Study your flashcards anywhere!

Download the official Cram app for free >

  • Shuffle
    Toggle On
    Toggle Off
  • Alphabetize
    Toggle On
    Toggle Off
  • Front First
    Toggle On
    Toggle Off
  • Both Sides
    Toggle On
    Toggle Off
  • Read
    Toggle On
    Toggle Off
Reading...
Front

How to study your flashcards.

Right/Left arrow keys: Navigate between flashcards.right arrow keyleft arrow key

Up/Down arrow keys: Flip the card between the front and back.down keyup key

H key: Show hint (3rd side).h key

A key: Read text to speech.a key

image

Play button

image

Play button

image

Progress

1/91

Click to flip

91 Cards in this Set

  • Front
  • Back
  • 3rd side (hint)
What are the five steps of the project management process?
The project management process offers clear steps you can take to get projects done on time, within budget, with reduced risk, and with more predictable results. In order to begin with a concept and end with a successful product or service, it is <u>critical</u> to complete the following five steps for every project:

1. <u>Initiating</u>. The initiating step involves formally recognizing that a new project exists. Generally, some project goals, objectives, and major milestones are also established during the initiation step.
2. <u>Planning</u>. The planning step consists of defining resources and developing a schedule and a budget in order to achieve project objectives. This step is generally the most detailed step of the project management process. When done correctly, it has the greatest impact on the success of the project. Since this step is so critical, a common project management phrase to remember is ''plan the plan.''
3. <u>Executing</u>. The executing step involves coordinating personnel and resources in order to achieve the project goal. A key phrase to help you remember this step is ''work the plan.''
4. <u>Controlling</u>. The controlling step involves measuring progress toward project objectives and taking corrective action to bring the project back within the stated goals and objectives.
5. <u>Closing</u>. The closing step consists of gaining acceptance of the final product, bringing the project to an orderly conclusion, and reviewing lessons learned from the project.
IPECC
What are the variables involved in the project management process?
In order to complete a project successfully, several variables must be addressed throughout the five steps of the project management process. These variables include such things as:

* Project scope management
* Time management
* Estimating costs
* Quality standards
* Human resource management
* Communication
* Risk management
* Contracts and procurement
* Integration

It is critical that you have a solid understanding of these variables before beginning the project management process. Each of these variables is made up of components. For example, the quality management variable is broken into the following components: quality planning, quality improvement, and quality control.
"HE Paddle Quietly up the CRIC"
What is quality management, and why is it important?
Quality management is a project variable used to ensure that a project achieves its goals and to ensure that all aspects of a project are done correctly the first time. In order to manage quality successfully during a project, you must first understand the components of quality management:
What is quality
In simplest terms, quality is the extent to which a product suits a customer's needs and expectations. Customers expect not only that products will fulfill certain needs, they also expect products to be readily available, reasonably priced, easy to use, simple to maintain, and reliable.
Who defines quality?
Customers define quality based on how well the product of the project fulfills their needs and expectations. Customers' needs and expectations represent standards against which products are measured. Therefore, project managers and teams must define project and product quality based on customers' needs and expectations.
What are some characteristics of quality?
Quality characteristics vary depending on the type and purpose of a product. Some generally accepted quality characteristics include:

* Having a sound structural design, so the product can withstand rough handling.
* Being aesthetically appealing and not overwhelming to the environments they occupy.
* Functioning reliably without needing frequent repairs.
* Having a warranty to protect customers if a product malfunctions.
* Being produced ethically without polluting the environment or wasting resources.
It must be better than the SEWAR
Who is responsible for project and product quality?
Upper management, the project manager, team members, vendors, subcontractors, and members of pertinent regulatory agencies are all members of a project's quality team. In general, members of management are 85% responsible for quality since they establish the guidelines, while other project team members are 15% responsible for quality since they must follow the guidelines.
What are quality circles?
Quality circles are groups of project team members who meet to discuss problems with achieving quality standards. During the meetings, members of quality circles brainstorm possible solutions to the problems they identify. They then take their solution ideas to management so management can choose a course of action
What are six quality management directives that should support each project?
1. <u>A quality policy</u> specifies quality standards and who is responsible for meeting those standards.
2. <u>Quality objectives</u> define a company's quality goals, which should be realistic and attainable.
3. <u>Quality assurance</u> evaluates a project's cumulative progress at regular intervals of a project's life cycle, which reassures project stakeholders that the project's quality standards will be met.
4. <u>Quality control</u> evaluates certain project outcomes to make sure they meet quality standards and to eliminate the sources of non-quality work.
5. <u>Quality audits</u> assess whether a project and product meet a company's quality goals.
6. <u>Quality plans</u> present a means of implementing a project's quality policy. Another name for quality plan is ''quality program.''
What are some goals of quality plans
Quality plans are guidelines set by the project manager to maintain product standards. Some main goals of quality plans include:

* Making sure products are fit for use when they reach the customers. Products that require assembly by a customer are considered fit for use unless parts are damaged or missing.
* Fostering customer satisfaction by providing quality products and helpful customer service.
* Developing products that conform to customers' needs and expectations.
What is rework?
Rework is the corrective action taken to make a defective product conform to a project's quality standards. Reworking a product takes more time and uses more resources than if the product is made correctly the first time. The use of additional time and resources increases the cost of quality, which is the total amount of money and work used to make quality products.
What are some vital issues addressed by quality management
Project managers and team members should carefully examine certain issues during project quality management. Some important quality management issues are:

* Error-prevention, which eliminates errors before they can occur.
* Accountability, which means that the project manager is ultimately responsible for making sure project team members have the necessary materials for successful project completion.
* Activity verification, which ensures that each activity is executed as planned.
* Lessons learned from past projects, which enable the project team to create better products, give better service, attract new customers, keep existing customers, and regain former customers.
How are Deming, Juran, and Crosby important to quality management
Traditional quality performance standards were based on the assumption that defects and errors are inevitable. The following pioneers of quality management practices believed that defects and errors could be predicted and eliminated before taking root:

* Dr. W. Edwards Deming
* Dr. Joseph M. Juran
* Phillip B. Crosby
Dr. W. Edwards Deming
efficient activity execution, verification that activities meet project goals, and documentation of lessons learned. Another name for this cycle is the Plan-Do-Check-Act Cycle.
Dr. Joseph M. Juran
Dr. Joseph M. Juran developed what is called the Juran Trilogy, which emphasizes Quality Improvement, Quality Planning, and Quality Control.

