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 deficiencies
• ‘doing it right the first time’  reduce costs
• client satisfaction  repeat business
• satisfaction of all employees (all project
stakeholders)
• continously improving performance
 staying 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?
The global business environment
continous
Constant change
improvement !

Customer requirements

Competition

Globalisation

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

• 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

Average sales price

Average cost
2000
2001
2002
2003
1997
1998
1999

2004
1996
1991

1993
1992

1994
1995
 Some definitions
• 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): A set of activities or techniques
whose purpose is to ensure that all quality r ro r s
requirements
t in g e
are being met by monitoringtof
d e e c
processes and solving
performance problems
C
Q ~
 Monitoring workQresults
 Inspections and tests
• Quality Assurance (QA): A set of activities orors
g e r rthat quality
n a t i n
techniques whose purpose is to demonstrate
i give confidence ”
requirements are met.eQAl i m
should
t t i m e
that
Q A ~
quality requirements are being met tf i r s
it r i gh
i ng
 Prepare quality plans
 Audits
 Training
“Gett
 etc.
 Quality of processes
Quality of product

Quality 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
= ensuring continous improvement of the
performance of all activities, for benefit of
TOTAL all customers and employees
CONTINOUS
QUALITY
MANAGEMENT
IMPROVEMENT

= Prevention of defects through

DEFECTS management and procedures to
QUALITY
ASSURANCE
‘build in’ quality into the production
PREVENTION
system  make quality system

= Detection of defects according

QUALITY CONTROL to quality plan, categorisation,
statistical techniques ...
DEFECTS DETECTION

INSPECTION AND TESTING = Data collection, creation of

records ...
Continous improvement
Deming Circle

ACTION PLAN
Possible changes
Policy
based on the
development
diagnosis

CHECK DO
Auditing,
Policy
diagnosis,
deployment
reporting
 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
• A quality system specifies how something
has to be done, then verify it has been
achieved
• The purpose is to ensure every time a
process is performed, the same
information, methods, skills and controls
are used in a consistent manner
 Quality systems

Philosophy
Quality Manual =
and policy

Principles
Procedures =
and strategy

 Work instructions
 Method statements
= Practices
 Operating procedures
 etc.

Control sheets = Proof

Total Quality Management
TQM - Total Quality Management

A management approach that tries to

achieve and sustain long-term
organizational success by
encouraging employee feedback and
participation, satisfying customer
needs and expectations,
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
performance of all activities to meet the
needs and satisfaction of the customer
whether internal or external
 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 tools
• Statistics, diagrams
• Nonnumeric tools
• Brainstorming
• Quality circles
• Flowcharting
• Benchmarking
• Business Process Reengineering (BPR)
• Strategic planning/management
• Reliability engineering, configuration management,
etc.
 Quality costs
1 Cost of conformance – cost of the
1.
company’s quality efforts
• Appraisal cost
• Prevention cost
2 Cost of non-conformance
2.
• Internal failures
• External failures
 Quality costs
Total cost of
quality
COST

Minimum

Failure cost Prevention +

appraisal cost

100% 0%
Defects
QUALITY LEVEL Defects
 Why quality costs ?
• To quantify quality problems
• To speak the ‘money language’ to managers
• To support a quality improvement program

Prevention

Appraisal
Manage by more
prevention
Conformance
Less appraisal

Rework/failures
Less rework/ Non-conformance
failures

Before Improvement After

That’s it for today !