Managing Quality

Agenda

What is quality? Importance of quality management Quality systems ISO 9000 Total Quality Management (TQM) Quality management in construction Quality costs

What is quality?

• Meeting customer need (Crosby)

• Fitness for purpose (Juran)

• Conformance to specification

• Characteristics and properties of a product, seen as a whole, as ability to fulfil specified or implied requirements of the customer

Quality means ....

• freedom from deficienciesfreedom from deficiencies

• ‘‘doing it right the first time’doing it right the first time’

• client satisfactionclient satisfaction

• satisfaction of all employees (all project satisfaction of all employees (all project stakeholders)stakeholders)

• continously improving performancecontinously improving performance

reduce costsreduce costs

repeat businessrepeat business

staying competitivestaying competitive

Quality

• Must not be confused with grade (class)

• Grade is a category or rank given to entities having the same functional use but different technical characteristics

Why is quality management essential?

Success of JapanSuccess of Japan

GlobalisationGlobalisation

CompetitionCompetition

Customer requirementsCustomer requirements

Constant changeConstant change

The global business environmentcontinous continous improvement !improvement !

• Canon could sell photocopiers cheaper than Xerox’s manufacturing costs Major restructuring at Xerox

• Mazda’s Orders Payable mechanism worked satisfactorily with 5 employees whereas Ford had problems with 500 employees (1986)

• ....

The global business environment

Famous cases of strong competition from Japan, causing a change in business processes of American firms:

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

Average sales price

Average cost

The global business environment

Some definitions

• Quality planning:Quality planning: Identifying which quality standards are relevant to the project and determining how to satisfy them• Make quality policy• Determine scope and make statement• Make product description• Take into account standards and regulations

Some definitions• Quality Control (QC):Quality Control (QC): A set of activities or techniques

whose purpose is to ensure that all quality requirements are being met by monitoring of processes and solving performance problems Monitoring work results Inspections and tests

• Quality Assurance (QA):Quality Assurance (QA): A set of activities or techniques whose purpose is to demonstrate that quality requirements are met. QA should give confidence that quality requirements are being met Prepare quality plans Audits Training etc.

QC ~ detecting errors

QC ~ detecting errors

QA ~ eliminating errors

QA ~ eliminating errors

““Getting it right first time”

Getting it right first time”

Quality of processes

Quality of productQuality of product

Quality of processesQuality of processes

• To achive quality consistently, we cannot rely on quality control (QC)

• We must ‘build in’ quality in the production process

• This we achieve through Quality Assurance (QA)

• QA is about decreasing cost that occur due to checking of work and expensive remedial works

Quality hierarchy

TOTALQUALITY

MANAGEMENT

QUALITYASSURANCE

QUALITY CONTROL

INSPECTION AND TESTING = Data collection, creation of = Data collection, creation of records ...records ...

= Detection of defects according = Detection of defects according to quality plan, categorisation, to quality plan, categorisation, statistical techniques ...statistical techniques ...

= Prevention of defects through = Prevention of defects through management and procedures to management and procedures to ‘build in’ quality into the production ‘build in’ quality into the production system system make make quality systemquality system

= ensuring continous improvement of the = ensuring continous improvement of the performance of all activities, for benefit of performance of all activities, for benefit of all customers and employeesall customers and employees

DEFECTS DETECTIONDEFECTS DETECTION

DEFECTSDEFECTS

PREVENTIONPREVENTION

CONTINOUSCONTINOUS

IMPROVEMENTIMPROVEMENT

Continous improvementDeming Circle

ACTION PLAN

CHECK DO

Policydeployment

Auditing,diagnosis,reporting

Possible changesbased on the

diagnosis

Policydevelopment

Quality systems

• A quality system is the organisational structure, responsibilities, procedures, processes and resources for implementing quality management

• It prescribes processes, not product or technical details

• The system is controlled through a documentation hierarchy

Quality systems

• The purpose is to ensure every time a process is performed, the same information, methods, skills and controls are used in a consistent manner

• A quality system specifies how something has to be done, then verify it has been achieved

Quality systems

Procedures

Work instructions Method statements Operating procedures etc.

Proof

Philosophyand policy

Principlesand strategy

Practices

Quality Manual

Control sheets

=

=

=

=

ISO 9000

• BS5750 Quality Management first introduced in Britain in 1979

• IS0 (the International Organization for Standardization) is a worldwide federation of national standards bodies (IS0 member bodies). The work of preparing International Standards is normally carried out through IS0 technical committees.

