Quigley Business & Management / Project Management Pries Finding ways to improve margins can be the difference between organizations that thrive and those that simply survive during times of economic uncertainty. Describing why cost reductions can be just as powerful as increases in revenue, Total Quality Management for Project Management explains how to QualityTotal ManagementProject Management for integrate time-tested project management tools with the power of Total Quality Management (TQM) to achieve significant cost reductions. Detailing the ins and outs of applying project management methods to TQM activities, the book provides the understanding you’ll need to enhance the effectiveness of your TQM work. To clear up any confusion about what a true quality improvement is, it includes sections that cover the fundamentals of total Total Quality quality management and defines the terms used throughout the text. The book examines profitability as it relates to product cost—including the initial work determining investment paybacks. It compares TQM/PM versus Six Sigma and illustrates the use of scrum in the context of TQM for improving Management quality initiatives. Complete with real-world success stories that facilitate comprehension, it illustrates methods that can help to minimize distractions and keep your team focused. The authors consider the full range of quality improvement tools as applied for Project within the framework of project management. For the section of the book on the application of TQM to scrum, they demonstrate how these analytical methods can be used on the data produced within a scrum project and made into actionable information. Filled with innovative methods for improving costs, the text arms you with the tools to determine the approaches best suited Management to your corporate culture and capabilities. K13986 ISBN: 978-1-4398-8505-5 90000 www.crcpress.com 9 781439 885055 Kim H. Pries www.auerbach-publications.com Jon M. Quigley K13986 cvr mech.indd 1 7/13/12 10:44 AM Total Quality Management for Project Management Kim H. Pries Jon M. Quigley CRC Press Taylor & Francis Group 6000 Broken Sound Parkway NW, Suite 300 Boca Raton, FL 33487-2742 © 2013 by Taylor & Francis Group, LLC CRC Press is an imprint of Taylor & Francis Group, an Informa business No claim to original U.S. Government works Version Date: 20120518 International Standard Book Number-13: 978-1-4398-8510-9 (eBook - PDF) This book contains information obtained from authentic and highly regarded sources. Reasonable efforts have been made to publish reliable data and information, but the author and publisher cannot assume responsibility for the validity of all materials or the consequences of their use. The authors and publishers have attempted to trace the copyright holders of all material reproduced in this publication and apologize to copyright holders if permission to publish in this form has not been obtained. If any copyright material has not been acknowledged please write and let us know so we may rectify in any future reprint. Except as permitted under U.S. Copyright Law, no part of this book may be reprinted, reproduced, transmitted, or utilized in any form by any electronic, mechanical, or other means, now known or hereafter invented, including photocopying, micro- filming, and recording, or in any information storage or retrieval system, without written permission from the publishers. For permission to photocopy or use material electronically from this work, please access www.copyright.com (http://www. copyright.com/) or contact the Copyright Clearance Center, Inc. (CCC), 222 Rosewood Drive, Danvers, MA 01923, 978-750- 8400. CCC is a not-for-profit organization that provides licenses and registration for a variety of users. For organizations that have been granted a photocopy license by the CCC, a separate system of payment has been arranged. Trademark Notice: Product or corporate names may be trademarks or registered trademarks, and are used only for identi- fication and explanation without intent to infringe. Visit the Taylor & Francis Web site at http://www.taylorandfrancis.com and the CRC Press Web site at http://www.crcpress.com Contents I. Acknowledgments xix II. About the Authors xix III. Preface xxi IV. The State of the Art? xxiii CHAPTER 1 – INTRODUCTION 1 I. Rubric 1 II. Questions to Ponder 1 III. Why TQM Is Important to the Project Manager 2 IV. TQM Project Manager Scenario 2 V. Total Quality Management Prerequisites 3 VI. Organizational Attributes 5 VII. PDCA—Shewhart Cycle 6 VIII. Project Management 7 IX. What Is Program Management? 