Sunday, 9 April 2017

Education Edge Office Read - Quality Knowledge Area - PMBOK Guide - PMP Prep Course

Project Quality Management
 
Project Quality Management determines quality policies, objectives, and responsibilities so that the project will satisfy the needs for which it was undertaken.

 

Project Quality Management supports continuous process improvement activities as undertaken on behalf of the performing organization.

 

Quality is the degree to which a set of inherent characteristics fulfill requirements.

 

Grade is a category assigned to products or services having the same functional use but different technical characteristics.

 

Precision means the value of repeated measurements are clustered and have little scatter.

 

Accuracy means that the measured value is very close to the true value.

 

Cost of quality refers to the total cost of all efforts related to quality throughout the product life cycle.

 

Quality Philosophies associated to:

 

W. Edwards Deming – PDCA (Plan-Do-Check-Act), Quality is a Management problem, Started the TQM movement

Dr. Joseph Juran – 80/20 Principle, Fitness for Use, Quality & Grade

Phillip Crosby – Zero Defects, Quality is ‘Free’, Right’ the First Time, Prevention is the ‘Key’

 

Kaizen is a Japanese word that means gradual continuous improvement.

 

The knowledge area of Project Quality Management consists of the following three processes:

 

Process Name
Project Management Process Group
Key Deliverables
Plan Quality Management
Planning
Quality Management Plan, Process Improvement Plan
Perform Quality Assurance
Executing
Change Requests
Perform Quality Control
Monitoring and Controlling
Validated Deliverables, Validated Changes

 

Plan Quality Management is the process of identifying quality requirements and/or standards for the project and its deliverables.

 

Quality planning must consider cost-benefit tradeoffs by performing Cost-Benefit Analysis.

 

Cost of quality includes all costs incurred over the life of the product by investment in preventing non-conformance to requirements, appraising the product or service for conformance to requirements, and failing to meet requirements (rework).

 

Cost of Conformance – Money spent before or during project to avoid failures

Prevention Costs

Appraisal Costs

Cost of non-conformance – Money spent during and after the project because of failures

              Internal Failure Costs

External Failure Costs

 

Seven Basic Quality Tools

 

Cause-and-effect diagrams, which are also known as fishbone diagrams or as Ishikawa diagrams

 

Flowcharts, which are also referred to as process maps because they display the sequence of steps and the branching possibilities that exist

 

Check sheets, which are also known as tally sheets and may be used as a checklist when gathering data

 

Pareto diagrams exist as a special form of vertical bar chart and are used to identify the vital few sources that are responsible for causing most of a problem’s effects

 

Histograms are a special form of bar chart and are used to describe the central tendency, dispersion, and shape of a statistical distribution

 

Control charts, are used to determine whether or not a process is stable or has predictable performance

 

Scatter diagrams, plot ordered pairs (X, Y) and are sometimes called correlation charts because they seek to explain a change in the dependent variable

 

Benchmarking involves comparing actual or planned project practices to those of comparable projects to identify best practices.

 

Design of experiments (DOE) is a statistical method for identifying which factors may influence specific variables of a product or process under development or in production.

 

Statistical sampling involves choosing part of a population of interest for inspection.

 

The Inputs, Tools and Techniques and Output of Plan Quality Management process are given below:

 

Project Management Plan
Cost-Benefit Analysis
Quality Management Plan
Stakeholder Register
Cost of Quality
Process Improvement Plan
Risk Register
Seven Basic Quality Tools
Quality Metrics
Requirements Documentation
Benchmarking
Quality Checklists
Enterprise Environmental Factors
Design of Experiments
Project Documents updates
Organizational Process Assets
Statistical Sampling
 
 
Additional quality planning tools
 
 
Meetings
 

 

Perform Quality Assurance is the process of auditing the quality requirements and the results from quality control measurements to ensure that appropriate quality standards and operational definitions are used.

 

The key benefit of this process is that it facilitates the improvement of quality processes.

 


The quality metrics provide the attributes that should be measured and the allowable variations.

Seven Quality Management and Control Tools

 

Affinity diagrams is similar to mind-mapping techniques in that they are used to generate ideas that can be linked to form organized patterns of thought about a problem.

 

Process decision program charts (PDPC) used to understand a goal in relation to the steps for getting to the goal.

 

Interrelationship digraphs provide a process for creative problem solving in moderately complex scenarios that possess intertwined logical relationships for up to 50 relevant items.

 

Tree diagrams also known as systematic diagrams and may be used to represent decomposition hierarchies such as the WBS, RBS (risk breakdown structure), and OBS (organizational breakdown structure).

 

Prioritization matrices – Identify the key issues and the suitable alternatives to be prioritized as a set of decisions for implementation.

