Construction Projects

3.1 Proiect Definition

The authors af A Guide to the Project Management Bodqr of Knou,ledge (PMBAK

2(00) define thex'otdprojec/ in term of its distinctive characteristics: 'A project is a temporary e'ndeavor undertaken to create a unique product or service." "Temporary" means that er.ery project has a definite beginning and a
deifinite end. "Unique" mean$ that the product or service is different in some

distinguishing w'ay from all similar pnrducts or services.

It further states that prcrjects are often critical components of the performing organization business strategl,. Examples of projects include

.
.
.
.
.
r
o

Developing a new product or serl'ice

Effecting a change in structure, staffing, or

st1,le of an

organization

Desiping a new transportation r,"ehicle/aircraft

Developing or acquiring a new or modified information s1'stem
Running a campaign for political office
Implementing a new business procedure or process
Constructing a building or facility

The duration of a prc{ect is finite; projects are not ongoing effrxts, and the
project ceases w'hen its declared objectives have been attained. Among ofher
shared characteristics, projects are
1. Performed by peaple'

2. Constrained by limite.d resources

3. Planrrecl, executed, and controlled
P),zdek (1999) definr-d "proiect'r as
1.

A'plan r:r proposal; a scheme

2. An undertaking requirin6; concrete<t effort

121

Qualifu Management in Constructinn Proj ecb

122

The "plan" is defined as

1. A scheme, program or method worked betorehand for the accomplishment of an ob.iective; a plan of attack
2. A propost--d or terrtative projective or course nf action
3. A systematic arran6;emexrt of important parts (p.48)

According to Kerzner (2mD a project can be s:nsidered to be a set of activities and tasks that

Have

specified objective

to be completed within

certain

specifications

Have define'd start and end dates

Have funding limits (if applicable)

Consume human anrl nonhuman resources (i.e., money, people, and

c'quipment)
Are multifunctional {i.e., cut across several lines) (p. 2)

Based on various definitir-rns, the project can be defined as follor,r,s: 'A ptdect is a plan or program perfrrrmed by the people with assigned resources to
achieve an objective within a finite duration."

3.2 Construction Proiects

Construction has a history of several thousand years" The first shelters were
built from stone or mud and the materials collected fnrm the forests to provi<le protection against cold, r,vind, rain, and snr:ur These buildings ltrre
primarily for resiclential purposes, although somr-'mav have had some commercial function.
During the New St'eirre Age, people intrr:duced dried bricks, wall coilstruction, metal working, and irrigation. Gradually people cleveloped the skills
to construct villages and cities, ancl considerable skills in building were
acquired. This can tre seen from the great civilizations in different parts of
the *,orld-s:me 40ffi-5000 5rears ago. During the early period of Creek
settlernent lthich was about 2000 BCE, the buildings \4rere made r:f nr:ud
using timber frames. Later, t6knples and theaters n'ere built from rnarhle.
Some 15i[-2000 years ago RodG became the leading center of lr,orld culture,
which extended to constructiorr.
Marcus Vitruvius Pollo, the tst century military and civil engineer, penned
in Rome the wndd's first mafor treatise on architecture and construction. It

C onstrta:tiott P r o.i ects

123

dealt w'ith building rnaterials, the sgles and design af huilding types, the
constructi*n procesE, building physics, astrononrli and building machines.
During tlre Middle Ages (476*1492), impnrvements eiccurred in agriculture and artisanal productivity and exploration, and as a coflsequencg the
broadening of {ommerce took place and in the late Middle Ages, building
construction becanre a major industrl'. Craftsmen were given training and
education in order to develop skills and to raise their status. At this time
guilds came up to icientify true craftsnren and set standards for quality.
The 15th cenfury brought a "renaissance" Gr rent'wal in architecture, building, and science. Significant changes occurred durrng the 17th century ancl
thereaftev due to the lncreasing transformation of construction and urban
habitat.
TIre scientific revolution of the 17th and 18th centuries gave birth to the
great Industrial Revolution of the 18th centurv. After some dela1,', crrnstructicn follorved these clevelopments in the 19th century.
The first half of the 2tlth century wibnessed the construction industry
becom i n g an important sector througho ut the lvo rld. ernployi ng rnany rt'orkers. During this pericrd skyscrapers, long-span dams, shells, and bridges werre
der.'eloped to satisfy nelv rt-'quirements and rnarked the continuing progress
of construction techniques. The provision of services such as heating, air
conditioning, electrical lighting, w,ater mains, and elevators in buildings
became common. The 20th century has seen the transforrnatiolr of the construction and building industry into a major er:onornic sector. Durirrg the
second half of the 20th century, the construction industry began to indus-

trialize, irrtroducing mechanization, prefabrication, and system huilding.

The design of building services systems changed considerably in the last
20 years of the 20th century. It became the resp*nsibilit]' of designers to
folhrw health, safet-v, and environmental regulations while designing anv
building.
Building and commercial-traditional A&E ry+pe--construction projects
acccrunt for an estimated 25o/" of the annual ccnstruction volume. Building
construction is a labor-intensive endeavor. Every construction project tras
some elernents that are unique. No two construction or R&D projects are
alike. Thr:ugh it is clear that many builcling projects are more routine than
research and devek:pment prcrjects, some degree of customization is a char'acteristic of the projects.

