
8. Quality improvement methods
41

8.2 Recall some other tools we have seen?
1. Cost/Benefit Analysis
2. Cost of Quality
3. 7 basic quality tools
4. Benchmarking
5. Design of Experiments
6. Statistical Sampling
7. Additional quality planning tools
8. Meetings
42

Quality mgmt. & control tools (cont’d)
More tools…
▪ Charts (control, run, etc.)
▪ Statistical sampling
▪ Inspection
▪ Change request review
43

8.2 Tools: Process Analysis
▪ …A data analysis tool
▪ Used in Process Improvement work
▪ …analyze current process(es) to identify needed
improvements
▪ …Continuous Improvement??
44

8.2 Tools: Audits
Structured, independent reviews
▪ …of policies, process and procedures
▪ May be scheduled or random
▪ Conducted by internal or external auditors
▪ … a very good way to confirm:
→ implementation of approved change requests
→ effectiveness of the quality processes
45

Audits (cont’d)
Other reviews/audits useful in quality management
▪ Management reviews: determine status, progress made,
problems, solutions
▪ Peer reviews: determine whether proposed or completed
work meets the requirements
46

Audits (cont’d)
More reviews/audits useful in quality management
▪ Competency centre reviews: validate documentation, studies,
and proposed technical solutions to problems
▪ Fitness reviews and audits: determine fitness of a product or
part of a project
→ address specific issues
▪ Retrospective reviews to determine effectiveness of the
quality processes
→ Address specific issues
→ Suggest new approaches to improve quality…
47

8.2 Tools: Design for ‘X’
‘X’ might be cost reduction, quality improvement,
better performance, customer satisfaction
▪ Set of technical guidelines that may be applied during the
design phase of a product for optimization of a specific
aspect of the design..e.g.:
→ Reliability
→ Usability
→ Cost
→ Safety
48

8.2 Tools: Problem solving
…finding solutions for issues or challenges.
NB: Effective, systematic problem solving is a
fundamental element in quality assurance & quality
improvement!
▪ Defining the problem
▪ Identifying root causes
▪ Generating solutions
▪ Choosing the best solution
▪ Implementing the solution
▪ Verifying solution effectiveness
49

8.2 Tools: Quality improvement methods
Continuous Improvement:
▪ …the world is constantly changing. Any process that is
satisfactory today may well be unsatisfactory tomorrow
▪ Customer demands + a rapidly changing marketplace
require commitment to continuous improvement
▪ Achtung! Without this commitment, your company may
not survive…
50

Kaizen: is a strategy where employees at all levels of a
company work together proactively to achieve regular,
incremental improvements to the manufacturing process.
→ Ongoing,
→ Sustained,
→ Gradual,
→ Incremental changes
…as required to improve
51

▪ …Uses objective measurement & data
▪ Focus: managing the total process and sub-processes
→ …vs. output of the project
▪ The process is held constant only after it has been proven
capable of the work
→ Hence, the product (should) then naturally meet requirements.
▪ Remember: focus on the System, not the Individual
52

Some things to think about 1:
▪ ~ 85% of problems are directly attributable to management
→ …. the 85/15 rule
▪ Employees will attempt to work and succeed, despite a
broken system
▪ A system can be stable yet can turn out costly errors and
mistakes
53

Steps:
1. Define and standardize processes (and sub-processes)
2. Assess process performance
3. Improve processes
4. Measure progress
Sound like PDCA???
54

Two Useful Concepts…:
1. Voice of the Process
→ …what the process is currently doing
→ ...what the process is able to achieve
→ ...is the process under control? (or not?)
→ Translates process behaviour information into statistical
data
→ Basis for management action
→ Recall the Control chart…
55

2. Voice of the Customer
→ …how the customer wants the process to be
→ Customer requirements translated into product or
service performance characteristics
→ Necessary conditions for customer satisfaction
→ Recall the QFD case study…
56

The Goal…:
Align the voices - i.e.
▪ Align the capabilities of the process & control limits with
customer’s specification limits and acceptance criteria
57

QA Branding and business results…
58
Ass
Example of Assuring quality company in video Games
Go to https://gamecloud-ltd.com
and read……..
▪ https://gamecloud-ltd.com/video-game-quality-
assurance-testing-process-part-1/
▪ https://gamecloud-ltd.com/video-game-quality-
assurance-testing-process-part-2/
10 mins.

59
Ass
independent quality standards??
STAGES OF GAME TESTING
1.Alpha Testing:
Testing is done parallel to the development phase
1.Beta Testing:
→ when the game is almost developed and is ready for production
→ Measured against established QA limits

60
Ass
Assuring quality in video Game
HOW TO DO QUALITY ASSURANCE
1. Requirement Classification
2. Validation Plan
3. Test Documentation
4. Assuring Good quality Products
5. Quality Improvement Plan

61
More standards…
Tasting panel evaluation for:
1.Requirement Classification
2.Identifying system and user requirement
3.Identifying dependent assets
4.Identify the theme of the game like design, camera view, etc
5.Check if the functional requirements are consistent and
comfortable to player

62
Ass
Do these QA standards make a difference?
the world’s most beloved game franchises, EA SPORTS
FIFA™, Battlefield™, Apex Legends™, The Sims™, Madden
NFL™, Need for Speed™, Titanfall™, and Plants vs. Zombies™

PMPG5001
Solving Process
Problems…

Solving Process Problems
Define the
quality Issue
Understand
and define the
process
Select
improvement
opportunities
Analyze
improvement
opportunities
Take action
Check results
Implement
improvement
Monitor
results for
continuous
improvement
64
Achtung!!!

Types of Process Analysis
A simple and VERY useful question in any problem
or process analysis discussion…
▪ What problem are we trying to solve?
65

Process Analysis
Another simple and VERY useful question in
process analysis discussions…
▪ How does this process create value for the
customer?
66

Business Process Improvement
Business Process Improvement 101- video
67
https://www.youtube.com/watch?v=_ObRQRKXLzA
https://www.youtube.com/watch?v=_ObRQRKXLzA
https://www.youtube.com/watch?v=NXbGIilFidA&ab
_channel=TheProcessConsultant
5 mins.

Sub-Process & Workflow example (cont’d)
69

Process & Workflow example (cont’d)
70
BID GOVERNANCE ON A PAGE
LOW COMPLEXITY STANDARD BIDS TCV $25K to <$750K TCV $750K to <$1M TCV $1M to <$5M TCV $5M to <$20M TCV > $20M
Contract renewal with no or minor changes Sales Director Finance Mktg, Finance, MD Mktg, Finance, SVP/EVP Mktg, Finance, SVP/EVP, CEO
New Bid with 100% Standard elements Sales Director Finance All affected stakeholders, MD All affected stakeholders, SVP/EVP
All affected stakeholders,
SVP/EVP, CEO
ALL NON-STANDARD BIDS Potential TCV $0K to <$750K TCV $750K to <$1.0M TCV $1M to <$5M TCV $5M to <$20M TCV > $20M
Contract renewals with no or minor changes All affected stakeholders, SD All affected stakeholders, MD All affected stakeholders, MD All affected stakeholders, SVP/EVP
SVP/EVP, CEO
New Bid with Non-Standard elements All affected stakeholders, SD All affected stakeholders, MD All affected stakeholders, MD All affected stakeholders, SVP/EVP
SVP/EVP, CEO
Prior to contract signature
One page e-template PPT Opportunity Summary TAS Deal Plan EASE Financial Model Pre Contract Signing Template
Contract renewal with no changes or minor changes Yes No No No No
Contract renewal with major changes No Yes Yes Yes No
CPE/CPS Drop ship < $2.0M TCV Yes No No Yes No
CPE/CPS Drop ship > $2.0M TCV No Yes Yes Yes Yes (if >$5.0M TCV)
New Bid with 100% Standard elements No Yes Yes Yes Yes (if >$5.0M TCV)
New Bid with Non-Standard elements No Yes Yes Yes Yes (if >$5.0M TCV)
Post mortem (win or loss) review Yes No No No N/A
Net Margin (i.e. EASE Project contribution) < 10%
CoLD Capital Required
More than 50% of locations Off-Net
Involves US capabilities
Non-Standard elements:
▪ Wireless + wireline elements
▪ Custom design, pricing, contract, SLA terms CoLD Custom or Large Deal (Capital)
▪ Request for donation, contribution CPE/CPS Customer Premises Equipment/Solutions
▪ CoLD (Custom or Large Deal) Capital CRTC Canadian Radio & Television Commission
▪ ff-net component >50% (yes, the USA is off-net) EASE Economic Analysis Standard Evaluation
▪ Service development EVP Executive VP
▪ IT or billing system changes ITI Information Technology Infrastructure
▪ Significant TELUS resources MD Managing Director
▪ CRTC tariff/SPASI filings required PPT PowerPoint
▪ Involvement of a third party or Alliance SVP Senior VP
▪ Bid or performance bond or letter of credit TAS Target Account Selling (plan)
▪ External certifications required (e..SAS-70, PCI, etc.) SD Sales Director
▪ International components (yes, the USA counts) SPASI Special Assembly
TCV Total Contract Value
TNO TELUS Network Operations
Bid Governance Contacts
Special sign-offs required, regardless of bid value
Solutions Team VP
TNO/ITI Operations, Marketing, Project Management, Finance, SVP/EVP
Solutions Team VP
US Compliance approval (Tax, Regulatory, Business rules) via Solutions Team
Information Requirements for Bid Governance Reviews
Acronyms
Required Sign-offs
Bid Governance + Solutions Team engagement required
Bid Governance not required
Bid Governance + Solutions Team engagement required in all cases
Required Sign-offs

