CH 7

1. CH 7 Project Quality and Communications Planning

2. Objectives • Understand the work done by several noted quality experts and their impact on project management practices • Understand the definition of quality and the different costs of quality • Know how to build a quality management plan • Understand the importance of possessing excellent communication skills • Understand the communication process • Know how to build a communication management plan

4. Poor Quality Examples • The Sustainable Computing Consortium, a collaboration of major corporate IT users, university researchers and government agencies, estimated that flawed (or buggy) software cost organizations $175 billion worldwide in 2001 • In the U.S. software bugs cost organizations nearly $60 billion per year, according to the Commerce Department’s National Institute of Standards and Technology (NIST). According to NIST, one-third of these costs could be eliminated with improved testing methods especially early in the development cycle

5. Poor Quality Examples • Faulty baggage-handling software at the then new Denver International Airport delayed the opening of the airport from October 1993 until February 1995 at an estimated cost of $1,000,000 a day • Therac-25 was a radiation therapy machine produced by Atomic Energy of Canada Limited and CGR MeV of France. It was involved with at least six known accidents between 1985 and 1987, in which patients were given massive overdoses of radiation. At least five patients died of the overdoses due to a software bug

6. Poor Quality Examples • The Pentium FDIV bug was a bug in Intel’s original Pentium floating point unit. Certain floating point division operations performed with these processors would produce incorrect results. Intel eventually had to recall all of the initial chips and replace them once the flaw was found and fixed

7. Poor Quality Examples • The Northeast U.S. blackout of 2003 was a massive power outage that occurred throughout parts of the Northeastern and Midwestern United States and Ontario Canada. It affected an estimated 10 million people in Canada and 40 million people in the U.S. Outage-related financial losses were estimated at $6 billion. The initial cause of the outage was not due to a computer flaw but had the software been operating correctly the outage would have been greatly reduced

8. What Is Project Quality Management? • International Organization for Standardization (ISO) definition: the totality of features and characteristics of a product or service that bears on its ability to satisfy stated or implied needs • The American Society for Quality and the PMBOK define quality as “the degree to which a set of inherent characteristics fulfill requirements.” • Text: the degree to which the product satisfies both stated and implied requirements

9. Triple Constraint Plus Quality • Can be inflated for more quality or deflated for less quality.

10. ISO Quality Management Principles • Customer Focus • Provide Leadership • Involvement of People • Use a Process Approach

11. ISO Quality Management Principles • Take a Systems Approach • Encourage Continual • Factual Approach to Decision Making • Mutually beneficial supplier relationships

12. Quality Management Planning Process • Quality planning: identifying which quality standards are relevant to the project and organization and determining the activities necessary to meet the established standards in order to deliver the product fit for customer use

13. Quality Management Terms • Cost of quality – total costs incurred by an organization to prevent a faulty product or development of a system that does not meet system requirements. Costs include: assessments, rework, lost time, injury, and death • Prevention costs – up-front costs associated with satisfying customer requirements (design reviews, all forms of system testing, training, surveys, etc.) • Appraisal costs – costs associated with assuring that all requirements have been met (customer acceptance tests, demonstrations, lab tests, etc.)

14. Quality Management Terms • Cost of non-conformance – total costs incurred by an organization because the product does not meet user requirements for example, rework or poor user productivity • Internal failure costs – costs associated with system defects before a system is fully deployed (scrap and rework) • External failure costs – costs associated with system defects after fully deployed (scrap, rework, returns, market share, lawsuits, etc.) • Rework – due to poor quality the same task must be repeated to correct an identified error • Fitness for use – the product can be used as it was originally intended

15. Quality Management Terms • Conformance to requirements/specifications – the product conforms to the written specifications • Reliability – the probability of the product performing as specified without failure over a set period of time  • Maintainability – the time and expense needed to restore the product to an acceptable level of performance after the product has failed or began a trend toward failure

16. Quality Research Review • Walter A. Shewhart • W. Edwards Deming • Joseph Juran • Philip Crosby • Kaoru Ishikawa • Genichi Taguchi

17. Walter A. Shewhart • In 1924, Shewhart created the “control chart” to better understand variation and to distinguish between “assignable-cause” and “chance-cause” • In order to aid a manager in making scientific, efficient, economical decisions, he developed Statistical Process Control methods • He also believed that quality must be a continuous process and developed what is referred to as the PDSA cycle: Plan, Do, Study and Act which was later extended and made famous by W. Edwards Deming

