1. business and industrial
2. business operations
3. management
4. project management

Apply Quality
Management Techniques
Introduction to Project Quality
Certificate IV in Project Management 17871
Qualification Code BSB41507
Unit Code BSBPMG404A
BSBPMG404A Apply Quality Management Techniques
What Is Quality?
• The International Organization for Standardization (ISO)
defines quality as ‘the degree to which a set of inherent
characteristics fulfils requirements’ (ISO9000:2000).
• Quality can also be based on conformance to
requirements and fitness for use.
• Conformance to requirements - The project’s processes
and products meet written specifications.
• Fitness for use - A product can be used as intended in
the design
BSBPMG404A Apply Quality Management Techniques
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Conformance vs Fitness Example
• Many people fail to understand the difference between
‘Conformance to Requirements’ and ‘Fitness for Use’, here is an
example…
• I need to buy a new car that can safely get me from Sydney to the
Gold Coast. If this is my only requirement then I can buy any car on
the market, and it would make sense to buy the cheapest possible
car, as it would be meet ‘Fitness for Use’ criteria.
• Why then, do I wait to buy the new Subaru Outback V6 turbo diesel?
• It is probably due to the fact that I had other non stated requirements
such as wanting an All Wheel Drive; a brand preference for Subaru;
and a high safety expectation.
• Buying the cheapest car would have met the ‘Fitness for Use’
criteria, but buying the Subaru meets my ‘Conformance to
Requirements’ criteria.
BSBPMG404A Apply Quality Management Techniques
What Is Project Quality Management?
•
Project quality management ensures that the project
outcomes will satisfy the needs for which the project
was undertaken
•
It is critical to plan for quality outcomes.
•
Quality planning involves identifying which quality
standards are relevant to the project, product and
deliverables and how these will be –
 Included in the design and build processes – Quality Assurance
 Checked for conformance on completion – Quality Control
BSBPMG404A Apply Quality Management Techniques
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What Is Project Quality Management?
• Project quality management addresses the quality
requirements of the overall project and any products or
deliverables are produced
• The quality measures and techniques used are unique to
the characteristics of the product
• Project quality management is compatible with many
different types of quality management approaches such
as Six Sigma, Total Quality Management and ISO
(International Organisation for Standardisation)
BSBPMG404A Apply Quality Management Techniques
Basic Principles of Quality Management
• Quality management complements project management, both
disciplines recognise the importance of –
 Customer satisfaction
 Prevention over inspection
 Continuous improvement
• Customer satisfaction – defining requirements and managing
expectations so that customer requirements are met
• Prevention over inspection – quality should be built in to the
processes used to produce product and deliverables as the cost of
preventing defects is less than the cost of fixing them at the end
• Continuous improvement – learning from previous projects is built
into future projects to ensure improvement, learnings can also be
incorporated during project execution
BSBPMG404A Apply Quality Management Techniques
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Project Quality Responsibilities
• Project Managers are ultimately responsible for quality
management on their projects
• Many large organisations have internal quality and risk
management departments that should be able to assist
with the identification of relevant standards and
methodologies, as well as internal policies and
procedures
• Project Managers must seek out the quality standards
relevant to –
 their industry,
 the project, and
 the product
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The Importance of Quality Management
• Failure to meet the quality requirements is a common
reason for project failure and can have serious negative
results
• The quality of the end product of a project is critical,
things can go drastically wrong if the end product does
not meet the requirements
 People can die if machinery and medical equipment
malfunctions
 People can loose their money if new banking systems don’t
work correctly
 Space missions can fail if there are errors in project
execution
BSBPMG404A Apply Quality Management Techniques
Quality Management Terms for Projects
Quality –
 the degree to which a set of inherent characteristics fulfill the
requirements
Cost of Quality –
 total cost of all efforts related to quality throughout the project
or product development lifecycle
Quality Audit –
 the process of examing the quality system or quality
management plan, often carried out by an internal or external
quality auditor or an audit team. A key element in the ISO
quality system.
BSBPMG404A Apply Quality Management Techniques
Quality Management Terms for Projects
Quality Assurance –
 quality activities that are built in to the processes used to
create the product and deliverables, can be performed by a
manager, client, or even a third-party reviewer. E.g. reviews,
process checklists and quality audits.
Quality Control –
 quality activities performed at the completion of a product or
deliverable, used to verify that deliverables meet the
requirements and that they are complete and correct. E.g.
inspection and testing.
BSBPMG404A Apply Quality Management Techniques
Quality Assurance vs Quality Control
• Quality control and quality assurance are important concepts, yet
most project managers have only a vague understanding of the
meanings and the differences between these terms.
