UNDERSTANDING

QUALITY MANAGEMENT
 HISTORICAL REVIEW OF QUALITY CONTROL

 Quality in articles and artefacts produced by skilled craftsmen

and artisans from the B.C. era eg. goldsmiths,silversmiths,
blacksmiths, potters,etc.

 Artists & Artisans Guilds in the Middle ages spent years

imparting quality skills and the worksmen had pride in making
quality products.

 Industrial Revolution brought factory manufacturing where

articles were mass-produced and each worker made only a
part of the product,and did not sense the importance of his
contribution to the quality of the product .
HISTORICAL REVIEW OF QUALITY CONTROL

 In 1924, W.A.Shewhart of Bell Telephone

Labs developed a statistical chart for the
control of product variables – the
beginning of SQC and SPC.
 In the same decade, H.F.Dodge and
H.G.Romig of Bell Telephone Labs
developed statistical acceptance
sampling instead of 100% inspection.
 In 1946,the American Society for Quality
Control was formed.
 In 1950, W. Edwards Deming,who learnt
SQC from Shewhart,taught SPC & SQC to
HISTORICAL REVIEW OF QUALITY CONTROL

 In 1954,Joseph M.Juran taught Japanese

managements their responsibility to
achieve quality .
 In 1960, the first quality control circles
were formed. SQC techniques were being
applied by Japanese workers.
 1970’s US managers were learning from
Japan Quality implementation miracles.
 In 1980’s TQM principles and methods
became popular.(also in auto industry)
 In 1990’s ,the ISO 9000 model became
the world-wide standard for QMS.
QUALITY
 The common element of the business
definitions is that the quality of a product or
service refers to the perception of the degree to
which the product or service meets the
customer's expectations:

 Quality has no specific meaning unless related

to a specific function and/or object

 Quality is a perceptual, conditional and

somewhat subjective attribute
BUSINESS HAS TRIED TO DEFINE QUALITY IN A
PRODUCER-CONSUMER CONTEXT, WITH THE
FOLLOWING VARIATIONS:

 ISO 9000: "Degree to which a set of

inherent characteristic fulfills
requirements." The standard defines
requirement as need or expectation.
BUSINESS HAS TRIED TO DEFINE QUALITY IN A
PRODUCER-CONSUMER CONTEXT, WITH THE
FOLLOWING VARIATIONS:

Six Sigma: "Number of defects per million

opportunities." The metric is tied in with a
methodology and a management system.
BUSINESS HAS TRIED TO DEFINE QUALITY IN A
PRODUCER-CONSUMER CONTEXT, WITH THE
FOLLOWING VARIATIONS:

 Joseph M. Juran: "Fitness for use." Fitness is

defined by the customer.

 Noriaki Kano presenting a two-dimensional

model of quality: "must-be quality" and
"attractive quality." The former is near to the
"fitness for use" and the latter is what the
customer would love, but has not yet thought
about.
 Genichi Taguchi, with two definitions:

 "Uniformity around a target value." The idea is

to lower the standard deviation in outcomes,
and to keep the range of outcomes to a certain
number of standard deviations, with rare
exceptions.

 "The loss a product imposes on society after it

is shipped." This definition of quality is based
on a more comprehensive view of the
production system.
 American Society for Quality:
 A subjective term for which each person has his or
her own definition.
 In technical usage, quality can have two meanings:
the characteristics of a product or service that
bear on its ability to satisfy stated or implied
needs;
 A product or service free of deficiencies.
Peter Drucker:
"Quality in a product or service
is not what the supplier puts
in. It is what the customer gets
out and is willing to pay for."
 Quality Concepts

 For Design
*Aesthetics (good design taste)
*Functionality (design does what it is intended
to: meet building code requirements)
*Safety (safe for occupiers; meet building code
requirements)
* Cost (within client’s budget)
 Quality Concepts