 

Activity network diagrams previously known as arrow diagrams. They include both the AOA (Activity on Arrow) and, most commonly used, AON (Activity on Node) formats of a network diagram.

 

Matrix diagrams used to perform data analysis within the organizational structure created in the matrix.

 

A quality audit is a structured, independent process to determine if project activities comply with organizational and project policies, processes, and procedures.

 

Process analysis follows the steps outlined in the process improvement plan to identify needed improvements.

 

The Inputs, Tools and Techniques and Output of Perform Quality Assurance process are given below:

 

Quality Management Plan
Quality Management and Control Tools
Change Requests
Process Improvement Plan
Quality audits
Project Management Plan Updates
Quality Metrics
Process analysis
Project Documents updates
Quality Control Measurements
 
Organizational Process Assets updates
Project Documents
 
 

 

Control Quality is the process of monitoring and recording results of executing the quality activities to assess performance and recommend necessary changes.

 

Control Quality should be performed throughout the project.

 

Prevention (keeping errors out of the process); Inspection (keeping errors out of the hands of the customer)

 

Attribute sampling (result conforms, or it doesn't)

 

Variables sampling (the result is rated on a continuous scale that measures the degree of conformity)

 

Statistical sampling (measures only a percentage of items e.g. 5 out of every 100)

 

Special causes (unusual events)

 

Common or random causes (normal process variation)

Tolerances (the result is acceptable if it falls within range specified by tolerance)

 

Control limits (the process is in control if the result falls within the control limits)

 

A deliverable is any unique and verifiable product, result, or capability that results in a validated deliverable required by the project.

 

An inspection is the examination of a work product to determine if it conforms to documented standards.

 

Rule of Seven which is when 7 values in a row are all below or all above the mean or increase/decrease in one direction.

 

Quality control measurements are the documented results of control quality activities.

 

The results of performing the Control Quality process are verified deliverables.

 

Work Performance Information is the performance data collected from various controlling processes, analyzed in context and integrated based on relationships across areas.

 

The Inputs, Tools and Techniques and Output of Control Quality process are given below:

 

Project Management Plan
Seven Basic Quality Tools
Quality Control Measurements
Quality Metrics
Statistical Sampling
Validated Changes
Quality Checklists
Inspection
Validated Deliverables
Work Performance Data
Approved Change Requests Review
Work Performance Information
Approved Change Requests
 
Change Requests
Deliverables
 
Project Management Plan Updates
Project Documents
 
Project Documents updates
Organizational Process Assets
 
Organizational Process Assets updates

 

Education Edge Office Read: Cost Knowledge Area - PMBOK Guide - PMP Prep Course

Cost Management Knowledge Area:
 
Project Cost Management includes the processes involved in planning, estimating, budgeting, financing, funding, managing, and controlling costs so that the project can be completed within the approved budget.

 

Project Cost Management is primarily concerned with the cost of the resources needed to complete project activities.

 

The knowledge area of Project Cost Management consists of the following four processes:

 

Process Name
Project Management Process Group
Key Deliverables
Plan Cost Management
Planning
Cost management Plan
Estimate Costs
Planning
Activity Cost Estimates, Basis of Estimates
Determine Budget
Planning
Cost Baseline
Control Costs
Monitoring and Controlling
Work Performance Information

 

Plan Cost Management process establishes the policies, procedures, and documentation for planning, managing, expending, and controlling project costs.

 

Cost management plan includes:

·       Units of measure

·       Level of precision

·       Level of accuracy

·       Organizational procedures links

·       Control thresholds

·       Rules of performance measurement

 

The Inputs, Tools and Techniques and Output of Plan Cost Management process are given below:

 

Project Management Plan
Expert Judgment
Cost Management Plan
Project Charter
Analytical Techniques
 
Enterprise Environmental Factors
Meetings
 
Organizational Process Assets
 
 

 

Estimate Costs is the process of developing an approximation of funds needed to complete project activities.

 

The project in the initiation phase has a rough order of magnitude (ROM) -25% to +75%

 

Later with more information is knows, definitive estimates could narrow the range of accuracy to -5% to +10%

 

Direct Costs are attributed directly to the project work and cannot be shared among projects (wages, material, equipment, etc.).

 

Indirect Costs are overhead costs that incurred for the benefit of more than one project (taxes, training, software licenses etc.).

 

Variable Costs vary depending on the amount of work or production (cost of materials, supplies, wages, etc.).

 

Fixed Costs remain constant throughout the project (cost of office setup, rentals, etc.).

 

Cost of quality includes all costs incurred over the life of the product.

 

Contingency Reserves are used for known risks, which are specifically identified risks.

 

Management Reserves are used to accommodate unknown risks, or unidentified risks.

 

Rolling Wave is a common technique used to estimate high-risk projects.

