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COST of Poor Quality in Proj Mgmt. Dr Ali Sajid Director Inst of Bus & Mgmt UET Lahore alisajid61@yahoo.com 0300 856 1147. Building HR in Proj. "It is only as we develop others that we permanently succeed.".
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COST of Poor Qualityin Proj Mgmt Dr Ali Sajid Director Inst of Bus & Mgmt UET Lahore alisajid61@yahoo.com 0300 856 1147
Building HR in Proj "It is only as we develop others that we permanently succeed."
Start viewing the probable as possible. You'll be surprised at what you can accomplish.
The best & most beautiful things in the world cannot be seen or even touched. They must be felt with the heart.
Self-actualizedpeople are independent of the good opinion of others.- Wayne Dyer
The greatest Discovery of our generation is that a human being can alter his life by altering his attitudes.- William James
Nature present us with an infinite variety of Attitudes - from gloomy mist to glorious sunshine. Our own moods, whether gloomy or bright, radiate to those around us.
We may affirm absolutely that nothing great in the world has ever been accomplished without passion.- George Hegel
Two Parts of Empathy: Skill (tip of iceberg) & Attitude (mass of the iceberg).
Eighty percent of success is related to ATTITUDE rather than competency.
Attitude Your attitude determines your altitude.
Pride is a personal commitment; it is an attitude which separates excellence from mediocrity.
Selflessness • "The world is divided into people who do things, and people who get the credit. Try, if you can, to belong to the first class. There's far less competition." • (Dwight Morrow, 1935.)
The difference between a successful person and others is not a “Lack of Strength”, not a “Lack of Knowledge”, but rather in a “Lack of Will”.
We tend to judge others by their behaviors and ourselves by our intentions.- Stephen Covey
The mold of a man's fortune is in his own hands.- Francis Bacon
Passion • We may affirm absolutely that nothing great in the world has been accomplished without passion.- Georg Wilhelm Friedrich Hegel
You can have a positive attitude without talent and you can have talent without a positive attitude, but things really start happening when you have a positive attitude combined with talent.
To be conscious that you are ignorant is a great step to knowledge.- Benjamin Disraeli
The difference between a mountain and a molehill is your perspective.- Al Neuharth
Being broke is a temporary situation. Being poor is a state of mind.- Mike Todd • Hastey kay fareeb main mut aa jouyio asad • Alam Tumam halqa dam I Khal haain
How to Get Best Ideas • "The best way to have a good idea is to have “lots of ideas.“ • (Linus Pauling.)
A tree that reaches past your embrace grows from one small seed. A structure over nine stories high begins with a handful of earth. A journey of a thousand miles starts with a single step.
HR Development • "Behind an able man there are always other able men.“ • (Chinese Proverb.) • "Understanding human needs is half the job of meeting them." (Adlai Stevenson, 1900-1965.)
Exceeding customer expectations Creating Customer Value Not just doing it well but learning to do it better Employee Empowerment Quality as an Organizational Goal
Level III Quality System: Continuous improvement emphasis Level II Quality System: Measures implemented to track effectiveness Level I Quality System: Procedures established Quality Improvement Evolution Effectiveness of Quality System Level 0 Quality System: Ad hoc processes Phases/ Time
Characteristics of Product Quality Objective Performance Features Reliability Conformance Durability Serviceability Variety Subjective Aesthetics Perceived quality Quality
What is Quality Management • It is the management of the processes of the performing organization that determine quality policies, objectives, and responsibilities so that project will satisfy the needs for which it is undertaken.
“The purpose of quality management in projects is to ensure that the project outputs are delivered fit-for-purpose. If outputs are not fit-for-purpose, there is every likelihood that planned project outcomes will not be realized, or realized to a much lesser extent.
It can be achieved by developing quality criteria for the outputs themselves and by ensuring that all project management processes are conducted in a quality manner.”
Three Areas to Improve Quality Quality of design in Proj meet the customer’s needs design for manufacturability build quality in Quality of conformance inProj minimize and control process variation to satisfy the design specifications every time Quality of service in Proj The customer must come first
What is Cost of Quality?????? “Quality is measured by the cost of quality which is the expense of of non conformance– the cost of doing things wrong.” Vs
COST OF QUALITY DEFINED “Quality Costs - Costs incurred because poor quality MAY or DOES NOT exist.” “Cost of not meeting customer’s requirements- cost of doing things wrong” “All activities carried out that are not needed directly to support departmental (quality) objectives - cost of quality.”
QUALITY COST CONCEPTS Represent difference b/w actual cost of product/ service & what reduced cost would be if there were no possibility of substandard service, failure of products, or defects in their manufacture.”
Why Cost of Poor Quality? Speaks in the language of management, Rupees Shows how profit is affected by quality Can prioritize quality improvement actions Serves as impetus for actions In US about a third of what we do consists of redoing work previously “done”. (Juran)
“Quality is Free” For average company, Cost of quality is about 20-25% of total sales Cost of prevention is a fraction of “Cost of Fixing Mistakes” after they made Investments in prevention can “Drastically reduce Total Cost of Quality
Proj Mgr Role in encouraging Investment in Preventive Actions can yield significant savings!
Evolution Of Harrington's Poor-Quality Cost Model In 1950s, Feigenbaum, VP (GE), developed & implemented "Cost of Quality" concept throughout GE. divided Cost Of Quality into following 2 categories & 4 sub categories: Costs of Control Prevention costs Appraisal costs Costs of failure of control Internal defect costs External defect costs
Role of IBM In 1960s, IBM undertook an effort to study its own “Quality Costs” & tailored concept for its own use. While Feigenbaum's term “Quality costs" is technically accurate, it's easy for the uninitiated to jump to the conclusion that better quality products cost more to produce.