 For Construction

• Workmanship (quality of constructed

work)
• Integrity (according to drawings and
specifications)
• Completion time in the project
according to clients requirements
 Quality Concepts

 Zero Defects – states that there is no tolerance

for errors within the system. The goal of all
processes is to avoid defects in the product or
service

 The Customer is the Next Person in the Process –
based on providing the internal organization a
system that ensures the product or service is
transferred to the next person in the process in a
complete and correct manner
 Quality Concepts

 Continuous Improvement Process – is a holistic

approach to an organization that focuses on principles
while making the process improvements

 Process Capability – in evaluating the processes

which will be used to produce a system, it is essential
that the process be capable of performing the
required functions to achieve the desire outcome.
 EFFECTS OF POOR QUALITY

 Low customer satisfaction

 Low productivity, sales & profit
 Low morale of workforce
 More re-work, material & labour costs
 High inspection costs
 Delay in shipping
 High repair costs
 Higher inventory costs
 Greater waste of material
 BENEFITS OF QUALITY

 Higher customer satisfaction

 Reliable products/services
 Better efficiency of operations
 More productivity & profit
 Better morale of work force
 Less wastage costs
 Less Inspection costs
 Improved process
 More market share
 Spread of happiness & prosperity
 Better quality of life for all.
QUALITY

 Quickly

 Understand &
 Act On
 Losses

 Innovatively

 Technical ( Theoretical )

 Yield
TOTAL QUALITY MANAGEMENT
(TQM) –
 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)
 R – Relationships with customers
 U – understanding and commitment by
employees
 C – Communications
 T – Teamwork
 I – Independent certification to ISO 9000
 O – Objective measurement
 N – Natural use of tools and techniques
 WHAT IS CUSTOMER SATISFACTION?

 Is it due to Product quality?

 Is it due to pricing?

 Is it due to good customer service ?

 Is it due to company reputation?

 Is it something more?
 CUSTOMER SATISFACTION
 Customer is the Boss or’King’
 Customer dictates the market trends and direction
 Customer not only has needs to be supplied( basic
performance functions)
 Also he ‘wants what he wants!’( additional features satisfy him
and influence his purchase decision)
 Hence the Suppliers and Manufacturers have to closely follow
at the heel of the customer.
CUSTOMER TYPES

 External and Internal customers

 External – current, prospective and lost customers
 Internal – Every person in a process is a customer of the
previous operation.( applies to
design,manufacturing,sales,supplies etc.) [Each worker
should see that the quality meets expectations of the next
person in the supplier-to-customer chain ]
 TQM is commitment to customer-focus - internal and
external customers.
INTERNAL CUSTOMER/SUPPLIER
RELATIONSHIPS

 Questions asked by people to their internal

customers
 What do you need from me?

 What do you do with my output?

 Are there any gaps between what you need

and what you get?
 Good team-work and inter-Departmental
harmony is required. Also the leaders role in
supervising the internal customer-supplier
 TQM AND CUSTOMER QUALITY PERCEPTS

 TQM is quality management and management

of quality – there is no full stop and no break in
the chain!
 Continuous process (quality) improvement is all
its about.
 Why? One important reason is the customer
quality level is not static and his expectations
keep changing and his demands too!
 Also plant process dynamics- how to achieve
maximum efficiency , optimizing cost and
performance in the process operations,
The “plan-do-check-
act” cycle is the basis
for quality
improvement.

Quality improvement
initiatives can improve
the quality of project
management as well
as the quality of the
product.
 7 HABITS OF HIGHLY EFFECTIVE PEOPLE
( STEPHEN COVEY)

 Be pro-active
 Begin with the end in mind
 Put first things first (ref.Covey’s Time management
matrix pg.35)
 Think win-win
 Seek first to understand, then to be understood
 Synergy
 Sharpen the saw
QUALITY MANAGEMENT
PROGRAM
QUALITY MANAGEMENT COMPLEMENTS
PROJECT MANAGEMENT

QM & PM both recognize the importance of

four (4) basic principles:

􀂋 Customer satisfaction
􀂋 Prevention over inspection
􀂋 Management responsibility
􀂋 Continuous improvement
 PROJECT QUALITY
MANAGEMENT
• Is viewed as a total commitment to manage a firm’s
resources to achieve the highest levels of performance in
everything in which the firm is involved.

