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Quality management

     CIVIL 703 PROJECT MANAGEMENT 1
          AUCKLAND UNIVERISTY




            Quality Management




By KHALED EID
Quality management

    Abstract
    Quality management in construction becoming a demanding requirement by clients
    especially when building large and complex projects , the ISO 9000 serious was
    been introduced as measuring scale for quality .

    This study will analysis the problems that likely face project engineering in medium
    size construction company as a result of implanting quality management process on
    there organization. The methodology used based on literature review and surveys
    results to sample of construction firms in US .

1       Introduction
    Construction related firms recognize the need for providing a quality product that will
    both satisfy the customer and maintain there competitiveness in an ever –changing
    and demanding market. In this context, quality is considered on of the key
    transformation elements of project management techniques, deemed necessary for
    success in the 21st century market place (Kini 2000).

    1.1 Quality management
    Quality in the construction industry is typically understood in terms of “fitness for
    purpose” (Ho, 1995, p. 5) or “quality of workmanship” (Bennett, 1991, p. 5).ISO
    defines quality as the totality of characteristics on an entity that bear on its ability to
    satisfy stated or implied needs (ISO 2000).


    1.2 What is QMS
    QMS is quality management system defined according to Brain and Peter (2004 p3)
    "A formal statement of an origination 's business policy , management responsibilities
    , process and there control, that reflects the most effective ways to meet the
    expectation of those it serves whilst achieving its own prime business objectives".

    1.3 ISO 9000 Serious
    ISO 9000, the series of quality management standards issued by the International
    Organization for Standardization based in Geneva ,is being used by organizations
    involved in construction all over the world.

    1.3.1 ISO 9000
    Is a guideline for selection and use of quality system standards. It provides insight for
    various situations and conditions as well as definitions and explanations.

    1.3.2 ISO 9001
    Defines minimum quality system requirements for design/development, production,
    installation and servicing. It is the most complete standard. It applies to manufacturing
    and service businesses engaged in all these activities.

    1.3.3 ISO 9002
    Ds essentially a subset of 9001. It applies only to production and installation
    activities.
Quality management

    1.3.4 ISO 9003
    Applies to final inspection and test.

    1.3.5 ISO 9004
    Is a guideline for quality system elements. It is like a textbook which describes,
    explains and recommends

2       Implementation process
    The ISO 9000 standards have actively been promoted in the construction industry in
    many countries as a means to assuring quality by building contractors. Some countries
    (for example, Australia, Hong Kong and Singapore) have gone as far as to require all
    contractors to be certified to ISO 9000 requirements before they qualify to bid for
    public sector building projects. This means that quality management systems (QMS)
    certified to ISO 9000 standards are now an ubiquitous feature in the construction
    industry in many countries.
    The 14 essential steps to be followed through in order to implement ISO 9000 quality
    management system successfully.
        • Step 1: Top management commitment
        • Step 2: Establish implementation team
        • Step 3. Start ISO 9000 awareness programs
        • Step 4: Provide Training
        • Step 5. Conduct initial status survey
        • Step 6: Create a documented implementation plan
        • Step 7. Develop quality management system documentation
        • Step 8: Document control
        • Step 9. Implementation
        • Step 10. Internal quality audit
        • Step 11. Management review
        • Step 12. Pre-assessment audit
        • Step 13. Certification and registration
        • Step 14: Continual Improvement

    2.1 Reasons for implementing ISO 9000
    Deming (1986) argued that business contracts should not be awarded on the basis of
    price alone .For most organization, the primary motivation for implementing ISO
    9000 as a QMS is either management need or customer demand.

    2.1.1 Management demand
    Management requirement for implementing ISO 9000 usually to increase
    productivity and product quality and use it as a marketing thus gaining competitive
    advantage, some time only competitive pressure where organization's competitors
    have established or in the process of establishing.
Quality management

    2.1.2 Customer demand
    Customer demands on an existing supplier to implement ISO 9000 is driven by the
    customer's need of an assurance that the supplier is capable of meeting the customer's
    quality requirement.

