Contribution to Book - Project Management for Instructional Designers

Chapter 10 - Managing Project Quality

By

Genevieve Cox

Rachele Wagstaffe

Rhonda Grant

Nyeisha George-Minott

Presented in Partial Fulfilment of

EDID 6511 Facilitating and Managing Learning

Date of submission: November 20, 2016

Email: genevieve.cox@my.open.uwi.edu

rachele.wagstaffe@my.open.uwi.edu

rhonda.grant@my.open.uwi.edu

nyeisha.georgeminott@my.open.uwi.edu

University: University of the West Indies (UWI) Open Campus

Course Coordinator: Dr. Camille Dickson-Deane

Justification proposal
The reason for choosing the chapter on quality management to be adjustment was because the
chapter provided little information on how to conduct quality management on a product.
 Chapter 10
10 Managing Project Quality
10.2 Development of Quality as Competitive Advantage

Cost of Quality management

The cost of Quality refers specifically to the costs associated with avoiding poor quality or those
incurred as a consequence of poor quality. By conducting cost of quality analysis project
managers can identify and qualify major opportunities for process improvements and evaluate
the importance of quality and improvement for project operations. The cost of quality can be
divided into four parts: prevention costs, appraisal costs, internal failure costs and external
failure costs.

Prevention costs - Those costs expended to keep nonconforming goods and services from being
made and reaching the customer: These include:
Quality planning costs
Process-control costs
Information system costs
Training and general management costs

Appraisal costs - Those costs expended on determining quality levels through the measurement
and analysis to troubleshoot and correct problems. They include:
Test and inspection costs
Instrument measurement costs
Process-measurement and process-control costs

Internal failure costs - Those costs incurred as a result of unsatisfactory quality this is found
before the delivery of a good or service. They include:
Scrap and rework costs
Costs of corrective action
Downgrading costs
Process failures

External Failure costs - Those costs incurred after poor quality goods or services reach the
customer. These include:
Costs due to customer complaints and returns
Goods and services recall costs and warranty and service guarantee claims
Product liability costs
The unfortunate cost of poor quality
A major news story in 2016 was the case of the consumer electronics company Samsung. The
company had to recall the Galaxy Note 7 devices. According to their website, the affected
devices can overheat and pose a safety risk. Consumers on state and social media retold stories
of these devices that caught fire and lead to personal and property damage. Major airlines banned
them from being stowed in luggage or used onboard. Hundreds of phones in the U.S. and
worldwide had the critically high propensity for battery failure. Following these reports Samsung
and the U.S. Consumer Product Safety Commission (CPSC) announced a complete recall of all
Note 7 devices. It has become illegal to sell any Galaxy Note 7 device, new or used. Samsung
has since moved on to its new flagship device the Galaxy S8, with the hope of rebuilding
consumer trust.

Trade and International Standards

ISO 14000

ISO 9001:2015

http://www.bsigroup.com/en-GB/iso-9001-quality-management/ISO-9001-revision-2015/

10.4 Planning and Controlling Project Quality

Other tools and techniques for planning and controlling the quality of a project

Root Cause Analysis

The root cause analysis is a term used to designate the source of a problem. In medical analogy,
eliminating the symptoms of problems provides only temporary relief; eliminating the root cause
provides long term relief. The 5-why technique is useful in determining the root cause.
Essentially you are trying to redefine the problem statement by asking why at least 5 times
until you get to the root cause.

In this example, 5 whys are asked to get to the root cause of the problem -
Rust stains on laundry

Why are there rust stains on the laundry? Because of rusty water
Why is there rusty water? Because of a rusty water pump
Why is there a rusty water pump? Because the water pump has never been replaced
Why has the pump never been replaced? Because it has never been inspected since installation
Why has it never been inspected? Because there is no scheduled maintenance plan in place.

Without a proper maintenance plan, the water pump sat uninspected. Years of wear and tear
caused the water pump to become rusty, causing rusty water to pass through the pipes. The
laundry was affected by rust stains as a result. Using rust remover or bleach in the laundry would
only treat the symptoms. Long term relief comes from replacing the rusty pump and having
regular inspections and a maintenance schedule.
Gap Model
Todays consumer wants high quality products as well as high quality customer service. Many
people view quality by comparing features and characteristics of goods and services to a set of
expectations. The aim of the Gap model is to recognize gaps between customer expectations and
the actual services provided and focus on closing the gap and improving customer service.

There are several ways to mismanage the creation and delivery of high levels of quality. These
gaps are see in the model diagram above.

Gap 1 - The discrepancy between customer expectations and management perceptions

Gap 2 - The discrepancy between management perceptions of what features constitute a target
level of quality and the task of translating these perceptions into executable specifications.
Gap 3 - The discrepancy between quality specifications documented in operating and training
manuals and plans and their implementation
Gap 4 - The discrepancy between actual manufacturing and service delivery system
performance and external communication
Gap 5 - The discrepancy between the customers expectations and perceptions

Scatter Diagram
According to the PMBOK Guide 5th edition, the scatter diagram is A correlation chart that uses
a regression line to explain or to predict how the change in an independent variable will change a
dependent variable. The scatter diagram is used to show the relationship between two variables,
usually the first variable is independent and the second variable is dependent on the first variable.
If the variables are correlated, the points will fall along a line or curve. The better the correlation,
the tighter the points will hug the line. (Tague, 2005).
For example, analyzing the pattern of accidents on a highway. The two variables motor speed
and number of accidents are selected, and the diagram is drawn.
Once the diagram is completed, you notice that as the speed of vehicle increases, the number of
accidents also goes up. This shows that there is a relation between the speed of vehicles and
accidents happening on the highway.