In addition to this trilogy, Dr. Juran is known for his Ten Steps to Quality Improvement. He recognized the importance of products being fit for customers' use and was concerned with the legal side of quality standards.
Phillip B. Crosby
Phillip B. Crosby assembled what he called the 14 Steps to Quality Improvement. He also developed Four Absolutes of Quality: a product must measure up to all requirements, error prevention is key to high quality, all projects should strive for ''zero defects,'' and activities should be done correctly the first time.
What is total quality management
Total quality management is the process, directed by upper management, through which a company continuously tries to improve the quality of workmanship and products. The primary aim of total quality management is to organize project planning, product design, and program implementation such that resulting products and services are available to customers at a reasonable cost.
What are two awards given for excellent quality management practices
* <u>The Malcolm Baldrige National Quality Award</u>, which was established with the Malcolm Baldrige National Quality Improvement Act in 1987. This Act promotes company knowledge of quality management practices, and the Award recognizes quality-related accomplishments. Criteria for this award include leadership, planning strategies, resource management, and customer satisfaction.
* <u>The Deming Award</u>, which was established by the Union of Japanese Scientists and Engineers. The Union of Japanese Scientists and Engineers bestows the Deming Award based on such things as a company's quality and management policies, organization, policy implementation, and problem-solving capabilities.

Companies can use the standards for the Malcolm Baldrige and Deming Awards to develop organizational and quality policies or to measure the performance of their current quality policies.
What are the variables involved in the project management process?
In order to complete a project successfully, several variables must be addressed throughout the five steps of the project management process. These variables include such things as:

* Project scope management
* Time management
* Estimating costs
* Quality standards
* Human resource management
* Communication
* Risk management
* Contracts and procurement
* Integration

It is critical that you have a solid understanding of these variables before beginning the project management process. Each of these variables is made up of components. For example, the quality management variable is broken into the following components: quality planning, quality improvement, and quality control.
What is quality management, and why is it important?
Quality management is a project variable used to ensure that a project achieves its goals and to ensure that all aspects of a project are done correctly the first time. In order to manage quality successfully during a project, you must first understand the components of quality management:
Where do the components of quality management fit into the project management process
Before beginning a project, it is important for you to have a solid understanding of quality management and how its components are integrated into the project management process. The components of quality management fit into these steps of the project management process:

* Quality planning is part of the planning step of the project management process.
* Quality improvement is part of the executing step of the project management process.
* Quality control is part of the controlling step of the project management process.
What is quality planning?</
Quality planning involves defining the quality standards for a project and deciding how to achieve those standards. The scope statement is used as a point of reference during quality planning because it outlines not only the end results of a project, but also the project objectives, which should be in-line with stakeholder expectations.

An important part of quality planning involves making sure quality is part of a product's design from the beginning of a project, since quality cannot be infused into a product through inspection.

It is important to understand that quality planning is not only a component of the <u>quality management</u> variable, but that it is also part of the second step of the project management process -- project planning.
What is a quality policy?</
A quality policy is a company's statement of how it will produce quality products and what it will do if products are defective. Most often, upper management dictates a quality policy to be implemented by project managers and team members.

Not all quality policies are formal documents. If a company does not have a formal quality policy, then project managers and team members should draft one before starting a new project. It is important that a project's stakeholders know the terms of the quality policy before a project begins.
What are some key criteria for project managers to consider during quality planning?</
* <u>Customers and their expectations</u>. Identifying customers and developing a quality plan based on their expectations helps ensure that the end products of a project will satisfy their expectations.
* <u>Relationships among different parts of a project</u>. Envisioning project relationships enables project managers to plan a project logically.
* <u>The effects of change</u>. Project managers must be able to accurately calculate the effect changes have on a project.
* <u>Resource use</u>. Project managers must determine how best to use the resources allotted for a project.
* <u>Communication</u>. Communicating effectively with project team members can ensure that project activities are completed as scheduled and according to quality standards.
How should quality planning be included in the initial planning of a project?
Planning quality into a project involves anticipating and preparing for positive and negative situations that may arise during a project. The following items should be included in initial project planning:

* <u>Network planning</u> arranges project activities in a logical order of completion and diagrams the activities for visual reference.
* <u>Time analysis</u> allows comparison between estimated activity duration and actual activity duration.
* <u>Resource analysis</u> allows comparison between the quantity of resources allocated for each project activity and the actual quantity of resources used for each activity.
* <u>Cost analysis</u> enables comparison of money allotted to complete each project activity and the actual amount of money used for completion of each activity.
* <u>Multiple schedules</u> are contingency plans in case something goes wrong with the master schedule.
* <u>Progress reports</u> communicate actual project progress as compared to planned progress, as well as identify any variations in a project schedule or resources.
* <u>Key events</u> signify project status to customers and are used as control points for project managers.
* <u>Deadlines and activity logic</u> account for the earliest and latest possible start dates for all project activities, as well as for activity relationships.
What planning activities that occur during the conceptual phase influence project quality
The greatest influences on the quality of a project and product are made during the conceptual phase. The conceptual phase of project planning includes such things as setting project start and finish dates, signing contracts with suppliers, and designing the end product of a project. During the conceptual phase, performance of the following planning activities impacts project quality:

1. Communicate with customers to get feedback from them, so the end product of a project will successfully meet their needs and expectations.
2. Define the project scope so the project manager knows what must be done to meet customers' expectations.
3. Define the project objectives so everyone involved in the project knows the expected outcomes.
4. Develop a practical schedule, one that is based on the amounts of time, money, and resources available for project completion.
What quality-related activities are sometimes overlooked during a project
Quality management should be a priority throughout an entire project. However, project managers deal with numerous distractions that shift attention away from some important quality-related activities. As a project manager, it is essential that you carry out and/or verify the completion of the following quality-related activities:

1. Making sure product design standards are compatible with customer expectations.
2. Listing the materials needed to manufacture a product avoids using inferior materials.
3. Maintaining the project team's focus on quality standards.
4. Checking for over-design, which uses higher-grade materials, thus increasing production cost.
5. Checking for under-design, which cuts corners to keep a project on schedule.
6. Clearly detailing a product's design specifications lessens the risks of miscommunication.
What is grade?</
Grade refers to the differing levels of product functionality. A high grade of product functionality does not mean that the product is high quality. Similarly, a low grade of product functionality does not mean that the product is low quality.