Construction projects involve a crclss section o{ many different parti{ipants. T"hese both influence and depend on each other in addition to the
'bther players" involved in the construction process. Figure 3.1 illustrates the
concept of the kaditional construction project organization.
Traditional corrstruction projects invoh,e three main groups. These are
1.

Ow'ners-A per$on or an orlianization that initiates and sanctions a

prcrject. He/she outlines the neer{s of the facility and is resporrsible
for arranging the financial resources for creation of the facility.

Quality Managemcnt in Construction Prajects

124

Prr:je-ct Manager

. In-horxe staff

'

Speciality consultants

fJerlga Professional
f)esign I'earn Leadr:r
. Design disciplines
. Desrgn subconsultants
{ assuiate consu.itants)

Construction Mana ger rrr

Superintende.nt

. Constructioa subco otractors

. Suppliers/vendors

. Fabricators

. Construction trade r rorkers

Iines of autlrcritv (de6ned by contract)
Lines of commulication
FIGURE 3.1

Traditional construction project organization (From -American Society of Cir.il Engineerg

Qwliiy itr the Cunstructed Proieet,?tXl0. Reprir*ed with perndssion fromASCE)

2. Designers (A&E)---This group consists of one or rnore architects or

en{ineers and consultants. The'y are the o}r,ner's appointd entities accountable for com'erting the owner's conception and need
into a specific facility n'ith detailed directions through draw,ings
and specilications adhering to the econc,mic objectives. They are
responsible for the design of the proiect and in certain cases its

supervision.
3.

Contrachrs-A constructiofl firm engaged by the owner to complete

the specific facilit-v hy providing the necessarv staff, work force,
materials, equipmerrt, tools, and other accessories to the satisfaction
of the owner/end user in compliance with the contract documents.
The contractor is responsible for implementing the pmject activities
and for achievirrg the r:wner's objectives.

Construction projects are executed based on a predete.rnrined set of goals

and objectivt-,$. With traditional construction projerts, the owner heads the
tearry designating a proiect manager. The project manager is a personlrnember of the ownels staff or independently hired personffirrn n'ith overall or
principal responsibility for the managemL'nt of the pmject as a whole.
Oberlender (2in0) states that the u,orking envinrnment and culture of a
construction project is unique comparerl to most working conclitittns. A typi
cal construction project consists of a grr:up of people, normally from several
organizations, that are hire.d ancl assigned to a project to huild the facility.

Construction Projects

125

Due to the relativelv short life of a construction project these people fiulv
vielv the construction project as acconrplishing short-term tasks. Ho*,'ever,
the project manager of the construction team must instill in the team the
concept that builcling a long-term relationship is more important in career
advancement than trying to accomplish short-term tasks.
In certain cates owners engage a professional firm, callt-d a ctrnstruction
marlair, trairred in the management of construction processes, to assist in
dereloping bid documents, and overseeing and coordinating the project for
the ow'ner. The basic construction management concept is that the ot{'nt-'r
assigns a contract to a firm that is knowledgeable and capable of coorctinating all the aspects of the prcrject tcr meet the intende'd use of &e project
by the orlrner. Ln the'constmction management fype of construction praiects, the consultants (architect/engineer) prepare complete design draw'ings
and contract documents, then the project is put for competitive bid and the
contract is awarded to the competitive bidder (contractor). Next, the owner
hires a third-party (construction manager) to o'uersee and coordinate the
construction.
The authors of "Quality in the Constructed Praject" by the Arterican
Society of Civil Engineers (ASCE; 2000) have categorized two types of construction managers: agency ccnstruction managers (ACM) and consfruction
numagers-at-risk {CM-at.risk}. An ACM functions u,holly within the policies,
procedures, and practices of fhe olvner's organization. A CM-at-risk typically contracts with the crvner in tu.,o stages. During the first stage, CM-atrisks act as consultants or even design professianals, and whe'n the design
is cornpleted they berome involved in the completion r:f the construction
wcrrk.

There are numerous types of construction projects:

Process Type Proiects

Liqtrid chemical plants

Liquid/solid plants
Solid process plants
Petrochemical plants
Petroleum refineries
Nonprocess Type Projects
P<rrver

plants

Manufacturing plants
Support facilities
fuIiscellaneaus (R&D) prajects

Civil cr:nstruction proiects

Commercial /A&E projects

Quality M*ncgewerut in Construction Projects

126

Civil construction prr:jects and comtnercial/A&E proiects can further be

categr:rized into {our somer,r'hat arbitrary but p;enerally accepted mair:r types
of ccmstruction. These are
1. Residential construction

2. Building construction {institutional and ccmmercial)

3. Industrial constmction
4. Hearly engineering construction
Residentinl constnrction: Residcntial construction includcs single-fami ly
homes, multiunit tolvn hou.ses, gardert, apartments, high-rise apartments,
and villas.
Buildiag constructiott:Bttildingconstructionincludes structures rangingfrom
small retail stores to urban redevelopment complexes, from grade schools to
nelt, universities, hr:spitals, commercial office tott'ers, theaters, government
buildings, re'creation ce'nters, warehouses, and neight orhood centers.
Infuxtrial construction: Industrial construciion includes petroleum refineries, petroleum plants, pow'er plants, heavy manufacturing plants, and other
facilities essential to our utilities and basic industries.
Heazry e*gineering constntction: Heary e'ngineering constntcti$n includes
dams and tunnels, bridges, railway's, airports, highw'avs and urban rapid
transit system, ports and harbors, water treatment and distribution, senage
and strrrm water collection, treatment and disposal systern, porlrer lines, anct

communication netrsork.
Tahle 3.1 show,s a Lrrief classification of projects/characteristics.

