Project Quality Management

1
Project Quality Management
10/24/05
2
Review Assignments

• Your impression Is Quality Important?
• My impression

3
Project Quality Management

• What is it?
• Process or Product?
• Total Quality Management (TQM)

4
Project Quality Management

• Can you ever have too much Quality?

5
Project Quality Management

• When is it good enough?

6
Market Expectations

• Salability the balance between quality and cost
• Produceability the ability to produce the
  product with available technology and workers,
  and at an acceptable cost
• Kerzner pg 758

7
Market Expectations

• Cost of Quality Do it right, not perfect
• Safety and prevention trump
• If you dont, your brand can and will suffer,
  impacting sales and potential growth
  opportunities.
• Cost/Benefit Analysis Weighing the cost of
  doing something against the benefit of doing it.
• (sunroof, navigation system options customer
  pays extra because the cost of making it standard
  exceeds the number of customers who desire it/or
  would pay for it. Offer it, just charge more.)

8
How much are you worth?

• What is the value of human life?
• 25,000
• 500,000
• 1,000,000
• More???

9
200,000 1971, Ford Motor Co.

• Case Study Ford Pinto Objective
• Pinto should not weigh over 2,000 lbs or cost
  over 2000.
• Go to market in 25 months instead of standard 43
  months
• Huge pressure to compete with VW Bug
• Safety not huge concern, product specs were

10
Unexpected and Unwanted News

• Solution
• Stop production on car (or later, recall car
  not profitable)
• Use different gas tank design
• Use rubber shield
• Other factors
• Initial numbers high/low (Benefit s too low and
  Cost numbers too high)

11
Can you over-engineer quality?

• Cost of Quality
• Safety, cost, quality

12
Project Management
RISK
Domain of Control Quality
13
Quality Process Metrics

• Quality Control Tools
• Cause-Effect diagrams
• Pareto Analysis
• Scatter Diagrams
• Latest trend
• Six Sigma

14
What is Six Sigma

• Use of statistical tools within a structured
  methodology for gaining the knowledge needed to
  create products and services better, faster and
  less expensively than the competition.

15
Whos Using Six Sigma

• GE, Motorola, Sony
• Target and 3M are adopting 6 Sigma
• Repeated, disciplined application of the master
  strategy on project after project,
• Projects based on key business issues
• Increased profit margins and adds to bottom
  line

16
Other Quality Tools/Processes

• Capability Maturity Model (CMM)
• Software Engineering Institute (SEI)
• Target uses SEI best practices to monitor our
  software development processes.
• CMM assessment of level 2 a few years ago and
  were being reassessed this year.

17
The Five Levels of Maturity
Feedback
18
The Need for Continuous Improvement
Project Management Maturity
Exploitation
Competitors Counterattack
Sustained Competitive Position
Time
19
The Need for Continuous Improvement
Sustained Competitive Position
Time
20
Core Competency Analysis
Productive Hours Per Day
Without Project ManagementCompetency
With Project ManagementCompetency
21
Core Competency Analysis
Productive Hours Per Day
Without Project ManagementCompetency
With Project ManagementCompetency
22
Core Competency Analysis
Rework
Productive Hours Per Day
Without Project ManagementCompetency
With Project ManagementCompetency
23
Quality Leadership or Project Mgmt?

• Teamwork
• Strategic Integration
• Continuous Improvement
• Respect for People
• Customer focus
• Management-by-fact
• Structured problem-solving

24
Quotes

• You cant inspect quality into a product.
• If you cant measure it, you cant manage it.

25
Assignments due by COB 10/26/05

• Reading Project Management by Kerzner 8th
  edition. Management Functions, Chapter 5, pg
  191-242
• Questions Submit responses in MSWord via
  e-mail. 51-514 526 531-534
• Please submit answers prior to class 10/26/05.