total quality management in construction project -...

Chapter 6: Total Quality

Management in Construction Project

DO YOU REMEMBER?? …no quality - no sustainable!

Our focus!!

Traditional Project’s Critical Components (time, cost, & quality); in relation with sustainable construction concept

TOTAL QUALITY MANAGEMENT

• Everyone and everything that we do TOTAL

• Giving the customer / clients what they expect all the time QUALITY

• The way we act and operate our policies and procedures, and our training and instruction of our employees.

MANAGEMENT

TOTAL QUALITY MANAGEMENT (TQM)

DEFINITION

"TQM is a management approach for an organization, centered on quality, based on the participation of all its members and aiming at long-term success through customer satisfaction, and benefits to all members of the organization and to society.“ (ISO 8402:1994) TQM is interpreted as "a way of managing an organisation to ensure the satisfaction at every stage of the needs and expectation of both internal and external customers, that is shareholders, consumers of its goods and services, employees and the community in which it operates, by means of every job, every process being carried out right, first time and every time“ (Latham, 1994).

INTRODUCTION

• TQM is a managerial philosophy which aims to achieve organisation’s main targets using all sources including employees.

• TQM aims improve the total performance at the work place. It covers all functions, activities and people who are responsible for competitiveness of an organisation. The employees are expected to participate not only in maintaining quality but also in improving their total performance so that the wastages will be avoided, production cost will go down and the enterprise can earn more profit.

Advantages of TQM

• Customer satisfaction

• Quality improvement

• Absence of additional investment

• Raises competitiveness

• Facilitates expansion and diversification

• Provides trained and motivated employees

• Miscellaneous Advantages

- Long-term consumer support,

- Prestigious position in international marketing,

- High standard of living to employees, and

- Cost control.

TQM PRINCIPLES

TQM

Employee participation

Team work

Process focus

Continuous improvement

Customer focus

Supporting elements The five principles of TQM can be achieved in an organization with the aid of 6 basic supporting elements (Tenner and Detoro, 1992):

TQM PRINCIPLES Leadership

Education and training

Supportive structure

Communication

Reward and recognition

Measurement

TQM SUPPORTING ELEMENTS

1. Leadership: Visionary leaders set the direction, develop strategies, coaching employees for achieving excellence.

2. Education and training: Educate and train employees on the i) mission, vision, direction, and strategy of the organization; ii) skills they need to secure quality improvement and resolve problems

3. Supportive structure: Senior managers may require support to bring about the change necessary to implement a quality strategy. Organizations also need to build internal and external partnership for mutual benefits.

TQM SUPPORTING ELEMENTS

3. Communication: Communications in a quality improvement may need to be addressed differently to communicate to all employees a sincere commitment to change.

4. Reward and recognition: Teams and individuals who successfully apply the quality process must be recognized and suitably rewarded, so that the rest of the organization will know what is expected and motivate/ enhance performance of employee.

6. Measurement: The achievement of superior performance requires the use of data, information and knowledge to enhance judgment and enable better decision-making. The data can also used to track performance measures and indicators.

Components in QUALITY

MANAGEMENT

COST CONTROL

RISK

QUALITY

PROCUREMENT

RESOURCE

COMMUNICATION

COST-CONTROL MANAGEMENT

• Direct and indirect cost • Cost-control techniques • Project cost • Control and monitoring

Introduction

WHY NEED COST-CONTROL MANAGEMENT?

To ensure that the project is completed within allotted budgets. • Early detection of actual cost overruns in construction activities is vital to

management.

• Provides opportunity to initiate remedial action and increase chance of eliminating or minimize the impacts.

• Because- cost overruns increase project costs and diminish profit.

Direct and indirect cost

• Direct costs – Cost that is directly applicable to the project.

