Leveraging on Quality Projects for Competitive Advantage (LQPCA).

14Th April 2012 Presented by Nhamo Dhlamini (PMP) Doing it right the first time, quality projects way of life Copyright 2012

Layout of Presentation
Introduction What is leveraging on quality projects for competitive advantage (LQPCA) all about? Development of LQPCA: before 2000 & 2000 to now Global factors driving the LQPCA process in organizations Well known success stories/cases of LQPCA (1 slide) What is the current situation in Zimbabwe regarding LQPCA? awareness and use; challenges & opportunities Critical factors to drive an effective LQPCA in Zimbabwe Where to from here/The future of LQPCA?

What is leveraging on quality projects for competitive advantage (LQPCA) all about?
Understanding customer needs analysing past, evaluating present & determining future needs through implementation of best project management practices. Optimization of the quality pyramid quality; cost and time
Quality

Cost

Time

Look critically at our organization structure; culture; available resources; vision .

..But, what does project quality management (PQM) involve?

PQM is the process of creating and following policies and procedures to ensure that a project meets the defined needs of relevant stakeholders.

PQM is underpinned by two major fields namely: Quality Management (QM) Project Management (PM)

Critical developments in Quality Management (QM)

QM dates back before the industrial revolution skilled craftsmen sought to understand customers needs ( took pride in holistic workmanship before selling). After the industrial Revolution focus was on production and no relationship between the worker and customer (no need to understand customer needs). To improve and maintain quality standards for customers new theories and statistical methods for evaluation were developed (Walter Shewhart; Bell Tel Lab, USA 1920s) Furthermore, Deming and Juran introduced statistical quality control to the Japanese as part of the industrial base rebuilding program after ww2. 1950s- 70s, the Japanese improved the quality of their products at an unprecedented rate while the Western quality standards lagged behind. 1951- the Deming award was introduced to recognize company-wide quality control (CWQC) achievements by the Union of Japanese Scientists and Engineers (JUSE).

Critical developments in Quality Management (QM) [cont.]

From the 1970s to now, continued growth in market share in automobile, electronic and other high technological industrial products and services by the Japanese (due to application of quality mgt processes) is still evident. 1980s , in response to quality based competitive threat from Japan, many US organizations engaged in extensive quality improvement programmes. This resulted in other quality based awards being introduced throughout the world -Malcom Baldrige National Quality Award, 1987 (USA); the International Organization for Standards (ISO) adopted written quality standards ( ISO family of standards) for European countries and those wishing to do business with those countries. For many years, the ISO family of standards have been adopted in US by the American National Standards Institute (ANSI) with the endorsement and cooperation of the American Society for Quality (ASQ). Since 1991, the European Commission in partnership with the European Commission and the European Organization for Quality, announced the European Quality Award to signal quality in global competition and regional productivity. Today we have seen more emphasis being put on bottom line focused Six Sigma quality a level representing no more than 3.4 defects per million opportunities (Motorola, 1986)

Critical developments in Project Management (PM)

As quality management was developing, many events led to the need for better PM. Some of the projects of note that still exist today include the Egyptian pyramids, Chinese Garden, Great Zimbabwe and Khami ruins. These projects and many others have necessitated a need for a systematic field of study that emerged in the middle of the 20th century in the US. After WW2, companies shifted focus for production from war-based to commercial. Projects in dynamic environments in the defense, aerospace, construction, high technology engineering industries demanded formal project mgt skills at many levels (1950s to 60s). Prior to this period, project management was done on an adhoc basis. 1969, the PMI was formed to act as a forum for discussion and exchange of PM experiences in different industries.

Critical developments in Project Management (PM) [cont.]

The need to address cost, schedule, scope, and quality concerns simultaneously forced companies and gvt organizations to develop more systematic and standard approaches to project mgt. 1981 the PMI formally recognized the development of uniform standards for mgt of projects as its responsibility, establishing a Guide to PMBOK (PMBOK Guide) in 1987. Project Quality Mgt has been recognized as a distinct, separate, core knowledge area. Individuals who master the PMBOK Guide and pass the certification exams become Certified Project Mgt Professionals (PMP).

Is there a cost of maintaining Quality Projects?

