© 2004, david gadish, ph.d.1 project management cis 486 fall 2005 week 5 lecture dr. david gadish

© 2004, David Gadish, Ph.D. 1

Project ManagementProject ManagementCIS 486CIS 486

Fall 2005Fall 2005

Week 5 LectureWeek 5 Lecture

Dr. David GadishDr. David Gadish


Week 4 Review

Project Time Management (Ch 6) Project Cost Management (Ch 7)


Week 5 Overview

Project Quality Management (Ch 8) Project Human Resource Management (Ch

9)

4

Project Quality Management

Chapter 8


Learning Objectives Understand the importance of project

quality management for IT products and services

Define project quality management and understand how quality relates to various aspects of IT projects

Describe quality planning and its relationship to project scope management


Learning Objectives Discuss the importance of quality assurance List the three outputs of the quality control

process Understand the tools and techniques for quality

control, such as Pareto analysis, statistical sampling, Six Sigma, quality control charts, and testing

Describe important concepts related to Six Sigma and how it helps organizations improve quality and reduce costs


Learning Objectives Summarize the contributions of noteworthy

quality experts to modern quality management Understand how the Malcolm Baldrige Award

and ISO 9000 standard promote quality in project management

Describe how leadership, cost, organizational influences, and maturity models relate to improving quality in information technology projects

Discuss how software can assist in project quality management


Quality of Information Technology Projects People seem to accept systems being

down occasionally or needing to reboot their PCs

There are many examples in the news about quality problems related to IT

But quality is very important in many IT projects


What Is Quality? The International Organization for

Standardization (ISO) defines quality as the totality of characteristics of an entity that bear on its ability to satisfy stated or implied needs

Other experts define quality based on– conformance to requirements: meeting written

specifications– fitness for use: ensuring a product can be used

as it was intended


Project Quality Management Processes Quality planning: identifying which quality

standards are relevant to the project and how to satisfy them

Quality assurance: evaluating overall project performance to ensure the project will satisfy the relevant quality standards

Quality control: monitoring specific project results to ensure that they comply with the relevant quality standards while identifying ways to improve overall quality


Quality Planning It is important to design in quality and

communicate important factors that directly contribute to meeting the customer’s requirements

Design of experiments helps identify which variables have the most influence on the overall outcome of a process

Many scope aspects of IT projects affect quality like functionality, features, system outputs, performance, reliability, and maintainability


Quality Assurance Quality assurance includes all the activities

related to satisfying the relevant quality standards for a project

Another goal of quality assurance is continuous quality improvement

Benchmarking can be used to generate ideas for quality improvements

Quality audits help identify lessons learned that can improve performance on current or future projects


Quality Assurance Plan


Quality Control

The main outputs of quality control are– acceptance decisions– rework– process adjustments

Some tools and techniques include– Pareto analysis– statistical sampling– Six Sigma– quality control charts


Pareto Analysis

Pareto analysis involves identifying the vital few contributors that account for the most quality problems in a system

Also called the 80-20 rule, meaning that 80% of problems are often due to 20% of the causes

Pareto diagrams are histograms that help identify and prioritize problem areas


Sample Pareto Diagram


Statistical Sampling and Standard Deviation Statistical sampling involves choosing part

of a population of interest for inspection The size of a sample depends on how

representative you want the sample to be Sample size formula:Sample size = .25 X (certainty Factor/acceptable error)2


Commonly Used Certainty Factors

Desired Certainty Certainty Factor

95% 1.960

90% 1.645

80% 1.281

95% certainty: Sample size = 0.25 X (1.960/.05) 2 = 38490% certainty: Sample size = 0.25 X (1.645/.10)2 = 6880% certainty: Sample size = 0.25 X (1.281/.20)2 = 10


Six Sigma Defined Six Sigma is “a comprehensive and flexible

system for achieving, sustaining and maximizing business success. Six Sigma is uniquely driven by close understanding of customer needs, disciplined use of facts, data, and statistical analysis, and diligent attention to managing, improving, and reinventing business processes.”