– Any cost for activities or services that contributing to the physical completion of specific project

– Example: • Finishing labour for a concrete floor slabs

• Materials for structural steel frame

• Equipment for a foundation excavation

• Subcontractor’s charge for installing the air conditioning system

• Land reclamation

Direct and indirect cost

• Indirect cost – Costs that are not directly accountable to a cost

project. – Cost that support the project as whole but cannot be

identified directly with specific work items in the project

– Either fixed or recurring – Fixed indirect cost: activities or costs that a fixed for

a particular project (eg: temporary roads, temporary site office, staff vehicles)

– Recurring indirect cost: activities that repeat for the company (eg: salaries for office personnel)

Cost-control techniques

• Planning the project budget Budget has to made at the beginning of the planning session. It is

help to estimate all payments that need to be made and costs that will incur during the project life cycle.

The making of this budget therefore entails a lot of research and critical thinking.

o Keeping a track of costs Keeping track of all actual costs is also equally important as any

other technique. It is best to prepare a budget that is time-based. This will help in keeping on track of the project budget in each of its phases.

The actual costs will have to be tracked against the periodic targets that have been set out in the budget. These targets could be on a monthly or weekly basis or even yearly if the project will go on for long.

Refer to SLIDE A…

Refer to SLIDE B…

SLIDE A

• How to plan the project budget? – Their main purpose:

• Approach to plan the project budget might be differ among construction practitioners (e.g. client, architect, contractor, etc.), it is boils down to their intended purposes.

• For example, Project Manager plans the project budget in order to control the actual cost (so it will not exceed the contract cost); but Contractor for tendering and claim purposes.

– Their main criteria: 1. Time allocated to produce the project budget, 2. The accuracy of the budget (which suited their purposes), 3. Existing information that available (e.g. data on costs, drawings,

specifications, etc.), and 4. Experience of the planner/budgeter itself.

SLIDE A (cont.) • What are the techniques?

SLIDE B

• How to track the project cost?

1. Bar Chart

2. Critical Path Method (CPM)

• We have already covered both methods!! Chapter 5, remember?

• But you can always opt for the software version (since you have learned their underlying concept..)

Cost-control techniques continue… • Effective time management The total cost of the project could keep rising if the

project unable to meet the project deadlines; The longer the project is dragged on for, the higher

the costs incurred which effectively means that the budget will be exceeded.

• Project change control Change control systems are essential to take into

account any potential changes that could occur during the course of the project.

This is due to the fact that each change to the scope of the project will have an impact on the deadlines of the deliverables, so the changes may increase project cost by increasing the effort needed for the project.

Project cost

COMPONENT OF PROJECT COST

Material

Subcontract

Plant and equipment

Overhead Labour

Fee/ profit & contingencies

Allowance

Project cost

o Materials – Direct costs consumed in the realization of a physical

element of a project

– Price list can be obtained by distributor or supplier

o Equipment and plant costs

– Divided into: 1. Rental/ owning costs; depreciation, insurance, tax

2. Operational cost; fuel, spare part, maintenance, operator cost

– Factors in equipment and plant estimating: 1. Types

2. Size and capacity

3. Useful life

Project cost

• Labour cost – Sum of all wages paid to employee, plus any

related taxes and benefits

• Subcontractor cost – Payment to subcontractor to do a package of

work in a project

• Allowance – Cost for unplanned work

• Fee/ profit and contingencies – Depends on project size, site condition, project

complexity, information from owner which can be seen in tender document

Project cost • Overhead

1. Fixed overhead: recurring expenses which are constant and do not normally fluctuate with the business volume or the number of production employees employed

Example: office rental, water, electricity, material testing

2. Variable overhead: all operating expenses generated by field personnel. It will fluctuate directly with the amount of people a company employees as part of its production labour cost.

Example: site engineer, project manager, marketing costs, official trip cost.

COST CONTROL AND MONITORING

COST CONTROL & MONITORING

Work programmes

Inspection of works

The project budgets

Site meetings

Record keeping

Monitoring work and cost performance

Cost-control & monitoring

• Work programmes Use planning and scheduling to monitor progress and financial performance. It is a good method since work progress can be measured and related to cost.