8.2 Manage Quality – outputs
INPUTS
TOOLS AND
TECHNIQUES
1. Data gathering
2. Data analysis
3. Decision making
5. Audits
6. Design for X
7. Problem solving
8. Quality
improvement methods
OUTPUTS
1. Quality reports
documents
3. Change requests
updates
updates
71

8.2 Outputs: Change Requests
…might encompass…
▪ Corrective action
▪ Preventive action
▪ Defect repair
72

8.2 Outputs: Proj. Mgmt. Plan Updates
Updates may be required to:
▪ Quality management plan
▪ Schedule management plan
▪ Cost management plan
73

Potential Quality Mgmt. Plan updates…
Quality standards, and possibly:
▪ Proprietary methodologies
▪ Proprietary processes
▪ Formal quality policy
74

8.2 outputs: More Project Document Updates
Examples:
▪ Issue log
▪ Lessons learned register
▪ Risk register
▪ Training plans
75

Some Conclusions?
Different meanings for different terms:
▪ Quality & Grade / Precision & Accuracy / Tolerance
Two Quality methods
▪ Continuous improvement
▪ Kaizen
Quality can be a significant component of brand
A separate Quality department:
▪ ...is or is not required to produce quality products?
Process & workflow analysis: powerful tools for Quality
76

PMPG5001
Assignment #4
Process Analysis
application
- SIPOC

Upcoming Assignments #4 & 5 - overview
Application of TQM tools:
▪ Asgn. #4 - SIPOC chart 5%
▪ Asgn. #5 - Process flowchart 5%
TOTAL = 10%
43

Assignment #4 – Process Analysis using SIPOC
Review the Sydney to Hobart case…:
◼ What would the SIPOC process flow look like for a
project to manufacture a winning yacht to enter
in the Sydney to Hobart race?
→ Develop point(s) for each SIPOC element
→ Develop a SIPOC chart
→ List some other applications you see for the
SIPOC tool in the real world
79

Assignment #4 – Process Analysis using SIPOC
DUE: Next week Blackboard
◼ No team minutes required
◼ Do include a cover sheet with your team number &
team member names
80

For next week…
1. Quiz #2
◼ Coverage: Post-midterm material only…and *
◼ 15 questions
◼ 15 minutes
◼ 5% of your mark
◼ *be sure to review the Como Tool & Die case study*
81

Also for next week…..
Topics to be Covered
(8.3) Control Quality
◼ Project QC processes
◼ Tools for collecting & understanding project data
◼ Tools for understanding & analyzing processes
◼ Quality improvement
To do:
◼ Read Chapters 6 to 8
◼ Quality tools assignment 4 (SIPOC)
82

Case Study Question: How do the operations and quality practices in
the case reflect the principles of TQM?
Remember What is Total Quality Management?1
 Customer-focused … customer is the king
 Total employee involvement…. All employees are working
toward one goal
 Process-centered…TQM focus on series of steps ( process)
 Integrated system it is the horizontal processes
interconnecting these functions that are the focus of TQM
 Strategic and systematic approach : organization’s vision,
mission, and goals.
 Continual improvement analytical and creative in finding
ways to become more competitive and more effective
 Communications: effective communications plays a large
part in maintaining

PMPG 5001
Management
Lecture 12 - Control Quality
W2022 – On-line

Course Outline – Winter, 2022
Semester
Week PART 2 – Project Quality Management
11. Manage Quality
12. Quiz #2 + Control Quality
14. FINAL EXAM –

Quiz #2 completed
◼ Quality Control
◼ Application of some basic tools
3

Agenda Today
◼ Assignment #4 was due at 9:00AM
◼ Some Review
◼ Overview Control Quality
◼ Building a checklist exercise & discussion
◼ Begin work on assignment #5
4

Some important review…
Try to connect between the right definition
1.The process of evaluating overall project performance
on a regular basis to provide confidence that the project
will satisfy the relevant quality standards
2.The process of Identifying which quality standards are
relevant to the project and determining how to satisfy
them
3.The process for determining customer requirements (
"wants") and translating them into attributes ( "hows")
5
QFD
QM
PQM/Q
P

PMPG 5001
Case Study
Como Tool & Die

Como Tool & Die Case Study
Review the case study. As a team, answer the question:
How will implementing Project Management
complement Como’s quality efforts?
…or will it??
15 mins.
7

1. Does Como have a choice in whether to accept PM
as a culture?
2. How much influence should a customer be able to
exert on how contractors manage projects?
3. Was Como correct in attacking cultural issues
first?
4. Does 36 months seem practical?
5. What chances of success do you give Como?
8

6. What dangers exist when your customers are more
knowledgeable than you are?
7 Is it possible for your customers’ knowledge of PM to influence
the way that your organization performs strategic planning for PM?
8 Should your customer (s) have input in the way your organization
performs strategic planning for PM?
9 Senior management should acknowledge movement away from
what?
10 Is Competing on quality alone sufficient in today's marketplace?
9

Something to think about:
“It is not necessary to change.
Survival is not necessary.”
- W. Edwards Deming
10

The Project Quality Lifecycle – Our Progress
Initiating
•Identify
Customer
(Stakeholders)
Planning
•Collect
Requirements
•Define Scope
•Create WBS
•Plan Quality
Executing,
Monitoring &
Controlling
•Manage
Quality
(PROCESS
focus)
•Control
Quality
(PRODUCT
focus)
Closing
•Control
Quality
11

8.0 Project Quality Management
12
8.1 Plan QM 8.2 Manage Quality 8.3 Control Quality
Determine a plan for
quality
Determine if the project is
complying with project &
organizational quality
policies & procedures
Measure project results
against standards
PLANNING focus…develop
& document a quality
management plan (i.e.
templates, standards,
policies, procedures, etc.)
PROCESS focus... Ensure
that the quality plans are
being executed
DELIVERABLE /PRODUCT
focus…inspect & verify the
project’s product & quality
indicators (are they
improving??)
Planning Phase Execution Phase
Audits to ensure
Execution phase

8.3 Control Quality
Quality Assurance vs. Quality Control
http://www.youtube.com/watch?v=iCgzbYi_Iw8
2:29 mins.
What does the video say about QA vs. QC?
13

8.3 Control Quality
Quality Assurance vs. Quality Control
 QA ensures that what is planned gets executed
→ …Ensured by regular audits
 QC measures specific project data
→ …are quality indictors improving?
→ …is corrective action required?
14

8.3 Control Quality
Quality Control in action – an example
How complex can concrete be?
https://www.youtube.com/watch?v=yzpWGrh9j6Y
3:50 mins.
15

8.3 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
Put simply...
Do the project outputs do what they were intended
to do?
16

8.3 Control Quality
And if the answer is no…???
 Take steps to eliminate the problems
 What steps would you take?
17

8.3 Control Quality
▪ Performed throughout the project to formally
demonstrate, with reliable data, that the sponsor’s
and/or customer's acceptance criteria have been
met.
▪ Think about:
→ Both project processes & product goals
→ Project deliverables and project mgmt. results
18

Prevention & Inspection
Things to think about…
▪ PREVENTION: Keeping errors out of the process
Vs.
▪ INSPECTION: Keeping errors out of the hands of
the customer
19

Attribute Sampling & Variables Sampling
20
▪ ATTRIBUTE sampling: The result either conforms or does not
conform for product characteristics that can be evaluated with
a DISCRETE response (e.g. pass/fail, good/bad, yes/no, 0/1)
→ LESS costly to collect data
▪ VARIABLES sampling: The result is rated on a continuous
scale that measures degree of conformity
→ for product characteristics that can be evaluated with a
CONTINUOUS response (e.g. temp. is 350 degrees, tire pressure is
37psi
→ MORE costly to collect data
Example: Dog’s food: Attribute Sampling could help to know if there should never be
any traces of poison found in sample tests while variable sampling can determine if
there is a certain amount of allowed gristle. Both result will be in % ( 92% , 68%,

PMPG 5001
8.3 Control Quality

8.3 Control Quality
INPUTS
2. Project Metrics
4. Approved change
requests
5. Deliverables
6. Work performance
data
7. EEF’s
8. OPA’s
TOOLS AND
TECHNIQUES
1. Seven Basic quality
tools
2. Statical Sampling
3. Inspection
4. Approved change
request review
OUTPUTS
1. Quality control
measurements
2. Validated changes
3. Verified deliverables
4. Work performance
information
5. Change requests
updates
updates
8. OPA’s update
22

PMPG 5001
8.3 Control Quality Inputs

Input#1 : Project Management plan
Project Management plan :
➢ Scope Baseline
➢ Stakeholder register
➢ Requirements Management plan ,
➢ Risk Management plan
➢ Quality Management plan
24

