managing quality lecture 1

Quality Management Quality Management

The Process of The Process of Managing QualityManaging Quality

Dr A G KimmanceDr A G KimmancePhD; BSc-Eng; MSc-Eng; MCIOB; MAPM; Ceng; MAHEAPhD; BSc-Eng; MSc-Eng; MCIOB; MAPM; Ceng; MAHEA

3/8/2008

MSc Built Environment: Management Procedures and Organisation Level 3/4/5/6/7

University Course Leader: Dr AG Kimmance

AgendaAgenda What is quality? Importance of quality management Quality Systems ISO 9000 Total Quality Management (TQM) Quality management in construction Quality Costs

3/8/2008 Course Leader: Dr AG Kimmance

Definitions of QualityDefinitions of Quality ISO 8402-1986 Standards define QUALTIY as “The totality

of features and other characteristics of a product or service that bear on its ability to satisfy stated or implied needs”.

Quality is doing the right things right and is uniquely defined by each individual.

The degree to which something meets or exceeds the expectations of its consumers.

When something is what you expect it to be then it is perceived as quality, thus quality is a fulfilment of expectation.

"Quality is the expression of human excellence.”3/8/2008 Course Leader: Dr AG Kimmance

Quality ContinuedQuality ContinuedThere are two forms of quality, and therefore two definitions and two forms of measurement. 1.1.OBJECTIVEOBJECTIVE quality is the degree of compliance of a process or its outcome with a predetermined set of criteria, which are presumed essential to the ultimate value it provides. Example: proper formulation of a heating system

2. 2. SUBJECTIVE SUBJECTIVE quality is the level of perceived value reported by the person who benefits from a process or its outcome. It may subsume various intermediate quality measures, both objective and subjective. Example: output (heat relief) provided by a heating system. 3/8/2008 Course Leader: Dr AG Kimmance

What is What is QQuality?uality? "Quality is predictability" the Quality Management

Cycle: Plan, Do, Check (study), and Act (Deming 1956). "Quality" is achieved by meeting or exceeding established process guidelines so that, regardless of the type of industry, a consistent outcome can be predicted (Deming).

Fitness for purpose; the “intention” not as “specified” fitness for use (Juran 1974)

Conformance to requirements and to specification; that is, meeting customer needs (Crosby 1979)

Characteristics and properties of a product, seen as a whole, as ability to fulfil specified or implied requirements of the customer3/8/2008 Course Leader: Dr AG Kimmance

Quality Quality MMeans ....eans ....• 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


QualityQuality Cont..... Cont.....• Must not be confused with gradegrade (class) (class)• Grade is a category or rank given to

entities having the same functional use but different technical characteristics


QUALITY IS MEETING CUSTOMER QUALITY IS MEETING CUSTOMER REQUIREMENTS AT LOWER REQUIREMENTS AT LOWER

COST WITH BUILT IN COST WITH BUILT IN PREVENTIVE ACTIONS IN THE PREVENTIVE ACTIONS IN THE

PROCESSES AND EMPLOYEE OR PROCESSES AND EMPLOYEE OR MANAGEMENT INVOLVEMENT MANAGEMENT INVOLVEMENT

ENSURING THE BEST PRODUCT ENSURING THE BEST PRODUCT TO THE CUSTOMER/END USER TO THE CUSTOMER/END USER

WITH JIT DELIVERY. WITH JIT DELIVERY.


Why is Why is QQuality uality MManagement anagement EEssential?ssential?


Success of JapanSuccess of Japan

GlobalisationGlobalisation

CompetitionCompetition

Customer requirementsCustomer requirements

Constant changeConstant change

The global business environmentThe 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 environmentThe global business environmentFamous 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 environmentThe global business environment


Some definitionsSome definitions Quality Quality PPlanning:lanning: 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 definitionsSome 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 resultsMonitoring work results Inspections and testsInspections 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 plansPrepare quality plans AuditsAudits TrainingTraining etc.etc.


