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e-book Total Quality Management for Project Management

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Project team allocates resources like men, materials, machines etc. Some materials do get consumed in the process, whereas some machines and manpower are capable of being re-deployed in other project activities. The following is an illustrative list of projects. In other words, project form suits inter- disciplinary sets of activities to be performed under severe time and cost constraints, which may result in penalties if there is time and cost overruns with time wages of labor and jacked-up prices of equipment, project approach is finding favor all the more.

Projects have a short life-cycle with a definite beginning and a definite end. During the progress of the project resources requirements are not uniform. They may not be more in the beginning and may be much more during the build-up to leveling of slowly to the extent of cut-down towards the end. Resource allocation is one of the major challenges of project planning and controlling. The above description makes it clear that manpower deployment is a tricky business here. The deployed manpower from other departments might lack commitments and also affects the family life of the persons.

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The manpower may not be cut out for the specialized tasks to be carried out for the project. Temporary manpower looks for alternative jobs when the project is nearing completion. All this may result into time over-run. The matrix form of organization is suitable when multiple projects are being handled. Here, there are functional specialists who hold the resources and allow the project manager to co-ordinate these resources through his subordinates.

A functional specialist coordinates with several project managers. There is therefore co-ordination across functional departments. However, the principle of unity of command is violated, and hence there is a need for a better rapport between the functional specialist and the project manager in his line capacity. Each project consists of a cost of activities having inter- dependence. Some activities cannot start till the predecessor activities are completed. The project delayed results in cost over-run.

He is responsible for getting work performed, but often has no direct, formal authority over most of the people who perform the work. He must often rely on broader knowledge of the project and skills at negotiation and persuasion to influence participants. He may have the assistance of a staff if the project is large.

Six basic functions that project management must address are:. For the above reasons, it is important that the project leaders have an effective means of identifying and communicating the planned activities and the ways in which they are to be inter-related. An effective scheduling and monitoring method is absolutely essential for the management of a large project.

Network scheduling methods such as, PERT and CPM have proven to be highly effective and valuable tools during both the planning and execution phases of projects. Project planning includes all activities that result in a course of action for a project. Planning begins with setting well defined objectives such as implementing a new management information system.

Also, planning involves decision making regarding resources to be committed, completion, priorities of activities etc. Areas of responsibility must be identified and assigned. Time and resource requirements to perform the work activities must be forecasted and budgeted. Planning also involves establishing project boundaries and identifying controllable and uncontrollable variables that must be managed. Also, the performance criteria should be stated related to the project objectives and in measures of time, cost and quality characteristics.

Project scheduling establishes times and sequences of the various phases of the project. In project scheduling, the project manager considers the various activities of an overall project and the tasks that must be accomplished and relates them coherently to one another over the projects time horizon. Gantt charts do not reflect the inter-relationship among resources or the precedence relationships among project activities. Network techniques overcome this shortcoming of Gantt charts by including precedence relationships. Four alternative methods of project evaluation and selection are discussed in this article.

The first is a simple additive method for assessing the worth of a project called the payback period. The remaining three methods internal rate of return, net present value, and profitability index are all discounted cash flow techniques. The payback period PBP of an investment tells us the number of years required to recover our initial cash investment.

Although this measure provides a rough guide to the liquidity of a project, it is a poor gauge of profitability. It falls short as a measure of profitability because it 1 ignores cash flows occurring after the expiration of the payback period, 2 ignores the time value of money, and 3 makes use of a crude acceptance criterion, namely, a subjectively determined cut off point. The internal rate of return IRR for an investment proposal is the discount rate that equates the present value of the expected net cash flows with the initial cash outflow.

The profitability index PI , or benefit-cost ratio, of a project is the ratio of the present value of future net cash flows to the initial cash outflow. When two or more investment proposals are mutually exclusive, so that we can select only one, ranking proposals on the basis of the IRR, NPV, and PI methods may give contradictory results. If a conflict in rankings occurs, it will be due to one or a combination of the following three project differences: 1 scale of investment, 2 cash-flow pattern, and 3 project life.

In every case, the net present value rankings can be shown to lead to the correct project selection. In short, if net present value rankings are used, projects that are expected to add the greatest increment in dollars value to the firm will be chosen. A potential problem with the internal rate of return method is that multiple internal rates of return might occur for non-conventional projects whose cash-flow streams show multiple changes in sign.

When there are multiple rates of return, an alternative method of analysis must be used. Capital rationing occurs any time there is a budget ceiling, or constraint, on the amount of funds that can be invested during a specific period, such as a year. When capital is rationed over multiple periods, several alternative and rather complicated methods can be applied to the capital rationing problem. If capital is to be rationed for only the current period, selecting projects by descending order of profitability index generally leads to a firm value. It is important to monitor projects continually to help ensure project success.