3.3 Construction and Manufacturing

Construction has unique problems compared to rnanufacturinl;. A fe.w of
these are listed as folkxys:
The constructir:n is a custom rather tharr a routine, repetitive business and differs from manutbcturing.

Quality in marrufacturing passes through series of procc.sses. The output

is mr:nitcred by inspeetion and testing atvarious stages of production.

Corrstructien is different from both that of mass production and

batch (lot) production manufacturing.
In conskuction prolects, the sce.nario is not the same as that of manufacturing. If anything goes wront the nonconforming wcrrk is very
dif{icult to roctify and remedial action is sometimes not possihle.
Quality costs piay an impr:rtant role in construction projects.

127

ConstruttionProjects

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128

Quality Management in Construction Projects

In constructiory an activity may be repeated at various stages, but it

is done only one time for a specific rtork" Therefrrrg it has to tre right
from the onset.
In manufacturing, the huyer dnes not enter the scene until the product comes into beinl;, r,r,hereas in construction the buy'er is involved
from beginning to end. Even during the constructinn phase, it is
likely that certain m*difications may take place.
The owner is deeply inr"olved in the constructiein Process, t'hile the
purchaser of manufactured goods is not. Buyers of the usual mantlfactured products seldom have access to the plant r,r,here thev are
made, nor do they deal direttly with factory m;rnagers.
Most projects or their individual work phases are of relatively
short duration. One consequence is that management teams and
possibl-v the work force must be assembled quickly and cannot
be shaken out or restructured before the project or r,vork phase is
completed.
To a great exten! each project has to be designed and built to serve
a specific need and thereftrre it is necessary to lnake certain modifications in the system process to fit the particular conditions of each
construction pmiect and its specilic protrlems.
'Ihe location of construction projects v-aries l,l'idely. In a mantrfacturing plant a given operatiorr is assigned to and carried out in one
place. irr contrast, specialized cernstmction crevlti progress from
location to location.
Qperations are comnmnly conductecl out of doors and are subject to
all the interruptions and variation in conditions and thc other difficulties that rain, snow, heat, and cold can introduce.
The final product is usually of unique design and differs from
workstation to workstation so that no fixed arranS;ement c# equipment {,r aids such as jigs and fixtures are possible as is in the case
of manufacturing.
The construction is a preliminary step leading to a completed faciiit,v; the layout and arran5;ements fiury make access for construction
difficult and permanent provisions for safetv impossibie.
The construction often needs highly skilled craftsmen rather than
unskilled w,trrkers; irrdividual {rr{rs, whether uni(ln or nonrrniory
usually do spr-'cialized operations.
Construction involves installation and integration of various materials, equipment, systems, or other components to complete tirc facility"

Construction focuses mainly on or,'erall performance of the projeut

or facility in which a product(s) or a system(s) is a part and assem-

bled/installed to achieve thr,' objecti ves.

C onstruttiott

r
r

Pr oj ects

129

Construction projerts work against defined scrlpe, schedtrles, and

budget to achiev'e the specified result.
Performance of construction proiects can be evaluated only after it is
completed ancl put into uselrrperation.

3.4 Quality Cost

3.4.1 lntroduction
Quality has an inrpact on the costs of products and services. The cost of poor
qualitv is the annual monetary loss of products and processes that are not
achieving their quality objective.
,{ccording to Gryna (2C01) the conceptof quality costs emerged during the
1950s, and different pmple assigned different meaning to the term. Some
pe,;ple equated quality costs with the ctxts of attainirrg qualitl; some people
equated the term n ith the extra costs incurred because of poor qualit.v (p. 19).
He further states that
The cost of poor quality is the arrnual monetary loss of products and
procsises that are not achieving their quality obiectilrs. The main components of the cost of b'n" quality are
1. Cost of nr:nconfnrmities.
2. Cost of inefficient processes.
3. Cost of loss opportunities of sales revenue. (p. 20)

Juran and Geidfrey (L999) also state that "the term quality costs has di{ferent
meaninl;s to clifferent people. Snme equate quality costs with the cost of poor
quality (mainly the costs of finding and cr:rrecting defective work) others
equate the term lvith the costs to attain quality; still r.rthers use the term t{)
mean the costs of mnning the quality department" (p. 8.2).

3.4.2 Categories of Costs

Costs of poor quality are the costs associated with pror.iding; poor-quality
products or services. These are costs that rtould not be incurred if things
were d,:ne right from the start tirne and at every stage thr-.reafter in nrder to
achieve the quality objectire. There are four categories of cr:sts:
1. Intemal failure costs. (The costs associated

with defects found before

the custcrmer receives the product or service. It also consists of cost
of failure to meet customer satisfaction and needs and cost of inefficient prccesses.)

Qaality Managenent in Cm strurtian Projects

130

2. External failure costs. (The costs associated rvith defects found after

the customer receives the product or service. Also includes lost

opportunity {or sales revenueJ
3. Appraisal costs. (The costs incurred to determine the degree of conformance tr: quality requirements)
4. Prevention costs. (Tlrc costs incuned to keep failure and appraisal
costs ttr minimum).
'Ihomas P-vzdek (1999) has detailed these costs as follon's:
1.