• Quality Assurance –
 Quality assurance activities are focused on the process used to
create the deliverable.
 periodically evaluating overall project performance to ensure the
project will satisfy the relevant quality standards.
• Quality Control –
 Quality control activities are focused on the deliverable itself
 monitoring specific project results to ensure that they comply with
the relevant quality standards
BSBPMG404A Apply Quality Management Techniques
Quality Assurance vs Quality Control
An important distinction –
Quality Assurance
Quality Control
During Development
On Completion
Finding and correcting defects during quality assurance
is much cheaper than finding and correcting
defects during quality control
BSBPMG404A Apply Quality Management Techniques
Quality Assurance vs Quality Control
• Many people fail to understand the difference between
‘Quality Assurance’ and ‘Quality Control’, here is an example…
• My husband recently started to do the grocery shopping and he very
diligently follows the shopping list and tries as hard as possible to
bring home everything on the list.
• Unfortunately, sometimes when he gets home some of the produce
doesn’t meet my requirements. The avocadoes are too hard and the
strawberries are often mouldy. In this case the ‘Conformance to Requirements’
criteria has been met as he got everything on the list, but the ‘Fitness for Use’ criteria
has not.
• Other times he won’t have bought everything on the list as he couldn’t
find it in his preferred supermarket. This can be a problem when I
need mushrooms for the beef stroganoff that I wanted to make that
night. In this case, neither ‘Conformance to Requirements’ nor ‘Fitness for Use’
criteria have been met.
BSBPMG404A Apply Quality Management Techniques
Quality Assurance vs Quality Control
• What Quality Assurance processes are evident in my
husband’s grocery shopping process?
 I prepare a detailed list and he works from that list whilst he is shopping
 He checks the list during his shopping trip to ensure he has everything
• What Quality Control processes are evident in my husband’s
grocery shopping process?
 I check the quality of the produce when he returns home
 I check that he has bought everything on the list
• What Improvements could be made to the process in order to
increase Quality?
 He can have an alternate process if his preferred supermarket is out of
something, then he can go to another supermarket for the additional items
 I can train him to select better produce
BSBPMG404A Apply Quality Management Techniques
International Organisation for Standardisation
• ISO (International Organization for Standardization) is the world's
largest developer and publisher of International Standards.
• ISO is a network of the national standards institutes of 161 countries,
one member per country, with a Central Secretariat in Geneva,
Switzerland, that coordinates the system.
• ISO is a non-governmental organisation that forms a bridge between
the public and private sectors. Many of its member institutes are part
of the governmental structure of their countries, or are mandated by
their government. Other members have their roots uniquely in the
private sector, having been set up by national partnerships of industry
associations.
BSBPMG404A Apply Quality Management Techniques
ISO Quality Standards
• ISO 9000 is a quality system standard that  is a three-part, continuous cycle of planning, controlling, and
documenting quality in an organization.
 provides minimum requirements needed for an organization to
meet its quality certification standards.
 helps organisations around the world reduce costs and improve
customer satisfaction.
• The most commonly implemented family of quality
standards is ISO 9001:2008 - Quality management
systems – Requirements
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Standards Australia
• Standards Australia is the nation’s peak non-government Standards
organisation. It is charged by the Commonwealth Government to
meet Australia’s need for contemporary, internationally aligned
Standards and related services.
• The work of Standards Australia enhances the nation’s economic
efficiency, international competitiveness and contributes to
community demand for a safe and sustainable environment.
• It leads and promotes a respected and unbiased Standards
development process ensuring all competing interests are heard,
their points of view considered and consensus reached.
• Standards are printed by their publishing company SAI Global,
where you can purchase any ISO, AS (Australian Standard) or IEC
(International Electrotechnical Commission) standards.