Therefore, companies should perform progress reviews followed by post completion audits. The use of photography technique is like holding up a mirror to your own workplace to highlight embarrassing bits you would prefer that others do not see. Quality Circle is one of the employee participation methods. It implies the development of skills, capabilities, confidence and creativity of the people through cumulative process of education, training, work experience and participation.

It also implies the creation of facilitative conditions and environment of work, which creates and sustains their motivation and commitment towards work excellence. Quality Circles have emerged as a mechanism to develop and utilize the tremendous potential of people for improvement in product quality and productivity. Quality Circle is a small group of 6 to 12 employees doing similar work who voluntarily meet together on a regular basis to identify improvements in their respective work areas using proven techniques for analyzing and solving work related problems coming in the way of achieving and sustaining excellence leading to mutual upliftment of employees as well as the organisation.

It is "a way of capturing the creative and innovative power that lies within the work force". The concept of Quality Circle is primarily based upon recognition of the value of the worker as a human being, as someone who willingly activises on his job, his wisdom, intelligence, experience, attitude and feelings. Quality Circle concept has three major attributes:. Objective The objectives of Quality Circles are multi-faced.

It took more than two decades for the quality control concept to get acceptance in India, after its introduction in Japan. This may be due to the differences in the industrial context in the two countries. Japan needed it for its survival in a competitive market. India had a reasonably protected, sellers market, with consequent lethargy towards efforts to improve quality and productivity. However, with the policy of liberalisation of economy and privatisation of infrastructure development, contexts changed.

The concept now needs to be looked upon as a necessity. Business Process Re-engineering, if implemented properly can make any business successful. Business Process Re-engineering, like any other process and business idea has its drawbacks but this idea is constantly revised and constantly implemented through the various industries. The only way to improve Business Process Re-engineering is to learn from other companies mistakes and to gain competitive advantage over others.

Business Process Re-engineering can save a company from huge financial drawbacks, like in the case of Ford where Ford re-engineered their business and manufacturing process from just manufacturing cars to manufacturing quality cars, where the number one goal is quality. This helped Ford save millions on recalls and warranty repairs. Ford has accomplished this goal by incorporating barcodes in every one of their parts and scanners to scan for any missing parts in a completed car coming off of the assembly line.

This helped them guarantee a safe and quality car. Business Process Re-engineering is a successful business process. If implemented in the proper way, it can save businesses millions and therefore giving the business a competitive edge without sacrificing quality for price. One of the main goals of introducing BPR is to get a competitive edge and that can only be gained by providing the customers more than what the others in the market are asking for.

If a manufacturing company can master the skill of being efficient then they can automatically be more customer friendly and effective. Efficiency is not just about being efficient at the production floor level but the management level also has to be efficient. Brainstorming is a process for developing creative solutions to problems.

It works by focusing on a problem, and then deliberately coming up with as many solutions as possible and by pushing the ideas as far as possible. One of the reasons it is so effective is that the brainstormers not only come up with new ideas in a session, but also spark off from associations with other people's ideas by developing and refining them. One approach is to seed the session with a word pulled randomly from a dictionary. This word is a starting point in the process of generating ideas. When the participants say they "can't think of any more ideas" then give them about 15 more minutes as the best ideas sometimes come towards the end of long thought out thought processes.

Brainstorming can either be carried out by individuals or groups. On the other hand, groups tend to develop the ideas more effectively due to the wider range of diversity. Keep all the generated ideas visible. As a flip chart page becomes full, remove it from the pad and tape it to a wall as that it is visible. This "combined recollection" is helpful for creating new ideals. If the brainstormers have difficulty in coming up with solutions, you may have to reinstate the problem.

When you are sure the brainstorming session is over, it is time to select a solution. Every employee of the company was exposed to the principles of TQM during a series of awareness programmes held over a nine-month period. We have extended the TQM's scope in the last two years to cover our business partners, suppliers, carrying and forwarding agents, distributors, etc.

TQM principles. Cross-functional teams that work on improvement of processes that have the maximum impact on achieving the strategic objectives of the business. TQM is a philosophy of perpetual improvement. In short, implementing TQM is being proactive concerning quality rather than reactive. The basic principles for the Total Quality Management TQM philosophy of doing business are to satisfy the customer, satisfy the supplier, and continuously improve the business processes.

Questions you may have are:. The first and major TQM principle is to satisfy the customer--the person who pays for the product or service. Customers want to get their money's worth from a product or service they purchase.

If the user of the product is different than the purchaser, then both the user and customer must be satisfied, although the person who pays gets priority. A company that seeks to satisfy the customer by providing them value for what they buy and the quality they expect will get more repeat business, referral business, and reduced complaints and service expenses. Some top companies not only provide quality products, but they also give extra service to make their customers feel important and valued.