Input#2 : Quality Metrics
➢ Quality metric describes a project or
product attribute and how it will be
measured.
Examples
➢ Function points,
➢ Mean time between failure (MTBF)
➢ Mean time to repair (MTTR)
25

Input#3 : Project Document
• Organizational standards
• Project requirements
• Scope containment
• Quality of deliverables
• Duration
• Cost
• Risks
• Effort
• Productivity
• Stakeholder involvement
• Project team performance
26

Input#4 : Approved change request
Includes for what were approved
• Corrective action
• Preventive action
• Defect repair
27

Input#5 : Deliverables
Deliverables
•Products, services, processes, or
plans created as a result of doing
a project
Interim
Deliverable
•A final deliverable for the
customers of the project.
Final
Deliverable
•An interim deliverable produced
during the process of creating the
final deliverable.
28

Input#6 : Work performance Data
• The raw observations and measurements
identified during activities performed to carry
out the project work.
• Examples
• reported percent of work physically completed,
• quality and technical performance measure
• start and finish dates of scheduled activities
• number of change requests,
• number of defects,
• actual costs,
• actual duration,
29

Inputs#7 : Enterprise environmental factors
EEF’s Enterprise environmental factors,
e.g.
→ Government regulations
→ Rules, standards, guidelines
→ Cultural perceptions
→ Working/operating conditions
→ Organizational structure
→ Market conditions
30

Input#8 : OPA organization’s process assets
…steps for analyzing the project and product
development processes. Consider: Process
boundaries, configuration, metrics (and control limits),
Targets and improvement activities
Examples
▪ Lesson learned .
▪ Standards and Policies HR Policies, health and safety,
▪ Templates (WBS, Risk register, contract templates)
▪ Procedures (Process audits, KPIs checklists => see in details
31

Checklists…a useful tool
 A structured tool
 Usually industry and/or activity specific
 Used to:
→ Establish things to do
→ Verify that a set of required steps have been performed
→ Reduce failure by compensating for potential limits of
human memory and attention1
→ Helps to ensure consistency and completeness in carrying
out a task1
32

Checklists
Question:
Having to use a checklist is a weakness
34
What do you
think?

Checklists…
Making a Checklist and checking it
https://www.youtube.com/watch?v=CGwOMM896Po
6:55 mins.
Dr. Atul Gawande
35

Checklists – some things to think about
Results of using checklists in 8 major hospitals:
 Reduced major complications by 33%
 Reduced deaths by 47%
 Reduced surgical time
 Reduced things falling thru the cracks i.e. ….
→ Reduce failure by compensating for potential limits of human
memory and attention1
→ helps to ensure consistency and completeness in carrying out a
task1
36

Checklists
More things to think about:
 “The hardest thing is making sure implementation occurs…”
 You need to learn how to make them
 You need to focus on the ‘killer items’ (things you cannot afford
to miss)
 Dumbing things down? …or being systematic?
37

Checklists
Challenges…
 Culture shift…the biggest challenge
→ …you need humility – i.e. to use a checklist you must be humble
enough to know that YOU might fail
 A belief in discipline
 Teamwork is required
 Leadership is required
38

Checklists – more things to think about
More benefits:
 Better morale
 Improved staff retention
NB: A checklist is not a replacement for common sense…
(e.g. an emergency situation)
39

Checklist Exercise – a TQM tool you can use…
Analyze the process your team used to develop
assignments this semester:
Using the process your team followed…
▪ Identify & discuss all ‘must do’ items required for a complete
assignment submission - what did you miss?
▪ Develop an assignment checklist to use on future assignments
→ All the ‘must do’ items
▪ Be prepared to present your work!
7 mins.
43

PMPG 5001
8.3 Control Quality Tools
and Techniques

Tools #1 Seven basic tool of quality
The Seven Basic quality tools: Ishikawa
1. Cause & effect diagram
2. Flowcharts
3. Check sheets
4. Pareto Diagrams
5. Histograms
6. Control charts
7. Scatter Diagram
42

1. Cause & Effect Diagram
A.K.A. Fishbone or Ishikawa diagram
 Graphic display of problem causes
 Focuses team on causes (not symptoms or history)
 A means to get to root causes
43

2. Flowcharts
 Flowchart: a picture of the separate steps of a process in
sequential order
 Elements that may be included:
→ Sequence of actions, materials or services entering or leaving the
process (inputs and outputs)
→ Decisions that must be made, people who become involved, time
involved at each step
→ … and/or process measurements
44

3. Check sheet
Check sheet:
 a.k.a tally sheet
 structured tool used to collect data and record it in
an organized way
45

4. Pareto Diagram
Pareto Diagram:
 structured tool used to identify the greatest
opportunity for improvement among a number of
possibilities
 Use: Identifies the most influential causes
 80/20 rule (80% of defects are caused by 20%
of the sources for error)
46

5. Histograms
Histogram:
 A special form of bar chart used to describe the
central tendency, dispersion & shape of a
statistical distribution
 NB: does not consider the influence of time on
the variation within the distribution
47

6. Control Charts
Control Chart:
 A graph used to study how a process changes over time
 Uses sample data to generalize about a population
 Used for:
→ …monitoring and evaluation of process variation and its sources
◼ …the ongoing control of a process
Assignable cause/special cause variation:
◼ Data points that require investigation to determine the cause of
the variation
◼ …suggests that something different was acting on the process
48

Control charts
 Data are plotted in time order
 …Always has:
→ a central line for the average
→ an upper line for the upper control limit
→ a lower line for the lower control limit
→ lines are determined from historical data
◼ Rule of 7: Seven non-random data points on one side of the mean
◼ …suggests that special cause variation is affecting the process, even though
data points are within control limits
49

Tolerances & Control Limits
Tolerance limits apply to individual manufactured components,
control limits are used to assess the manufacturing process.
▪ TOLERANCES: Specified range of acceptable results
▪ CONTROL LIMITS: Identify the boundaries of common
variation in a statistically stable process or process
performance
→ Thresholds which can indicate whether the process is out of control
50

7. Scatter Diagrams
Scatter diagram:
 a.k.a correlation chart
 A plot of ordered pairs (generally x, y)
 Use: explain a change in the dependent variable (Y),
in relationship to a change in the corresponding
dependent variable (X)
 Correlations may be positive, negative or non-
existent
51

Tools # 2-4
And also…
 Statistical sampling
 Inspection
 Approved Change Request review
52

Tool#2 : Statistical sampling
Samples are selected and tested as defined in
the quality management plan
 Used when you cannot test to 100%
 Inspection and test standards have to be set
 Must be able to determine what is conforming
and what is non-conforming
 Pre-determined sample size
 If number of defects in the sample exceed the
allowable limit, the entire batch is rejected
53

Tool#3 : Inspection
Examination of the product to determine if it
conforms to documented standards.
Inspections may be called reviews, peer reviews,
audits, or walkthroughs.
The results of a single activity can be inspected, or
the final product of the project can be inspected.
54

Tool#4 : Approved Change Requests
.
Review All approved change requests should be
reviewed to verify that they were implemented as
approved.
55

PMPG 5001
Additional Quality Management Tools

Pillar Diagram
Purpose
 Analyze a situation where there may be multiple
problems related to multiple causes
Unique Feature
 Shows the relationships among a set of causes and
results
57

Pillar Diagram
Steps:
1. Build the results pillar
2. Build the causes pillar
3. Connect causes to results using arrows
4. Total the out arrows for each cause
5. Causes with the most arrows=root causes
58

Affinity Diagram
Organizing ideas:
 A tool to organize a large number of ideas into patterns
 simple diagram to break down complex information, allowing
everyone to understand the different elements of her/his key
concept.
60

Affinity Diagram
Uses:
 Gathering large amounts of language data
 Organizing ideas, issues & opinions when issues are large or complex
 Ensuring participation
Purpose:
 Create order from chaos
 Find patterns in mountains of data
 Encourage breakthrough thinking
Unique Feature:
 Affinities determined by intuition, not logic
61

Affinity Diagram
Steps:
1. Ensure that you have enough, but not too many, people to build the
Affinity Diagram
2. Prepare a wall space in advance
3. Make sure that you have the right materials (and enough of them!)
→ Large post-its, appropriate felt tipped pens
4. Develop & padboard the question
5. Conduct individual, silent brainstorming on post-its
6. Stick post-its on the wall, read others’ post-its and create additional
ones (silently)
7. Affinitize the post-its (silently)
8. Discuss the patterns & create header cards
→ ...a verbal, facilitated activity
62

Affinity Diagram - Example
Document the Affinity Diagram, distribute it to all team-members, and
use the data to move forward on the issue
63

Prioritization Matrices
Purpose:
 Used to rank and prioritize options/choices/actions
Unique Feature:
 Options/choices/actions, etc. are determined by applying
each against pre-defined criteria
64

Prioritization Matrices
Steps:
1. Agree on the ultimate objective
2. Determine options that could achieve the objective
→ …a limited number of options (<= 5)
3. Create the list of potential criteria to be applied to the
options generated
→ (via Brainstorming or an Affinity Diagram)
4. Through open discussion, reduce the list of criteria to a
“reasonable number” that is acceptable to the team
→ Generally, <10
65