• Inspection of works Inspection of works and comparison made with the

budget. Sometimes subject to judgement, hence lacking.

• The project budgets Cost attached to responsibility centres with work targets to be accomplished. It’s used in relation to schedules makes it the best tool for cost control.

Cost-control & monitoring

• Site meetings Meetings held to review the progress of work and compare to the monetary allocations. Good as it provides some motivation to workers and all stake holders are up to date on the performance of work. • Record keeping Documentation of activities carried out to enable early detection of deviations from the set standards • Monitoring work and cost performance Clients, consultants and the contractors used monitoring tools of schedules, budgets, inspection and feedbacks to keep a watch on the cost performance. With use of the right tools of control, it produces good results.

• Risk management programme

• Insurance

• Performance bond

RISK MANAGEMENT

WHAT IS RISK?

• A risk is a chance that things will not turn out as they were intended to

• The consequence may affect cost, time or quality

• Adversely or positively

Risk management WHY NEED RISK MANAGEMENT? To identify and control risk so can that can avoid or minimize losses. If we can identify risks in good time, we can…ERIC • Eliminate showstoppers and biggest risks • Reduce risk by surveys, re-design, other

materials, different methods or changes • Insure/ Transfer risks, allocate differently,

take out bond • Contain risk within unallocated contingency

RISK MANAGEMENT PROGRAMME

1 •Risk Identification

2 •Analyse & Evaluate the risks

3 •Treat the risks

4 •Monitoring and review


1. Risk Identification What and where?

Identify sources of risk (i.e: who is involved or affected).

2. Risk Analysis & Evaluation What is the magnitude? What would be the impact, cost or consequences of that event occurring?

Assess risks: severity, likelihood, controllability

Determine inherent levels of risk.


3. Treat the risks What action to take?

Develop strategy plan with specific counter-measures to address the identified risks and to reduce possible loss/ damage.

4. Monitoring and review How to implement and monitor?

Monitor and modify plan for new risks

Monitor activities and processes to determine the accuracy of planning assumptions and the effectiveness of the measures taken to treat the risk.

Risk management policies and decisions must be regularly reviewed. Methods can include data evaluation, audit, compliance measurement.

AN EXAMPLE: RISK MANAGEMENT PROGRAM - HIRARC

INSURANCE FOR CONSTRUCTION PROJECT

• Construction sites are inherently dangerous places and usually involve a significant risk, which makes construction insurance an important safeguard.

• Workers operate in extreme conditions, operating heavy machinery and using tools that can cause injuries. They may also need to work at extreme heights, near unfinished or damaged structures and where other construction is ongoing.

• Construction insurance takes into account the unique risks of a construction site and pays its benefit if workers are injured or killed despite the employer's safety measures.

• Construction insurance also covers materials and machinery on the construction site in the event of an accident, fire or theft.

TYPES OF CONSTRUCTION INSURANCE

A. Worker’s compensation and employer’s liability insurance

– It is designed to provide the statutory benefits required by state law to

an employee who is hurt or killed as a result of employment.

– The insurance can be established as mandatory or non-mandatory

funds (employers is self-insured); private insurance or state program

B. Professional liability insurance

– It provide protection to architects and engineers from liability based

upon professional errors or omissions in performing design,

construction management or other services.

C. Comprehensive general liability insurance

– It insures against liability imposed by law for negligent acts occurring in the conduct of the business which result in bodily injury or damage to the property of others.

– Typically, the basic policy can be endorsed to include coverage for owner’s and contractor’s protective insurance, products, and completed operations, blanket contractual, personal injury, and frequently cover the liability arising from the insured’s automobiles.

D. Contractual liability insurance

– It protects the contractor when he assumes the legal liability of others,

generally the owner, designer, or other designated party.


