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IMPLEMENTATION OF QUALITY MANAGEMENT SYSTEM IN AN IRRIGATION PROJECT: A CASE STUDY
A THESIS SUBMITTED TO THE GRADUATE SCHOOL OF NATURAL AND APPLIED SCIENCES
OF MIDDLE EAST TECHNICAL UNIVERSITY
BY
N. B�RKAN DEDEKL�
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR
THE DEGREE OF MASTER OF SCIENCE IN
CIVIL ENGINEERING
JANUARY 2005
Approval of the Graduate School of Natural and Applied Science
Prof. Dr. Canan Özgen
Director
I certify that this thesis satisfies all the requirements as a thesis for the degree of Master of Science.
Prof. Dr. Erdal Çokça Head of Department
This is to certify that we have read this thesis and that in our opinion it is fully adequate, in scope and quality, as a thesis for the degree of Master of Science.
Prof. Dr. A. Melih Yanmaz Supervisor
Examining Committee Members Prof. Dr. Talat Birgönül (METU, CE)
Prof. Dr. Melih Yanmaz (METU, CE)
Assoc. Prof. Dr. Nuri Merzi (METU, CE)
Assist. Prof. Dr. �ahnaz Ti�rek (METU, CE)
Engin Günindi, M.S. (DOLSAR)
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I hereby declare that all information in this document has been obtained and presented in accordance with academic rules and ethical conduct. I also declare that, as required by these rules and conduct, I have fully cited and referenced all material and results that are not original to this work. Name, Last name : N. Birkan DEDEKL�
Signature :
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ABSTRACT
IMPLEMENTATION OF QUALITY MANAGEMENT SYSTEM IN AN IRRIGATION PROJECT: A CASE STUDY
Dedekli, N. Birkan
M.S., Department of Civil Engineering
Supervisor : Prof. Dr. A.Melih Yanmaz
January 2005, 119 Pages
There is a growing tendency in the application of the quality management system to
the construction industry. Within this perspective, some quality management
standards, like ISO 9001, are utilized to assure the quality in projects. Application of
this system to water resources projects is also of importance since they are very
large systems having various components for which quality management would
improve the overall efficiency. The aim of this thesis is to examine the
implementation of the quality management in the design and construction processes
of a sample irrigation network in order to evaluate its benefits by the cost of quality,
which is assumed to be the most effective performance measure. To this end, the
prevention and appraisal costs and failure costs, which constitute the cost of quality,
are identified separately and their interactions are investigated on a case study in
which the causes of these failures are analyzed and quantified in the form of graphs.
Keywords: Quality, Quality Management, ISO 9001, Cost of Quality
v
ÖZ
KAL�TE YÖNET�M S�STEM�N�N B�R SULAMA PROJES�NDE UYGULANMASI: ÖRNEK OLAY �NCELEMES�
Dedekli, N. Birkan
Yüksek Lisans, �n�aat Mühendisli�i Bölümü
Tez Yöneticisi : Prof. Dr. A. Melih Yanmaz
Ocak 2005, 119 Sayfa
Kalite yönetim sisteminin in�aat sanayinde uygulanması üzerine artan bir e�ilim
görülmektedir. Bunun neticesinde, projelerde kaliteyi temin edebilmek için ISO 9001
gibi bir takım kalite yönetim standartlarından faydalanılmaktadır. Çe�itli bile�enleri ile
çok büyük sistemlere sahip su kaynakları projelerinde bu sistemin uygulanması ise
elde edilecek verimi arttırma olana�ı sa�layaca�ından ayrı bir önem ta�ımaktadır.
Bu tezin amacı kalite yönetiminin örnek bir sulama �ebekesinin tasarım ve in�aat
a�amalarında uygulanmasını inceleyerek, getirilerini en etkili kalite ölçüm aracı
olarak kabul gören kalite maliyeti ile de�erlendirebilmektir. Bunun için kalite
maliyetini olu�turan hatayı önleme ve tesbit maliyetleri ile hatanın maliyetleri ayrı
ayrı tanımlanmı� ve bunların birbirleriyle olan ili�kileri, bu hataların analiz edildi�i ve
grafiksel olarak nicelendi�i bir örnek uygulama ile ara�tırılmı�tır.
Anahtar Kelimeler: Kalite, Kalite Yönetimi, ISO 9001, Kalite Maliyeti
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ACKNOWLEDGEMENTS
The author wishes to express his deepest gratitude to his supervisor Prof. Dr.
A. Melih Yanmaz for his guidance, advice, criticism, encouragements and insight
througout this study.
The encouragement and comments of Mr.Gürkan Dedekli and Ms.Ye�im Ökmen are
gratefully acknowledged. Special thanks go to the parents of the author for their
encouragements.
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TABLE OF CONTENTS
PLAGIARISM……………......................................................................................iii
ABSTRACT……………........................................................................................iv
ÖZ.……………......................................................................................................v
ACKNOWLEDGEMENTS……………...................................................................vi
TABLE OF CONTENTS.......................................................................................vii
LIST OF TABLES..................................................................................................x
LIST OF FIGURES..............................................................................................xii
LIST OF SYMBOLS AND ABBREVIATIONS…....…………………………..……xiii
CHAPTER
1 INTRODUCTION………...…………………………………….......……………..1
2 QUALITY MANAGEMENT IN CONSTRUCTION…...…………………..........4
2.1 HISTORY OF QUALITY……………………………………...……..........4
2.2 DEFINITIONS RELATED TO QUALITY…...…………………...……....5
2.3 WHY QUALITY MANAGEMENT?.......................................................8
2.4 THE STANDARD OF ISO FOR THE QUALITY MANAGEMENT……9
2.4.1 General Requirements……..……….……………………………….9
2.4.2 Developments of Quality Management Standard………...….…12
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2.5 QUALITY CONTROL SYSTEM IN CONSTRUCTION PROJECTS..15
2.5.1 Quality System Procedure………...………………….…………...15
2.5.2 Contract Review Procedure…………………………………….....15
2.5.3 Design Control Procedure………………….……………...………16
2.5.4 Documet and Data Control Procedure………………………...…20
2.5.5 Purchasing Procedure……………………………………..………20
2.5.6 Control of Employer Supplied Product Procedure…………..….20
2.5.7 Process Control Procedure…………………………………..…...21
2.5.8 Inspection and Testing Procedure……………………...………...21
2.5.9 Control of Nonconforming Product Procedure……………..…...21
2.5.10 Corrective and Preventive Actions Procedure………...……….22
2.5.11 Handling, Storage, and Delivery Procedure……………….......22
2.5.12 Quality Records Procedure……………………………………...22
2.5.13 Internal Quality Audits Procedure……………………………….23
2.5.14 Training Procedure……………………..………………………...23
2.5.15 Calibration Procedure………………………………………...…..24
2.5.16 Maintenance Procedure…………………………………...……..24
2.5.17 Communication Procedure…………………………………...….25
2.5.18 Assessment of Supplier Procedure…………………………......25
3 COST OF QUALITY…………………………………………………………26
3.1 THE CONCEPT OF COST OF QUALITY…………..………………...26
3.2 CATEGORIES OF COST OF QUALITY……………………...……….27
3.2.1 Prevention Costs………………………………………………..….27
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3.2.2 Appraisal Costs………………………………………..…………...28
3.2.3 Internal Failure Costs………………………...…………………….28
3.2.4 External Failure Costs……………………..………………………29
3.3 THE STUDY FOR COST OF QUALITY………………………...……..29
3.3.1 Obtaining The Cost Data……………………………………..…...31
3.3.2 Economic Model of Quality of Conformance…………..………..32
4 DESCRIPTION OF THE IRRIGATION PROJECT…………………..…….34
4.1 GENERAL CONDITIONS…………………………………………...…..34
4.2 DESIGN CRITERIA OF THE PROJECT……………………......…….38
4.3 ORGANIZATION………………………………………………………....41
5 CASE STUDY…………………………………………………………...……..43
5.1 FAILURE COSTS ANALYSIS…………………..……………………...43
5.1.1 Nonconformances at Design Activities…………..………………44
5.1.2 Nonconformances at Construction Activities……………..……..50
5.2 PREVENTION AND APPRAISAL COSTS ANALYSIS……………..63
5.3 DISCUSSION OF RESULTS…………………………………...………69
6 CONCLUSIONS……………………………………………………...………..73
REFERENCES…………………...………………………………………………75
APPENDICES: TABLES OF COST CALCULATIONS…...…………..….….77
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LIST OF TABLES
TABLES Table 4.1 Distribution of the Canalet Types ............................................................36 Table 4.2 Supplied Discharges according to the Main Canalets..............................41 Table A.1 Calculations of Monthly/ Daily Overheads in the Construction Site .........78 Table A.2 Calculations of Monthly/ Daily Overheads in the Design Office...............79 Table A.3 Cost Calculations for Design Non-Conformance 1 - (DNC-1)..................80 Table A.4 Cost Calculations of Replacing Canalets for Design Non-Conformance 2 - (DNC-2) ...............................................................................................81 Table A.5 Cost Calculations of Redesign & Delays for Design Non-Conformance 2 - (DNC-2) ...............................................................................................82 Table A.6 Cost Calculations for Design Non-Conformance 3 - (DNC-3)..................83 Table A.7 Cost Calculations for Design Non-Conformance 4 - (DNC-4)..................84 Table A.8 Cost Calculations for Design Non-Conformance 5 - (DNC-5)..................85 Table A.9 Cost Calculations for Design Non-Conformance 6 - (DNC-6)..................86 Table A.10 Cost Calculations for Design Non-Conformance 7 - (DNC-7)................87 Table A.11 Cost Calculations for Design Non-Conformance 8 - (DNC-8)................89 Table A.12 Cost Calculations for Material Non-Conformance 1 - (MNC-1)..............90 Table A.13 Cost Calculations for Material Non-Conformance 2 - (MNC-2)..............91 Table A.14 Cost Calculations for Material Non-Conformance 3 - (MNC-3)..............92 Table A.15 Cost Calculations for Material Non-Conformance 4 - (MNC-4)..............93 Table A.16 Cost Calculations for Material Non-Conformance 5 - (MNC-5)..............94 Table A.17 Cost Calculations for Material Non-Conformance 6 - (MNC-6)..............96
Table A.18 Cost Calculations of Reworks for Civil Works Non-Conformance 1 - (CNC-1) ..............................................................................................97
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Table A.19 Cost Calculations of Delays for Civil Works Non-Conformance 1 - (CNC-1) ..............................................................................................99 Table A.20 Quantity Calculations for Civil Works Non-Conformance 2 - (CNC-2) .100 Table A.21 Cost Calculations for Civil Works Non-Conformance 2 - (CNC-2) .......101 Table A.22 Quantity Calculations for Civil Works Non-Conformance 4 - (CNC-4) .102 Table A.23 Cost Calculations for Civil Works Non-Conformance 4 - (CNC-4) .......103 Table A.24 Quantity Calculations for Civil Works Non-Conformance 5 - (CNC-5) .104 Table A.25 Cost Calculations for Civil Works Non-Conformance 5 - (CNC-5) .......105 Table A.26 Quantity Calculations for Civil Works Non-Conformance 6 - (CNC-6) .106 Table A.27 Cost Calculations for Civil Works Non-Conformance 6 - (CNC-6) .......107 Table A.28 Cost Calculations for Civil Works Non-Conformance 7 - (CNC-7) .......108 Table A.29 Cost Calculations for Civil Works Non-Conformance 8 - (CNC-8) .......109 Table A.30 Cost Calculations for Civil Works Non-Conformance 9 - (CNC-9) .......110 Table A.31 Summary of the Failure Costs ($) .......................................................112 Table A.32 Cost Calculations for Preventive Training ...........................................113 Table A.33 Cost Calculations for Preventive Maintenance....................................114 Table A.34 Cost Calculations for Calibration.........................................................115 Table A.35 Cost Calculations for Preventive Communication................................115 Table A.36 Cost Calculations for Supplier Quality Evaluation ...............................116 Table A.37 Cost Calculations for Internal Quality Audits .......................................117 Table A.38 Summary of the Prevention and Appraisal Costs ($)...........................118 Table A.39 Total Quality Costs ($) ........................................................................119
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LIST OF FIGURES
FIGURES Figure 2.1 Plan–Do–Check–Act Methodology..........................................................6 Figure 2.2 Quality Management System Model .......................................................9 Figure 2.3 Process-based Management System to Control Quality .......................13 Figure 3.1 Cost of Quality Decision Flowchart ........................................................30 Figure 3.2 Model for Quality Costs..........................................................................32 Figure 4.1 General Layout of The Irrigation Network...............................................35 Figure 5.1 P2-Y14-1 Dividing Structure...................................................................56 Figure 5.2 Outlet Structure of The Siphon on P2-Y3 ...............................................59 Figure 5.3 Siphon on P2 Main Canalet ...................................................................60 Figure 5.4 Inlet Structure of The Chute on P2-Y5 ...................................................62 Figure 5.5 Cost versus Quality................................................................................70 Figure 5.6 Design and Construction Failure Cost versus Quality ............................71 Figure 5.7 Internal and External Failure Cost versus Quality ..................................72
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LIST OF SYMBOLS AND ABBREVIATIONS
Q : Canalet Capacity (lt/s)
A : Irrigable Land (ha)
F : Flexibility Coefficient
qmax : Irrigation Modulus
L : Length
Ø : Diameter
USD/ $ : United States dollar
ISO : International Organization for Standardization
n : Yearly Work Time of the Construction Equipment (hours)
N : Purchasing Price of the New Equipment
DNC : Design Non-Conformance
MNC : Material Non-Conformance
CNC : Civil Works Non-Conformance
HDPE : High Density Polyethylene
PDCA : Plan-Do-Check-Act
TQC : Total Quality Costs
QCC : Quality Control Costs
FC : Failure Costs
IFC : Internal Failure Costs
EFC : External Failure Costs
PC : Prevention Costs
AC : Appraisal Costs
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CHAPTER 1
INTRODUCTION
A survey conducted on quality of construction by the International Federation of
Consulting Engineers (FIDIC, 2004) within member associations confirmed that
failure to achieve appropriate quality of construction is a problem worldwide. The
pressure to reduce the initial costs of construction and supervision were found to
have an adverse effect on quality. The problem is serious and is evident in both
developed and developing countries. For example, Construction Industry Institute
(CII, 1989) stated that deficiency in maintaining quality costed the U.S. construction
industry over $15 billion annually in rework expenses alone. Additional costs for
other quality failures may bring the total cost to more than twice that amount.
Lack of quality in construction is manifested in poor or non-sustainable
workmanship, unsafe structures, delays in construction, cost overruns, and disputes
in construction contracts.
It is believed that construction should be sustainable, and each organization in the
construction process should satisfy the obligations in respect to achieving quality of
construction. Therefore, adopting a quality management approach towards projects
and construction is of importance for the construction industry and its parties.
According to the Executive Committee of FIDIC (2004), the necessary actions to be
taken by these parties are:
• to recognise the importance of quality of construction;
• to adopt quality management systems;
• to provide procedures for corrective action when quality control and /or acceptance criteria are not met;
• to provide feedback to the other parties (consultants, contractors, designers, clients, etc.) for improvement of quality of construction;
• to recruit, train, and assign a skilled work force;
• to take measures to ensure that subcontractors are qualified, and/or licensed as required.
2
To solve the problem, the construction industry embraced the ISO 9001 (ISO, 2000),
Quality Management Standard of the International Organization for Standardization.
The Quality Management Standard has become the benchmark for successful
construction companies. The discipline and systematic approach helped many
companies to structure their management and processes to consistently meet the
client’s requirements.
After the related literature on the quality management implementation over an
irrigation project was reviewed, it became evident that the contractor had net
benefits as cost and time dependent and improved its performance for the further
construction projects. Thus, the major objectives of this study are to investigate the
effects of quality management over a sample irrigation project and to obtain a
relationship for quality costs.
In Chapter 2, the quality concept and related definitions to quality are examined in
the view of quality management standard. As a quality management standard, the
world’s most popular standard of International Organization for Standardization, ISO
9001, is utilized. The general principles are explained by giving application aspects
in construction industry.
The concept of quality cost is introduced in Chapter 3. The categories and examples
of typical subcategories of quality cost are discussed. The distribution of quality
costs over the major categories is further explored using a model, developed by the
primary authorities of quality management, such as Juran and Gryna (1988) and
Besterfield (2004). The main elements of the model are given by defining the
nonconformance and conformance items to the requirements. The approaches,
used for collecting data in the cost study, are presented for the construction of the
model.
Chapter 4 describes the characteristics and scope of the irrigation project used in
the case study. The general conditions of the project and the contract, made
between the contractor and the employer, are summarized. The constructional
details and the design criteria of the project used in the hydraulic calculations are
demonstrated to give the reader a view over the project. The organization
3
undertaking the design and construction activities is introduced with the
assignments of responsibilities in the quality management system.
The quality cost concept in the irrigation project is studied as a case study in
Chapter 5. Being a design-and-construct project, the nonconformances are
examined in both processes. The costs and expenses of these nonconformances
are calculated and evaluated as failure costs of the model. The preventive and
appraisal activities are mentioned to carry out the requirements of quality
management system, supported by the related procedures of the standard. The
costs of these activities are also evaluated to complete the model. By getting the
total quality costs, the model is obtained to demonstrate the benefits of the quality
management, including the economic conformance level.
Chapter 6 presents the conclusions and recommendations for future studies. In this
chapter, quality management is indicated one of the most important parts of the
construction industry. The idea of “construction costs increase as activities related to
quality assurance increase” is pointed at a common misleading evaluation. The
importance of the quality improvement in the quality control activities is highlighted
and a methodology, developed by Deming (1986) called as PDCA, is proposed to
improve the quality in the construction industry.
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CHAPTER 2
QUALITY MANAGEMENT IN CONSTRUCTION
2.1 HISTORY OF QUALITY
The concept of quality of goods or services is not new for human being. Throughout
the history, society has demanded that providers of goods or services should meet
their obligations. Dated back to 1780 BC, King Hammurabi of Babylon introduced
the concept of product quality and liability into the building industry of the time by
declaring (Horne, 1998):
“………if a builder build a house for some one, and does not construct it properly,
and the house which he built fall in and kill its owner, then that builder shall be put to
death. If it kill the son of the owner the son of that builder shall be put to death.“
During the middle ages many of the guilds of craftsmen were established to
guarantee the quality of workmanship and to define the standards to be expected by
the purchaser. During the industrial revolution, many of the technological advances,
such as development of the steam engine, were made possible through
developments in metrology and the standardization of engineering components,
such as screw threads.
The advent of mass production during the twentieth century increased the demands
on the control of product quality. During the 1940s and 1950s, the techniques of
quality control became an increasingly important aspect of business management
as organizations sought to gain competitive advantage and reduced costs through
the inspection of product quality. The success of Japanese manufacturers during the
1960s and 1970s changed the emphasis from a quality control approach to a quality
assurance approach requiring more of the business functions to be involved in the
management of quality and requiring longer implementation timescales. Finally the
fierce international competition for goods and services during the 1980s and 1990s
has led to a “total” approach to quality management whereby everyone in
5
organization is involved in developing an improvement and prevention orientation
which focuses upon the employer through teamwork.
2.2 DEFINITIONS RELATED TO QUALITY
Quality can be defined as the totality of features and characteristic of a service or
material that bear on its ability to meet the stated or implied needs and expectations
of a product and/or project at the right time and at the first time. A brief definition for
quality can be given also as conformance to requirements.
Quality management is the process required to ensure a project that will satisfy the
needs and objectives for which it was undertaken, consisting of planning,
assurance, control, and improvement of quality. It uses a systematic set of activities
to ensure that processes create products with maximum quality at minimum cost.
