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CONSTRUCTION QUALITY MANAGEMENT S.L. Tang Syed M. Ahmed Raymond T. Aoieong S.W. Poon # m * * & «L *t HONG KON G UNIVERSIT Y PRES S

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Page 1: CONSTRUCTION QUALITY MANAGEMENT - Hong Kong … · INTRODUCTION TO CONSTRUCTION QUALITY MANAGEMENT Quality ISO 8402 defines quality as the degree of excellence in a competitive sense,

CONSTRUCTION QUALITY

MANAGEMENT

S.L. Tang Syed M. Ahmed

Raymond T. Aoieong S.W. Poon

# m * * & «L *t H O N G KON G UNIVERSIT Y PRES S

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Hong Kong University Pres s 14/F Hing Wai Centre 7 Tin Wan Praya Road

Aberdeen Hong Kong

© Hong Kong University Press 2005

ISBN 962 209 746 4

All rights reserved. No part of this publication may be reproduced o r transmitted, in any form o r by any means,

electronic o r mechanical, including photocopy, recording , or any information storag e or retrieval system, without prio r

permission in writing from th e publisher .

British Library Cataloguing-in-Publication Dat a A catalogue record fo r thi s book is available from th e British Library.

Secure On-lin e Orderin g http://www.hkupress.org

Printed and bound by Condor Production Co . Ltd., Hong Kong, China

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CONTENTS

Preface vi i

Chapter 1 : Introductio n t o construction qualit y management 1

Chapter 2 : Qualit y management and ISO 9000 Standard 1 5

Chapter 3 : Developmen t o f construction qualit y management 2 9 in Hong Kong and other countire s

Chapter 4 : Implementatio n o f quality management systems 3 9 by Hong Kong contractors and consultant s

Chapter 5 : Qualit y indicators 5 5

Chapter 6 : Qualit y audits 6 9

Chapter 7 : Tota l quality management (TQM ) in the construction industr y 8 1

Chapter 8 : Transitio n from IS O 9000:1994 to ISO 9000:2000 10 5 and integration o f QMS with TQM philosophy

Chapter 9 : Qualit y cost measurement I (prevention, appraisal 12 1 and failure cost s model)

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H f CONTENT S

Chapter 10 : Qualit y cost measurement I I (process cost model) 14 1

Chapter 11 : Application s of CPCM (Constructio n Proces s Cost Model) 15 9

Chapter 12 : Developin g a quality culture as the way forward 18 5

About the Authors 19 7

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TONSTRCH CTIODTi AGEMENT

Quality i s widely accepte d a s one o f th e key factor s fo r companie s t o b e successful i n the global market. Quality management has been an important issue for many years in various disciplines. The implementation o f effectiv e quality managemen t ha s bee n witnesse d an d documente d i n th e manufacturing industry , which set up a paradigm for other disciplines such as the design and construction industr y I n the past few years, things hav e changed i n the construction sector . I t has opened it s doors by welcoming policies tha t would improv e constructio n proces s an d lea d t o successfu l business strategies . Effective qualit y management , especiall y tota l qualit y management (TQM) , has been recognize d a s an enable r fo r performanc e improvement i n the construction industry .

1.1 A n Introductio n to Qualit y

Quality can be defined as a state that meets the legal, aesthetic and functiona l requirement o f a product o r projec t b y customers . Requirement s ma y be simple or complex, or they may be stated in terms of the result required or as a detaile d descriptio n o f wha t i s t o b e done . Metrology , specifications , inspection al l go back many centuries before th e Christia n era . Followin g the Second World War, two major force s emerged that have had a profound

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CONSTRUCTION QUALITY MANAGEMENT

impact o n quality: (1 ) the Japanese revolutio n i n quality ; an d (2) the prominence o f product qualit y in the public mind . Durin g the twentieth century, a significant bod y o f knowledge o n achieving superio r qualit y emerged, advanced by Juran, Deming , Feigenbaum, Crosb y and Ishikawa. Here are some examples of defining quality .

"Providing customers with products and services that consistently meet their needs and expectations" — Boeing

"Meeting the customer's need the first tim e and every time" Services Administration, US Government

General

"Performance t o the standard expected by the customer" — FEDEX

"Doing th e righ t thin g righ t th e firs t time , alway s strivin g fo r improvement, and always satisfying th e customer" — US Department of Defens e

From the above examples, quality has the following common characteristics: 1. I t involves meeting or exceeding customer expectations . 2. I t applies to products, services, people, processes, and environments. 3. I t is an ever-changing state (i.e. , what is considered qualit y today may

not be good enough to be considered qualit y tomorrow) .

Quality is a dynamic state associated with products, services, people, processes and environment s tha t meet s o r exceeds expectations . Qualit y i s always related to customer satisfaction/loyalty an d the fitness of use is designed for end customers . Figure 1.1 gives a detailed look into the customer structur e of a manufacturing company .

External Custome r - Ultimat e users , intermediat e

processors and menrchants - Havin g som e connection to

the produc t - The y are of primary

imortance

Stake Holder s

Internal Custome r - Othe r divisio n of a company - Department s or persons tha t

supply product s to each other

Goods-automobbiles

Product-"It i s the output o f any process'1 Software-computer progra m

Service-banking

Figure 1. 1 Custome r structur e o f a manufacturing compan y

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INTRODUCTION TO CONSTRUCTION QUALIT Y MANAGEMENT 3

The Relationship of Quality with Productivity , Costs, Cycle Time and Value

1 Qualit y and Productivit y

^ j Saleabl e outpu t • Productivit y = £ ——

Resources used • Improvemen t in quality directly results in an increase in productivity.

2 Qualit y and Costs

• A s the quality of design increases, cost increases. • A s the quality of conformance increases , cost decreases.

3 Qualit y and Cycle Time

• Th e cycle time to complete the activities is the key parameter. • Qualit y improvement effort s wil l reduce cycle time.

4 Qualit y and Value

• Valu e = Quality/ Price • Organization s mus t evaluat e th e value the y provide , relativ e t o the

competition.

Quality Managemen t

Quality managemen t i s the process o f identifying an d administering the activities needed to achieve the quality objectives of an organization.