18. W. Edwards Deming • Deming estimated that as much as 85 percent of all quality problems could be corrected by changes in the process and only 15 percent could be controlled by the workers on the line

19. W. Edwards Deming 14 Points • Create constancy of purpose toward improvement of products and services, the aim to become competitive, and to stay in business, and to provide jobs • Adopt the new philosophy of cooperation (win-win) from management on down to all employees, customers, and suppliers • Cease dependence on inspection to achieve quality • End the practice of awarding business on the basis of price tag alone. Instead minimize total cost over the long run • Improve constantly and forever every process for planning, production, and service. This will improve quality and productivity and thus, continually reduce costs

20. W. Edwards Deming 14 Points • Institute training on the job • Adopt and institute leadership for the management of people, recognizing their different abilities, capabilities, and aspirations • Drive out fear and build trust so that everyone may work effectively • Break down barriers between staff areas (departments). Abolish competition and build a win-win system of cooperation • Eliminate slogans, exhortations, and targets for the work force asking for zero defects or new levels of productivity

21. W. Edwards Deming 14 Points • Eliminate numerical quotas for the work force and numerical goals for management and substitute leadership • Remove barriers that rob people of workmanship. Eliminate the annual rating or merit system and create pride in the job being done • Institute a vigorous program of education and self-improvement for everyone in the organization • Put everybody in the company to work to accomplish the transformation

22. Joseph Juran • Often credited with adding the human element to quality control as well as statistical methods • In 1951 he published the Quality Control Handbook, which put forth the view that quality should be viewed more from the customer’s perspective “fitness for use” as opposed to the manufacturer’s adherence to specifications

23. Joseph Juran • Dr. Juran has also been credited with the Pareto Principle or 80/20 rule. As a general rule, a small amount of issues cause the most problems on a project. For example, 80% of the rework time spent on the product was caused by 20% of the requirements. More on this principle will be presented in the quality control section of chapter 12

24. Juran 10 Steps • Build awareness of the need and opportunity for improvement • Set goals for improvement • Organize to reach the goals (establish a quality council, identify problems, select projects, appoint teams, designate facilitators). • Provide training • Carry out projects to solve problems

25. Juran 10 Steps • Report progress • Give recognition • Communicate results • Keep score • Maintain momentum by making annual improvement part of the regular systems and processes of the company

26. Philip Crosby • Best known for the phrase “zero defects” or “doing it right the first time” • He spent most of his career educating managers that preventing defects was cheaper than fixing them later • He believed that quality is free because the cost of conformance should be counted as the normal cost of doing business and that the cost for nonconformance is the only cost of quality

27. Philip Crosby • Conformance to requirements • Prevention over inspection and rework • The standard should be “zero defects.” • Measured by the cost of nonconformance

28. Kaoru Ishikawa • In this work he created quality circles and development of the Ishikawa Diagram or commonly referred to as a Fishbone diagram because of its resemblance to the skeleton of a fish • The Fishbone diagram is a “cause-and-effect” tool to aid workers in discovering the true root cause for quality issues

29. Fishbone diagram

30. Genichi Taguchi • Quality should be designed into the product and not inspected into it • Quality is best achieved by minimizing the deviation from a defined target reducing the affect of uncontrollable environmental factors • Cost of quality should be measured as a function of deviation from the standard and collected system-wide (scrap, rework, inspection, returns, warranty service calls, product replacement)

31. Recent Quality Initiatives • Total Quality Management (TQM) • ISO 9000 provides minimum requirements for an organization to meet their quality certification standards • Balanced Scorecard • Six Sigma • Maturity Models (excellent way to improve quality) • CMMI (Capability Maturity Model Integrated) • OPM3 (Organizational Project Mgmt. Maturity Model)

32. ISO 9000 • Based in Geneva Switzerland, consortium of approx. 100 world’s industrial nations. The American National Standards Institute (ANSI) represents the U. S. • Quality system standard applicable to any product, service, or process anywhere in the world

33. ISO 9000 Series • ISO:9000 – defines the key terms and acts as a road map for the other standards • ISO:9001 – defines the model for a quality system when a contractor demonstrates the capability to design, produce, and install products or services • ISO:9002 – quality system model for quality assurance in production and installation • ISO:9003 – quality system model for quality assurance in final inspection and testing • ISO:9004 – quality management guidelines

