PROJECTS AND QUALITY
Modern quality management is an evolutionary, and in some senses revolutionary, set of principles and practices, which are often associated with such names as Total Quality Management (TQM), Total Quality Control (TQC), Total Quality Excellence (TQE), Company Wide Quality Control (CWQC), and the like.
The difference between the traditional approach and the modern ap-preach is well expressed from a Japanese company source, quoted by Scherkenbach:
- “To practice quality control is to develop, design, produce and service a quality product which is most economical, most useful and always satis factory to the customer.
- Narrowly interpreted, quality means quality of product.
- Broadly interpreted, quality means quality of work, quality of service, quality of information, quality of process, quality of (departments), quality of system, quality of objectives, etc.
- To control qualify in ifs every manifestation is our basic approach. ”
From this it can be seen that modern quality management is a collection of concepts and practices which go far beyond the more traditionally narrow interpretation of qualify as being fitness for use.
This is a very topical subject within PMI. Lew Ireland has recently completed a draft handbook on Qualify Management, which is now in the early stages of a formal review process. This handbook is very much concerned with the application of modern quality management to projects.
Additionally, Bob Templefon has formed an expert commiffee to review the Qualify Management section of the PMBOK in light of developments in modern quality management.
If would be premature to anticipate the results of these two efforts. However, Fran Webster made a significant contribution to establishing the nature of the project process, and linking this with modern quality management, in a paper he delivered to the 10th INTERNET Congress in June 1990. In view of the typicality of the subject, a version of his paper is presented below.
Alan Stretton Chairman, Standards Committee
Project management as a concept is still suffering the misconception that it is applicable only to very large undertakings. This leads to some erroneous conclusions about the application of the principles of modern project management.
It also suffers from an overemphasis on the unique nature of projects. While the project may be unique, it is generally composed of many activities which are performed repeatedly in the project and of materials which are produced in large quantities by mass production techniques. As the scope, magnitude and demands of projects increase, project managers must have a broader understanding of all elements of the processes involved.
Furthermore, while most project managers, being products of their environment, perceive projects as onetime efforts, it must be recognized that such efforts generally result in a product which is either used in performing repeated, continuing operations or is the design of a product which will be produced in repeated, continuous operations. Therefore a broader perspective is required to understand the language and expectations of the client or customers as they become accustomed to near perfection in their operations.
The purpose of the following is to develop an abstract concept of a project which provides a unifying framework for the elements of theory and practice and to integrate the essential concepts of modern project management and modern quality management.
DEFINITIONS
The official Project Management Institute definition of “project” as presented on page 4-3 of the Project Management Body of Knowledge (PMBOK) is:
Project: Any undertaking with a defined starting point and defined objectives by which completion is identified. In practice, most projects depend on finite or limited resources by which the objectives are to be accomplished [8].
This definition certainly meets the criteria of parsimony, i.e., being as concise as possible, but in so doing does not seem to meet the criteria of distinctiveness, i.e., distinguishing this concept from all others within a class.
In 1975, the following definition was presented:
Project: A combination of human and nonhuman resources pulled together in a temporary organization to achieve a specific purpose [1, p. 184].
But for the reference to “non-human,” the emphasis on the resources and the organization stresses the participants in the project and, thus, is closer to a definition of a project team than to a project itself. It could be argued that the resources are the means by which the project is accomplished rather than the project itself.
An alternative definition of a project which dates back to 1960 follows:
A development project is a finite sequence of purposeful, temporally ordered activities, operating on a homogeneous set of problem elements, to meet a set of specified objectives representing an increment of technological advance [6, p. 41].
While intended to focus on a particular type of project, it added detail which achieved a higher degree of distinctiveness and focused on the essence of the project itself.
Some comments on the above are relevant. For example, rather than emphasize the temporal nature of the sequential relationships, as in the preceding definition, it seems appropriate to focus on the technological relationships. This is a useful guide to planners to prevent implicitly scheduling a project before the first computer schedule calculations are made.