Recall this prioritization matrix example?
66
Volere Prioritization Spreadsheet
Copyright c The Atlantic Systems Guild 2002
Requirement/Product Use
Case/Feature
Number
Factor - score out
of 10
%Weight
applied
Factor - score out
of 10
%Weight
applied
Factor - score out of 10
%Weight
applied
Factor - score out of
10
%Weight
applied
Value to
Customer
40
Value to
Business
20 Minimize Implementation Cost 10
Ease of
Implementation
30
Priority
Rating
Requirement 1
1 2 0.8 7 1.4 3 0.3 8 2.4 4.9
Requirement 2
2 8 3.2 8 1.6 5 0.5 7 2.1 7.4
Requirement 3
3 7 2.8 3 0.6 7 0.7 4 1.2 5.3
Requirement 4
4 6 2.4 8 1.6 3 0.3 5 1.5 5.8
Requirement 5
5 5 2 5 1 1 0.1 3 0.9 4
Requirement 6
6 9 4 6 1.2 6 0.6 5 1.5 6.9
Requirement 7
7 4 2 3 0.6 6 0.6 7 2.1 4.9
Requirement X
X
2 X 0.4 = 0.8 0.8 + 1.4 + 0.3 + 2.4 = 4.9

PMPG 5001
8.3 Control Quality Outputs

Output#1 : Quality Control Measurement
…Quality control measurements are the
documented results of Control Quality
activities.
They should be captured in the format
that was specified in the quality
management plan.
68

Output#2 : Validated Changes
Includes Any changed or repaired items and will
be either accepted or rejected before notification of
the decision is provided.
Rejected items may require rework
69

Output#3 : VERIFIED DELIVERABLES
• They verified deliverables are the results
of performing the Control Quality process
• f there were any change requests or
improvements related to the deliverables,
they may be changed, inspected, and
reverified.
70

Output#4 : WORK PERFORMANCE INFORMATION
It should include information on:
- project requirements fulfillment
- Causes for rejections
- Rework required
- Recommendations for corrective actions
- Lists of verified deliverables
- Status of the quality metrics,
- The need for process adjustments.
71

Output#5 : Change Requests
The project manager should submit a
change request => If changes occur during
the Control Quality process that may
impact any of the components of the project
management plan or project documents =>
Change requests are processed for review
and disposition through the Perform
Integrated Change Control process
72

Outputs #6: Proj. Mgmt. Plan Updates
Updates may be required to:
▪ Quality management plan
▪ Schedule management plan
▪ Cost management plan
73

Output#7: Project Document Updates
Examples:
▪ Issue log
▪ Lessons learned register
▪ Risk register
▪ Training plans
74

Output#8: Organizational Process Assets Updates
Includes
• Completed checklists.
• Lessons learned documentation.
• The causes of variances,
• The reasoning behind the corrective
action chosen
75

Quality Management Plan *Sample
August 20
Introduction
The main goal of this project is to develop a new training program that provides just-in-time training to
employees on key topics, including supplier management, negotiating skills, project management, and
software applications.
Quality Standards
The standards that apply to this project are summarized as follows:
1. Survey standards: See Attachment 1 for corporate standards for developing and administering
surveys to employees. Quantitative and qualitative information will be collected. Quantitative data will
use a 5-point Likert scale as much as possible. A corporate expert on surveys will review the survey
before it is administered.
2. Supplier selection standards: See Attachment 2 for corporate standards regarding supplier selection.
Past performance and developing partnerships will be key issues for this project.
3. Training standards: See Attachment 3 for corporate standards regarding training. The training
provided as part of this project will be available in several formats, including instructor-led, CD/ROM,
and web-based. Employees will have access to CD/ROM and web-based training at any time to
meet individual and business needs on a just-in-time manner.
76

Quality Management Plan – Sample (cont’d)
Metrics
Metrics measure quality performance. Several metrics apply to this project, and more may be developed as the
project progresses. The project team will use a few key metrics as follows:
1. Survey response rate: For the survey to be successful, a response rate of at least 30% must be achieved.
2. Course evaluations: All course participants must complete a course evaluation in order for their training to
be tracked in our corporate professional development system. In addition to evaluations on more detailed
topics, there will be an overall course rating. The average course rating should be at 3.0 or better on a 5.0
scale.
Problem Reporting and Corrective Action Processes
Project plans will include clear roles and responsibilities for all stakeholders. The person responsible for an
individual task should report problems to appropriate managers (see the project organizational chart) and work
with them to determine and implement corrective actions. Major problems should be brought to the attention of
the project manager, who should elevate problems that might affect project success, including meeting scope,
time, cost, and quality goals, to the project steering committee and then the project sponsor. It is crucial to
address problems as early as possible and develop several alternative solutions.
Supplier Quality and Control
The project manager will closely monitor work performed by suppliers, with assistance from our supplier
management department. All contracts must clearly state quality standards, metrics, etc.
77

PMPG 5001
7 TQM tools video

The 7 TQM tools
Video summary:
Learn what the 7 Quality Control Tools are in 8
minutes…:
http://www.youtube.com/watch?v=LdhC4ziAhgY
8:12 mins.
79

Some Conclusions…
▪ A PM culture & Quality are complementary
→ Can the PM drive quality?
▪ Quality Assurance is about processes & standards
▪ Quality Control is about results
▪ Many tools can assist in Managing (and Controlling)
Quality in projects
80

PMPG 5001
Assignment #5
Process Improvement

Assignment #5 – Process Improvement
Sydney to Hobart…one more time:
◼ Discuss the process your team followed for completing assignment #3
◼ Map the process steps you followed, decision points, & timing for
assembling your submission
→ …see the text, P. 119-120 for basic flowchart symbols
◼ What was the cycle time to complete the assignment?
◼ Knowing what you know now, suggest two process improvements
◼ Re-map your assignment process, with the two process improvements and
revised cycle time included
→ Highlight the improvements on your revised flowchart
62

Assignment #5
DUE: Next week
◼ Blackboard
◼ No team minutes required
◼ Do include a cover sheet with your team number &
team member names
83

Team Exercise: Exam questions…
As a team:
◼ Consider the material we covered today
◼ Draft One potential exam question
◼ Forward via Course Message
84

Next Lecture…
1. Case studies
2. Course Review!
85

Also For Next Lecture…..
To do:
◼ Read Chapters 9 & 10 in the text
◼ Download & read PPC (Percent Plan Complete) case
study from Blackboard Learning Materials
86

PMPG 5001
Management
Lecture 13 - PM Quality Toolkit
W2022 – On-line

◼ PPC Case Study
◼ Six Sigma basics
◼ More tools and applications
◼ Control chart basics
3

Agenda Today…
◼ Two case studies
◼ 3:20 Go to the 'Assessments' section quiz from 3:25 to 3:40
◼ 3:50 come back to 'Collaborate' for the lecture
◼ Overview Quality Tools, Six Sigma
◼ Case Studies
◼ Building a Control chart
◼ Review
4

5
Some review…
1. What are the seven basic quality tools?
2. What would be the technique enhances brainstorming to
rank the most useful ideas?
3. Which tool can relate multiple problems to multiple
causes?
4. The goal of prevention is to keep errors out of what?
5. Which process ensures that what gets planned gets
executed through regular audits?
5

PMPG 5001
Where’s the Paperwork? – A case study in
Process Improvement

Where’s the paperwork? - Case Study
See Learning Materials
1. What were the challenges Oregon State University was facing?
2. Which group focused on trying to reduce the amount of time?
3. What was the average cycle time?
4. Why is the process time related to the Quality ?
7 mins.
7

PMPG 5001
PPC Case Study

PPC (Percent Plan Complete) Case Study
See Learning Material and find the answer in 10 mins
 What happens if planning is not done well?
 Last Planner System promotes what kind of planning?…
 To ensures what gets planned gets executed through regular
audits? ( QC, QM or QA)
 the higher the PPC Percent Plan Complete the more reliable is
what?
 What are the Key Benefits?
9

 For the authors, a ‘quality assignment’ is
Defined : the work should be specific enough to
understand the requirement of the assignment
Sequenced : sequenced in the correct order
Sound :the materials design are identified
Sized : means that the assignments should be correctly
sized based on the capacity of the crew
Key Benefit: Empowers front line planners (i.e. the
‘last’ planners) to make execution related decisions
10

 PPC (Percent Plan complete)
 The PPC as shown for day 2 hides the extra work required to
complete day 1 tasks!
 PPC measures the performance of the process without hiding
rework due to incomplete tasks from previous days
 PPIC (Percent Plan Incomplete)
 The ratio of total tasks incomplete to total tasks planned to be
completed in a given time period
11