BSBPMG404A Apply Quality Management Techniques
Common Quality Standards
• There are many common quality standards available that
cover different industries
 AS ISO 10006:2003 – Quality management system –
guidelines for quality management in projects
 BCA 2008 and BCA 2009 - Building Codes of Australia
 ISO 22000 - Food Safety
 AS/NZS 4801:2001 - Occupational health and safety
management
 ISO 14000/ 14001 - Environmental Management Standard
 ISO/IEC 15504 - Software Process Improvement and
Capability dEtermination (SPICE)
 ISO/IEC 25000:2005 - Software product Quality Requirements
and Evaluation (SQuaRE)
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Different Quality Tools and Techniques
• There are many different quality tools and techniques,
the selection of these is determined by –
 the type of product being delivered by the project,
 organisational policies and procedures, and
 selected external standards
Quality
Standards
Control
Charts
Inspection
Statistical
Sampling
Design of
Experiments
Cost of
Quality
Pareto
Chart
Histograms
Quality
Management
Methodologies
Cost-Benefit Benchmarking
Cause &
Flowcharting Effect Diagrams
Analysis
BSBPMG404A Apply Quality Management Techniques
Run
Chart
Failure
Mode
(FMEA)
Quality Management Methodologies
Six Sigma –
 mathematically based process improvement approach
focusing on customer satisfaction and defect reduction, used
first at Motorola and used extensively at GE Corporation
Total Quality Management (TQM) –
 management strategy that embeds awareness of quality in all
organisational processes. TQM has been widely used in
manufacturing, as well as NASA space and science
programs
Other Proprietary Methodologies –
 Lean Six Sigma, Quality Function Deployment, Deming,
Juran, Cosby etc
 Can be selected by your organisation for quality
management purposes
BSBPMG404A Apply Quality Management Techniques
Deming’s Quality Equation
Results of Work Efforts
Quality
=
Total Costs
Increased Quality
Focus on Quality
Decreased Costs
Decreased Quality
Focus on Cost
Increased Costs
BSBPMG404A Apply Quality Management Techniques
Quality Tools and Techniques
Benchmarking –
generates ideas for quality improvements by comparing
specific project practices or product characteristics to
those of other projects or products within or outside the
performing organisation, relates to lesson learnt
Cost Benefit Analysis –
 Primary benefits of meeting quality requirements are less
rework, higher productivity, lower costs and increased
stakeholder satisfaction. Compares the cost of the quality
activity with the benefits.
Flowcharting and Process Analysis–
 Graphical representation of a process that helps to identify
potential quality problems. Examination of process efficiency
and failures
BSBPMG404A Apply Quality Management Techniques
Quality Tools and Techniques
Cost of Quality –
Totals all costs incurred in quality assurance and quality
control activities over the life of the project, product or
deliverable. Includes cost of rework and defect
rectification.
Cost of Conformance
Prevention Costs
• Training
• Documented processes
• Equipment
• Time to do it right
Appraisal Costs
• Testing
• Destructive testing losses
• Inspections
BSBPMG404A Apply Quality Management Techniques
Cost of Non Conformance
Internal Failure Costs
• Rework
• Scrap or waste
External Failure Costs
• Liabilities
• Repairs under warranty
• Lost business
Quality Tools and Techniques
Control Charts –
Statistical method used to determine if a project or
production process is stable and has predictable
performance. The upper and lower limits relate to the
requirements.
Statistical Sampling –
 Examines a selection or sample group of outputs, products or
deliverables for conformity to the requirements and quality
standards
Design of Experiment  Statistical method for identifying the factors that have the
most influence over the quality of the end product,
determines the accuracy of testing activities
BSBPMG404A Apply Quality Management Techniques
Quality Tools and Techniques
Inspection –
Examination of a deliverable or product to determine if it
meets the documented quality standards and
requirements
Cause and Effect Diagrams –
 Ishikawa or fishbone diagrams. Illustrate the linkages
between quality problems and their potential causes
Failure Mode Effects Analysis –
 More comprehensive that Cause and Effect Diagrams,
involves determining ALL potential failures, the impacts of the
failures and actions to both manage and prevent failures
BSBPMG404A Apply Quality Management Techniques
Quality Tools and Techniques
Histograms –
 Bar chart used to document the frequency with which certain
events (defects or failures) occur
Pareto Charts or Pareto Diagrams –
Type of histogram that is ordered by frequency of
occurrence. It shows the defects generated by the
categories of the identified causes
Run Chart  Similar to a control chart but doesn’t display the upper and
lower performance limits, shows total variation in a process
over time to enable trend analysis
BSBPMG404A Apply Quality Management Techniques
Meeting Quality Outcomes
To meet the quality requirements, Project Managers must –
 Ensure that detailed requirements and specifications are
documented and agreed with stakeholders
 Understand the relevant quality standards for their industry
and product
 Understand and follow organisational quality methodologies,
policies and procedures
 Plan for quality assurance and quality control activities in
detail
 Detail the impacts of change requests on quality
requirements and processes
 Ensure that defects are repaired and monitored
BSBPMG404A Apply Quality Management Techniques
Next Steps
Proceed to Quality Processes
in the Learning Program.
Best of Luck!
This is due at the end of Week 8 in the Course Delivery Schedule
BSBPMG404A Apply Quality Management Techniques