Quality control is the managerial process during which actual process performance
is evaluated and actions are taken on unusual performance. It is a process to
ensure whether a product meets predefined standards and requisite action taken if
the standards are not met. Quality control measures both products and processes
for conformance to quality requirements (including both the specific requirements
prescribed by the product specification, and the more general requirements
prescribed by quality assurance); identifies acceptable limits for significant quality
attributes; identifies whether products and processes fall within those limits (conform
to requirements) or fall outside them (exhibit defects); and reports accordingly.
Quality assurance is a planned and systematic set of activities to ensure that
variances in processes are clearly identified, assessed and improving defined
processes for fullfilling the requirements of employers and product or service
makers.
Quality improvement is a systematic and continuous activity to improve all
processes and systems in the organization to achieve optimal level of performance.
The Deming Cycle (Deming, 1986) is especially useful in improving the quality. This
cycle denotes continuous improvement by repeating the basic cycle of planning,
6
doing, checking, and acting and is also known as Plan-Do-Check-Act (PDCA)
Methodology.
The methodology as illustrated in Figure 2.1 proposes that first, one has to plan the
process improvement approach, then perform planned work, check whether the
improvements are working, and then act to modify the process based on the lessons
learned. These steps are repeated until the desired results are achieved. PDCA is a
part of the overall quality management system and also the ISO 9001 (2000)
Standard refers to the PDCA methodology as the means for implementing all
required processes from the high-level strategic processes to the product realization
and other quality management system processes.
Mutafelija and Stromberg (2003) give the four major steps of the PDCA as follows:
Plan: Identify the failure by:
• selecting failures to be analyzed and establishing a precise failure statement;
• setting measurable goals for the problem solving effort.
Analyzing the failure by:
• identifying the processes that impact the failure and select one;
• identifying potential cause of the failure;
• collecting and analyzing data related to the failure;
• identifying root cause of the problem.
ACT PLAN
DO CHECK
Figure 2.1 - Plan–Do–Check–Act Methodology (Deming, 1986)
7
Do: Develop solutions by:
• establishing criteria for selecting a solution;
• generating potential solutions that address the root cause of the failure;
• selecting a solution and planning the solution implementation.
Implementing a solution by:
• implementing the chosen solution on a trial or pilot basis.
Check: Evaluate the results by:
• gathering data on the solution;
• analyzing data on the solution.
Act: Determine next steps by:
• repeating the PDCA Cycle, if the desired goal was not achieved;
• identifying systematic changes needed for full implementation, if the goal was
achieved;
• adopting the solution and monitoring the results;
• looking for the next improvement opportunity.
Quality system is the organizational structure, responsibilities, procedures,
processes, and resources for implementing quality management. Beecroft (2001)
indicates that the emergence of the quality system-based approach to the
management of quality led to the need for a generalized standard for assessing
such quality systems which provided:
• a general framework for assessing an organization’s quality system
• a structure that is applicable to all organizations, from production to service, from
large to small
• an independently verifiable, internationally accepted systems checklist.
The process mentioned herein means one event or succession of events in which
people, tools, material, and/or enviroment act in concert to perform an operation.
The processes can be grouped as main processes and subprocesses. For example,
design stage is a main process whereas surveying activities are subprocesses. In
this study, the word of process is used for each of the activities, like surveying,
8
concreting, installation of structural units, incoming material verification, delivery,
etc.
2.3 WHY QUALITY MANAGEMENT?
In many companies the top priority before 1980’s was not on quality, but it was on
cost, benefits or other parameters. Then, the emerging forces required raising the
priority given to quality, which are global competition, technological change, social
forces, and work ethic. So, managerial decisions must give equal considerations to
quality as well as to aspects of others.
Assuming these companies are looking for the basic ability to meet the employer
demands and the global world requirements, the quality management seems to fit
the need for qualification of companies.
Quality management seems to be based on the idea of inspecting the production
processes and the workers, instead of the product itself.
The most important benefit of quality management is driving continuous
improvement and contributes to improvement in profit through better efficiency and
waste reduction. Also, there are other considerable benefits of the quality
management given by CIF (2004), Construction Industry Federation, like;
• consistent and effective control of key processes and project management • promotion and standardisation of good working practices • provision of a vehicle for training new employees • effective management of risk and reducing crisis management • more effective data analysis, generation of key performance metrics and
continual improvement objectives • greater emphasis on communication, leadership, change management and
adequacy of training • a planning and review process which will ensure that the system in place
remains suitable , effective and capable of identifying new opportunities • effective remote site management, accountability and contractual control
9
• promoting control of suppliers and subcontractors and the development of effective supply chain management
• world-wide recognition.
2.4 THE STANDARD OF ISO FOR THE QUALITY MANAGEMENT (ISO 9001)
2.4.1 General Requirements
In the following sections, five essential parts of ISO 9001 Standard are presented. In
December 2000, a revised version of the ISO 9001 Standard was issued after
several years of worldwide rewrites, ballots, and approvals. The standard is based
on a set of quality management principles, like employer focus, involvement of
people, process approach, and continual improvement. No single principle will
ensure the success. On the basis of these principles, the standard covers the
minimum requirements in five parts to implement the quality management, which are
presented and discussed in the following sections. These requirements must all be
satisified in a cooperation to get the benefits of the standard as shown in Figure 2.2.
The figure also reveals the importance of the employer focus for an effective quality
management (Pereda, 2000).
Figure 2.2- Quality Management System Model (Pereda, 2000)
Voice of the
Employer
Product Realization
Management responsibility
Resource Management
Measurement, analysis and improvement
Requirements Product
Employer Satisfaction
10
Quality Management System (QMS): ISO defines the QMS as a set of interrelated
and interacting processes. Section 4 of the Standard contains the essential
requirements for establishing, documenting, implementing, maintaining and
continually improving (revising) the QMS. The QMS is documented by the following
means:
• publishing a quality manual;
• specifying a quality policy and quality objectives;
• developing and documenting the procedures required by the standard;
• developing and controlling the documentation necessary to plan, check, and
manage the organization processes;
• collecting records required by the Standard.
The extent of the QMS documentation depends on the size of the organization,
complexity and interactions of the processes, which must be also documented. After
the processes are defined and documented, they must be implemented. In some
cases, a process already exists in the organization has to be captured and
documented. Invariably, however, some aspects of some processes will not yet
have been implemented, such as measurement, collection, and analysis. For such
processes to be effective, staff will require training to understand what is needed to
develop and implement the missing steps, to collect records, and to make necessary
corrections upon analysis of the data.
Management Responsibility: Section 5 of the standard addresses management
responsibility, particularly the responsibility of top management. The publication and
implementation of the QMS is an important strategic decision. The commitment to
the issue and following this document is the responsibility of top management.
According to Mutafelija and Stromberg (2003), the top management is required to
show evidence of its commitment by:
• communicating the importance of meeting employer requirements;
• establishing the quality policy and quality objectives;
• conducting reviews;
• ensuring availability of resources.
11
In addition, top management is expected to accomplish the following goals:
• provide employer focus;
• plan the QMS, based on the quality policy and objectives;
• ensure that responsibilities and authorities are defined and communicated
through the organization;
• name a quality manager as representative with the responsibility for
establishing, implementing and maintaining the QMS.
Resource Management: Section 6 of the ISO 9001 addresses resource
management. Without resources, organizational goals and objectives cannot be
achieved. Resources can be identified in several forms, such as materials,
equipment, supplies, staff or financial. Projects then use the resources, as required,
to develop their products.
Product Realization: Product realization is the largest and seventh section of the
standard, ISO 9001 (2000), requiring the specification of processes that transform
employer requirements into products. The section includes the following
subsections:
• Planning of product realization
• Determination and review of requirements related to the product
• Employer communication
• The planning, inputs, outputs, review, verification, and validation of design and
development
• Control of design and development changes
• Purchasing process and information
• Verification of purchased product
• Control of production and service provision
• Validation of processes for production and service provision
• Identification and traceability
• Preservation of product
• Control of monitoring and measuring devices
12
Measurement, Analysis, and Improvement: Measurement is a key element of
successful management in every well-established engineering discipline. ISO 9001
has requirements for planning and implementing measurement, analysis, and
improvement processes throughout the QMS. Through measurement and analysis,
one can quantitatively determine the status of a process, detect changes in its
performance, and then implement corrective actions as necessary. Although the
standard does not prescribe the analysis techniques, statistical methods provide
effective tools.
2.4.2 Developments of Quality Management Standard
For structuring, construction, implementation, and monitoring the quality
management system, the organization shall form the following documents:
1- Quality Manual
2- Procedures
3- Job Instructions
4- Quality Records (like plans, checklists, reports, tables, etc.)
Quality Manual: Quality manual covers the extent of the quality management system
and includes the items of the quality standard. It refers to the content of the
procedures. It is a more general document and defines also the concept of quality
and its elements. However, one of the most important features of the manual is to
cover the organization scheme. So, to build an effective organization is very
important to get performance at a construction site.
Procedures: Procedures are the formal plans, which include the way of processing
and controling a working order. Procedures define the general requirements of the
quality management system to work in coordination and cooperation between the
organizational functions as shown in Figure 2.3. In a process-based management
system, these efforts will satisfy the control of quality. They facilitate also a good
overview of the quality system’s compatibility with the standard. However, a clear
understanding of the main processes of the company is required, since this will not
be evident from the element-oriented structure of the system.
13
Figure 2.3- Process-based Management System to Control Quality (Tropp, 2004)
In common, the fundamental procedures are established based on the 20 quality
elements of the ISO 9001, which are as follows (Kehoe, 1996):
1- Management Responsibility
2- Quality System
3- Contract Review
4- Design Control
5- Document and Data Control
6- Purchasing
7- Control of Employer Supplied Product
8- Product Identification and Traceability
9- Process Control
10- Inspection and Testing
11- Control of Inspection, Measuring and Test Equipment
12- Inspection and Test Status
13- Control of Non-Conforming Product
14- Corrective and Preventive Actions
15- Handling, Storage, Packaging, and Delivery
16- Quality Records
Process Control
Training Quality Audits
Management Responsibility
Corrective and Prevention
Actions
Quality Management
System Design and Production
Employer Feedback
Strategic Direction
Quality Policies
ISO 9001 Requirements
14
17- Internal Quality Audits
18- Training
19- Servicing
20- Statistical Techniques
Any of the elements not relevant to the individual organization should be left out.
Each of the elements might have standard sub-elements, utilized as a supporting
procedure. Some of the supporting procedures are suggested as below:
1- Calibration
2- Maintenance
3- Communication
4- Assessment of Supplier (including Sub-Contractor)
5- Health and Safety
The purposes of all the procedures are to increase the productivity, and hence to
reduce the costs by providing the quality control. All of the procedures have
interaction in between. This study also demonstrates this interaction and discusses
the benefits over an irrigation project.
Job Instructions: The job instructions direct the staff in a single activity and are
subordinate documents to procedures. They are required for specific tasks,
processes or operations, test and/or inspection activities. In such cases the job
instructions become an extension of the technical specification. They clarify “what,
who, how, when and in which frequency” to fulfill and/or control a task or process.
They are written in imperative mood.
Quality Records: The quality records include plans, forms, checklists, reports,
tables, technical, statutory and legal documents, specifications, codes of practice
and all other documents which will demonstrate the achievement of the quality
system requirements. Records provide the factual information needed for internal
audits, statistical quality control, fixing the nonconformances, planning and following
the preventive and corrective actions, like maintenance, calibration, training, etc.
15
2.5 QUALITY CONTROL SYSTEM IN CONSTRUCTION PROJECTS
The methods developed for control of work in the construction industry are uniquely
correlated with the types of work and construction materials involved. As compared
with the control of the production of products in the mass-production industry, when
some hundreds to many tens of thousands of a product item are to be
manufactured, there is need to control work when only one item is to be constructed.
When only one or a few items of a given type are to be designed and constructed,
like in the construction industry, there is need for a uniquely different assembly of
control methods. So, the project-type management control of work is complex in the
construction industry when major capital works, such as dams, tunnels, power-
generating stations, irrigation networks, bridges and harbors must be designed,
constructed and commissioned.
In construction works control must emanate from the senior manager to whom the
designer, supplier and quality assurance people report, with the designer providing
technical guidance throughout. It is the duty of the quality activity to provide the
quality systems by which the project work can be successfully completed. The
procedure sets given below forth the areas of control needed in projects.
2.5.1 Quality System Procedure
This element basically requires that the quality system should be documented in
terms of policies, procedures, and instructions. Emphasis is placed on problem
prevention, rather than detection, in all activities from purchasing through installation
and servicing after delivery. For an effective quality system, written job instructions
are required. The instructions also describe where the results of the control should
be recorded.
2.5.2 Contract Review Procedure
A review of the contracts or purchase orders is required by the standard. The
contractor shall be sure that the requirements of the employer are clearly
understood before a design, civil work or a construction material will be supplied. If
there is any doubt about the requirements, clarification should be made before the
16
processes begin. Also, the organization shall be reviewed of the contract for the
capability to meet the requirements. Capability to meet the requirements means not
only having the material and equipment to perform the necessary operations but
also the technology, qualified employees, and the ability to deliver on time.
2.5.3 Design Control Procedure
The control of design requires that the design process should be documented and
correctly planned and both the design inputs (employer specifications, contract,
standards, enviromental conditions, etc.) and the design outputs (drawings, details,
type of the materials, instructions, tables, etc.) should be formally documented by
the design organization. The outputs are the technical documents that will be used
throughout the production and installation processes. The organization shall review
the designs to ensure that the outputs meet the input requirements and that any
changes to the designs are properly controlled. All design changes require written
employer approval. Also there should be a periodic reevaluation of the constructed
structure in order to ensure that the design is still valid.
The critical aspects in the design of a civil work are described below for the main
three stage of the design process as design input, design and design output stages.
Design Input Stage: The design input stage is to refine the employer requirements
into design specifications and create the documentation needed for the later stages.
It should be noted first that while the employer requirements may be qualitative and
macroscopic in a contract, the design specification must include these requirements
as quantitative and microscopic. For instance, while the employer needs
compressing a flow from one pressure to another pressure, design engineer
determines to create a ruled surface centrifugal impeller with an optimum diameter
and rotational speed and resulting stresses. The degree of details and length of the
design specification varies widely between organizations and requirements.
The design input stage is essential for attaining quality in design. In spite of the
effort spent in achieving a stable design input document, revisions may be required
and must be controlled.
17
In particular, the quality standard states that the design input documentation is to
identify and evaluate applicable statutory and regulatory requirements, e.g.
expropriation. Depending on the kind of construction, there could be a checklist of
possible standards and government regulations. Also, the standard states that the
design input documentation must be reviewed for adequacy. Thus, an approval
signature is added to the document by a person given the responsibility for
reviewing the documentation.
To approve the design specification documentation, Schoonmaker (1997) proposes
a number of questions which should be covered. The following are sample
questions:
1. Is the schedule realistic?
2. Are adequate resources available?
3. Are the design specifications complete and are they unambiguous?
After all the questions posed above been adequately addressed, there would be an
Input Review Meeting according to communication procedure. At this meeting, all
the management personnel responsible for approving the design specification would
meet and review the design specification and decide if the design specificaiton is
acceptable. If problems are determined at this point, corrective action should be
initiated like explained in the corrective action procedure.
As a conclusion, the documents of design input stage translate the employer’s
requirements into specific design parameters. This stage needs to be given proper
attention, since changes in the design specification at the design stage will bring
negative effect, e.g. loss of time, additional cost due to rework.
Design Stage: The design stage is where the product is actually designed or
invented. The standard emphasizes that if the design stage fails, all other processes
are going to fail, and employer needs simply cannot be fulfilled.
In a practical sense, the design activity almost always involves a trial-and-error
activity. The designer proposes a real solution to the problem posed by the design
input documentation. This proposed solution is generally to be based on the
18
designer’s previous experiences. The proposed solution is then tested in a variety of
ways, like by making theoretical calculations, empirical calculations, field experience
or laboratory works. In each of these cases, the designer is searching for a reason
the design is feasible or not feasible. If the proposed solution withstands the reviews
and the tests, then it may be taken to a prototype stage.
Each of the trials, solutions, and also difficulties present an opportunity to learn and
expand the knowledge base of the organization. If these investigations are properly
documented, then they can be referenced for future efforts. Also, for the quality
standard, this documentation can be used to demonstrate an appropriate level of
control over the design stage. There are a number of sample documents for
containing this knowledge, such as design files, engineering standards, verification
studies and engineering test reports. The quality standard gives high attention these
types of documents during developments.
The balance between control and innovation may be assisted by the use of
engineering standards. These design standards are developed standards for guiding
the design process. Engineering standards are certainly valuable in the context of
the quality standard. The organization must keep a catalog of all the engineering
standards and they must take care to show that they are controlled documents. An
engineering standard should include the revision level of the standard, the date of
issue of the standard, and the name of the person and/or organization who issued
the latest revision. However, a signed approval form for an engineering standard
does not necessarily mean that the methods and formulas it employs are any more
likely to be valid models of the physical universe. At this point, design stage shifts to
a design verification, which is a part of design stage for an ISO 9001 process. In a
verificaiton study of an engineering standard, there should be oppurtunities to make
alternative calculations for the methods in the standard. There are often a variety of
methods for calculating the same parameters. The sets of results should then be
compared and discussed. In some cases, statistical methods would be applied to
consider the results.
Assuming the verification study is controlled and considered a quality record
according to quality records procedure, the engineering and design organization
should have no difficulty with demonstrated proper use of the design verification
19
activity. Also, there are some other means to be discussed for design verification,
like comparison with existing works, used the same standards, undertaking tests in
laboratory, etc.
The ISO 9001 design process also required a design review activity, must be
included in the design stage. For the specific project being designed, this design
review needs to compare the design input documentation with the current state of
the design. The design review activity can take place at a meeting of the
organization. Some of the participants of this meeting to consider are the design
engineers, engineers responsible for testing, and safety engineers. The basic task of
this review meeting is to verify that the design meets the requirements of the design
specification.
For safety requirements, for example, the representatives at the design review must
be proactive. They need to imagine “what if” scenarios with the design. Then they
should consider the effects of these scenarios, and whether the design needs to be
changed to prevent injury or damage loss by the help of Health and Safety
Procedure. Minimizing the injury and damage loos means fewer stops during the
construction works and brings productivity. Theoretically it should be much easier to
alter the basic design at this design stage than to wait for the end of the design
output stage.
As a conclusion, design stage is going to determine the characteristics of the
project. The concept, materials, geometry, and dimensions of the project are critical
to the success of the project or its ability to satisfy the employer.
Design Output Stage: In an ISO 9001 design process, a separate Design Output
Stage is considered to handle the development and creation of the drawings and
other documents for construction. It is focused on preparing all the documentation
for release to the construction enviroment with all necesarry details.
If the final documentation is being prepared in the design stage where the basic
design can be still changing, then there may be a great deal of rework and time loss.
So, one of the necessity of the design output stage is to eliminate this lost effort for
revisions and reapproving the changes.
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2.5.4 Document and Data Control Procedure
The documents, which form part of the quality system (procedures, drawings,
specifications, instructions, etc.) should be controlled and approved. Therefore, the
system documents should include who has approved the document, the date of
approval, and the current level of revision, if any. The purpose of document control
is to ensure that current issues of documents are supplied to everyone in the
organization who needs to use it. Likewise, changes to documents must be
reviewed and approved by the same method.
2.5.5 Purchasing Procedure
Purchasing activities cover two categories of work done under contract. These
include the purchase of the construction materials from the suppliers and the
subcontracting of the work by the service supplier, which may or may not include the
supply of the materials.