E. Builder’s risk insurance – It covers the cost of damage of a physical nature to a

building or other component of a construction project, except those specifically excluded (e.g. faulty design, faulty materials, faulty workmanship, force majeure, etc.).

– Coverage applies to material and equipment incorporated into the work when located on site or in transit to the site.

F. Equipment floater policy – It covers damage to mobile and stationary construction

equipment which is not generally subject to vehicle registration. Not included liability and property damage insurance for cars, trucks, and other equipment subject to the motor vehicle licensing laws.

– It provides coverage for damage to the equipment at the job site, in transit, and at contractor’s yard.


G. Payroll taxes and insurance

– Included is a social security tax for both employers and employees, state unemployment tax, employment training tax, etc.

H. Wrap-up insurances

– Particularly in the private sector, a number of owners have established this kind of insurance to cover the owners, contractors, subcontractors, and sometimes construction managers as well as the designers.

– Several major public program including rapid transit, wastewater – Advantages to owner: lower insurance costs, control over the

insurance program, standardization or risks and centralization of responsibility

– Usually used by contractor with less experience where they need to pay more for this type of insurance.


Performance bond

• Performance Bonds guarantee for the satisfactory completion of a project.

• This will require having a collateral property or investment to back up the requirements of the surety agency.

• A performance bond is usually issued by a bank or an insurance company, both of which act as a “surety.”

Performance Bonds Benefits

• The owner of a project is assured of the completion of the project. • The owner does not need to incur additional costs. • There are also some drawbacks with the Performance Bonds. The

drawbacks of performance bonds are: – Sometimes, the surety tries to establish that the owner did not comply

with the technical conditions of a bond to avoid paying the compensation.

– Sometimes the surety will try to prove, that the owner may have to settle for the least expensive remedy to the problem.

– The owner needs to quantify the losses that might have been suffered when a trader or contractor fails in their performance.

– If the owner underestimates the losses and the future cost of the completion of the project, the owner may not be able to recover the shortfall from the surety.

Performance Bonds Requirements

• Surety and financial institutions have different requirements depending on the capacity of the contractor, the volume of the project being ensured and the projects challenges. Usually they ask for the following:

• At least two years of Certified Public Accountant (CPA) prepared financial statements.

• Copy of the contract that is being awarded. • Application of the surety. • If you own real estate, it will help you and will

accelerate the process.

AN EXAMPLE OF PERFORMANCE BOND CERTIFICATE

• QMS

• ISO

QUALITY MANAGEMENT

WHAT IS QUALITY?

What does quality means to you?

• Conformance to specifications • Fitness for purpose • Meeting needs & expectation • Free from defects • On-time delivery • Consistency • Safe & Reliable • Customer satisfaction • Value for money • Right things, place, price and time • A “Quality” race without a finishing time

Fitness for purpose.

Not absolute, but depend on circumstances

Degree to which a set of inherent characteristics fulfills requirements.

QUALITY MANAGEMENT

WHY NEED TO MANAGE QUALITY?

To ensure that the project will satisfy the requirements of clients.

DEFINITION All activities of the overall management function that determine the quality

policy, objectives and responsibilities, and implement them by means such as

quality planning, quality control, quality assurance and quality improvement

(BS EN ISO 8402)

QUALITY MANAGEMENT SYSTEM (qms)

Quality Management System can be seen as a complex system consisting of all the parts and

components of an organisation dealing with the quality of processes and products.

DEFINITION

The managing structure, responsibilities, procedures, processes, and management

resources to implement the principles and action lines needed to achieve the quality objectives of

an organisation.

What is process?

• ISO 9000 Standard promotes the adoption of a process approach with interaction of various processes that make up the quality management system

KEY PRINCIPLE : “P-D-C-A” CYCLE

P-D-C-A CYCLE & A SYSTEM FOR ENSURING CUSTOMER SATISFACTION

QUALITY MANAGEMENT SYSTEM (qms)

OBJECTIVES: • Encourage organisation to analyse customer

requirements. Require organisation to define key processes that contribute to meeting these requirements.