Useful way of introducing

qualiy management DDI=> Relate it to another well-

known management

concept (financial)

Figure 1.2 Diagra m of quality managemen t

Quality management is defined a s (BS EN ISO 8402):

"All activities of the overall management function tha t determin e the quality policy, objectives and responsibilities, and implement

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CONSTRUCTION QUALITY MANAGEMENT

them by means such as quality planning, quality control, quality assurance, and quality improvement within th e quality system."

Total Quality Management • Polic y deploymen t • Invoiv e supplier s an d customer s • Invoiv e al l operation s • Proces s managemen t • Performanc e measuremen t • Teamwor k • Employe e involvemen t

Continuous improvemen t Empowering people Caring for people Involvement Compliance to specification Allocating blame

Quality assurance » Qual i ty system s developmen t » Advanced qualit y plannin g » Comprehensive qualit y manual s » Use o f qualit y cost s » Invoivement o f non-productio n

operations » Failure mod e an d effect s analysi s » Statistical proces s contro l

t Quality control

• Develo p qualit y manua l » Process performanc e dat a • Self-inspectio n » Product testin g » Basic qualit y plannin g » Use o f basi c statistic s • Paperwor k control s

t Inspection

» Salvage » Sorting, grading, reblendin g • Correctiv e action s » Identify source s o f non -

conformance

Figure 1 .3 Th e four stage s of quality managemen t

The four stages of quality management are shown in the Figure 1.3. Inspection and QC are retrospective; they operate in a detection mode , aiming to fin d problems that have occurred (fire fighting). QA and TQM aim to reduce and ultimately t o avoid problem s occurring ; the y ca n be used t o bring abou t improvement (fir e prevention) .

1.4 Terminolog y

Some important term s for quality management are as follows:

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INTRODUCTION T O CONSTRUCTION QUALIT Y MANAGEMENT

Quality ISO 8402 defines qualit y as the degree of excellence in a competitive sense, such a s reliability , serviceability , maintainabilit y o r eve n individua l characteristics.

Quality Control Both ANSI and ISO define qualit y control as the operational techniqu e an d activity to control and measure th e characteristics o f a material, structure , component, o r system that are used to fulfill requirement s fo r quality .

Quality Systems Quality systems refer t o the organizational structure, procedures, processes and resources needed t o implement qualit y management .

Quality Assurance Quality assurance is the implementation o f planned and systematic activities within quality systems to demonstrate and provide adequate confidence tha t an entity will fulfill requirement s fo r quality .

Quality Management Quality management refers to all activities of overall management functions , especially to p managemen t leadership , tha t determin e qualit y polic y objectives and responsibilities for al l members of the organization .

Total Quality Management Total quality management i s the management approac h o f an organization , which is based on the participation o f its members, concentrates on qualit y and aims at achieving long-term success through satisfaction an d benefits t o all members of the organization and society (ISO 8402 and Griffin 1990) .

Sometimes, "qualit y systems " an d "qualit y management " togethe r ar e described as "quality management systems' . These terms will be used in the rest of this chapter and in the other chapters of this book.

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» 6 CONSTRUCTIO N QUALITY MANAGEMENT

1.5 Qualit y Evolutio n

There are five stages in the evolution of quality control, as defined by Rounds and Ch i (1984) an d Feigenbuam (1991) .

• Craftsma n qualit y control was inherent in manufacturing u p to the end of the nineteenth century. At that time, a very small number of craftsmen were responsible for the manufacturing o f a complete product and each craftsman exclusivel y controlled th e quality of his work.

• Forema n quality control occurred during the industrial revolution when large-scale modern factory concep t developed. During this stage, many craftsmen performing similar tasks were grouped together and supervised by a foreman, wh o the n assumed responsibilit y fo r th e quality of thei r work.

• Inspectio n qualit y contro l evolve d durin g th e Firs t World War whe n the manufacturin g system s becam e mor e complex . Becaus e a larg e number o f craftsme n reporte d t o a production foreman , full-tim e inspectors were required. Thi s era peaked in large organizations in th e 1920s and 1930s .

• Statistica l quality control flourished during the Second World War when tremendous mas s production wa s necessary. I n effect , thi s step was a refinement o f th e inspectio n ste p an d resulte d i n makin g th e larg e inspection organization s more efficient. Inspector s were provided with statistical tool s suc h a s sampling an d contro l charts . W.A. Shewhar t developed a statistical chart for the control of product variables in 1924, marking th e beginning o f statistical qualit y control . Later in the same decade, H.F . Hodg e an d H.G . Romin g develope d th e concep t o f acceptance samplin g a s a substitute fo r 100 % inspection ; thi s wa s considered the most significant contribution of statistical quality control.

• Tota l quality control evolves in the early 1960 s in a four-phase process . A dramatic increase in user quality requirements resulted in increasing customer demand for higher-quality products, forcing the manufacture r to recognize th e inadequacy o f existing in-plant qualit y practices an d techniques. All these contributed t o excessive quality cost, due to such items as inspection, testing, laboratory checks, scrapping and reworking imperfect products , an d custome r dissatisfaction . Thes e problem s highlighted th e dua l qualit y challenge : providin g significan t improvement in the quality of products and practices while, at the same

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INTRODUCTION T O CONSTRUCTION QUALIT Y MANAGEMENT 7

time, effecting substantia l reductions in the overall cost of maintaining quality. Statistical quality control could never meet the challenge; thus, a totally new concept was developed based upon th e principle tha t i n order to provide genuine effectiveness, contro l must start with the design of the product and end only when th e product ha s been placed in th e hands of a customer who remains satisfied (Feigenbua m 1991) .

1.6 Pioneer s of the Total Quality Movemen t

Total quality i s not just on e individual concept . I t is a number o f relate d concepts pulle d togethe r t o creat e a comprehensive approac h t o doin g business (Goetsc h and Davis 2003). The major contributor s t o this concept are W. Edwards Deming , Joseph M . Juran, Phili p B . Crosby an d Kaor u Ishikawa.