Within a company, a worker provides a product or service to his or her supervisors. If the person has any influence on the wages the worker receives, that person can be thought of as an internal customer. A worker should have the mind-set of satisfying internal customers in order to keep his or her job and to get a raise or promotion. Often in a company, there is a chain of customers, -each improving a product and passing it along until it is finally sold to the external customer. Each worker must not only seek to satisfy the immediate internal customer, but he or she must look up the chain to try to satisfy the ultimate customer.

A second TQM principle is to satisfy the supplier, which is the person or organization from whom you are purchasing goods or services. A company must look to satisfy their external suppliers by providing them with clear instructions and requirements and then paying them fairly and on time. It is only in the company's best interest that its suppliers provide it with quality goods or services, if the company hopes to provide quality goods or services to its external customers.

A supervisor must try to keep his or her workers happy and productive by providing good task instructions, the tools they need to do their job and good working conditions. The supervisor must also reward the workers with praise and good pay. The reason to do this is to get more productivity out of the workers, as well as to keep the good workers. One area of satisfying the internal suppler is by empowering the workers. This means to allow them to make decisions on things that they can control. This not only takes the burden off the supervisor, but it also motivates these internal suppliers to do better work.

The third principle of TQM is continuous improvement. You can never be satisfied with the method used, because there always can be improvements. Certainly, the competition is improving, so it is very necessary to strive to keep ahead of the game. Some companies have tried to improve by making employees work harder. This may be counter-productive, especially if the process itself is flawed. For example, trying to increase worker output on a defective machine may result in more defective parts.

Manage the quality of your projects in a professional way.

Examining the source of problems and delays and then improving them is what is needed. Often the process has bottlenecks that are the real cause of the problem. These must be removed. Workers are often a source of continuous improvements. They can provide suggestions on how to improve a process and eliminate waste or unnecessary work. There are also many quality methods, such as just-in-time production, variability reduction etc. The Cause and Effect diagram Ishikawa or the fishbone diagram as it resembles the skeleton of the fish, is a tool to detect the root cause of a problem.

It is widely used as it helps identify the main and associated causes leading to an effect symptom or a problem. It is one of the seven tools used in quality control - Cause-and-Effect diagram, check sheet, control chart, flowchart, histogram, Pareto chart, and scatter diagram. The box and line can be thought of as the head and spine of the fish. Write down the exact problem you face in detail. Where appropriate identify who is involved, what the problem is, and when and where it occurs.

Write the problem in a box on the left hand side of a large sheet of paper. Draw a line across the paper horizontally from the box. This gives you space to develop ideas.

Total Quality Management (TQM) - Project Management Knowledge

Next identify the factors that may contribute to the problem. Draw lines off the spine for each factor, and label it. These may be people involved with the problem, systems, equipment, materials, external forces, etc. Try to draw out as many possible factors as possible. If you are trying to solve the problem as part of a group, then this may be a good time for some brainstorming! Using the 'Fish bone' analogy, the factors you find can be though of as the bones of the fish. For each of the factors you considered in stage ii, brainstorm possible causes of the problem that may be related to the factor.

Show these as smaller lines coming off the 'bones' of the fish. Where a cause is large or complex, then it may be best to break the it down into sub-causes. Show these as lines coming off each cause line. By this stage you should have a diagram showing all the possible causes of your problem. Depending on the complexity and importance of the problem, you can now investigate the most likely causes further.

This may involve setting up investigations, carrying out surveys, etc. These will be designed to test whether your assessments are correct. This helps you to carry out a thorough analysis of a situation. In this technique, every problem is regarded as the effect and must therefore have its cause s. So to solve a problem, the classicist would exhaustively list down the possible causes and set about modifying their states hoping that the 'effect' would disappear. For instance, if an automobile mechanic is faced with the problem of a car not starting, he uses the Ishikawa approach and draws this 'fish-bone' diagram.

He then uses his own search algorithm and visits each of these causes till his 'effect' disappears. All might seem fine with this approach, but it suffers from three serious flaws:. The next step is to categorise the problem. Draw a diagram wherein this problem is picturised far right as illustrated in the diagram. Nevertheless, this might not be the actual problem. According to Ishikawa it could only be a symptom of the actual problem that will be detected in due course. Alongside the symptom or the problem, draw an arrow.

Later new categories and problem will branch out from the arrow as represented in figure — 2. The four causes for high employee turnover i. Include as many people as possible in these brainstorming exercises. This improves the reliability of the Cause and Effect Diagram. More the number of people more accurate are the categorisation of the causes for a problem.