• Require organisation to keep these processes under control to ensure consistent quality is provided.

• Provide framework for continual improvement.

• Provide confidence to organisation and its customers that it can consistently fulfil these requirements.

ISO

• International Organization for Standardization (since 1947)

• The ISO 9000 standard (ISO 9001,1994) provides comprehensive guidance on the principles, scope and implementation of a QMS.

• Recognition of conformity to ISO 9000 standards by member states of European Union.

• ISO 9000 adopted/ endorsed as national standards in more than 100 countries

ISO 9000

The construction industry normally follows :

ISO 9001

For organization carries out design work

For example : architectural practices, design and build contractors or subcontractors

Has 20 parts (clauses)

ISO 9002

For organization do not carries out design work

Has 19 parts (clauses)

purpose & application of iso 9001:2008

• For planning, implementing, maintaining and improving the effectiveness of a Quality Management System (QMS)

• Basis for audits and certification/ registration

• As contractual requirement between customer and supplier

• To reduce multiple customer audits through harmonised quality standard

ISO 9001 CLAUSES

..their core clauses

YOUR OPINION IS NEEDED HERE!!

• After discussing on Quality Management, ISO, and etc.: – IS IT HARD TO MAINTAIN QUALITY IN CONSTRUCTION??

(please response..)

• IF YOUR RESPONSE IS ‘YES’: » WHY IT IS SO?? » WHAT IS THE PROBABLE MAJOR HINDRANCE??

• IF YOUR RESPONSE IS ‘NO’:

» WHY THERE ARE STILL SO MANY SUB-STANDARD CONSTRUCTION PROJECTS EXIST??

» WHAT IS THE PROBABLE CAUSE(S) OF THE SUB-STANDARD CONSTRUCTION PROJECT??

THUS, CAN WE REACH FOR A ‘SINGLE’ CONCLUSION HERE?? or

NO?? (for the ‘hindrance’ and ‘cause’ – of course)

Elements

Process and procedure

PROCUREMENT MANAGEMENT


WHY WE NEED TO MANAGE PROCUREMENT?

To ensure quality service or project acquisition.

Project procurement—the process of identifying and acquiring the necessary goods and services to implement and complete project plans.


• Focus on time, cost and quality (or performance) in relation to both the design and construction of the building.

• The client’s policies, resources, organisational structure, and preferred contractual arrangements will all need to be taken into account in choosing the right procurement method for their project i.e Design and construct strategies, etc

• Successful procurement relies on all parties involved in the project complying with their respective obligations, and identifying and dealing with risk appropriately from the outset.


Procurement planning

Documentation of purchasing requirement

Supplier and subcontractor

evaluation

Award contract Administration Inspection

Delivery Improvement Pro

cure

me

nt

pro

cess


• Procurement planning

- A process of identifying the project products needs that are needed to deliver a project which satisfies client

- Include project scope of work, project specification and drawings, product list, company resources, product estimated value, product supplier list, type of product procurement – non competitive bids, competitive bids, approval to procedure with procurement


• Documentation of purchasing requirement - Document shall identify scope, product characteristic,

and forms. They should include delivery dates for product. Failure to identify things that exist at outset of the procurement give rise to costly dispute between the parties.

- The process include prepare procurement documents, standard forms, invite contractors from approved shortlist to submit tender offers or expression of interest, receive tender offers or expression of interest, prepare evaluation report, review procurement documents, make official sue that finance is available


• Supplier and subcontractor evaluation

- Evaluation is made based on the setting criteria of the bids or proposal

- Standard items : Price and term of payment; Delivery

- Non standard : Overall or life cycle cost; Technical capability; Understudying the needs; Management of provider approach; Financial capability of provider; Price and technical skills; Installation and testing; History with vendor organization; Customer acceptance; Customer feedback and approval of the selection


• Award contract

a. Notify successful tender and unsuccessful tender outcome

b. Compile contract document

c. Capture contract award date

d. Formally accepted tender offer


• Administration

- Process of ensuring that supplier/contractor performance meets contractual requirement.

a. Administer contract in accordance with the terms and provision of the contract

b. Ensure compliance with requirement

c. Capture contract completion and closeout

d. Payment


• Inspection

- Review of deliverable (done by a third-party inspector) – captures statistics on suspected defects.