In both case, the supplier shall review and approve purchase order documents or
contract for adequacy of specified requirements prior to release. These documents
shall contain, for the materials or services, the applicable specifications, drawings,
quality levels required, inspection or test methods to be used, characteristics to be
supplied and limits to be met, quantity to be supplied, and all other pertinent data
needed to assure the quality of incoming materials or services.
The supplier contracts shall clearly communicate all requirements for labeling,
packing, shipping, delivering, installing, and the name of the standard to be applied
to the material. Expecting use of a quality program by the supplier will strengthen
and facilitate the condition of the organization in quality control.
2.5.6 Control of Employer Supplied Product
The procedure is used where the employer supplies construction materials for use
on the project and those items can not be satisfactorily inspected to assure their
quality as delivered to the contractor. Thus, the organization of the contractor shall
(Taylor, 1989):
21
• examine all such materials upon receipt for completeness, proper type, and any
evidence of transit damage;
• control all employer-supplied items, preserve them from damage, and use them
in accordance with the contract and the needs of the project;
• on a timely basis, report to the employer any evidence of damage or
nonconformity.
2.5.7 Process Control Procedure
The organization shall identify and plan the works for construction and, where
applicable, installation processes which directly affect the quality and shall ensure
that these processes are caried out under controlled conditions. Stebbing (1993)
describes the controlled conditions which include the followings:
• Documented job instructions, which define the tasks at the installation. The
instructions shall explain the appropriate way of the jobs, type of the installation
equipment, suitable working environment, and reference standards/codes.
• Monitoring and control of the conformance of the process and material
characteristics during construction.
• Implement controls to prevent the use of items of an unknown quality until the
items have been inspected or tested and the results are known.
• Use only fully qualified and experienced personnel to carry them out by which to
assure that the processes are yielding satisfactory conformance.
2.5.8 Inspection and Testing Procedure
The organization shall ensure that incoming material is not used or processed until it
has been inspected or verified as conforming to the requirements. It is required also
to define the responsibility, authority and the interrelation of all personnel, who
manage, perform, and verify the works affecting quality.
2.5.9 Control of Nonconforming Product Procedure
Material or service, which does not conform to requirements, shall be identified and
controlled to prevent its unintended use or delivery. Control shall provide for
22
recording, evaluation, segregation, and disposition of nonconforming material.
Records of the nature of nonconformities and any subsequent actions taken shall be
maintained. The nonconforming material or the service shall be corrected and
reverified by taking the appropriate actions, such as reworking to meet the specified
requirements, accepting with or without repair by concession, regrading for
alternative applications and rejecting and/or scrapping.
2.5.10 Corrective and Preventive Actions Procedure
The organization shall take corrective actions appropriate to the effects of the
nonconformances in order to eliminate the cause of the nonconformances and
prevent reoccurrence. For this purpose, the organization shall review
nonconfomances (including employer complaints), determine their causes,
determine and implement needed actions and record the results of actions taken.
The same procedure shall be applied for the potential nonconformances as
preventive actions relating to the job conditions. The potential nonconformances can
be found by brainstorming, “what if” scenarios or experiences. Preventive action is
taken to prevent occurence while corrective action is taken to prevent reoccurence.
2.5.11 Handling, Storage, and Delivery Procedure
The organization shall prepare documents and establish a program for handling,
transporting, stacking, storing, preserving, and segregating all construction materials
as necessary to safeguard quality characteristics and prevent the commingling of
nonconforming materials with conforming materials. It should also be provided
secure storage areas or stock rooms to prevent damage or deterioration of the
material and inspections of the materials held in stock for condition and shelf life
expiry. The supplier shall arrange for the protection of the quality of the material until
the final inspection and test and this protection shall be extended to include delivery
to destination.
2.5.12 Quality Records Procedure
The company shall maintain records that objectively demonstrate that the quality
system is effective. To this effect the results of measurements, which objectively
23
show conformance with requirements of materials or services, shall be retained and
each such record should include the date of the inspection or test, the identity of the
inspector, evidence of any nonconformance, and evidence of the resulted corrective
action from discovery of nonconformances. Quality records shall be available to the
quality auditor and the employer for analysis and review.
2.5.13 Internal Quality Audits Procedure
After the policies, procedures and job instructions have been developed and
implemented, checks must be made to ensure that the system is being followed and
the expected results are being obtained. All elements should be audited at least
once per year and some more frequently, depending on need. Besterfield (2004)
provides five objectives of the internal audit which are:
• to determine that actual performance conforms to the documented quality
management system;
• to initiate corrective action activities in response to deficiencies;
• to follow up noncompliance items from previous audits;
• to provide continued improvement in the system through feedback to
management;
• to cause the auditee to think about the process, thereby encouraging possible
improvements.
Audits shall, as a minimum, include an evaluation of:
• work areas, activities and processes
• products and services being produced
• quality control practices being used
• documented quality program procedures, instructions, reports, and records
2.5.14 Training Procedure
The organization shall identify the training needs and provide training for all
personnel, who are in an activity affecting quality during design, production, and
installation. Personnel assigned for specific tasks should be qualified on the basis of
appropriate education, training, and experience as required. So, management
24
should establish, by review, examination, or other means, whether personnel
carrying out such functions require training. Management should also establish how
competence in a given function is determined, by examination, testing, certification,
and so on.
Training in certain functions requires regular updating and the necessary evidence
that such retraining or maintenance of qualifications has been carried out should be
documented. For example, welders and weld inspectors require retesting at regular
intervals to retain qualification.
2.5.15 Calibration Procedure
Where necessary to ensure valid results, measuring equipment shall (Stebbing,
1993):
• be calibrated or verified at specified intervals against measurement standards;
where no such standards exist, the basis used for calibration or verification shall
be recorded;
• be adjusted or re-adjusted as necessary;
• be identified to enable calibration status to be determined;
• be safeguarded from adjustments that would invalidate the measurement result;
• be protected from damage and deterioration during handling, maintenance and
storage.
In addition, when the equipment is found not to conform to requirements the
organization shall check and record the validity of the previous measuring results.
2.5.16 Maintenance Procedure
Maintenance of the unit shall be periodically necessary if the unit is to continue to
perform satisfactorily during its anticipated service life. So, a programme of
preventive maintenance shall be established to ensure continuing process
capability. The construction equipment and machinery should be appropriately
stored and adequately protected between uses.
25
2.5.17 Communication Procedure
Communication activities are divided in two, as internal and external communication.
For the internal communication, the organization shall ensure that appropriate
communication channels are established within the organization and that
communication takes place regarding the effectiveness of the quality management
system. Typical communication techniques are meetings, briefings, bulletin boards,
and other communication tools.
The organization shall determine and implement effective arrangements for
communicating with the employer in relation to product or service information;
inquiries and documentation; employer feedback. Such an external communication
should be provided also for the third parties in the work enviroment, concerning the
construction activities.
The requirements for communication should have been established during the
design stage.
2.5.18 Assessment of Supplier Procedure
The organization shall select his suppliers on the basis of their ability to meet
subcontract requirements. The selection of the supplier and the type and extent of
control exercised by the organization shall be dependent upon the type of material
or service. The supplier shall be periodically evaluted within the organization for his
satisfaction of the contract and quality requirements. Founded as not sufficiently
qualified, an alternative supplier shall be assigned for further bussiness.
26
CHAPTER 3
THE COST OF QUALITY
3.1 THE CONCEPT OF COST OF QUALITY
The Cost of Quality (CoQ) concept has been around for many years. In 1951, Dr.
Joseph M. Juran included a section on CoQ in his Quality Control Handbook (see
Juran, 1988). The Quality Cost Committee under the Quality Management Division
was established by the American Society for Quality (ASQ) in 1961. Such several
quality system standards other than ISO 9001 as QS 9000, and AS-9000, which are
presently accepted, reference the use of CoQ for quality improvement.
According to Juran (1988), the term cost of quality should be construed as the cost
of poor quality, namely the costs associated with the detection and rectification of
defective work. Besterfield (2004) defines cost of quality as the costs associated
with the non-achievement of product or service quality as defined by the
requirements established by the organization and its contractual liabilities between
the employer and the society. The cost of poor quality is used by the management
team in its pursuit of quality improvement, employer satisfaction, market share, and
profit maximization.
The CoQ concept is based on a detailed analysis of the processes and activities
within a project. It reduces the cost of production by means of decreasing the
number of defects and reworks. Further cost reduction is possible through the
incorporation of appropriate techniques which enable lower inventory and ongoing
work costs, and reduce the need for supervision and maintenance.
For a quality cost analysis, data involved in the processes need to be converted into
financial information in order to provide comparable measures across processes,
and to facilitate the improvement of effectiveness and efficiency throughout the
organization. These financial measures consist of prevention and appraisal costs,
and internal and external failure costs.
27
3.2 CATEGORIES OF COST OF QUALITY
Costs of quality are traditionally divided into four categories:
1- Prevention costs
2- Appraisal costs
3- Internal failure costs
4- External failure costs
Containing elements and sub-elements, each category is discussed below.
Regarding the cost of quality concept, the following equations are defined:
TQC = QCC + FC (3.1)
QCC = PC + AC (3.2)
FC = IFC + EFC (3.3)
where TQC is the total quality costs, QCC is the quality control costs, FC is the
failure costs, PC is the prevention costs, AC is the appraisal costs, IFC is the
internal failure costs, and EFC is the external failure costs.
3.2.1 Prevention Costs
Prevention costs are those costs associated with the planning and implementation
of a quality management system aiming at the prevention of poor quality. Typical
prevention costs incurred by an organization include (Juran, 1988):
• costs of quality assurance activities such as quality system design,
implementation, auditing, communication and reviewing, and the cost of
consumables used in these activities;
• costs related to supplier quality assessment and supplier product inspection,
including development programmes, and the establishment of specifications for
supplier assessment;
• costs of education and training, including both quality system specific training
programmes and the more general staff development activities. Part of this work
28
may be executed by personnel who are not on the payroll of the Quality
Department;
• costs that are incurred within the context of reliability engineering and other
quality-related activities associated with design reviews and checks;
• costs of process control, including in-process inspection and tests for
determining the current status of the process;
• costs of preventive maintenance
3.2.2 Appraisal Costs
Appraisal costs are the costs associated with verification activities to ensure
conformance to requirements although they exclude the costs associated with re-
inspection following the failure of a product or design. Typical appraisal costs
include (Juran, 1988):
• costs of incoming materials and services verification activities, including the
inspection of pre-contract trials;
• costs of in-process verification, including all checking of the required parameters
to ensure product or design conformance;
• costs of development of inspection and testing equipment in terms of the
specification of such items or services and the calibration costs, but excluding
the capital costs;
• costs of evaluation of stocks, including costs of testing products in stock to
evaluate degradation;
• costs of analysing, reviewing, reporting, and storing the appraisal data.
3.2.3 Internal Failure Costs
Internal failure costs are the costs associated with the non-conformance of the
product or design prior to the transfer to the employer. Typical internal failure costs
include (Juran, 1988):
• costs of scrap of defective product which cannot be reworked, including the
material and direct/indirect labour costs associated with the rejected item;
29
• rework, retest or replacement costs for product or design which does not
conform to the specified requirements, including the costs associated with the
identification of the remedial action and root causes;
• costs of scrap and rework due to nonconforming product received from
suppliers;
• avoidable process losses, including cost of losses that occur even with
conforming product. For example, using more cement than required in preparing
concrete.
• costs of modification, downgrading and concessions, including the effort
involved in obtaining agreement to reduce the specification;
• re-inspection costs associated with product having previously failed to meet
requirements and having to be reworked.
3.2.4 External Failure Costs
External failure costs are the costs associated with non-conformance of the product
or design and which are detected after the product is shipped of to the employer.
Typical external failure costs include (Juran, 1988):
• costs of rejected / returned product, including the cost of repairing or replacing
the product and the associated handling costs;
• costs of warranty claims and product liability, which may represent costs
significantly in excess of the actual value of the product or design supplied;
• employer dissatisfaction, including the investigation of complaints, the
commercial downgrading of the product or service and the potential loss of
future bussiness.
3.3 THE STUDY FOR COST OF QUALITY
The study for quality cost requires two main components, which will be divided
further into categories given above. They are cost of conformance and cost of
nonconformance.
Cost of conformance is a component of the cost of quality for a work product. Cost
of conformance is the total cost of ensuring that a product is of good quality. It
30
includes prevention and appraisal costs, such as documentation, using standards,
training, process control, reviews, audits, inspections, and testing. Cost of
nonconformance is the element of the cost of quality representing the total cost to
the organisation of failure by not having quality systems or a quality product. Cost of
nonconformance includes both of the failure costs generated by quality failures,
particularly the costs of scrap and rework, replacement of lost work, possible loss of
business and other potential costs.
For a successful cost of quality study, it is important to categorize the costs related
to quality accurately. The cost of quality decision flowchart, given in Figure 3.1, will
be helpful in this categorization.
Yes
No
Yes
No
Yes Yes
No
No
Not a quality cost!
Figure 3.1 – Cost of Quality Decision Flowchart (Schoonmaker, 1997)
Is cost related to prevention of non conformance?
Prevention Cost
Is cost related to evaluating the conformance?
Appraisal Cost
Is cost related to non conformance?
Is nonconformance found prior the transfer of the product to employer?
Internal Failure Cost
External Failure Cost
31
3.3.1 Obtaining the Cost Data
Juran (1988) gives two main approaches by composing the cost data used in the
cost analysis. These are:
By Estimate: This is the practical approach which involves only a modest amount of
effort. Several methods may be useful in estimating. The following are sample
methods:
a) Temporary records: For example, some production workers spend part of
their time replacing defective product. It may be feasible to arrange with their
supervisor to create a temporary record so as to evaluate the time of
replacement and thereby the replacement cost. This cost can then be
extrapolated for the time period to be covered by the study.
b) Work sampling: In this method, random observations of activities are taken
and the percent of time spent in each of a number of predefined categories
can then be estimated.
c) Allocation: For example, in an engineering deparment, some of the
engineers are engaged in making product failure analysis. However, the
department makes no provision for charging engineering time to multiple
accounts. It could be asked each engineer to make an estimate of time spent
on product failure analysis.
d) Standard costs data: Examples include scrap, rework, and replacement of
field samples. Such data may be based on unit prices used in the contract or
published by the public sector. They can be get also from the purchasing
department of the organization.
e) Other methods: Opinions of the specialist persons or institutions, like trade or
industry chambers.
By the Accounting System: This is a more elaborate approach. It requires a lot of
effort from various departments, especially accounting and quality. The established
accounts of the activities for quality, such as inspection, training, communication,
maintenance, payroll data, etc., are secured to quantify the quality costs.
32
3.3.2 Economic Model of Quality of Conformance
The study of the distribution of quality costs over the major categories in section 3.2
can be further explored using the model as shown in Figure 3.2, given by Besterfield
(2004). The vertical scale of the figure illustrates the cost of quality monetary, where
the horizontal scale is the percent quality of conformance. The aim of the model is to
determine the relationship among the cost categories. The model shows three
curves:
1. The failure costs: As the quality of conformance improves and approaches
100%, failure costs, total of internal and external, are reduced until they
approach zero. In other words, if the product or service is perfect, there are
no failure costs.
2. The costs of prevention plus appraisal: These costs are zero at 100 percent
defective, and rise as perfection is approached. It is necessary to increase
appraisal and prevention costs to achieve a reduction in failure costs.
3. The sum of curves 1 and 2: This third curve is marked “total”, and represents
the total costs of quality.
To construct the model, summaries of cost data by calendar periods may be utilized.
These periods provide information on trends and progress in quality improvement
efforts.
0 100Quality of Conformance-%
Qua
lity
Cos
ts-$
Figure 3.2 - Model for Quality Costs (Besterfield, 2004)
Prevention and Appraisal Costs
Internal and External Failure Costs Total Quality Costs
33
The distribution of quality costs over the major categories can be investigated using
the relationship shown in Figure 3.2, which reveals that the cost of poor quality
decreases as quality increases. However, it is uneconomical to achieve 100%
conformance since the prevention and appraisal costs increase in a geometric
manner. However, perfection is being economically achieved as the inspection
process is automated and where the employer is willing to pay for perfect quality.
Also, perfection is the goal where quality has a critical impact on safety, such as in
the nuclear power field, or where losses can lead to bankruptcy.
As a conclusion, the target should be the reduction of the cost of failure. Increase in
the cost of prevention will have an accelerated effect on the reduction of these
failure costs and contribute to profit without increase in turnover. This is contrary to
the belief that higher quality results in higher costs.
Appraisal costs activities should also be minimized, as they are non-valued added.
They are defined as non-value added as they do not change the quality of the
product or service being evaluated. The more inspections or verifications conducted
the less likely poor quality will be shipped to the employer; however, these activites
do not prevent the poor quality from being produced. By spending more money on
prevention activities, appraisal activities can be reduced and this should also lead to
lower failure costs.
34
CHAPTER 4
DESCRIPTION OF THE IRRIGATION PROJECT
4.1 GENERAL CONDITIONS
In the case study, a large-scaled irrigation network construction project is examined.
The project was performed in Antalya, a southern coastal province in Turkey. The
aim of the project is to divert flows of the Aksu River, into an existing main channel
by a diversion weir to irrigate a land of 2200 ha. Construction of two pumping
stations, penstocks, and irrigation networks are involved in the project. The flow is
taken into the pumping stations and distributed to irrigable lands in Gebiz Plain
through penstocks, canalet networks, and high-density polyethylene (HDPE) pipes.
Some information about the elements of the project is as follows:
One of the pumping stations, which is named as P2, was constructed with its own
basin in the vicinity of the main channel, and it takes water through an engine. Other
pumping station, which is named as P1, draws the water from the main channel by
means of a suction pipe in 900 mm diameter and 35 m long. The station P1 is
consisting of a building having 8.15 m width and 39.45 m length, whereas the station
P2 has 37.80 m width and 21.50 m length. Both of these buildings have the same
height which is 7.25 m. To each station five pumps were installed in order to serve
group “P1” and “P2” canalets. The pump powers, which are serving “P1” and “P2”
canalets, are 315 KW, and 160 KW, respectively. Besides these pumps, the station
“P1” has three more pumps in order to supply water to the “K” group canalets and
these additional pumps have powers of 55 KW. The general layout of the whole
irrigation network with the corresponding codes is given in Figure 4.1.
Penstocks with large diameters were constructed between the stations and the main
canalets. The station P1 has two penstocks. One of these penstocks has 500 mm
diameter and 575 m length. It provides water for group “K” canalets. The other
penstock has 900 mm diameter and 885 m length. This penstock is joined to P1
35
Figure 4.1- General Layout of the Irrigation Network
36
canalets. The station P2 has only a single penstock which has 900 mm diameter
and 94 m length. This single penstock supplies water for group “P2” canalets.
The project has four groups of main canalets, which are K1, K2, P1, and P2. These
are the canalets in semi-elliptical shape and between the commercial types of
280-1000. Considering the main canalets, secondaries and the tertiaries the design
group gave codes for the canalet routes. The secondaries are denoted with “Y” and
the sequence numbers after the code of the concerned main canalet. For the
tertiaries only the sequence numbers of the tertiary on a specified secondary is
used. For example; the first tertiary which is separated from the fifth secondary on
the route of P2 main canalet, is denoted as P2-Y5-1. The secondaries are in the
range of type 100 and type 800, whereas the tertiaries are in general with types
100,180, and 280. The numbers in the canalet types indicates the inner sectional
semi-elliptical area of the corresponding members. For example, canalet type 280
has an inner sectional area of 0,280 m², which is also equal to the discharge in that
canalet for 1.0 m/s velocity. The canalets type 100, 180, 280, 400, 600, 800, and
1000 are used in the project. Besides these types, actually, there are 21 commercial
types of canalets (Terenzio, 1964), like 120, 135, 315, 520, 700, etc. The concrete
thicknesses of the canalets are in the range of 40 mm and 100 mm. The project
involves the construction of the canalet routes for a total length of 116.485 km. The
distribution of the total length with respect to the canalet types is given in Table 4.1.
