Project Management Methodologies PPMP20009 Week 9 Lecture Week 9: Quality Management and Continuous Improvement • What is Continuous Improvement? • What is Quality Management? There are six quality...

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Project Management Methodologies PPMP20009 Week 9 Lecture Week 9: Quality Management and Continuous Improvement • What is Continuous Improvement? • What is Quality Management? There are six quality management concepts that should exists to support each and every project (Kerzner, 2013, p 1029): i. Quality Policy ii.Quality Objectives iii.Quality Assurance iv.Quality Control v.Quality Audit vi. Quality Program Plan The PDCA (Plan-Do-Check-Act) cycle as the basis for quality improvement as defined by Shewart and modified by Deming (PMBoK ver 5, p 229): Example of quality improvement initiatives includes: - Total Quality Management - Six Sigma - Lean Six Sigma In relation to outcomes & outputs – fill in the boxes This Week Theme: Continuous Improvement Quality Management Change Management Quality Management What is it? Quality Management • Seek to minimise variation and to deliver results that meet defined requirements – Customer Satisfaction – Prevention over inspection – Continuous improvement – Management responsibility – Cost of Quality (CoQ) Create your own Deming PDCA cycle relating to the last assignment that you handed in. “Quality is the result of a carefully constructed cultural environment. It has to be the fabric of the organization, not part of the fabric.” Philip B. Crosby 1926-2001 Expert comparisons Deming Juran Crosby Definition of Quality Continuous improvement Fitness for use Conformance to requirements Application Manufacturing driven companies Technology driven companies People driven companies Target audience Workers Management Workers Emphasis on type of tools Tools/system Statistical process control Measurement Analytical, decision-making and cost of quality Minimal use Use of goals and targets Not used Used for breakthrough projects Posted goals for workers Cost of Quality What is it? Prevention Costs Internal Failure Costs Appraisal Costs External Failure Costs Cost of Quality Quality Management Plan • A component of the project management plan • Describes how: – The organisations’ quality policies will be implemented. – The project management team plans to meet the quality requirements of the project. Process Improvement Plan • A component of the project management plan • Describes steps for analysing PM and product development processes to identify activities that enhance value. • Considers: – Process boundaries – Process configuration – Process metrics – Targets for improved performance. Taguchi Approach • Quality should be designed into the product not inspected into it. • Quality is best achieved by minimising the deviation from a target. • The cost of quality should be measured as a deviation from the standard and the losses should be measured system-wide. The Malcolm Baldrige National Quality Award • Leadership • Strategic planning • Customer and market • Information and analysis • Human resource development and management category • Process management • Business results ISO 9000s • ISO 9000 – Defines the key terms and acts as a roadmap for the other standards in the series • ISO 9001 – Defines the model for a quality system in relation to designing, producing and installing products or services • ISO 9002 – A Quality system model for quality assurance in production and installation • ISO 9003 – A quality system model for quality assurance in final inspection and testing • ISO9004 – Provides quality management guidelines for any organisation wishing to develop and implement a quality system. Change Management Formulate change Plan change Implement change Manage transition Sustain change Change Management Formulate change • Identify: – the need for change – lead and other change management resources – stakeholders and their expectations in the change • Coordinate change management activities with those done in program management • Define change management scope • Begin change communication Change Management Plan change • Define: – The change approach – Sequence, resource and budget CM activities – Measures of benefits realisation • Clarify risks to change acceptance, adoption and realisation and plan abatement activities • Plan – Stakeholder engagement – Transition and integration Change Management Implement change process • Prepare organisation for change • Mobilise stakeholders • Deliver project Outputs Change Management Manage Transition • Transition outputs into business • Measure adoption rate and Outcomes/Benefits Change Management Sustain Change • Ongoing consultation and representation of stakeholders • Conduct sense-making activities • Measure benefits realisation Take the ‘Act’ segment of the PDCA cycle you created earlier and define the five CM stages. Formulate change Plan change Implement change Manage transition Sustain change Tutorial 9 1. Readings: Mandatory Readings • Kerzner Chapter 20.0-20.8, & 21.0-21.4; • PMI Implementing Organizational PM PM Appendices X2 & X3; (http://marketplace.pmi.org/Pages/ProductDetail.aspx?GMProduct=00101 500501) • PMI Managing Change Chapter 6; (http://marketplace.pmi.org/Pages/ProductDetail.aspx?GMProduct=00101 469401) Make sure you have done the readings. 2. Answer following Questions to reflect and assist in your Portfolio  How do you describe ‘Continuous Improvement?  In your own life, give an example where you have continuous improvement.  What is quality? And how does continuous improvement impact on quality?  Describe the history for the quality movement  How do you ensure quality in what you do in life?  Describe the processes you have introduced to ensure you deliver quality.