Types of Scatter Diagrams

Scatter Diagrams fall into three categories
Scatter Diagram with No Correlation
Scatter Diagram with Moderate Correlation
Scatter Diagram with Strong Correlation

Scatter Diagram with No Correlation

In this diagram the data point is spread randomly no line can be drawn. Hence there is no
correlation between the variables

Scatter Diagram with Moderate Correlation

In this diagram the data point are a little closer and there is some kind of correlation that exists
between both variables.
Scatter Diagram with Strong Correlation
In this diagram the data points are close together thereby showing that the variables are closely
related. A line can be drawn to show/follow the pattern.

SPC Chart

10. 6 Ethics, and Employee-Based Quality Management

(Genevieve)
Quality does not describe what happens in any one department. The concept of quality
applies to everything that takes place in an organization, and involves among other things, its
ethical practices, how employees are empowered, and the sustainability practices used to achieve
greater efficiency in managing the quality of its processes and products. Delivering poor quality
to customers is unethical, and not allowing employees who understand the shortcomings of the
system to contribute to the improvement of processes and product quality is counterproductive
to the achievement of sustainable quality standards. Organizational core values that guide
everyone from top management to the lowest level of the organization are important in managing
quality, and the organization loses when the continuous improvement of quality is not made a
priority for all employees.
Organizations have an ethical obligation to deliver quality products and services to their
customers. Organizations that fail to follow ethical standards in delivering quality may incur
external costs as noted in section 10.2. Philip Crosby stated that quality is free. What costs
money are the unquality things - all the actions that involve not doing it right the first time.
Organizational accounting systems provide only limited information to account for the cost of
poor quality, and cannot totally quantify the real cost of inadequate design and inefficient
production processes in all areas of operations. Juran states that the cost of poor quality are
huge, but the amounts are not known with precision. In most companies the accounting system
provides only a minority of the information needed to quantify this cost of poor quality. It takes a
great deal of time and effort to extend the accounting system so as to provide full coverage.

Empowering employees can aid organizations in conforming to ethical quality standards.

When non conformance occurs, it is most times not the workers fault, but that the product or the
system that makes the product was designed wrong, or the employees were not properly trained
to do the job. Building employee-based quality teams with a specially trained team member
called the facilitator to address quality issues, and forming quality circles which meet regularly
to solve work-related problems can help organizations to effectively manage quality. Heizer and
Render (2011, p.228 ) lists the following techniques for building employee empowerment:
1. Building communications networks that include employees
2. Developing open, supportive supervisors
3. Moving responsibility from both managers and staff to production employees
4. Building high morale organizations
5. Creating such formal organization structures as teams and quality circles

http://www.sjm06.com/SJM%20ISSN1452-4864/2_2_2007_November_101-280/2_2_127-
145.pdf

10.7 Issues and trends in quality management

Genevieve

Quality concepts, and issues in quality management have evolved over the past century,
and emerging trends in the field suggests that the approach to managing quality is shifting from
where the quality professional defined and enforced quality standards towards that of working in
partnership with employees to find the root cause of the problem. The changing role of the
quality professional is gravitating towards a shifting mindset where the quality technician is
seen as a coach, mentor, teacher, and team player. As the role of the quality manager evolves,
the quality manager as part of the team must now work in partnership to find a solution with
employees, and other team members to implement the solution, and ensure that employees and
team members understand the effect of the problem and solution to the success of the
organization. Organizational success can be ensured by implementing the Star Point System,
which drives necessary changes and improves integration between functions, and teams.

Star Point System

The Star Point system creates a dual operating system which allows teams to cross over
functional areas and link processes together.

The Star Point system, along with lean/employee empowerment is a future trend in
quality management. Both methods have employee involvement as a key component, and
engages all concerned in process ownership.
In organizations where integrated quality management is implemented, this can help to
improve process, quality expectations,financial performance, and improve the image of both
employees and the quality professional. The benefits to be derived from lean production and the
star point system will continually drive the organization to sustainable quality improvement.

Benefits of the Star Point System:

Gets more people on the playing field owning critical process work for the team
Links all similar Star Points together so they learn from each other
Provides a leadership role as a Star Point Leader for someone on the bench in a specialty area
Structures a fast way to communicate with all teams via the Star Point system
Improves the consistent delivery of instruction and materials to all employees
Provides mini-leadership opportunities on the self-directed teams for those in SP roles
Accumulates deep knowledge among team members in multiple Star Point areas as rotations
occur on the team

Benefits of Lean Production:

Improved Customer Service; delivering exactly what the customer wants when they want it.

Improved Productivity; Improvements in throughput and value add per person.

 Quality; Reductions in defects and rework.
Innovation; staff are fully involved so improved morale and participation in the business
Reduced Waste; Less transport, moving, waiting, space, and physical waste.
Improved Lead Times; Business able to respond quicker, quicker set ups, fewer delays.
Improved Stock Turns; Less work in progress and Inventory, so less capital tied up.
All of the above have financial impacts on your business, as well as helping you become a
business that can better react to and meet your customer's needs.

References

Abhijith P. (2014 Nov. 24). Service Gaps and Service Model. Retreived from: ABS-Service
Marketing Blog: https://asbservicemarketing1.wordpress.com/2014/11/24/service-gaps-and-
service/

Collier A. D. , & Evans R. J. (2010-2011). OM. Cengage Learning.

Samsung. (2016 Oct. 17). Samsung shares important information for Galaxy Note 7 users.
Retreived from : Samsung: http://www.samsung.com/latin_en/note7exchange/

Tague, N. R. (2005). The Quality Toolbox, Second Edition, ASQ Quality Press, pg 471474.

Usami, F. (2014). What is a Scatter Diagram (Correlation Chart)? [Web log post]. Retrieved from
https://pmstudycircle.com/2014/08/what-is-a-scatter-diagram-correlation-chart/