• provides all the tools to make sure your project turns

out as planned

• harnessing everyone’s effort to achieve zero defects at

lowest cost, and zero defects means continually
satisfying customer requirements
 PROJECT QUALITY MANAGEMENT

is a method for ensuring that all

the activities necessary to design,
develop and implement a product
or service are effective and
efficient with respect to the
system and its performance
 Achieving Quality on Projects
Attitude of mind Achieving a
Quality of
quality product
management
process
Preventive
medicine
Quality
Assurance

Quality
Control
Curative
Medicine
Quality of the
product

Ultimate Goal
Approach to project
quality
Quality Assurance Strategy

Quality Assurance with

Continuous Improvement

Quality Control

Test and
Inspection
 PLAN-DO-CHECK-ACT CYCLE
PLAN
QUALITY PLAN

ACT DO

QUALITY IMPROVEMENT QUALITY ASSURANCE

CHECK
QUALITY CONTROL
 PLAN
Quality Planning – identify which quality standards are relevant
to the project and determining how to satisfy them
1. Input
2. Tools and Techniques
• Quality Improvement
• Benefit/Cost Analysis
• Quality Policy
• Benchmarking
• Project Description
• Flowcharting
• Standard Regulation

3. Outputs
• Quality Management Plan
• Operational Definitions]
• Checklist
 DO
Quality Assurance - evaluating overall project performance on a
regular basis to provide confidence that the project will
satisfy the relevant quality standards
1. Input
• Quality Management Plan
• Results of quality control measurement
• Operational Definitions
2. Tools and Techniques
• Quality Planning (Tools and Techniques)
• Quality Audits
3. Outputs
• Quality Improvements
 CHECK
Quality Control - monitoring specific project results to
determine if they comply with the relevant quality standards
and identify ways to eliminate causes of unsatisfactory
performance
3. Outputs
1. Input
• Quality Improvements
• Works results
• Acceptance Decisions
• Quality Mngt Plan
• Rework
• Operational Definition
• Completed Checklist
• Checklist
• Process Adjustments

2. Tools and Techniques

• Inspection
• Seven New Quality Control Tools
(Pareto Analysis, Data –Tables, Cause-Effect Analysis, Trend Analysis
Histograms, Scatter Diagrams, Control Charts) and other Management
Tools and Techniques
 ACT
Quality Improvement - includes taking action to increase the
effectiveness and efficiency of the project maintaining and
improving the current standard
1. Input
• Quality Improvement Philosophy and Principles
2. Tools and Techniques
• Suggestion Scheme
• 5’s (Sort, Systematize, Sweep, Sanitize, Self-Discipline)
• Work Simplification (Work Measurement & Work Study)
• Quality Circle
• ISO 9000 (Quality Management System Standards)

3. Output
• Improved Quality Standard
FIVE TYPES OF PROBLEMS
 Compliance
 Unstructured

 Efficiency

 Process Design

 Product Design
 CONTINUOUS PROCESS IMPROVEMENT
CYCLE
Phase I
Identify the Opportunity

Phase 7 Phase 2
Plan for the future Analyze the process
Act Plan

Phase 6
Study Do
Standardize Phase 3
the solution Develop the
optimal solution(s)

Phae 5 Study Phase 4

the results Implementation
Why Quality Assurance?