Basic Information on Six Sigma

The target for perfection is the achievement of no more than 3.4 defects per million opportunities

The principles can apply to a wide variety of processes

Six Sigma projects normally follow a five-phase improvement process called DMAIC


DMAIC Define: Define the problem/opportunity,

process, and customer requirements Measure: Define measures, collect, compile, and

display data Analyze: Scrutinize process details to find

improvement opportunities Improve: Generate solutions and ideas for

improving the problem Control: Track and verify the stability of the

improvements and the predictability of the solution


How is Six Sigma Quality Control Unique? It requires an organization-wide

commitment Six Sigma organizations have the ability

and willingness to adopt contrary objectives, like reducing errors and getting things done faster


How is Six Sigma Quality Control Unique? It is an operating philosophy that is

customer-focused and strives to drive out waste, raise levels of quality, and improve financial performance at breakthrough levels


Examples of Six Sigma Organizations Motorola, Inc. pioneered the adoption of Six

Sigma in the 1980s and saved about $14 billion

Allied Signal/Honeywell saved more than $600 million a year by reducing the costs of reworking defects and improving aircraft engine design processes

General Electric uses Six Sigma to focus on achieving customer satisfaction


Six Sigma and Project Management Improvement takes place project by project,

and in no other way. It’s important to select projects carefully and

apply higher quality where it makes sense Six Sigma projects must focus on a quality

problem or gap between current and desired performance and not have a clearly understood problem or a predetermined solution.


Six Sigma and Project Management After selecting Six Sigma projects, the

project management concepts, tools, and techniques described in this course come into play, such as creating business cases, project charters, schedules, budgets, etc.


Six Sigma and Statistics

The term sigma means standard deviation Standard deviation measures how much

variation exists in a distribution of data Standard deviation is a key factor in

determining the acceptable number of defective units found in a population

Six Sigma projects strive for no more than 3.4 defects per million opportunities, yet this number is confusing to many statisticians


Standard Deviation A small standard deviation means that data

cluster closely around the middle of a distribution and there is little variability among the data

A normal distribution is a bell-shaped curve that is symmetrical about the mean or average value of a population


Normal Distribution and Standard Deviation


Six Sigma and Defective Units


Six Sigma Conversion Table

The Six Sigma convention for determining defects is based on the above conversion table. It accounts for a 1.5 sigma shift to account for time and measures defects per million opportunities, not defects per unit.


Quality Control Charts and the Seven Run Rule A control chart is a graphic display of data

that illustrates the results of a process over time.

It helps prevent defects and allows to determine whether a process is in control or out of control.


Quality Control Charts and the Seven Run Rule The seven run rule states that if seven data

points in a row are all below the mean, above, the mean, or increasing or decreasing, then the process needs to be examined for non-random problems.


Sample Quality Control Chart


Testing

Many IT professionals think of testing as a stage that comes near the end of IT product development

Testing should be done during almost every phase of the IT product development life cycle


Testing Tasks in the Software Development Life Cycle


Types of Tests A unit test is done to test each individual

component (often a program) to ensure it is as defect free as possible

Integration testing occurs between unit and system testing to test functionally grouped components


Types of Tests System testing tests the entire system as

one entity User acceptance testing is an

independent test performed by the end user prior to accepting the delivered system


Gantt Chart for Building Testing into a Systems Development Project Plan


Modern Quality Management

Modern quality management– requires customer satisfaction– prefers prevention to inspection– recognizes management responsibility for

quality


Malcolm Baldrige Award andISO 9000 The Malcolm Baldrige Quality Award was

started in 1987 to recognize companies with world-class quality

ISO 9000 provides minimum requirements for an organization to meet their quality certification standards


Improving Information Technology Project Quality Several suggestions for improving quality

for IT projects include– Leadership that promotes quality– Understanding the cost of quality– Focusing on organizational influences and

workplace factors that affect quality– Following maturity models to improve quality


Leadership

It is most important that top management be quality-minded.