- Document to be provided to selected third party inspector:

a. Copy of Purchase Order (PO)

b. Approved drawings

c. Approved specification

d. Place of inspection

e. Address of owner


• Delivery a. Deliver to site with the following documents - equipment/material description; quantity, size, model

brand; equipment test certificate; equipment/material manual

b. Delivery decision - Advantage of site store facility; radiance of installation

place; cash flow; installation manpower; related interface item

c. Site inspection - Conduct visual inspection


• Improvement

Project manager shall monitor the process and justify

- Whether the procurement satisfied the stated objective

- Whether needs and expectation have achieved

- Whether the procurement process should be improve

- Whether the process improve cost saving

Man-power

Materials

Machineries

RESOURCE MANAGEMENT

RESOURCE MANAGEMENT

Resource management includes identifying, analysing deploying and monitoring the resources required to undertake the project activities.

Insufficient resource analysis leads to poor productivity and quality in the later stages of the project.

In construction project, resources can be categorized into man-power, materials and machinery.

RESOURCE MANAGEMENT

1) Man-power

• Employ adequate workmen to execute the work.

• Ensure that resources are analysed in advance onto its availability, skills and capability

• Establish programmes to develop the multi-skill of the labour resource

• Ensure the resources are properly trained to undertake the respective tasks in the project

• Manage health and safety in the project

How??

THIS IS ‘HOW??’..

• Generally, there are two types of manpower planning: 1. Resource Smoothing:

– Time-driven (limitation of time / time is fixed)

– So…, you don’t have any problems with the manpower, you can hire them to the optimum level.

– Avoid sudden aggregation of manpower; because:

• It might demotivated the workers

• High turnover / costly

• Affecting productivity

• Time is paramount, rather than manpower availability

Normal manpower efforts in construction So, avoid this kind of manpower aggregation

Preferably, the manpower aggregation should be like this

THIS IS ‘HOW??’.. (cont.)

2. Resource Levelling: – Resource-driven (limitation of manpower / manpower is fixed)

– So…, you don’t have any problems with the time, you are permitted to drag the time to the optimum level.

– Avoid exceeding the available number of manpower; because:

• You are short of manpower!

• Thus, your activities are planned according to the available number of manpower

