Chapter 1

Introduction to Project Quality

Management

1
 Contents

• Definition of Quality • Benefits of Quality

• What is project quality • Key Processes of Project
management? Quality Management
• Foundation of Quality – Quality Plan
– Quality Assurance
Management
– Quality Control
– Customer Satisfaction
– Quality Improvements
– Prevention over
Inspection
• Features of Quality
– Continuous Management
Improvement • Total Quality
• Cost of Quality Management (TQM)
– Prevention • Summary
– Appraisal • Exercises
 Definition of Quality

 Some central themes may be common to all to

define quality could be:
1. Products: We define quality by our view of the features
or attributes of some particular product. This view can
lead us with confidence to the destructive “I’ll know it
when I see it” definition of quality.

2. Defects: We expect quality products to be free of

defects. Eg. No cracks in a Building

3. Processes: What you do may keep a smile on your

customer’s face, but how you do it will keep you on
schedule and on budget — and that may make the
customer’s smile even brighter and longer lasting. 3
4. Customers — People who sell what they make may be
very product focused in their view of quality. They seek
to make products that are superior to those of
competitors and always strive to be the best:
“This is the best DVD player on the market
today.”

I,e, quality is defined by customers, their needs,

and their expectations.

5. Systems — A system is a group of things that

work together. At higher level of analysis, quality
may be viewed as arising from things that work
together.
 Products, defects, processes, and customers are
all part of a system that generates quality, as are
suppliers, policies, organizations, and perhaps
some other things unique to a specific situation. 4
 `
Definition of Quality?: But what does "quality" really mean?

 Quality is defined as:

1. A characteristic or attribute
of something: a property.
2. The natural or essential
character of something.
3. Excellence, superiority.
4. A degree or grade of
excellence. according to
Webster.
5
 Definitions of Quality
• Quality is a measure of “fitness for use”: ensuring a
product can be used as it was intended” (Joseph M.
Juran)
• Quality is “conformance to requirements”:
meeting written specifications” (Philip B. Crosby)
• Quality is “meeting or exceeding customer
expectations.” (W. E. Deming )
• Quality of a product or services is its ability to
satisfy the needs and expectations of the customer

Quality is a Journey, not a Destination

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7
Definitions of Quality

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 Definitions of Quality
 At its most basic level, quality means meeting
the needs of customers. This is also known as "fit
for use."
As per Joseph Juran, Quality has two meanings:
1. Features of products which meet customer
needs and thereby provide customer
satisfaction.”
 Quality improvement related to features
usually costs more.
2. Quality also means “freedom from
deficiencies.” These deficiencies are errors
that require rework (doing something over
again) or result in failures after a product has
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 Definitions of Quality

 The International Organization

for Standardization (ISO) defines
quality as the totality of
characteristics of an entity that
bear on its ability to satisfy
stated or implied needs.

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 Definitions of Quality
 The Project Management Institute (PMI)
defines quality as “the degree to which a set
of inherent characteristics fulfil requirements.
 The set of inherent characteristics may be of a
product, processes, or system.
 The requirements may be those of customers or
stakeholders, an important group that is ignored at
great peril to the success of the project.
 Project managers routinely make trade-offs
among the triple constraint(cost, time and
scope) to meet project objectives. A project
manager should never, never, ever trade off
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 What is project quality management?
• Project quality management is the process through
which quality is managed and maintained throughout
a project.

• It is usually more about ensuring quality consistency

throughout a project.

• The main objective in project quality management is

making sure that the project meets the needs it was
originally created to meet.

• Quality leads to customer satisfaction. 12

 What is project quality management?
• Project quality management encompasses the processes
and activities that are used to figure out and achieve the
quality of the deliverables of a project.

• It is a process which ensure that all the activities related

to project are efficient and effective with respect to the
project objectives and project performance.

• Quality Management in project management includes

creating and following policies and procedures in order
to ensure that a project meets the defined needs it was
intended to meet from the customer’s perspective.
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 Foundation of Quality
Management
• As the project manager, there are three
key quality management concepts that
will help you deliver a high quality project.
1. Customer Satisfaction
2. Prevention over Inspection
3. Continuous Improvement
4. Quality assurance
• Inspection reign is NOT among
the foundation of quality
management.
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 1. Customer Satisfaction
 Customer satisfaction is a key measure of a
project's quality.

 It's important to keep in mind that project quality

management is concerned with both the product of
the project and the management of the project.