All of the canalet members used in this project are in the standardized length of 5 m.
Table 4.1 – Distribution of the Canalet Types
Type of the Canalet Total Length (m)
Type 100 67275
Type 180 16465
Type 280 8915
Type 400 8740
Type 600 8875
Type 800 3610
Type 1000 2605
37
In order to complete the networks, in addition to the canalets, siphons and HDPE
100 pipes with different diameters were constructed. They were used in general to
cross the roads. The total length of the siphons and the HDPE 100 pipes is 3075 m
and 7093 m, respectively. So, the total length of the whole network is 126.653 km.
In different shapes and sizes, totally 2735 reinforced concrete structures were also
constructed as appurtenances, like dividing structures, outlet and inlet structures for
siphons, chutes, elbows, etc.
At the installation of the canalets, concrete saddles and footings were utilized. The
saddles are prefabricated concrete units, and they are used at the joining points of
the canalet members. They are similar in the shape of the canalets and their lengths
changes between 16 cm and 29 cm (Terenzio, 1964). The concrete thicknesses of
the saddles are in the range of 80 mm and 245 mm. The type of the saddle is the
same as the type of the canalet installed over that portion. For example, for the
junction of two canalets in Type 400, Type 400 saddle is used.
The concrete footings in different heights are built in order to provide the slope
adjustments for the canalets with respect to the existing land conditions. Using the
proper forms, the footings are constructed in-situ by pouring concrete. The footings
are in general trapezoidal section and the maximum height of them is 200 cm.
U-shaped sections are used for the footings that are less than 50 cm in height. For
21 types of canalet members, 9 types of footings are produced by grouping the
canalets in similar dimensions (Terenzio, 1964). The standardized heights of the
footings were 20, 30, 40, 50, 70, 90, 110, 130, 150, 170, and 200 cm. In order to
transfer the weight of the canalets and the load of the carried water to the ground,
concrete footing blocks in different sizes were built under the footings. During the
project footings with a total height of 16200 m were constructed.
The total cost of the irrigation project is estimated to be $ 4,820,000. The
permissible time period for the total construction works was 763 days according to
the contract and the delaying penalty after the end of this period was 0,03% of the
contract price for each delayed day. Thus, the daily delaying penalty can be
calculated by multiplying the contract price with this rate and it is found as 1446
$/day.
38
When the contractor decided to implement the quality management system in the
project, the constructions of the pumping stations, the penstocks, the routes for
group “K” canalets and approximately 85% of the routes for group “P1” canalets
have been completed. Therefore, this study covers mainly the design and
construction processes of the group “P2” canalets, which are approximately 48% of
the total project works. Using this percentage, the project cost of the completed
parts before quality management system can be calculated as $ 2,506,400.
4.2 DESIGN CRITERIA OF THE PROJECT
The project which is used as a case study is a typical irrigation project with canalet
networks, which are very popular in Turkey. An irrigation project is designed
considering the operation, network, and the farm application of the system.
Therefore, the design criteria of a project includes the classification of land, physical
properties of soil, cropping pattern, climatic conditions, irrigation efficiencies, and
type of irrigation network.
The classification of the land for irrigation is an assessment of the physical and
chemical factors of land features that affect the irrigation potential. The standards
should be used in order to classify a land as "irrigable" or “not irrigable”. According
to field and laboratory tests with reference to the USBR Standards, the land in the
project was classified as Class 2. It means that the soil is loamy sand to very
permeable clay and the land has smooth slopes up to 4%, or rough slopes up to 8%.
Moreover, the land also requires a moderate leveling.
The physical properties of soil include infiltration rate, porosity, field capacity, and
permanent wilting point. Infiltration rate is the rate at which water is infiltrated by the
soil when the conditions are limited only by soil factors. Infiltrability of a soil
decreases as the pressure difference, or hydraulic gradient of the infiltration surface
decreases. For a sandy loam soil the average infiltration rate is 2.5 cm/hr.
Porosity is the ratio of volume of voids to the total volume of soil including water and
air. Porosity of irrigated soils varies between 35-55% (Hansen et al., 1980).
The average porosity of the soil in the project site was 48%.
39
Field capacity is an estimation of maximum volume of water that may be temporarily
stored in the soil profile to be used by plants. The field capacity cannot be decided
accurately since there is no discontinuity in the moisture content versus soil
moisture tension relation. The field capacity of the soil is considered as 33%.
Permanent wilting point is the soil moisture content at which plants permanently wilt.
The permanent wilting point is influenced by the type of soil. The average
permanent wilting point of the sandy loam soil in the Gebiz Plain is 15%.
The water demand is basically determined by the expected cropping pattern and
irrigation efficiencies. The difficulty in determining the expected cropping pattern on
an irrigation scheme varies according to the degree of freedom allowed to farmers in
their choice of crops and the timing of their cultivation activities. Considering the
farmers habits the expected crop types for cultivation were wheat, cotton, barley,
and sesame. The weighted consumptive use of the project area is determined by
the Blaney-Criddle (1950) method. The climatic factors are also essential to
determine the water demand. As well as in the other countries having a semi-arid
climate, in Turkey the Blaney-Criddle (1950) formula is commonly used to determine
the consumptive use. The climatic factor in the formula is calculated by knowing the
ratio of monthly day time hours to annual day time hours and average monthly
temperatures. The average monthly temperatures were obtained from the local
meteorology stations having data for more than five years.
In order to complete the evaluation of demand, the irrigation efficiency of water
distribution system and efficiency of application must be known. This is usually the
weakest point in estimation of the demand, because such evaluations are rarely
made in the field because of the fact that they are time-consuming. In the absence
of reliable field data on efficiencies, empirical data from the abundant literature on
the subject are used.
In order to determine the irrigation network type, economical analyses are
performed for each type of network taking in the account the available technology,
labor, materials, and the operational requirements. The alternative, which gives the
greatest net benefit to the employer at this project, was the canalet network. The
main reasons for this are listed as follows:
1- The employer has an existing prefabricated canalet plant in the vicinity of the
land planned for irrigation.
40
2- The routes for networks pass usually through the farmers’ land, which leads
to pay expropriation costs. In addition, these second class lands are valuable
for irrigation. Since the width of the construction band is less than the open
channel, the canalet network was chosen to reduce the amount of the land
for construction.
3- Since most of the productions are prefabricated, the construction can be
completed in less time period.
4- There is almost no seepage at the canalet systems, which is important in the
region where the evaporation rate is high.
5- By changing the height of the footings, the water level can be adjusted easily
according to the local conditions.
6- Maintenance and repair of canalet systems are very easy and operation after
construction is simple, which is an important economical factor.
For the design of the canalet networks, two kinds of methods are used. These
methods are the demand method and the unit area - unit water method. Due to the
easy operation and due to the constraints for getting water by the farmers in the unit
area, the demand method was chosen by the design group and approved by the
employer.
Demand method aims to give water to project area continuously according to the
demand. Although this condition is hypothetical and uneconomical, the designs of
the main canalets, secondaries, and tertiaries are based on continuous watering.
However, in the operation of the system only the desired amount is given to the
field. In the demand method, the required parameters for calculations are the
irrigation modulus, qmax (lt/s/ha), irrigable area, A (ha) and flexibility coefficient, F.
Using the parameters the demand and the canalet capacity, Q (lt/s), for the given
area can be calculated by the formula as follows:
Q= qmax.A.F (4.1)
The flexibility coefficient shows the probability of supplying the demand in the field
which is a function of the number of turnouts operating at the same time. Its value
depends upon the area, A, and maximum water requirement, qmax, and it can be
obtained from the table of Kızılkaya (1988). For this reason, the design should be
41
checked for the month, when the maximum water demand occurs. The irrigation
modulus, qmax , was calculated for the entire project as 1.40 lt/s/ha for 2700 ha. The
supplied discharges over the corresponding areas by each canalet group are given
in Table 4.2.
Table 4.2 – Supplied Discharges according to the Main Canalets
Main Canalet Total Length
(m)
Total Discharge
(lt/s)
Irrigable Area
(ha)
P1 50845 1979 1198
P2 60650 2221 1370
K1-K2 4990 282 132
TOTAL 116485 4482 2700
It should be noted that ineffective design of an irrigation project due to wrong
selection of method creates serious problems and irreversible deficiencies in the
project area. Selection of irrigation practices, networks, and operation methods are
very important tasks of the design engineers.
Since the groundwater level is low in the region, there was no need to design a
drainage system. However, discharging of the wastewater in the network, especially
in the main canalets, was an important task for the design group, so channels and/or
pipes were designed to drain water towards the existing creeks.
4.3 ORGANIZATION
The contractor of the studied project has established an organization, which is
capable of performing both quality and project management. Project management
encompasses the planning, designing, managing, directing, and controlling the
construction, and quality assurance activities. Moreover, it effectively uses
resources to achieve the project goals and set objectives to complete the work on
schedule within the budget. This process was executed by the Project Manager and
the teams which contains qualified technical and administrative personnel. These
42
personnel might be divided into two main groups as design group and construction
group.
The technical staffs of the design works were named as the “Design Group”. It
includes project manager, design engineers, surveying engineers, topographers,
and technicians. The technical staffs of the construction works were named as the
“Construction Group”. It includes project manager, senior manager, site engineers,
topographers, and technicians.
In order to control and to satisfy the requirements of the quality management system
“Quality Group” was assigned by the contractor. It included quality (assurance)
manager, quality control engineers, and technician. The group is mainly responsible
for checking whether or not, the system requirements were being followed, all
procedural nonconformances are resolved, all procedures and instructions are
prepared. Moreover, it regularly reviews these procedures and instructions and
makes updates if necessary; determines and reports the principal causes of quality
losses and nonconformances. It works with the other groups, and examines where
improvements are required, and it recommends the preventive and corrective
actions.
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CHAPTER 5
CASE STUDY
The contractor who undertakes the irrigation project, about which the general and
technical properties are given in Chapter 4, decided to implement the quality
management system in his construction sites. In that manner, taking this irrigation
project as a base, the required studies were started in February 2002. During the 12
months between the time periods March 2002 and February 2003, quality
improvements were aimed and the requirements of the system were set. During this
period, studies were carried out on the determination of the deficiencies in the
design and construction processes, and on the elimination of the effects of these
failures by means of quality management. The aim of this study is to examine the
effects of these studies on the cost of quality. The Cost of Quality Concept, which is
mentioned in Chapter 3, and the cases about its categories faced with while
performing the project and quality system are explained in the following sections.
In the cost of quality calculations, the costs related to these cases are given in
tabular form and in these tables the months between March 2002 and February
2003 are ranked as 1 to 12. (See Tables A.1 - A.39)
5.1 FAILURE COSTS ANALYSIS During the irrigation construction, several nonconformances were observed. The
causes of these nonconformances varied from material defects to workmanship
errors. Several nonconformances occurred also in the design stage. In order to
convert the data of the nonconformances to monetary units, technical analysis,
quantity calculations, unit prices of the public sector, accounting records and
estimates are performed. Since the calculations in this study aim to identify the own
costs of the contractor, the utilized unit prices are profitless.
Also, the costs coming from the delays in the work schedule due to the failures are
considered in the calculations. These are calculated by considering the daily
44
overheads of the construction site and the design office and the penalty for each
delayed day after the end of the permissible construction period. According to the
contract, daily delaying penalty is identified as 0.03% of the contract price. The
calculations of the overheads are carried out on the basis of bookkeeping.
Overheads for construction and for the design office are treated and evaluated
separately. As it can be seen in Table A.1 and Table A.2, the overheads involve the
costs for the personnel, nourishment, energy, communication, etc., even if no work
is done. These overheads are shown in the related tables firstly for month to month,
and then the daily overheads are found by dividing the total monthly overhead to the
corresponding numbers of calendar days in the considered month. Thus, the cost for
each delayed day is determined by considering both the delaying penalty and the
overheads for the construction site and for the office. The daily delaying penalty of
0.03% of the contract price for each delayed day corresponding to a contract price
of 4,820,000 $ is found as 1446 $/day as calculated in Chapter 4.
For the calculations in USD, exchange rates of selling for one USD announced at
the beginning of the years 2002 and 2003 by the Central Bank of Turkey were
utilized, which were 1,447,714.-TL and 1,656,389.-TL respectively.
5.1.1 Nonconformances at Design Activities
As a main process, the design works can be divided into three subprocesses, as
surveying, mapping, and designing.
Before every design in the office is going to be made, the topographers measure the
necessary coordinates and elevations on the field. Upon getting the data, mapping
works are generated by the survey engineers of the design group. The next process,
designing, starts by the aid of those maps.
For this project, the design engineers completed 708 drawings and according to the
contract, the total cost of them to the contractor is approximately $ 155,000. Also the
contract states that the expenses for the surveying and mapping activities are
$ 82,500. For simplicity, in the cost calculations all of the design, mapping and
surveying activities for each final drawing are evaluated as equal in price.
Consequently, the cost for each drawing is calculated as follows:
45
Total Surveying and Mapping Cost for 708 Drawings = $ 82,500
Surveying and Mapping Cost For 1 Drawing = $ 82,500 / 708 = $ 117
Total Designing Cost for 708 Drawings = $ 155,000
Designing Cost for 1 Drawing = $ 155,000 / 708 = $ 219
8 Nonconformance Reports were issued by the quality group for the design works.
The costs of design nonconformances (DNCs) are classified as internal and external
failure costs according to the quality cost concept and the conditions are listed as
follows:
DNC – 1: In the design of the project, some of the canalet routes passed through
private areas, which created expropriation problems. Therefore, the drawings of
some routes in the network were revised, which are P2-Y3, P2-Y5-9, P2-Y10, P2-
Y3-6, and P2-Y3-4-1. Besides these revisions, two of the routes, which are P2-Y9
and P2-Y15, have cancelled due to the disagreement with the farmers. As a result,
22 drawings were revised and 12 drawings were scrapped. For the revisions, the
design group spent 13 days and some of the delays affected the schedule of the
construction works, which generated overheads and penalties. The cost of the
nonconformance can be classified in internal failure costs as scrap and rework.
However, if the expectations of the farmers have been asked throuh meetings at the
beginning of the design stage according to the Communication Procedure, there
have not been such problems and time losses.
For calculations, the months at which these failures were occurred are shown in
Table A.3 indicating the routes. In this table, numbers of revised and scrapped
drawings for each of the routes are also given. Using the unit cost for one drawing
calculated above, daily delaying penalty, and the daily overheads corresponding to
the related month given in the Table A.1, the monthly costs for this nonconformance
are calculated.
DNC – 2: In the construction region, there are several creeks and the biggest is the
Gebiz Creek. When the canalet routes were designed, one of the lines, P2-Y5-1,
passed nearby the Gebiz Creek. Especially at the beginning of the spring season,
melting of the snows and the excess rainfalls caused flooding problems in the area.
46
In March 2002, just after the construction of the line P2-Y5-1 along the creek, the
flood took place and lots of canalet members were damaged. Although the design
group had being aware of the flooding possibility of the creek, they did not get the
existing statistical data for the area. In fact, employer specified in his contract
documents that the designer of the contractor should evaluate the general
geological and environmental conditions and should take the necessary precautions
according to the Contract Review Procedure. By ignoring the contract conditions,
and not checking the design for the existing conditions specified in the Design
Control Procedure, input stage of the design failed and the design needed to be
revised. As a remedy, the design group proposed to construct stone fills in some
parts instead of changing the route.
In Table A.4, the cost calculations are given for this nonconformance and the cost is
considered in the internal failure costs as rework. In these calculations, the number
of the damaged canalets and the damaged footing types on the route of P2-Y5-1 are
indicated and the lengths of these members are shown. Using these total lengths,
costs for the damaged products and reworks are obtained by using the profitless
unit prices about the production and installation for each type of members given by
the Turkish State of Hydraulic Works in 2002. The costs required for surveying,
mapping, and design facilities in order to determine new routes and the delaying
costs are added to the costs for the damaged products and reworks shown in Table
A.5. The construction site overheads corresponding to the months at which the
failures occurred are taken from the Table A.1.
DNC- 3: 16 nonconformances were reported for the surveying processes, which are
mentioning about the deficiencies for the survey parameters. The surveying
members of the design group ignored to measure some coordinates which are
required for the design. It was observed that the topographers did not know exactly
what they should measure for an irrigation project. The problem was solved by
organizing two meetings and providing more communication between the surveying
technical staff and design engineers according to the Communication Procedure.
The meetings also included educational parts, as described in the Training
Procedure. At these meetings the design engineers explained exactly what they wait
from the surveying technical staff. Delaying in the design activities caused
overheads for the design group as an internal failure cost for reinspection, and it is
47
calculated in Table A.6. Since the delays did not occur over the long periods, their
effects on the construction work schedule were neglected. In the related calculation
table, the deficiencies and the caused delays are given with the related months. As
the result of the multiplication of these delays given in the form of days and the daily
design office overheads with respect to the months given in Table A.2, the total
monthly failure costs are obtained.
DNC – 4: Completion of the design on scheduled program is crucial for optimum
timing of the project. In the first eight months, the final drawings were not ready on
time several times. This caused delays in submission and approval of the employer
who requested minor changes in the format of the drawings. So, the construction
group was forced to commence as soon as they received the drawings. This
condition had impacts on the material and workforce logistics, which affected the
quality on negative sense. Moreover, it had impacts on the quality control and
assurance activities directly. Improvements were observed for the nonconformance
in time by utilizing the Design Control Procedure. The construction works were left
over the schedule, and it caused to an increase in the overheads. The cost of this
nonconformance is calculated in Table A.7 and it is evaluated in the external failure
costs as employer dissatisfaction. In this calculation table, the distribution of the
delays with respect to the months is given. Each of the delays is also shown in the
form of days. The monthly failure costs are obtained by using the daily delaying
penalty calculated before and the daily construction site overheads on the basis of
the months given in Table A.1.
DNC – 5: Although the specifications for the canalet networks notify to put tertiaries
at left and right sides of the secondaries for every 500 m, the design group ignored
this specification and some of the routes have been constructed not based on this
information. Due to the shortage in the time for the submission of the drawings to
the employer, the design group submitted the drawings without checking this detail
and they were submitted. Actually, after the submissions, the design engineers
could check the critical control points immediately related to the Design Control
Procedure, which they may ignore and could revise as required before being applied
in the site. This led to remobilization costs as rework for internal failure costs which
include allocation of a truck, an excavator, and a crane. Hence, the construction
group was forced to turn back to reconstruct the completed parts after the deficiency
48
was observed. To eliminate the occurrence of further possible problems, an
educational meeting was arranged between the design and construction groups
according to the Communication Procedure.
The costs of remobilization are calculated in Table A.8 as rework in internal failure
costs. In the remobilization cost calculations, the formula for the hourly
remobilization cost of the equipments, given by the Turkish Ministry of Public Works
and Settlement is used. The formula is as follows:
Hourly remobilization cost of the equipment = 0.02 x N / n (5.1)
where N is the purchasing price of the new equipment and n is the work time for the
construction equipment in one year in terms of hours. The value of “n” is accepted
as 2000 hours for the cranes, excavators, and trucks by the ministry. “N” values are
obtained from the unit prices for these equipments given by the same ministry in
2002. These unit prices for crane, excavator, and truck are $ 128,670, $ 71,879, and
$ 12,866, respectively. Thus, putting these values into Equation (5.1) the hourly
remobilization costs are calculated and given in Table A.8. Moreover, the total
worked time in days for a route for both of the two remobilizations are also given in
this table. Multiplying these worked time by 8.5, which is the daily working hours, the
total worked time in hours are obtained. Multiplying the hourly remobilization costs of
the equipments and these total worked time in hours the total failure costs with
respect to the months are obtained.