• adopted by the International Standards Organisation (ISO) in Geneva and was reborn as ISO 9000 ISO 9000 Quality Management and Quality Quality Management and Quality Assurance StandardsAssurance Standards in 1987

• updated in 1994 and 2000

Structure of ISO 9000

ISO 9000:2000

Fundamentals and vocabulary

ISO 9004:2000

Guidelines for performanceimprovements

ISO 9001:2000

Requirements

ISO 9001

• NOT a quality award• A model/framework for

documented quality management

• Compliance with ISO 9001 is certified by various institutes. This is called certification or registration

ISO 9001

• A process standard, NOT a product standard

• i.e. applies to any industry

• The requirements for quality management system are the same for an engineering organisation as for a contractor

• The difference is how each requirement is applied to each distinct business process

ISO 90011. Quality Management2. Resource Management3. Regulatory Research 4. Market Research 5. Product Design 6. Purchasing 7. Production 8. Service Provision 9. Product Protection 10. Customer Needs Assessment 11. Customer Communications 12. Internal Communications 13. Document Control 14. Record Keeping 15. Planning 16. Training 17. Internal Audit 18. Management Review 19. Monitoring and Measuring 20. Nonconformance Management 21. Continual Improvement

• Develop ..

• Document ..

• Implement ..

• Monitor ..

• Improve ..

21 processes that 21 processes that you are required to:you are required to:

TS EN ISO 9001:2000TS EN ISO 9001:2000Kalite Yönetim Sistemleri - ŞartlarKalite Yönetim Sistemleri - Şartlar

Example req’s in ISO 9001

Develop documents to implement the quality Develop documents to implement the quality systemsystem

Define product quality objectives and Define product quality objectives and requirementsrequirements

Develop review and approval mechanisms for Develop review and approval mechanisms for documentsdocuments

Avoid use of obsolete documentAvoid use of obsolete document Set Set measurable objectivesmeasurable objectives for quality for quality

Example req’s in ISO 9001

Management of Management of design and developmentdesign and development Ensure that purchased products meet Ensure that purchased products meet

requirementsrequirements Calibrate instrumentsCalibrate instruments Monitor and measure quality system Monitor and measure quality system

performanceperformance Control non-conforming productsControl non-conforming products

Develop and implement a system to Develop and implement a system to control control communication with customerscommunication with customers

Quality audit

A quality audit is a systematic and independent examination to determine if quality activities and results comply with objectives

1. Internal auditing is a formal procedure undertaken by an impartial and trained individual, for example following a checklist

2. External auditing is done by external organisation

• The audit records should detail inadequacies, by The audit records should detail inadequacies, by issuing non-conformance notices (‘findings’), issuing non-conformance notices (‘findings’), and indicate suitable corrective actioand indicate suitable corrective actionn

Related ISO quality standards

• ISO 10012:2003 Measurement management systems -- Requirements for measurement processes and measuring equipment

• ISO/TR 10013:2001 Guidelines for quality management system documentation

• ISO 10015:1999 Quality management -- Guidelines for training

• ISO/TR 10017:2003 Guidance on statistical techniques for ISO 9001:2000

• ..... full list on http://www.iso.ch

• NOTE: These are process standards, NOT industry standards

Other related standards

• The ISO 14000ISO 14000 family is concerned with environmental management. This means what the organization does to: minimize harmful effects on the environment caused by its activities, and to achieve continual improvement of its environmental performance.

• OHSAS 18000OHSAS 18000 is an international occupational health and safety management system specification

TS XXXXX must be followedTS XXXXX must be followed

Total Quality Management

TQM - Total Quality Management

A management approach that tries to achieve and sustain long-term achieve and sustain long-term organizational successorganizational success by encouraging employee feedback and participation, satisfying customer satisfying customer needs and expectationsneeds and expectations, respecting societal values and beliefs, and obeying governmental statutes and regulations

TQM - Total Quality Management

A senior management-led to obtain the involvement of all employees in the continuous improvement of the continuous improvement of the performance of all activitiesperformance of all activities to meet the needs and satisfaction of the customer whether internal or external

TKY - Toplam Kalite Yönetimi

Müşteri ihtiyaçlarını tatmin etmek Müşteri ihtiyaçlarını tatmin etmek üzere sürekli bir iyileştirme mantığı üzere sürekli bir iyileştirme mantığı içinde bütün çalışanların ilgi ve içinde bütün çalışanların ilgi ve katılımı İle tüm süreçlerde mükemmel katılımı İle tüm süreçlerde mükemmel bir performans elde etmeyi bir performans elde etmeyi amaçlayan bir yönetim anlayışıdıramaçlayan bir yönetim anlayışıdır

TQM concepts

• strong customer focus the continuing effort by everyone in an organisation to

understand, meet, and exceed the needs of its customers regularly translate customer expectations into the design of new

products or services (e.g. Quality Function Deployment)

• continual improvement• top management leadership• accurate measurement • change in organisational culture

promote a desire to do a job (any job) right the first time expect perfection

• empowerment of employees

TQM tools and techniques

• Numeric toolsNumeric tools• Statistics, diagrams

• Nonnumeric toolsNonnumeric tools• Brainstorming• Quality circles• Flowcharting• Benchmarking• Business Process Reengineering (BPR)• Strategic planning/management • Reliability engineering, configuration management,

etc.