A frequently-referred-to characteristic of projects is “conflict management.” A major cause of the conflicts is the heterogeneity of the resources in a project, especially the human resources. Thus, this must be recognized in understanding the nature of a project.
While many projects result in a single unit of output, the occurrence of work efforts involving multiple units being approached as projects is frequent enough to recognize that as a characteristic of projects.
THE PROJECT VERSUS THE PRODUCT OF THE PROJECT
The word “project” is often used ambiguously, sometimes referring to the project and sometimes referring to the product of the project. This is not a trivial distinction as both entities have characteristics unique to themselves. The names of some of these characteristics apply to both. For example, the life cycle cost of a product includes the cost of creating it (a project), the cost of operating it, the cost of major repairs or refurbishment (typically done as projects), and the cost of dismantling (often a project, if done). The project cost of creating the product is generally a relatively small proportion of the life cycle cost of the product.
This logic leads to a simple definition.
A project is a temporary process involving heterogeneous resources to create one or a few units of a unique product.
While it may not be necessary as a part of the definition, the recognition of time pressure adds to the richness of understanding and explains why the dimension of projects which has received the most attention in “project management systems” has been time. This will be further refined below.
A TAXONOMY OF WORK EFFORTS
One of the important aspects of a definition is the development of an exhaustive taxonomy of the concepts of which the item or concept to be defined can be differentiated.. In short, what are the comparative others for this concept. Interestingly, an examination of the literature discloses several taxonomies which do not mention project as a distinctive concept [3],[7],[13]. Work efforts which are characteristically performed in the project mode are mentioned but this term is not mentioned as such. Thus, a taxonomy must be developed.
Such a taxonomy was developed based on the above. It has three dimensions—mode of work effort, batch size, and diversity of processing—forming a “process matrix.”
Modes of Work Efforts
There are five basic modes in which work is accomplished. While most organizations perform some work in several of these modes, generally one mode is dominant in the core technology of the organization. All of these modes can be characterized as processes composed of one or more technologies/operations. Technologies in this sense does not imply just engineering or manufacturing technologies. They include all sorts of office technologies, including the copier as well as the computer, and the “technologies” involved in producing an advertising or political campaign, designing a training program or a curriculum, or producing a movie.
The modes of work efforts are:
- Craft-a process composed of a collection of one or more technologies/operations involving homogeneous human resources, generally a single person, producing a narrow range of products/services.
This is best characterized by the single artist/craftsman producing one unit of product at a time. Other examples are of a single cook preparing a meal to order or a doctor examining a patient in the doctor's office.
- Project-a temporary process composed of a constantly changing collection of technologies/operations involving the close coordination of heterogeneous resources to produce one or a few units of a unique product/service.
This is best characterized by the construction of a major building, but applies also to the creation of a document, such as a proposal on a contract, or all the activities performed by the various medical personnel in the process of preparing for and conducting a surgical operation.
- Job Shop-a process composed of a loosely coordinated collection of heterogeneous technologies/operations to create a wide range of products/services where the technologies are located in groups by function and the time required at each work station is varied.
This is best characterized by the manufacturing plant in which equipment is located or grouped into departments by type or function and the product/service is performed by moving the unit being worked upon from one department to another in a non-uniform manner. It is also the mode of operation of many kitchens and the mode used for physical examinations performed in hospitals.
- Progressive Line-a process composed of a tightly coordinated collection of heterogeneous technologies/operations to produce a limited range of products/services in which the technologies are located serially, the operator is directly involved in the work on the product, and the time allotted at each work station is the same.
The traditional automotive assembly line is the stereotypical example. Since this mode is used for both assembly and disassembly, the more general term, “progressive,” is more appropriate. It is also the typical mode of serving for cafeterias and the mode in which physical examinations are given to large groups of people, such as for the military. Note that manufacturing cells fit in this category.
- Continuous Flow-a process composed of a tightly coordinated collection of technologies/operations which are applied uniformly over time and to all the many units of a very narrow range of products/services, and in which the role of the operator is primarily to monitor and adjust the processes.