For example, there are different classes, or grades, of cars. A car from a lower class does not have automatic locks or windows, air conditioning, and cruise control, whereas a car from a higher class has all of those features. If both classes of car function within given specifications or quality standards, then the fundamental difference is in the grade, not the quality.
What procurement issues impact quality
Procurement, the purchase of goods and services needed for a project, is an important element of quality planning. The people in charge of procurement must work closely with the project manager and product design engineers to avoid purchasing incorrect materials or enlisting the wrong kinds of services.

Some procurement issues that impact quality are:

1. The price of materials, with regard to the grade of materials.
2. The amount of time needed for delivery of materials and when the materials are needed.
3. The timely delivery of project materials and tracking materials that are not delivered on time.
4. The contractor's qualifications to complete the kind of work needed for a project.
5. The contractor's bid must be accurate to avoid conflict over contract specifications.
6. The contractor's quality policy, which should be carefully examined for compatibility with a project's quality policy.
What are some techniques used during quality planning?
During quality planning, project managers use different techniques to verify whether or not certain production processes or materials conform to a project's quality standards. Some techniques used during quality planning include:

* <u>Benefit/cost analysis</u> weighs benefits versus cost to make sure a project meets quality requirements without going over the project's budget.
* <u>Benchmarking</u> compares planned project activities to past project activities. This technique allows the project manager to determine what adjustments should be made to the project before work begins.
* <u>Flowcharting</u> uses flowcharts, such as cause and effect diagrams, to illustrate relationships among each part of a project.
* <u>Design of experiments</u> distinguishes which parts of a project have the greatest impact on a project's final product.
are some characteristics of a good quality management plan
A well-developed quality management plan directs a project according to customer expectations and clearly states how a project team will carry out quality policy. In addition, a good quality management plan identifies suppliers at the beginning of a project, so materials can be ordered far enough in advance of when they are needed.

Having a solid quality management plan is important because the plan can be used to verify that the quality management process for a project is functioning correctly. A good quality management plan can also be used to confirm that a project's quality objectives are met.
What are operational definitions?
Operational definitions are highly detailed explanations of individual parts of a project, such as activity start and finish dates. Each operational definition states how an individual part is measured according to a project's quality standards. Another name for operational definitions is ''metrics.''

Operational definitions are used during quality assurance to identify areas in which improvements need to be made.
How are checklists useful to quality management
Project quality planning should result in a checklist. Checklists are used to verify that a set of quality control steps has been completed. There are two general kinds of checklists. One kind consists of a series of questions, such as, ''Has Activity X been completed?'' Another kind is an inventory list comprised of such things as activities or expected product characteristics
What is quality assurance, and why is it important
Quality assurance refers to project activities that are planned and executed to ensure quality products and services.

The goal of quality assurance is the improved quality of a project's processes and improved quality of end products. Any problems encountered during the execution of quality assurance activities must be corrected. Correcting problems can lead to greater efficiency, decreased cost of production, and a higher-quality product.

Quality assurance is important not only because it leads to the correction of problems, but also because it gives project stakeholders and customers confidence that a finished product will be free of defects.

It is important to understand that quality improvement is not only a component of the <u>quality management</u> variable, but that it is also part of the third step of the project management process -- project execution.
What are project quality audits
Project quality audits are evaluations of a project's quality management system. One purpose of project quality audits is to identify areas that need improvement. It is important to conduct project quality audits because they highlight incidents of deviation from a project's quality objectives.

Project quality audits can be planned or spontaneous, announced or unannounced, and should be conducted by an independent person or group.

<b>What conditions must be met in order to conduct a credible
What conditions must be met in order to conduct a credible audit?</
In order for a quality audit to be credible, it is important that the person or group conducting the audit is independent from the organization whose project is the focus of the audit. Auditors should never be involved in conflicts that occur within a project's parent organization since involvement in such conflicts could jeopardize the credibility of the audit.

A quality audit cannot be credible unless the person or group conducting the audit is qualified to analyze project data. Qualifications vary depending on the project and the level of detail necessary for the audit.

In addition, the person or group conducting the audit must have open access to all project data and members of a project team. Without access to the proper information and personnel, the audit cannot be conducted effectively.
What are some of the project auditor's responsibilities
Whether an audit is conducted by a single person or by an audit team, there are certain responsibilities that must be acknowledged throughout the audit. These responsibilities include:

* Objective analysis of project data, which includes avoiding the biases of interested parties and maintaining political and technical independence.
* Ethical treatment of project data, which means respecting the confidentiality of all information gathered during an audit.
* Admitting to any limits of technical knowledge that may affect the results of the audit.
* Honest representation of audit results.

Project managers and team members need to know an auditor's responsibilities so they can avoid interfering with the auditor's work. In addition, project managers and team members should leave auditors out of disputes, should not ask auditors to reveal confidential information, and should allow auditors access to all information pertinent to the audit.
When are project audits conducted
Project audits are conducted before, during, or after a project. The scope of an audit depends on the time at which it is performed. For example:

* Audits done before a project begins concentrate on the technical aspects of a project, such as product design. Auditing a product's design before production begins can be an important first step toward quality improvement.
* Audits conducted during a project may focus on how closely a project is progressing according to the schedule and budget provisions. If a project is behind schedule, an audit can help find the causes.
* Audits conducted after project completion may focus on such things as whether a product meets legal requirements, or the project's actual expenses as compared to budgeted expenses.
What information should a project audit report
Project quality audit reports are useful tools for project managers. Audit reports contain information such as a project's status at the time of the audit and the status of activities that are most influential to a project's success.

Audit reports often analyze the level of risk, such as likelihood of a project's failure. Knowing the level of risk gives project managers and stakeholders the opportunity to consider ways to lower the risk.