Prevention costs: Costs incurred to prevent the lrccurrence of

nonconformances in the future. Examples of prevention costs
include

Qualityplanning
Process ccrntrol planning
Design revie'w

Quality training
Gage design
2. Appraisal costs: Costs incurted in measuring and controlling concur-

rent production to assure conformance to requirements. Examples

of appraisal costs are
Receiving inspe'ction

Laboratory acceptance testing

ln-process inspection
Outside endorsements (e.g" UL approval)

Calibration
Inspectir:n and test equipment
Field testing
3. Intemal failure costs: Costs generatect before a p:oduct is shipped
as a result of nonconformance to equipment. Exarnples of internal
failure costs include
Scrap

Reu,ork
Process tro ubleshootin g

Vendor-causecl scrap or

nork

Material revie*' board activity

Construdian Prajects

131

Reinspection or retest

Dou'ngrading
4. External failure cr:sts: Costs generated aftr:r a product is shipped as a
result of nonconformance to requirement. Examples of external failrrre costs include

Processing of customer complaints

Service

Unplanned field repair

Recalls
Processirrg of returned matcrials

Warranty (p. UB)

Ttrese cost categories allow the use of quality cost data for a variety of
purposes. Quality costs can be used for measurement of progress, for analyzirrg the problem, c'r {or budgeting. By analyzing the relative size of the cost cate-gories, the company can determine if its resources are propedv allocated.
CiI product no. EM-4A (1994) states that "the cost of quality is the pe'naltv
paid for an imperfect world. lt is the costs of all the extra wrrrk we do be.1,6n6
merely doing a task correctly the first time to meet the requirements and
expectatir:ns. The simple formula for clc'Jining the cost of qualitv is
Cost of Quality

Cost of Prevention and Appraisal + Cost of Deviatir:n

Correction" (p.13).

It has further elaborated the components of costs of quality as flllcws:

All measures taken to assure that requirements

are met, such as quality control system$, inspertiory w'ork checking, design review, constructability or maintainability revieul shop
inspection, and auditirrg.

Pret:e*tian nnd appraisal:

Deuiation correctiott: Work done more than once because it did not meet

requirements the first time.

3.4.3 Reasons for Poor Quality

According to the surveycarried outbyCII, the primary reasons for poor quality are mainly due tei poor ilr.rnagement and are illustrated in Figure 3.2.
Per lreland (i991, cost of guality is the total price of all efforts to achier.e
prodtrct or seryice quality. This includes all work to build a product or service that conforms to the requirements as r+.ell as rtork resulting from nr:nconformance to the requirernents. The general areas of costs for a quality
systt-,rn are illustrated in Table 3.2.

Quality Management in Construction Projects

132

,rr
C LJ
A"

.E
F

20

5tb
D

c"

Scope
Poor Lack of Tiaining East Irack
Deft Comrnunicatior:^s

Poor Management Poor

FICURE 3,2
Prima::y reascms for prxrr qrrality (139 responses). (From CII, Sowce79. Reprinted

sion of

withpermis-

CII University of Texas)

TABLE 3.2

Conformance !'ersus Nonconfornrance Costs

Cost of Nonconfcrmance

Cost of Confsn'nance

.
r

Planning
Training and int{octrination

o Fieldtesting

.
.
r

Product design validation

Process valiclation

Testande.vaiuation
Qnalitv au.dits
Mairrtenance and
ca]jbratiorr

C\ther

.
.
.

Scrap

Rework
Expedition

" Additional

material tx inventory

. Walranty repaim or service

. Complaint handliag
. Liabilityiudgments
. Productrecalls
.

[)roductive correctivc actiorrs

Sourre ireiand, L.R. (1991). Qwlily Mmngane* .fur Projet:ts r P*gm*s.

Reprinted with pennission from Plv{I.

Carcstru*iott Projects

133

Figure 3.3 shows the expected results nf the total quality management
system on qualit_v cost. It shows that try increasing prevention costs, that is,
ctoing things that will prevent problems, reduces the cost of appraisal and
failure and gain a net cost trene,fit to the organizatiein. CII has made the folIon ing recommendations to reduce the rervork:
I. Reduce the number of design changes
2. Implernent a quality management program
a
J. Adopt the standarcl set of quality relatt'd terminology
+. Devek:p and implement slstem to establish a database
i Implement a QPMS
A

Chung (1999) has quoted (Rotrert, 1991) that 'Quality does not cost-it
pays" (p. 9). Figure 3.4 summarizes the qualitl-related costs expressed as
a percentage r:f total construction costs. He further states that through the
irrrplementation of a proactive quality system that costs about 1% of the proj'
e.ct value (the prevention cost), the expenditure as a result of repair, and so
forth (failure cost) drops frr:m 10% tcr 2?6 representing a saving af 7",,o. These
categories of costs may represent an increase cf cost in one area and a reduction of cost in another.

FICURE 3,3
Tc'rtaiquaiit;,*cost. (From H. Kerzner, PrajectlvIwtagemen|200l.. Rtprinted withpermissionfrom

]ohnWiley & Sons.)