    2.2 Benefits of implementing ISO 9000
    Implement of ISO 9000 as a QMS in an organization offers near terms and long term
    rewards
       1. Defined process and supporting QMS documentation are the basis of
           repetition.
       2. Enable organization to focus on how to execute its business process.
       3. Fosters continual improvement in the organization productivity.
       4. Results a higher-quality products and service .
       5. Improves customer satisfaction level, which helps improve customer loyalty
           and costumer retention.
       6. Enhance origination to gain competitive advantage due to being perceived as a
           "best-in-class".
       7. Enhance customer confidence in the ability of a supplier products and services
           according to specific quality requirements.
       8. Eliminates an organization dependence on a few individuals for information
           regarding critical process.
       9. Reduces waste of recourses and loss of reputation resulting from rejection and
           rework .
       10. Promotes employee understanding that quality is everyone's responsibility.
       11. Improve communication both internally and externally, which results in
           improvements in efficiency and effectiveness.



3       Problems during implementing ISO 9000
    According to Seddon, ISO 9000 promotes specification, control, and procedures
    rather than understanding and improvement
    A common criticism of ISO 9000 is the amount of money, time and paperwork
    required for registration.[8] According to Barnes, "Opponents claim that it is only for
    documentation. Proponents believe that if a company has documented its quality
    systems, then most of the paperwork has already been completed."[

    3.1 Duration and cost
    The process usually took from one year to two years, which is time consuming and
    costing about 250,000 $ in average .

    3.2 Lack of resources
    Lack of available resources to implement and maintain a quality assurance system
    based on the ISO standards is a major concern barrier in implementation process.
Quality management

    3.3 Increases the documentation
    Most construction projects already involve large amounts of paperwork. These
    include voluminous contract documents, records of plans and amendments, architects'
    instructions, steel bending schedules, change orders, forms to record the requisition,
    order, delivery and movement of material, plant and labor, and material safety data
    sheets.


    3.4 Reduces the productivity of the company
    Some companies consider that documentation requirements are too stringent and can
    turn the system unto a controlled bureaucracy limiting its effectiveness Structural
    changes.

    3.5 Restricts the unique creativity of the company
    The most difficulty encountered is related to documentation and the development of
    the company quality manual, managing and establishing new systems and procedures
    breed many problems.

    3.6 Increases the operating costs of the company
    Another problem is the lack of management staff can be released to do additional
    work with regards to the quality registration , this might result using outside
    management consulting firms impacting the operating cost .
    Measuring sot and benefits of a quality system will require expanding the
    management accounting system to include measurement and reporting of life cycle
    coast .


    3.7 Increases the amount of unnecessary procedures
    Documentation can bring about new and increases procedures that must be
    implemented this also generates additional cost .

    3.8 Requirement of timely information
    Due to the ISO documentation requirement there are fears about speedy flow of
    information that might lead to a serious consequences.

4       Conclusion
       •   Implementing a Quality Management System (QMS) within an organization
           needs to be a decision by top management. The objective of the quality
           system needs to be clearly defined so that the system can be effective.
       •   An important implementation issue is speed. Most firms require 18 months or
           longer to achieve certification. Another issue is the current state of quality
       •   ISO 9000 can be considered an applicable tool for construction firms.
       •   Most certified companies have experienced some difficulties in implementing
           ISO 9000.These are generally related to documentation requirements and
           internal assessment procedures. ( Abdol & Hector 2003)
       •   The cost and duration of the certification process is a great barrier .
Quality management

5       Recommendation
    Some recommendation can be provide to encourage acceptance of ISO 9000 standers
    among construction companies .
       1. The ISO organization and the accredited registrars (auditors) should apply less
          emphasis on the documentation requirements for the certification.
       2. Documentation process must be reviewed to be minimized saving valuable
          time and source.

    A further study to local similar size construction company will be of great benefit,
    local data might be different that US firms.




    References
    Abdol R. Chini and Hector E. Valdez,(2003),ISO 9000 and U.S construction industry
               ,Journal of management in engineering April 2003,69-77.
    Bennett, J. (1991), International Construction Project Management General Theory
            and Practice, Butterworth Heinemann, Oxford.
    Brain Thorpe and Peter Sumner (2004),Quality management in construction, Grower
            ,London.
    Kini, D.U. (2000) Global project management-not business as usual. Journal of
            management in engineering 16(6),29-33.
    Low S. Pheng & Peh Ke –Wei U(1996). A frame work for implementing TQM in
            construction. The TQM magazine Volume 8 number 5 ,39-46.
    Leon Korte . The ISO 9000 international quality registration: an empirical analysis
    of      implication for business firms. International journal of applied quality
            management , volume2 , number1,p59-73
    http://www.qsae.org/web_en/pdf/ISO9000ImpSteps.pdf [Accessed on 13/06/2007]
    http://www.misronet.com/quality_management.htm [Accessed on 13/06/2007]
    http://www.engineers-international.com/qualitysystem.html [Accessed on
            13/06/2007]
    http://www.strategosinc.com/iso_9000.htm [Accessed on 13/06/2007]