In addition, audit reports should explain any assumptions made and restrictions encountered during the audit. If an auditor made a faulty assumption during an audit, that assumption can taint the accuracy and validity of the information in the audit report.
What is cost of quality, and how is it classified for a project
Cost of quality refers to the amount of money and resources used to make sure a project's quality standards are met. There are two basic classifications for the cost of quality:

* <u>Cost of conformance</u>. Conformance is the extent to which products meet quality standards. The cost of conformance is the total amount of money and resources used to make sure goods and services meet a project's quality standards. Conformance costs include such things as project planning, error-prevention activities, maintenance, training programs, product testing, and quality audits.
* <u>Cost of nonconformance</u>. Nonconformance is the extent to which products deviate from quality standards. The cost of nonconformance is the total amount of money and resources used to correct problems so that goods and services meet a project's quality standards. Nonconformance costs include such things as rework, recalled products, and responding to customer complaints.
What are five major categories related to the cost of quality
It is important for project managers and team members to understand the costs associated with quality improvement. There are five major categories related to the cost of quality:

* <u>Prevention</u>. Prevention costs result from eliminating errors through project planning and execution.
* <u>Appraisal</u>. Appraisal costs result from examining activities for execution errors.
* <u>Internal failure</u>. Internal failure costs result from correcting a defect that is realized before the product is distributed to customers.
* <u>External failure</u>. External failure costs result from correcting a defect after the product has been distributed to customers.
* <u>Equipment</u>. Equipment costs result from acquiring the means necessary to prevent errors and to evaluate activity execution.
What are some effects of non-quality work
The term non-quality applies to work that is done incorrectly, as well as to work that is done correctly but is the wrong kind of work.

Suppose a machine produces 15,000 parts per hour at a cost of $0.15 per part. A sizing error occurs, and the machine produces 45,000 of the wrong-sized parts before the error is caught. That sizing error wastes $6,750. Even if the parts are free of defects, the work to produce them is non-quality work because of the sizing error.

Since additional time and resources are required to correct problems associated with non-quality work, the cost of quality increases, which in turn adds to the overall cost of project completion. Other effects of non-quality work include schedule delays, damage to a company's reputation, and increased demands on customer service departments.
What are some areas in which cost can be saved?
When a problem drives up project costs, then it becomes necessary to identify areas in which cost can be reduced. The following areas of a project can be altered to reduce cost:

* Budget reapportionment
* Product functionality
* Inventory
Budget reapportionment
Research and Development, Acquisition Cost, and Operation and Maintenance Cost are among the areas of a project's budget that can be adjusted to lower overall cost. Traditionally, the Research and Development phase is 10% of the total cost of a project, while the Acquisition phase is 30%, and the Operation and Maintenance phase is 60%. Shifting these percentages can lower the overall cost of a project.

Suppose a project is expected to cost $200 million. According to the traditional percentages, Research and Development gets $20 million, Acquisition gets $60 million, and Operation and Maintenance gets $120 million. Suppose, too, that increasing the Research and Development amount by 10% causes a 1% increase in the Acquisition Cost and a 15% decrease in the Operation and Maintenance Cost.

Based on the new percentages, Research and Development gets $22 million, Acquisition gets $60.6 million, and Operation and Maintenance gets $102 million. Shifting the percentages saves a total of $15.4 million.
Product functionality
Testing a new product's functionality and correcting any errors before releasing it to customers can reduce external failure costs. However, it is important to compare the testing costs to the possible external failure costs, since testing costs are not always lower than external failure costs.
What is the Rule of Seven
The Rule of Seven applies to control charts that exhibit either a run or trend of seven or more consecutive data points. Any time a run or trend has seven or more consecutive data points, it is a sign that something is wrong with the production process.
What kinds of information can be gathered from control chart analysis
Control chart analysis yields information about the consistency of product characteristics. If the control chart reflects instability and unacceptable variations in products, then action is needed to achieve acceptable levels of variation. Control charts also differentiate among random causes of variability.

Control chart analysis is beneficial since it shows at what points in a project alterations must be made to correct unacceptable degrees of variation. Conversely, control chart analysis shows at what points a project is going smoothly and that no changes are needed.
What terms are necessary to know when using control charts
In order to use control charts effectively during quality control, you must be able to interpret the patterns of data on the charts. It is important to know the following terms when using control charts:

* A <u>run</u> occurs when points line up consecutively along one side of the chart's centerline.
* A <u>trend</u> occurs when a series of points on a chart rise over a period of time.
* A <u>periodic pattern</u> occurs when points follow the same rise-and-fall pattern over equal periods of time.
* <u>Hugging the control limit</u> occurs when points on the chart lie closely on either side of the centerline or upper and lower control limits.
* When points on a chart fall outside the chart's upper or lower control limits, the production process is <u>out of control</u>.
* When no points on a chart fall outside the chart's upper or lower control limits, and there are no other aberrations, the production process is <u>in control</u>. Therefore, the process should not be adjusted.
* When data points are in a random pattern on either side of the centerline, it is called <u>random around the mean</u> and the process is said to be ''in control.'' If the data points are not random around the mean, then a process is ''out of control.''
* An <u>outlier</u> is a data point that lies outside the control limits. One outlier does not always indicate that a process is out of control, but may indicate adjustments are needed.
When is a process adjustment used
When quality control measures lead to the discovery of product and process inadequacies, it is sometimes necessary to make a process adjustment. A process adjustment can be either corrective or preventive. Before implementing a process adjustment, it is important to consult the guidelines for making changes to a project. Process adjustments must be made according to a project's specified guidelines.
What terms are necessary to know when using control charts
In order to use control charts effectively during quality control, you must be able to interpret the patterns of data on the charts. It is important to know the following terms when using control charts:

* A <u>run</u> occurs when points line up consecutively along one side of the chart's centerline.
* A <u>trend</u> occurs when a series of points on a chart rise over a period of time.
* A <u>periodic pattern</u> occurs when points follow the same rise-and-fall pattern over equal periods of time.
* <u>Hugging the control limit</u> occurs when points on the chart lie closely on either side of the centerline or upper and lower control limits.
* When points on a chart fall outside the chart's upper or lower control limits, the production process is <u>out of control</u>.
* When no points on a chart fall outside the chart's upper or lower control limits, and there are no other aberrations, the production process is <u>in control</u>. Therefore, the process should not be adjusted.
* When data points are in a random pattern on either side of the centerline, it is called <u>random around the mean</u> and the process is said to be ''in control.'' If the data points are not random around the mean, then a process is ''out of control.''
* An <u>outlier</u> is a data point that lies outside the control limits. One outlier does not always indicate that a process is out of control, but may indicate adjustments are needed.
What kinds of information can be gathered from control chart analysis?</
Control chart analysis yields information about the consistency of product characteristics. If the control chart reflects instability and unacceptable variations in products, then action is needed to achieve acceptable levels of variation. Control charts also differentiate among random causes of variability.