 If the customer doesn't feel the product produced

by the project meets their needs or if the way the
project was run didn't meet their expectations,
then the customer is very likely to consider the
project quality as poor, regardless of what the
project manager or team thinks.
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 1. Customer Satisfaction

 As a result, not only is it

important to make sure the
project requirements are
met, managing customer
expectations is also a critical
activity that you need to
handle well for your project
to succeed.
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 2. Prevention over Inspection

• Practical Quality Focus:

“Prevention over Inspection”
• Preventive Quality
Management: Processes assure
quality requirements are met at
testing or inspection.
• Inspection-Based Quality
Management: Products built
without preventive measures,
inspected for flaws after
completion.
• Toyota’s Influence:
Propounded “Prevention over
Inspection”, now a global
philosophy.
• Cost of Rejection: Waiting for end product testing can lead to huge losses if rejected.
• Preventive Measures: Implemented during production to reduce rejections, resulting
in savings, worker motivation, and robust engineering process. 17
 3. Continuous Improvement
 Continuous improvement is a concept that exists in
all of the major quality management approaches such
as Six Sigma and Total Quality Management (TQM).
 It is a key aspect of the last concept, prevention
over inspection.
 Continuous improvement is simply the ongoing effort to
improve your products, services, or processes over
time.
 From a project perspective, this concept can be applied by
analyzing the issues that were encountered during the
project for any lessons learned that you can apply to
future projects.
 The goal is to avoid repeating the same issues in
other projects. 18
 Cost of Quality (COQ)

 The Cost of Quality

(COQ) includes money spent
during the project to avoid
failures and money spent during
and after the project because of
failures.
 COQ=Cost of Conformance +
Cost of Non-conformance
 The cost of preventing mistakes
is usually much less than the
cost of correcting them. 19
Cost of Quality (COQ) :Components

20
 Cost of Quality (COQ)

1) Prevention :
 Prevention: Prevention costs are fundamentally
different from failure costs.

 These costs are related to things that an

organization does rather than to outcomes of a
process.

 Prevention costs begin with planning. One of

the greatest errors a project manager can make is
to leap into performance without sufficient
planning.

 Prevention costs include both quality planning

and audits, and process planning and control.21
 Cost of Quality (COQ)
2) Appraisal:
 Appraisal costs begin with inspection of
incoming supplies.
 The quality of a product is significantly
affected by the quality of materials that go
into its production. Supplier evaluations may
have determined that a particular supplier
will provide what is needed for a project.
 In-process product inspection is a form of appraisal
that ensures production is following the plan.
 Noted deficiencies may be corrected before the
end of the process when scrap or additional-cost
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 Cost of Quality (COQ)

3) Failure:

 Failure costs may result from either internal or external

failure.

 Internal Failures, The major costs associated with

internal failures, those that occur before a product
has been delivered to a customer, are scrap and rework.

 External failures, those that occur after a product has

been delivered to a customer, may generate costs for
repairs in accordance with product warranty
obligations.

 External failure costs include those associated

23
with complaints and complaint handling.
Cost of Quality (COQ)

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 Cost of Quality (COQ)
Different organizations work on different maturity levels of quality. As per the best schools
on Quality (including TQM) there are five levels of “Quality Maturity” with associated cost
of quality.

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 Benefits of Quality

 The benefits of quality in project performance are many.

1. Customer satisfaction A quality project and product will
yield customer satisfaction.
If you meet or exceed requirements and
expectations, customers will not only accept the results
without challenge or ill feeling, but may come back to you
for additional work when the need arises.
2. Reduced costs are another benefit. Quality processes can
reduce waste, improve efficiency, and improve supplies, all
things that mean the project may cost less than planned.
As costs go down, profits may go up or reduced costs may
mean more sales to an existing customer within existing
profit margins.
3. Better products, better project performance, and lower
costs translate directly into increased competitiveness
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 Benefits of Quality

 The essence of a quality

chain reaction described by W.
Edwards Deming:
– improve quality,
– reduce costs,
– improve productivity,
– capture the market,
– stay in business,
– provide more jobs 27
Quality Management for Projects
 Quality management is the process for
ensuring that all project activities
necessary to design, plan and implement a
project are effective and efficient with
respect to the purpose of the objective
and its performance.