 

The Inputs, Tools and Techniques and Output of Estimate Costs process are given below:

 

Cost Management Plan
Expert Judgment
Activity Cost Estimates
Human Resource Management Plan
Analogous Estimating
Basis of Estimates
Scope Baseline
Parametric Estimating
Project Documents updates
Project Schedule
Bottom-up Estimating
 
Risk Register
Three-Point Estimating
 
Enterprise Environmental Factors
Reserve Analysis
 
Organizational Process Assets
Cost of Quality
 
 
Project Management Software
 
 
Vendor Bid Analysis
 
 
Group Decision Making Techniques
 

 

Determine Budget is the process of aggregating the estimated cost of individual activities or work packages to establish an authorized cost baseline.

 

The cost baseline is the approved version of the time-phased project budget.

 

Cost baseline includes all authorized budgets, but excludes management reserves.

 

Cost baseline can only be changed through formal change control procedures.

 

Project Cost performance will be measured against the authorized budget.

 

Cost estimates are aggregated by work packages in accordance with the WBS.

 

The expenditure of funds should be reconciled with any funding limits on the commitment of funds for the project.

 

Total funding requirements and periodic funding requirements (e.g., quarterly, annually) are derived from the cost baseline.

 

 

 

 

 

The Inputs, Tools and Techniques and Output of Determine Budget process are given below:

 

Cost Management Plan
Cost Aggregation
Cost Baseline
Scope Baseline
Reserve Analysis
Project Funding Requirements
Activity Cost Estimates
Expert Judgment
Project Documents updates
Basis of Estimates
Historical Relationships
 
Project Schedule
Funding Limit Reconciliation
 
Resource Calendars
 
 
Risk Register
 
 
Agreements
 
 
Organizational Process Assets
 
 

 

Control Cost is the process of monitoring status of the project to update the project budget and managing changes to the cost baseline.

 

Monitoring cost performance to isolate and understand variances from the approved cost baseline.

 

Cost baseline compared with actual results.

 

Project cost controls seeks out the causes of positive and negative variances and is part of the Perform Integrated Change Control process

 

Earned value management (EVM) is a methodology that combines scope, schedule, and resource measurements to assess project performance and progress.

 

Forecasting involves making projections of conditions and events in the project’s future based on current performance information and other knowledge available at the time of the forecast.

 

To-Complete Performance Index (TCPI) is a measure of the cost performance that is required to be achieved with the remaining resources in order to meet a specified management goal.

 

AC is the actual cost incurred

 

Earned Value EV value of the work actually accomplished

 

Planned Value (PV) is the value of the work planned to be done.

 

CPI refers to Cost Performance Index. It is defined as CPI = EV/AC (If CPI is less than 1, this means that the project is over budget).

 

SPI refers to Schedule Performance Index. It is defined as SPI = EV/PV

 

Budget at Completion (BAC) funds you have BUDGETED for the total Job. EAC = BAC/CPI

 

Estimate at Complete (EAC) current total expectation of project cost.

 

Estimate to Complete (ETC) from now on, how much MORE do we expect it to cost to finish the project.

ETC = EAC - AC

 

Variance at Completion (VAC) how much over or under budget do we expect it to be. VAC = BAC - EAC

 

The calculated CV, SV, CPI, SPI, TCPI, and VAC values for WBS components, in particular the work packages and control accounts, are documented and communicated to stakeholders.

 

If the schedule is inflexible, then the only possible tradeoffs available to the project manager may be cost versus quality.

 

The following will help you answer over 8 questions on the exam:

 

1.       CV = EV – AC

2.       SV = EV – PV

3.       CPI = EV/AC

4.       SPI = EV/PV

5.       BAC = Sum total of all the planned values

6.       EAC = BAC / CPI

7.       EAC = AC + ETC -- Initial Estimates are flawed

8.       EAC = AC + BAC - EV -- Future variance are Atypical

9.       EAC = AC + (BAC - EV) / CPI -- Future Variance would be typical

10.    ETC = EAC - AC

11.    % of work complete - EV/ BAC

12.    VAC = BAC – EAC

13.    Formula for To-Complete Performance Index (TCPI),

TCPI = (Work Remaining)/(Budget Remaining)

This formula can be interpreted in two ways:

If you’re under budget

TCPI = (BAC–EV)/(BAC–AC)

If you’re over Budget

TCPI = (BAC–EV)/(EAC–AC)

 

The Inputs, Tools and Techniques and Output of Control Costs process are given below:

 

Project Management Plan
Earned Value Management
Work Performance Information
Project Funding Requirements
Forecasting
Cost Forecasts
Work Performance Data
To-Complete Performance Index (TCPI)
Change Requests
Organizational Process Assets
Performance Reviews
Project Management Plan Updates
 
Project Management Software
Project Documents updates
 
Reserve Analysis
Organizational Process Assets updates