PMI PMP Exam Prep PMI Mile High Chapter

PMI PMP Exam Prep PMI Mile High Chapter North Area Study Group Quality Presentation Prepared by Denise Robertson 8 March 2003 Denise Robertson Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's PMP exam prep materials Page 1

Quality Definitions n n n Quality: conformance to requirements and fitness of use Quality Management: The processes required to ensure that the project will satisfy the needs for which it was undertaken. Philosophy: Gold plating is bad; Information quoted or derived from PMI, is good prevention over inspection Mulcahy, and Looking Glass Development's Denise Robertson PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 2

Quality Characteristics n Grade vs. Quality n n n Grade: meets spec requirements Quality: behaves as expected Prevention vs. Inspection Management Responsibility Processes Customer Satisfaction n n Keep customer informed Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's Stick to Requirements Denise Robertson PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 3

Quality Processes n n n Quality Planning n Quality standards and methods to meet them n Planning Quality Assurance n Improvements, audits, measurement comparisons, considering standards appropriateness n Executing Quality Control n Measuring/testing errors, measuring schedule performance, comparing results to standard Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's n Controlling PMP exam prep materials. Information quoted Denise Robertson or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 4

Quality Planning Tools n n n n Standards Benchmarking (past analysis) Benefit/Cost Analysis (BCI) Flowchart (future analysis) Design of Experiments (what if? ) Cost of Quality (costs of conformance & nonconformance) Fishbone Diagram (also used in QC) Information quoted or derived from PMI, Denise Robertson Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 5

Quality Assurance Tools n n n Evaluation against standards on regular basis Re-evaluation of standards, methods, and procedures Quality Audit: structured review of quality activities that identifies lessons learned Information quoted or derived from PMI, Denise Robertson Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 6

Quality Control Tools n n n n Inspection Pareto Diagram Fishbone Diagram Checklists Statistical Sampling Control Charts Flow charting (also used in Quality Planning) Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's Trend Analysis PMP exam prep materials. Information quoted Denise Robertson or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 7

Quality Techniques n n n Continuous Improvement (Kaizen) Just in Time (JIT) Total Quality Management (TQM) Denise Robertson Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 8

Quality Researchers Deming Juran Crosby Ishikawa PDCA (Plan, Do, Check, Act) TQM Total Quality Management Quality is free Cause and Effect Fishbone Diagram (Flowchart) Poor quality: 85% Process 15% Worker Fitness for Use 0 defects Design Statistics Don’t confuse with 80/20 Denise Robertson Conformance to requirements Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 9

Optimal Quality and Responsibility n Marginal Analysis n n Optimal quality is reached at point where incremental value from improvement = incremental cost to secure it. Responsibility for Quality n n n Senior management is responsible for organizational quality PM has ultimate responsibility for quality of product of project quoted derived from PMI, for self Each team. Information member isorresponsible Mulcahy, and Looking Glass Development's inspection PMP exam prep materials. Information quoted Denise Robertson or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 10

Statistical Terms Average Value obtained by dividing the sum of a set of quantities by the number of quantities in the set (arithmetic mean) Mean Sum of the values divided by the number of values Median Middle value of a set of values ordered by rank Mode For lists, the mode is the most common (frequent) value. A list can have more than one mode. Standard Deviation Standard deviation tells how spread out numbers are from the average, calculated by taking the square root of the arithmetic average of the squares of the deviations from the mean in a frequency distribution 3 Sigma 3 standard deviations 6 Sigma Denise Robertson Information quoted or derived from PMI, 6 standard deviations Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 11

Standard Deviation n Distance from Mean in a Normal Curve 1 standard deviation = 1 sigma (P – O) / 6 n PERT formula for standard deviation where P is pessimistic estimate and O is optimistic estimate Denise Robertson Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 12

Sigma represents level of quality company is trying to achieve. At 6 sigma, only 1 out of every 10, 000 units has a problem. At 3 sigma, 27 out of every 10, 000 units has a problem. Half the curve is below the mean on the left side with a negative value. Half the curve is above the mean on the right side with a positive value. -1 or +1 sigma 68. 26% -2 or +2 sigma 95. 46% -3 or +3 sigma -6 or +6 sigma Denise Robertson 99. 73% Information quoted or derived from PMI, Mulcahy, and Looking 99. 99% Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 13

Statistical Sampling Quality Control Chart n n Graphic display of results, over time, of a process… used to determine if the process is “in control. ” To create a control chart: n n n Samples are taken Variables are measured Attributes are quoted found and on chart Information or derived fromplotted PMI, Denise Robertson Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 14

Monitoring Project Results n Variable n n Attribute n n Anything measured Binary value, either right or wrong Probability n Likelihood event will occur, usually expressed as % Information quoted or derived from PMI, Denise Robertson Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 15

Control Chart Features n Control Limits n n n Acceptable range of variation of a process often shown as 2 dashed lines on chart Upper and Lower Control Limits are determined by organization’s sigma quality standard Specification Limits n n Contractual requirements for performance and quality Not calculated based on control chart Outside chart control project can meet Information quoted limits or derivediffrom PMI, Mulcahy, and Looking Glass Development's Inside chart control limits if project PMP exam prep materials. Information quoted cannot meet Denise Robertson or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 16

Out of Control n n n Lack of consistency or predictability in process. When data point falls outside upper or lower control limit When non-random data points are still within upper and lower control limits, such Information quoted or derived from PMI, as Rule. Mulcahy, of Seven and Looking Glass Development's Denise Robertson PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 17

Rule of Seven n n Heuristic referring to non-random data points grouped together in a series that total 7 on one side of mean. Assignable Cause is a data point or Rule of Seven that requires investigation to determine cause of variation. Denise Robertson Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 18

Cost of Quality Cost of Conformance Prevention and Appraisal Costs Cost of Nonconformance Failure Costs Planning Training Auditing Controlling Internal Denise Robertson Scrap (pre customer) Rework Expediting External Warranty (post customer) Service Information quoted or derived from PMI, Mulcahy, and Looking Glass Development's Recalls PMP exam prep materials. Information quoted or derived from PMI, Mulcahy, and Looking Glass Development’s PMP exam prep materials 19