 Project quality management (QM) is not a

separate, independent process that
occurs at the end of an activity to
measure the level of quality of the output. 28
 Key Processes of Project Quality
Management
 Project Quality Management has the
following key processes/activities or
steps that you should perform in your
projects.
1. Quality Plan
2. Quality Assurance
3. Quality Control
4. Quality Improvements -

 Managing quality: translating the quality

management plan into executable quality
activities 29
Key Processes of Project Quality
Management

30
Key Processes of Project Quality
Management

31
 Key Processes of Project Quality
Management
1. Plan Quality
 Plan Quality involves identifying the quality requirements
for both the project and the product and documenting how
the project can show it is fulfilling the quality
requirements.

 Quality planning (QP) is identifying which quality standards are

relevant to the project and determining how to satisfy them.

 The outputs of this Plan Quality process include:

• A Quality Management Plan,
• Quality metrics,
• Quality checklists and
• A Process Improvement Plan.
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1. Plan Quality

33
 2. Quality Assurance (QA)
 Quality Assurance is evaluating the overall
project performance on a regular basis to
provide a confidence that the project will
satisfy the relevant quality standards.

 Quality assurance includes all the activities

related to satisfying the relevant quality
standards for a project.

 Quality Assurance is used to verify that the

project processes are sufficient so that if
they are being adhered to the project
deliverables will be of good quality.
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2. Quality Assurance (QA)

35
 2. Quality Assurance (QA)

 The methods used for project

quality assurance include:
• Benchmarking ,
• Process checklists
• Quality(project )audits
• The PCDA(Plan, Do, Check, and Act)
Cycle

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2. Quality Assurance (QA)

37
 3. Quality Control (QC)
 Quality Control is the monitoring of specific project results to determine if
they comply with the relevant quality standards and identifying ways to
eliminate causes of unsatisfactory performance to improve overall quality.

 Quality Control verifies that the product meets the quality

requirements.
 The results will determine if corrective action is needed.
 The main outputs of quality control process are:
 Acceptance decisions
 Rework
 Process adjustments
 Some tools and techniques for QC include:
 Pareto analysis
 Statistical sampling
 Six Sigma
 Quality control charts
 Testing
 Peer Reviews
 The Cause and Effect Diagram 38
3. Quality Control (QC)

39
 4. Quality Improvement
 It is the systematic approach to the
processes of work that looks to remove
waste, loss, rework, frustration, etc. in
order to make the processes of work
more effective, efficient, and
appropriate.

 Here the major issues include:

– Cost of Quality
– Leadership
– Continuous Improvement
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 Features of Quality Management
1. Quality management is a continuous
process that starts and ends with the
project.
– Quality management is not an event -
it is a process, a consistently high
quality product or service cannot be
produced by a defective process.
– Quality management is a repetitive
cycle of measuring quality, updating
processes, measuring, updating
processes until the desired quality 41is
 Features of Quality Management

3. It is part of every project management processes

from the moment the project initiates to the final
steps in the project closure phase. It is not about
finding and fixing errors after the fact, quality
management is the continuous monitoring and application
of quality processes in all aspects of the project.

4. QM focuses on improving stakeholder’s satisfaction

through continuous and incremental improvements
to processes, including removing unnecessary activities;
it achieves that by the continuous improvement of
the quality of material and services provided to the
beneficiaries.

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Features of Quality Management

 The central focus of quality management is:

 meeting or exceeding stakeholder’s expectations and
 conforming to the project design and specifications
 Quality management is a comprehensive approach that
ensures products or services consistently meet or exceed
customer requirements by integrating all quality-related
functions and processes throughout the company. It’s not just
about reducing costs or achieving project milestones, but
about ensuring that the end product or service meets its
intended purpose and satisfies customer needs.

 The ultimate judge for quality is the beneficiary, and

represents how close the project outputs and deliverables
come to fulfilling the beneficiaries’ requirements and
expectations.
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 The Purpose of Management
of Quality
 The main principle of project quality management is
to ensure the project will meet or exceed
stakeholder’s Needs and Expectations.

 The project team must develop a good relationship

with key stakeholders, specially the donor and the
beneficiaries of the project, to understand what
quality means to them.

 One of the causes for poor project evaluations is the

project focuses only in fulfilling the written
requirements for the main outputs and ignores other
stakeholder needs and expectations for the project.

44
The Purpose of Management
of Quality
 Quality must be viewed on an equal level
with scope, schedule and budget.

 If a project donor is not satisfied with the quality

of how the project is delivering the outcomes, the
project team will need to make adjustments to
scope, schedule and budget to satisfy the donor’s
needs and expectations.