Quality Managemcnt in Canstruction Projects

134

Cost Benefit 7%

Pn{ect without
quality system

I)rnject with a
quality rystern

FICURE 3.4

lmplementation of quality managem.ent. (Frour H.W. Chung, l-lni*sla*ding (fuality: Assurate

in Cnntnutict41999. Reprinted rvith permission from Cengage Learring Services Urnited.)

3.4.4 Quality Cost in Construction

Quality of construction is defined as
1. Scope of

work

2. Time
3. Budget
Cost of quality refers to the total cost incurred during the entire life rycle of
con$truction project in preventing nonconformance to or,rrner requirements
(defined scope). There are certain hidden co$ts that may not directly affect
the overall cost of the proiect ho$'ever, it uray co$t the consultant/de.si5prcr to
complete the design w'ithin the stipulated schedule to meet olr/ner requireilrents and conformance to all the regulatory codeslstafldards, and for the
contractor to construct the project r,r'ithin the stipulated schedule meeting
all the contract requirements. Rejection/nonapproval of executed/installed
lmrks by the supervisor due to norrc.ompliance w-ith specifications r+,ill cause
the contractor loss in terms of

.
e
o

Material
Manpower
Time

The contractor shall have to rework or rectify the r,t'crrk, which will need
additional resources and ltill need extra time to do the r*,ork as specified.

C on st r uct io

tt L' r oj e cts

135

This mav disturb the contractor's w'crrk schedule and affect execution r:{
other activities. The contractcrr has to emphasize l}'r- "Zeta Defect" policy,
particularly for concrete rt'orks. To avoid rejection of works, the contractor
has to take the follorving rneasures:
1. Execution of w'orks per apprclved shr:p drawings using approved

material
2. Follow'ing apprtved method of statement or manufacturer's re"commended n'rethad of installation
3" Conduct corttinuorrs inspection during constructionlinstallatian
prOcess

4. Employ properly trained r.r,'orkforce

5. Iv{aintain good *,orkmanship
6. Identify and correct deficiencies before submitting the checklist for
inspection and approval of r*'ork
7. Coordinate requirements of other trades, for example, if any open*
ing is required in the concrete beam for crossing of services pipe

Timely completion of a project is one of the obiectives to be achieved. Tt:

avoid delay proper planning; atd scheduiilrg of conskuction activities are
nece$sary. Since construction pmjects have the invoh'ement of many par'
ticipants, it is essential that the requitements of all the participants are fully
coordinated. This will ensure execution of activities as planned resulting in
timel-v completion of the prcrject.
Normally, the construction budget is fixed at the inception of the praiert,
therefore it is necessary tr: avoid variations during the construction process
as it may take time to get approval of an additional budget resulting in time
extension to the project. Quality costs related to construction projects can be
summari zed as follo*'s:

Internal Failure Costs

r Rework
r Rectification
. Rejection of checklist
. Corrective actiorr
External Failure Costs
r Breakdown of installed system

'
.
'

Repairs

Maintenance

Warranty

Quality Management in

136

Con str

uction Proj ects

Appraisal Costs
. Design reviewlpreparation nf shop drau'ings
o Preparation of compositertoordination drawings
c On-site material inspertion/test
. Off-site material inspe,ction/test
. Pre-checklistinspection
Prevention Costs

r
,
.
r
r

Preventive acticn

,Irainiry,
Work procedures
Method statement
Calibration of instruments/equipment

Quality costs during the design phases are different from those of the construction phase. Costs of quality during design phases are main\' to en$ure
development of proiert design and docume.nts to ensure confr:rmance to
the client's requirements/ToR (Terms of Reference)/Matrix of Or,r'ner's
Requirr-.ments.Qualit1, costs related to design development/c.antract documents of construction pruiects can be summarized as fr:llon's:
Internal Failure Costs

.
.
r

Redesign /redraw to meet requirements of other trades

fully coordinated design

Re.write specifications/documents to ilreet requirements of all
Redesi$n /redraw to meet

r:ther trades
External Failure Costs

.
.

Incorporate design re!,ie!r, comments by client/proiect manager

r
.

client/project manager
Incorporate comments by regulatcry authority(ies)
Resolve RFl (Request for Information) during construction

Incorporate specifications/documents

reviel

comments by

Appraisal Costs

r
.
.

Revie'rv of speci{ications

ftgviE'1v for regulatory requirernents, codes

Revierq of design drawings

Revielr. of contract documents to ensure meeting owner's needs,

qual itv standardt constructabi lity, and f unctiona l itl'

Canstructinn Projects

137

Prevention Costs

.
.
r
r
.

Conduct technical meetings for proper coorrlination

Folli:w'qualitysystem
Meeting submission schedule
Training of project team members
Update of software used for design

3.4.5 Quality Performance Management System

Quality performance manag;ement system (QPMS) is ;r product of the
Constrtrction Indusky lnstitute {CII). QPMS is one of the tools arrailable for a
TQM proiect and is a gotxl implementation tool for a project to utilize in a TQM
envircnment. It is a management tool developed by CII to grve managernent
the information necessary to iderrtify qualrty improvement r:pportunities.
QPlv{S fc'cuses on reducing the ccrst of quality in four r,r,avs:

It provides a pr$cess that facilitates aw?reness of individual and

group qualrty perforrnance (how r.vell we do things right) by measuring these costs in dallars.
2. It arms managers u'ith information on qualitv costs and activities
that enable proactive decisions affecting quality outcome.
3. It provides a database for estimatiry; quality performance on fuhrre
1.