A good quality assurance system in the

construction will:
• Identify objectives and standards
• Be multifunctional and prevention
oriented
• Plan for collection and use data in a
cycle of continuous improvement
• Plan for the establishment of and
maintenance of performance measure
 Quality Assurance have a little value if
the systematic methods were not
properly managed that includes:

 Document Control: To ensure

employees have the correct procedures
and the procedures are properly
maintained.
 Audits: To verify quality procedures are
being followed.
.
 Quality Assurance have a little value if
the systematic methods were not
properly managed that includes:

Non-conformance Tracking: To monitor

and track quality issues to ensure that
defects are kept from your customer
 CPA (corrective and preventative
action): To correct flawed processes (i.e.
quality procedures) when detected via
audits and non-conformance tracking to
prevent defects from reoccurring.
 Quality Assurance have a little value if the
systematic methods were not properly
managed that includes:

 Management Review: Reviewing

quality system data (performance)
(quality metrics) to determine if the
quality system is working and if it is not,
taking the appropriate action to improve
the system.
 Why Quality Control?

It is a process of diagnosis and cure. As

the facility is erected and commissioned it
is checked against the specification to
ensure that it is of the required standard,
and any variance are eliminated. The
activities by which this is done must be (a)
planned, (b) tested, ( c) recorded and,
(d) analysed.
Planned: quality control consumes resources, and so
activities must be planned so that those resources are
allowed for in the projects estimated and are available to
conduct the tests at the right time
 Why Quality Control?
Tested: it must be known that the method of checking the
specification will highlight variances

Recorded: the results must be recorded to provide a

historical record for planning future projects, and to be able
to analyze trends

Analyzed: the results must be analyzed to determine the

cause of any variance so it can be eliminated and the
analysis of trends can indicate potential problems before
they occur.
REMINDERS
 Quality Control
 Quality Assurance
 Quality Management
 Zero Defects
 Do the Right Thing Right the First
Time
 Construction Improvement Process
 WHICH STANDARDS CAN BE
INTEGRATED?
 ISO 9001 – QMS- Quality Management System
 ISO 14001- EMS – Environmental
Management System
 OSHAS 18001 – Safety & Health System

 ISO 22000 – Food & Safety Management

System
 ISO /ISO 20000- IT Service Management
System
 ISO/IEC 27000- Information Security System
WHY INTEGRATE ?
 REDUCE COSTS
 SAVES MANAGEMENT TIME

 HARMONIZES SYSTEMS

 HOLISTIC APPROACH TO RISK

MANAGEMENT
 ENHANCES BUSINESS FOCUS

 OPTIMIZES INTERNAL & EXTERNAL

AUDITS
 IMPROVES COMMUNICATIONS
BEST FIVE RIDDLES
1. A murderer is condemned to death. He has to choose between three
rooms. The first is full of raging fires. The second is full of
assassins with loaded guns. The third is full of lions that haven't
eaten in 3 years.. Which room is safest for him

2. A woman shoots her husband. Then she holds him under water for
over 5 minutes. Finally, she hangs him. But 5 minutes later they both
go out together and enjoy a wonderful dinner together. How can this
be?

3. What is black when you buy it, red when you use it, and gray when
you throw it away?

4. Can you name three consecutive days without using the words
Wednesday, Friday, or Sunday?

5. This is an unusual paragraph.

I'm curious as to just how quickly you can find out what is so
unusual about it. It looks so ordinary and plain that you would think
nothing was wrong with it. In fact, nothing is wrong with it! It is
highly unusual though. Study it and think about it, but you still may
not find anything odd.. But if you work at it a bit, you might find out.
Try to do so without any coaching!
ANSWERS

1. The third room. Lions that haven't eaten in three years

are dead. That one was easy, right?

2. The woman was a photographer. She shot a picture of her

husband, developed it, and hung it up to dry (shot; held
under water; and hung).

3. Charcoal, as it is used in barbecuing.

4. Sure you can name three consecutive days, yesterday,

today, and tomorrow!

5. The letter e, which is the most common letter used in the

English language, does not appear even once in the
paragraph.