 To deliver the project scope on time and on budget

is not enough, to achieve stakeholder satisfaction
the project must develop a good working
relationship with all stakeholders and
understand their stated or implied needs. 45
 Outputs of Plan Quality Process
 The outputs of project plan quality
management process include:
• Quality Management Plan,
• Quality metrics,
• Quality checklists and
• Process Improvement Plan.

46
Total Quality Management
(TQM)

47
Total Quality Management (TQM)

48
 Total Quality Management
(TQM)
• TQM consists of organization-wide
efforts to "install and make
permanent climate where employees
continuously improve their ability to
provide on demand products and
services that customers will find of
particular value in it

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 Total Quality Management
(TQM)
• “Total” emphasizes that departments in
addition to production (for example sales
and marketing, accounting and finance,
engineering and design) are obligated to
improve their operations
• “Management" emphasizes that executives
are obligated to actively manage quality
through funding, training, staffing, and
goal setting

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 Total Quality Management
(TQM)
“Quality”:
1. A process or product is fit for its purpose
2. Conformance to Requirements
3. Quality is a Cost- A quality product costs
more to produce.
4. Quality is the price consumers are willing to
pay for a product or service.
5. Quality is a Standard- compliance to best
known standards, processes and
specifications.
6. Quality is value for price.
7. Quality is a satisfying experience- 51
 Evolution of TQM
• In the late 1970s and early 1980s, the developed
countries of North America and Western Europe
suffered economically in the face of stiff competition
from Japan's ability to produce high-quality goods at
competitive cost
• if Japan can... Why Can't We?.
• Firms began re-examining the techniques
of quality control invented over the past
50 years and how those techniques had
been so successfully employed by the
Japanese.
• It was in the midst of this economic turmoil
that TQM took root. 52
 Development in the
United States
• In the spring of 1984, an arm of the United
States Navy asked some of its civilian
researchers to assess statistical process
control and the work of several prominent
quality consultants and to make
recommendations as to how to apply their
approaches to improve the Navy's
operational effectiveness.
• The recommendation was to adopt the
teachings of W. Edwards Deming. The
Navy branded the effort "Total Quality
Management" in1985 53
 Features of TQM
The key concepts in the TQM effort
undertaken by the Navy in the 1980s
include:
1. "Quality is defined by customers’
requirements”
2. "Top management has direct
responsibility for quality improvement”
3. "Increased quality comes from
systematic analysis and improvement
of work processes”
4. "Quality improvement is a continuous
effort 54
 Summary
• Quality involves products, defects, processes,
customers, and systems.
• Quality is the ability of a set of inherent
characteristics of a product, system, or process to
fulfill requirements of customers and other
interested parties.
• Quality is a fourth among equals in relation to the
project triple constraint of time, cost, and scope.
• Edward Deming gave us PDCA and 85% rule. Plan
Do Check and Act or PDCA is the cycle of continuous
improvement. 85% Rule = 85% of the cost of quality
is the responsibility of the senior management

