GMS 450 Final: CRIB SHEET
17 May 2018
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Project Quality Management:
2 Ways of defining quality:
1. Conformance to Requirements: project’s processes & products meet written specification
2. Fitness for Use: product can be used as it was intended.
8 Dimensions of product Quality: Performance: product’s primary operating characteristics,
Features, : Additional characteristics; Reliability: Likelihood product will not fail; conformance:
Precision with which product service meets specified standards. Durability: Measures the length
of a product’s life; Serviceability: Speed with which product can be put into service when it breaks
down; Aesthetics: Subjective dimension indicating the kind of response a user has to a product;
Perceived Quality: Quality attributed to a good or service based on indirect measures.
MTBF: Mean time between failure – reliability (predicted, mathematical computation; actual, field
collected data)
MTTR: mean time to repair – average time (operator repairs 1hr, shop repairs 1-3hrs,
MajorOverhaule 3-60)
Quality Concepts:
1. Zero Defects= No tolerance for errors w/in the system or its processes. Six sigma
2. Quality Throughout: Impact product, process, organization (delivery; support – HR,
Legal, Procurement) – Requires total quality management TQM
3. Quality Cycle: Plan, Do, Check, Act
4. Continuous Improvement process(CIP): Concept that recognizes that innovation in
technology & business practices continuously driving change
5. Specification Practices: 1. Detail or prescriptive Specification – full etails of the
material to be used + method of installation; 2. Functional or Performance
Specification: Describes the end result required but not the method of achieving that
end result.
7 Basic Quality Tools
1. Cause & Effect diagrams: fishbone diagram or Ishikawa diagram; define nature of
problem through why question.
2. Check Sheets: Collection of data about a quality problem. 1. Define events & data, 2.
Decide WWWWWHW 3. Design check sheet 4. Collect Data. – modern tool = bar code
scanner, reporst
3. Histogram: Bar chart showing statistical distribution
4. Pareto Diagrams: Identify the few causes that contribute to a quality problem. Help
identify & prioritize problem areas.
5. Scatter Diagrams: Plotting ordered pair of two variables to determine if there is a
correlation between the variables.
Ø In process analysis two variables y & x can be functionally correlated
- The Independent Variable: The Variable x is referred to as the independent variable
- The Dependent Variable: The variable y is refrred to as the dependent variable
- The functional relationship: We define the relationship as: y=f(x)
6. Flow charts: showing
sequence & branching of steps
in a process.
7. Control Charts
Procurement & Contracts:
Procurement: Act of finding, acquiring, buying goods, services or works from an external
source vis often via tendering or competitive process bidding. Project Procurement
Management: Includes the process required to acquire goods & services to attain project
scope, from outside performing organization.
Major (High Risk) Procurement: purchase of something which does not exist, tailored to
project’s unique specification. Represent high risks to project’s technical, quality, costs &
schedule. (architecture design)
Minor (Low Risk) Complexity procurement: represent large monetary values, but the
commodities exist & will conform to the seller’s existing product specification. (computers,
generators, cars, buses)
Routine Buys of Commercial Off the Shel (COTS): purchase of substantial amounts of
materials that are often commercially available off the shelf articles or routine service. (office
supplies, raw materials)
Procurement Risks:
1. Risk Associated with Technical, quality or performance
2. Risk with schedule performance
3. Risk with cost performance.
Procurement Management Processes:
1. Procurement planning: determining what to procure & when à scope statement,
product description procurement resources, constraints (make or buy analysis)
Contract Type Selection:
Ø Fixed Price / Limp Sump: Involves a fixed total price for a well-defined product or service;
May include incentives for meeting project objectives such as schedule
Ø Firm Fixed price contract type; buyer pays the seller for agreed well-defined SOW
Ø fixed price incentive Fee FPOF; includes financial incentive for meeting/exceeding
objectives (schedule)
Ø fixed price with economic price adjustment (FP-EPA): providisons for adjusting final
price due to changes
2. Cost Reimbursable: Involves payment (reimbursement) to the seller for its actual costs,
plust a fee representing seller profit
Cost Reimbursable Contract Type: Buyer pays the seller for agreed project costs plus a
fixed fee payment
Cost Plus Incentive Fee (CPIF): CPIF is similar to Cost Plus Fixed Fee; Seller fee is based on
the estimated project costs, estimated hours, complexity etc.
