1. Project Quality Management
Sections of this presentation were adapted from A Guide to the Project
Management Body of Knowledge 5th Edition, Project Management Institute
Inc., © 2013

2. Project Quality Management
 Project quality management includes the process required
to ensure that the project satisfies the needs for which it is
undertaken.
 PQM includes all the activities of the overall
management function that determine the quality policy,
objectives, and responsibilities and implement them
within the quality system.

3. Why Quality Management?
 Quality means conformance to specifications and fitness
for use – i.e. just what you need and not more
 Projects or products with unnecessary features can be
too expensive to meet the business need
 Prevention is much cheaper than inspection, build
quality in early to minimize costs/maximize quality

4. How to Manage Quality?Three processes
• Plan Quality
– What is quality and how will we ensure it?
• Perform Quality Assurance
– Are we following the quality standards?
• Perform Quality Control
– Are we meeting the quality standards?
Perform
Quality
Assurance
Perform
Quality
Control
Plan
Quality

5. How to Manage Quality?
 These processes interact with each other as well as with the
processes of other knowledge areas
 Each process involves an effort of one or more individual or
group of individuals based on the need of the project.
 Each process occurs at least once in every project phase during
the project life cycle
Perform
Quality
Assurance
Perform
Quality
Control
Plan
Quality

6. Plan Quality Management
 Cost-benefit analysis
 Cost of quality
 Seven basic quality tools
 Benchmarking
 Design of experiments
 Statistical sampling
 Additional quality planning
tools
 Meetings
Tools & TechniquesProject management
plan
Stakeholder register
Risk register
Requirements
documentation
Enterprise
environmental
factors
Organizational process
assets
Quality management
plan
Process improvement
plan
Quality metrics
Quality checklists
Project documents
updates
Inputs
Outputs
Perform
Quality
Assurance
Perform
Quality
Control
Plan
Quality

7. Plan Quality Management
Cost of Quality – Evaluating the
cost of conformance with the
cost of nonconformance to reach
a balance. Includes;
• Prevention Costs
• Appraisal Costs
• Failure Costs
Cost of
Conformance
Cost of Non
Conformance
Quality training Rework
Studies Scrap
Surveys Inventory Costs
Warranty Costs
Deming’s Costs of Quality
“85% of the costs of quality are the direct responsibility of management "- William
Edwards Deming

8. Plan Quality Management
PMBOOK 2013
Cost of Quality – Evaluating the cost of conformance with
the cost of nonconformance to reach a balance.

9. Quality Planning Terms
Gold Plating – Giving the customer extras that do
not add value to the project
Marginal Analysis – The point where the
incremental revenue from an improvement equals
the cost to implement it
Kaizen – Continuous improvement process to
reduce costs and promote consistency
ISO 9000 – International standard to ensure that
companies have quality procedures and that they
follow them

10. Perform Quality Assurance
 Quality management and
control tools
 Quality audits
 Process analysis
Tools & Techniques
Change requests
Project management
plan
updates
Project documents
updates
Organizational
process assets
updates
Quality management
plan
Process improvement
plan
Quality metrics
Quality control
measurements
Project documents
Inputs
Outputs
Perform
Quality
Assurance
Perform
Quality
Control
Plan
Quality

11. Statistics Terms Review
 Mutually Exclusive – Two
events that cannot both occur
in a single trial
 Statistical Independence –
Probability of one event
occurring does not affect the
probability of another event
occurring
 Probability – The likelihood
that something will occur
(usually expressed in percent)

12. Perform Quality Control
 Seven basic quality tools
 Statistical sampling
 Inspection
 Approved change requests
review
Tools & Techniques
Quality Control
Measurements
Validated Deliverables
Validated Changes
Change Requests
Project Management
Plan Updates
Work performance
information
Project Document
Updates
Project management plan
Quality metrics
Quality checklists
Work performance data
Approved change requests
Deliverables
Project documents
Organizational process assets
Inputs
Outputs
Perform
Quality
Assurance
Perform
Quality
Control
Plan
Quality

13. Pareto Principle/ Chart
Graph of problem type vs. frequency
80/20 Rule – a theory maintaining that 80% of the output in
a given situation or system is produced by 20% of the input.
Problem Type
Frequency
CumulativePercentage
www.techtarget.com/

14. Control Chart
 Upper & Lower Control Limits (UCL & LCL)
• Set by quality goal i.e. 3s
• Includes the normal and expected variation in the process
 Specification Limits
• Contracted acceptable limit, usually outside UCL & LCL
 Out of Control
A process is considered out of control when:
1. a data point exceeds a control limit;
2. seven consecutive plot points are above the mean;
3. seven consecutive plot points are below the mean.
 Assignable Change
• When the controller adjusts the process to bring the process back within process
control limits

15. Control Charts
Out of control point indicates unsuall process - activity