Control chart analysis is beneficial since it shows at what points in a project alterations must be made to correct unacceptable degrees of variation. Conversely, control chart analysis shows at what points a project is going smoothly and that no changes are needed.
Control charts consist of the following:
* A <u>centerline</u>, which represents the average, or acceptable, amount of product variation.
* <u>Data points</u>, which represent incidents of variation in products.
* An <u>upper control limit</u>, which represents any product variations greater than the average variation, yet still within acceptable limits.
* A <u>lower control limit</u>, which signifies any product variations less than the average variation, yet still within acceptable limits. Points that fall beyond either control limit are unacceptable.
What are the primary quality control tools used when managing a project?</
There are several quality control tools a project manager can use during a project. The following is a list of some of the most common quality control tools:

* Pareto analysis
* Flowcharting
* Scatter diagrams
* Trend analysis
* Graphs
* Checklists
* Inspection
* Control charts

<b>* Pareto analysis</b>

Pareto analysis uses histograms to list product defects based on type and frequency of occurrence. Project managers can use Pareto analysis to rank defects according to severity, then focus on correcting the most urgent defects.

It is important to note that the Pareto analysis is based on the 80-20 Rule, which states that 80% of all problems occur in 20% of a project's processes. Theoretically, if project managers focus on the 20% of processes identified using Pareto analysis, they will be able to solve 80% of the project's problems.

In addition, Pareto analysis diagrams are used to determine whether corrective action has actually fixed a problem and to evaluate the differences between project activities or methods.

<b>* Flowcharting</b>

Flowcharting is used during quality management to analyze a process and determine the weak points in the process. Identifying the weaknesses in a process and correcting those weaknesses helps ensure that the process will run smoothly and that the end products will have fewer defects.

A widely-used flowcharting method is cause and effect diagramming, which illustrates relationships among such things as time, personnel, and materials used during a project. There are some basic steps for using cause and effect analysis:

1. Identify a problem, then write a clear, detailed description of it.
2. Analyze the problem to identify likely causes.
3. Construct a diagram using a separate box to represent each possible cause of the problem. It may be helpful to assign degrees of importance to each cause, then address the causes that have the greatest effect on quality.
4. Develop a plan to correct the problem based on the causes illustrated on the diagram.

<b>* Scatter diagrams</b>

Scatter diagrams use independent (X-axis) and dependent (Y-axis) variables to illustrate a relationship between two elements of project data. Suppose product units have a specific quality defect. A scatter diagram can illustrate the occurrence of the defect, on the Y-axis, in relation to the number of product units examined, on the X-axis.

In order to interpret scatter diagrams correctly, you must understand the kinds of data relationships depicted on the diagrams. These data relationships are:

* <u>No correlation</u>. Randomly scattered data points indicate that the variables are unrelated. If you are trying to find a problem, then it is not between the chosen variables.
* <u>Positive correlation</u>. Data points in an upward-sloping line indicate that when one variable increases, the other also increases.
* <u>Negative correlation</u>. Data points in a downward-sloping line indicate that when one variable increases, the other decreases.
* <u>Curvilinear correlation</u>. Data points in a U-shaped curve indicate that the relationship between the variables fluctuates between positive and negative correlation.

<b>* Trend analysis</b>

Trend analysis uses scatter diagrams to monitor the performance of technical operations, project costs, and a project's schedule. During trend analysis, a project manager determines the mathematical equation that best fits the slope of the line on a scatter diagram. The equation is then used to predict how changing one project variable will affect another project variable.

<b>* Graphs</b>

The graphs used during quality control range from vertical or horizontal bar charts to pie charts. Graphs are used to determine whether or not a project's processes need to change by comparing project variables. Some project variables depicted on graphs include the frequency of product characteristics and changes in relationships among project data as time passes.

<b>* Checklists</b>

Checklists are used to verify that quality control steps are completed. Generally, checklists include items or activities needed for a process, and are formatted with ''Yes,'' No,'' and ''Not applicable'' categories.

A person using a checklist must account for each step on the list before proceeding to another activity. Therefore, checklists are effective tools for ensuring completion of quality control steps.

<b>* Inspection</b>

Quality cannot be infused into a project or a product by inspection. However, inspection is a useful tool for quality control. End products should always go through a final inspection to make sure that they conform to quality standards. Another name for inspection is ''walk-through.''

<b>* Control charts</b>

Control charts are used to establish the extent to which characteristics can vary from product to product. While limited variation is acceptable, too great a degree of variation is a problem. The main purpose for using control charts is to identify potential problem areas of a project, which allows project managers and team members to find ways to prevent problems.
What are some basic statistical terms to know when monitoring quality
Quality monitoring involves the use of statistics. Therefore, it is important to know the following basic statistical terms:

* <u>Population</u>. Population refers to the total number of product units produced during a project.
* <u>Sample size</u>. Sample size refers to the number of product units taken from a population for evaluation during a project's quality monitoring process. This number varies depending on the product, the time of the inspection, and a company's needs.
* <u>Mean</u>. Mean refers to the sum of the sample divided by the number of units in the sample. For example, in the sample {2, 3, 4, 3}, the mean is (2 + 3 + 4 + 3)/4. The mean is 3.
* <u>Median</u>. When an odd-numbered set of data is arranged sequentially, the middle number in the set is the median. For example, in the set {2, 4, 7}, the median is 4. When an even-numbered set of data is arranged sequentially, the median is the average of the middle two numbers. For example, in the set {3, 4, 6, 8}, the median is (4 + 6)/2. The median is 5.
* <u>Mode</u>. In a sample of data, the number that occurs most frequently represents the mode. For example, in the set {1, 4, 6, 1, 8, 1}, the mode is 1.
What is statistical quality control
Statistical quality control is used to evaluate the extent of product variation and to identify what changes, if any, must be made to production processes to decrease product variation. Data points on a graph represent incidents of product variation, and a normal distribution curve indicates whether or not the variations are of a degree acceptable for quality standards.
Tolerances and control limits
Tolerance refers to the amount of acceptable variation from product quality standards. Control limits apply to a project's process rather than to a product. A project is considered ''in control'' if its processes are within specified control limits.
Special causes and random causes
Special causes of variation, which are often caused by human error, are generally unexpected or unanticipated. Random causes, also called common causes, of variation are normal difficulties associated with a certain process, such as equipment failure or faulty product design.