PMPG 5001
Project Quality Management
Six Sigma

What is Six Sigma?
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 A robust methodology for continuously improving products
and processes
 Systematic (and strategic) application of tools on targeted
projects at the appropriate time, to bring about significant
and lasting change in an organization
 Links people, training & projects2
 Developed by Motorola to systematically improve processes
by eliminating defects
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What is Six Sigma?
 Measure of Process Capability, used by quality professionals. 1
 Sigma (lower-case Greek letter) represents standard deviation
(a measure of variation) of a population
 The term "six sigma process" comes from the notion that if
one has six standard deviations between the mean of a
process and the nearest specification limit, there will be
practically no items that fail to meet the specifications.
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What is Six Sigma?
 Six sigma = highest possible sigma rating
→ Product or service meets all customer time and quality
criteria (delivery “on-time and at-quality”) 99.9966% of
the time
 Or, put another way…. 3.4 defects per million units of
output
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Six Sigma
 Use tools and methodologies we have seen – e.g.
→ Total Quality Management
→ Statistical process control
→ Control charts
 Concentrates on preventing defects
→ Sound familiar to the PMBOK approach?
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Six Sigma
Sigma Rating Defect Rate On-time At-
quality Rate
0 93.32% 6.68%
1 69.15% 30.85%
2 30.85% 69.15%
3 6.68% 93.32%
4 .62% 99.38%
5 .023% 99.977%
6 .00034% 99.99966%
Process Variation….
3.4 defects
per MILLION
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Six Sigma is…
 ….all about understanding the customer
 …based on facts & data (especially financials &
savings)
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PMBOK vs.
Both methodologies concentrate on preventing
defects (vs. detecting them after they occur)
PMBOK Goal Six Sigma Goal
Reduce failures Reduce failures
Prevent defects Prevent defects
Manage risk Manage risk
Control schedule & cost Control schedule & cost
Meet scope Meet scope
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PMBOK vs.
Six Sigma and PMBOK are:
 Complementary methodologies
 Mutually supportive methodologies
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What is Six Sigma?
Six Sigma….:
 Intended for & works best in high-volume production
environments
 Has a solid control phase (DMAIC) that makes
→ Specific measurements
→ Identifies specific problems
→ Provides specific, measurable solutions
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Six Sigma Results
“Companies of all types and sizes are in the midst of a
quality revolution.”
◼ GE: incorporated 6 Sigma into their corporate strategy in 1995
→ Saved $12B over five years
→ Added $1 to its earnings per share
→ annual benefits > $2.5B across the organization
◼ Honeywell (Allied Signal):
→ recorded more than $800M in savings
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Six Sigma Results
Motorola….
◼ Reduced manufacturing costs by $1.4B from 1987-1994”
→ Six Sigma reportedly saved Motorola $15B over an 11
year period
Related benefits…
◼ 500% increase in sales
◼ 20% annual increase in profits
“
3.4 defects
per million
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Six Sigma
 Align improvement efforts with customer requirements
 Translate qualitative customer input into quantitative (i.e.
measurable) business specifications
Lean Six Sigma White Belt
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1&list=PL3C66F951D54BF7A8&feature=results_video
7:49 mins.
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Six Sigma Focuses on…
 Focuses on The customer rather than the process
→ Recall the voices….
 Focuses on Data-and fact-driven management, with an
emphasis on measurement of quantitative data
 Focuses on Process as the key vehicle of success
 Focuses on Proactive management
 Focuses on Root causes
 Focuses on Creating sustained changes
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Six Sigma Control
DMAIC phases:
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Six Sigma Control
DMAIC phases:
 Define: Set the context & objective of the effort
 Measure: Obtain baseline performance and process
capability information
 Analyze: Use data & tools to understand cause & effect
relationships
 Improve: Develop modifications for validated process
improvements, generate & test possible solutions
 Control: Establish plans & procedures to ensure sustained
improvements
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Six Sigma Methodology - Define
1. Ask who, what, and why questions about the project
2. Write the project charter (..business case, problem/
opportunity statement, goal statement, constraints/
assumptions, scope, players/rules, preliminary plan)
3. Identify the customer and translate the voice of the
customer into requirements to measure against
4. Create a high-level process diagram
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Six Sigma Methodology - Measure
1. Gather data on outputs/outcomes, processes,
and inputs
2. Identify facts and data that offer clues to quality
issues
3. Create an early sigma measure of the current
process
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Six Sigma Methodology - Analyze
1. Analyze the data, using statistics and tools as
needed
2. Find the root cause of quality issues
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Six Sigma Methodology - Improve
 Solve the problem and act on it
 May revise the Charter to modify problem/goal
statement to reflect discoveries
 May confirm with the Champion
 May modify scope of the project
 Implement, manage, and test solutions
→ Usually, solutions are piloted and tested before full
implementation
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Six Sigma Methodology - Control
 Develop & implement a monitoring process to track
changes and results
 Create a response plan in case solutions do not work as
intended
 Help management focus on appropriate metrics to get
info on outcomes and processes
 Sell the project throughout the organization
 Hand-off responsibilities to day-to-day operations staff
 Build management support for long-term goals
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Six Sigma - Common Roles & Commitment
 Green Belt – Leads teams, works on projects
→ ~3 wks of training
 Yellow Belt – Team member & team managers
→ ~ 3 days of training
 White Belt – Overview for everyone
→ ~3 hrs of training
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Six Sigma - Common Roles & Commitment
 Champion (Sponsor) - assigns resources & projects
→ ~2 days of training
 Master Black Belt–leadership & guidance
→ ~5 wks. of training
→ Should be generating ~ $1M in benefits/year
→ ~ 4 projects @ $250K
 Black Belt– program leaders
→ ~4 mos. of training
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Six Sigma
Master
Black
Belt
Black Belts
Green Belts
Team Members
Champions
Mentors, trains, and coaches Black Belts
and others in the organization.
Leads teams implementing six sigma
methodology on projects.
Delivers successful, focused
projects using six sigma
methodology and tools.
Participates on and supports
the project teams, typically in
the context of his or her
existing responsibilities.
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Six Sigma Methodology - Process Steps
1. Select project(s): Ensure they meet the “Two M’s”:
Meaningful and Manageable
→ Articulate the business necessity of the project.
2. Form the Six Sigma team: choose a Black Belt or
Green Belt leader and 5-6 members.
3. Develop the charter: …usually drafted by the
Champion and refined by the team;
→ …a dynamic document that evolves throughout the project
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Six Sigma Methodology - Process Steps
4. Train the team: (DMAIC process & tools, 1-4 weeks)
→ Typically, 1 full week of training
→ Second and subsequent training sessions after 2-5
weeks of work on the project.
5. Do the project and implement solution(s).
→ Execute the plan!
6. Hand off solution(s) to appropriate stakeholders
→ Formal ceremony with the Six Sigma team, process
owner(s), and stakeholders.
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Six Sigma - IDEA Generation tools
 Brainstorming
 Affinity diagrams
 SIPOC diagrams
 High-level process maps
 Flowcharts
 Fishbone diagrams
….. sound familiar?
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Six Sigma - DATA Gathering tools
 Statistical sampling
 Operational definitions
 VOC (Voice Of the Customer) methods
 Checklists
 Spreadsheets
 MSA (Measurement Systems Analysis)
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Six Sigma - ANALYSIS tools
 Process-flow analysis
 Charts and graphs
 Tests of statistical significance: e.g. analysis of variance
 Correlation/regression
 Design of experiments
 Potential problem analysis
 Failure mode and effects analysis
 Stakeholder analysis
 Force field diagrams
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Six Sigma – IMPLEMENTATION tools
 Process documentation
 Balanced scorecards
 Process dashboards
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PMPG 5001
Useful tools…..for Six Sigma and beyond
A review…

Tool to determine root causes of issues/problems
Fish ‘bones’: major cause categories
Fish ‘head’: the effect
TQM Tool 1 - Cause & Effect Diagram
CAUSES
Potential Cause categories:
→ Policies
→ Procedures
→ People
→ Environment
→ Measurement
EFFECT
The
problem
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TQM Tool 2 - Flowcharts
 Flowchart: a picture of the separate steps of a process in
sequential order
 Elements that may be included:
→ Sequence of actions, materials or services entering or leaving
the process (inputs and outputs)
→ Decisions that must be made, people who become involved,
time involved at each step
→ … and/or process measurements
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TQM Tool 2 - Flowcharts (cont’d)
…are also very useful when you need to:
→ develop understanding of how a process is done
→ study a process for improvement
→ communicate to others how a process is done
→ improve communication between people involved with
the same process
→ document a process.
→ plan a project
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SIPOC – a flowchart tool
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 Process improvement tool
 Summarizes inputs and outputs of a process
 Suppliers, Inputs, Outputs, Customers
 Origination: TQM programs in the 1980’s
 Used today in Six Sigma & Lean Manufacturing
 Sometimes utilized as COPIS (i.e. starting with the
customer and working upstream to the supplier.)1