34. ISO 9000 Series • ISO 9001-2000 – update, combines 9001, 9002, 9003 • Industry Specific: • TickIT – UK board of Trade version of ISO 9001-2000 for IT • AS9000 – Aerospace Basic Quality System Standard • PS9000 – Pharmaceutical Packaging Materials • ISO/TS 16949:2002 - Major automotive manufacturers (GM, Ford, Chrysler) • TL 9000 – Telecom Quality management and Measurement • ISO 13485:2003 – Medical Industry’s equivalent

35. ISO 9000 Issues • Can be a paperwork nightmare when starting from scratch • Does not guarantee that an organization will produce quality products or services. It only confirms that the appropriate system/process is in place. • Time consuming and cost money, ROI doesn’t happen right away

36. TQM • Total Quality describes the culture, attitude and organization of a company that strives to provide customers (internal and external) with products and services that satisfy their needs • it is a combination of quality tools and management specific tools to achieve increased business while reducing costs and waste

37. TQM • Employee empowerment – training, commitment, full participation with reward and recognition programs tied to quality performance • Management Involvement – leadership, commitment, involvement, lead by example, support workers • Decisions based on facts – Statistical Process Control, rational vs. emotional decision making, accurate and timely data collection • Continuous Improvement – eliminate waste and non-value added activities, quality improvement is never complete, data is continuously collected, continually refine standards

38. TQM • Customer-driven – customer comes first, continued assessment of satisfaction and needs, strive to meet and exceed customer requirements • Culture – establish an open, cooperative, trusting, communicative environment where information can be easily shared up the management chain and back down

39. Balanced Scorecard • An approach for managing and measuring business performance which takes into consideration factors beyond the typical financial metrics • The key new element of this approach is focusing on the human issues that drive financial outcomes to force organizations to focus on the future

40. Balanced Scorecard • The balanced scorecard suggests viewing organizational activity from four perspectives: • Learning and growth – training, continuous improvement, investment • Business process – reduce non-value added activities, number of opportunities and success rates • Customer perspective – customer satisfaction and needs, delivery performance • Financial – ROI, shareholder value, Return on equity, Cash flow

41. Balanced Scorecard • Organizations should list each metric, establish goals and objectives for each, measure results, and establish initiatives to adjust results if issues are found. (sound familiar!) • The key issue with implementing a balanced scorecard is to make sure you pick the right metrics

42. Six Sigma • The main purpose of the Six Sigma quality methodology is to reduce variation thus reducing the number of product or service defects • uses data and statistical analysis to measure and improve a company's operational performance by identifying and eliminating defects • The Greek letter Sigma (σ) is used in the field of statistics to represent the standard deviation to measure variability from the mean or average

43. Six Sigma • A small standard deviation means that data cluster closely around the middle (mean) and there is little variability among the data • A normal distribution is a bell-shaped curve that is symmetrical about the mean • Using a normal curve, if a process is at six sigma, there would be no more than two defects per billion items produced. A defect is any instance where the product or service fails to meet customer requirements

44. Six Sigma

45. Six Sigma • Six Sigma for IT projects is calculated based on the number of defects per million opportunities • A simple invoice produced from the accounting system’s accounts receivable module may have 50 opportunities for defects in just one document • to reach six sigma you would have no more than 3.4 defects per million opportunities on your IT projects

46. Six Sigma

47. Six Sigma Process • referred to as DMAIC (dee-may-ic) • Define – determine customer quality goals • Measure – setup relevant metrics based on customer goals and collect data • Analyze – evaluate data results for trends, patterns, relationships. • Improve – make changes based on facts • Control – don’t slip backwards once targets are reached but set up control methods to maintain performance

48. Capability Maturity Model Integrated (CMMI) • Federally funded research and development center sponsored by the U.S. Department of Defense through the Office of the Under Secretary of Defense for Acquisition and Technology • The SEI contract was competitively awarded to Carnegie Mellon University in December 1984 • The U.S. Department of Defense established SEI to advance the practice of software engineering because quality software is a critical component of U.S. defense systems

49. CMMI • The quality of a system is highly influenced by the quality of the process used to acquire, develop, and maintain it • This premise implies a focus on processes as well as on products • This is a long-established premise in manufacturing (and is based on TQM principles as taught by Shewhart, Juran, Deming, and Humphrey) • Belief in this premise is visible worldwide in quality movements in manufacturing and service industries (e.g., ISO standards)

50. Maturity Model Overview • A maturity model is a structured collection of elements that describe characteristics of effective processes. • A maturity model provides • a place to start • the benefit of a community’s prior experiences • a common language and a shared vision • a framework for prioritizing actions • a way to define what improvement means for your organization • A maturity model can be used as a benchmark for assessing different organizations for equivalent comparison