Key Takeaways
- Quality is defined as the degree to which a set of inherent characteristics fulfills requirements - it is about meeting requirements, not exceeding them
- Cost of Quality (COQ) includes Cost of Conformance (prevention and appraisal) and Cost of Nonconformance (internal and external failure costs)
- The 7 Basic Quality Tools are: cause-and-effect diagrams, flowcharts, check sheets, Pareto diagrams, histograms, control charts, and scatter diagrams
- Prevention costs (training, planning) are less expensive than appraisal costs (testing, inspection), which are less expensive than failure costs (rework, warranties)
- Quality management follows the principle: plan quality into the project rather than inspect it in
Planning & Managing Quality
Quality management is about ensuring the project produces deliverables that meet requirements and satisfy stakeholder expectations. The focus is on prevention rather than inspection - building quality in rather than inspecting defects out.
Quality Management Processes
| Process | Purpose | Key Output |
|---|---|---|
| Plan Quality Management | Identify quality requirements and standards | Quality Management Plan |
| Manage Quality | Translate quality plan into executable activities | Quality Reports |
| Control Quality | Monitor and record quality results | Verified Deliverables |
Quality vs. Grade
| Concept | Definition | Example |
|---|---|---|
| Quality | Degree to which characteristics fulfill requirements | A product works as specified |
| Grade | Category assigned based on functional use | Business class vs. economy class |
- Low quality is always a problem (defects, rework, customer dissatisfaction)
- Low grade may be acceptable (a basic product that works as designed)
Cost of Quality (COQ)
Cost of Quality = Cost of Conformance + Cost of Nonconformance
Cost of Conformance (Good Money)
Investment to prevent failures from occurring:
| Category | Description | Examples |
|---|---|---|
| Prevention Costs | Preventing defects before they occur | Training, planning, process documentation, equipment |
| Appraisal Costs | Evaluating products for quality | Testing, inspection, audits, quality reviews |
Cost of Nonconformance (Bad Money)
Costs incurred due to failures:
| Category | Description | Examples |
|---|---|---|
| Internal Failure Costs | Defects found before delivery | Rework, scrap, re-testing |
| External Failure Costs | Defects found by customer | Warranties, returns, lawsuits, lost reputation |
COQ Principle
Prevention is cheaper than inspection, which is cheaper than failure.
LEAST COSTLY MOST COSTLY
↓ ↓
Prevention → Appraisal → Internal Failure → External Failure
COQ Example
| Category | Amount | % of Total |
|---|---|---|
| Prevention | $50,000 | 10% |
| Appraisal | $100,000 | 20% |
| Internal Failure | $150,000 | 30% |
| External Failure | $200,000 | 40% |
| Total COQ | $500,000 | 100% |
The goal is to shift spending toward prevention to reduce overall COQ.
Quality Management Plan
The Quality Management Plan describes how quality policies will be implemented:
| Component | Description |
|---|---|
| Quality Standards | Standards and regulations to follow |
| Quality Objectives | Measurable quality goals |
| Quality Roles | Responsibilities for quality activities |
| Deliverables Subject to Review | What will be inspected or tested |
| Quality Control Activities | How quality will be verified |
| Quality Tools | Techniques and tools to be used |
The 7 Basic Quality Tools
These tools, originally proposed by Dr. Kaoru Ishikawa, are fundamental for quality management:
1. Cause-and-Effect Diagrams (Fishbone/Ishikawa)
Identifies potential causes of problems:
- Structure: Problem at the "head," major categories as "bones"
- Categories: Often use 6Ms - Manpower, Methods, Materials, Machines, Measurement, Mother Nature (Environment)
- Purpose: Root cause analysis using "5 Whys"
2. Flowcharts
Shows process steps and decision points:
- Purpose: Visualize processes, identify waste or problems
- Use: Process improvement, documentation
3. Check Sheets (Tally Sheets)
Structured form for collecting data:
- Purpose: Collect data consistently
- Use: Defect tracking, frequency analysis
4. Pareto Diagrams (80/20 Rule)
Bar chart showing problems in descending order:
- Principle: 80% of effects come from 20% of causes
- Purpose: Prioritize problems to address first
- Use: Focus improvement efforts on biggest issues
5. Histograms
Bar chart showing distribution of data:
- Purpose: Visualize data patterns and variation
- Shows: Central tendency, dispersion, shape of distribution
6. Control Charts
Monitor process stability over time:
| Element | Purpose |
|---|---|
| Center Line | Mean or target value |
| Upper Control Limit (UCL) | +3 standard deviations |
| Lower Control Limit (LCL) | -3 standard deviations |
Rule of Seven: 7 consecutive points on one side of the mean (but within limits) indicates the process is out of control.
7. Scatter Diagrams
Plot two variables to show correlation:
- Purpose: Identify relationships between variables
- Shows: Positive, negative, or no correlation
Additional Quality Tools
Design of Experiments (DOE)
Statistical method for identifying optimal conditions:
- Tests multiple variables simultaneously
- Identifies which factors most affect results
- More efficient than one-at-a-time testing
Statistical Sampling
Inspecting a subset rather than 100% of items:
| Sampling Type | Description |
|---|---|
| Attribute Sampling | Conforming/not conforming (pass/fail) |
| Variable Sampling | Measuring on a continuous scale |
Quality Metrics
Quality Metrics define what will be measured and how:
| Metric Type | Example |
|---|---|
| Defect Rate | Number of defects per 1000 units |
| Customer Satisfaction | Survey score (1-10 scale) |
| Process Compliance | % of processes followed correctly |
| Rework Rate | % of work requiring rework |
| On-Time Delivery | % of deliverables delivered on time |
Manage Quality vs. Control Quality
| Manage Quality | Control Quality |
|---|---|
| Translates plans into executable activities | Monitors and records quality results |
| Process-focused | Product-focused |
| Audits and process analysis | Inspection and testing |
| Continuous improvement | Verification of deliverables |
| Proactive | Reactive |
Quality Principles
Key Quality Concepts
| Principle | Description |
|---|---|
| Customer Satisfaction | Meet customer requirements |
| Prevention over Inspection | Build quality in, don't inspect it in |
| Continuous Improvement | Kaizen - always seeking to improve |
| Management Responsibility | Leadership must support quality |
| Cost of Quality | Invest in prevention to reduce total cost |
Quality Gurus and Concepts
| Guru | Key Concept |
|---|---|
| Deming | Plan-Do-Check-Act (PDCA), 14 Points |
| Juran | Quality Trilogy (Planning, Control, Improvement) |
| Crosby | Zero Defects, Quality is Free |
| Ishikawa | 7 Basic Quality Tools |
Key Takeaways
- Quality is meeting requirements, not exceeding them
- Cost of Quality = Conformance + Nonconformance costs
- Prevention is cheaper than inspection or fixing failures
- The 7 Basic Quality Tools are essential for quality management
- Manage Quality is proactive; Control Quality is reactive
- Quality should be planned and built in, not inspected in
A project manager invests in training team members on quality standards before development begins. This is an example of which Cost of Quality category?
A control chart shows seven consecutive data points above the mean but within the control limits. This indicates:
Which quality tool would be MOST useful for prioritizing defects to address first based on their frequency of occurrence?