Petroleum refineries are the most popular example of this mode. In addition, based on an examination of the characteristics of this mode, electric generating stations, water as well as sewage treatment facilities, and automatic transfer lines such as those used in producing engine blocks and transmission housings are examples of this mode.
It should be noted that there is an explicit economic relationship between these modes. In general, craft mode has the lowest fixed or investment costs but a very steep unit cost curve. Project mode involves greater fixed or investment costs but has a somewhat lesser sloped unit cost curve. Job shop and progressive lines continue this progression with continuous flow process having the highest fixed or investment cost but a relatively flat unit cost curve. Thus, not only are the other modes inherent in most projects, it is to the benefit of the project for every advantage to be taken of this natural economic phenomena to reduce the costs on a project by moving as far towards continuous process mode on as much work as is feasible.
Batch Size
Another variable identified in the classic work of Joan Woodward is batch size [12]. The batch size can be broken into four broad classes:
- Unit – “one off” as is generally the case in projects, often the case in some job shops, and frequently in the craft mode.
- Small – occurs occasionally in projects but most frequently in job shop and craft modes.
- Large – most likely to occur in job shops and progressive line but is often used in producing chemical products in continuous flow mode.
- Infinite – typical of refineries, chemical plants, and utilities.
Projects tend to produce single or a few units but occasionally produce a considerable quantity of units as a part of the project.
Diversity in Processing
One other characteristic of processes which provides insight into applicable techniques, procedures, and practices is diversity in processing. Diversity in processing is categorized as:
- Unique – every unit receives different processing. This is frequent in the craft and project modes and often in the job shop mode. A van customizing shop may operate in this manner with each unit being designed, built and trimmed differently.
- Differentiated – many processes are standardized but non-standard processing is allowed on certain features.
- Standardized – each process is predesigned to include two or more options. Each unit receives processing according to one of these options at each processing step. No deviations are allowed from these standard processes although the combinations of options can lead to millions of unique products.
- Homogeneous – every unit receives exactly the same treatment, such as in a petroleum refinery where a unit might be considered a gallon of hydrocarbon however, this characteristic is not unique to continuous flow mode.
Figure 1. Process Matrix
These three process characteristics—mode, batch size and diversity of processing—are combined to form the process matrix as shown in Figure 1. Many project processes are unique but some are simply differentiated or even standardized. For example, one housing project on which the author worked produced 740 units of some ten standardized designs.
A FURTHER ABSTRACTION
Given the partial definition that a project is a temporary process to produce one or a few units of a unique product/service, it is appropriate to examine the characteristics of the process. Consider the following:
The essential characteristic of the process by which a project is performed is the progressive elaboration of specifications.
A project is initiated by a person (perhaps a member of an organization) recognizing a problem or opportunity about which some action is to be taken. That person, alone or in concert, develops an initial concept of the action to be taken in the form of a product, be it a product for sale, a new facility, or an advertising campaign. Much work needs to be accomplished to take this meager concept to the reality of the product. This work, though often not conceived as such, is accomplished by instituting a project.
The general concept is expanded into a more detailed statement of requirements. These are examined for feasibility … market, technical, legal, organizational, political, etc. … resulting in further refinement of the specifications. These are then the basis for general design, the products of which become the basis for detail design. The detail designs are followed by production designs, tooling, production instructions, etc., each stage producing an elaboration on the specifications of the prior stage. Eventually, the product of the project takes shape, is tested, and ready for operation. At this stage, give or take a few details, the project is completed with the delivery of the product of the project.
MODERN QUALITY MANAGEMENT APPLIED TO PROJECTS
This abstract concept of a project is especially relevant to understand the application of modern quality management. Modern quality management begins with a new definition:
Quality-conformance to
requirements/specifications.
The relevance of “conformance” can be made no more clear than as presented in the first nine pages of Chapter 4 in “Quality is Free [2].” To begin there must be a clear understanding of the customer's/client's requirements in a product. These then become the specifications for the next stage. This process continues throughout the project until the product of the project is completed.
