Implementing Quality Improvement Efforts

Sometimes organizations become lost when they implement quality improvement efforts. Applying solutions to quality problems requires a clear and direct route. In most cases, realizing quality improvements involves setting up change requests and taking corrective action.

Change requests are documented records of changes that happen to improve the quality of a project. Change requests can occur in many ways. They can be:

• oral or written
• direct or indirect
• externally or internally initiated
• legally directed or optional.

Realizing quality improvements also can involve taking corrective action. This process requires aligning the expected project performances with the project plan. This will help ensure that the project is meeting the requirements of the stakeholders.
Corrective action occurs when rework is required during a project. However, it does more than just fix a problem. It also can help you discover the root cause of the problem and prevent reoccurrence.

To handle change requests and corrective action, you must follow certain procedures. Most quality improvements for project management are implemented according to procedures for integrated change control.

This process coordinates changes across entire projects. There are three main characteristics for integrated change control.

1. Influence the factors that generate change to guarantee that changes are valuable.
Not all changes are valuable. During brainstorming sessions, plan quality improvement efforts that focus on factors that generate change.

2. Establish that a change has taken place.
Keeping an accurate paper trail of all changes helps managers establish that change has taken place. In addition, managers should reexamine their processes to ensure that any changes are maintained.

3. Handle the changes when and as they occur.
Learn to manage quality improvement changes as they occur. Managers should understand that possible schedule changes also will influence the cost, risk, quality, and staffing areas of a project.

Remember, quality improvement doesn't just happen. It includes taking corrective action and preparing change requests that are managed according to integrated change control. These procedures can help make quality a reality for your project.

The Evolution of Project Quality

The view of quality has changed dramatically over the past 100 years. Do you know how companies managed the quality of their products and services that long ago?

Project quality has evolved over time, from sorting good items from bad items, to strategic quality management. Quality was once the responsibility of the Quality Inspector. Now it's everyone's responsibility. Details about the quality time line are provided below.

• Prior to World War I, companies stressed the importance of inspections. Problems were identified, not prevented. In the 1950s, inspections were still emphasized. However, quality control emerged as statistical and mathematical techniques.
• From the 1950s to the late 1960s, quality assurance was developed for project management. Companies took steps to prevent problems from occurring, instead of reacting to problems once they were detected.
• Presently, management teams emphasize strategic quality management. Quality is characterized by the customer's demands and requires the commitment of an entire organization. All levels of an organization must be accountable for the products and services it offers. Quality is a weapon that is used against competitors.

Today, quality begins during the initiation of a project, and must be planned, assured, and controlled within that project. The driving force behind higher levels of quality comes from the demands of customers. Total Quality Management (TQM) is a present-day management system that responds to these demands.
TQM has contributed significantly to the movement toward improved quality. It is a customer-oriented system that can also reduce internal bottlenecks and operating costs. This system boosts organizational morale and increases product quality at the same time.

Quality has reached present-day levels as a result of the contributions of experts in the field of project management. In particular, two influential contributors to the quality movement are W. Edwards Deming and Joseph M. Juran.

W. Edwards Deming believed that 85 percent of quality problems required changing the processes within a company. He thought the roots of quality problems should be identified and eliminated. To help organizations identify the roots of quality problems, he developed the Deming's Cycle for Improvement.

Deming believed that problem solving should be logical and systematic. Deming's Cycle for Improvement, which involves the four steps described below, enables organizations to locate and eliminate the source of a problem, rather than simply eliminating the symptoms of a problem.

• Plan. The first step involves identifying the problem and establishing priorities. During this step a quality improvement team is formed, and the problem is defined and analyzed. Possible causes for the problem are determined, as well as possible solutions.
• Do. During the "do" stage, a solution to the problem is selected and implemented.
• Study. The study stage involves evaluating the solution.
• Act. Finally, the last stage ensures that the new procedure and controls are maintained. Project teams ensure that continuous improvement occurs.

Joseph M. Juran believed that quality for manufacturers meant adhering to specifications, and quality for customers depended on "fitness for use," which involves five characteristics: quality of design, quality of conformance, safety, use by the customer, and availability.
Juran also discussed the cost of quality and the legal implications of quality. He examined the various grades of quality for products and services. Juran developed 10 steps for quality improvement that can be applied to project management. The 10 steps are:

• promote the need for improvement
• establish goals for improvement
• organize a plan to attain the goals
• provide training
• perform projects to solve problems
• give an account of the progress that is made
• provide recognition
• communicate results
• keep score
• make improvement part of the process.

The way organizations and customers view quality has changed over time. Today, it is understood that problem solving is an important aspect of quality improvement.

The Costs of Project Quality

According to Leon M. Cautillo, "The bitterness of poor quality remains long after low pricing is forgotten!" Therefore, it is important for project managers to understand the cost of quality and the types of costs associated with it.

The cost of quality refers to the total cost of all the processes that are involved in producing a quality product or service. This includes costs that ensure all specified requirements are met, as well as the costs of nonconformance to those requirements. There are three types of costs associated with quality.

1. Prevention
Prevention costs are those costs associated with planning and implementing the project so that it is error-free. Prevention costs are an investment in quality, as they help the project manager ensure that the project is done right the first time. This helps reduce project rework or revisions.

It is cost-effective to find and fix product defects before they reach the customer. When planning, 70 percent of the total cost of quality should be focused on prevention. For example, you can include the costs of staff training, process studies, and vendor surveys in your prevention costs, since all of these can help you ensure project quality.

2. Appraisal
Appraisal costs are the second type of quality cost. These costs are associated with evaluating the working processes and the product to determine how well they will meet customer needs. Ideally, appraisal costs should make up approximately 15 percent of the total cost of quality.

There are many types of appraisal costs, including inspection and testing, maintenance of test equipment, and various types of design reviews, which are described below.

• Internal design reviews. These reviews are carried out within the company by its own employees. They check to make sure that processes and products meet the specified quality requirements.
• External design reviews. These reviews are performed by people outside the company. The findings are reported to company officials.
• Walk-through design reviews. These design reviews check the quality of the products coming off the line. The findings of these spot checks are used to correct quality problems.
• Expense design reviews. These reviews compare the project budget with the actual costs and are important for future project budgeting.

3. Failure
The last type of cost associated with quality assurance is failure costs. These are incurred when a product does not meet customer requirements. Failure costs can be internal or external.

• Internal failure costs are the costs incurred to correct product defects before they reach the customer.
• External failure costs are the costs incurred to correct product defects that were not detected before reaching the customer.

In an ideal situation, internal failure costs should make up 10 percent of the total cost of quality, while external failure costs should make up only five percent.

There are many factors that contribute to the preparation and delivery of a quality product. When planning for the cost of quality, remember to include all the types of quality costs—prevention, appraisal, internal failure, and external failure. Keep in mind that it is cost-effective to find and fix any defects in a product before it reaches the hands of the consumer.