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 Summary
• Quality is not an expensive process, an
expensive product, or time consuming.
• The cost of quality may be viewed in terms
of internal and external failure to conform
to specifications (recurring costs) or
prevention of nonconformance and
appraisal (investments, recurring benefits).
• Cost of Quality or COQ = Cost of
Conformance or Prevention Costs + Cost of
Non Conformance or Failure Costs
• Cost of Conformance = Prevention Costs +
Appraisal Costs
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• Cost of Non-Conformance = Internal Failure
 Summary
• The effects of prevention and appraisal may
include better products, better processes, more
capable workers, and more satisfied customers.
• Quality benefits include customer satisfaction,
reduced costs, increased profits, and increased
competitiveness
• Quality = Conformity to Requirements + Fitness
Of Use.
• Benchmarking = The comparison of actual or
planned products, processes, and practices to
those of comparable organizations to identify
best practices, generate ideas for improvement,
and provide a basis for measuring performance. 57
 Summary
• The effects of failure to conform to
specifications may include dissatisfied
customers, loss of customers, loss of
business, loss of revenue, and failure of the
organization.
• Kaizan is a Japanese traditional “Continuous
Improvement
Process” whereby smaller and little
improvements are made
almost on a daily basis to reap a large
annual increment in
process improvement.
• Quality has to be planned in and not 58
 Exercise-Questions
1. Describe several views of quality in the context of your own
knowledge or experience. Include at least three of the
following: products, defects, processes, customers, systems,
or others.
2. Select a product (goods or services) about which you have
some personal knowledge. Explain how Juran’s two
components of features and freedom from failures relate to
the quality of that product.
3. Discuss the cost of quality considering failure, prevention, and
appraisal costs. Give examples from your own knowledge or
experience.
4. Explore specifically the costs of internal and external failures.
Which one can be more expensive? Give examples, imagined
or from your own experience.
5. From your own experience—school, work, social
organizations—describe the benefits of quality in real-world 59
 Answer: Questions
1. Views of Quality:
– Product Quality: This is often measured by the
product’s performance, reliability, durability, and
design. For example, a high-quality smartphone
might have a fast processor, long battery life, and
an intuitive user interface.
– Defects: Quality can also be viewed in terms of
defects. A product with fewer defects is
considered to be of higher quality. For instance, a
software application with fewer bugs is seen as
superior quality.
– Processes: Quality can be seen in the efficiency
and effectiveness of processes. In a
manufacturing setting, a process that produces
consistent results and minimizes waste is 60
 Answer: Questions
2. Juran’s Two Components of Quality:
1.Let’s consider a laptop as a product.
The features would include aspects like
processing speed, screen resolution, battery
life, etc. A laptop with high-end features (like
a fast processor, high-resolution screen)
would be considered high quality.
2.Freedom from failures refers to the
absence of malfunctions or defects. If the
laptop rarely crashes and doesn’t have any
manufacturing defects, it exhibits freedom
from failures, contributing to its overall
quality. 61
 Answer: Questions
3. Cost of Quality:
1.Failure Costs: These are incurred when a
product fails to meet quality standards. For
example, if a car breaks down due to a
manufacturing defect, the cost of repairs
would be a failure cost.
2.Prevention Costs: These are incurred to
prevent defects and failures. This could
include costs for quality planning, training,
and equipment maintenance.
3.Appraisal Costs: These are associated with
measuring and monitoring activities to ensure
quality standards. For instance, the cost of
inspections and testing in a production line. 62
 Answer: Questions
4. Costs of Internal and External
Failures:
1.Internal Failures: These occur before the
product reaches the customer. For example, a
defective smartphone identified during the
manufacturing process.
2.External Failures: These occur after the
product has been delivered to the customer.
For instance, a laptop that breaks down after a
few months of use.
– External failures can often be more expensive
as they not only include the cost of fixing the
issue but also the potential loss of customer
trust and damage to the company’s reputation.63
 Answer: Questions
5. Benefits of Quality in Real-World
Situations:
1.In a school setting, quality can be seen in the
delivery of education. High-quality teaching
leads to better student outcomes.
2.At work, a high-quality project management
system can lead to more efficient processes,
saving time and resources.
3.In social organizations, quality can be
reflected in how effectively the organization
meets its goals and serves its members. For
example, a high-quality community service
organization would effectively address the
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needs of the community it serves.
 Mini-Project
Prepare a matrix that explores Juran’s concept of “fitness
for purpose.”
– In the first column, list at least six examples of products: two
hard goods, two services, two elements of information.
– In the second column, describe the fitness for purpose for each
example.
– In the third column, describe aspects of quality that may come
into play in establishing fitness for purpose.
– In the fourth column, describe actions that may be taken to
influence the quality aspects.
– If so inclined, add a last column as a clearinghouse to address
related matters that may have arisen in your work.
Prepare a presentation of the results of your matrix for
class or for a collaborative work group. Lead a discussion
among participants.
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Answer: Mini-Project

66
 References
1. Project Quality Management Why, What and How, Second
Edition (Kenneth H Rose) _2nd Edition 2014
2.Deming, W.E., The New Economics for Industry,
Government, and Education, 2nd ed., The MIT Press,
Cambridge, MA, 2000, p. xv.
3. Deming, W.E., Out of the Crisis, The MIT Press,
Cambridge, MA, 2000, p.126.
4. Juran, J.M. and De Feo, J.A., Eds., Juran’s Quality
Handbook, 6th ed., McGraw-Hill, New York, 2010, pp. 5.
5. A Guide to the Project Management Body of Knowledge—
Six Edition,
Project Management Institute, Newtown Square, PA,
2017.
6. ISO 9000:2005, Quality management systems—
Fundamentals and vocabulary, International Organization
67
for Standardization, Geneva, 2005, p. 7.
Thank You !

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