In the absence of sincere manifestation of interest at the top, little will happen below.

A large percentage of quality problems are associated with management, not technical issues


The Cost of Quality

The cost of quality is – the cost of conformance or delivering products

that meet requirements and fitness for use– the cost of nonconformance or taking

responsibility for failures or not meeting quality expectations


Costs Per Hour of Downtime Caused by Software Defects

Business Cost per Hour Downtime

Automated teller machines (medium-sized bank) $14,500

Package shipping service $28,250

Telephone ticket sales $69,000

Catalog sales center $90,000

Airline reservation center (small airline) $89,500


Five Cost Categories Related to Quality

Prevention cost: the cost of planning and executing a project so it is error-free or within an acceptable error range

Appraisal cost: the cost of evaluating processes and their outputs to ensure quality

Internal failure cost: cost incurred to correct an identified defect before the customer receives the product


Five Cost Categories Related to Quality

External failure cost: cost that relates to all errors not detected and corrected before delivery to the customer

Measurement and test equipment costs: capital cost of equipment used to perform prevention and appraisal activities


Organization Influences, Workplace Factors, and Quality A study by DeMarco and Lister showed

that organizational issues had a much greater influence on programmer productivity than the technical environment or programming languages

Programmer productivity varied by a factor of one to ten across organizations, but only by 21% within the same organization


Organization Influences, Workplace Factors, and Quality The study found no correlation between

productivity and programming language, years of experience, or salary

A dedicated workspace and a quiet work environment were key factors to improving programmer productivity


Maturity Models Maturity models are frameworks for

helping organization improve their processes and systems– Software Quality Function Deployment

model focuses on defining user requirements and planning software projects


Maturity Models– The Software Engineering Institute’s

Capability Maturity Model provides a generic path to process improvement for software development

– Several groups are working on project management maturity models, such as PMI’s Organizational Project Management Maturity Model (OPM3)


Project Management Maturity Model

1. Ad-Hoc: The project management process is described as disorganized, and occasionally even chaotic.

The organization has not defined systems and processes, and project success depends on individual effort.

There are chronic cost and schedule problems.



2. Abbreviated: There are some project management processes and systems in place to track cost, schedule, and scope.

Project success is largely unpredictable and cost and schedule problems are common.



3. Organized: There are standardized, documented project management processes and systems that are integrated into the rest of the organization.

Project success is more predictable, and cost and schedule performance is improved.



4. Managed: Management collects and uses detailed measures of the effectiveness of project management.

Project success is more uniform, and cost and schedule performance conforms to plan.



5. Adaptive: Feedback from the project management process and from piloting innovative ideas and technologies enables continuous improvement.

Project success is the norm, and cost and schedule performance is continuously improving.


Using Software to Assist in Project Quality Management Spreadsheet and charting software helps

create Pareto diagrams, Fishbone diagrams, etc.

Statistical software packages help perform statistical analysis.


Using Software to Assist in Project Quality Management Specialized software products help manage

Six Sigma projects or create quality control charts

Project management software helps create Gantt charts and other tools to help plan and track work related to quality management

60

Project Human Resource Management

Chapter 9


Learning Objectives Explain the importance of good HR

management on projects, especially on IT projects

Define project HR management and understand its processes

Summarize key concepts for managing people Discuss organizational planning and be able to

create a project organizational chart, responsibility assignment matrix, and resource histogram


Learning Objectives Understand important issues involved in

project staff acquisition and explain the concepts of resource assignments, resource loading, and resource leveling

Assist in team development with training, team-building activities, and reward systems

Describe how project management software can assist in project human resource management


The Importance of Human Resource Management People determine the success and failure of

organizations and projects Recent statistics about IT workforce:

– The total number of U.S. IT workers was more than 10.1 million in December 2002, up from 9.9 million in January 2002

– IT managers predict they will need to hire an additional 1.2 million workers in the near future

– Hiring by non-IT companies outpaces hiring by IT companies by a ratio of 12:1


Digital Planet Reports The global high-tech industry generated

more than $2.1 trillion in 1999, $2.3 trillion in 2000, and $2.4 trillion in 2001