Project team members who contribute to special causes of variation should be able to correct the causes on their own, whereas project managers are responsible for solving random causes of variation since the causes are part of a project's process.
Attribute sampling and variation sampling
Both attribute sampling and variation sampling tell whether a product does or does not conform to quality standards. However, variation sampling also accounts for the degree to which a product does or does not conform.
Prevention and inspection
Prevention and inspection have different purposes. Prevention requires careful planning to avoid errors before a project begins. Inspection occurs during project execution or after a project is completed. When defects are found during inspection, rework is required to correct the defects before products are distributed to customers.
What should a project team know about quality control
There are some important distinctions that project team members must be aware of with regard to quality control and the degree of allowable variations in a project's processes. These distinctions include the differences between the following:

* Prevention and inspection
* Attribute sampling and variation sampling
* Special causes and random causes
* Tolerances and control limits
What are some issues to consider when developing a quality control system?</
Several issues you should consider when developing a quality control system for a project are:

* Establish the desired level of product performance and the standards needed to achieve that level.
* Evaluate the advantages and disadvantages of the various quality control techniques so you can choose the technique best suited to your project goals.
* Identify the conditions that must be met if the chosen quality control system is to operate effectively.
* Examine the effectiveness of the quality control system throughout the project's life cycle and modify the system, when necessary, to improve product quality.

During the project's life cycle, it is also important to verify that the quality control system consistently and accurately communicates information about a product's performance.
What is a quality control system
A quality control system is a means to monitor specific project results and to gauge whether or not those results conform to the project's quality standards. Project managers use data from quality control systems to determine whether or not changes should be made to a project. A good quality control system should:

* Specify the measurements used to determine the degree of conformance or nonconformance.
* Designate someone to check measurement tools to make sure the tools are properly calibrated.
* Compare actual project and product results to the project's quality standards.
How does quality control differ from quality assurance, and how are they similar
The difference between quality control and quality assurance is that quality assurance focuses on developing and implementing quality-related activities, whereas quality control focuses on ensuring that the quality-related activities achieve their desired effect.

Quality control and quality assurance are similar in that both components use a project's quality management plan and operational definitions to evaluate whether or not a project and product are achieving the desired levels of quality. The quality control and quality assurance components are also similar in that both result in quality improvement.
What is quality control, and why is it important
Quality control measures are used throughout a project's life cycle to make sure work is done properly and that actual project results match the expectations outlined in the project's quality management plan. During quality control, both the processes used to complete the project, as well as the end product, are examined to make sure they meet quality standards.

The purpose of quality control is to ensure that a finished product has certain quality characteristics and that unacceptable product traits are corrected.

It is important to understand that quality control is not only a component of the <u>quality management</u> variable, but that it is also part of the fourth step of the project management process -- project control.
What are some areas in which cost can be saved
When a problem drives up project costs, then it becomes necessary to identify areas in which cost can be reduced. The following areas of a project can be altered to reduce cost:

* Budget reapportionment
* Product functionality
* Inventory

<b>* Budget reapportionment</b>

Research and Development, Acquisition Cost, and Operation and Maintenance Cost are among the areas of a project's budget that can be adjusted to lower overall cost. Traditionally, the Research and Development phase is 10% of the total cost of a project, while the Acquisition phase is 30%, and the Operation and Maintenance phase is 60%. Shifting these percentages can lower the overall cost of a project.

Suppose a project is expected to cost $200 million. According to the traditional percentages, Research and Development gets $20 million, Acquisition gets $60 million, and Operation and Maintenance gets $120 million. Suppose, too, that increasing the Research and Development amount by 10% causes a 1% increase in the Acquisition Cost and a 15% decrease in the Operation and Maintenance Cost.

Based on the new percentages, Research and Development gets $22 million, Acquisition gets $60.6 million, and Operation and Maintenance gets $102 million. Shifting the percentages saves a total of $15.4 million.

<b>* Product functionality</b>

Testing a new product's functionality and correcting any errors before releasing it to customers can reduce external failure costs. However, it is important to compare the testing costs to the possible external failure costs, since testing costs are not always lower than external failure costs.

<b>* Inventory</b>

Adjusting inventory can cut back on project costs. For example, just-in-time inventory keeps on-hand only the amount of resources immediately necessary for part of a project. Just-in-time inventory lowers cost by eliminating such things as inventory surpluses and the need for inventory storage space. This practice is also called ''zero inventory.''

Just-in-time inventory becomes risky when suppliers are unable to provide resources on-demand. If suppliers are under-stocked, finding resources elsewhere takes time and can be expensive.
What are some effects of non-quality work
The term non-quality applies to work that is done incorrectly, as well as to work that is done correctly but is the wrong kind of work.

Suppose a machine produces 15,000 parts per hour at a cost of $0.15 per part. A sizing error occurs, and the machine produces 45,000 of the wrong-sized parts before the error is caught. That sizing error wastes $6,750. Even if the parts are free of defects, the work to produce them is non-quality work because of the sizing error.

