About quality, he says: "Quality ...is defined as the ratio of what is offered versus what is expected; if the offered exceeds [in some sense] the expected, quality responds to the need" From the project side, resources required to deliver quality must also be in balance: to wit: the resources needed must balance the resources available.
Here's a diagram to help make the point:
About value, he posits four definitions:
- Use value: the amount we are willing to pay for a deliverable that serves our functional need.
- Esteem value: the amount we are willing to pay for the pleasure of owing or possessing the deliverable
- Cost value: the cost to achieve a functional deliverable;
- Exchange value: the amount of current resources required to trade for an equivalent function
- Quality certainly has many dimensions. You can catch up on my thoughts about quality with this blog.
- Use value and esteem value are really the benefit streams to the business from the customer: sum up the risk weighted present value (PV) of all the benefits--what customers are willing to pay for the need or want--and you have a good way to compare the economic benefits of this project to any other that might be competitive
- Cost value is really the project budget; in EVM terms its the earnable value because it should be only the cost that investors want to pay, not the cost value they have to pay to get done.
- Exchange value: if we ever get to barter, this one may be a good one! But on a serious note, if there is competition for resources--and when isn't there?--then the exchange of resources between one project and another certainly makes the case for which is the more valuable.
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