Once the main causes management, locations, market place and benefits are identified, conduct brainstorming exercises for each of these causes. The horizontal lines represent these sub causes Figure 3. By identifying down the main problem and its causes one could simply draw a Cause and Effect diagram. However identifying the sub causes and mapping them to the main causes it equally critical. Sub causes help determine the effect of the problem to a higher degree of accuracy. They also help improve the visibility of the reasons for the problem.

Thus, by identifying the sub causes the management can take clear steps to iron out the problems. Brainstorming for the causes or the sub cause must be comprehensive. Simply put, the larger the fishbone diagram, the easier it is to picture the root cause of the problem. If coaxing the entire organisation to participate is tedious, involve at least those employees who understand the problem, should participate.

The causes, the sub causes and the sub-sub causes must be quantifiable. For a fishbone diagram to be readable and reliable the causes must be identifiable. Dig deeper. Often vague causes might appear while constructing a fishbone diagram. Then it is recommended these causes be branched into identifiable causes. Simply put they must be broken down into simpler causes. Vague or unclear causes should be avoided in the fishbone diagram.

They must be subjected to detailed analysis and their effects studied. Use majority if case of disagreement A brainstorming exercise can help determine most causes. Those with the highest majority are then put on the fishbone diagram. Thus conduct repeated brainstorming sessions to pen all possible sub causes that lead to a specific cause. Related causes. Often causes are relative. Hence create the fishbone diagram with relative causes as branching from one another. This improves the visibility of the cause and its effect.

It might also facilitate a common solution to related causes. Create actions plans. Once the fish bone diagram is complete, create clear action plans for solving the cases. Since few causes are of relative nature, actions plans must focus on catering to them as well. In the globalisation world, the environmental issues seem to be one of the most important topics. The pollution created in any manner such as air emission, effluent, land contamination, etc.

The International Organisation for Standardisation was founded to promote the development of international manufacturing, trade, and communication standards. The Organisation is composed of member bodies from more than countries. ISO standards exist for all industries except those related to electrical and electronic engineering. All ISO standards are voluntary. However, countries and industries often adopt ISO standards as requirements for doing business, thereby making them virtually mandatory in these cases.

ISO is a series of standards for environmental management. The ISO standards are divided into two categories: Organisation standards and Product and process standards. There is a great deal of interest on ISO Asia and Europe have the greatest number of companies certified registered to this standard. An EMS allows a company to manage, measure and improve the environmental aspects of its operations.

The Relationship Between Total Quality Management, Strategic Management and PMI Processes

It does this by setting specific goals and checking progress toward meeting those goals. Continual improvement of the EMS is achieved through system audits. ISO is the onlystandard of the ISO series through which a company can obtain independent certification. It consists of the following five main elements:. Initially, the organizations top management should have commitment and define the policy on EMS which is used for the direction of implementing and improving its EMS.

In order to achieve environmental policy, at least, the organization should:. In order to achieve environmental planning, at least, the organization should:. To ensure that the organization is performing in accordance with the stated EMS programmes, at least, the organization should:.

TQM (Total Quality Management) IN HINDI - Production & Operations Management - BBA/MBA - ppt

Implementing these five elements will enable any Organisation to achieve comprehensive environmental management. Implementing an EMS can benefit the organisation in the following ways:. There are two options currently available:. It generally takes about 12 to 18 months for companies to get ISO certified.

The time depends on the organisations existing EMS, size and internal resources. The scope and duration of the project. The capabilities of the available personnel. The preferences of the decision makers.

Setting up a nuclear power plant. Construction of civil works like bridges, buildings, roads etc. Computerization of human resources inventory. Building a modern hospital or stadium for sports meets. Project Quality Management has three key processes that you should perform in your projects Plan Quality involves identifying the quality requirements for both the project and the product and documenting how the project can show it is meeting the quality requirements. The outputs of this process include a Quality Management Plan, quality metrics, quality checklists and a Process Improvement Plan.

Quality Assurance is used to verify that the project processes are sufficient so that if they are being adhered to the project deliverables will be of good quality. Process checklists and project audits are two methods used for project quality assurance. Quality Control verifies that the product meets the quality requirements.

Peer reviews and testing are two methods used to perform quality control. The results will determine if corrective action is needed. The Pareto Chart is a simple tool that can help you become a better project manager. Learn how this diagram can put the Pareto Principle to practical use to improve your projects.

What is Quality Assurance?


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Definition and Principles for Projects. What is quality assurance? Quality assurance principles and definition explained for project environments. What is Quality Control? A Definition of Quality Control for Projects. What is quality control? A clear definition of quality control, the tools and techniques used to perform quality control, and how it differs from quality assurance.

This is where you can download my " Become A Project Manager Checklist " and other project management templates. Project Quality Management. What is Quality?