Quality Management

Dr. S.W. Poon

Quality Management

Introduction Meaning of quality

Quality Control (QC) Quality Assurance (QA) Differences between QC & QA

Quality movement in the HK construction industry

Quality Management System Standards

Quality System levels

Level 1 – Design, development, production, installation and servicing (ISO 9001)

Level 2 – Production, installation and servicing (ISO 9002)

Level 3 – Final inspection and test (ISO 9003)

ISO 9000 & ISO 9001 Applying the clauses of ISO 9000 ISO 9000: 2000 version

ISO 9001: 2000 introduced major change to structure of standard e.g. regroup the Clauses 4.1 to 4.20 of the 1994 ed into 4 sections: Section 5 – Management responsibility Section 6 – Resource management Section 7 – Product realization Section 8 – Measurement, analysis and

improvement

ISO 9000 & 9001 (Cont’)

Other sections: Section 1 – Scope of standard Section 2 – Normative reference Section 3 – Definition of terms Section 4 – General and documentation

requirements of quality management system

Developing and implementing a quality

system Definitions (BS 4778)

Quality system Quality Manual Quality procedures Quality plan Quality audit

Developing a Quality SystemSTAGE 1 – Chief executive of the firm should commit to

quality assurance by declaring quality policy e.G. ‘Towards total customer satisfaction’

Make formal statement of the objectives e.G. ‘ To achieve ISO 9002 certification in 18 months’

Organizing management structure and defining responsibilities following the above activities

Developing a Quality System (Cont’)

STAGE 2 – Examine and review the existing internal documentation,

activities and procedures prior to preparation of quality manual and quality procedures i.e. quality system

STAGE 3 – Apply general quality procedures to specific contracts

when the quality system is completed and fully approved internally.

Staff should be familiar with quality assurance and understand their roles but training is required.

Developing a Quality System (Cont’)

STAGE 4 – Prepare quality plans and additional quality

procedures for specific contracts.STAGE 5 – Apply quality plans to specific contracts. Training

may be necessary.STAGE 6 – Internal and external audit of quality system;

review periodically all quality manuals and procedures.

Costs and Benefits of Quality Assurance

Costs Cost of conformance – prevention and

appraisal cost Non-conformance cost

Design faults – 9.5% of project cost and was the most important cause of contract claims

Construction faults – 2.5% of project costs

Cost and Benefits of Quality Assurance (Cont’) Benefits

Reduction in wastage Better team spirit Less staff conflict, enhanced job satisfaction Increased efficiency Confidence to clients, less customer

complaints, lower rejection rates, less reworks

More benefits …

Improved sales Shorter lead times Better relationship with subcontractors Reduced cost, increased profit Improved systems and standardized procedures Better workmanship, guaranteed quality

However, Tam’s (1996) survey shows only the following are the actual benefits conveyed to the contractors:

Tam (1996) Survey – Actual Benefits

Site control and condition Overall quality awareness Filing and documentation system leading to less

reliance on memory, speedier information update Delineation of responsibility Competitiveness Planning

Tam (1996) Survey – Actual Benefits (Cont’) Managerial improvements in:

Internal management Site supervision and management Staff morale and motivation

No improvements in: Safety and security Reduction in defects, wastages, rework and project duration Internal site communication Coordination and communication with architect and

consultant Agreement on performance criteria with clients

Total Quality Management (TQM)

Definition BS 7850 – “management philosophy and

company practices that aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization”

Total Quality Management (TQM) – Cont’

European Construction Institute (1993) recommends the following objectives to achieve TQM in construction: C – Commitment by top management O – Organization and structure for total quality

management N- Normal financial control S – Supplier relationships T – Training, education and safety awareness

Total Quality Management (TQM) – Cont’

R – Relationships with cutomers U – understanding and commitment by emplyess C – Communications T – Teamwork I – Independent certification to ISO 9000 O – Objective measurement N – Natural use of tools and techniques

Differences between QA & TQM – European Construction Institute (1993)

Differences between QA & TQM (cont’)

Tools of TQM – European Construction Institute (1993) Histograms and scatter diagrams to gather and display

data Brainstorming to encourage creative thinking and

generation of ideas Matrix analysis in shortlising and ranking using a two-

dimensional matrix Paired comparisons in prioritizing and ranking a number

of alternatives to achieve a specified criteria (analytic hierarchy process)

Ranking and rating in placing the options in order of preference by using a score system

Tools of TQM – European Construction Institute (1993) Pareto analysis to separate the major causes of the problems

form the minor ones Cause and effect diagrams, such as the fish bone diagram, to

identify potential causes of a problem Failure prevention analysis to anticipate problems before they

happen Force and filed analysis to identify the forces that help or

obstruct a change Process flow chart to show the sequence and resources of the

activities Effectiveness in implementing quality assurance

system