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7 Cards in this Set

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Cost-benefit Analysis

T&T of Plan Quality. This analysis for each quality compares the cost of the quality step to the expected benefit (less rework, higher productivity, lower costs, increased stakeholder satisfaction, increased profitability)

Cost of Quality

T&T of Plan Quality. Includes all costs incurred over the life of the product by investment in preventing non-conformance to requirements (i.e., training), appraising the product for conformance to requirements (i.e., testing), and failing to meet requirements (rework). Failure costs are categorized into internal (found by project) and external (found by customer).

Cost of Conformance

Prevention: (build a quality product) training, document processes, equipment, time to do it right


Appraisal Costs: (assess the quality) testing, destructive testing loss, inspections

Cost of Non-conformance

Internal Failure Costs: (found by project) rework, scrap


External Failure Costs: (found by customer) liabilities, warranty work, lost business

Seven Basic Quality Tools

A.K.A. 7QC tools. They're used in the context of the PDCA cycle to solve quality problems.


1) Cause and Effect Diagrams - fishbone, Ishikawa - trace problem's source back to its root cause by asking "why" until root cause is identified or exhausted - links unwanted effects seen as special variation to assignable Cause for corrective action


2) Flowcharts - process maps - shows sequence of steps - activities, decision points, branching loops - SIPOC model - useful in understanding cost of quality in a process - estimate expected monetary value for conformance/non-conformance work


3) checksheet - tally sheets - facilitates collection of useful data about potential quality problem - useful for gathering data while performing inspections to identify defects - data about frequencies collected are used in Pareto diagram


4) Pareto diagram - special vertical bar chart used to identify vital few sources responsible for causing most of a problem - higher frequencies are first and then it descends - organized into categories that measure frequencies or consequences


5) Histograms - special form of bar chart used to describe central tendency, dispersion and shape of statistical distribution - unlike control chart, it doesn't factor in the influence of time on variation of distribution


6) Control Charts - to see whether or not process is stable or has predictable performance - control limits are set +/- 3 for repetitive processes in manufacturing- are also used to monitor cost and schedule variances, volume, frequency of scope changes to determine if project mgmt processes are out of control


7) Scatter Diagrams - correlation charts - seek to explain change in dependent variable in relation to independent variable - can have positive, inverse/negative, or no correlation between the two (zero)

Benchmarking

T&T of Plan Quality. Comparing actual or planned project practices to those of comparable projects to identify best practices, generate ideas for improvement, and provide basis for measuring performance. Can be within org or outside of it or within same application area. Allows for analogies from projects in different application area to be made.

Design of Experiments (DOE)

T&T on Plan Quality. Statistical method for identifying which factors may influence specific variables of a product or process under development or in production. May be used to determine number and type of tests and their impact on cost of quality.