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Quality managment impacts in construction

  • 1. Quality management CIVIL 703 PROJECT MANAGEMENT 1 AUCKLAND UNIVERISTY Quality Management By KHALED EID
  • 2. Quality management Abstract Quality management in construction becoming a demanding requirement by clients especially when building large and complex projects , the ISO 9000 serious was been introduced as measuring scale for quality . This study will analysis the problems that likely face project engineering in medium size construction company as a result of implanting quality management process on there organization. The methodology used based on literature review and surveys results to sample of construction firms in US . 1 Introduction Construction related firms recognize the need for providing a quality product that will both satisfy the customer and maintain there competitiveness in an ever –changing and demanding market. In this context, quality is considered on of the key transformation elements of project management techniques, deemed necessary for success in the 21st century market place (Kini 2000). 1.1 Quality management Quality in the construction industry is typically understood in terms of “fitness for purpose” (Ho, 1995, p. 5) or “quality of workmanship” (Bennett, 1991, p. 5).ISO defines quality as the totality of characteristics on an entity that bear on its ability to satisfy stated or implied needs (ISO 2000). 1.2 What is QMS QMS is quality management system defined according to Brain and Peter (2004 p3) "A formal statement of an origination 's business policy , management responsibilities , process and there control, that reflects the most effective ways to meet the expectation of those it serves whilst achieving its own prime business objectives". 1.3 ISO 9000 Serious ISO 9000, the series of quality management standards issued by the International Organization for Standardization based in Geneva ,is being used by organizations involved in construction all over the world. 1.3.1 ISO 9000 Is a guideline for selection and use of quality system standards. It provides insight for various situations and conditions as well as definitions and explanations. 1.3.2 ISO 9001 Defines minimum quality system requirements for design/development, production, installation and servicing. It is the most complete standard. It applies to manufacturing and service businesses engaged in all these activities. 1.3.3 ISO 9002 Ds essentially a subset of 9001. It applies only to production and installation activities.
  • 3. Quality management 1.3.4 ISO 9003 Applies to final inspection and test. 1.3.5 ISO 9004 Is a guideline for quality system elements. It is like a textbook which describes, explains and recommends 2 Implementation process The ISO 9000 standards have actively been promoted in the construction industry in many countries as a means to assuring quality by building contractors. Some countries (for example, Australia, Hong Kong and Singapore) have gone as far as to require all contractors to be certified to ISO 9000 requirements before they qualify to bid for public sector building projects. This means that quality management systems (QMS) certified to ISO 9000 standards are now an ubiquitous feature in the construction industry in many countries. The 14 essential steps to be followed through in order to implement ISO 9000 quality management system successfully. • Step 1: Top management commitment • Step 2: Establish implementation team • Step 3. Start ISO 9000 awareness programs • Step 4: Provide Training • Step 5. Conduct initial status survey • Step 6: Create a documented implementation plan • Step 7. Develop quality management system documentation • Step 8: Document control • Step 9. Implementation • Step 10. Internal quality audit • Step 11. Management review • Step 12. Pre-assessment audit • Step 13. Certification and registration • Step 14: Continual Improvement 2.1 Reasons for implementing ISO 9000 Deming (1986) argued that business contracts should not be awarded on the basis of price alone .For most organization, the primary motivation for implementing ISO 9000 as a QMS is either management need or customer demand. 2.1.1 Management demand Management requirement for implementing ISO 9000 usually to increase productivity and product quality and use it as a marketing thus gaining competitive advantage, some time only competitive pressure where organization's competitors have established or in the process of establishing.
  • 4. Quality management 2.1.2 Customer demand Customer demands on an existing supplier to implement ISO 9000 is driven by the customer's need of an assurance that the supplier is capable of meeting the customer's quality requirement. 2.2 Benefits of implementing ISO 9000 Implement of ISO 9000 as a QMS in an organization offers near terms and long term rewards 1. Defined process and supporting QMS documentation are the basis of repetition. 2. Enable organization to focus on how to execute its business process. 3. Fosters continual improvement in the organization productivity. 4. Results a higher-quality products and service . 5. Improves customer satisfaction level, which helps improve customer loyalty and costumer retention. 6. Enhance origination to gain competitive advantage due to being perceived as a "best-in-class". 