The Internet and e-commerce were notable bright spots in the global economy

Global e-commerce went up 79 percent from 2000 to 2001

China, Poland, and other developing countries are playing an increasing role in the global IT market


Long Hours and Stereotypes of IT Workers Hurt Recruiting

Many people are struggling with how to increase and diversify the IT labor pool. Noted problems include:– The fact that many IT professionals work

long hours and must constantly stay abreast of changes in the field


Long Hours and Stereotypes of IT Workers Hurt Recruiting

– Undesirable stereotypes that keep certain people away from the career field, like women

– The need to improve benefits, redefine work hours and incentives, and provide better HR management


What is Project Human Resource Management? Project human resource management

includes the processes required to make the most effective use of the people involved with a project.

Processes include:– Organizational planning– Staff acquisition– Team development


Keys to Managing People

Psychologists and management theorists have devoted much research and thought to the field of managing people at work

Important areas related to project management include– motivation– influence and power– effectiveness


Motivation

Abraham Maslow developed a hierarchy of needs to illustrate his theory that people’s behaviors are guided by a sequence of needs

Maslow argued that humans possess unique qualities that enable them to make independent choices, thus giving them control of their destiny


Maslow’s Hierarchy of Needs


Herzberg’s Motivational and Hygiene Factors Frederick Herzberg wrote several famous

books and articles about worker motivation. He distinguished between– motivational factors: achievement, recognition,

the work itself, responsibility, advancement, and growth, which produce job satisfaction

– hygiene factors: cause dissatisfaction if not present, but do not motivate workers to do more. Examples include larger salaries, more supervision, and a more attractive work environment


McClelland’s Acquired-Needs Theory Specific needs are acquired or learned over time

and shaped by life experiences, including:– Achievement (nAch): Achievers like challenging

projects with achievable goals and lots of feedback

– Affiliation (nAff): People with high nAff desire harmonious relationships and need to feel accepted by others, so managers should try to create a cooperative work environment for them

– Power: (nPow): People with a need for power desire either personal power (not good) or institutional power (good for the organization). Provide institutional power seekers with management opportunities


McGregor’s Theory X and Theory Y Douglas McGregor popularized the human relations

approach to management in the 1960s Theory X: assumes workers dislike and avoid work,

so managers must use coercion, threats, and various control schemes to get workers to meet objectives

Theory Y: assumes individuals consider work as natural as play or rest and enjoy the satisfaction of esteem and self-actualization needs

Theory Z: introduced in 1981 by William Ouchi and is based on the Japanese approach to motivating workers, emphasizing trust, quality, collective decision making, and cultural values


Thamhain and Wilemon’s Ways to Have Influence on Projects1. Authority: the legitimate hierarchical right to issue

orders2. Assignment: the project manager's perceived

ability to influence a worker's later work assignments

3. Budget: the project manager's perceived ability to authorize others' use of discretionary funds

4. Promotion: the ability to improve a worker's position

5. Money: the ability to increase a worker's pay and benefits


Thamhain and Wilemon’s Ways to Have Influence on Projects6. Penalty: the project manager's ability to cause

punishment7. Work challenge: the ability to assign work that

capitalizes on a worker's enjoyment of doing a particular task

8. Expertise: the project manager's perceived special knowledge that others deem important

9. Friendship: the ability to establish friendly personal relationships between the project manager and others


Ways to Influence that Help and Hurt Projects Projects are more likely to succeed when

project managers influence with– expertise– work challenge

Projects are more likely to fail when project managers rely too heavily on– authority– money– penalty


Power Power is the potential ability to influence

behavior to get people to do things they would not otherwise do

Types of power include– Coercive– Legitimate– Expert– Reward– Referent


Improving Effectiveness - Covey’s 7 Habits Project managers can apply Covey’s 7

habits to improve effectiveness on projects– Be proactive– Begin with the end in mind– Put first things first– Think win/win– Seek first to understand, then to be understood– Synergize– Sharpen the saw