1.6.1 Demin g W. Edwards Demin g o f th e United State s i s considere d th e fathe r o f th e quality movement. He is widely known for the Deming Cycle, his Fourteen Points, and the Seven Deadly Diseases.

The Deming Cycle

The basi c premis e o f Deming' s cycl e cover s concept s tha t appl y t o al l organizations (eCommerce-No w 2001) :

1. Plan : How are you going to look at the problem? 2. Do : Carry out the research. 3. Check : Review the results, and see if it achieves what you wer e

aiming to do; if not, go back to step one. 4. Act : Decide that something needs to be altered in your work place,

and make a decision to bring about an improvement .

Deming's "plan-do-check-act " cycl e will be further discusse d in Chapte r 7 in detail .

Deming's Fourteen Points

The 1 4 points ar e a basis fo r th e transformatio n o f (American ) industry . Adoption and action on the 1 4 points are a signal that management intend s to stay in business an d ai m t o protect investor s an d jobs (Demin g 1982 , 1986).

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• I CONSTRUCTIO N QUALIT Y MANAGEMENT

1. Creat e constancy of purpose toward improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs.

2. Adop t the new philosophy. In a new economic age, management must ris e to the challenge , learn thei r responsibilities , and tak e on leadership fo r change .

3. Ceas e dependence on inspection to achieve quality. Eliminate the need fo r inspection o n a mass basis by building quality into th e product in the first place .

4. En d th e practice o f awarding business on the basis of price tag . Instead, minimize tota l cost . Move towards a single supplier fo r any one item, on a long-term relationship o f loyalty and trust .

5. Improv e constantl y an d foreve r th e syste m o f production an d service, to improve quality and productivity, and thus constantl y decrease costs.

6. Institut e training on the job. 7. Institut e leadership . Th e aim o f supervision shoul d b e t o hel p

people and machines and gadgets to do a better job. Supervisio n of management is in need of an overhaul, as well as supervision of production workers .

8. Driv e ou t fear , s o tha t everyon e ma y wor k effectivel y fo r th e company.

9. Brea k dow n barrier s between departments . Peopl e i n research , design, sales , and productio n mus t wor k a s a team, t o forese e problems o f production an d problems tha t may be encountere d when using the product o r service.

10. Eliminat e slogans , exhortations , an d target s fo r th e workforc e asking fo r zer o defect s an d ne w level s o f productivity . Suc h exhortations onl y create adversarial relationships, as the bulk of the causes of low quality and low productivity belong to the system and thus lie beyond th e power of the workforce .

11. a . Eliminat e wor k standard s (quotas ) o n th e factor y floor . Substitute with leadership . b. Eliminat e managemen t b y objective. Eliminat e managemen t by numbers, numerical goals . Substitute with leadership .

12. Remov e barriers tha t rob the hourly paid worker o f his right t o pride in workmanship.

13. Institut e a vigorou s programm e o f educatio n an d self -improvement.

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INTRODUCTION T O CONSTRUCTION QUALIT Y MANAGEMENT 9

14. Pu t everybod y i n th e compan y t o wor k t o accomplis h th e transformation. Th e transformation i s everybody's job.

Deming's Seven Deadly Diseases

1. Lac k of constancy of purpose 2. Emphasi s on short-term profit s 3. Evaluatio n b y performance , meri t rating , o r annua l revie w o f

performance 4. Mobilit y of management 5. Runnin g a company on visible figures alon e 6. Excessiv e medical cost s 7. Excessiv e cost s o f warranty , fuele d b y lawyer s tha t wor k o n

contingency fe e

1.6.2 Paret o In 1906 , Italian economis t Vilfredo Paret o created a mathematical formul a to describe the unequal distribution o f wealth in his country, observing tha t 20% of the people owned 80% of the wealth. The 80/20 Rule means that in anything a few (20%) are vital and many (80%) are trivial. In Pareto's case it meant 20% of the people owned 80% of the wealth. In Juran's initial work he identified 20 % of the defects causing 80% of the problems. Project manager s know tha t 20% of the work (th e first 10%an d the last 10% ) consumes 80% of th e tota l tim e an d resources . Th e 80/2 0 Rul e ca n be applied t o almos t anything, from th e science of management t o the physical world.

The value of the Pareto Principle is that it reminds a manager to focus on the 20% tha t matters . O f al l the thing s don e durin g th e day , only 20 % really matters. That 20% produces 80% of the total results. Identify an d focus o n those things . I f something in the schedule has to slip, if something i s no t going to get done, make sure it is not part of that 20% (Reh 2003).

1.6.3 Crosby s Zero Defects "Zero defects" is a performance standar d introduced by Philip H. Crosby in 1979. The Crosb y process can help an organization by providing a quality management culture . Lean and Six Sigma can be effective "tools" , but a tool becomes more beneficial when it is put to work regularly To do that, a quality "culture" is needed to encourage (o r insist) tha t everyone participate in this important process (Phili p Crosby Ass. 2002).

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1 0 CONSTRUCTIO N QUALITY MANAGEMENT

1.6.4 Ishikaw a The caus e an d effec t diagra m i s th e brainchil d o f Kaor u Ishikawa , wh o pioneered quality management processes in the Kawasaki shipyards, and in the process , became on e o f the founding father s o f modern management . The cause and effect diagram is used to explore all the potential or real causes (or inputs ) tha t resul t i n a single effec t (o r output) . Cause s are arrange d according t o thei r level of importance o r detail , resulting in a depiction of relationships and hierarchy of events. This can help the search for root causes, identify area s wher e ther e ma y b e problems , an d compar e th e relativ e importance o f different causes .

1.6.5 Jura n

Joseph Juran's "qualit y trilogy " i s made up thre e components : (1 ) qualit y planning, (2 ) quality control , and (3 ) quality improvement. Thi s trilogy of quality process leads to successful framework fo r achieving quality objectives. The processes must occur in an environment of inspirational leadership and the practices must be strongly supportive o f quality. A brief descriptio n of the Juran's quality trilogy is given below.

1. Qualit y Plannin g

a. Determin e who th e customers are. b. Identif y customers ' needs. c. Develo p products with features tha t respond t o customer needs. d. Develo p system s an d processe s tha t allo w th e organizatio n t o

produce these features . e. Deplo y the plans to operational levels.