DNC – 6: A calibration error made in one of the total stations was observed as a
nonconformance after the calibration reports have been developed. The accuracy of
the measurements for the drawings is in the responsibility of the design group. In
order to adjust the given drawing data on site for the applications, the construction
group had lost time, which caused delays in the work schedule. The cost of these
delays are calculated in Table A.9 for the first two months and listed in Table A.31 in
the internal failure costs as a retest because of the deficiency in the calibration. In
the cost calculations of the calibration deficiency of the total station, the average
daily delay in the schedule due to adjusting drawing data on the site is estimated as
0.5 hour. By taking the daily work as 8.5 hours, estimated average daily delay in the
work schedule in days is found as 0.059 day. By using the estimated average daily
delay, the estimated average monthly delay can be found in terms of days as 1.8
49
days. Using the daily overheads in Table A.1 and the daily delaying penalty, given in
the contract, the cost of the calibration deficiency is obtained.
Putting Calibration Procedure into practice in the mid of the third month, all of the
surveying equipment were calibrated. Yearly calibration plans were prepared for two
calibrations in a year. In the plans weekly periods in a year were indicated for each
of the alienable equipment, and the equipments were taken from the site and sent to
calibration according to this plan.
DNC – 7: The drawings, prepared according to specifications, have included chutes
for the head differences. If a canalet member enters in a structure, there is no
requirement for constructing a footing. The design group was responsible to give the
number of the footings which will be constructed at each canalet route. The
drawings were submitted to the construction group and the decrease in number of
footings, because of presence of a number of chutes, was not taken into
consideration. As a result, the construction group arranged the required materials
and the work power according to these amounts. However, during the process
control in the field, the quality management group observed the excess amounts of
footings. A nonconformance report was prepared and forwarded to the design group
according to Corrective and Preventive Actions Procedure. The design group then
prepared a checklist for further implementations according to the Quality Records
Procedure.
The unnecessary loading and transporting works can be evaluated as a scrap, the
cost of which is calculated in Table A.10 in internal failure costs. In this calculation
table, numbers and types of the excess footings are given with respect to months.
Moreover, the saddle types transported to the site to be used on the footings are
also given. The numbers of saddles are equal to the numbers of excess footings.
The weights in terms of tons for each type of the footings and saddles are given in
the table. The unit prices per tons of loading, unloading and transporting the footings
and saddles given by the Turkish Ministry of Public Works and Settlement in 2002-
2003 are also presented in this table. The failure costs during the months are
calculated by using the total weights and the unit prices.
50
DNC – 8: After some of the drawings were completed and submitted for approval,
the drawings of routes P2-Y12 and P2-Y13-1 were sent back by the employer who
requested an economical comparison between canalet network and pipeline for
these routes since the topography of these routes are very inclined. The employer
proposed to use HDPE type pipes as alternative to canalet network. After the design
group carried out an economic analysis, it was observed that a network composed
of HDPE 100 pipes would be more convenient. Calculations for the pipeline system
were fulfilled, all the drawings were revised and new drawings for the pipeline were
prepared. However, if the design group asked the advises and expectations of the
employer before each design part of the network according to the Design Control
and Communication Procedure, and these reworks would not occur. The design
group worked on the new drawings for 8 days and construction group was delayed
for these revisions 2 days in the work schedule. The costs of these redesigns and
the overheads because of these delays are handled as external failure costs of
complaint adjustments and they are calculated in Table A.11 by using the given
overheads in Table A.1. The cost of redesigns is calculated by multiplying the
number of redesigned drawings, given in Table A.11, by the cost of one drawing.
The failure costs in the design activities are summarized in Table A.31 indicating the
internal and external costs. In this table, the total monthly failure costs for each of
the nonconformances are involved.
5.1.2 Nonconformances at Construction Activities
The construction activities include two kinds of main processes; supplying the
construction materials and the civil works. These nonconformances can be divided
into two groups as Material Nonconformances (MNCs) and Civil Works
Nonconformances (CNCs) as follows:
Material nonconformances have been observed in 6 cases. These cases are
explained as follows:
MNC – 1: Cracks, deformations, and dimensional nonconformances were observed
on wooden elements used for formworks of footings and system structures. At the
beginning, the purchased materials were not checked for the construction
51
conformance. Only one employee was responsible for counting the coming
materials and he did not have the sufficient knowledge on the construction
materials. By the means of the Training Procedure and according to the Control of
Non-conforming Product Procedure, the employee was trained for the critical checks
when the construction materials were brought to the site. The employee learned the
typical dimensions of the necessary formwork elements for the construction of the
footings and the system structures. After the training, the cost of the defective
products received by the contractor decreased considerably. In the 11th month, the
supplier of the wooden elements was changed according to supplier evaluation
report of the Assessment of Supplier Procedure. The cost calculations of these
nonconformances are given in Table A.12 and the cost is defined as internal failure
cost of scrap. In the related table, the defective wooden elements and their amounts
are given in terms of m3. The costs of the defective wooden elements with respect to
the months are calculated by using the unit rates for timber given by the Turkish
Ministry of Public Works and Settlement in 2002 and 2003.
MNC – 2: For a routine daily work, insufficiency of the concrete aggregates and
cement in the stocks were reported three times. In each of the cases, the concrete
works were delayed for half a day. This situation affected the work schedule directly.
Failures with respect to their occurrence months are shown in Table A.13. The
problem was solved upon preparing a chart showing the minimum stocking levels of
the materials according to the Handling, Storage, and Delivery Procedure. A quality
control engineer was assigned to control these levels. The cost of these delays is
handled as retest of the internal failure costs and calculated in Table A.13. In these
calculations, the daily delaying penalty in the contract and the overhead costs in
Table A.1 were utilized.
MNC – 3: Because of the inconvenient storage of cement, reinforcement steel and
canalet members, three non-conformances were detected. It was observed that
some bags of cement, canalet members, and reinforcement steel were
inconveniently stored because of insufficient protection from the external
environmental conditions. The occurrence months of these nonconformances are
given in Table A.14. According to Handling, Storage, and Delivery Procedure, the
list of stock conditions of such kind of materials were formed by considering their
characteristics. The stocking and stacking conditions were checked regularly by the
52
quality control engineer according to Inspection and Testing Procedure besides
being checked by the quality manager during the controls according to Internal
Quality Audits Procedure. The cost of the scrap of the materials is calculated in
Table A.14 as an internal failure cost. In the calculations, the unit rates and unit
prices for cement, for reinforcement steel and for the canalet Type 280, given by the
Turkish Ministry of Public Works and Settlement, were utilized.
MNC – 4: The bituminous cords, which are used between two successive canalets
in order to provide leakage proofness, were produced in the bituminous cord
workshop by the construction group. The specifications notify that the bitumen of the
cord shall not flow in hot weathers and shall be rigid enough to resist the weight of
the joined canalets for protecting the hydraulic continuity between the adjacent
canalets. However, in the controls and audits, deficiencies were observed in the
bituminous cords, both in the stocks and over the canalets due to the high
temperature at the region. 65 cords were found as defective in the stocks, and 11
defective cords over the canalets were replaced including the reworks of the canalet
installation. These defective cords are given in Table A.15 according to months at
which they were realized. The cords, which were taken out from the completed
canalets, were also given separately. Besides these, the canalet types which were
subjected to reworks and the types of the defective cords are given.
A technical standard was developed to inspect the production quality of the cords
according to the Corrective and Preventive Actions Procedure. Subsequently, the
production works were carried out with respect to this standardized analysis and
controlled by the quality control engineer. Improvements were observed in the
production process.
The costs of the scrap, reworks and corresponding delays are evaluated as internal
failure and they are calculated in Table A.15. In the calculations of the canalet
installation and cord production costs, the unit prices per unit length in m given by
the Turkish State of Hydraulic Works in 2002 are used. Multiplying the lengths
according to the types of the materials by these unit prices, the failure costs for this
nonconformance are obtained. The delaying costs due to the effect of this
nonconformance over the working schedule is added to the failure costs from month
to month. In the determination of the delayed time, the required time for installing a
53
canalet member given in the contract is used. In order to do this, the permissible
construction period given in the contract, which is 763 days, is divided by the total
numbers of the canalet members in the project, which is found by dividing 116485 m
by 5 m to obtain 0.03 day/member. This value is multiplied by the number of the
canalet members which are replaced in the considered month and the result is
multiplied by the daily overheads for that month and the delaying penalty.
MNC – 5: The control engineers of the employer checked regularly the installed
canalet members. The results of these controls are as follows:
• capillary cracks inside and outside of the members in 14 canalet members;
• separation of the reinforcement steel from the concrete in 6 canalet members;
• production deficiencies in 2 canalet members, which influence the roughness of
the member and constraint the flow of water.
In Table A.16, the number of the defective canalets is given according to the months
at which they were realized and according to the types of the canalets. It was
obvious that most of these damages were generated in the production stage in the
canalet plant. However, the construction group neglected to control the canalet
members when they were receivied from the plant. The defective members were
replaced with the sound ones and appraised as scrap. Actually, at the beginning if a
quality control technician had been assigned to check the canalets at the delivery,
there would not be scraps in such amounts. The assigned technician was trained at
first in respect of the Training and Inspection and Testing Procedures about the
project, construction methods, used materials, types of canalets and critical control
points to be checked before using or receiving a canalet member. He has given a
check list to be followed for every delivery according to Quality Records Procedure.
The reworks required for the defective canalets which must be replaced caused
delays in the working schedule. For the cost calculations of these delays, the same
value of 0.03 day/member, which is calculated and used in MNC-4, is used. By the
mean time, besides the overheads and penalties due to these delays, for the
calculations of the rework costs of the defective canalets, the amounts of the
damages which were realized throughout the year are indicated monthly by giving
the types of the canalets and the unit prices for producing and installing given by the
54
Turkish State of Hydraulic Works are used. The costs of these reworks and delays
were found after the products had been shipped to the employer. Hence it is an
external failure cost in the subcategory of warranty charges. These costs are
calculated in Table A.16.
MNC – 6: According to the Assessment of Supplier Procedure, the subcontractors,
who are responsible for the transport of the construction materials, should follow
Handling, Storage, and Delivery Procedure. The construction materials are
inspected regularly by the site engineers whether or not they are delivered properly
at the right time. It is obvious that the problems in the deliveries will affect the
subsequent steps directly. In one year period, three nonconformances were
observed in the transport of the construction materials. In two of them, the
reinforcement steel and HDPE 100 pipes arrived late to the construction site one
day and two days, respectively. In the third one, some of the HDPE 100 pipes were
scuffed and scratched outside during loading and transporting. Inspecting and
evaluating the condition according to the existing specifications through the
Inspection and Testing Procedure, the quality group concluded that these damages
do not affect the serviceability of the pipes unless severe gouging or cutting takes
place. In general, specifications notify to repair or remove the pipes which are
gouged to depths greater than 10% of the wall thickness.
Late deliveries created delays in the work schedule, which is included in the
category of internal failure costs as avoidable process losses. According to
Assessment of Supplier Procedure, the common evaluation of the quality group and
the construction group was to change the transport subcontractor who is responsible
for transporting the HDPE 100 Pipes. The cost calculations of this nonconformance
are given in Table A.17. In the calculations, delays in terms of the days and daily
delaying penalty and the daily overheads corresponding to the related month taken
from the Table A.1 are multiplied.
Civil works nonconformances were observed in 9 cases. These cases are explained
as follows;
CNC – 1: In one year period, 17 stability failures took place in the installation of the
footings. The problem was observed mostly after the installation of the canalets over
55
the footings, which caused the elevation differences between the adjacent canalets
or demolitions during placing. Including the item of checking the stability of the
footings before the installation of the canalets in the control instructions into the
Process Control Procedure, number of occurrences of these failures was
decreased. Consequently 6 failures were found before the installation of the
canalets and the footings were strengthened. However, in the remaining 11 failure,
there were 5 canalets and 4 footings damaged. Replacing the members and
improving the elevation differences brought about scrap, reworks and delays in the
work schedule, costs of which are calculated as internal failure in Tables A.18 and
A.19. In the calculations, it is clarified that either reinstallation or replacing is
involved by the reworks and to which and to what types of the members rework was
applied in that month.
Rework costs are calculated using the unit prices for producing and installing of
different types of members given by Turkish State of Hydraulic Works in 2002 and
2003. In order to find the total failure costs in the months, the delaying costs caused
by these reworks are calculated same as the calculation in MNC-4 and they are
added to the rework costs. In the calculations, the delays coming from the
strengthening works are negligible.
In the construction process of the system structures, 8 nonconformances were
reported in 3 cases for the concrete works. These cases are as follows:
CNC – 2: Some segregation events were observed because of inappropriate
vibration and delayed pouring of the concrete from the mixer. One of the
segregation was so important that a concrete wall of the dividing structure of P2-
Y14-1, located at 0+239,02 km on the route of P2-Y14, was demolished and
reconstructed by the request of the employer. The other failures were accepted as
harmless and the concrete surfaces were repaired by mortar works. Since the
mortar works are partial and in low quantities, they are neglected in the cost
calculations. The reconstruction of the wall delayed the site works for a half a day.
The failure cost of the reworks and delay are accepted as external in returned
material category and it is calculated in Table A.21. For the computations of reworks
in respect to the drawing of the demolished wall given in Figure 5.1, the quantity
calculations are made for reinforcement steel works, formworks and concrete works
57
in Table A.20 and the total amount found is multiplied by the unit prices for related
productions given by the Ministry of Public Works and Settlement. Thus, the total
costs are obtained and given in the calculation table of costs. Daily delaying
penalties and daily overheads are used for the delay costs which are added to the
total costs.
CNC – 3: Inappropriate slump values in the checklists of the concrete pouring works
for the slump test were recorded 3 times. This belongs to the concept of the
Inspection and Testing Procedure. Due to the high temperature observed at the
region, especially in the summer season, the slump value should be between 12
and 15. However, the results of the test indicated that the consistency of the
concrete was quite dry at two times and watery at one time. At the first
nonconfarmance to the consistency as dry, the concrete was poured by adding
water by the instruction of the quality control technician. This caused to reduce the
strength of the concrete. Observing the fault in the internal audit, an instruction
paper was prepared by the quality manager as the conditions to conform at the
slump tests and a training program was given on the concrete works to the site
engineers, quality control engineer and technicians. Evaluating the condition and
concrete test results, the quality manager and the site manager concluded that there
was no need to reconstruct the poured members. Therefore, there was not any
additional cost for these nonconformances.
CNC – 4: In the reports of the cubical strength test, one deficiency was observed for
the compressive strength of concrete in one of the siphon outlets. The structure was
not accepted by the quality manager and the required construction works were
repeated. The reason for the failure can be said as the negligence in the control for
the dosage of the cement or water/cement ratio. In the training program on the
concrete works, the importance of the concrete strength was taken up and handouts
were distributed. These handouts included the 28-day compressive strength and the
required minimum cement dosage for each type of the system structures. Also, it
was remembered to control the dosages and water contents and to record in the
concrete checklists as instructed in Process Control, Inspection and Testing and
Quality Records Procedures. The reconstruction of the structure was delayed the
site works for a day and the costs of rework and delay are calculated in Table A.23.
The calculations are made same as described in CNC-2. The quantity calculations
58
required for the structure given in Figure 5.2 are performed in Table A.22. The
calculated costs are treated as rework costs of internal failures.
In the construction of the system structures, like chutes, elbows, siphons, etc., 4
nonconformances in 2 cases were reported for the formworks. The cases are as
follows:
CNC – 5: The technical specifications notify that stripping time is 14 days for chutes
and elbows and 7 days for inner form and 2 days for outer form of siphons. In the
internal audits, 3 nonconformances for the stripping times were observed. In two
cases the forms of two elbows were stripped in 9 days and 12 days, respectively,
and in the other case, the inner forms of a siphon were stripped in 4 days. By
inspection, the detrimental effects of stripping in the cases of elbows were not found
as critical to require a demolition for the structures, but for the case of the siphon,
located at 1+028, 62 km on the route of P2 Main Canalet, the project manager
requested the reconstruction of the siphon to get rid of the effects of early stripping
on the roughness. By the aid of the concrete works checklists of Quality Record
Procedure, this kind of nonconformances can be eliminated for possible future
occurrences. In the first weekly site meeting, the technical staffs were warned to
check systematically the stripping times through these quality records. The
reconstruction of the siphon caused rework costs as internal failure and delayed the
site works for a day. The calculations of these failure costs are given in Table A.25
by considering these reworks and delays. The calculations are made same as
described in CNC-2. The quantity calculations required for siphon given in Figure
5.3 are performed in Table A.24.
CNC – 6: The formwork instructions notify that the technical staff should check the
dimensions of the installed concrete forms before the concrete is poured. Quality
control engineer and the employer detected 3 nonconformances in the dimensions
of the formworks. Two of these nonconformances were neglected after taking the
opinions of the control engineers. However, the third one which is about the wall
formworks of the inlet structure for the chute with pipe, located at the 0+073, 57 km
on the route of P2-Y5, was decided as inappropriate for concreting. The pouring
process was not allowed to begin till making the wall forms fit for it, where the
longitudinal dimensions of the forms were measured 12 cm less than the one
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required in the related drawings. The Process Control Procedure made it possible to
perceive and correct the fault and to prevent the possible failure before the
subsequent processes.
The reform works, cost of which is calculated in Table A.27 in the internal failure
category, were started and completed in the same day by over-hour working and did
not cause any delay in the schedule. The drawing which belongs to the reformed
structure is also given for the cost calculations in Figure 5.4. Using this figure, the
required quantity calculations are performed in Table A.26, and the calculated
amount is multiplied by the unit prices for the formwork given by the Ministry of
Public Works and Settlement.
CNC – 7: Use of HDPE pipes in the network oriented the quality management team
designating the required instructions and the checklists as defined in the Process
Control and Inspection and Testing Procedures. Since the most critical subprocess
of HDPE Piping is the butt welding, the instructions include mainly the critical check
points at the butt welding and the checklists were get filled according to these
instructions for every job of welding. Although the controls by the quality control
engineer and the site engineers reduced the welding failures in considerable
amounts, some deficiencies were observed in the process after the tests because of
nonconforming the cooling and heating times in the given pressures at joining the
butts. The 14 defective weldings generated cost of correction and accepted as
rework in the internal failure costs. Being independent work in the schedule, the
reworks for the piping did not cause any delay. The cost of the nonconformance is
calculated in Table A.28. For calculations, numbers of defects in butt welding are
shown in the related table with according to the months at which they occurred.
Moreover, the table contains also the diameters of the butt-welded pipes. Total
failure costs are calculated by using the unit prices for different diameters of pipes
given by Turkish Bank of Provinces in 2002 and 2003.
CNC – 8: The nonconformances in the excavation and backfilling works were
reported almost as the failures of the machinery, which was only sent to the
maintenance if they had any failure at work at the beginning of the quality
management system. These failures brought about stops in the works and delays in
the work schedule. These delays are given in Table A.29 in terms of days.
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By using the Maintenance Procedure, preventive maintenance plans were prepared
for every machine in site and the failures and corresponding delays were reduced.