Empathic Listening and Rapport Good project managers are empathic listeners;

they listen with the intent to understand Before you can communicate with others, you

have to have rapport Mirroring is a technique to help establish rapport IT professionals often need to develop empathic

listening and other people skills to improve relationships with users and other stakeholders


Improving Relationships Between Users and Developers Some organizations require business people,

not IT people, to take the lead in determining and justifying investments in new computer systems

CIOs push their staff to recognize that the needs of the business must drive all technology decisions

Some companies reshape their IT units to look and perform like consulting firms


Organizational Planning Organizational planning involves

identifying, documenting, and assigning project roles, responsibilities, and reporting relationships

Outputs and processes include– project organizational charts– work definition and assignment process– responsibility assignment matrixes– resource histograms


Sample Organizational Chart for a Large IT Project


Work Definition and Assignment Process


Sample Responsibility Assignment Matrix (RAM)


RAM Showing Stakeholder Roles


Sample RACI Chart

R = responsibility, only one R per taskA = accountabilityC = consultationI = informed


Sample Resource Histogram


Staff Acquisition Staffing plans and good hiring procedures

are important in staff acquisition, as are incentives for recruiting and retention

Some companies give their employees one dollar for every hour a new person they helped hire works


Staff Acquisition Some organizations allow people to work

from home as an incentive Research shows that people leave their

jobs because they:– don’t make a difference– don’t get proper recognition– aren’t learning anything new– don’t like their coworkers, and want to earn

more money


Resource Loading and Leveling

Resource loading refers to the amount of individual resources an existing project schedule requires during specific time periods

Resource histograms show resource loading Overallocation means more resources than

are available are assigned to perform work at a given time


Sample Histogram Showing an Overallocated Individual


Resource Leveling

Resource leveling is a technique for resolving resource conflicts by delaying tasks

The main purpose of resource leveling is to create a smoother distribution of resource usage and reduce overallocation


Resource Leveling Example


Team Development

It takes teamwork to successfully complete most projects

Training can help people understand themselves, each other, and how to work better in teams

Team building activities include– physical challenges– psychological preference indicator tools


Meyers-Briggs Type Indicator (MBTI) MBTI is a popular tool for determining personality

preferences and helping teammates understand each other

Four dimensions include:– Extrovert/Introvert (E/I)– Sensation/Intuition (S/N)– Thinking/Feeling (T/F)– Judgment/Perception (J/P)

IT people vary most from the general population in not being extroverted or sensing


Social Styles Profile

People are perceived as behaving primarily in one of four zones, based on their assertiveness and responsiveness:– Drivers

– Expressives

– Analyticals

– Amiables

People on opposite corners (drivers and amiables, analyticals and expressives) may have difficulties getting along


Social Styles


Reward and Recognition Systems

Team-based reward and recognition systems can promote teamwork

Focus on rewarding teams for achieving specific goals

Allow time for team members to mentor and help each other to meet project goals and develop human resources


General Advice on Teams Focus on meeting project objectives and

producing positive results Fix the problem instead of blaming people Establish regular, effective meetings Nurture team members and encourage them to

help each other Acknowledge individual and group

accomplishments


Using Software to Assist in Human Resource Management Software can help in producing RAMs and

resource histograms Project management software includes

several features related to human resource management such as – viewing resource usage information– identifying under and overallocated resources– leveling resources


Resource Usage View from Microsoft Project


Resource Usage Report from Microsoft Project


Project Resource Management Involves Much More Than Using Software Project managers must

– Treat people with consideration and respect– Understand what motivates them– Communicate carefully with them

Focus on your goal of enabling project team members to deliver their best work


Questions?


Next Week’s Agenda

Midterm Exam Project discussion

© 2004, david gadish, ph.d.1 project management cis 486 fall 2005 week 5 lecture dr. david gadish

Documents

quality problems

overall quality slide

modern quality management

quality control process

quality control charts

david gadish slide

project scope management

project management cis