2. Qualit y Contro l

a. Asses s actual quality performance . b. Compar e performance wit h goals. c. Ac t on differences betwee n performance an d goals.

3. Qualit y Improvemen t

a. Develo p th e infrastructur e necessar y t o mak e annua l qualit y improvements.

b. Identif y specifi c area s in need o f improvement, an d implemen t improvement projects .

c. Establis h a project tea m with responsibility for completing eac h improvement project .

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INTRODUCTION TO CONSTRUCTION QUALITY MANAGEMENT 1 1

d. Provid e teams with what they need to be able to diagnose problems to determine root causes, develop situations, and establish control that will maintain gains made.

1.7 Qualit y Contro l (QC ) and Quality Assurance (QA )

Quality contro l (QC ) i s the specific implementatio n o f a quality assuranc e (QA) programme and related activities. Effective Q C reduces the possibility of changes, mistakes and omissions, which in turn resul t in fewer conflict s and disputes .

Quality assuranc e (QA ) i s a programme coverin g activitie s necessar y t o provide quality in the work t o meet the product/project requirements . QA involves establishing project related policies, procedures, standards, training, guidelines, and system necessary to produce quality. QA provides protection against quality problems through early warnings of trouble ahead. Such early warnings pla y a n importan t rol e i n th e preventio n o f both interna l an d external problems.

In practice, the two terms quality assurance and quality control are frequentl y used interchangeably, which is undesirable. Since quality control is a part of quality assurance, maintaining a clear distinction between the n i s difficul t but important . Qualit y assurance i s all the planned an d systematic action s necessary t o provid e adequat e confidenc e tha t a structure , syste m o r component will perform satisfactorily an d conform t o project requirements . On the other hand, quality control is a set of specific procedures involved in the qualit y assuranc e process . Thes e procedure s includ e planning , coordinating, developing , checking , reviewing , and schedulin g th e work . The qualit y contro l functio n i s closes t t o th e produc t i n tha t variou s techniques and activities are used to monitor th e process and to pursue th e elimination of sources that lead to unsatisfactory qualit y performance. Mos t design-related quality assurance and quality control activities are covered by a design organization's standard office procedures .

1.8 Tota l Quality Management (TQM )

The primary purpose of TQM is to achieve excellence in customer satisfactio n through continuou s improvement s o f products an d processes by the tota l involvement an d dedication o f each individual who is in any way, a part of

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that product/proces s (Ahme d 1993) . Th e principle s o f TQ M creat e th e foundation fo r developing an organization's system for planning, controlling, and improvin g quality .

TQM is a structured approac h t o improvement. I f correctly applied , i t will assist a construction compan y in improving it s performance. I t involves a strong commitmen t t o tw o guidin g principles : custome r satisfactio n an d continuous improvement . I n a study o f custome r satisfactio n factor s fo r clients o f the transportation , food , chemica l and paper , utilities and othe r miscellaneous industries , i t was found tha t timeliness , cost , quality , clien t orientation, communicatio n skills , and response t o complaints were mos t significant (Ahme d and Kangar i 1995) . Another stud y suggests tha t TQM methodology like quality function deploymen t (QFD) , provide a structured framework fo r continuous improvement and customer satisfaction (Ahme d and Kangari 1996) .

TQM philosophy will be further discusse d in Chapter 7 .

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INTRODUCTION T O CONSTRUCTION QUALIT Y MANAGEMENT

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Reh, John (2003) . "Management Guide " Legacy USA http://www.legacyusa.net/pareto.htm l

Rounds, Gerald L. and Chi, Nai-Yuan (1985), "Total Quality Management for Construction" , ASCE Journal of Construction Engineering and Management, Vol.111, No.21 .

Ho, Samuel K. M. (1998). "Change for the Better via ISO 9000 and TQM," Proceedings of 3rd International Conference on ISO 9000 and Total Quality Management (Theme: Change for Better), School of Business, Hong Kong Baptist University, Hong Kong, April 14-16 , 1998, pp. 7-14 .

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1 4 CONSTRUCTIO N QUALIT Y MANAGEMENT

Tenner, Arthur R . and Detoro , Irving J. (1992) . Total Quality Management: Three Steps to Continuous Improvement. Addison Wiley.

TQM Concept Map (2003) . http://soeweb.syr.edu/faculty/takoszal/TQM.html

Yonatan Reshef (2003) . "The Juran Trilogy" . http://courses.bus.ualberta.ca/orga432-reshef/jurantrilolgy.html

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T>EV OPINCTA COLTd^E

FORWA

One of the main emphase s of the quality management syste m is continua l improvement o f a n organization , i n particular , th e effectivenes s o f it s processes an d it s products . I n orde r t o identif y area s fo r improvement , quantitative measurement s ar e necessary . Th e tool , qualit y costin g — particularly th e constructio n proces s cos t mode l (CPCM ) discusse d i n Chapters 1 0 and 1 1 — is considered a s one o f th e qualit y improvemen t techniques whic h ca n be applied t o th e constructio n industry . However , having a correct tool to control and measure continual quality improvement is onl y th e firs t ste p toward s a successfu l implementatio n o f a qualit y management programme. There are many key factors without which a quality management system will fail. Among them, continual commitment from to p management an d employee s is described by many researchers as the mos t important facto r (Buratijr . an d Oswald 1993 ; Carlsson and Carlsson 1996 ; Low and Omar 1997 ; Mo and Cha n 1997 ; Tan 1997 ; Arditi and Gunaydi n 1998; Laszlo 1999 , Ahmed et al. 2005) . Thi s ca n be understood becaus e though a n organization ha s the best quality plan prepared by consultants , the succes s stil l depend s o n how th e organizatio n (to p managemen t an d employees) implements it. The collective attitudes and beliefs of employees towards qualit y ar e commonl y describe d a s th e qualit y cultur e o f a n organization. Therefore , th e quality management syste m and its principle s must build on a good quality culture .