Since additional time and resources are required to correct problems associated with non-quality work, the cost of quality increases, which in turn adds to the overall cost of project completion. Other effects of non-quality work include schedule delays, damage to a company's reputation, and increased demands on customer service departments.
What are five major categories related to the cost of quality?
It is important for project managers and team members to understand the costs associated with quality improvement. There are five major categories related to the cost of quality:

* <u>Prevention</u>. Prevention costs result from eliminating errors through project planning and execution.
* <u>Appraisal</u>. Appraisal costs result from examining activities for execution errors.
* <u>Internal failure</u>. Internal failure costs result from correcting a defect that is realized before the product is distributed to customers.
* <u>External failure</u>. External failure costs result from correcting a defect after the product has been distributed to customers.
* <u>Equipment</u>. Equipment costs result from acquiring the means necessary to prevent errors and to evaluate activity execution.
What is cost of quality, and how is it classified for a project?
Cost of quality refers to the amount of money and resources used to make sure a project's quality standards are met. There are two basic classifications for the cost of quality:

* <u>Cost of conformance</u>. Conformance is the extent to which products meet quality standards. The cost of conformance is the total amount of money and resources used to make sure goods and services meet a project's quality standards. Conformance costs include such things as project planning, error-prevention activities, maintenance, training programs, product testing, and quality audits.
* <u>Cost of nonconformance</u>. Nonconformance is the extent to which products deviate from quality standards. The cost of nonconformance is the total amount of money and resources used to correct problems so that goods and services meet a project's quality standards. Nonconformance costs include such things as rework, recalled products, and responding to customer complaints.
What information should a project audit report contain
Project quality audit reports are useful tools for project managers. Audit reports contain information such as a project's status at the time of the audit and the status of activities that are most influential to a project's success.

Audit reports often analyze the level of risk, such as likelihood of a project's failure. Knowing the level of risk gives project managers and stakeholders the opportunity to consider ways to lower the risk.

In addition, audit reports should explain any assumptions made and restrictions encountered during the audit. If an auditor made a faulty assumption during an audit, that assumption can taint the accuracy and validity of the information in the audit report.
When are project audits conducted
Project audits are conducted before, during, or after a project. The scope of an audit depends on the time at which it is performed. For example:

* Audits done before a project begins concentrate on the technical aspects of a project, such as product design. Auditing a product's design before production begins can be an important first step toward quality improvement.
* Audits conducted during a project may focus on how closely a project is progressing according to the schedule and budget provisions. If a project is behind schedule, an audit can help find the causes.
* Audits conducted after project completion may focus on such things as whether a product meets legal requirements, or the project's actual expenses as compared to budgeted expenses.
What are some of the project auditor's responsibilities
Whether an audit is conducted by a single person or by an audit team, there are certain responsibilities that must be acknowledged throughout the audit. These responsibilities include:

* Objective analysis of project data, which includes avoiding the biases of interested parties and maintaining political and technical independence.
* Ethical treatment of project data, which means respecting the confidentiality of all information gathered during an audit.
* Admitting to any limits of technical knowledge that may affect the results of the audit.
* Honest representation of audit results.

Project managers and team members need to know an auditor's responsibilities so they can avoid interfering with the auditor's work. In addition, project managers and team members should leave auditors out of disputes, should not ask auditors to reveal confidential information, and should allow auditors access to all information pertinent to the audit.
What conditions must be met in order to conduct a credible audit?</
In order for a quality audit to be credible, it is important that the person or group conducting the audit is independent from the organization whose project is the focus of the audit. Auditors should never be involved in conflicts that occur within a project's parent organization since involvement in such conflicts could jeopardize the credibility of the audit.

A quality audit cannot be credible unless the person or group conducting the audit is qualified to analyze project data. Qualifications vary depending on the project and the level of detail necessary for the audit.

In addition, the person or group conducting the audit must have open access to all project data and members of a project team. Without access to the proper information and personnel, the audit cannot be conducted effectively.
What are project quality audits
Project quality audits are evaluations of a project's quality management system. One purpose of project quality audits is to identify areas that need improvement. It is important to conduct project quality audits because they highlight incidents of deviation from a project's quality objectives.

Project quality audits can be planned or spontaneous, announced or unannounced, and should be conducted by an independent person or group.
What is quality assurance, and why is it important
Quality assurance refers to project activities that are planned and executed to ensure quality products and services.

The goal of quality assurance is the improved quality of a project's processes and improved quality of end products. Any problems encountered during the execution of quality assurance activities must be corrected. Correcting problems can lead to greater efficiency, decreased cost of production, and a higher-quality product.

Quality assurance is important not only because it leads to the correction of problems, but also because it gives project stakeholders and customers confidence that a finished product will be free of defects.

It is important to understand that quality improvement is not only a component of the <u>quality management</u> variable, but that it is also part of the third step of the project management process -- project execution.
How are checklists useful to quality management
Project quality planning should result in a checklist. Checklists are used to verify that a set of quality control steps has been completed. There are two general kinds of checklists. One kind consists of a series of questions, such as, ''Has Activity X been completed?'' Another kind is an inventory list comprised of such things as activities or expected product characteristics.
What are operational definitions
Operational definitions are highly detailed explanations of individual parts of a project, such as activity start and finish dates. Each operational definition states how an individual part is measured according to a project's quality standards. Another name for operational definitions is ''metrics.''
What is grade
Grade refers to the differing levels of product functionality. A high grade of product functionality does not mean that the product is high quality. Similarly, a low grade of product functionality does not mean that the product is low quality.

For example, there are different classes, or grades, of cars. A car from a lower class does not have automatic locks or windows, air conditioning, and cruise control, whereas a car from a higher class has all of those features. If both classes of car function within given specifications or quality standards, then the fundamental difference is in the grade, not the quality.
What procurement issues impact quality
Procurement, the purchase of goods and services needed for a project, is an important element of quality planning. The people in charge of procurement must work closely with the project manager and product design engineers to avoid purchasing incorrect materials or enlisting the wrong kinds of services.
Some procurement issues that impact quality are:
1. The price of materials, with regard to the grade of materials.
2. The amount of time needed for delivery of materials and when the materials are needed.
3. The timely delivery of project materials and tracking materials that are not delivered on time.
4. The contractor's qualifications to complete the kind of work needed for a project.
5. The contractor's bid must be accurate to avoid conflict over contract specifications.
6. The contractor's quality policy, which should be carefully examined for compatibility with a project's quality policy.
What are some techniques used during quality planning
During quality planning, project managers use different techniques to verify whether or not certain production processes or materials conform to a project's quality standards. Some techniques used during quality planning include:

* <u>Benefit/cost analysis</u> weighs benefits versus cost to make sure a project meets quality requirements without going over the project's budget.
* <u>Benchmarking</u> compares planned project activities to past project activities. This technique allows the project manager to determine what adjustments should be made to the project before work begins.
* <u>Flowcharting</u> uses flowcharts, such as cause and effect diagrams, to illustrate relationships among each part of a project.
* <u>Design of experiments</u> distinguishes which parts of a project have the greatest impact on a project's final product.
What are some characteristics of a good quality management plan?
A well-developed quality management plan directs a project according to customer expectations and clearly states how a project team will carry out quality policy. In addition, a good quality management plan identifies suppliers at the beginning of a project, so materials can be ordered far enough in advance of when they are needed.