S I P O C
S
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s
SIPOC – a very useful generic flowchart tool
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TQM Tool 3 - Check sheet
Check sheet:
 a.k.a tally sheet
 a structured tool used to collect data and record
it in an organized way
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TQM Tool 4 - Pareto Diagrams
Pareto Diagram:
 structured tool used to identify the greatest
opportunity for improvement among a number of
possibilities
 Use: Identifies the most influential causes
 80/20 rule (80% of defects are caused by 20%
of the sources for error)
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TQM Tool 4 - Pareto diagram - example
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TQM Tool 5 - Histograms
Histogram:
 Special form of bar chart used to describe
central tendency, dispersion & shape of a
statistical distribution
 NB: does not consider the influence of time on
the variation within the distribution
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TQM Tool 5 - Histogram - example
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TQM Tool 6 - Control charts
Control chart:
 A graph used to study how a process changes over time
 Data are plotted in time order
 …Always has:
→ a central line for the average
→ an upper line for the upper control limit
→ a lower line for the lower control limit
→ lines are determined from historical data
Remember: Rule of 7 is considered to be a non-random process
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TQM Tool 6 - Control Chart (cont’d)
 Comparing current data to these lines, allows you to
draw conclusions about whether the process
variation is consistent (in control)
→ Acceptable variation
or
 The process variation is unpredictable (out of control)
& affected by special causes of variation
→ Unacceptable variation
A statistical control chart represents Process voice
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TQM Tool 7 - Scatter Diagrams
Scatter diagram:
 a.k.a correlation chart
 A plot of ordered pairs (generally x, y)
 Use: explain a change in the dependent variable
(Y), in relationship to a change in the
corresponding independent variable (X)
 Correlations may be positive, negative or non-
existent
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Scatter Diagram – Example
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0
10
20
30
40
50
60
70
80
90
0 100 200 300 400 500 600 700 800 900 1000
$Thousands
Number
of
Days
Contract Value vs. Processing Time

Scatter Diagram
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Interpretation:
 The closer the grouping (i.e. the more the data
approximate a line), the stronger the relationship
 The more the data are randomly scattered, the
weaker the relationship

Force Field Analysis
Force Field analysis:
 ANY change will have forces supporting/acting
for that change and against it. Ask yourself…
→ Whose interests are you affecting?
→ WIIFM (for those affected)?
 Diagram the forces acting for and against a
proposed change and weight those forces
(subjectively)
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Nominal Group Technique (NGT)
 Technique that enhances brainstorming with a
voting process used to rank the most useful
number of ideas / choices for further
brainstorming or for prioritization
 …Also allows a team to come to consensus on
the relative importance of issues, problems, etc.
NGT can also be used to make a decision
as to whether a proposal is to be accepted by the team
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Nominal Group Technique (NGT)
…a.k.a. ranking for consensus
 NGT has ground rules that need to be discussed in advance
→ e.g. who can vote, how many votes per person, etc.
 Each person assigns point values to the items (highest value
to the most important item, etc.)
 Tally the votes
 Discuss the results as a group; do they make sense?
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Nominal Group Technique (cont’d)
Steps:
1. Generate a list of issues, problems or solutions to prioritize
2. Record the statements on a flip chart, e.g. Answers to
‘why do students submit assignments late’ e.g....
A. Lack of understanding of requirements
B. Mis-communication
C. Over work
D. Not enough lead time
3. Each team member records the corresponding letters on a
sheet of paper and rank orders the statements
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Nominal Group Technique (cont’d) example
4 is most important, 1 is least important
A,B, and C are three choices/ideas/problems they to be
Combined the rankings of all team members
Jill Jack June John TOTAL
A 4 3 1 2 10
B 1 4 2 4 11
C 3 2 3 1 9
#1 priority
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Some Conclusions…
▪ PPC /PPIC – a different take on metrics
▪ Six Sigma:
→ a powerful, complex methodology & measure of process
capability
→ understanding variation and improving processes & quality
▪ TQM tools:
→The seven basis TQM tools
→ + others are highly useful in both Six Sigma and non-Sigma
project contexts
▪ Apply the right tools, methodology and level of
process to the project or task at hand!
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Final Exam
Final exam:
◼ Date: Next Lecture!
◼ Time: Regular lecture start time
◼ Duration: 60 minutes
◼ Location: ‘Assessments’ section in Blackboard
64

Final Exam...
Final exam
◼ 60 mins.
◼ 55 Multiple choice questions
→ Each question is worth 0.55 marks
→ Counts for 30% of your final mark
◼ Focus: lectures 8 thru 13
→ ~ 5% pre-midterm & ~95% post-midterm material
→ Lecture material
→ Case studies
→ Textbook
65

Final Exam reminders…..
◼ Zoom or similar will be used for Virtual Proctoring
◼ Link: TBD
◼ Clear your browser cache, Sign on ~ 10 minutes before, turn ON
your cameras & test your technology
◼ You will have 60 minutes to complete all 55 questions
◼ Once you begin, you cannot 'start over' or 'try again', so
complete the exam in one sitting
◼ Save your answer before moving to the next question
◼ Good luck!
66

UNDERSTANDING PERCENT PLAN COMPLETE DATA USING STATISTICAL
QUALITY CONTROL CHARTS
Thanveer M Mohammed
Jay Dee Contractors, Inc., 38881 Schoolcraft Rd
Livonia, MI- 48150
Tariq Abdelhamid
Construction Management Program, School of Planning, Design and Construction,
Michigan State University
207 Farrall Hall, East Lansing, MI 48824-1323
ABSTRACT
The Last Planner System (LPS), provides a framework to plan and control daily
production assignments in a construction project. This system uses a metric termed
Percent Plan Complete (PPC) to measure the reliability of production planning and that of
workflow. Once PPCs for a production operation is obtained, an average value of the
metric over a period of time will reflect planning efficiency for that particular operation.
PPC has been used as a metric on many projects and has proven to be effective. This paper
explores the use of statistical quality control charts as a tool to identify the type of
managerial interventions needed in the production planning process. Data was collected
from a construction project and a set of analysis tools was used to analyze the data and find
areas of improvement. The paper will report on the adaptation of control charts to the
PPC data as well as case-study results.
Keywords: Lean Construction, Percent Plan Complete, Control Charts, Last Planner
System
INTRODUCTION
Project planning basically means establishing the course of project execution. Project
planning involves outlining a course of action, deciding on what is to be done, who will do
it, how it will be done, when will it be done, and how much it will cost [1]. Planning being
the first step of the project management functions, it decides the success of all the

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following functions. If planning is not done meticulously, execution and control becomes
difficult. The success of a project is determined on how well it is executed in comparison
with the plan. A good and reliable plan will exude confidence in the project team.
Present planning methods used in the construction industry focus primarily on project
level planning at the expense of production level planning. Even the best developed plans
usually change over the course of a project due to unexpected events and uncertainty.
Changes are typically caused by production-related issues.
According to Koskela [2], a production planning and control system should follow
three principles: “The first principle is that the assignments should be sound regarding the
prerequisites… The second principle is that the realization of assignments is measured and
monitored… The third principle dictates that causes for non-realization is investigated and
those causes are removed. Thus, in fact, continuous, in-process improvement is realized.”
The Last Planner System (LPS®
) proposed in [3] is a system of production planning
and control in which any assignment has to be well defined, sequenced in such a way that it
is constructible, should be sound, and should be “sized to the productive capability of the
crew”. A reading in the Lean Construction research literature indicates that the Last
Planner System is a lean-based tool that has been successfully applied to control workflow
unreliability on simple and complex construction projects [3, 4, 5, 6, and 7]. The LPS®
promotes production control as opposed to the dominant project control paradigm under
conventional construction management. The system empowers front-line planners, the Last
Planners, to schedule day-to-day production assignments according to the prevailing
conditions on the site.
Application of the LPS typically results in unearthing numerous problems with the
production planning process and procedures that a contractor utilizes. With limited time
and budgets, the construction manager needs a method to prioritize the process
improvement initiatives to undertake. This paper explores the use of statistical quality
control charts as a tool to identify the type of managerial interventions needed in the
production planning process. Data was collected from a construction project and a set of
analysis tools was used to analyze the data and find areas of improvement. The paper will
report on the adaptation of control charts to the PPC data as well as case-study results.
Last Planner System
Ballard [3] presents the LPS as a system of production planning and control which
can increase workflow reliability. The Last Planner System® (LPS) states that the last
person who performs the work is the one responsible for making execution-related
decisions. The LPS provides a framework to plan and control daily production assignments
on a construction project [3]. The last planner could be a superintendent, site engineer,
foreman, or a crew member. Application of the LPS to projects has shown reduction of
duration and costs while improving quality and safety [3, 4, 5, 6, and 7].