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12.1 Qualit y Cultur e

Quality culture is defined as the pattern of human habits, beliefs, and behavior concerning qualit y (Gryn a 2001) . An organizatio n wit h a good "qualit y culture" i s the on e having positive and clea r habits , beliefs, and behavio r concerning quality . Thes e habits , beliefs , an d behavio r wil l manifes t themselves i n th e action s o f to p managemen t an d employees . Therefore , creating a good quality culture tha t supports quality management is vital in the implementatio n an d maintenanc e o f qualit y managemen t systems . Otherwise, as quoted fro m Cortad a and Woods (1995) , "the use of quality management technique s wil l be mechanica l an d no t likel y t o delive r th e long-term result s for customer satisfaction , mor e efficient processes , lower costs, growth, and profitability tha t it promises".

Before developing a good quality culture in the construction industry, a brief review of the existing quality culture is necessary. Due to the complexity of construction projects , the development of the existing quality culture in the construction industr y ca n b e describe d a s th e resul t o f certai n inheren t characteristics in construction projects. Rit z (1994) describes four commo n characteristics of construction project s as follows:

1. Eac h project i s unique and not repetitious . 2. A project work s agains t schedule s an d budget s t o produc e a

specific result . 3. Th e constructio n tea m cut s acros s man y organizationa l an d

functional line s tha t involv e virtually ever y departmen t i n th e company.

4. Project s come in various shapes, sizes, and complexities .

Each characteristi c abov e shape s th e qualit y cultur e o f th e constructio n industry to a certain extent. As each project is unique to the parties involved, most people wil l not be staying in one project fo r to o long a period. Thi s high mobilization o f construction staf f wil l result in shortsightedness and a lack of long-term commitment of staff towards quality in general. Moreover, the bondin g betwee n contracto r an d subcontractor s an d amon g subcontractors i s usuall y wea k du e t o th e relativel y shor t duratio n o f construction projects . Therefore , i t is rather difficul t t o create a teamwork environment on site. Construction projects usually have a prescribed scope, schedule and budget to produce a quality "product". Balancing the triangular relation betwee n th e scope , schedule an d budge t o f a project i s always a challenge faced b y management. Thoug h qualit y is generally viewed as an integral par t o f scope , budget an d schedule , it s importance ca n easil y be

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neglected du e t o the ever changing o f scope from client s and tigh t budge t and schedule resulted from the highly competitive construction market . Due to th e complexit y o f constructio n projects , th e partie s involved , subcontractors i n particular, in a particular projec t i s usually numerous. In Hong Kong , i t is not uncommon fo r a construction projec t t o have mor e than 5 0 subcontractors o n site , with mor e tha n 80 % of work i n term s of contract su m t o be subcontracted (Tan g et al. 2003) . I t i s stil l debatabl e whether multi-layer subcontracting is beneficial or adverse to the construction industry. In the context of quality management, however , its adverse effect s are obvious. First of all, it is natural fo r an individual party involved t o put its ow n interes t befor e others . As a result o f this , ther e wil l be a lack o f communication, trus t an d harmon y amon g differen t partie s an d th e atmosphere is usually confrontational an d adversarial. Moreover, multi-layer subcontracting reduces the profit margin of each party and therefore leavin g no extra resources for the implementation o f any quality initiatives. Meeting the minimum qualit y requiremen t fro m customer s become s a n accepte d culture in th e industry i n general because o f the financia l constraint . Th e complexity o f construction project s als o shapes th e quality cultur e o f th e construction industry . I n a typical construction site , it is common t o have many constructio n processe s an d activitie s goin g on simultaneously . I t is essential t o monitor and control these processes besides the final product s because th e cos t o f remedial work o f nonconforming product s i s usually very substantial. Unfortunately, i t is a common practice to inspect only the final product at different stage s of the construction due to resource constraint.

Broadly speaking, the above discussion has pointed ou t tha t th e "natural " quality cultur e existe d i n th e constructio n industr y ha s been i n constan t conflict wit h the key features o f quality management systems advocated by researchers. Chase and Federle (1992) , Abdul-Rahman (1996 ) and Tsiotra s and Gotzaman i (1996 ) als o indicated tha t one of the main reasons for th e failure o f an y qualit y managemen t initiative s wa s th e lac k o f long-ter m commitment t o qualit y fro m th e to p management . Moreover , numerou s surveys and publications (Lo w and Yeo 1997; Ahmed an d Aoieong 1998 ; Moatazed-Keivani et al. 1999; Kumaraswamy an d Dissanayaka 2000 ) hav e concluded that "fulfilling clients ' requirements", and not "improving quality", was considere d b y mos t contractor s a s one o f th e mai n motivation s fo r undertaking any quality management initiatives . As described by Kam and Tang (1998), the Hong Kong contractors were forced, by their major clients , Hong Kong Works Bureau an d Hong Kong Housing Authority, t o develo p their quality management systems based on the ISO 9000 standard. The ISO certification s o obtaine d wa s als o considere d a s a "wor k permit " t o bi d

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government projects . A s a result o f it , th e drivin g force , o r commitment , from th e to p managemen t t o review , maintai n an d improv e th e qualit y management syste m wil l soo n diminis h onc e th e certificatio n proces s i s completed. Needles s to say, the lack of incentive to do better will definitel y be reflecte d fro m th e employees ' dail y works . Onc e again , th e finding s reinstate the fact tha t the successful implementatio n o f a quality system lies on how organizations implement i t and not the system itself.

12.2 Qualit y Culture Audit

In order t o create an environment which will facilitate th e implementatio n of quality management systems, changes in quality culture are necessary. As a matter o f fact, cultura l change , whether smal l or drastic, is a prerequisite to the successful implementatio n o f any quality programme. Since differen t organizations hav e differen t cultura l pattern , i t i s essentia l fo r th e to p management t o conduct a cultural audi t fo r various levels of managemen t and work force so that the differences betwee n th e existing and the desired quality culture can be properly assessed .

