Virtual Site Event Quality Management Beyond the PMBOK

Virtual Site Event

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Quality Management Beyond the PMBOK

Presented by:Christopher MaddoxOctober 15, 2014

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© 2014 Capstan Performance LLC

Quality ManagementBeyond the PMBOK®

Project Management Institute Baltimore Chapter

15 October 2014

This Presentation © 2014 Capstan Performance LLC. For use only by PMI members for non-profit educational purposes without express written consent of the copyright holder. Dilbert cartoons © United Features Syndicate and are used under Fair Use doctrine for educational purposes.

Christopher E. Maddox, PMP, MBA



An Opening Thought



• QM Definitions – Quality and Grade •Quality and Risk•The Economics of Quality•Understanding Cause and Effect•Statistical Tool Cautions and Tips

Topics



QUALITY“the degree to which a set of inherent characteristics fulfill requirements”

GRADE“category or rank used to distinguish items

that have the same functional use but do not share the same requirements for

quality”

Quality Management Definitions

Project Management Institute, A Guide to the Project Management Body of Knowledge (PMBOK® Guide) – Fifth Edition, Project Management Institute, Inc., 2013 Pages 542 and 556




“Sports Car” “Sports Car”

WHICH IS HIGHER GRADE?



WHICH IS HIGHER QUALITY?


“Zero to 60 in under 5 seconds”



WHICH IS HIGHER QUALITY?


“Minimum 28 MPG”



Quality and Risk



• Quality management ALWAYS involves assessment of risk

• Risks to consider– Risk related to process capability– Risk related to sampling/inspection error– Risk related to poor quality (scrap, recalls,

reputation, liability, etc)• Complete elimination of risk is

impractical in terms of time and cost; risk-based mitigation strategies are at the heart of effective QM

• Understanding risks is the first step towards prevention of quality problems

Quality and Risk



• Understanding Quality / Cost / Risk Relationships– Define Acceptable Quality Level– Determine Costs of Compliance and

Noncompliance• Acceptable Quality Level

– What are the user requirements / specifications?

– What AQL is needed to meet them?• Cost of Compliance

– What is the cost of compliance (process, management, QA, QC)?

• Cost of Noncompliance– What is the cost and risk of poor quality

(scrap, returns, etc)?

The Economics of Quality




95% 100%

QUALITY LEVEL - ACCEPTABLE WIDGETS

CO

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S /

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$ 0

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95% 100%

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95% 100%

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POINT OF LOWEST COST




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POINT OF LOWEST COST

(Risk Averse Case)

RI

SK



• Investing in Quality– FIRST invest in capable processes– NEXT invest in Quality Assurance– LAST invest in Quality Control

• Consider in your Risk Assessment…– Cost of lost customers– Cost of lost reputation– Cost of liability

• Accepting less than Six Sigma Quality may not be sufficient to mitigate your risks!




So… what the heck is Six Sigma?



• A measure of process capability• The simple definition

– A process capable of producing not more than 3.4 defects per 1,000,000 opportunities

– That’s 99.9997% “Good”• The slightly-more-complex definition

– Acceptance range of the process is 3 standard deviations (SD, Sigma or σ) of the process’ normal distribution on either side of the desired specification point

Six Sigma



Six Sigma Quality

NU

MB

ER

OF

OB

SE

RV

AT

ION

S

DEVIATION BELOW SPECIFICATION

DEVIATION ABOVE SPECIFICATION



Six Sigma

NU

MB

ER

OF

OB

SE

RV

AT

ION

S



“NORMAL” Distribution

Curve

Specification



Six Sigma

NU

MB

ER

OF

OB

SE

RV

AT

ION

S



ACCEPTANCE CRITERIA

Specification

“NORMAL” Distribution

Curve



Six Sigma

NU

MB

ER

OF

OB

SE

RV

AT

ION

S



1σ

2σ

3σ

99.9997%

68%

95%

NOT A SIX SIGMA PROCESS!



Conforming to Six Sigma

NU

MB

ER

OF

OB

SE

RV

AT

ION

S



1σ

2σ

3σ

99.9997%

68%

95%

IMPROVE PROCESS CAPABILITY



Conforming to Six Sigma

NU

MB

ER

OF

OB

SE

RV

AT

ION

S



1σ

2σ

3σ

99.9997%

68%

95%

WIDEN THE ACCEPTANCE CRITERIA



Understanding Cause and Effect



• PMBOK®– Pareto Chart

• Categorizes failure modes and prioritizes attention• Does not establish specific causal relationships

– Ishikawa (Fishbone) Diagram• Qualitative, not ideal for complex systems with

multiple causes and effects

• Other Tools– Causal Circle

• Explores cause-effect relationships of undesirable effects (UDEs) – well suited to complex systems

– Failure Mode and Effect Analysis (FMEA) • Similar to risk register - analyzes and prioritizes

potential failures, effects and CAPAs according to probability/severity

Understanding Cause and Effect



Causal CircleUDEs (Tablet Compression Project)1. Tablet chipping2. Tablet hardness variation3. Coating is not uniform4. Tablets under weight5. Press force drifting during process6. Granulation density low7. Press process too slow8. Speed control past limit

1. List and Number UDEs



Causal Circle1

8 2

7

5

3

6 4

UDEs1. Tablet chipping2. Tablet hardness variation3. Coating is not uniform4. Tablets under weight5. Press force drifting during process6. Granulation density low7. Press process too slow8. Speed control past limit

2. Arrange numbers in circle



Causal Circle1

8 2

7

5

3

6 4


3. Establish Relationship between UDE 1 and others



Causal Circle1

8 2

7

5

3

6 4


4. Repeat for all UDEs



Causal Circle1

8 2

7

5

3

6 4


5. Tabulate incoming and outgoing arrows for each

UDE IN OUT

1 5 1

2 3 3

3 3 0

4 4 1

5 2 3

6 0 5

7 0 1

8 1 4



Causal Circle1

8 2

7

5

3

6 4


6. Identify drivers, outcomes, contributors

UDE IN OUT

1 5 1

2 3 3

3 3 0

4 4 1

5 2 3

6 0 5

7 0 1

8 1 4

D

D

O

O

O

C

C

DRIVER

DRIVER

DRIVER

OUTCOME

OUTCOME

OUTCOME

CONTRIBUTOR

CONTRIBUTOR

D



Statistical Tool Cautions and Tips



• Fishbone: Beware that correlation ≠ causality (use Causal Circle for complex systems)

• Control Charts: Look for off-center trends; plot a distribution if you have enough data

• Pareto Charts: Beware that all items must be a direct cause of the defect or you can draw invalid conclusions

• Scatter Plots: Do these in Excel and you can easily plot trend lines, derive formulas and R-squared values

• Statistical Sampling: Subject to errors; know how to calc margin of error so you can create a valid sampling plan

Statistical Tool Cautions and Tips



• Understand what quality is, and who defines it• Good quality management is dependent on good

risk management• Understanding the economics of quality is a

competitive advantage• Process capability is the most important factor in

quality and usually the most cost effective in the long run

• Determining cause, effect and failure mode is the only way to anticipate and investigate failure and continuously improve

• Understand what tools and statistics are telling you

Quality Management is profitable unless it is just a buzzword

Summary



Questions? Comments?



Thank You!

This Presentation © 2014 Capstan Performance LLC. For use only by PMI members for non-profit educational purposes without express written consent of the copyright holder. Dilbert cartoons © United Features Syndicate and are used under Fair Use doctrine for educational purposes.

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Virtual Site Event Quality Management Beyond the PMBOK

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