Quality awards

• Deming Prize (Japan) 1951• Malcolm Baldrige Award (US) 1988• European Quality Award 1992• Ulusal Kalite Ödülü 1993

The European Quality ModelOn this model we can see the criteria that are used to judge organisations for award of

the European quality award

PEOPLE(90)

POLICY ANDSTRATEGY

(80)

RESOURCES(90)

PEOPLESATISFACTION

(90)

CUSTOMERSATISFACTION

(200)

IMPACT ONSOCIETY

(60)

LEA

DE

RS

HIP

PR

OC

ES

SE

S

BU

SIN

ES

SR

ES

ULT

S

(100) (140) (150)

ENABLERS

(500)

RESULTS

(500)

Quality management in construction

Quality in construction firm

1.1. Establish awarenessEstablish awareness of quality of quality

2.2. Develop quality Develop quality systemsystem

3.3. Introduce the systemIntroduce the system

4.4. System evaluatioSystem evaluationn

Main steps in introducing a QA system:

Quality in construction project

Prepare project quality planPrepare project quality plan Policy and company profile Organisation and responsibilities Procedures Method statements / work instructions Inspection and test plans

Create quality recordsCreate quality records

Typical contractors QC• Visual inspections of site works to ensure compliance Visual inspections of site works to ensure compliance

with drawings and specificationswith drawings and specifications• Approval of materials / certificatesApproval of materials / certificates

• Test of concrete coresTest of concrete cores

• Compressive strength of concrete cubesCompressive strength of concrete cubes

Inspection and test plans

An essential feature of quality assurance is the collection of data that reflect the facts.

• Inspection plans are lists of check-points for specific work items

• The inspection plan is a table, typically listing:• work item e.g ‘concrete slab pour’concrete slab pour’• who is doing the inspection e.g. ‘site engineer’• according to what e.g. ‘specifications’ / ‘drawing XX’• frequency of the inspection e.g. ‘every pour’• criteria for acceptance e.g ± 5mm

Check sheets

• There are mainly two types:• Defective item check sheets – number and

category, location and cause of defect items. Many types used in factories, but not used in not used in constructionconstruction

• Control sheets – inspections to make certain that work has been carried out correctly. List of items that are checked and approved by inspection person (e.g. site engineer)

Check sheets

• In construction projects two types of control sheets are often seen:

1. During construction: Check sheets filled out on site

2. After substantial completion: ‘Snaglists’ or ‘punchlist’. These are lists of minor outstanding items created when facility is handed over to the client. When all snags are rectified, facility can be handed over.

Quality records

• Filled-out check sheetsFilled-out check sheets• Daily diaryDaily diary• Concrete test recordsConcrete test records• Closed-out non-conformance reportsClosed-out non-conformance reports• Rectified snag listRectified snag list• etc.etc.

Evidence documents that shows how well a quality requirement is being met or how well a quality system element is performing. For construction:

Method statements

• The method statement explains how a contractor will do a certain task (~ that proper procedures and best practice will be followed)

• MS may be required for common tasks such as excavation, concreting or bricklaying.

• MS will also be required where extraordinary, risky construction methods will be used. In that case it may contain annexes such as risk assesment, health and safety assesment, etc.

Quality costs

1. Cost of conformance – cost of the company’s quality efforts

• Appraisal cost• Prevention cost

2. Cost of non-conformance• Internal failures• External failures

1

2

Quality costsC

OS

T

QUALITY LEVEL100%Defects

0%Defects

Prevention +appraisal cost

Failure cost

Total cost ofquality

Minimum

Why quality costs ?

• To quantify quality problems• To speak the ‘money language’ to managers• To support a quality improvement program

Prevention

Manage by moreprevention

Appraisal

Less appraisal

Less rework/failures

Rework/failures

Before Improvement After

Conformance

Non-conformance

Cost of non-conformance

• Contractors pay a significant price for poor quality resulting from accidents, waste, rework, inefficiencies, poor subcontractor performance and poor communication - these costs are estimated to be between 5% and 30% of the construction cost of a facility

• In addition there are intangible ‘hidden’ costs such as lost sales due to low customer loyalty

Cost of conformance

• Inspection of direct hire and subcontractor work• Inspection at vendor source of supply• Inspection of shipments• Review of shop drawings • Training costs• Facilitator costs• Salaries of quality staff• Meetings of the steering committee and quality

improvement teams• Administration of the quality management program

Turkish construction issues

yap-satçı

beşkat

gecekondu

seçimkondu

Ethical issues

• Conflict of interest

• Confidentiality and loyalty

• Engineering judgment

• Professional responsibility

• Codes of ethics• Professions (engineers, doctors, etc.)Professions (engineers, doctors, etc.)• Companies and organisations (‘code of Companies and organisations (‘code of

conducts’)conducts’)

Code of ethics

• using their knowledge and skill for enhancement of human welfare

• Being honest and impartial, and serving with fidelity the public, their employers and clients

• striving to increase the competence and prestige of the engineering profession

• Supporting the professional societies of their disciplines

Code of Ethics of Engineers

Accreditation Board for Engineering and Technology (ABET)

“Engineers uphold and advance the integrity,honor and dignity of the engineering profession by:”

That’s it for today !That’s it for today !