• Manpower requirement is important, rather than time

HERE, ONLY EXAMPLES OF RESOURCE LEVELLING WILL BE DISCUSSED…

EXAMPLES - RESOURCE LEVELING Example 1

Resource Leveling

A 2

B 5

C 1

D 4

E 2

0 0

2 3

5 5

7 7

STEP 1: Create the critical network diagram

1 2 3 4

Resource Leveling

A 2

B 5

C 1

D 4

E 2

0 0

2 3

5 5

7 7

STEP 2: Calculating the total float & identify critical activities

1 2 3 4

TFB = 5-5-0 =0

TFE = 7-2-5 =0

TFA = 3-2-0 =1

TFD = 7-4-2 =1

TFC = 5-1-2 =2

RESOURCE LEVELING

Act. Duration DAYS

1 2 3 4 5 6 7

A 2

B 5

C 1

D 4

E 2

STEP 3: Draw the bar chart

RESOURCE LEVELING

Act. Duration DAYS

1 2 3 4 5 6 7

A 2 2 2

B 5 2 2 2 2 2

C 1 2

D 4 2 2 2 2

E 2 2 2

STEP 4: Allocate all the resources on the bar chart

RESOURCE LEVELING

Act. Duration DAYS

1 2 3 4 5 6 7

A 2 2 2

B 5 2 2 2 2 2

C 1 2

D 4 2 2 2 2

E 2 2 2

Total labor requirement 4 4 6 4 4 4 2

Labor availability 4 4 4 4 4 4 4

Shortage/ surplus - - 2 - - - -2

STEP 5: Calculate the total labor, labor availability & shortage/ surplus

RESOURCE LEVELING

Act. Duration DAYS

1 2 3 4 5 6 7

A 2 2 2

B 5 2 2 2 2 2

C 1 2

D 4 2 2 2 2

E 2 2 2




D

Resource/ Labor A C D

B E

Days

STEP 6: Draw resource histogram

0

2

4

6

RESOURCE LEVELING

Act. Duration DAYS

1 2 3 4 5 6 7

A 2 2 2

2 2

B 5 2 2 2 2 2

2 2 2 2 2

C 1 2

2

D 4 2 2 2 2

2 2 2 2

E 2 2 2

2 2




Resource loading 4 4 4 4 4 4 4

Leveling - - - - - - -

STEP 7: Level resource on float

Before level

After level

RESOURCE LEVELING

Act. Duration DAYS

1 2 3 4 5 6 7

D

Resource/ Labor A C D

B E

Days

Resource after leveling A C D

B E

Days

STEP 8: Draw resource histogram after leveling

0

2

4

6

0

2

4

RESOURCE LEVELING

4 General Rules;

1. NEVER USE CRITICAL ACTIVITIES when level the resources

2. Drag resources within its FLOAT/SLAG limit

3. DO NOT SEPARATE or BREAK the GANTT BAR

4. ALWAYS allocate the CRITICAL BAR at the BOTTOM of your GRAPH

RESOURCE LEVELING

A project consist of SEVEN (7) activities which are arranged as a network in Figure 7.4. The resources that needed in each activity are as follow:

Activity A = 20 person per day, for 6 days

Activity B = 15 person per day, for 3 days

Activity C = 15 person per day, for 3 days

Activity D = 10 person per day, for 3 days

Activity E = 15 person per day, for 3 days

Activity F = 35 person per day, for 3 days

Activity G = 5 person per day, for 3 days

Do a resource leveling in this project if total of 35 workers is available.

Example 2

RESOURCE LEVELING

A

B

C

F

G

E

D

6

3

3

3

3

3

3

1

2

3

4

5

6

Figure 7.4

Example 2

RESOURCE LEVELING

0

0

A

B

C

F

G

E

D

6

3

3

3

3

3

3

9

3

3

9

6

6

9

9

12

12

1

2

3

4

5

6

12

6

6

6

6

0

Figure 7.4a

After performing Forward Pass and Backward Pass Calculation

RESOURCE LEVELING

Act Duration

(days)

Lab ES LS EF LF TF

A 6 20 0 0 6 6 0

B 3 15 0 0 3 9 6

C 3 15 0 0 3 9 6

D 3 10 3 9 12 12 6

E 3 15 3 9 12 12 6

F 3 35 6 6 9 9 0

G 3 5 9 9 12 12 0

Calculating the total float

RESOURCE LEVELING Example 2: Draw the bar chart and level the resources accordingly

1 2 3 4 5 6 7 8 9 10 11 12 A

B

C

D

E

F

G

20 20 20 20 20

15

15

15

15

15

15 15

10 10 10

35 35

Total requirement 50 50 50 45 45 45 35 35 35 5 5 5

40

30

20

10

0

C

D

E

B

G

activity

Resource/ labor

5 5

50

20

15 15

35

5

A F

days

1 2 3 4 5 6 7 8 9 10 11 12 20 20 20 20 20

15

15

15

15

15

15 15

10 10 10

35 35

50 50 50 45 45 45 35 35 35 5 5 5

40

30

20

10

0

C D

E

B

G days

5 5

50

20

15 15

35

5

A F

35

35 35 35 35 35 35 35 35 35 30 30 30

days

35 35 35 35 35 35 35 35 35 35 35 35

15 15 15 10 10 10 - - - -30 -30 -30

Original bar chart After leveling

RESOURCE MANAGEMENT

2) Materials

• Devising control over raw materials : The quality of the finished product is determined mostly by the quality of raw materials. When necessary, a resident inspector may be deputed by the QC Dept in the vendor's place to see that only goods in accordance with specifications are supplied. It is advisable to re-inspect the raw materials before putting them to actual use.

