PMP 18 Flashcards

Terms Definitions
Quality baseline
Kaizen
small, incremental process improvement
Budget reapportionment
Research and Development, Acquisition Cost, and Operation and Maintenance Cost are among the areas of a project's budget that can be adjusted to lower overall cost. Traditionally, the Research and Development phase is 10% of the total cost of a project, while the Acquisition phase is 30%, and the Operation and Maintenance phase is 60%. Shifting these percentages can lower the overall cost of a project.

Suppose a project is expected to cost $200 million. According to the traditional percentages, Research and Development gets $20 million, Acquisition gets $60 million, and Operation and Maintenance gets $120 million. Suppose, too, that increasing the Research and Development amount by 10% causes a 1% increase in the Acquisition Cost and a 15% decrease in the Operation and Maintenance Cost.

Based on the new percentages, Research and Development gets $22 million, Acquisition gets $60.6 million, and Operation and Maintenance gets $102 million. Shifting the percentages saves a total of $15.4 million.
QA Tools
- Quality audits
- Process analysis
Sheward Demming
lifecycle of continuous quality improvement = PLAN DO CHECK ACT
Quality Assurance
Managerial function that focuses, primarily on process improvement. Assess processes to determine areas for what works well, what isn't working well and identifies areas for improvements. Application of planned activities to ensure that the project will employ all processes needed to meet requirements. Also includes continuous process improvement TTs: Process Analysis and Quality Audits
Prevention and inspection
Prevention and inspection have different purposes. Prevention requires careful planning to avoid errors before a project begins. Inspection occurs during project execution or after a project is completed. When defects are found during inspection, rework is required to correct the defects before products are distributed to customers.
Normal distribution
Bell curve used to measure variations
+/- 1 sigma
+/- 2 sigma
+/- 3 sigma
+/- 6 sigma
68.26%
95.46%
99.73%
99.99985%
Does the Plan Quality process result in additions or changes to the PM Plan?
Yes
3 process improvement models
Michael Baldridge, CMM, CMMI
Benchmarking
Used to compare the current project with other similar projects to determine where you should be. Compares common project practices to generate ideas for improvement. Downfall: projects must be similar! This could also cause internal competition
What are operational definitions?
Operational definitions are highly detailed explanations of individual parts of a project, such as activity start and finish dates. Each operational definition states how an individual part is measured according to a project's quality standards. Another name for operational definitions is ''metrics.''

Operational definitions are used during quality assurance to identify areas in which improvements need to be made.
Does a company using JIT need higher quality standards?
Yes
What is quality mgmnt?
Includes creating and following policies and procedures to ensure a project meets the defined needs it was intended to from a customers perspective
Pareto Chart/diagram
Type of histogram, but arranges the results from most frequent to least frequent to help identify which root causes are resulting in the most problems
Marginal Analysis
the point where benefits or revenue from improving quality equals the incremental cost to achieve quality
2 quality improvement models
6 Sigma, Total Quality Managemetn
Outputs of quality planning
Quality Management Plan, Quality Metrics, Quality Baseline, Quality Checklists, Process Improvement Plan
What is JIT
A scheduling technique that demands higher quality. Producing deliverables or improving processes JUST IN TIME . This reduces the cost of things until they are needed and improves cash flow.
Philip Crosby
Quality is Free. By having good quality policies, procedures and control - you won't have to do rework. Will give us payback in the end and therefore it is free
What is grade
Grade refers to the differing levels of product functionality. A high grade of product functionality does not mean that the product is high quality. Similarly, a low grade of product functionality does not mean that the product is low quality.