projects"

4. If anct when w'idely accepted, the data should provide benchmarking inforr:nation throughout the industry (Benchmarking is a point
of reference by which the performance is jud6;ed or measured.,l
According to CIl, the QPMS has been developed as a management tool to
meet the follorving criteria. It rn-ust
1. Be capalrle of tracking qualitv-related costs are inrtrlv"ed in the design

and ctmstruction of engine.ered projects and answer the fbllor,r,ing

four questionsr
l,!'hat quality manage.ment activities and deviation costs are involver3?
When were the quality fimnagement activities and deviation costs
incurred?
Wh5: did the deviatir:n$ occur (i.e" their root causes)?
How did the rework relate to the quality marngement?
2. Provide valuable cost-of-quality informatian to establish baseiine
and identify oppnrtunities for irrrproyement, r.vithout providing
either too much or too little cletail

Quality Management in Cansh'urtion Projects

138

3. Be adaptable to r,arious types and aspects of design and construction projects

4.

Be easily

implementable by ovv,ners, desiprers, and contractrrrs

5. Be cost effective
6. Be cornpatible ',,r,ith existing cost systefir$ used by management

it can be summarized that rt'ith irnplementation of quality management system, costs of quality is reduced and ultimately result in savings.
Thus,

3.5 Systems Engineering

3.5.1 lntr*duction
Systems are pervasile throughotrt the universe in which w'e live. This r,r,orld can
be divided into the natural world and the human:n'rade w'orld. lyste.ms appeared

first in rntural forms ancl subsequently rtith the appearance of human beings,

Systems u,ere created hasecl on c.omp{rnnt$, attributes, and relationships.

Systems engineering and analysis, w'hen coupled with ne'u,, emerging technologies, rer,-eal unexpected opportunities fcrrbringingnew in"tprr:ved systems
and products into being that rvill be more competitive in the world economy.

Product crxnpetitiveness is desire'd by both comnrercial and public-sector

producers worldwide to meet cc,flsumer expectations. These technologies
and processes can be applied to ct'mstruction prcjects. The systerns engineerirrg approach to construction pnrjects help us understand the entire prr:cess
of proje'ct manage.mext in order to manage its activities at different leveils of
r.arious phases to achieve economical and competitive results. The cost effective'ness of the resulting technical activities can be enhanced bv giving more
attention to lvhat they are to do, before addressing nhat they are composed
of. To ensure economic competitiveness regarding the product, engineering
mtrst become more closely associated rt ith economics and economic facilities.
This is best acconrplished through the life-cycle approach to enginee'rin1;.
Experience in recent decades indicates that properly co*rdinated and
functioning human-made rystems will result in a minimum of undesirable
side effects thraugh the application of this integrated, life-cycle oriented
"systerns" approach" The cnnsequences of not applying systems engineering
in the design and del"elopment andlor reengineering ot slste'ms have been

disruptive and costly.

The systems approach is a technique, which represents a broatl-ba*"ed
svstematic approach to problems that may be interdisciplinary. It is particularly useful lvhen problems are affectld b,v many factors, and it entails
the creation of a problem model that corresponds as closel-v as possible to

C onst r uct

iott P r oj e cts

139

realitir. The s!.stems approach stresses the need for the enp;ineer to lcok for
all the relevant factors, intluences, and components of the environrrrent that
surround the problem. Ttre systems approach crrrresponds to a comprehensive attack on a problem and to arr interest in, and cornmitment to, formulating a problem in the w'iclest and fullest mannar that can he professionally
handied.

3.5.2 System Definition

lllrere are rrnny definitions of system. One dictionary definition calls it "a
group or comtrination of interrelated, independent or interacting elements
forming a collectir,'e entity." A system is an assembly of components cr elernents having a functional relationship to achieve a common objective for
useful purpose" -A system is compr.rsed of components, attributes, and relationships. These are described as follow's:
L. Components

are the r-rperating parts of the svstem consisting of

inpuf

processr and output. Each system component may assunre a

rrariety of rralues to descrihe a system state, as set by sorne ctntrol
action and one or m{rre restrictions.

2. Attributes are the properties or discernible manifestations of the

componerrts of a sptem. These attributes characterize the system.
3. Relatiorships are the links betr,r,r'en components and attributes.
The properties and behavicr of each component of the set have an effect
on the properties and behavior of the set as a whr:le and depend cn the
pnrperties and be,havior of at Ieast one crther component on the list. The
components of tht: system cannot he divided into independent suhsets. A
system is rnore tharr the sum o{ its components and parts. Not er.ery set of
items, facts, methods, or procedures is a system. To qualify the system, it
shr:uld have a functional r*lationship, interaction betr,r,een many compL)nents and useful purpose. The purposeful action performed by a system
is its function. A basic he.havioral concept of a svstem is that it is a der.ics,
*.,hich accepts {,)ne or more inputs and generates from them one or more
r:utputs. This simple behavioral approach tc. systems is gene'rally known
as the Black Br:x and is represen{ed schematically in Figure 3.5. The Black
Box system phenomenon establishes the functional relationship betu.een
system inputs and outputs.
Every system is madl' up of cornponents and components that can be broken down into similar components. If tlvo hierarchical levels are involr.,ed irr a
gir,'en system, the k:wer is conveniently called a sutrsystem. The designation of
s1,ste'm,

subsystem, and compc,nents are relatirre becatrse tlre q,'stem at one level

in the hierarch-v- is the cnmponent at an*ther leve,I. Everything that remains

nutside the boundaries of the system is considered to be environrnental"

Quality Management in Curstruction Projects

140

FICURE 3.5
Black Box.