7. Enhance customer confidence in the ability of a supplier products and services according to specific quality requirements. 8. Eliminates an organization dependence on a few individuals for information regarding critical process. 9. Reduces waste of recourses and loss of reputation resulting from rejection and rework . 10. Promotes employee understanding that quality is everyone's responsibility. 11. Improve communication both internally and externally, which results in improvements in efficiency and effectiveness. 3 Problems during implementing ISO 9000 According to Seddon, ISO 9000 promotes specification, control, and procedures rather than understanding and improvement A common criticism of ISO 9000 is the amount of money, time and paperwork required for registration.[8] According to Barnes, "Opponents claim that it is only for documentation. Proponents believe that if a company has documented its quality systems, then most of the paperwork has already been completed."[ 3.1 Duration and cost The process usually took from one year to two years, which is time consuming and costing about 250,000 $ in average . 3.2 Lack of resources Lack of available resources to implement and maintain a quality assurance system based on the ISO standards is a major concern barrier in implementation process.
  • 5. Quality management 3.3 Increases the documentation Most construction projects already involve large amounts of paperwork. These include voluminous contract documents, records of plans and amendments, architects' instructions, steel bending schedules, change orders, forms to record the requisition, order, delivery and movement of material, plant and labor, and material safety data sheets. 3.4 Reduces the productivity of the company Some companies consider that documentation requirements are too stringent and can turn the system unto a controlled bureaucracy limiting its effectiveness Structural changes. 3.5 Restricts the unique creativity of the company The most difficulty encountered is related to documentation and the development of the company quality manual, managing and establishing new systems and procedures breed many problems. 3.6 Increases the operating costs of the company Another problem is the lack of management staff can be released to do additional work with regards to the quality registration , this might result using outside management consulting firms impacting the operating cost . Measuring sot and benefits of a quality system will require expanding the management accounting system to include measurement and reporting of life cycle coast . 3.7 Increases the amount of unnecessary procedures Documentation can bring about new and increases procedures that must be implemented this also generates additional cost . 3.8 Requirement of timely information Due to the ISO documentation requirement there are fears about speedy flow of information that might lead to a serious consequences. 4 Conclusion • Implementing a Quality Management System (QMS) within an organization needs to be a decision by top management. The objective of the quality system needs to be clearly defined so that the system can be effective. • An important implementation issue is speed. Most firms require 18 months or longer to achieve certification. Another issue is the current state of quality • ISO 9000 can be considered an applicable tool for construction firms. • Most certified companies have experienced some difficulties in implementing ISO 9000.These are generally related to documentation requirements and internal assessment procedures. ( Abdol & Hector 2003) • The cost and duration of the certification process is a great barrier .
  • 6. Quality management 5 Recommendation Some recommendation can be provide to encourage acceptance of ISO 9000 standers among construction companies . 1. The ISO organization and the accredited registrars (auditors) should apply less emphasis on the documentation requirements for the certification. 2. Documentation process must be reviewed to be minimized saving valuable time and source. A further study to local similar size construction company will be of great benefit, local data might be different that US firms. References Abdol R. Chini and Hector E. Valdez,(2003),ISO 9000 and U.S construction industry ,Journal of management in engineering April 2003,69-77. Bennett, J. (1991), International Construction Project Management General Theory and Practice, Butterworth Heinemann, Oxford. Brain Thorpe and Peter Sumner (2004),Quality management in construction, Grower ,London. Kini, D.U. (2000) Global project management-not business as usual. Journal of management in engineering 16(6),29-33. Low S. Pheng & Peh Ke –Wei U(1996). A frame work for implementing TQM in construction. The TQM magazine Volume 8 number 5 ,39-46. Leon Korte . The ISO 9000 international quality registration: an empirical analysis of implication for business firms. International journal of applied quality management , volume2 , number1,p59-73 http://www.qsae.org/web_en/pdf/ISO9000ImpSteps.pdf [Accessed on 13/06/2007] http://www.misronet.com/quality_management.htm [Accessed on 13/06/2007] http://www.engineers-international.com/qualitysystem.html [Accessed on 13/06/2007] http://www.strategosinc.com/iso_9000.htm [Accessed on 13/06/2007]