• Fixing standards and specifications : Predetermine standards and specifications. The practice should be to provide quality instructions in the form of drawings, showing shapes, dimensions and specifications describing colour, strength, thickness, chemical composition, etc.

RESOURCE MANAGEMENT

2) Materials (cont.)

• Locating inspection points : When the points at which defects occur are wrongly located or located with delay, it hinders quality control. Therefore there should first inspection of the raw materials at the vendor's places, then at the company's plant, then at the various points during the process of production and finally at the time of packing. The defects are likely to occur at these points. The finished goods can be cleared after obtaining 'O.K.' or 'All Correct' from the QC Dept.

• Maintaining records : The Quality Control Department is responsible for maintaining all records relating to quality inspection and control and the number rejected.

Example for material management flowchart (which follows “quality”)

FOR YOUR INFORMATION…

• Wastages in construction site can be in between the range of 3% -8% of total materials usage.

• Malaysian Construction Industry is spending more than RM20 billion in project development yearly. Imagine that… – If materials consist of 30% of RM20 billion. It will be

RM6 billion.

– Taken the average of 5% wastages; it will be RM300 million (being dumped yearly…)

» What can you do with those huge sum of money??

FOR YOUR INFORMATION… (cont.) • Therefore, in order to minimize the wastages, please review the following fishbone chart

(and of course, please tackle and manage the causes carefully):

The causes of wastages in construction site

RESOURCE MANAGEMENT

3) Machineries

• Provide adequate equipment to execute the work.

• Maintaining quality of equipment: The final quality of the products is conditioned by the quality of the equipment and other devices used. For example, the QC Dept is responsible for testing the equipment used in inspection such as gauges, which measure dimensions, electronic devices, magnetic devices and industrial radio graphical instruments.

RESOURCE MANAGEMENT - MACHINERIES

• Exercising control over construction operations : In order to execute efficient practices, the technical expert of the QC Dept must investigate, from time to time, the operating methods. Such investigation helps to eliminate all possible variables.

• Purchasing is responsible for acquiring the materials/machines needed to make the product. Purchasing must locate sources of supply, ensure that the parts and materials needed are of sufficiently high quality, and negotiate a purchase price that meets the company’s budget as identified by finance.

COMMUNICATION MANAGEMENT


Good communication and coordination is essential to accomplish the overall goals of the project.

Efficiency in building depends upon the quality of relationship between the client, professionals, contractors and sub-contractors without lacking of cohesion within the building team (Emmerson, 1962).

As building is a people’s business, relationships are critical to the efficiency in the construction sector and emphasis should be put to improve integration, teamwork and partnering arrangements (Latham 1994, Egan 1998, 2002).


Within the organisation, good communication and a good feedback system are important to convey ideas to the management and to incorporate the necessary changes.

One effective strategy might be open lines of communication that allow direct access for any employee, at any level, to contact upper management regarding an idea for improvement or a particular concern. It is very important that management reacts to the concerns and ideas of the employees.


Factors to achieve good communication in construction: • Quality techniques/tools to solve problems – employee

survey • Effective top-down and bottom-up communication • Feedback through listening, appropriate planned meetings

and supportive body language in face to face communication • Operate no blame culture to ensure people are prepared to

be open in their communications, with a willingness to learn from mistakes.

THANK YOU

total quality management in construction project -...

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