These machines are one excavator, three loaders, one grader, one roller, and three
trucks for the earthworks. One employee, who is well-informed about the machines,
was assigned to follow these maintenance activities. According to the planned
periods the machines were taken from the site and sent to the maintenance
services. The operators were trained for the basic maintenance techniques and they
were given basic rules to use their machines more productive. Also, instructions and
checklists were prepared and distributed to the operators. Attention should be paid
to these checklists and they should be filled for every week while controlling the
machines about their conditions. 13 failures were observed in the machine failure
reports, caused avoidable process losses as internal failure cost, which are
calculated in Table A.29. For the calculations, the daily delaying penalties
concerning the delays occurred and the daily overheads corresponding to the month
at which the delay occurs are used.
CNC – 9: The technical specifications clarify the joint spaces between two
successive canalet members as minimum 0.5 cm and maximum 1.5 cm. According
to this criterion the installation works were checked as defined in the instructions of
the Inspection and Testing Procedure, and some faults were detected. The amount
of the faults decreased in time by the aid of the process control, but it is never
possible to get zero defects, which is also supported by the cost of quality concept.
The internal failure costs of these nonconformances are calculated in Table A.30. In
the calculation table, the types and the number of the reinstalled canalets are
shown. In order to calculate the costs of these reinstallations the unit prices given by
the Turkish State of Hydraulic Works are used.
The failure costs in the construction activities indicating the internal and external
costs are summarized in Table A.31. In this table, the total monthly failure costs for
each of the nonconformances are involved.
5.2 PREVENTION AND APPRAISAL COSTS ANALYSIS The decision of implementing the quality management given by the top
management of the company was an absolute requirement of the management
64
responsibility principle. The reasons behind this decision were to serve in better
quality and to improve productivity in the construction industry, to improve market
position in the current global competition and to reduce the quality costs, which are
also the quality objectives of the company.
The next step was to decide on the selection of a quality management consultant,
who will assist in defining the quality policies and putting the quality management
system into practice by considering the conditions peculiar to the project. The
consultants consider in general a four – month period training as enough to form a
quality management system and to follow the implementations. The organization
paid to the consultant for four-month assistance $ 2500, including only the training of
the quality manager about the quality management system and implementations
and one training program for each of the design and construction groups about the
system requirements. This payment is handled in a separate row in Table A.38 as
the quality system design and implementation costs of preventions.
The formation of the quality management system is divided into two phases,
documentation and practice. The documentation phase includes mainly the
preparations of the quality handbook, the required procedures and instructions and
the formats of the corresponding quality records, like checklists, forms, plans, tables,
etc., considering the characteristics of the project. The top management has
assigned a quality manager, who is a civil engineer, to follow and control the
documental and practical activities at full authority according to the management
responsibility principle. The quality manager has worked together with the consultant
and was trained by him about the structure and the conceptual requirements of the
system. In the mid of March 2002, writing of the quality system documents were
started and they formed the quality handbook, which includes the quality policies,
missions, the brief contents of the project and the procedures, definitions, services,
processes, general formats of the documents, and the quality objectives. The quality
manager, who is the only responsible person for preparation of the quality handbook
and the first responsible for the procedures, instructions, and the quality records,
assigned a quality control engineer, also a civil engineer, for his assistance to
prepare, revise and control the documental part of the quality system in respect of
the Document and Data Control and Quality Records Procedures.
65
The control engineer began his works in April 2002 and he was the second
responsible for the preparation of the procedures, instructions, and the quality
records. For simplicity, the monthly personnel expenses, salaries, insurance, etc., of
the quality manager, quality control engineer and technician are inserted in a row in
the prevention costs throughout one year in Table A.38. The other costs are the
costs of consumables associated with the documentation phase, like writing and
saving materials, copying, etc. Although the preparation part of the documentation
was completely finalized in August 2002 with the quality records, the revisions had
been continued intensively over the documents, especially about the job instructions
and the quality records, by perceiving the deficiencies in the practice. The monthly
distribution of the consumables costs for the documentation according to the
accounting records are given in a summary table (Table A.38).
During the preparation of the quality management system documents, the practice
phase of the system was started at the end of March 2002 with training programs.
The first training program was for the design group about the quality management
system by the consultant, including the requirements of the quality management
system. The program was also repeated for the construction group. The second
training program, given to the design group by the quality manager, was given in
June 2002. The program was intensed over the Design Control and Contract
Review Procedures. This program was required particularly in order to eliminate the
nonconformances, like DNC-2 and DNC-5. The last program for the design group
was carried out by the consultant in July 2002 considering the Document and Data
Control and Quality Records Procedures. The training provided to the design group
to earn an approach for preventing the nonconformaces, like DNC-4 and DNC-7.
For a total training period of 5 days, the expenses can be listed as the overheads in
the design office, given in Table A.2 as daily for each month, and the extra training
charge of the consultant. The cost calculations are given in Table A.32.
The construction group was also in need of training for the quality management
system. The first training, in April 2002, was about the requirements of the quality
management system. The second training program was fulfilled in May 2002 by the
quality manager to reduce the number of nonconformances in canalet installation
works and formworks, like CNC-1, CNC-5 and CNC-8. In this training the inspection,
testing, process control and design review activities of the quality management
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system were explained in detail and examples were given from the existing failures
of the canalet installation works and formworks and also from the possible ones,
related to concrete works. However, after the nonconformances on the concrete and
formworks, CNC-2, CNC-3, and CNC-4, a more effective training was applied to the
quality control engineer, site engineers, and the technicians in June 2002 by the
quality manager, including mainly the concrete works. The workers have included
only into the first training and the other trainings were given to the technical staff.
Therefore, the works were stopped due to the first training only one day. The
expenses, calculated in Table A.32, can be considered as the overheads of the
construction site and the delaying penalty for one day.
The training procedure requires also individual trainings, which were subjected to
the quality control engineer, technician and the employee who is responsible for the
storage. Other than the training programs given by the consultant and the quality
manager to groups, the quality control engineer was trained in the fifth month by the
quality manager particularly for the inspection and testing, process control and
quality records procedures and the stock conditions including the minimum stock
levels, in respect of the Handling, Storage, and Delivery Procedure. In the fifth
month training, which was held by the quality manager, was desired to get the
employee responsible for the storage to comprehend the conditions for the delivery
and the storage, appropriate for the Handling, Storage, and Delivery Procedure.
These two additional training programs caused not an important overhead to
consider in the prevention costs calculation.
The necessity for inspection of the incoming materials for the canalet members has
directed the quality manager to assign a quality control technician in July 2002. The
technician, who was unfamiliar with the quality management system, was trained by
the consultant about the implementation of the system and by the quality manager
about the project, construction methods, used materials, types of canalets, and the
critical control points to be checked before using or receiving a canalet member. The
charge of the consultant for the training is considered in the training cost
calculations in Table A.32.
According to the Maintenance Procedure, preventive maintenance activities
including a training program for operators were generated as described in CNC-8.
The preventive maintenance plans were prepared in the fourth month as to take the
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machines to the maintenance two times a year, firstly in the sixth and seventh
months and secondly in the eleventh and twelfth months. Also, a training program
was given by the technical person of the maintenance subcontractor without a
charge on the request of the quality manager. The costs of the maintenance
activities for the months are given in Table A.33 on the basis of the accounting
records.
The Calibration Procedure, which discuss to plan and act for the calibration activities
of the measuring devices, was implemented in the second month by taking the
necessary preventive measures as explained in DNC–6. The devices were planned
for calibration in the third and ninth months and the activities were held by a certified
calibration company in the planned periods. The calibration costs are given in Table
A.34 on the basis of the accounting records for the months of calibration.
According to the Communication Procedure, meetings are accepted to be the most
effective tools for communication. Therefore, meetings were organized for
prevention and correction of the nonconformances between different internal groups
throughout the year. The first meeting, required for the design activities, was
organized by the design group on the request of the quality manager in the third
month. The design engineers and the technical staffs of surveying came together in
the construction site to prevent further deficiencies in surveying activities, which will
influence the design activities directly. This meeting was repeated for the same
purpose in the seventh month between the same groups. In addition to these
meetings, the design group organized meetings with the local farmers in the fifth and
tenth months and with the construction group in the fifth month. All of these
meetings were carried out in the construction site and organized in order to prevent
the possible nonconformances, explained in the design part as DNC -1, DNC-3,
DNC-5, and DNC -8.
To learn the expectations of the employer, the design group also organized
meetings with the employer, especially after the sixth month. These meetings
continued orderly till the twelfth month and they were useful to designate the
essentials of the drawings before the action and to prevent the reworks.
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The overheads of these meetings were mainly due to the transportation costs of the
design group between the construction site and the employer’s office. These costs
are given in Table A.35 and accepted as prevention costs.
In respect of the Assessment of Supplier Procedure, supplier quality evaluations
were performed by the construction and quality groups as planned in the procedure.
These evaluations helped to determine the existing quality conditions of the
suppliers. After the common evaluation of the concerning staff, the transport
subcontractor and supplier of wooden formwork materials were evaluated as
insufficient in quality activities and eliminated from further business at least for a six
month. The replaced suppliers, which have ISO 9001 certification, began their
services at the seventh month for the transport and at the eleventh month for the
supplying of the wooden materials. However, the purchasing price differences in
their services can be considered as prevention cost and they are calculated in Table
A.36. In the calculation table, the total amounts and the costs of transportation and
purchasing of wooden elements in the months are given. Using the unit price
differences for the unit prices obtained from the accounting records, the total costs
of supplier quality evaluation for each month is obtained.
One of the most important procedures of the quality management system is the
Internal Quality Audits Procedure. According to this procedure, the organization
should conduct internal audits to determine if the quality management system
conforms to the requirements as well as documented procedures and if it is
implemented or maintained effectively. The quality manager has planned the time of
the audits as in every four months for the technical staff and ones in a year for the
whole of the organization. Since the system is to be implemented over the whole
organization in a long period of time, the audit overheads also increase with respect
to time. The first and third audits were applied only to the technical staff, whereas
the second audit was executed including the workers. The main overheads, given in
Table A.37, are considered as the costs of consumables, transportation cost of the
auditors and the overheads of the construction site and delay penalty for a half a
day in the second audit. Costs of consumables and transportation costs of the
auditors are taken from the organization’s accounting records, and the overheads of
the construction site is taken from the daily overheads with respect to the months
given in Table A.1.
69
As emphasized in the Inspection and Testing Procedure, the design and
construction processes and the coming materials were inspected by using the
checklists, visual inspection, in-process inspection according to the instructions and
recording the conditions on the checklists, applying slump tests and strength tests at
concrete works, and water test for the canalets and HDPE pipes. The cost of the
inspection and testing activities were evaluated in the concept of appraisal costs,
which include the overheads of testing, costs of saving materials required to analyze
reports and store the appraisal data. These costs are given in Table A.38 by the
heading of cost of consumables used in inspections, which are obtained by the
accounting records.
In the prevention and appraisal costs analysis, it should be stressed that the given
personnel expenses for the quality staff in Table A.38 may be equally distributed on
the concerning quality system activities; such as incoming material and in-process
verifications, evaluation of stocks, process control, quality system design,
implementation and quality audits. For simplicity, they are added to the analysis as
the assignment costs of the staff.
5.3 DISCUSSION OF RESULTS
As a result of the cost analysis, the total monthly costs of quality are obtained by
summing the failure costs, prevention costs and appraisal costs as shown in Table
A.39. Having these three elements of the model, demonstrated in Section 3.3.2, the
curves which have the quality costs in vertical and quality progress in respect of the
months in horizontal scale were obtained. The data of the quality costs, shown in
Figure 5.5, are put for trendline application.
As can be seen from this figure, as the cost of quality related activities increases in
time, the cost of failures decreases, which is in agreement with Figure 3.2. The
reason for this increment may originate from the development and the activation in
the preventive and appraisal functions in time.
70
0
5000
10000
15000
20000
25000
30000
35000
1 2 3 4 5 6 7 8 9 10 11 12
Quality Progress in Time (months)
Qua
lity
Cos
ts ($
)Failure Costs
Prevention and Appraisal Costs
Total Quality Costs
Total Quality Costs
Failure Costs
Prevention and Appraisal Costs
Figure 5.5- Cost versus Quality
Besterfield (2004) defines also the target of reduction as failure costs. The
decreasing trend of the failure costs, which are much higher than the increasing
trend of the prevention and appraisal costs, dominate also the tendency of the total
quality costs as in a reduction. Thus, it will be beneficial to demonstrate the
tendency of the failure costs separately.
The curves in Figure 5.6 show the costs of failures in the design and construction
activities monthly. Analyzing both curves, it can be concluded that the failure costs
reduce when a progress is obtained upon implementation of the quality
management. However, the distinction between the design and construction failure
71
costs is a critical point to discuss. The design failure cost, approximately twice the
construction failure cost in the first month, dominates the tendency of the failure
costs especially for the first six months. At the end of one year, the total failure cost
in the design process is still higher than the total cost of construction activities,
which covers the incoming material verification and civil works. So, it can be
concluded that the design control is more critical to implement an effective quality
management system because the other activities start with the design.
0
2000
4000
6000
8000
10000
12000
14000
16000
18000
20000
1 2 3 4 5 6 7 8 9 10 11 12
Quality Progress in Time (months)
Qua
lity
Cos
ts ($
)
Design Failure Costs
Construction Failure Costs
Design Failure Costs
Construction Failure Costs
Figure 5.6- Design and Construction Failure Cost versus Quality
Differentiating the external and internal failure costs can be another tool to guide the
reasons of the poor quality. It is easily noticed in Figure 5.7 that the costs of internal
failures are much higher than the external failures for a long period of time. They
72
can be taken down to the level of external failure costs in ten months through high
efforts of quality improvement. On the contrary of the industrial production in
factories, the construction industry is more susceptible to have internal failure costs,
where robotics and other forms of automation are almost not used during
production. Also, the construction activities are exposed to the natural conditions
more than the production in closed areas. So, the auto-control activities, such as
process control, inspection, and testing gain more importance in such an industry.
As a result, the target of reduction of failure costs should mainly cover preventing
the internal failures in the construction industry, which will also regulate the external
failures.
0
4000
8000
12000
16000
20000
24000
1 2 3 4 5 6 7 8 9 10 11 12
Quality Progress in Time (months)
Qua
lity
Cos
ts ($
)
Internal Failure Costs
External Failure Costs
Internal Failure Costs
External Failure Costs
Figure 5.7- Internal and External Failure Cost versus Quality
73
CHAPTER 6
CONCLUSIONS
Quality management, in which interests have seen increased world-wide in the last
decade, causes discussions on the effects of its implementation and the quality
concept. Concerning the effects of the quality management implementation, different
researchers have different opinions. A number of them concluded that quality
management implementation reduces the cost of poor quality in a project and has
effects on business performance of organization, whereas others stated that project
costs increase as activities related to quality assurance increase.
In order to achieve the objectives of the current study, the procedures of the world-
wide quality standard, ISO 9001, were utilized and the study started with an
extensive review of the concept and requirements of this standard. The cost of
quality literature has been adopted to construct the quality costs model. The sample
irrigation project covers the irrigation near the Aksu River in Antalya with canalet
networks, was taken into account for the case study. Upon implementation of the
quality management over the irrigation project, it became evident that the
organization had net benefits as cost and time saving and improved its performance
for the further construction projects. The methods of measuring the quality
management implementation are found flexible enough to evaluate the effects of the
quality management implementation over the other water resources projects.
Implementation of the quality management system was observed to have positive
effects on the employee and employer satisfaction, product quality and business
performance by controlling the processes, education and training of the employee,
evaluating the supplier, spreading the external and internal communication on the
employee and controlling the measuring devices and the machinery. The case study
revealed that the model for quality costs developed in this study is applicable also in
the construction industry. This model can be used by the contractors and/or the
employers of the construction industry to inspect the cost of poor quality and to
improve their quality management implementation efforts. The case study further
shows that this model can be used to self-assess the quality improvement efforts of
the organization and measure their progress over time. By using the model in
74
different areas of the project, the organization can rapidly determine the areas that
need urgent improvement.
Cost of quality data, useful as a measurement tool, can be used very effectively to
identify and prioritize improvement opportunities. First, it should be determined the
problem area using the cost analysis technique. Then, a team can be established,
composed of the quality manager, quality control engineer, site engineer, design
engineer, maintenance supervisor, and other appropriate personnel such as internal
supplier. Usually the team has sufficient authority and resources to enact corrective
or preventive action without approval of their superiors. Most of the quality
improvement projects will be directed toward reducing failure costs. Once the cause
of the problem has been determined, the team can concentrate on developing the
corrective action to control or, preferably, eliminate the problem. Follow-up activities
are conducted to ensure that the corrective action was effective in solving the
problem.
Further cost reductions are achieved by less inventory and work-in-progress costs
and reduced supervision and maintenance. The Deming cycle is used as the means
to systematically improve the methods, by focusing on the prevention and correction
of defects. This management loop given in Section 2.2 as attributed to Deming
(1986), advocates a Plan – Do – Check – Act (PDCA) Methodology for narrowing
the gap between the organization’s current performance and employer needs.
