PM-430

PROJECT MANAGEMENT

CAPSTONECTU-Online

Term 1803B

Chat #3

Dr. Jurgens-Kowal

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TODAY’S AGENDA

Where We’re At and Where We’re Headed

1

Quality Management for a Program

2

Risk Management for a Program

3

Homework Assignments –Week 3

4

2

WHERE WE’RE AT AND WHERE WE’RE HEADED

Week 1: PMBOK Processes

Total =185

DB1-1 = 10

DB1-2 = 75

IP1 = 100

Week 2: Program Management

Total = 175

DB2 = 75

IP2 = 100

Week 3: Quality & Risk Management

Total = 225

DB3 = 75

IP3 = 150

Week 4: Schedule

Total = 275

DB4 = 75

IP4 = 200

Week 5: Closing

Total = 340

DB5 = 40

IP5 = 250

CPC=50

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Total

Points

Possible =

1200

QUALITY MANAGEMENT IN

PROGRAMS

4

PROJECT QUALITY MANAGEMENT

5

Planning

Plan Quality Management

Executing

Manage Quality

Monitoring & Controlling

Control Quality

PROGRAM QUALITY MANAGEMENT

•Across all projects

Program Quality Planning

•Evaluate on routine basis

Program Quality Assurance

• `Monitoring components

Program Quality Control

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PROGRAM QUALITY PLANNING

Program quality policy

Program quality standards

Program quality estimate of cost

Quality metricsQuality

checklistsQA and control

specs

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COST OF QUALITY (COQ)

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Cost of Conformance

(avoid failure)

Prevention Costs (Design & Build-in Quality)

TrainingDocument processes

EquipmentTime to do

it right

Appraisal Costs (Assess Quality)

TestingDestructive testing loss

Inspections

Cost of Nonconformance

($ spent due to failure)

Internal Failure Costs

(Before Completion)

Rework Scrap

External Failure Costs (After Completion)

LiabilitiesWarranty

workLost

business

Plan Quality Management

SEVEN (7) QUALITY TOOLS

1. Checklists

2. Flowcharts

3. Cause-and-Effect

Diagrams

4. Scatter Diagrams

5. Histograms

6. Pareto Diagrams

7. Control Charts

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Plan Quality Management

CHECKLISTS

Also known as checksheet or tally sheet

Used to gather data

Helps to categorize data

Organize data

Makes analysis easier

Use to verify quality policy & standards

Design checklist for ease of use

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Day of Week Off-Spec Product

Monday 1

Tuesday 2

Wednesday 0

Thursday 1

Friday 3

Saturday 2

Sunday 7

Monday 0

Tuesday 0

Wednesday 1

Thursday 2

Friday 3

Saturday 2

Sunday 2

FLOWCHART

Process map

Explore possibilities

Shows the sequence of activities

Useful for troubleshooting

Utilizes symbols from computer industry

Start/End

Task/Activity

Decision Point (Yes/No)

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CAUSE-AND-EFFECT DIAGRAM

Also known as fishbone diagram or Ishikawa diagram

Trying to find root cause of a problem

Work right to left

Problem statement at left

Causes placed along “rib bones”

Sub-causes on “bones”

Helps identify what data needs gathering

Example looks at “4Ms”

Materials, Machine, Method, Manpower

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SCATTER DIAGRAMS Also known as x-y diagrams

Identifies relationships between variables or elements in the

quality management process

Positive correlation, negative correlation, or no correlation

130

10

20

30

40

50

60

0 20 40 60 80

# Sa

les

# Customers

EXAMPLE X-Y CHART / SCATTER DIAGRAM

Positive Correlation (y increases with x)

HISTOGRAM Fancy name for a bar chart

Describes the center point, dispersion

Often a “normal distribution”

Sometimes other statistical distributions

Does not consider time effect

Advantage is to visualize the data (checksheet)

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Type Number

Hershey 10

Reese's 9

Whoppers 16

KitKat 12

0

2

4

6

8

10

12

14

16

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HERSHEY REESE'S WHOPPERS KITKAT

Co

un

t

Type of Candy Bar

Halloween Candy

PARETO DIAGRAM

Also known as the 80/20 Rule

Italian economist landowner study

80% of the land owned by 20% people

Juran later applied to quality

Address the biggest problems first

So-called “bang for the buck”

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CONTROL CHARTS

Plots variables over time

Determine whether a process is stable

Does process have predictable performance?

Differentiates between common cause and special cause

Every process has some random error

Control chart limits

Average, Upper (UCL), Lower (LCL)

Factors based on sample size, standard deviation

Rules for “out of control”

16

QA & QC FOR THE PROGRAM

Quality assurance audits

QA standard reports

Quality change requests

Quality change requests

QC completed checklists / reports

Quality test reports & results

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RISK MANAGEMENT IN PROGRAMS

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PROJECT RISK MANAGEMENT PROCESSES

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Plan Risk Management

Identify Risks

Qualitative Risk Analysis

Quantitative Risk Analysis

Plan Risk Responses

Implement Risk Responses

Monitor Risks

New in 6th ed.

PROGRAM RISK MANAGEMENT

Program Risk Management Planning

1

Program Risk Identification

2

Program Risk Analysis

3

Program Risk Response Planning

4

Program Risk Monitoring and Controlling

5

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GATHERING RISK INFORMATION

Interviews

Brainstorming

Delphi Method

Root Cause Analysis

SWOT

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Document

Assumptions!

RISK MANAGEMENT TOOLS

Risk Categories

Risk Breakdown Structure

Cause & Effect Diagrams

Risk Register

Probability / Impact Matrix

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EXAMPLE RISK CATEGORIES / RBS

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• Market Risk

• Financial Risk

• Technology Risk

• People Risk

• Structure Risk

Project

Business

Competitors

Suppliers

Technical

Hardware

Software

Network

CAUSE & EFFECT (ISHIKAWA)

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SWOT ANALYSIS

Strengths, Weaknesses, Opportunities, Threats

acronym = SWOT

Framework to assess risks and competitive advantage

Used in a variety of circumstances

Business strategy definition

New product development

Entrepreneurial start-ups

On-going business decisions

Risk analysis

Quality assessments

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RISK REGISTER

➢ Identifier

➢ Description of Risk

➢ Probability of Occurrence

➢ Potential Impact of Risk

➢ Score (ProbabilityXImpact)

➢ Trigger event

➢ Owner

➢ Planned Response

RISK / IMPACT MATRIX

QUANTITATIVE RISK ANALYSIS

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3

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WEEK 3 ASSIGNMENTS

DB3

750-900 words

Discuss 3 quality management tools and 3 risk management tools

Use textbooks and additional references (citations!!)

Primary Post due by Friday at midnight

Peer Responses due by Tuesday at midnight

IP3

Creating a project plan for ONE of the projects

Requires how you will integrate quality & risk

Need WBS, Critical Path (MS Project), Budget, change control, risk, quality, and stakeholders

Due by Wednesday, midnight (check instructions for guidelines

Use APA references (check library for how-to

I’m not picky about APA spacing and margins….29

IP3 is a BIG

assignment!

QUESTIONS?

Send email with questions

Typically expect a response in 24 to 48

hours (weekday vs. weekend)

Usually email is checked in the morning, so

plan accordingly

TJurgensKowal@faculty.ctuonline.edu

Next chat is Tuesday at 3:15 pm

Office hours via email

Thursdays at 3:15 pm

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