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 errorsQC ~ detecting errors

QA ~ eliminating errorsQA ~ eliminating errors

““Getting it right first time”

Getting it right first time”


Quality of Quality of PProcessesrocesses

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 Quality HHieraierarrchychy

TOTALQUALITY

MANAGEMENT

QUALITYASSURANCE

QUALITY CONTROL

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

== Detection of defects Detection of defects according to quality plan, according to quality plan, categorisation, statistical categorisation, statistical techniques ...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 ensuring continous improvement of the performance of all activities, of the performance of all activities, for benefit of all customers and for benefit of all customers and employeesemployees

DEFECTS DETECTIONDEFECTS DETECTION

DEFECTSDEFECTSPREVENTIONPREVENTION

CONTINOUSCONTINOUSIMPROVEMENTIMPROVEMENT


Continous Continous IImprovementmprovementDeming CircleDeming Circle

ACTION PLAN

CHECK DOPolicy

deployment

Auditing,diagnosis,reporting

Possible changesbased on the

diagnosis

Policydevelopment


Quality Quality SSystemsystems 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 Quality SSystemsystems Cont... Cont...

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 Quality SSystemsystems

Procedures

Work instructions Method statements Operating procedures etc.

Proof

Philosophyand policy

Principlesand strategy

Practices

Quality Manual

Control sheets

=

=

=

=


ISO 9000ISO 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 20003/8/2008 Course Leader: Dr AG Kimmance

Structure of ISO 9000Structure of ISO 9000

ISO 9000:2000

Fundamentals and vocabulary

ISO 9004:2000

Guidelines for performanceimprovements

ISO 9001:2000

Requirements


ISO 9001ISO 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 9001ISO 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 9001ISO 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 9001Example 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 9001Example 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

3/8/2008 University Course Leader: Dr AG Kimmance

Quality Quality AAudituditA 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 standardsRelated 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


http://www.iso.ch/iso/en/CatalogueDetailPage.CatalogueDetail?CSNUMBER=26978&ICS1=3&ICS2=120&ICS3=10



• NOTE: These are process standards, NOT industry standards

Other related standardsOther 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 Total Quality ManagementManagement TQM TQM


TQMTQM - 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


TQMTQM - Total Quality ManagementTotal 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


TQM TQM CConceptsoncepts SStrong 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)

CContinual improvement TTop management leadership AAccurate measurement CChange in organisational culture

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

EEmpowerment of employees3/8/2008 Course Leader: Dr AG Kimmance

TQM tools and techniquesTQM 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.3/8/2008 Course Leader: Dr AG Kimmance

Quality Quality AAwardswards

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


The European Quality ModelThe 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 firmQuality in construction firm

1.1. Establish awarenessEstablish awareness of quality of quality2.2. Develop quality Develop quality systemsystem3.3. Introduce the systemIntroduce the system4.4. System evaluatioSystem evaluationn

Main steps in introducing a QA system:


Quality in Quality in CConstruction onstruction PProjectroject

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 Typical CContractors QContractors QC• Visual inspections of site works to ensure Visual inspections of site works to ensure

compliancecompliance 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 Inspection and TTest est PPlanslansAn 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 Check SSheetsheets• There are primary 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 Check SSheetsheets Cont.... Cont.... In construction projects two types of In construction projects two types of

control sheets are often seen: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 Quality RRecordsecords

• 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 statementsMethod 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 Costs1. 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 costsQuality costsC

OS

T

QUALITY LEVEL100%Defects

0%Defects

Prevention +appraisal cost

Failure cost

Total cost ofquality

Minimum


Why Why QQuality uality CCosts ?osts ?• 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-conformanceCost 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 Cost of CConformanceonformance 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

program3/8/2008 Course Leader: Dr AG Kimmance

Turkish construction issuesTurkish construction issues


Ethical Ethical IIssuesssues Conflict of interest Confidentiality and loyalty Engineering judgment Professional responsibility• Codes of ethics

• Professions (Professions (Managers, EManagers, Engineers, ngineers, DDoctors, etc.)octors, etc.)

• Companies and organisations (‘code of Companies and organisations (‘code of conducts’)conducts’)


Code of Code of EEthicsthics 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:”


Code of Code of EEthicsthics Cont..... Cont..... 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


managing quality lecture 1

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