The cultural audit can be conducted through carefully designed questionnaire surveys o n qualit y an d interview s with to p managemen t an d employees . The content of such surveys and interviews should include the evaluation of the value s an d attitude s o f employee s toward s quality . I n designin g th e questionnaire, the following characteristic s o f a good quality culture can be used as a benchmark (Goetsc h and Davis 2000):

1. Open , continual communicatio n 2. Mutuall y supportive internal partnership s 3. Teamwor k approach t o problems and processes 4. Obsessio n with continual improvemen t 5. Broad-base d employee involvement and empowermen t 6. Sincer e desire for customer inpu t and feedbac k

The cultural audit is an important step towards cultural change particularly in th e constructio n industr y du e t o th e fac t tha t constructio n worker' s perceptions o f qualit y i s generall y low . A n exampl e o f a n assessmen t worksheet fo r collecting information i s also provided by Goetsch and Davis (2000). With th e result s obtaine d fro m th e cultura l audi t a s baseline, to p management can properly identify th e areas for changes, access the resources required an d appl y specifi c measure s t o cultura l chang e whic h wil l b e beneficial t o the organization .

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A Chang e of Cultur e

The successful implementatio n o f quality management systems requires the creation o f a quality culture . According to Cortada an d Woods (1995) , the five values below must be presented by the top management to create a quality culture:

1. A focus on customer satisfactio n 2. A focus o n processes and thei r continual improvemen t 3. A focus o n teamwork and cooperatio n 4. A focus on openness and sharing of informatio n 5. A focus o n th e us e o f scientificall y derive d dat a fo r makin g

decisions

Similar views were shared by Laszlo (1999) and Ngowi (2000) . As a matter of fact , thes e value s ar e very muc h simila r t o th e qualit y managemen t principles on which ISO 9000 was based. When applyin g these principles , however, top management should pay more attention to the human aspect s (software) rathe r tha n jus t th e methodologie s (hardware) . Creatin g a n environment for good quality culture and developing down-to-earth practices in tun e with thes e principles ar e as important a s applying th e principles . Tarn et al. (2000) als o shared th e view that cultur e relate d factor s ar e th e most important one s affecting constructio n quality . Writing in the contex t of the construction industry, the following quality culture must be developed before th e industry can reap the benefits resulte d from th e implementatio n of quality management systems .

1. I n th e constructio n industry , user s o f th e fina l constructe d wor k ar e usually considered as customers. For a typical construction project, there may be hundreds o f processes involved fro m conceptua l desig n phas e to projec t completion . Strictl y speaking , eac h proces s owne r i s th e "customer" of the owner(s) of the preceding process(es) because process owners are internal customers within th e quality management system . If each process owner satisfies th e owner(s) o f the succeeding proces s (es) (interna l customer(s)) , the ultimate user (externa l customer) wil l be satisfied. Majo r partie s involved in the design and construction o f a project includ e engineers , projec t managers , mai n contractor , subcontractors and suppliers. In addition to completing their individual assigned work, developing a culture of satisfying thei r internal customers is the firs t ste p towards tota l customer satisfaction . Thi s is importan t particularly fo r the subcontractors o f a construction project . Generall y speaking, th e main contracto r i s the custome r o f each subcontracto r

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because of the contractual relationship. However, the culture of satisfying their internal customers is usually ignored because there is no contractual relationship betwee n subcontractors . A subcontractor (formwork , fo r example) does not treat his next subcontractor(s) (concret e and/or steel) as his customer(s). The quality of each subcontractor's work relies heavily on the main contractor's supervision and coordination because there is no incentiv e fo r subcontractor s t o perfor m bette r othe r tha n jus t satisfying the minimum requirements of the main contractor. The quality culture o f satisfyin g interna l customer s shoul d b e promote d b y th e management s o tha t a more operativ e an d harmoniou s environmen t will be created among the process owners.

2. Proces s approach and continua l improvemen t ar e two main theme s of the year 200 0 version o f ISO 9000. A description o f these theme s was given in the previous chapters. To create a culture of process approach , the meaning of process must be understood not just at top management level but also at the field level by the crews. After knowing what processes meant, fiel d crew s shoul d hav e a clea r pictur e o f thei r respectiv e processes. Moreover, it is very important fo r employees to have a basic understanding of other related processes so that the interaction between processes and the impact of one on the others can be apprehended. Fo r example, a formwork worke r ma y no t apprehen d th e reaso n wh y a missing bracing can have such an impact on both the cost and schedule of th e concret e and/o r stee l subcontractor(s ) wh o i s th e formwor k subcontractor's customer(s). The task will be more carefully execute d if he understands th e process of placing formwork an d its impact on th e process of concreting.

Improvements on processes can be made only if process owners have a thorough understandin g o f thei r respectiv e processes . Developin g a culture o f proces s approac h i s therefor e th e firs t ste p toward s th e continual improvement o f processes. Before the implementation o f any programme t o measur e processe s an d t o identif y area s fo r proces s improvement, the top management must be able to convey the purposes of making process improvement and its benefits to all employees so that there will be incentive to do so. The main purpose of making continua l improvement in processes is to increase their effectiveness an d efficienc y so as to allow the processes to become more competitive in the market . In construction, more communication between the main contractor and the subcontractor s i s encourage d s o tha t a cultur e i n seekin g improvements together in the materials and methods used for a process

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can be created. Any benefits resulted in such process improvement should be shared so that employees are motivated to continually improve thei r respective processes. Likewise, such culture should als o be develope d between the design team and the main contractor .

Since quality culture is described as the collective attitudes and belief s of employees toward s quality , i t cannot be developed withou t a focu s on teamwork and cooperation amon g the employees. In construction , adverse relationshi p ofte n exist s amon g th e desig n team , th e mai n contractor and the subcontractors due to the differences in their interests. As discussed in Chapter 1 1 on CPCM testing, subcontractors are always to blam e fo r thei r non-conformitie s t o specification s whil e mai n contractors ar e always to blame fo r thei r lack o f overall coordinatio n and control. The design teams, on the other hand, are always under th e pressure to be more considerate and practical in their design. This culture of blame always exists and th e situation ma y become worse especiall y when the project i s behind schedule or is exceeding the budgeted cost . This is harmful t o the spiri t o f the employees . I n general , employee s will work wit h a teamwork spiri t an d i n a cooperative manne r onl y when ther e ar e tangibl e benefit s suc h a s bonu s sharin g fo r earl y completion or rewards for excellent performance. Otherwise , it is rather difficult t o develop a culture o f teamwork and cooperation because of the tight schedule and budget o f construction projects .