Having a solid quality management plan is important because the plan can be used to verify that the quality management process for a project is functioning correctly. A good quality management plan can also be used to confirm that a project's quality objectives are met.
What are some techniques used during quality planning
During quality planning, project managers use different techniques to verify whether or not certain production processes or materials conform to a project's quality standards. Some techniques used during quality planning include:

* <u>Benefit/cost analysis</u> weighs benefits versus cost to make sure a project meets quality requirements without going over the project's budget.
* <u>Benchmarking</u> compares planned project activities to past project activities. This technique allows the project manager to determine what adjustments should be made to the project before work begins.
* <u>Flowcharting</u> uses flowcharts, such as cause and effect diagrams, to illustrate relationships among each part of a project.
* <u>Design of experiments</u> distinguishes which parts of a project have the greatest impact on a project's final product.
What quality-related activities are sometimes overlooked during a project
Quality management should be a priority throughout an entire project. However, project managers deal with numerous distractions that shift attention away from some important quality-related activities. As a project manager, it is essential that you carry out and/or verify the completion of the following quality-related activities:

1. Making sure product design standards are compatible with customer expectations.
2. Listing the materials needed to manufacture a product avoids using inferior materials.
3. Maintaining the project team's focus on quality standards.
4. Checking for over-design, which uses higher-grade materials, thus increasing production cost.
5. Checking for under-design, which cuts corners to keep a project on schedule.
6. Clearly detailing a product's design specifications lessens the risks of miscommunication.
What planning activities that occur during the conceptual phase influence project quality
The greatest influences on the quality of a project and product are made during the conceptual phase. The conceptual phase of project planning includes such things as setting project start and finish dates, signing contracts with suppliers, and designing the end product of a project. During the conceptual phase, performance of the following planning activities impacts project quality:

1. Communicate with customers to get feedback from them, so the end product of a project will successfully meet their needs and expectations.
2. Define the project scope so the project manager knows what must be done to meet customers' expectations.
3. Define the project objectives so everyone involved in the project knows the expected outcomes.
4. Develop a practical schedule, one that is based on the amounts of time, money, and resources available for project completion
How should quality planning be included in the initial planning of a project
Planning quality into a project involves anticipating and preparing for positive and negative situations that may arise during a project. The following items should be included in initial project planning:

* <u>Network planning</u> arranges project activities in a logical order of completion and diagrams the activities for visual reference.
* <u>Time analysis</u> allows comparison between estimated activity duration and actual activity duration.
* <u>Resource analysis</u> allows comparison between the quantity of resources allocated for each project activity and the actual quantity of resources used for each activity.
* <u>Cost analysis</u> enables comparison of money allotted to complete each project activity and the actual amount of money used for completion of each activity.
* <u>Multiple schedules</u> are contingency plans in case something goes wrong with the master schedule.
* <u>Progress reports</u> communicate actual project progress as compared to planned progress, as well as identify any variations in a project schedule or resources.
* <u>Key events</u> signify project status to customers and are used as control points for project managers.
* <u>Deadlines and activity logic</u> account for the earliest and latest possible start dates for all project activities, as well as for activity relationships.
What are some key criteria for project managers to consider during quality planning
During quality planning, it is important for project managers to consider the following key criteria:

* <u>Customers and their expectations</u>. Identifying customers and developing a quality plan based on their expectations helps ensure that the end products of a project will satisfy their expectations.
* <u>Relationships among different parts of a project</u>. Envisioning project relationships enables project managers to plan a project logically.
* <u>The effects of change</u>. Project managers must be able to accurately calculate the effect changes have on a project.
* <u>Resource use</u>. Project managers must determine how best to use the resources allotted for a project.
* <u>Communication</u>. Communicating effectively with project team members can ensure that project activities are completed as scheduled and according to quality standards.
What is a quality policy
A quality policy is a company's statement of how it will produce quality products and what it will do if products are defective. Most often, upper management dictates a quality policy to be implemented by project managers and team members.

Not all quality policies are formal documents. If a company does not have a formal quality policy, then project managers and team members should draft one before starting a new project. It is important that a project's stakeholders know the terms of the quality policy before a project begins.
What is quality planning
Quality planning involves defining the quality standards for a project and deciding how to achieve those standards. The scope statement is used as a point of reference during quality planning because it outlines not only the end results of a project, but also the project objectives, which should be in-line with stakeholder expectations.

An important part of quality planning involves making sure quality is part of a product's design from the beginning of a project, since quality cannot be infused into a product through inspection.

It is important to understand that quality planning is not only a component of the <u>quality management</u> variable, but that it is also part of the second step of the project management process -- project planning.
What are two awards given for excellent quality management practices
Awards for quality management are incentives for companies to excel at providing quality products and services. Awards, sometimes created by government agencies, encourage companies to implement strict quality standards. Two awards for exceptional quality management practices include:

* <u>The Malcolm Baldrige National Quality Award</u>, which was established with the Malcolm Baldrige National Quality Improvement Act in 1987. This Act promotes company knowledge of quality management practices, and the Award recognizes quality-related accomplishments. Criteria for this award include leadership, planning strategies, resource management, and customer satisfaction.
* <u>The Deming Award</u>, which was established by the Union of Japanese Scientists and Engineers. The Union of Japanese Scientists and Engineers bestows the Deming Award based on such things as a company's quality and management policies, organization, policy implementation, and problem-solving capabilities.

Companies can use the standards for the Malcolm Baldrige and Deming Awards to develop organizational and quality policies or to measure the performance of their current quality policies.
<b>Unit Outline</b>
What is total quality management
through which a company continuously tries to improve the quality of workmanship and products. The primary aim of total quality management is to organize project planning, product design, and program implementation such that resulting products and services are available to customers at a reasonable cost.
What is rework
Rework is the corrective action taken to make a defective product conform to a project's quality standards. Reworking a product takes more time and uses more resources than if the product is made correctly the first time. The use of additional time and resources increases the cost of quality, which is the total amount of money and work used to make quality products.