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Fig. 1 (Modified: Kaufman Consulting Group, LLC) illustrates the additional layers
of planning involved in the Last Planner technique compared to the traditional project
planning technique that typically uses critical path methods scheduling.
As depicted in Fig. 1, master schedules involve the development of logic and
sequence that helps identify the major commitments throughout the project. The phase
schedule involves greater detail of planning where the project components are tested for
logic and the work is divided into phases to identify constraints or related work. This
system of division into master and phase schedules lacks a tool of detailed work
structuring which enables weekly work planning.
In the Last Planner System, as shown in Fig. 1, the ‘Lookahead’ process takes its
input from traditional project planning techniques, which result in a master schedule with
project milestones and phase schedules. Usually, the lookahead involves consideration of
potential assignments for the upcoming 3-6 weeks based on the project characteristics. The
activities are exploded from the master schedule or phase schedule into a level of detail that
is appropriate for an assignment on a weekly work plan. This typically yields multiple
assignments for each activity. As each assignment appears in the lookahead window (a 3- 6
week time period), it is subjected to five criteria to make sure it is ready to be executed [4].
Fig. 1Construction planning vs. last planner
Fig. 1 Construction Planning vs. last planner

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Ballard [3] suggests that assignments are quality assignments when they satisfy the
following criteria: definition (the work should be specific enough to understand the
requirement and completeness of the assignment); sequencing (the assignment should be
sequenced in the correct constructability order); soundness (the materials design and
perquisites are identified and constraints removed); and size (means that the assignments
should be correctly sized based on the capacity of the crew). Assignments that are made
ready for execution enter into a workable backlog.
The assignments entering the workable backlog are all constraint free and in the
proper sequence for execution. If the last planner finds a constraint that could not be
removed in time, the assignment would not be allowed to move forward. The last planner
should maintain a backlog of work ready to be performed, with assurance that everything
in the workable backlog is indeed workable [4, 5, and 6]. Weekly work plans are formed
from the workable backlog. Such assignments help improve the productivity of those
who receive them and increase the reliability of workflow between the production units.
The analysis of reasons for plan failure reveals more information regarding how the
production system actually functions and what could be done to improve it.
LPS: A Closer Look
The Last Planner System can be viewed as a supplement to traditional project
management for better production. The LPS is often depicted as shown in Fig. 2 Work
assigned to a crew is termed ‘Should’ work. The ‘Should’ tasks are those tasks
identified on the Master/Phase schedules and must be completed at a specific time. This
schedule is based on structural, technical, regulatory considerations, and sequencing.
This step also takes inputs from current status and forecasts.
The LPS model suggests a Lookahead process, where all the ‘Should’ tasks that are
planned for a given period of time are scrutinized, such that all the work is declared
constraint free. The capability of the crew to perform ‘Should-do’ work is termed ‘Can-
do’ work, and the work the crew actually commits to is termed ‘Will-do’ work. In
traditional project planning systems, the ‘Can-do’ aspect is not considered and a crew is
assigned to work without making sure that the work can be done. In contrast, planning
for assignments in the Last Planner System is performed after work assignments are
subjected to the five criteria that ensures no obstacles will prevent execution.
A constraint analysis is performed to find any constraints in completing an upcoming
task. These tasks are termed as ‘Can’ do tasks. All constraints should be removed for the
tasks before they enter into the workable backlog. The workable backlog is a set of tasks
that are constraint free and doable. These tasks are sized properly and all prerequisites for
the task should be available at the time of its execution. The foreman responsible for
performing an activity should only commit to tasks. These are known, as ‘Will-do’ tasks.
The tasks that are actually completed are known as ‘Did’ tasks.

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To assess the quality of the assignments made, a metric known as the Percent Plan
Complete (PPC) calculated as a ratio of the number of assignments completed to the
total number of assignments planned for that particular unit in a given period of time.
PPC is expressed as a percentage with a range between 0%-100%. In general, the higher
the PPC, the more reliable the production planning system. A PPC of 100% means all the
work assigned is completed as planned and it is the best-case scenario. A PPC value less
than 100% means there is a problem with the production planning system.
It is important to note that PPC does not provide a measure of how efficiently the
assignments were conducted. In other words, a PPC of 100% does not indicate the level of
utilization of the crew. Instead, PPC is a measure of production planning effectiveness and
workflow reliability, i.e., PPC is a measure of production planning system reliability and
performance.
Percentage of Plan Complete (PPC) Vs. Rolled Throughput Yield (YRT)
Abdelhamid [8] proposed the use of the Rolled throughput yield (YRT) metric as the
performance measure in the Last Planner System. An example of using the YRT metric
Fig.2 Last planner system model [3]

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instead of PPC was illustrated for a manufactured housing application. For detailed
discussion on rolled throughput yield refer to [8]. Mohammed and Abdelhamid [9]
suggested using rolled PPC similar to the rolled throughput yield. Using the rolled PPC
metric has the potential to expose the hidden factory (rework performed to rectify defects
during sub-processes). The rolled PPC metric “…gives a better sense of magnitude of the
process performance failure” [9]. Rolled PPC metric essentially is the product of the PPCs
over a period of time. It can be represented as follows:
rolled PPC = ∏ = 1
i
m
PPCi ………….. (1)
where PPCi is the PPC for day ‘i’ calculated as ‘number of assignments completed / number
of assignments made’.
This research used the rolled PPC metric as a measurement tool for assessing the
performance of production planning. In contrast to calculation of PPC, the rolled PPC will
give the real magnitude of the deficiencies of the planning process, and, thus it is more
realistic tool for performance measurement. For more detailed discussions please refer to
[9].
Data Collection and Analysis
To demonstrate the application of the rolled PPC assessment metric as well as how
to prioritize process improvement initiatives using LPS, data was collected by visiting two
apartment buildings (Building I and II) on a daily basis for a period of eleven weeks. The
visits were typically made an hour before construction activities ceased. On each day, the
site superintendent provided details of the activities planned for the next day. A site tour
was also completed to verify the status of activities in the two buildings.
Any activity that was not performed or partially completed was recorded as
incomplete as well as reasons for non-completion were also collected. The reason for
incompletion of any activity was recorded using the following reason codes: Productivity,
Engineering, Non-Conformance, Owner Decision, Weather, Pre-Requisite, No-Show,
Trade, Supplier, Space, and Other. A sample of the data collected for the tasks planned
and completed for a week is shown in Table 1. The Table also shows the PPC value for
each day. The data for this week shows an average PPC of 64% and this is calculated by
taking an average of all the daily PPC values.
Building I 26-Apr 27-Apr 28-Apr 29-Apr 30-Apr
Weekly
PPC
rolled
PPC
Tasks Planned 2 3 3 3 3
Tasks Completed 1 2 2 2 2
PPC (%) 50 66.66 66.66 66.66 66.66 64 10
Table 1. Samble data for a week

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Turning attention to the daily PPC values shown in Table 1 indicates that on day 1,
one out of two activities were completed giving a PPC value of 50%. Similarly, on day 2,
two out of three activities were completed giving a PPC value of 66.66%. The incomplete
activity on day 2 was due to the extra work performed to complete the previous day’s
work. Thus, on day 2 only 50 % of the work expected to be passed from day 1 was
actually completed and passed on. In other words, the PPC value for day 2 hides the extra
work done owing to incomplete work on the previous day. So, in reality, on day 2, only
66.66% of the work passed on was completed. Multiplying PPC for day 1 with the PPC for
day 2 can accurately reflect this. Hence, at the end of day 2 the PPC should be 33.33%
(50% * 66.66%). Similarly for day 3 the work passed on was only 33.33% completed as
planned, and, hence, the output for day 3 will reduce due to the fact that earlier work had
to be completed. This can be shown by multiplying daily PPC for day3 with the previous
days PPC and so on.
The weekly ‘rolled PPC’ is a value obtained by multiplying the daily PPCs for the
week. The weekly rolled PPC for the sample data in Table 1 is 10%
(50%*66.66%*66.66%*66.66%*66.66%). As mentioned earlier, the rolled PPC metric
gives an accurate value for measuring the performance of the process without hiding the
rework because of incomplete tasks on the previous day(s).
Figs. 3 and 4 show graphs plotted for PPC and rolled PPC for Building I and
Building II. It can be seen from the graphs that the rolled PPC is much lower than the
PPC for each week. A value of zero for rolled PPC indicates that the week had at least
one day with a PPC of zero, and a value of hundred for rolled PPC indicates that the
week had 100% PPC on all days of the week. This clearly shows the efficacy of the
rolled PPC metric in being able to measure the performance of the production planning
process in both the best and the worst cases.
In general, measured or collected data can be analyzed statistically in various ways to
determine areas of improvement. This is necessary so that management can identify the
aspects that need immediate attention and assign priority levels to the tasks that need to be
undertaken to improve the overall production planning process and thus improve crew
performance and crew-to-crew handoffs (workflow). Determination of high priority actions
can be achieved by performing statistical analysis on the data.

8
Weekly PPC vs rolled PPC for Bldg I
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11
Week
PPC/Rolled
PPC
PPC
Rolled PPC
Weekly PPC vs rolled PPC for Bldg II
0
0.1
0.2
0.3
0.4
0.5
0.6
0.7
0.8
0.9
1
Week 1 Week 2 Week 3 Week 4 Week 5 Week 6 Week 7 Week 8 Week 9 Week 10 Week 11
Week
PPC/Rolled
PPC
PPC
Rolled PPC
The metric ‘PPC’ can be modified to focus on the incomplete assignments by
introducing the Percentage Plan Incomplete (PPIC) metric. The sole purpose of developing
this new metric in this research is to focus on incomplete tasks and find causes for the
same. PPIC is the ratio of total number of tasks incomplete to the total number of tasks
planned to be completed. Following are some statistical data analysis tools used for the
purpose of identifying areas needing improvement.
Fig. 4 Graph of PPC and rolled PPC for building II
Fig.3 graph of PPC and rolled PPC for building I

9
Pareto Analysis
Pareto Analysis is a tool used to stratify the data into groups and Pareto Charts are
used to present this data. Pareto analysis is used for this research to stratify the data into
specified groups and identify areas that need improvement.
The reasons for incomplete assignments are stratified into various reason codes and
are used to identify the reasons that caused most of the incomplete assignments. A Pareto
chart is used to present this data graphically. Fig. 5 shows the various reasons grouped into
eight different reason codes and the number of times each reason code has caused an
incomplete assignment.
Pareto chart Overall
0
5
10
15
20
25
30
P
r
e
r
e
q
u
i
s
i
t
e
S
u
p
p
l
i
e
r
P
r
o
d
u
c
t
i
v
i
t
y
T
r
a
d
e
N
o
n
C
o
n
f
i
r
m
a
n
c
e
E
n
g
i
n
e
e
r
i
n
g
N
o
s
h
o
w
O
t
h
e
r
Reason Codes
%
of
times
Fig. 5 pareto chart for reason codes
The chart shows that ‘Pre-requisite’ is the major reason code that caused most of the
incomplete assignments in the data. ‘Pre-requisite’ means work that needs to be completed
before the particular assignment can be undertaken. ‘Supplier’ is shown as the second
highest reason causing delays to the project. ‘Productivity’ is third highest reason causing
incomplete assignments. The reason code ‘productivity’ is used when an assignment could
not be completed due to overestimating a crew’s productivity, i.e., when the crew couldn’t
complete the assignment in the given duration because they were under-resourced. The
Pareto chart for this data almost conforms to the 70-30 rule, which states that 70% of the
inefficiencies are caused due to 30% of the factors.