8 X. Why TQM Is Not Another Management Fix 10 XI. How to Change the Culture 10 XII. Eliminating Junk Activities 12 XIII. Exercises 14 Contents iii iv Total Quality Management for Project Management CHAPTER 2 – METRICS AND REQUIREMENTS 15 I. Rubric 15 II. Questions to Ponder 15 III. Why Metrics and Requirements Are Important to the Project Manager 16 IV. TQM Project Manager Scenario 16 V. Product Requirements 17 VI. Project Requirements 31 VII. Derived Requirements 34 VIII. Internal Requirements 34 IX. Regulatory Requirements 34 X. Standards 35 XI. Exercises 40 CHAPTER 3 – TQM TOOLS 41 I. Rubric 41 II. Questions to Ponder 41 III. Why TQM Tools Are Important to the Project Manager 42 IV. TQM Project Manager Scenario 42 V. Benefits to the TQM Project Manager 43 Contents v VI. Pareto Chart 44 VII. Scatter Plots 46 VIII. Control Charts 54 IX. Selection of Variable 55 X. Flow Charts 56 XI. Ishikawa Diagram (Fish Bone Diagram, Cause and Effect Diagram) 58 XII. Histogram/Bar Graphs 58 XIII. Checklists/Check Sheets 59 XIV. Exercises 61 CHAPTER 4 – PROJECT MANAGEMENT TOOLS 63 I. Rubric 63 II. Questions to Ponder 63 III. Why Project Management Tools Are Important to the Project Manager 64 IV. TQM Project Manager Scenario 64 V. Scope 65 VI. Project Estimating Techniques 66 VII. Project Budgeting 75 VIII. Cost Estimating 76 vi Total Quality Management for Project Management IX. Project Scheduling Fundamentals 79 X. Communications Basics 82 XI. Project Metrics and Control 85 XII. Risk Management Fundamentals 96 XIII. Project Termination Techniques 100 XIV. Exercises 107 CHAPTER 5 – STATISTICS AND CONTROL 109 I. Rubric 109 II. Questions to Ponder 109 III. Why Statistics and Control Are Important to the Project Manager 110 IV. TQM Project Manager Scenario 110 V. What Does Control Mean? 111 VI. Project Risk and Management 111 VII. Attributes Data 113 VIII. Variables Data 116 IX. Statistical Process Control (SPC) in Use 116 X. Exercises 120 Contents vii CHAPTER 6 – PROCESS ANALYSIS AND IMPROVEMENT 121 I. Rubric 121 II. Questions to Ponder 121 III. Why Process Analysis and Improvement Are Important to the Proj- ect Manager 122 IV. TQM Project Manager Scenario 122 V. Functional Decomposition 123 VI. Work Breakdown Structures 123 VII. Scope of Work 130 VIII. Exercises 143 CHAPTER 7 – PROCESS CONTROL AND METRICS 145 I. Rubric 145 II. Questions to Ponder 145 III. Why Process Controls and Metrics Are Important to the Project Manager 146 IV. TQM Project Manager Scenario 146 V. Risk Management 147 VI. Hazard Analysis and Critical Control Point Method 155 VII. Scope 156 VIII. Communication 159 viii Total Quality Management for Project Management IX. Change Management 160 X. Exercises 174 CHAPTER 8 - INSPECTION AND QUALITY ASSURANCE 177 I. Rubric 177 II. Questions to Ponder 177 III. Why Inspection and QA Are Important to the Project Manager 177 IV. TQM Project Manager Scenario 178 V. Inspection with Attributes 179 VI. Inspection with Variables 181 VII. Skip Lot Inspection 182 VIII. Continuous Sampling Plans 182 IX. Dodge-Romig 183 X. First Article Inspection 183 XI. What Is a Meaningful Sample? 183 XII. Failure Types 184 XIII. Inspections and Project Management 184 XIV. Exercises 184 Contents ix CHAPTER 9 – TRACKING METRICS 187 I. Rubric 187 II. Questions to Ponder 187 III. Why Statistics and Control Are Important to the Project Manager 188 IV. TQM Project Manager Scenario 188 V. Tracking Metrics 189 VI. Product Quality over Time 195 VII. Project Quality over Time 196 VIII. Exercises 196 CHAPTER 10 – OTHER Supporting Initiatives 199 I. Rubric 199 II. Questions to Ponder 199 III. Why Maturity Models Are Important to the Project Manager 199 IV. TQM Project Manager Scenario 200 V. Capability Maturity Models 201 VI. Exercises 228 APPENDIX 1 – CHANGE Management 231 I. Change Management 231 II. Configuration Management 231 x Total Quality Management for Project Management APPENDIX 2 – TEMP EXAMPLE 241 I. Overview 241 II. Integrated Test Program Summary 245 III. Developmental Test and Evaluation Outline 247 IV. Operational Test and Evaluation Outline 251 V. Test and Evaluation Resource Summary 253 APPENDIX 3 – TIEMPO 257 APPENDIX 4 – PRODUCT VERIFICATION 263 I. Product Verification 263 INDEX 267 LIST OF FIGURES Figure 1.1 The butterfly effect from chaos theory suggests small causes can have large effects. 2 Figure 1.2 Example of a well-defined organization hierarchy. 4 Figure 1.3 The Shewhart Plan-Do-Check-Act (PDCA) cycle. 6 Figure 1.4 PM balancing act of the stakeholder expectations and resources. 8 Figure 1.5 Program-project hierarchy. 9 Figure 1.6 No silver bullet for project management! 10 Figure 1.7 Process flow from supplier to customer, whether internal or external. 11 Figure 1.8 Organization chart outline showing bottom-up improvement and top-down improvement - one key to cultural change. 12 Figure 1.9 Relations of different engineering organizations in a typical enterprise. 13 Figure 2.1 A typical instrument cluster for truck. 18 Figure 2.2 Variety of product requirements and demands. 19 Figure 2.3 A typical test “buck,” with all controllers centralized and powered. 21 Figure 2.4 The entire vehicle HIL rig, showing the electrical controller unit (ECU) cabinet. 22 Figure 2.5 Hardware in the loop rig with expanded graphical controls.