For example, there are different classes, or grades, of cars. A car from a lower class does not have automatic locks or windows, air conditioning, and cruise control, whereas a car from a higher class has all of those features. If both classes of car function within given specifications or quality standards, then the fundamental difference is in the grade, not the quality.
What is quality
In simplest terms, quality is the extent to which a product suits a customer's needs and expectations. Customers expect not only that products will fulfill certain needs, they also expect products to be readily available, reasonably priced, easy to use, simple to maintain, and reliable.
What is rework
Rework is the corrective action taken to make a defective product conform to a project's quality standards. Reworking a product takes more time and uses more resources than if the product is made correctly the first time. The use of additional time and resources increases the cost of quality, which is the total amount of money and work used to make quality products.
What is rework?
Rework is the corrective action taken to make a defective product conform to a project's quality standards. Reworking a product takes more time and uses more resources than if the product is made correctly the first time. The use of additional time and resources increases the cost of quality, which is the total amount of money and work used to make quality products.
What is quality planning
Quality planning involves defining the quality standards for a project and deciding how to achieve those standards. The scope statement is used as a point of reference during quality planning because it outlines not only the end results of a project, but also the project objectives, which should be in-line with stakeholder expectations.

An important part of quality planning involves making sure quality is part of a product's design from the beginning of a project, since quality cannot be infused into a product through inspection.

It is important to understand that quality planning is not only a component of the <u>quality management</u> variable, but that it is also part of the second step of the project management process -- project planning.
Phillip B. Crosby
Phillip B. Crosby assembled what he called the 14 Steps to Quality Improvement. He also developed Four Absolutes of Quality: a product must measure up to all requirements, error prevention is key to high quality, all projects should strive for ''zero defects,'' and activities should be done correctly the first time.
W. Edward Deming
- 14 points of quality mgmnt
- Plan-do-check-act cycle
- said 85% of quality problems are attributable to management
Objective of Plan Quality
Identify all relevant standards and requirements for the quality of the project.
Perform QC
- The process of ensuring a certain level of quality in a product or service;
- Control means measure which is a main component of this process
What is the Sheward-Demming cycle
PLAN- DO- CHECK - ACT
Describe Pareto Charts
a specific type of histogram ordered by frequency of occurrence that shows how many defects were generated by type or category of identified cause. Is used primarily to identify and evaluate non-conformities. Rank ordering is used to guide corrective action - team should take action to fix the problems that are causing the greatest number of defects 1st. Biggest bang for the buck
Quality Management Plan
How the quality process will be implemented. IDs processes for quality assurance, quality control and continuous process improvement.
How are Deming, Juran, and Crosby important to quality management
Traditional quality performance standards were based on the assumption that defects and errors are inevitable. The following pioneers of quality management practices believed that defects and errors could be predicted and eliminated before taking root:

* Dr. W. Edwards Deming
* Dr. Joseph M. Juran
* Phillip B. Crosby
What is total quality management
Total quality management is the process, directed by upper management, through which a company continuously tries to improve the quality of workmanship and products. The primary aim of total quality management is to organize project planning, product design, and program implementation such that resulting products and services are available to customers at a reasonable cost.
What are project quality audits
Project quality audits are evaluations of a project's quality management system. One purpose of project quality audits is to identify areas that need improvement. It is important to conduct project quality audits because they highlight incidents of deviation from a project's quality objectives.

Project quality audits can be planned or spontaneous, announced or unannounced, and should be conducted by an independent person or group.
What quality-related activities are sometimes overlooked during a project
Quality management should be a priority throughout an entire project. However, project managers deal with numerous distractions that shift attention away from some important quality-related activities. As a project manager, it is essential that you carry out and/or verify the completion of the following quality-related activities:

1. Making sure product design standards are compatible with customer expectations.
2. Listing the materials needed to manufacture a product avoids using inferior materials.
3. Maintaining the project team's focus on quality standards.
4. Checking for over-design, which uses higher-grade materials, thus increasing production cost.
5. Checking for under-design, which cuts corners to keep a project on schedule.
6. Clearly detailing a product's design specifications lessens the risks of miscommunication.
When are project audits conducted
Project audits are conducted before, during, or after a project. The scope of an audit depends on the time at which it is performed. For example:

* Audits done before a project begins concentrate on the technical aspects of a project, such as product design. Auditing a product's design before production begins can be an important first step toward quality improvement.
* Audits conducted during a project may focus on how closely a project is progressing according to the schedule and budget provisions. If a project is behind schedule, an audit can help find the causes.
* Audits conducted after project completion may focus on such things as whether a product meets legal requirements, or the project's actual expenses as compared to budgeted expenses.
What is the main result of Plan Quality?
Quality Mgmnt Plan
Describe control charts
They are SET UP to determine the quality on the project during the Plan Quality process. They are UTILIZED in Perform QC where they determine if a process is within acceptable limits
Perform QA
- Are we using the standards?
- Can we improve the standards?
- To answer these questions, the Perform QA process uses data from quality control measurements. A group outside the project performs QA
Scatter Diagram
Tracks two variables to see if the are related
In order to monitor the number of errors or defects that have been identified and the number than remain undetected, you should 1- design an experiment, 2- use a checklist, c- conduct trend analysis, d- perform an audit
conduct trend analysis
What is attribute sampling
seeing whether the result conforms or does not and variables sampling - the result is rated on a continuous scale that measures the degree of conformity
What are process boundaries
describes the purpose, start and end of processes, their inputs/outputs, data required and owner/stakeholders of the processes
What is gold platting
giving the customer more than the requirements - wastes time and money.
What is statistical quality control
Statistical quality control is used to evaluate the extent of product variation and to identify what changes, if any, must be made to production processes to decrease product variation. Data points on a graph represent incidents of product variation, and a normal distribution curve indicates whether or not the variations are of a degree acceptable for quality standards.
What is a quality policy
A quality policy is a company's statement of how it will produce quality products and what it will do if products are defective. Most often, upper management dictates a quality policy to be implemented by project managers and team members.

Not all quality policies are formal documents. If a company does not have a formal quality policy, then project managers and team members should draft one before starting a new project. It is important that a project's stakeholders know the terms of the quality policy before a project begins.
What kinds of information can be gathered from control chart analysis
Control chart analysis yields information about the consistency of product characteristics. If the control chart reflects instability and unacceptable variations in products, then action is needed to achieve acceptable levels of variation. Control charts also differentiate among random causes of variability.

Control chart analysis is beneficial since it shows at what points in a project alterations must be made to correct unacceptable degrees of variation. Conversely, control chart analysis shows at what points a project is going smoothly and that no changes are needed.
Special causes and random causes
Special causes of variation, which are often caused by human error, are generally unexpected or unanticipated. Random causes, also called common causes, of variation are normal difficulties associated with a certain process, such as equipment failure or faulty product design.

Project team members who contribute to special causes of variation should be able to correct the causes on their own, whereas project managers are responsible for solving random causes of variation since the causes are part of a project's process.
What information should a project audit report
Project quality audit reports are useful tools for project managers. Audit reports contain information such as a project's status at the time of the audit and the status of activities that are most influential to a project's success.

Audit reports often analyze the level of risk, such as likelihood of a project's failure. Knowing the level of risk gives project managers and stakeholders the opportunity to consider ways to lower the risk.

In addition, audit reports should explain any assumptions made and restrictions encountered during the audit. If an auditor made a faulty assumption during an audit, that assumption can taint the accuracy and validity of the information in the audit report.
How should quality planning be included in the initial planning of a project?
Planning quality into a project involves anticipating and preparing for positive and negative situations that may arise during a project. The following items should be included in initial project planning:

* <u>Network planning</u> arranges project activities in a logical order of completion and diagrams the activities for visual reference.
* <u>Time analysis</u> allows comparison between estimated activity duration and actual activity duration.
* <u>Resource analysis</u> allows comparison between the quantity of resources allocated for each project activity and the actual quantity of resources used for each activity.
* <u>Cost analysis</u> enables comparison of money allotted to complete each project activity and the actual amount of money used for completion of each activity.
* <u>Multiple schedules</u> are contingency plans in case something goes wrong with the master schedule.
* <u>Progress reports</u> communicate actual project progress as compared to planned progress, as well as identify any variations in a project schedule or resources.
* <u>Key events</u> signify project status to customers and are used as control points for project managers.
* <u>Deadlines and activity logic</u> account for the earliest and latest possible start dates for all project activities, as well as for activity relationships.
What process will need to be done in determining how to meet plan quality?
Plan Quality Process
Identify the different types of samples
Objective Attributes - something that either has a yes or no outcome. An objective answer - it either meets it or doesn’t. Subjective Attributes -- opinion based. Variables -- things that are not black or white.. The grey area
What is a Histogram
A bar chart showing a distribution of variables. Each column represents an attribute or characteristic of a problem/situation. The height of each column represents the relative frequency of the characteristic. Helps identify the cause of problems in a process by the shape and width of distribution
6 Sigma refers to the aim of setting tolerance limits at 6 standard deviations from the mean, whereas the normally expected deviation of a process is
3 standard deviations
How are checklists useful to quality management
Project quality planning should result in a checklist. Checklists are used to verify that a set of quality control steps has been completed. There are two general kinds of checklists. One kind consists of a series of questions, such as, ''Has Activity X been completed?'' Another kind is an inventory list comprised of such things as activities or expected product characteristics
How does quality control differ from quality assurance, and how are they similar
The difference between quality control and quality assurance is that quality assurance focuses on developing and implementing quality-related activities, whereas quality control focuses on ensuring that the quality-related activities achieve their desired effect.

Quality control and quality assurance are similar in that both components use a project's quality management plan and operational definitions to evaluate whether or not a project and product are achieving the desired levels of quality. The quality control and quality assurance components are also similar in that both result in quality improvement.
Who is responsible for project and product quality?
Upper management, the project manager, team members, vendors, subcontractors, and members of pertinent regulatory agencies are all members of a project's quality team. In general, members of management are 85% responsible for quality since they establish the guidelines, while other project team members are 15% responsible for quality since they must follow the guidelines.
When is a process adjustment used
When quality control measures lead to the discovery of product and process inadequacies, it is sometimes necessary to make a process adjustment. A process adjustment can be either corrective or preventive. Before implementing a process adjustment, it is important to consult the guidelines for making changes to a project. Process adjustments must be made according to a project's specified guidelines.
What are two awards given for excellent quality management practices
Awards for quality management are incentives for companies to excel at providing quality products and services. Awards, sometimes created by government agencies, encourage companies to implement strict quality standards. Two awards for exceptional quality management practices include:

* <u>The Malcolm Baldrige National Quality Award</u>, which was established with the Malcolm Baldrige National Quality Improvement Act in 1987. This Act promotes company knowledge of quality management practices, and the Award recognizes quality-related accomplishments. Criteria for this award include leadership, planning strategies, resource management, and customer satisfaction.
* <u>The Deming Award</u>, which was established by the Union of Japanese Scientists and Engineers. The Union of Japanese Scientists and Engineers bestows the Deming Award based on such things as a company's quality and management policies, organization, policy implementation, and problem-solving capabilities.

Companies can use the standards for the Malcolm Baldrige and Deming Awards to develop organizational and quality policies or to measure the performance of their current quality policies.
<b>Unit Outline</b>
What are the costs of nonconformance to quality?
- Rework
- scrap
- inventory costs
- warranty costs
- lost business
What is the high level description of Perform Quality Control
Are we meeting the standards?
You are leading a research project that will require between 10 -20 aerospace engineers. Some senior-level aerospace engineers are available. They are more productive than junior-level engineers, who cost less and are available as well. You want to determ
DOE (Design of Experiments)- what's the 1 variable that going to give us a big bang improvement.
Differentiate between QA and QC
QA is about improving the process, QC is trying to improve deliverables. QA is organization wide, QC is project specific.
What is the first step in preparing a quality management plan. 1- determine quality metrics, 2- identify the quality standards for the project 3- develop a quality policy 4- identify quality management roles and responsibilities
Develop a quality policy
Process Improvement Plan (plus 4 things in the template)
Plan to identfiy processes that are not essential/not providing value in order to improve customer satisfaction. Includes process boundaries, process configuration, 3- process metrics and 4- targets for improved performance.
What are some basic statistical terms to know when monitoring quality
Quality monitoring involves the use of statistics. Therefore, it is important to know the following basic statistical terms:

* <u>Population</u>. Population refers to the total number of product units produced during a project.
* <u>Sample size</u>. Sample size refers to the number of product units taken from a population for evaluation during a project's quality monitoring process. This number varies depending on the product, the time of the inspection, and a company's needs.
* <u>Mean</u>. Mean refers to the sum of the sample divided by the number of units in the sample. For example, in the sample {2, 3, 4, 3}, the mean is (2 + 3 + 4 + 3)/4. The mean is 3.
* <u>Median</u>. When an odd-numbered set of data is arranged sequentially, the middle number in the set is the median. For example, in the set {2, 4, 7}, the median is 4. When an even-numbered set of data is arranged sequentially, the median is the average of the middle two numbers. For example, in the set {3, 4, 6, 8}, the median is (4 + 6)/2. The median is 5.
* <u>Mode</u>. In a sample of data, the number that occurs most frequently represents the mode. For example, in the set {1, 4, 6, 1, 8, 1}, the mode is 1.
Some procurement issues that impact quality are:
1. The price of materials, with regard to the grade of materials.
2. The amount of time needed for delivery of materials and when the materials are needed.
3. The timely delivery of project materials and tracking materials that are not delivered on time.
4. The contractor's qualifications to complete the kind of work needed for a project.
5. The contractor's bid must be accurate to avoid conflict over contract specifications.
6. The contractor's quality policy, which should be carefully examined for compatibility with a project's quality policy.
What are five major categories related to the cost of quality
It is important for project managers and team members to understand the costs associated with quality improvement. There are five major categories related to the cost of quality:

* <u>Prevention</u>. Prevention costs result from eliminating errors through project planning and execution.
* <u>Appraisal</u>. Appraisal costs result from examining activities for execution errors.
* <u>Internal failure</u>. Internal failure costs result from correcting a defect that is realized before the product is distributed to customers.
* <u>External failure</u>. External failure costs result from correcting a defect after the product has been distributed to customers.
* <u>Equipment</u>. Equipment costs result from acquiring the means necessary to prevent errors and to evaluate activity execution.
What is quality assurance, and why is it important
Quality assurance refers to project activities that are planned and executed to ensure quality products and services.

The goal of quality assurance is the improved quality of a project's processes and improved quality of end products. Any problems encountered during the execution of quality assurance activities must be corrected. Correcting problems can lead to greater efficiency, decreased cost of production, and a higher-quality product.

Quality assurance is important not only because it leads to the correction of problems, but also because it gives project stakeholders and customers confidence that a finished product will be free of defects.

It is important to understand that quality improvement is not only a component of the <u>quality management</u> variable, but that it is also part of the third step of the project management process -- project execution.
Regarding quality, the PM must do four things
1. improve quality
2. determine metrics to measure quality before work begins
3. have a plan to continually improve processes,
4. ensure authorized approaches and processes are followed
Identify the 4 basic aspects of the fishbone diagram
Man, method, material and machine. Looking for the causes of the causes of the causes. AKA - the 5 WHYs
What is the main purpose of the quality deployment process?
Provide better product definition and product development
What are the variables involved in the project management process?
In order to complete a project successfully, several variables must be addressed throughout the five steps of the project management process. These variables include such things as:

* Project scope management
* Time management
* Estimating costs
* Quality standards
* Human resource management
* Communication
* Risk management
* Contracts and procurement
* Integration

It is critical that you have a solid understanding of these variables before beginning the project management process. Each of these variables is made up of components. For example, the quality management variable is broken into the following components: quality planning, quality improvement, and quality control.
What is a quality control system
A quality control system is a means to monitor specific project results and to gauge whether or not those results conform to the project's quality standards. Project managers use data from quality control systems to determine whether or not changes should be made to a project. A good quality control system should:

* Specify the measurements used to determine the degree of conformance or nonconformance.
* Designate someone to check measurement tools to make sure the tools are properly calibrated.
* Compare actual project and product results to the project's quality standards.
What is a quality audit? Which quality process does it belong to
Quality audits are a function of quality assurance and is a formal review of what has been completed on the project processes to determine what has worked and what didn't. Goal is to improve performance for the current project.
When it comes to quality, the law of diminishing return says that
Beyond a certain point, additional investment in quality has a negative ROI
What are some areas in which cost can be saved
When a problem drives up project costs, then it becomes necessary to identify areas in which cost can be reduced. The following areas of a project can be altered to reduce cost:

* Budget reapportionment
* Product functionality
* Inventory

<b>* Budget reapportionment</b>

Research and Development, Acquisition Cost, and Operation and Maintenance Cost are among the areas of a project's budget that can be adjusted to lower overall cost. Traditionally, the Research and Development phase is 10% of the total cost of a project, while the Acquisition phase is 30%, and the Operation and Maintenance phase is 60%. Shifting these percentages can lower the overall cost of a project.

Suppose a project is expected to cost $200 million. According to the traditional percentages, Research and Development gets $20 million, Acquisition gets $60 million, and Operation and Maintenance gets $120 million. Suppose, too, that increasing the Research and Development amount by 10% causes a 1% increase in the Acquisition Cost and a 15% decrease in the Operation and Maintenance Cost.

Based on the new percentages, Research and Development gets $22 million, Acquisition gets $60.6 million, and Operation and Maintenance gets $102 million. Shifting the percentages saves a total of $15.4 million.

<b>* Product functionality</b>

Testing a new product's functionality and correcting any errors before releasing it to customers can reduce external failure costs. However, it is important to compare the testing costs to the possible external failure costs, since testing costs are not always lower than external failure costs.

<b>* Inventory</b>

Adjusting inventory can cut back on project costs. For example, just-in-time inventory keeps on-hand only the amount of resources immediately necessary for part of a project. Just-in-time inventory lowers cost by eliminating such things as inventory surpluses and the need for inventory storage space. This practice is also called ''zero inventory.''

Just-in-time inventory becomes risky when suppliers are unable to provide resources on-demand. If suppliers are under-stocked, finding resources elsewhere takes time and can be expensive.
1. If situation is looking forward in time
2. Situation looking back in time at project results
3. Situation looking back in time at processes
1. Most likely a planning function
2. most likely quality control
3. most likely quality assurance
Ways to describe cause and effect diagrams
- Creative way to look at problem;
- helps stimulate thinking, organizes thoughts, and generates discussions;
- used to explore the factors resulting in desired outcome
What conditions must be met in order to conduct a credible audit?</
In order for a quality audit to be credible, it is important that the person or group conducting the audit is independent from the organization whose project is the focus of the audit. Auditors should never be involved in conflicts that occur within a project's parent organization since involvement in such conflicts could jeopardize the credibility of the audit.

A quality audit cannot be credible unless the person or group conducting the audit is qualified to analyze project data. Qualifications vary depending on the project and the level of detail necessary for the audit.

In addition, the person or group conducting the audit must have open access to all project data and members of a project team. Without access to the proper information and personnel, the audit cannot be conducted effectively.
What is cost of quality, and how is it classified for a project?
Cost of quality refers to the amount of money and resources used to make sure a project's quality standards are met. There are two basic classifications for the cost of quality:

* <u>Cost of conformance</u>. Conformance is the extent to which products meet quality standards. The cost of conformance is the total amount of money and resources used to make sure goods and services meet a project's quality standards. Conformance costs include such things as project planning, error-prevention activities, maintenance, training programs, product testing, and quality audits.
* <u>Cost of nonconformance</u>. Nonconformance is the extent to which products deviate from quality standards. The cost of nonconformance is the total amount of money and resources used to correct problems so that goods and services meet a project's quality standards. Nonconformance costs include such things as rework, recalled products, and responding to customer complaints.
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