10
The results obtained from the Pareto analysis can be used to identify the areas that
need immediate attention. In this case, the company should focus attention on making all
the prerequisites available before making assignments to crews. The second highest
reason code ‘Supplier’ also needs immediate attention. The construction company can
use such data to conduct a brainstorming session with the personnel involved to develop
a Fish Bone Diagram and find the root causes for the incomplete assignments.
The Pareto Analysis was also used to stratify the data based on trade type and
weekdays. Fig. 6 shows a Pareto chart that identifies the number of incomplete
assignments associated with each trade. The figure shows that ‘Inspection’ had the most
number of incomplete assignments, which could either mean that the Inspector did not
show up, or the inspection could not be passed most of the times. The company should
look into the reasons for such performance and improve on the process.
PPIC for different Trades
0.00
10.00
20.00
30.00
40.00
50.00
60.00
70.00
80.00
90.00
I
n
s
p
e
c
t
i
o
n
C
a
r
p
e
n
t
r
y
A
r
c
h
i
t
e
c
t
/
E
n
g
i
n
e
e
r
S
u
p
p
l
i
e
r
D
r
y
w
a
l
l
H
V
A
C
P
a
i
n
t
i
n
g
P
l
u
m
b
i
n
g
Trades
Overall
PPIC
Fig. 6 Pareto chart for trades
Another chart was constructed to show the production performance on site based
on the day of the week. Fig. 7 shows a graph for PPC vs. Day of the week. The nature of
the graph shows that Tuesday and Wednesday are the days when the production is higher
compared to other days, and Friday shows the least production. This result matches with
a graph cited in [1] for production rates on different days of the week.
Fig. 6 Pareto chart for trades

11
PPC by Day of the Week
0
10
20
30
40
50
60
70
80
90
Mon Tue Wed Thu Fri
Weekday
PPC
Series1
Fig. 7 Graph of PPC vs. weekday
Cause and Effect Diagram
Variation in a process performance can occur due to many reasons, such as materials,
methods, measures, machines, environment, and people [10 and 11]. Identifying causes of
such problems can be achieved by using a cause and effect diagram. It is a simple graphical
method for presenting causes and effects and for sorting out causes and identifying
relationships between variables [10]. It is also called a Fishbone Diagram due to its
structure. The general structure is shown in Fig 8.
Fig. 8 General structure of a cause and effect diagram
The best way to construct a cause and effect diagram is in a brainstorming session
with all the participants giving various ideas that could be a cause of the problem. In this
research, a Cause and Effect diagram to find the root causes of the problems identified
using the Visual tools was constructed. The root causes having the most impact were
identified and selected as a prime candidate for further evaluation.
Cause Cause
Cause
Contributor to
the Cause
Problem
Contributor to
the Cause
Contributor to
the Cause
Fig. 7 Graph of PPC vs. weekday

12
Run Chart or Time Series Plot
Variation is inherent in any process and it leads to unreliability in the process. The
aim of Lean Construction is to eliminate or reduce the variations to the extent possible. The
variations could be attributed to either common causes or special causes [8]. Common
causes are those causes that are built into the process and cannot be eliminated unless the
process is reengineered. Whereas, special causes are those that create sudden variations in
the established process and should be targeted for elimination. A run chart or time series
plot is a popular method to determine the special causes and it is used here to statistically
determine such causes and find means to eliminate the cause.
There are various types of run charts. The p-chart with variable sample size is the
most suitable for this research. In a p-chart, a statistical range (upper and lower limits) is
set for the data and the data is plotted. The range can be set by defining an upper control
limit (UCL) and a lower control limit (LCL). These limits can either be set by the company
or can be mathematically calculated. Any data that is outside the limit is an indicator of an
out-of-control process. This may be due to a special cause and it can be detected and
avoided. Thus, for the PPIC data, derived from the PPC data collected as mentioned
earlier, a p-chart was plotted for both buildings in the study to determine special causes
that lead to incomplete tasks.
The p-chart is constructed using the following equations:
§
assigned
Tasks
PPICavg
PPICavg
dev
Std
_
)
1
(
_
−
= (2)
where,
∑
∑
=
assigned
Tasks
incomplete
Tasks
PPICavg
_
_
§ dev
Std
PPICavg
UCL _
+
= (3)
§ PPICavg
CL = (4)
§ dev
Std
PPICavg
LCL _
−
= (5)
Fig. 9 shows a p-chart plotted using data of incomplete tasks for Building I. The
LCL limit is zero in this case, i.e., we would like to see no incomplete tasks. The UCL
value for each day is varying because the number of tasks assigned for each day is varying.
On any given day, the tasks incomplete should not be more than the UCL value. In Fig.9,
we can clearly see that on some days, the incomplete tasks were more than the UCL. This
is an indication of special cause variation. The particular days can be identified and reasons
for incomplete tasks can be evaluated and reduced, or if possible eliminated, such that
similar conditions do not recur. This is the main aim of monitoring and controlling using
statistical analysis. If this process is repeated on a weekly basis or any fixed period of time,
the past causes for high number of incomplete tasks can be determined and measures can
be taken to avoid such instances in the future.

13
p- Chart for Task Incomplete Building I
0.00
0.50
1.00
1.50
2.00
2.50
1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55
Day
Task
Incomplete
UCL
CL
Tasks Incomplete
CONCLUSIONS
The Last Planner System (LPS) and the metric PPC is a very effective tool for
production planning. Use of the rolled PPC metric in conjunction with the LPS would help
reveal the efficacy of the production planning process. The aim is to improve the process
and hence effort should be put to use the PPC data further and find areas of improvement.
Basic statistical tools can be used for this purpose as indicated in this research. These tools
help in the intervention of the management and focuses on revealing the root causes to the
problem areas. The detailed analysis suggests various areas that can be modified to improve
the whole process.
REFERENCES
1. Oglesby, C.H., Parker, H., and Howell, G. (1989). Productivity Improvement Studies
in Construction. McGraw Hill Book Company, New York, N.Y.
2. Koskela, L. (2000). “An exploration towards a production theory and its application
to construction.” Helsinki University of Technology, Finland.
3. Ballard, H. G. (2000). “The Last Planner System of Production Control” University of
Birmingham.
4. Ballard, G. and Howell, G. (1994a). “Implementing Lean Construction: Stabilizing
Work Flow.” Proceedings of the 2nd
Annual Meeting of the International Group for
Lean Construction, Santiago, Chile.
Fig. 9 P-Chart for task incomplete in building I

14
5. Ballard, G. and Howell, G. (1994b). “Implementing Lean Construction: Improving
Performance Behind the Shield.” Proceedings of the 2nd
Annual Meeting of the
International Group for Lean Construction, Santiago, Chile.
6. Mohammed, T. M. (2005). “Production Planning Process in Residential Construction
Using Lean and Six Sigma.” Masters dissertation, Michigan State University, East
Lansing, MI.
7. Ballard, G. (1997). “Improving Work Flow Reliability”. Proceedings of the 7th
Annual
Conference of International Group of Lean Construction, Berkeley, CA, July 26-28,
1999.
8. Abdelhamid, T. S. (2003). “Six Sigma in Lean Construction Systems: Opportunities
and Challenges.” Proceedings IGLC-11, Aug. 2003, Blacksburg, Virginia.
9. Mohammed, T. M., and Abdelhamid, T. A. (2005). “Production Planning Process in
Residential Construction Using Lean and Six Sigma Principles.” Proceedings
Construction Research Congress 2005, San Diego, CA.
10. Evans, J. R., and Lindsay, W. M. (2001). “The Management and Controls of Quality
Fifth Edition” South-Western, Cincinnati, OH.
11. Pande, P. S., Neuman, R. P., and Cavanaugh, R. R. (2000). “The Six Sigma Way: How
GE, Motorola, and Other Top Companies are Honing their Performance.” McGraw-
Hill, New York, NY.

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