Organizations tha t promot e opennes s t o change s an d sharin g o f information ofte n exhibi t goo d qualit y culture . Unfortunately , thes e characteristics are rarely found i n the construction industry due to the high competitiveness among the different parties involved in construction projects. With the current information technology , it is not difficul t fo r designers, main contractors and subcontractors t o share information i n various area s suc h a s constructio n technology , standar d detailing , material and equipment quotation s an d constructability . Thi s sharin g of information amon g the different partie s may be able to reduce some duplicating work s an d therefor e resul t i n a lower tota l desig n an d construction costs . In the manufacturing industry , this cultural chang e in information sharin g between departments of an organization may be spontaneous because employees can anticipate the result of such change — cost reduction . I n construction , however , projec t participant s ar e often reluctan t t o shar e sensitiv e informatio n becaus e th e saving s resulted, i f any , could en d u p i n thei r competitors ' pockets . Sharin g experiences in non-conformances o f works is even more difficul t a s it

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will expose the incapacity of the parties involved and may result in higher cost of rework. Moreover, information shoul d be shared not just amon g the project participants but also the researchers in the industry Obtainin g information fro m constructio n companie s i s very ofte n difficul t fo r researchers with no connections and as a result, many research project s have to be abandoned. I n order t o make advancement i n various areas (such as quality, safety, environmental , tenderin g and scheduling) , th e industry must be more open in information sharin g and be able to work in collaboration with researchers. Develop a good culture of information sharing between projec t participant s i s often difficul t becaus e o f th e conflicting interest s existed. However, the concept of project partnerin g may provide a natural environment t o develop such culture .

5. On e of the most important elements in management is decision making. In order t o minimize fault s an d ineffectiveness i n the decision-makin g process, i t i s imperativ e tha t decision s mad e b y differen t level s o f management are based on the analysis of data and information. In general, with th e hel p o f many well-established methodologie s an d softwar e available in th e market , importan t decision s i n construction (suc h a s tendering, budgeting, scheduling and controlling) ar e commonly made based on scientifically derive d data . However, the culture of collecting and analyzin g non-conformanc e dat a ha s ye t t o be developed i n th e construction industry . I n construction , th e collectio n o f non -conformance dat a is not common and is limited to certain constructio n processes for which inspections are performed. Suc h non-conformanc e data collection should be extended t o cover other areas such as design and procurement. On the other hand, the collection of non-conformanc e data usuall y create s negative feedbac k fro m sit e workers because th e data obtaine d fro m suc h i s usually used onl y fo r finger-pointin g an d corrective actions . In orde r t o develop a good qualit y cultur e o f non -conformance dat a collection , th e purpose mus t be made known t o all staff s o tha t a more positive view on i t can be created. I n general , th e construction industry views the collection of non-conformance dat a as a fulfillment o f the requiremen t o f quality managemen t system s an d seldom use s th e dat a s o obtained fo r analysis . Top management staf f should bear in mind tha t the collection of non-conformance dat a is the first step to continual improvement. Without the non-conformance dat a collection and analysis, the areas for improvement would be difficult t o identify an d therefor e continua l proces s improvemen t i s difficul t t o achieve. Instead o f just penalizing the staff fo r thei r wrongdoings afte r collecting non-conformance data , they should be educated and reminded that such data is beneficial t o the organization a s a whole.

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Top Management Commitmen t

In addition to cultural changes, the commitment fro m th e top managemen t is generally considered by the industry as an indispensable prerequisite fo r the successful implementatio n o f any quality initiatives. The quality cultur e discussed in the previous paragraphs canno t be developed without th e ful l support fro m to p management . Beside s financia l support , persona l involvement fro m to p management i s essential. Top management mus t be involved because they are the ones who create the environment to which all other employees will adapt (Cortada and Woods 1995) . Low (1998), Serpell (1999) and Lo (2002) also concluded tha t the lack of involvement from to p management was one of the major difficultie s encountere d b y contractors . Top management must have a proper attitude towards quality accompanie d by behaviours before employees can be transformed an d are motivated to do the same. Moreover, motivational activities such as rewarding and recognizing employees for thei r contribution t o the successful developmen t o f qualit y culture are also essential. In construction, thes e incentive activities are rare and th e cultur e o f reward s an d recognitio n ha s ye t t o b e developed , particularly a t the site level.

Top management must not view the implementation of a quality management system as an end to quality initiative. On the contrary, it is only a first ste p towards th e everlastin g proces s o f continua l improvement . A successfu l implementation o f a quality management system of an organization canno t always guarantee good quality products. Developing a good quality cultur e should be a correct and essential step.

As a brief recapitulation , th e rol e o f CPC M i s illustrated i n Figur e 12.1 . Quality assurance (many existing quality management systems) can only be considered as a stepping-stone for an organization to implement Total Quality Management. As the emphases of the year 2000 edition of ISO 9000 moved closer to the principles of TQM, continual improvement o f an organizatio n and it s processe s ar e mentioned i n man y part s o f th e standard . Specifi c guidelines fo r performanc e improvemen t ar e also given i n th e year 200 0 edition o f th e standar d IS O 9004 . While muc h attentio n i s paid t o th e measurement, analysis and improvement o f processes, specific requiremen t on the cultural aspect is also mentioned in the standard. To achieve continual improvement, ISO 9000:2000 requires the management to develop both the software (culture ) and the hardware (structure) for the improvement process. Clause 8.5. 4 recognize s th e importance o f creating a culture a s an ai d t o ensure the future o f an organization and the satisfaction o f interested parties.

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Legend:

ISO 9001:2000 Claus e 8.5.1 :

1. Th e organizatio n shal l continuall y improv e the effectiveness o f th e

QMS throug h th e us e of the qualit y policy , qualit y objectives , audi t

results, analysi s o f data , correctiv e an d preventiv e action s an d

management review .

