Key Takeaways

  • Quality is defined as the degree to which a set of inherent characteristics fulfills requirements - it is about meeting requirements, not exceeding them
  • Cost of Quality (COQ) includes Cost of Conformance (prevention and appraisal) and Cost of Nonconformance (internal and external failure costs)
  • The 7 Basic Quality Tools are: cause-and-effect diagrams, flowcharts, check sheets, Pareto diagrams, histograms, control charts, and scatter diagrams
  • Prevention costs (training, planning) are less expensive than appraisal costs (testing, inspection), which are less expensive than failure costs (rework, warranties)
  • Quality management follows the principle: plan quality into the project rather than inspect it in
Last updated: January 2026

Planning & Managing Quality

Quality management is about ensuring the project produces deliverables that meet requirements and satisfy stakeholder expectations. The focus is on prevention rather than inspection - building quality in rather than inspecting defects out.

Quality Management Processes

ProcessPurposeKey Output
Plan Quality ManagementIdentify quality requirements and standardsQuality Management Plan
Manage QualityTranslate quality plan into executable activitiesQuality Reports
Control QualityMonitor and record quality resultsVerified Deliverables

Quality vs. Grade

ConceptDefinitionExample
QualityDegree to which characteristics fulfill requirementsA product works as specified
GradeCategory assigned based on functional useBusiness class vs. economy class
  • Low quality is always a problem (defects, rework, customer dissatisfaction)
  • Low grade may be acceptable (a basic product that works as designed)

Cost of Quality (COQ)

Cost of Quality = Cost of Conformance + Cost of Nonconformance

Cost of Conformance (Good Money)

Investment to prevent failures from occurring:

CategoryDescriptionExamples
Prevention CostsPreventing defects before they occurTraining, planning, process documentation, equipment
Appraisal CostsEvaluating products for qualityTesting, inspection, audits, quality reviews

Cost of Nonconformance (Bad Money)

Costs incurred due to failures:

CategoryDescriptionExamples
Internal Failure CostsDefects found before deliveryRework, scrap, re-testing
External Failure CostsDefects found by customerWarranties, returns, lawsuits, lost reputation

COQ Principle

Prevention is cheaper than inspection, which is cheaper than failure.

LEAST COSTLY                    MOST COSTLY
     ↓                              ↓
Prevention → Appraisal → Internal Failure → External Failure

COQ Example

CategoryAmount% of Total
Prevention$50,00010%
Appraisal$100,00020%
Internal Failure$150,00030%
External Failure$200,00040%
Total COQ$500,000100%

The goal is to shift spending toward prevention to reduce overall COQ.


Quality Management Plan

The Quality Management Plan describes how quality policies will be implemented:

ComponentDescription
Quality StandardsStandards and regulations to follow
Quality ObjectivesMeasurable quality goals
Quality RolesResponsibilities for quality activities
Deliverables Subject to ReviewWhat will be inspected or tested
Quality Control ActivitiesHow quality will be verified
Quality ToolsTechniques and tools to be used

The 7 Basic Quality Tools

These tools, originally proposed by Dr. Kaoru Ishikawa, are fundamental for quality management:

1. Cause-and-Effect Diagrams (Fishbone/Ishikawa)

Identifies potential causes of problems:

  • Structure: Problem at the "head," major categories as "bones"
  • Categories: Often use 6Ms - Manpower, Methods, Materials, Machines, Measurement, Mother Nature (Environment)
  • Purpose: Root cause analysis using "5 Whys"

2. Flowcharts

Shows process steps and decision points:

  • Purpose: Visualize processes, identify waste or problems
  • Use: Process improvement, documentation

3. Check Sheets (Tally Sheets)

Structured form for collecting data:

  • Purpose: Collect data consistently
  • Use: Defect tracking, frequency analysis

4. Pareto Diagrams (80/20 Rule)

Bar chart showing problems in descending order:

  • Principle: 80% of effects come from 20% of causes
  • Purpose: Prioritize problems to address first
  • Use: Focus improvement efforts on biggest issues

5. Histograms

Bar chart showing distribution of data:

  • Purpose: Visualize data patterns and variation
  • Shows: Central tendency, dispersion, shape of distribution

6. Control Charts

Monitor process stability over time:

ElementPurpose
Center LineMean or target value
Upper Control Limit (UCL)+3 standard deviations
Lower Control Limit (LCL)-3 standard deviations

Rule of Seven: 7 consecutive points on one side of the mean (but within limits) indicates the process is out of control.

7. Scatter Diagrams

Plot two variables to show correlation:

  • Purpose: Identify relationships between variables
  • Shows: Positive, negative, or no correlation

Additional Quality Tools

Design of Experiments (DOE)

Statistical method for identifying optimal conditions:

  • Tests multiple variables simultaneously
  • Identifies which factors most affect results
  • More efficient than one-at-a-time testing

Statistical Sampling

Inspecting a subset rather than 100% of items:

Sampling TypeDescription
Attribute SamplingConforming/not conforming (pass/fail)
Variable SamplingMeasuring on a continuous scale

Quality Metrics

Quality Metrics define what will be measured and how:

Metric TypeExample
Defect RateNumber of defects per 1000 units
Customer SatisfactionSurvey score (1-10 scale)
Process Compliance% of processes followed correctly
Rework Rate% of work requiring rework
On-Time Delivery% of deliverables delivered on time

Manage Quality vs. Control Quality

Manage QualityControl Quality
Translates plans into executable activitiesMonitors and records quality results
Process-focusedProduct-focused
Audits and process analysisInspection and testing
Continuous improvementVerification of deliverables
ProactiveReactive

Quality Principles

Key Quality Concepts

PrincipleDescription
Customer SatisfactionMeet customer requirements
Prevention over InspectionBuild quality in, don't inspect it in
Continuous ImprovementKaizen - always seeking to improve
Management ResponsibilityLeadership must support quality
Cost of QualityInvest in prevention to reduce total cost

Quality Gurus and Concepts

GuruKey Concept
DemingPlan-Do-Check-Act (PDCA), 14 Points
JuranQuality Trilogy (Planning, Control, Improvement)
CrosbyZero Defects, Quality is Free
Ishikawa7 Basic Quality Tools

Key Takeaways

  • Quality is meeting requirements, not exceeding them
  • Cost of Quality = Conformance + Nonconformance costs
  • Prevention is cheaper than inspection or fixing failures
  • The 7 Basic Quality Tools are essential for quality management
  • Manage Quality is proactive; Control Quality is reactive
  • Quality should be planned and built in, not inspected in
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Cost of Quality Framework
Test Your Knowledge

A project manager invests in training team members on quality standards before development begins. This is an example of which Cost of Quality category?

A
B
C
D
Test Your Knowledge

A control chart shows seven consecutive data points above the mean but within the control limits. This indicates:

A
B
C
D
Test Your Knowledge

Which quality tool would be MOST useful for prioritizing defects to address first based on their frequency of occurrence?

A
B
C
D