Material, energ_, and/or information that pass through the troundaries are
callt-rC "inputs" to tlre system. In rer,'erse, material, energy, and,/or infr:rmation
that pass from the system to the environment is called output.
Accardingly, a system is an assemblv of compcnents or elements having a
functional relationship k.r achieve a common objective for a useful purpose.

3.5.3 Systems Engineering

INCOSE {International Council on Systerns Engineering) defines systems
engineering as follow's:
An interriisciplinary approach and means to enable the reaiization of
successful system. It focuses on defining cu$torner needs and requir:ed
functionaiit5r early in the developrn<nt cycle, documenting lequirementg
the prcrceedin.g with design synthesis and system validaticln while considering ther cornplete problem:

.
.
r
o

eperations
Test

Costand schedule
Disposai
Performance

IVfanufacturing
Training and support

Systems Enginerering inEgrates all the disciples and specialty groupli

into a team elTort forming a structural deveiopmc*rt process that proceeds from concept to productit:n to operation. Systerns Engineering
conside.rs both the business and the technical needs of all customerc
with tire goal of providing a p:oduct that meets the user needs.

The system life cycle process is illustrated in Figure 3.6 and is fundamental
to the application of system engineering.
The ll{e c1'cle begins r,r.ith the identification of need and extends through
conceptual and preliminary desig+ detail desigry and de\.elilprnent, produc*
tion and/or con$huction, product use, phase-out, and disprrsal. Thr,. prcgram
phases are classified as acquisition and utilization to recoppnize procedure
and customer activities. This classificatinn represents a generic approach.
Sometinres the acquiring process may involve both the customer and the
producer (rrr corrtrackrr), whereas acquiring may include a combination o{
contractor and consumer (or ultirnate user) activities.

ConstrudinnProjwts

L41

t)
a)

FIGURE 3.6
The product life cycle. (From B.S. Blanchar4 W.i. Fatrrycky, and I. lVolter" Sttsler,r,.s ltryilwcr.+tg
and Arulllsis, 1ii98. Reprinted r.trith permission .from Pearson Education, Inc)

FICURE 3.7

Applicatir:n areas of sl,stems engineeriag. (Frcm B.5. Blanchard 1t.|. F'abry'cky, and ]. ltolter,
Sys'"arc Etgineerbig o?ui An$htsis,199E Reprinted with permission frorn Pearsr-x Educatiol1 Inc)

ln general, engineering has fccused mainly on product performanct: as

the rnain objective rather fhan on clevelopment of overall system of which
the product is a part. Application of a svstems engineering process leads tcr
reduction in the cost of design development, producfion/constructiory and
operatio& and hence results in reduction in life cycle cost of the produc!
thus, the product becr:mes more competitive and economical. Systerns engineering pnrvides the basis far a structural and logical approach. The need for
sy$tems engineering increases with the size of projects. Application areas af
systems engineering are illustrated in Figure 3.7.

3.6 Construction Project Life Cycle

Most construction proiects are cu$tom-orientecl, having a specific need and
a customized design. It is alltays the ownert desire that his prr:ject should

't42

Quality Mana geruent in Constructian Projects

be unique and better. Further it is the owner's goal and ohjective that the
facility is cornpleted cn tinre. Expected time schedule is important from both
financial and acquisition of the facility liy the ow'ner/user.
The system life cycle is fundamental to the application of systems engineering. Detailed presentations of the elaborate technological activities

and interaction that rnust be integrated over the system life cy"cle are
shorvn in Figure 3.8. This figure summarizes major technical functions
perforrned during the acquisition and utilization process r:f the system
life cy'cle.
A slntems engineering approach to construction projects helps to understand the entire process of project management and to manaF and ccntrol
its activities at different ler,'els r:f rarious phases to ensure timely completion
of the project lvith economical use of resources to make the ccnstrtrction
proiect mr:st qualitatir,q competitir.'q and ecr:nourical.
Systems engine.ering starts from the complexiry- of the large-scale problem
as a whole and moves to*'ard the structural analysis and partitioning process until the qrrestions of interest are answ'ered. This process of dtrornposition is called a work breakdown structure (WBS). The WBS is a hierarchical
representation of s1'stem levels. Being a family treq the IVBS consists of a
numher of ler,'els, starting rvith the cornplete system at lerel 1 at the top and
progressing dow'nrrard through as many levels as necessary tr: nbtain elements that can be conl'eniently managed.
Benefits of systems engineering applicatieins are

a
a

Reduction in the cost of s_ystem design and development, producticn/construction, s1'stem operation and support, system retirement
and material disposal
Reduction in system acquisitir:n time
Ir{ore rrisihilrty and reduction in the risks associated n ith the design
decision-niaking process