ISO 9004:2000 Claus e 8.5.4 :

2 managemen t shoul d creat e a culture whic h involve s peopl e

actively seekin g opportunitie s fo r improvemen t o f performanc e i n

processes, activities an d products .

3. T o provide a structure fo r improvemen t activities , top managemen t

should define and implement a process for continual improvemen t

4. Input s to suppor t the improvemen t proces s includ e

5. Financia l data as one of the examples o f inputs .

Figure 12.1 Th e rol e o f CPCM i n quality managemen t

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Developing a qualit y cultur e a s th e wa y forwar d 1 9 5

In the identification o f processes for improvement, financial data is considered as one of the important input from which information i s derived. While the previous edition of ISO 9004 offered thre e models (PAF model, PCM model and Quality-loss model) fo r collecting and reporting financial data , the year 2000 edition hasn't called out any specific model . After comparin g differen t models proposed by researchers together with feedback from interviews and pilot tests , it can be concluded tha t CPCM is an effective an d practical too l for th e constructio n industr y t o provide financia l dat a fo r th e purpose o f continual improvement o f processes. The CPCM approach o f quality cost s will play an important role in construction related organizations seeking to improve thei r products in the highly competitive market .

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Ahmed, S.M. and Aoieong, R. (1998). "Analysis of Quality Management Systems in the Hong Kong Construction Industry" , Proceedings of the 1st South African International Conference on Total Quality Management in Construction, Cape Town, South Africa, pp.37-49 .

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Goetsch, Davi d L . and Davis , Stanley B. (2000). Quality Management Introduction to Total Quality Management for Production, Processing, and Services. 3rd Ed., Pearson Education Inc., New Jersey, USA, p. 165.

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CONSTRUCTION QUALIT Y MANAGEMENT

Hong Kong experience". Proceedings of the 2nd International Conference on Construction Project Management, Nanyang Techonological University , Singapore, February 19-20 , 1998, pp.479-483.

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ABOUT THE

AUTHORS

S.L Tan g S.L. Tan g is a faculty membe r i n th e Departmen t o f Civi l an d Structura l Engineering o f th e Hon g Kong Polytechnic Universit y H e is a Chartere d Civil Engineer and obtained has B.Sc. in Civil Engineering from the University of Hong Kong in 1972, M.Sc. in Construction Engineering from the National University o f Singapor e i n 1977 , and Ph.D . fro m th e Civi l Engineerin g Department o f Loughborough University , U.K. in 1989 . Dr. Tang had abou t seven years of working experience in civil engineering practice in contracting/ consulting firm s an d governmen t department s befor e h e joined th e Hon g Kong Polytechnic University H e is currently involved i n th e teaching an d research o f constructio n management , an d wate r an d environmenta l management, and has written over one hundred journal/conference paper s and books related to his area of expertise.

Syed M. Ahme d

Syed M. Ahmed is a faculty membe r and Graduate Program Directo r in th e Department o f Construction Managemen t (Colleg e o f Engineering) a t th e Florida International University in Miami, Florida USA, since December 1999. Prior t o thi s h e wa s lecturin g i n th e Departmen t o f Civi l & Structura l Engineering o f the Hong Kong Polytechnic University fo r ove r four years . He has a B.Sc. (Hons. ) degre e in Civi l Engineering fro m th e University of Engineering & Technology, Lahore Pakistan and M.S. and Ph.D. degrees in Civil Engineering from the Georgia Institute of Technology, Atlanta, Georgia USA. Dr. Ahmed's research interes t i s in the areas of project management , construction safety , qualit y assuranc e an d tota l qualit y managemen t i n construction, risk analysis and risk management, construction procurement , information technology , an d engineerin g an d constructio n education . H e has publishe d ove r 7 0 paper s i n referee d internationa l journal s an d

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1 98 CONSTRUCTIO N QUALITY MANAGEMENT

conferences s o far. He is also a reviewer for six international journals in the field o f constructio n engineerin g an d management . Dr . Ahme d ha s approximately eight years of construction industry experience, working with owners, consultants, and contractors. He is a member of the American Society of Civi l Engineer s (ASCE) , an d th e UNESC O Internationa l Centr e fo r Engineering Education (UICEE ) based at Monash University in Melbourne Australia. Dr. Ahmed has successfully supervised three Ph.D. theses and eight M.Sc. dissertations.

Raymond T. Aoieong Raymond T . Aoieong i s a faculty membe r i n th e Departmen t o f Civi l an d Environmental Engineerin g a t the University of Macau. He obtained hi s B. Sc. and M.Sc . in Civi l Engineering fro m th e University o f Ottawa . Befor e joining th e University o f Macau, he worked fo r consultin g firms i n Canad a as structural enginee r fo r ove r fiv e years . He received hi s Ph.D . from th e Hong Kong Polytechnic University in 2004 working on the topic "Capturin g Quality Costs of Construction Processes using the Construction Process Cost Model". Dr Aoieong is a registered professiona l enginee r i n Canad a an d a member o f the American Society of Civil Engineers.

S.W. Poo n S.W. Poo n i s a facult y membe r i n th e Departmen t o f Rea l Estat e an d Construction at the University of Hong Kong. Before joining the department, he taugh t a t th e Nationa l Universit y o f Singapor e an d th e Hon g Kon g Polytechnic University He is a Chartered Structural Engineer and a Corporate Member o f the Hong Kong Institution o f Engineers. He obtained hi s M.Sc. in Constructio n an d Ph D fro m Loughboroug h University , U.K . Dr . Poo n was the Chairma n (2000/2001 ) o f the Safety Specialis t Grou p o f the Hong Kong Institution of Engineers and has been a Senior Member of Professiona l Committee o f Construction Safety , th e China Association o f Constructio n Industry, i n Beijin g sinc e 2000 . He has been appointe d b y th e Lega l Aid Department an d othe r la w firm s a s a n independen t safet y exper t i n investigating constructio n accident s an d failures . Hi s researc h interest s include construction and project management , temporary works design and construction, and failures during construction. He has published many papers on construction safety and accidents. He is a co-author of a self-study package of Project Management published by the Hong Kong Polytechnic University and the book entitled Modern Construction Project Management published by Hong Kong University Press.