75
REFERENCES
1- Beecroft D., “Cost Of Quality, Quality Planning and The Bottom Line”, Ancaster: Beecroft Inc, 2001 2- Besterfield Dale H., “Quality Control”, New Jersey: Prentice Hall, 2004 3- Blaney H.F., Criddle W.D., “Determining Water Requirements in Irrigated Areas from Climatological and Irrigation Data”, USDA-SCS Techical Paper No.96, 1950 4- CIF, “ISO 9000:2000–Quality Management Systems Standard for the Construction Industry”, Retrieved September 12, 2004, from the Construction Industry Federation (CIF) Web Site, http://www.cif.ie, 2004 5- CII, “Cost of Quality in Design and Construction”, Austin: Construction Industry Institute Publication 10-2, May 1989 6- Deming W.E., “Out Of The Crisis”, Cambridge: MIT CAES, 1986 7- FIDIC, “About FIDIC –Policies: Quality Of Construction”, Geneva: Executive Committee of International Federation of Consulting Engineers, January 2004 8- Hansen V.E., Israelsen O.W., and Stringham G.E., “Irrigation Principles and Practices”, New York: John Wiley and Sons, 1980 9- Horne C.F., “Internet Ancient History Sourcebook”, Retrieved September 12, 2004, from the Web Site of Paul Halsall, http://www.fordham.edu/ halsall/ancient/ hamcode.html, 1998 10- ISO, ISO 9001 Standard, Geneva: International Organization for Standardization, 2000 11- Juran J.M., Dr. Frank M. Gryna, “Quality Control Handbook”, New York: Mc Graw Hill, 1988 12- Kehoe Dennis F., “The Fundamentals Of Quality Management”, New York: Chapman & Hall, 1996 13- Kızılkaya T., “Irrigation and Drainage”, (in Turkish) Ankara: Publications of the Turkish State of Hydraulic Works, 1988 14- Mutafelija B.,Stromberg H., “Systematic Process Improvement Using ISO 9001:2000”, Boston: Artech House, 2003 15- Pereda H.F., “Quality Norm ISO 9001”, Retrieved January 11, 2005, from the Web Site of Information Service of Buscadores Professionals, http://www. buscarportal.com, 2000
76
16- Schoonmaker Stephen J., “ ISO 9001 For Engineers and Designers”, New York: Mc Graw Hill, 1997 17- Stebbing L., “Quality Assurance”, New York: Ellis Horwood, 1993 18- Taylor J.R., “Quality Control Systems”, New York: McGraw-Hill, 1989 19- Terenzio U., Sbraccia A., “Types of the Prefabricated Flumes for Irrigation”, (in Turkish) Ankara: Publications of the Turkish State of Hydraulic Works, 1964 20- Tropp L., “Quality at Systime”, Retrieved January 11, 2005, from the Web Site of Systime Company, http://www.systime.net/systime-quality.asp, 2004
77
APPENDICES
Personnel ($)
Nourishment ($)
Energy ($)
Communication ($)
Total Monthly Overheads
($)
Daily Overhead ($)
1 March 2002 15300 3630 325 490 19745 6372 April 17550 4200 350 550 22650 7553 May 17550 4300 355 570 22775 7354 June 19800 4900 405 550 25655 8555 July 19800 5000 400 600 25800 8326 August 20250 5600 400 610 26860 8667 September 20250 5400 395 630 26675 8898 October 19800 4850 415 800 25865 8349 November 10425 2100 700 350 13575 45310 December 10425 2150 900 200 13675 44111 January 2003 10425 2150 825 300 13700 44212 February 14700 3500 550 390 19140 684
Table A.1 - Calculations of Monthly/ Daily Overheads in the Construction Site
78
Months
Personnel ($)
Total Monthly Overheads
($)
1 March 2002 6750 69802 April 6750 69803 May 6750 69604 June 6750 69605 July 6750 69606 August 5625 57957 September 5625 58058 October 5625 58059 November 5625 582510 December 3375 352511 January 2003 3375 351512 February 5625 5845
194187194114
220
Daily Overhead ($)
225233225232225187
113209
180200150140
210210170180
Table A.2 - Calculations of Monthly/ Daily Overheads in the Design Office
79
Months Communication and Energy ($)
230230210
Months Day Loss
Number of the Revised
Drawings
Number of the Scrap
Drawings
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 3 4 13442 2 4 755 1446 57462 6 201634 3 6 20164 2 4 855 1446 594656 3 4 1344789 6 2016101112
20428TOTAL
Table A.3 - Cost Calculations for Design Non-Conformance 1 - (DNC-1)
80 117 219117 219
117 219
Description
117 219
Revision in route of P2-Y3-4-1
Revision in route of P2-Y3Revision in route of P2-Y5-9Cancellation of P2-Y9
Revision in route of P2-Y3-6
Revision in route of P2-Y10
Cancellation of P2-Y15
Surveying and Mapping
Cost ($)
Designing Cost ($)
117 219
117 219
117 219
Months
Length of the
Damaged Canalets
(m)
Number of the
Damaged Footings
Height of the
Footings (cm)
Total Height of
the Footings
(cm)
Production Cost of the
Canalet $/m *1
Installation Cost of the
Canalet $/m *2
Production Cost of the
Footing $/cm *3
Installation Cost of the
Footing $/cm *4
Total Cost ($)
20 3 30 90 10.22 4.36 0.111 0.057 30755 10 40 400 10.22 4.36 0.111 0.057 86915 3 60 180 10.22 4.36 0.111 0.057 24915 2 50 100 10.22 4.36 0.111 0.057 236
1660
*1 - 2002 Profitless Unit Cost of the State of Hydraulic Works by job number 38.030
*2 - 2002 Profitless Unit Cost of the State of Hydraulic Works by job number 38.051
*3 - 2002 Profitless Unit Cost of the State of Hydraulic Works by job number 38.094*4 - 2002 Profitless Unit Cost of the State of Hydraulic Works by job number 38.104
Table A.4 - Cost Calculations of Replacing Canalets for Design Non-Conformance 2 - (DNC-2)
Replacing of Type 280 canalets and Type 4 footings
1
81
Description
TOTAL
Months Day LossNumber of Revised Drawings
Surveying and
Mapping Cost ($)
Designing Cost ($)
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 2 2 117 219 672
1 3 637 1446 6249
6921
82
TOTAL
Table A.5 - Cost Calculations of Redesign & Delay for Design Non-Conformance 2 - (DNC-2)
Description
Revision in Route of P2-Y5-1
Delay by getting rid of the demolition and reworks
Months Number of Deficiencies
Delays in Design (days)
Overheads of the Design Office
($)
Total Cost ($)
1 5 3 225 6753 2 233 4662 2 233 466
3 1 1 225 2252 1 232 2321 1 232 232
56 2 1 187 187789101112
2483
83
Description
Deficiency for elevationsDeficiency for coordinatesDeficiency for coordinatesDeficiency for elevations
Deficiency for coordinates
Table A.6 - Cost Calculations for Design Non-Conformance 3 - (DNC-3)
TOTAL
Deficiency for coordinatesDeficiency for coordinates
2
4
Months Day LossNumber of
the Drawings
Daily Overhead Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1
2 2 1 755 1446 4402
3 1 1 735 1446 2181
3 - 1
4
5 1 1 832 1446 2278
6 2 1 866 1446 4624
7
8 1 1 834 1446 2280
8 - 1
910
11
1215765
Delay in the submission of the drawingsDelay in the approval of the drawings
TOTAL
Table A.7 - Cost Calculations for Design Non-Conformance 4 - (DNC-4)
84
Delay in the approval of the drawings
Delay in the approval of the drawings
Delay in the approval of the drawings
Description
Delay in the approval of the drawings
Delay in the submission of the drawings
Months QuantityTotal Work
Time (days)
Total Work Time
(hours)
Re-Mobilization Cost of the
Crane ($/hour)*1
Re-Mobilization Cost of the Excavator ($/hour)*2
Re-Mobilization Cost of the
Truck ($/hour)*3
Estimated Re-Mobilization
Cost of the Workers and
Other Equipments
($/hour)
Total Cost ($)
1
2 1 8 68 1.29 0.72 0.13 0.10 152
3
4 1 6 51 1.29 0.72 0.13 0.10 114
56789101112
267
*1- Value of "N" is published by Turkish Ministry of Public Works and Settlement with equipment number 03.138*2- Value of "N" is published by Turkish Ministry of Public Works and Settlement with equipment number 03.005/2*3- Value of "N" is published by Turkish Ministry of Public Works and Settlement with equipment number 03.038/2
Description
Re -Mobilization for P2-Y11-1-3
Re -Mobilization for P2-Y3-1-585
Table A.8 - Cost Calculations for Design Non-Conformance 5 - (DNC-5)
TOTAL
MonthsEstimated Avarage
Daily Delay (days)
Estimated Avarage Monthly Delay
(days)
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 0.059 1.8 637 1446 3810
2 0.059 1.8 755 1446 3896
3456789101112
7706
Table A.9 - Cost Calculations for Design Non-Conformance 6 - (DNC-6)
86
Description
Cost of adjusting surveying parameter on site
Cost of adjusting surveying parameter on site
TOTAL
MonthsNumber
of Excess Footings
Type of the
Footing
Height of the Footing
(cm)
Weight of the Footing
(ton)
Type of the
Saddle
Weight of the Saddle
(ton)
Loading and Unloading
Cost of one Footing/ Saddle $/ton * 1
Transporting Cost of one
Footing/ Saddle to the Stock Area
$/ton * 2
Total Cost ($)
1 2 1 70 0.071 100 0.031 3.06 2.10 1.051 1 1 80 0.078 100 0.031 3.06 2.10 0.561 1 3 100 0.153 180 0.056 3.06 2.10 1.081 2 3 120 0.208 180 0.056 3.06 2.10 2.721 2 3 150 0.258 180 0.056 3.06 2.10 3.242 1 1 80 0.078 100 0.031 3.06 2.10 0.562 1 1 100 0.092 100 0.031 3.06 2.10 0.632 1 3 90 0.142 180 0.056 3.06 2.10 1.022 3 4 90 0.179 280 0.096 3.06 2.10 4.262 2 5 120 0.268 400 0.126 3.06 2.10 4.073 1 4 90 0.179 280 0.096 3.06 2.10 1.424 2 3 60 0.110 180 0.056 3.06 2.10 1.714 1 4 70 0.154 280 0.096 3.06 2.10 1.295 2 4 90 0.179 280 0.096 3.06 2.10 2.846 2 4 150 0.303 280 0.096 3.06 2.10 4.127 1 4 140 0.288 280 0.096 3.06 2.10 1.988 1 3 90 0.142 180 0.056 3.06 2.10 1.028 1 4 90 0.179 280 0.096 3.06 2.10 1.429 1 3 80 0.132 180 0.056 3.06 2.10 0.97
87
Table A.10 - Cost Calculations for Design Non-Conformance 7 - (DNC-7)
Description
" "" "
" "
Loading and Transport" "
" "
" "
" "" "" "
" "
" "
" "" "" "
" "" "
" "
" "
MonthsNumber
of Excess Footings
Type of the
Footing
Height of the Footing
(cm)
Weight of the Footing
(ton)
Type of the
Saddle
Weight of the Saddle
(ton)
Loading and Unloading
Cost of one Footing/ Saddle $/ton * 1
Transporting Cost of one
Footing/ Saddle to the Stock Area
$/ton * 2
Total Cost ($)
9 1 4 90 0.179 280 0.096 3.06 2.10 1.4210 1 1 70 0.071 100 0.031 3.06 2.10 0.5310 1 4 120 0.257 280 0.096 3.06 2.10 1.8211 1 4 100 0.191 280 0.096 3.68 2.73 1.8411 2 4 120 0.257 280 0.096 3.68 2.73 4.5312 2 4 150 0.303 280 0.096 3.68 2.73 5.12
50
*1 - 2002-2003 Profitless Unit Price Of The Turkish Ministry Of Public Works and Settlement by job number 09.019/1 *2 - 2002-2003 Profitless Unit Price Of The Turkish Ministry Of Public Works and Settlement by job number 07.006
Loading and Transport
Table A.10- (Continued)
Description
88
" "
" "
" "
" "
" "
Months Day Loss Number of Drawings
Daily Overhead Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1234
5 2 10 832 1446 6746
6789101112
6746TOTAL
89
Table A.11 - Cost Calculations for Design Non-Conformance 8 - (DNC-8)
Designing Cost ($)
219
Description
Redesign for routes P2-Y12, P2-Y13-1
MonthsDefective Material
(m3)
Unit Price of theTimber ($/m3)
* 1
Total Cost ($)
1 9 207 18631 3 207 62123 8 207 16564 6 207 124256 6 207 12426 3 207 621789 4 207 8281011 2 226 45212 1 226 226
8751TOTAL
Defect in the formwork scaffoldingDefect in the formwork scaffolding
Defect in the formwork scaffolding
Defect in the formwork scaffolding
Defect in the form material
*1 - 2002 - 2003 Unit Rates of Turkish Ministry of Public Works and Settlement for timber by material number 04.152
Table A.12 - Cost Calculations for Material Non-Conformance 1 - (MNC-1)
90
Description
Defect in the formwork scaffolding
Defect in the formwork scaffoldingDefect in the form material
Defect in the formwork scaffoldingDefect in the formwork scaffolding
Months Day LossDaily
Overhead Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
123 0.5 735 1446 1091
4 0.5 855 1446 1151
56 0.5 866 1446 1156789101112
3397
91
Description
Insufficiency of fine aggregates and cement
Insufficiency of fine aggregates
Table A.13 - Cost Calculations for Material Non-Conformance 2 - (MNC-2)
Insufficiency of coarse aggregates
TOTAL
MonthsAmount of the
Defective Materials
Unit Unit Price of The Material ($) Total Cost ($)
12 17 Bag 2 34
2 6 No 51.1 307
34 1.5 tn 190 28556789101112
626
*1 - 2002 Unit Rate of Turkish Ministry of Public Works and Settlement for bagged cement by material number 04.008*2 - 2002 Profitless Unit Price of the State of Hydraulic Works by job number 38.030 ,adjusted for 5 m long canalet*3 - 2002 Unit Rate of Turkish Ministry Of Public Works and Settlement for reinforcement steel by material number 04.253
92
Table A.14 - Cost Calculations for Material Non-Conformance 3 - (MNC-3)
Unconvenient storage of canalets Type 280 *2
Unconvenient storage of cement *1
Description
Unconvenient storage of reinforcement steel *3
TOTAL
Months Day Loss
Number of the
Defective Cords
Type of the
Cord
Type of the
Canalet
Length of the
Canalet (m)
Length of the Cord (m)
Production Cost of the
Cord ($/m)
Installation Cost of the
Canalet ($/m) *1
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
123 17 180 1.45 0.85 213 13 280 1.70 0.85 193 9 400 1.95 0.85 15
3 0.03 5 280 280 5.0 1.70 4.36 735 1446 436
4 9 280 1.70 0.85 135 7 100 1.20 0.85 7
6 0.03 3 180 180 5.0 1.45 3.80 866 1446 265
6 0.03 3 100 100 5.0 1.20 3.04 866 1446 254
7 3 100 1.20 0.85 38 7 100 1.20 0.85 79101112
1040
*1 - 2002 Profitless Unit Price of the State of Hydraulic Works by job number 38.043, 38.047, 38.051
TOTAL
Defective cords Defective cords
Defective cords (over canalets)Defective cords (over canalets)
Defective cords
93
Table A.15 - Cost Calculations for Material Non-Conformance 4 - (MNC-4)
Description
Defective cords Defective cords
Defective cords
Defective cords (over canalets)
Defective cords
Months
Number of the
Damaged Canalets
Day Loss
Type of the
Canalet
Length of the
Canalet (m)
Production Cost of the
Canalet ($/m) *1
Installation Cost of the Canalet
($/m) *2
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 1 0.03 600 5 17.10 7.11 637 1446 1841 2 0.03 400 5 12.60 5.42 637 1446 3051 2 0.03 100 5 6.94 3.04 637 1446 2251 1 0.03 280 5 10.22 4.36 637 1446 1351 1 0.03 280 5 10.22 4.36 637 1446 1352 2 0.03 280 5 10.22 4.36 755 1446 2782 1 0.03 400 5 15.75 6.78 755 1446 1792 1 0.03 100 5 6.94 3.04 755 1446 1163 1 0.03 180 5 8.44 3.80 735 1446 1274 1 0.03 180 5 8.44 3.80 855 1446 1304 1 0.03 100 5 6.94 3.04 855 1446 1195 0.036 1 0.03 280 5 10.22 4.36 866 1446 1427 1 0.03 100 5 6.94 3.04 889 1446 1207 1 0.03 400 5 15.75 6.78 889 1446 1838 1 0.03 100 5 6.94 3.04 834 1446 1188 1 0.03 180 5 8.44 3.80 834 1446 13091011 1 0.03 280 5 12.06 5.19 442 1446 143
94
Capillary cracks
Defects in roughness
Table A.16 - Cost Calculations for Material Non-Conformance 5 - (MNC-5)
Capillary cracks
Seperation of the steel Seperation of the steel
Description
Capillary cracks
Seperation of the steel
Capillary cracks
Defects in roughness
Capillary cracksCapillary cracks
Seperation of the steel
Seperation of the steel
Capillary cracks
Seperation of the steel
Capillary cracks
Capillary cracks
Months
Numbers of the
Damaged Canalets
Day Loss
Type of the
Canalet
Length of the
Canalet (m)
Production Cost of the
Canalet ($/m) *1
Installation Cost of the Canalet
($/m) *2
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
11 1 0.03 100 5 8.20 3.63 442 1446 11612 1 0.03 280 5 12.06 5.19 684 1446 150
3034
*1 - 2002-2003 Profitless Unit Price Of The State Of Hydraulic Works by job number 38.022, 38.026 , 38.030,38.033,38.036*2 - 2002-2003 Profitless Unit Cost Of The State Of Hydraulic Works by job number 38.043, 38.047, 38.051, 38.054,38.057
95
Capillary cracks
TOTALCapillary cracks
Table A.16- (Continued)
Description
Months Day LossDaily
Overhead Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
12345 1 832 1446 227867 2 889 1446 467089101112
6948
96
Table A.17 - Cost Calculations for Material Non-Conformance 6 - (MNC-6)
Late delivery of the reinforcement steel
Late deliveries of the HDPE pipes
TOTAL
Description
Months
Type of the
Canalet/ Footing
Length of the
Reinstalled Canalet
Length of the
Damaged Canalet
Number of the
Reinstalled Footings
Number of the
Damaged Footings
Height of the
Footing (cm)
Production Cost of the
Canalet $/m *1
Installation Cost of
the Canalet $/m *2
Production Cost of the
Footing $/cm *3
Installation Cost of
the Footing $/cm *4
Total Cost ($)
1 280/4 10 1 80 4.36 0.057 48
1 280/4 10 5 1 1 100 10.22 4.36 0.111 0.057 112
1 280/4 10 1 150 4.36 0.057 52
1 400/5 10 1 140 5.42 0.060 63
1 400/5 10 5 1 150 12.60 5.42 0.060 126
2
3 280/4 10 1 110 4.36 0.057 50
4 280/4 10 1 100 4.36 0.057 49
5 180/3 10 10 1 1 100 8.44 3.80 0.093 0.046 136
5 180/3 10 1 1 90 3.80 0.093 0.046 51
6
7
8 280/4 1 110 0.057 6
8 280/4 1 130 0.057 7
9
10 100/1 1 80 0.027 2
Replacing
Strengthening
Strengthening
Reinstallation
Replacing
Reinstallation
Replacing
Reinstallation
Strengthening
97
Reinstallation
Reinstallation
Table A.18 - Cost Calculations of Reworks for Civil Works Non-Conformance 1 - (CNC-1)
Description
Reinstallation
Months
Type of the
Canalet/ Footing
Length of the
Reinstalled Canalet
Length of the
Damaged Canalet
Number of the
Reinstalled Footings
Number of the
Damaged Footings
Height of the
Footing (cm)
Production Cost of the
Canalet $/m *1
Installation Cost of
the Canalet $/m *2
Production Cost of the
Footing $/cm *3
Installation Cost of
the Footing $/cm *4
Total Cost ($)
11 100/1 1 100 0.032 3
11 280/4 1 70 0.068 5
11 280/4 10 5 1 90 12.06 5.19 0.068 118
12 180/3 1 100 0.055 6
12 280/4 10 1 1 150 5.19 0.133 0.068 82
916