Cost of Quality Projects: It is the total amount of money a company spends to prevent poor quality on projects. Poor quality is waste, errors or failures to meet customer needs and system requirements. Cost of quality projects can be broken into 3 categories: Prevention costs these are planned costs to ensure errors are not made during the production process (quality planning costs, information systems costs, quality admin, field testing etc). Appraisal costs include cost of verifying, checking or evaluating a product or service during the delivery process. Failure costs these are costs due to the product or service not meeting the requirements and have to be fixed or repaired or the service has to be repeated.

Global factors driving the LQPCA process in organizations

Factors such as; global competitiveness; dynamic environmental changes; increased task complexity; and internal productivity improvement, have driven the parallel and separate evolution of quality mgt and project mgt. Quality processes can be used to improve project performance.

Well known success stories/cases of LQPCA

Overseas - Apple, Samsung, Boeing, Yahoo, google, Microsoft, Facebook. Africa SABMiller, MTN (Africa, Nigeria), VODACOM (SA), Econet. Zimbabwe Econet (3g,), Dairibord (SAP), Zimplats, Murowa Diamonds, CBZ.

What is the current situation in Zimbabwe regarding LQPCA?-LQPCA?-- challenges & opportunities

Superior quality and project mgt optimize the performance excellence of organizations, but their combined leverage is often underutilized; why? Possible reasons/challenges; Infrastructure connectivity, cost of communication, power, roads Resources financial, human, machinery Corporate governance, corruption Opportunities available vast mineral resources to finance quality projects; the need to be aligned to the global village and best practices.

Critical factors to drive an effective LQPCA in Zimbabwe

The best way to understand the critical factors of managing quality projects is to consider it based on 4 Project Quality Pillars. 1st Project Quality Pillar: Customer Satisfaction 2nd Project Quality Pillar: Process Improvement 3rd Project Quality Pillar: Fact- based management 4th Project Quality Pillar: Empowered performance

1st Project Quality Pillar: Customer Satisfaction

Strategic priority accorded customer satisfaction, achieved by customer focused work systems supported by committed leadership. Balance stakeholder interest those directly and indirectly affected by the project outcome (EMA, Greenpeace, Consumer Council, Employees,etc).

2nd Project Quality Pillar: Process Improvement

Continual (includes both continuous and discontinuous) improvement of work processes to efficiently and effectively achieve the strategic goal of customer satisfaction. Ongoing process improvement results in 3 types of quality improvement namely: Incremental cost reduction- improvement approach that constantly and gradually cut costs and involves every team member in order to maintain the existing project quality system more efficiently. Competitive parity improvement approach to match the best in class of external competitors commercial airlines, ABB, Siemens, Breakthrough dominance involves quantum leaps to out distance the competition and revolutionarily restructure and re-engineer new processes e.g technological industry 3G revolution, internet services, mobile hand sets, ipads etc

3rd Project Quality Pillar: Fact- based management

Focuses on the importance of managing by facts rather than managing by power, hunches or groupthink. To manage by facts involves: Using quality processes to identify and capture data and trends that determine what is factually true about performance and Structures itself to be responsive to diverse stakeholders that voice the truth e.g nuclear energy disasters.

4th Project Quality Pillar: Empowered performance

This entails the empowered daily work performance of continual improvement in personal tasks aligned with the system and within an employees scope of responsibility. Quality Project organizations are those that are described in terms of the norms, values, and reward procedures that emphasize the holistic, competent behavior of individuals oriented toward cooperation with fellow project members. Quality Projects require respect for all people in the project team and organization, regardless of role, since each person is being continually empowered to enhance the effectiveness of the organization.

Where to from here?

The future of LQPCA in Zimbabwes and role of Project Managers lies in; Building on quality not inspecting on quality Application of best known QM process and ISO Certification Eliminating the cost of poor Quality Effective leadership Training

Where to from here? [Cont]

Understanding key stakeholder requirements Designing a quality management process Plan quality Perform quality assurance Perform quality control

Doing it right the first time, quality way of life Quality

Projects will lead to competitive advantage.

Leveraging on Quality Projects for competitive Advantage

THANK YOU Presented by Nhamo Dhlamini (PMP) PMIZ