3. Time & Material: hybrid of fixed price & cost plus contracts
Ø Time & Materials Contract type: buyer pays seller for all costs incurred.
4. Guaranteed Maximum Price: Protect buyer from excessive costs & motivate buyer &
seller to identify & share cost savings.
Ø Guaranteed Maximum Price Contract Type: Similar to cost plus fixed fee: Buyer pays the
seller for agreed project costs plus a fixed fee payment; Different from cost plux fixed
fee: Seller is subject to a ceiling price In the contract - Any savings are returned to the
buyer; Buyer exposure is limited to the ceiling - Buyer gains if actual cost is below ceiling
price
Solicitation Planning (solicitation: obtaining quotiations, bids, offers proposals)
1. Procurement documents: used to solicit proposals from pr
Ø Requests for Quotes (RFQ): used to solicit quites for well defined procurements (the
source selection is based on price
Ø Request for Proposal (RFP) : used to solicit proposals from prospective sellers where
there are several ways to meet the seller’s needs (the source selection is based on
technical skills & technical approach)
Ø Request for Information (RFP): used to obtain information from prospective sellers as to
what products or services are available. Often used to build a list of selers to sent a RPP
Ø Invitations for Bid (IFB): or negotiation & initial contractor responses are also part of
solicitation planning
Source Selection: Contract negotiation, weighting system, independent estimates, Bets final
offer BAFO.
Terminating the Project
Evaluation: progress & performance of the project ; give feedback to SM
Lessons Learned: Help improve organizations project management skills (risk identification)
Measurement: measuring project’s performance against planned budgets & schedules. Measurement of actual expenditure & earned value.
Project Auditing: project should be evaluated at key points in the project life cycle, not limited to after the fact analysis.
Timing of Audit: Initiation: Takes place early – prior to 25% completion of initial planning stage. Feasibility Study: Technical audit;
Preliminary Plan/schedule budget: Setting measurement to ensure conformance with standards
Master schedule: Flexibility of team limited; Evaluation of data by project team: Marginally useful, Team defensive about findings
Implementation: Depends on importance of project methology to successful implenent Post project: Depends on applicability to future projects
Audit Report: Introduction, Current Status, Future Project Status, Critical Management Issues, Risk Analysis & Risk Management, Final Comments
Types of project Termination
Ø Project Extinction: Project activity suddenly stops because it has been successfully completed or has a high expectations of failure
Ø Addition: When an in house project is successfully completed & is institutionalized as a new formal part of the organization
Ø Integration: Output of project becomes a standard part of the operating system of the sponsorring firm or client
Ø The new property, equipment and software are distributed among the existing elements of the parent or client organization
Ø Starvation: Occurs when it is impolitic to terminate a project but its budget can be squeezed until it is a project in a name only
Document Summary
Procurement: act of finding, acquiring, buying goods, services or works from an external source vis often via tendering or competitive process bidding. Management: includes the process required to acquire goods & services to attain project scope, from outside performing organization. Major (high risk) procurement: purchase of something which does not exist, tailored to project"s unique specification. Represent high risks to project"s technical, quality, costs & schedule. (architecture design) Minor (low risk) complexity procurement: represent large monetary values, but the commodities exist & will conform to the seller"s existing product specification. (computers, generators, cars, buses) Routine buys of commercial off the shel (cots): purchase of substantial amounts of materials that are often commercially available off the shelf articles or routine service. (office supplies, raw materials) Procurement planning: determining what to procure & when scope statement, product description procurement resources, constraints (make or buy analysis) Fixed price / limp sump: involves a fixed total price for a well-defined product or service;