*1 - 2002-2003 Profitless Unit Price of the State of Hydraulic Works by job number 38.026 , 38.030,38.033*2 - 2002-2003 Profitless Unit Priceof the State of Hydraulic Works by job number 38.047, 38.051,38.054*3 - 2002-2003 Profitless Unit Price of the State of Hydraulic Works by job number 38.093, 38.094,38.095*4 - 2002-2003 Profitless Unit Price of the State of Hydraulic Works by job number 38.101,38.103, 38.104,38.105
Replacing
Strengthening
Description
Replacing
Strengthening
98
Table A.18- (Continued)
Strengthening
TOTAL
Months
Total Length of the
Reinstalled Canalets
(m)
Number of the Reinstalled
Canalet Members
Day Loss for one Member
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 50 10 0.03 637 1446 62523 10 2 0.03 735 1446 1314 10 2 0.03 855 1446 1385 20 4 0.03 832 1446 27367891011 10 2 0.03 442 1446 11312 10 2 0.03 684 1446 128
1408
Delay due to reworks
Delay due to reworks
Delay due to reworksDelay due to reworks
Table A.19 - Cost Calculations of Delays for Civil Works Non-Conformance 1 - (CNC-1)
99
Description
TOTALDelay due to reworksDelay due to reworks
# NosDiameter
(mm)Length
(m)Width
(m)Height
(m)Weight
(kg)Amount
155 / 20 = 3 3*2 = 6 6 12 3.63 0.888 19.34180 / 20 = 9 9*2 = 18 18 12 3.63 0.888 58.02(165+30) / 20 =10 10*2 = 20 20 12 3.63 0.888 64.4755 / 20 = 3 3*2 = 6 6 12 3.63 0.888 19.34(55 + 2*9) -5 = 68 2* 332 / 20 = 34 34 12 0.68 0.888 20.53(25+165+180 +2*9 = 388 2* 332 / 20 = 34 34 12 3.88 0.888 117.14(55 + 2*9) -5 = 68 2* 332 / 20 = 34 34 12 0.68 0.888 20.53
319.382
Outer 2 0.55 3.32 3.65(165 + 30 = 195) 1 1.95 3.32 6.47
1 1.80 3.32 5.98Inner (55-30 = 25) 2 0.25 3.32 1.66
1 1.65 3.32 5.48(180-30 = 150) 1 1.50 3.32 4.98
28.223
(2*55 + 180 + 165 + 30) = 485 1 4.85 0.30 3.32 4.834.83
Table A.20 - Quantity Calculations for Civil Works Non-Conformance 2 - (CNC-2)
100
Formworks
Total Amount (m2)Concrete Works (C25)
Total Amount (m3)
Reinforcement Steel Works
Job Type
Total Amount (kg)
MonthsAmount of the Job
Day Loss
Unit Price of the R.C
Steel Works ($/ton) * 1
Unit Price of the
Formworks ($/m2) * 2
Unit Price of the Concrete
Works ($/m3) * 3
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
123 0.32 310.00 993 28.22 6.19 1753 4.83 33.38 1613 0.50 735 1446 1091456789101112
1526
*1 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 23.014*2 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 21.013*3 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 16.045
101
Delay due to reconstruction
TOTAL
Table A.21 - Cost Calculations for Civil Works Non-Conformance 2 - (CNC-2)
Cost of formworksCost of concrete works
Cost of reinforcement steel works
Description
# NosDiameter
(mm)Length
(m)Width
(m)Height
(m)Weight
(kg)Amount
155 / 20 = 3 3*2*2 = 12 12 10 6.61 0.617 48.94100 / 20 = 5 5 * 2= 10 10 10 5.88 0.617 36.28220/20 = 11 11*2*2 = 44 44 10 6.61 0.617 179.45210/20 = 11 11*2 = 22 22 10 6.61 0.617 89.72(55 + 2*9) -5 = 68 73/20=4, 4*2*2=16 16 10 0.68 0.617 6.71(210+ 2*9) -5 = 223 557/20=28, 28*2=56 56 10 2.23 0.617 77.05(220+ 2*9) -5 = 233 630/20=32, 32*2=64 64 10 2.33 0.617 92.01(210+ 2*9) -5 = 223 630/20=32, 32*2=64 64 10 2.23 0.617 88.06Minus Siphon Ø 100 100/20=5, 5*2=10 -10 10 1.00 0.617 -6.17(220+ 2*9) -5 = 233 630/20=32, 32*2=64 64 10 2.33 0.617 92.01
704.062
Outer 2 0.55 6.30 6.931 1.00 5.57 5.572 2.20 6.30 27.721 2.10 6.30 13.23
Inner 2 0.25 6.30 3.151 1.00 5.57 5.572 1.60 6.30 20.161 1.50 6.30 9.45
Minus Siphon Ø 100 � /4 = 0,79 -0.79 1.00 1.00 -0.7990.99
3(210 + 220) *2 = 860 1 8.60 0.30 6.30 16.25Minus Siphon Ø 100 � /4 = 0,79 -0.79 1.00 0.30 1.00 -0.24Minus Canalet -1 1.00 0.30 0.73 -0.22
15.80
Table A.22 - Quantity Calculations for Civil Works Non-Conformance 4 - (CNC-4)
102
Reinforcement Steel Works
Job Type
Total Amount (kg)Formworks
Total Amount (m2)Concrete Works (C20)
Total Amount (m3)
Months
Amount of the Job
Day Loss
Unit Price of the R.C Steel
Works ($/ton) * 1
Unit Price of the
Formworks ($/m2) * 2
Unit Price of the Concrete Works
($/m3) * 3
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
123 0.70 310.00 2173 90.99 6.19 5633 15.80 33.38 5273 1 735 1446 2181456789101112
3489
*1 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 23.014*2 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 21.013*3 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 16.045
103
Cost of reinforcement steel works
Description
Cost of formworksCost of concrete works
Table A.23 -Cost Calculations for Civil Works Non-Conformance 4 - (CNC-4)
TOTAL
Delay due to reconstruction
# NosDiameter
(mm)Length
(m)Width
(m)Height
(m)Weight
(kg)Amount
154 8 12.00 0.395 255.96
1000/20 = 50 50 12 6.12 0.888 271.731000/20 = 50 50 12 5.18 0.888 229.99
757.682
Outer 130+25+25 = 180 3.14 180 10.00 56.52Minus Top Portion 180*60/360 =30 -3.14 30 10.00 -9.42Minus Bottom Portion -1 10.00 1.80 -18.00Inner 3.14 130 10.00 40.82Minus Bottom Portion 130*60/360 =22 -3.14 22 10.00 -6.91
63.013
Outer � /4 = 0,79 0.79 10.00 1.80 1.80 25.60Minus Inner -0.79 10.00 1.30 1.30 -13.35
12.25
Table A.24 - Quantity Calculations for the Civil Works Non-Conformance 5 - (CNC-5)
104 Formworks
Total Amount (m2)Concrete Works (C25)
Total Amount (m3)
Job Type
Reinforcement Steel Works
Total Amount (kg)
Months
Amount of the Job
Day Loss
Unit Price of the R.C Steel
Works ($/ton) * 1
Unit Price of the Formworks
($/m2) * 2
Unit Price of the Concrete
Works ($/m3) * 3
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1234 0.76 310.00 2364 63.01 6.19 3904 12.25 33.38 4094 1 855 1446 2301456789101112
3336
*1 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 23.014*2 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 21.013*3 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 16.045
TOTAL
Delay due to reconstruction
105
Description
Table A.25 - Cost Calculations for the Civil Works Non-Conformance 5 - (CNC-5)
Cost of formworksCost of reinforcement steel works
Cost of concrete works
# NosLength
(m)Width
(m)Height
(m)Amount
1Outer (75,28 - 71,88 = 3,40) 2 0.50 3.40 3.40
1 0.30 3.40 1.021 2.70 3.40 9.181 0.90 3.40 3.061 1.40 3.40 4.761 0.70 3.40 2.381 2.75 3.40 9.35
Inner 2 0.20 3.40 1.361 2.70 3.40 9.181 0.60 3.40 2.041 0.80 3.40 2.721 0.40 3.40 1.361 2.45 3.40 8.33
58.14
Table A.26 - Quantity Calculations for the Civil Works Non-Conformance 6 - (CNC-6)
Job Type
Formworks
Total Amount (m2)
106
Months Amount Of The Job
Unit Price of the Formworks ($/m2) * 1
Total Cost ($)
12 58.14 6.19 3603456789101112
360
*1 - 2002 Profitless Unit Price of the Ministry of the Public Works and Settlement by job number 21.013
107
TOTAL
Description
Table A.27 - Cost Calculations for the Civil Works Non-Conformance 6 - (CNC-6)
Cost of formworks
Months
Diameter of the Butt - Welded
Pipes (mm)
Number of the Failures
Unit Price of the Butt Welding
($/no) * 1
12345 110 1 5.495 160 2 6.455 315 1 10.036 315 1 10.036 450 1 15.0278 160 2 6.458 250 1 8.528 315 1 10.03910 110 1 5.4910 160 1 6.4511 110 1 7.0811 315 1 12.9212
*1 - 2002 - 2003 Profitless Unit Prices of Turkish Bank of Provinces according to diameter by job numbers 36.021 / 06,09,13,15,18
108
Table A.28 - Cost Calculations for the Civil Works Non-Conformance 7 - (CNC-7)
" " 10
" " 6
" " 15
13
" " 713
5
" " 9
Defects in the butt welding" "
Total Cost ($)
TOTAL
" "
Description
117
" "
" "
" " 10
10
513
" "
Months Day Loss Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 0.25 637 1446 5212 0.50 755 1446 11012 0.50 755 1446 11012 0.50 755 1446 11013 0.50 735 1446 10913 1.00 735 1446 21813 0.50 735 1446 10914 0.50 855 1446 11515 0.75 832 1446 17095 1.00 832 1446 227867 0.25 889 1446 58489 Failure of the loader 3 0.25 453 1446 47510 1.00 441 1446 18871112
16267
Failure of the truck 2
Table A.29 - Cost Calculations for the Civil Works Non-Conformance 8 - (CNC-8)
Failure of the truck 1
TOTAL
Description
Failure of the loader 1
Failure of the excavator
Failure of the loader 1
109
Failure of the truck 3
Failure of the loader 1
Failure of the loader 3
Failure of the truck 2
Failure of the grayder
Failure of the loader 2Failure of the truck 2
MonthsNumber of the
Replaced Canalets
Day Loss Type of the Canalet
Length of the Canalet
(m)
Installation Cost of the Canalet
($/m) *1
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
1 2 0.03 100 5 3.04 637 1446 1551 1 0.03 280 5 4.36 637 1446 841 1 0.03 400 5 5.42 637 1446 902 1 0.03 600 5 7.11 755 1446 1022 2 0.03 100 5 3.04 755 1446 1622 1 0.03 180 5 3.80 755 1446 852 2 0.03 280 5 4.36 755 1446 1763 1 0.03 180 5 3.80 735 1446 843 1 0.03 280 5 4.36 735 1446 873 1 0.03 400 5 5.42 735 1446 934 2 0.03 180 5 3.80 855 1446 1764 1 0.03 280 5 4.36 855 1446 915 1 0.03 100 5 3.04 832 1446 845 1 0.03 180 5 3.80 832 1446 875 2 0.03 280 5 4.36 832 1446 1806 1 0.03 280 5 4.36 866 1446 917 1 0.03 180 5 3.80 889 1446 897 1 0.03 400 5 5.42 889 1446 978 1 0.03 100 5 3.04 834 1446 848 1 0.03 180 5 3.80 834 1446 879 1 0.03 100 5 3.04 453 1446 72
" "
Reinstallation
" "
" "
" "
" "
" "
Table A.30 - Cost Calculations for the Civil Works Non-Conformance 9 - (CNC-9)
" "" "
" "
" "" "" "
" "
" "
Description
110
" "" "
" "
" "
" "" "
MonthsNumber of the
Replaced Canalets
Day Loss Type of the Canalet
Length of the Canalet
(m)
Installation Cost of the Canalet
($/m) *1
Daily Overhead
Cost ($)
Daily Delaying Penalty
($)
Total Cost ($)
9 1 0.03 180 5 3.80 453 1446 769 2 0.03 280 5 4.36 453 1446 15810 1 0.03 180 5 3.80 441 1446 7611 1 0.03 280 5 5.19 442 1446 8311 1 0.03 400 5 6.45 442 1446 8912 2 0.03 100 5 3.63 684 1446 16412 1 0.03 280 5 5.19 684 1446 90
2991
*1 - 2002-2003 Profitless Unit Prices of the State of Hydraulic Works by job numbers 38.043, 38.047, 38.051, 38.054
" "
" "
Table A.30 - (Continued)
Description
" "" "
" "
" "
111
TOTAL" "
1 2 3 4 5 6 7 8 9 10 11 12March April May June July August September October November December January February
Internal DNC-1 (Table A.3) 1344 7762 7962 1344 2016 20428DNC-2 (Table A.4) 1660 1660DNC-2 (Table A.5) 6921 6921DNC-3 (Table A.6) 675 932 225 464 187 2483DNC-5 (Table A.8) 152 114 267DNC-6 (Table A.9) 3810 3896 7706DNC-7 (Table A.10) 9 11 1 3 3 4 2 2 2 2 6 5 50
External DNC-4 (Table A.7) 4402 2181 2278 4624 2280 15765DNC-8 (Table A.11) 6746 6746
14419 17155 2407 8543 9027 6159 2 2282 2018 2 6 5 62025Internal MNC-1 (Table A.12) 2484 1656 1242 1863 828 452 226 8751
MNC-2 (Table A.13) 1091 1151 1156 3397MNC-3 (Table A.14) 341 285 626MNC-4 (Table A.15) 491 13 7 519 3 7 1040MNC-6 (Table A.17) 2278 4670 6948
External MNC-5 (Table A.16) 984 572 127 249 142 303 248 259 150 30343468 913 3364 2940 2285 3680 4976 255 828 711 376 23796
Internal CNC-1 (Table A.18) 401 50 49 187 14 2 126 88 916CNC-1 (Table A.19) 625 131 138 273 113 128 1408CNC-4 (Table A.23) 3489 3489CNC-5 (Table A.25) 3336 3336CNC-6 (Table A.27) 360 360CNC-7 (Table A.28) 28 25 31 12 20 117CNC-8 (Table A.29) 521 3302 4362 1151 3987 584 475 1887 16267CNC-9 (Table A.30) 329 525 264 267 351 91 186 171 306 76 171 254 2991
External CNC-2 (Table A.21) 1526 15261876 4186 9821 4940 4826 116 770 216 780 1977 431 469 30409
5344 5099 13185 7880 7111 3796 5746 471 1608 1977 1142 845 5420518779 17280 11759 16174 7114 5189 5445 225 3626 1979 889 700 89159984 4974 3833 249 9024 4766 303 2528 259 150 2707119763 22254 15592 16423 16138 9955 5748 2753 3626 1979 1148 850 116230
112
TOTAL EXT. FAILURE COSTS ($)TOTAL INT. FAILURE COSTS ($)
SUBTOTAL OF DNC ($)
SUBTOTAL OF MNC ($)
SUBTOTAL OF CNC ($)
Table A.31- Summary of the Failue Costs ($)
SUBTOTAL OF MNC+CNC ($)
DE
SIG
NM
ATE
RIA
LC
IVIL
WO
RK
S
TOTALType Nonconformances
TOTAL FAILURE COSTS ($)
Months Day Loss
Daily Overheads of Design Office
($)
Daily Overheads of Construction
Site ($)
Daily Delaying Penalty
($)
Charge Of the Consultant
($)
Total Cost ($)
1 1 225 2252 1 755 1446 220134 2 232 46445 2 187 345 7195 175 175556789101112
3784
113
Table A.32 - Cost Calculations for Preventive Training
Training of the design group
Description
Training of the design groupTraining of the construction groupTraining of the construction group
Training of the construction groupTraining of the design groupTraining of technicianTraining of quality control engineerTraining of storage employee
TOTAL
Months Total Cost ($)
123456 6156 2656 2906 2657 4107 2907 2657 907 290891011 64511 28011 31011 28012 43012 31012 28012 10012 310
5725
114
Table A.33 - Cost Calculations for Preventive Maintenance
Maintenance of the truck 3
Maintenance of the excavator
Maintenance of the truck 1Maintenance of the loader 2Maintenance of the grader
Maintenance of the roller
Maintenance of the truck 2Maintenance of the loader 3
Description
Maintenance of the truck 2
TOTAL
Maintenance of the excavatorMaintenance of the loader 1Maintenance of the truck 1
Maintenance of the loader 1
Maintenance of the loader 2Maintenance of the grader
Maintenance of the loader 3Maintenance of the rollerMaintenance of the truck 3
Months
Total Cost
($)123
503
503
353
35456789
509
509
359
35101112
340
123M
eeting btw. designers and surveyors
27545
Meeting btw
. designers and construction group275
5M
eeting btw. designers and farm
ers65
6M
eeting btw. designers and em
ployer80
7M
eeting btw. designers and surveyors
2757
Meeting btw
. designers and employer
808
Meeting btw
. designers and employer
809
Meeting btw
. designers and employer
8010
Meeting btw
. designers and farmers
36010
Meeting btw
. designers and employer
8011
Meeting btw
. designers and employer
8012
Meeting btw
. designers and employer
801810
115
Calibration of the total station 2
Calibration of the total station 1
Description
Calibration of the total station 1
Calibration of the total station 2
Calibration of the distom
atC
alibration of the nivo
Table A.34 - C
ost Calculations for C
alibration
TOTA
L
Calibration of the distom
atC
alibration of the nivo
TOTA
L
Total Overheads ($)
Description
Months Table A
.35 - Cost C
alculations for Preventive C
omm
unication
Months Description
Number of Transport For HDPE
Pipes
Amount of the Purchased Wooden Elements
(m3)
Unit Price Difference in
Transport ($/Truck)
Unit Price Difference in
Wooden Materials
($/m3)
Total Cost ($)
12345678 Price difference in transport 2 30 609 Price difference in transport 4 30 12010 Price difference in transport 5 30 15011 Price difference in transport 3 30 9011 Price difference in wooden elements 30 15 45012 Price difference in transport 3 30 9012 Price difference in wooden elements 13 15 195
1155
Table A.36 - Cost Calculations for Supplier Quality Evaluation
116
TOTAL
Months Description Day LossDaily Overhead
Cost of C.S. ($)
Daily Delaying Penalty
($)
Cost Of Consumables
($)
Total Cost ($)
1234 First internal audit 110 1105678 Second internal audit 0.5 834 1446 140 12809101112 Third internal audit 90 90
1480TOTAL
117
Table A.37 - Cost Calculations for Internal Quality Audits
1 2 3 4 5 6 7 8 9 10 11 12
March
April
May
June
July
August
Septem
ber
October
Novem
ber
Decem
ber
January
February
Prevention CostsQuality Management System Consulting 625 625 625 625 2500Assignment of the Quality Manager 1700 1700 1700 1700 1700 1700 1850 1850 1850 1850 1850 1850 21300Assignment of the Quality Control Engineer 1200 1200 1200 1200 1200 1300 1300 1300 1300 1300 12500Assignment of the Quality Control Technician 900 900 900 900 900 900 900 6300Cost of Consumables Used in Documentations 32 118 345 325 325 200 175 138 125 138 125 88 2133Cost of Internal Quality Audits (Table 5.37) 110 1280 90 1480Cost of Supplier Quality Evaluation (Table 5.36) 60 120 150 540 285 1155Cost of Preventive Training (Table 5.32) 225 2201 464 894 3784Preventive Communication Costs (Table 5.35) 275 340 80 355 80 80 440 80 80 1810Preventive Maintenance Costs (Table 5.33) 1435 1345 1515 1430 5725Total Prevention Costs ($) 2582 4644 4145 4424 4459 5515 5825 5608 4375 4778 6310 6023 58687Appraisal CostsCost of Consumables Used in Inspections 30 30 40 50 50 60 80 90 120 110 100 100 860Calibration Costs (Table 5.34) 170 170 340Total Appraisal Costs ($) 30 30 210 50 50 60 80 90 290 110 100 100 1200Total Costs ($) 2612 4674 4355 4474 4509 5575 5905 5698 4665 4888 6410 6123 59887
Table A.38 - Summary of the Prevention and Appraisal Costs ($)
TOTA
L
118
YearsInternal
Failure Costs ($)
External Failure Costs
($)
Total Failure Costs
($)
Prevention Costs
($)
Appraisal Costs
($)
Prevention & Appraisal
Costs ($)
Total Quality Costs
($)
2002 1 March 18779 984 19763 2582 30 2612 223752 April 17280 4974 22254 4644 30 4674 269283 May 11759 3833 15592 4145 210 4355 199474 June 16174 249 16423 4424 50 4474 208975 July 7114 9024 16138 4459 50 4509 206476 August 5189 4766 9955 5515 60 5575 155307 September 5445 303 5748 5825 80 5905 116538 October 225 2528 2753 5608 90 5698 84519 November 3626 3626 4375 290 4665 829110 December 1979 1979 4778 110 4888 6866
2003 11 January 889 259 1148 6310 100 6410 755812 February 700 150 850 6023 100 6123 6973
TOTAL 89159 27071 116230 58687 1200 59887 176117
Months
Table A.39 - Total Quality Costs ($)
119