Shtub, Bard, and Cloberson (1994) havr-, clivided the project into five phases
as illtrstrated in Figure 3.9.
Representatiye construction project }ife cycle, per &{orris has four sta5;ers
(phases) frlr constructien project and is illustrated in Figure 3.10.
Though it is difficult tr: genr-.ralize project life cycle to system life cycle,
ccnsidering that flrere are innrrmerable processes that make up the consfruction process, the technr-rlogies and processes as applied to systerns engineering can also be applied kr construction projects. The number of phases shall
depend on the complexity of the proiect. Duration of each phase may vary
from prc'ject to project Based on the concept of project life rycle shonrr in
Figure 3.8, Figure 3.9, ancl Figure 3.10, it is possible to er;olve a comprehensive

"143

Constrwtion Projects

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Quality Management in Cuzstrwtian Projects

144

It
F

Phase 1

Phase 2

Phase 3

Concr:ptual

A<lrranced

Detailed

design

rlevelopment

design

. Goals
. Scope

. Plan
. Budget

- Baseline

. Sr:hedule

.I{cquirements . Bid proposal

. F'easibility
. Desirabiliqv

. Managernent

cnmrnilment

. Responsibility

Phase

Production

. Manage

. &leasure
. fbam
. Control
.Organizational . Update and

definiton
strlrctuie

. Detailed pian
. Kickoff

replan
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solving

Phase 5

Terrnination

- Clcseout
. -Document
. Srggest

improvement
. f'ransit
. lteassign
. Dis*rhe team

HCURE 3.S

Project life cycle. (From A. Shtlub, J.F. Bar4 and S. Clobersan" Projecl Matagemeni,1994.
I{eprinted with perrnission frorn Pearson bJucafion, Inc.,1

life cycle firr constructitrn projects, which may have f ve of the most common
phases.'l'hese are as follorvs:
1. Conceptual design

2. Preliminary design
3- Detailed design

4. Construction
5. Testing, commissioning, and handover
Each phase can further be subdivided into the WBS principle to reach a
level of complexity'h,here each element/activity can be treated as a single
unit that can be conveniently managed. WBS represents a s,.stematic and
logical breakdon n of the proiect phase into its components (activities). It is
constructed by dividing the project into major elements with each of these
bcing dirridcd into subclements. This is done until a breakdown is donc in
terms of manageable units of $'ork for nhich responsibility can be defined.
WBS involves envisioning the prcrject as a hierarchy of goal, objettil'es, actirities, subactivities, and rvork packages. The hierarchical decomposition of
activities continue until the entire proiect is displayed as a network of separately identified and nonoverlapping activities. Each activity will be single
purposed/ r:f a specific time duratiory and manageable; its tirne and cost

Cowlruction Proiects

145

Ingtaliation

Subsf:ntially

full
Olxrations

Complete

Nta

lor

Cont racts

o
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I.,

>t/

Project
trU
Decision

StageI I

Stage

ll

I'easibility Planning

Stage

lll

Production

and.Design
. Mmutacttring
t'roiect fofmulaibn . Base duign
. R$sibiliry studiffi . Ccst & vhedule . Delivery
. Civil works
, *tategi d6t+n
. Contrnsl terffi
md apprcml
and condirions . installrrtiotr
. Detailed plrnning . Tesing

'

Stage

IV

Tumover
and Starlup
.

iinal tsting
.luaictcnuce

ftcuRE 3.10
Reprmenlative construction. p'roiect life cycle. (From ltr:iect }r{anagement lnstitute, I}BO}$
Gui.\e, 70M. Reprinted with permission fi'om PMI.)

estimates easily derir,'ed, deliverables clearly under$tood, and responsibility

for its completion clearly assigned. The r+'ork breakdon n structure helps in:

r
r
r

Effective ptanning by dividing the lvork into manageable elements,

which can be planned, budgeted, and controlled
Assignnrent of responsibility for rt ork elements to project personnel
and outside agencies
Development of control ancl information system

tr{BS facilitates the planning, budgeting, scheduling and control activities

ftrr the project manager and its team. By application of WBS phenomenon, the
construction phases are further divided intr: various activities. Division of
these plrases r,r,ill improve the control and planning of the con$tauction prolect
at e!'ery stage belbre a ne.r*, phase starts. The components/mtivities of construction project lifecycle phases divided r:n WBS principle are listed as follou.,-s;
1. Conceptual Design

Identification of need
Feasibility

QoaW Managernent i* Canstruction Pro j ec ts

146

Identificatir:n of proiect team

Identi fication of alternatives

Financial implication s,/resources

Time schedule
Development of concept design
2. Preliminary Design
General scope of works/basic design

Regulatory/authorities' approval
Budget
Schedule
Contract terms and conditions
Value engineering stucly

3. Detailed Design
Detail design of the works
Regulatory/authorities' approval
Contract documents and specifications

Detailed plan
Budget
Estimated cash flow'

Tenderlbid documents
4. Construction

Mobilization
Execution of works

Plarrning and scheduling

Management of resources/prcrc

rement

Monitoringand conffol

Quality
Inspection
5. Testing, cr:mmissioning, and handover
Testing

Commissioning
Regulatory/authorities' approral
As-built drawings/records
Technical manuals and documents

Construrtionfuoiects

L47

Training of user's personnel

Fland over facility tei owner/end user
Movc-in-plan
Substantial completion
Table 3.3 illustrates the suMivided activities/components of the construction project life rycle.
These activities may not be strictly sequential, however, the break down
allows implemenhtion of proic"ct management functions more effectively at
different stafps.

Quality Managemcnt in Construction Projecb

148

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