Managing Quality Lecture 1

Quality ManagementQuality Management
The Process ofThe Process of
Managing QualityManaging Quality
Dr A G KimmanceDr A G Kimmance
PhD; 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 Continued
There 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. SUBJECTIVESUBJECTIVE 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.

What isWhat 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

QualityQuality 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 projectsatisfaction 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 CUSTOMERQUALITY IS MEETING CUSTOMER
REQUIREMENTS AT LOWERREQUIREMENTS AT LOWER
COST WITH BUILT INCOST WITH BUILT IN
PREVENTIVE ACTIONS IN THEPREVENTIVE ACTIONS IN THE
PROCESSES AND EMPLOYEE ORPROCESSES AND EMPLOYEE OR
MANAGEMENT INVOLVEMENTMANAGEMENT INVOLVEMENT
ENSURING THE BEST PRODUCTENSURING THE BEST PRODUCT
TO THE CUSTOMER/END USERTO THE CUSTOMER/END USER
WITH JIT DELIVERY.WITH JIT DELIVERY.

Why isWhy is QQualityuality
MManagementanagement EEssential?ssential?

Success of JapanSuccess of Japan
GlobalisationGlobalisation
CompetitionCompetition
Customer requirementsCustomer requirements
Constant changeConstant change
The global business environmentThe global business environment
continouscontinous
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)
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

Some definitionsSome definitions
 QualityQuality 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 errors
QC ~ detecting errors
QA ~ eliminating errors
QA ~ eliminating errors
““Getting it right first time”
Getting it right first time”

Quality ofQuality 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

QualityQuality HHieraierarrchychy
== Data collection, creationData collection, creation
of records ...of records ...
== Detection of defectsDetection of defects
according to quality plan,according to quality plan,
categorisation, statisticalcategorisation, statistical
techniques ...techniques ...
== Prevention of defects throughPrevention of defects through
management and procedures tomanagement and procedures to
‘build in’ quality into the production‘build in’ quality into the production
systemsystem  makemake quality systemquality system
== ensuring continous improvementensuring continous improvement
of the performance of all activities,of the performance of all activities,
for benefit of all customers andfor benefit of all customers and
employeesemployees
DEFECTS DETECTIONDEFECTS DETECTION
DEFECTSDEFECTS
PREVENTIONPREVENTION
CONTINOUSCONTINOUS
IMPROVEMENTIMPROVEMENT

ContinousContinous IImprovementmprovement
Deming CircleDeming Circle

QualityQuality 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

QualityQuality 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

QualityQuality SSystemsystems

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 9000ISO 9000 Quality Management and QualityQuality 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 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 9001
1. Quality Management
2. Resource Management
3. 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 that21 processes that
you are required to:you are required to:

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

Example req’s in ISO 9001Example req’s in ISO 9001
• Develop documents to implement the qualityDevelop documents to implement the quality
systemsystem
• Define product quality objectives andDefine product quality objectives and
requirementsrequirements
• Develop review and approval mechanisms forDevelop review and approval mechanisms for
documentsdocuments
• Avoid use of obsolete documentAvoid use of obsolete document
• SetSet measurable objectivesmeasurable objectives for qualityfor quality

Example req’s in ISO 9001Example req’s in ISO 9001
• Management ofManagement of design and developmentdesign and development
• Ensure that purchased products meetEnsure that purchased products meet
requirementsrequirements
• Calibrate instrumentsCalibrate instruments
• Monitor and measure quality systemMonitor and measure quality system
performanceperformance
• Control non-conforming productsControl non-conforming products
• Develop and implement a system toDevelop and implement a system to
controlcontrol communication with customerscommunication with customers
3/8/2008 University Course Leader: Dr AG Kimmance

QualityQuality AAuditudit
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, byThe 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

• 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 QualityTotal Quality
ManagementManagement TQMTQM

TQMTQM - Total Quality Management
A management approach that tries to
achieve and sustain long-termachieve and sustain long-term
organizational successorganizational success by
encouraging employee feedback and
participation, satisfying customersatisfying 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 thecontinuous improvement of the
performance of all activitiesperformance of all activities to meet the
needs and satisfaction of the customer
whether internal or external

TQMTQM 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.

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

The European Quality ModelThe European Quality Model
On this model we can see the criteria that are used to judge
organisations for award of the European quality award

Quality Management in
Construction

Quality in construction firmQuality in construction firm
1.1. Establish awarenessEstablish awareness of qualityof quality
2.2. Develop qualityDevelop quality systemsystem
3.3. Introduce the systemIntroduce the system
4.4. System evaluatioSystem evaluationn
Main steps in introducing a
QA system:

Quality inQuality in CConstructiononstruction
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

TypicalTypical CContractors QContractors QC
• Visual inspections of site works to ensureVisual 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 andInspection and TTestest PPlanslans
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

CheckCheck 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 innot 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)

CheckCheck SSheetsheets Cont....Cont....
 In construction projects two types ofIn 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.

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

Quality costsQuality costs

WhyWhy QQualityuality CCosts ?osts ?
• To quantify quality problems
• To speak the ‘money language’ to managers
• To support a quality improvement program

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 ofCost 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
program

Turkish construction issuesTurkish construction issues

EthicalEthical 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 ofCompanies and organisations (‘code of
conducts’)conducts’)

Code ofCode 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 ofCode 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

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