Managing Quality

1. Managing Quality

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

3. 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

4. Quality means .... • freedom from deficiencies • ‘doing it right the first time’ • client satisfaction • satisfaction of all employees (all project stakeholders) • continously improving performance reduce costs repeat business  staying competitive

5. 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

6. Why is quality management essential?

7. The global business environment continous improvement ! Constant change Customer requirements Competition Globalisation Success of Japan

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

9. The global business environment Average sales price Average cost 1997 1998 1999 2000 2002 2003 2004 2001 1996 1991 1992 1993 1994 1995

10. 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

11. QC ~ detecting errors QA ~ eliminating errors “Getting it right first time” Some definitions • 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): 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.

12. 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 of processes Quality of product Quality of processes

13. CONTINOUS IMPROVEMENT DEFECTS PREVENTION DEFECTS DETECTION Quality hierarchy = ensuring continous improvement of the performance of all activities, for benefit of all customers and employees = Prevention of defects through management and procedures to ‘build in’ quality into the production system  make quality system = Detection of defects according to quality plan, categorisation, statistical techniques ... = Data collection, creation of records ...

14. Continous improvementDeming Circle

15. 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

16. 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

17. Quality systems

18. 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 (IS0member bodies). The work of preparing International Standards is normally carried out through IS0 technicalcommittees. • adopted by the International Standards Organisation (ISO) in Geneva and was reborn as ISO 9000 Quality Management and Quality Assurance Standardsin 1987 • updated in 1994 and 2000

19. Structure of ISO 9000

20. 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

21. 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

22. ISO 9001 • Quality Management • Resource Management • Regulatory Research • Market Research • Product Design • Purchasing • Production • Service Provision • Product Protection • Customer Needs Assessment • Customer Communications • Internal Communications • Document Control • Record Keeping • Planning • Training • Internal Audit • Management Review • Monitoring and Measuring • Nonconformance Management • Continual Improvement 21 processes that you are required to: • Develop .. • Document .. • Implement .. • Monitor .. • Improve ..

23. TS EN ISO 9001:2000 Kalite Yönetim Sistemleri - Şartlar

24. Example req’s in ISO 9001 • Develop documents to implement the quality system • Define product quality objectives and requirements • Develop review and approval mechanisms for documents • Avoid use of obsolete document • Set measurable objectives for quality

25. Example req’s in ISO 9001 • Develop and implement a system to control communication with customers • Management of design and development • Ensure that purchased products meet requirements • Calibrate instruments • Monitor and measure quality system performance • Control non-conforming products

26. Quality audit A quality audit is a systematic and independent examination to determine if quality activities and results comply with objectives • Internal auditing is a formal procedure undertaken by an impartial and trained individual, for example following a checklist • External auditing is done by external organisation • The audit records should detail inadequacies, by issuing non-conformance notices (‘findings’), and indicate suitable corrective action

27. Related ISO quality standards • ISO 10012:2003Measurement management systems -- Requirements for measurement processes and measuring equipment • ISO/TR 10013:2001Guidelines for quality management system documentation • ISO 10015:1999Quality management -- Guidelines for training • ISO/TR 10017:2003Guidance on statistical techniques for ISO 9001:2000 • ..... full list on http://www.iso.ch

28. Other related standards • The ISO 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 18000 is an international occupational health and safety management system specification NOTE: These are process standards, NOT industry standards TS XXXXX must be followed

29. Total Quality Management

30. 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, respecting societal values and beliefs, and obeying governmental statutes and regulations

31. TQM - Total Quality Management A senior management-led to obtain the involvement of all employees in the continuous improvement of the performance of all activitiesto meet the needs and satisfaction of the customer whether internal or external

32. TKY - Toplam Kalite Yönetimi Müşteri ihtiyaçlarını tatmin etmek üzere sürekli bir iyileştirme mantığı içinde bütün çalışanların ilgi ve katılımı İle tüm süreçlerde mükemmel bir performans elde etmeyi amaçlayan bir yönetim anlayışıdır

33. 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

34. 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.

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

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

37. Quality management in construction

38. Quality in construction firm • Establish awareness of quality • Develop quality system • Introduce the system • System evaluation Main steps in introducing a QA system:

39. Quality in construction project • Prepare project quality plan • Policy and company profile • Organisation and responsibilities • Procedures • Method statements / work instructions • Inspection and test plans • Create quality records

40. Compressive strength of concrete cubes Test of concrete cores Typical contractors QC • Visual inspections of site works to ensure compliance with drawings and specifications • Approval of materials / certificates

41. 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’ • 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

42. 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 construction • 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)

43. Check sheets • In construction projects two types of control sheets are often seen: • During construction: Check sheets filled out on site • 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.

44. Quality records Evidence documents that shows how well a quality requirement is being met or how well a quality system element is performing. For construction: • Filled-out check sheets • Daily diary • Concrete test records • Closed-out non-conformance reports • Rectified snag list • etc.

45. Method statements • The method statement explainshow 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.

46. Quality costs • Cost of conformance – cost of the company’s quality efforts • Appraisal cost • Prevention cost • Cost of non-conformance • Internal failures • External failures 1 2

47. Quality costs

48. Why quality costs ? • To quantify quality problems • To speak the ‘money language’ to managers • To support a quality improvement program

49. 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

50. 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