When these concepts are combined with another essential concept of modern quality management then a new perspective is available on the project as a process. This is:
The customer is the
next person/operation
in the process.
Thus, as the progressive elaboration of specifications proceeds, the “customer” is the next engineer, the tool builder, the ad layout person, and so on. If the product going to them has no defects, they can perform their tasks in the most efficient manner and:
Do the
right thing
right
the first time.
This is the way to achieve “zero defects.” Repeated experience has shown that more attention to doing jobs right the first time eliminates so much rework/scrap costs as to fully support the proposition that “quality is free.”
Given this concept of a project as a process is essential for the application of “process control,” and more specifically, statistical process control, to the management of projects. One approach to this was presented in Validating Technical Project Plans [10]. It involves procedures for reviewing the plans for a project in much the same manner as design or construction review teams analyze the design of a product for such things as structural integrity or constructability.
Another approach was outlined in Reliability/Maturity Index [5]. This concept identified events in a project network which marked the completion of activities which either measured or contributed to the reliability of the product of the project. Other concepts/techniques were identified in Responsibility for Quality in a Project, including failure mode and effect analysis, fault tree analysis, and stratified random sampling [4]. Still others involve the development and application of methods/technologies which permit the operator on a project to perform inspections on the product immediately upon completion or even during the performance of an operation.
Continuous improvement.
Finally, a major concept integral to modern quality management is:
Probably the most central notion to the quality philosophy of W. Edwards Deming is “reduce variability”-understand process capability, identify the sources of variability, fix them so they stay fixed and … repeat this process of continuous improvement. Improvements can and should be achieved in understanding the requirements of the client/customer as expressed in the specifications and in designing the process by which these specifications are progressively elaborated during the project. To a large extent, this has been a continuing practice at societal, industry, and organizational levels in the adoption of codes, standards, methods and practices.
Continuous improvement can be achieved even further as projects are viewed as processes involving these methods and practices and we ensure their compatibility and that they are understood and followed by all participants in the process. Many of these processes, if viewed as repetitive in the life of the organization as opposed to unique within a project, are amenable to process control techniques used in volume manufacturing. Other processes are applied repetitively within a project and are even more amenable to process control techniques and even statistical process control.
CONCLUSION
By developing an abstract definition of a project, clearing away all nuances of specific technologies or industries and putting it in the context of an appropriate taxonomy, it becomes clear that projects fill an essential need of society. Indeed, projects are the major mode in which change is accomplished in a society. It is the mode in which corporate strategy is implemented.
Projects need be neither large, high-tech, nor complex. Their management is often complex due to the need to closely coordinate the heterogeneous resources in a manner to efficiently and effectively achieve the objectives of the project. And, this must be done right the first time, often with a complete new set of players. This is further compounded by the fact that the mix of technologies / operations are constantly changing over the life of the project.
Having stripped away the unnecessary, it is clear that a project itself is a process. The essential concept of this process is the progressive elaboration of requirements/ specifications. From this it is easy to integrate the essential concepts of modern quality management, including “conformance to requirements/ specifications,” “do the right thing right the first time,” “the customer is the next person/operation in the process,” “continuous improvement,” and ultimately “statistical process control.”
It should be noted that the statistical process control techniques and concepts currently applied in job shops are essentially the same techniques and concepts that have been applied for decades in continuous flow processes. These techniques and concepts have migrated from the continuous flow process technologies to progressive line, and are now accepted practice in job shop mode operations. The next step is the project mode. Most objections offered today in project industries are little different from those of job shop practitioners a mere decade ago.
The conceptualization and definition presented above is critical to the future of the project-oriented industries/organizations as they strive to match the performance of the volume manufacturing organizations in achieving quality and reliability levels for which defects are measured in parts per million. It is critical to all organizations which hope to survive in a world where change is happening at an increasing pace, for projects are the means for responding to, if not proactively anticipating, the environment and opportunities of the future.