APPENDIX E
QUALITY PERFORMANCE MEASUREMENT

by William B. Ledbetter

To utilize the Quality Performance Management System, the project management team should divide a project into its major phases (e.g. design, construction, and start-up) and its major disciplines of work (Figure E1). Whenever possible, the disciplines should include those needed for the constructed product, but the number of disciplines should be kept to a minimum. It is very important that the discipline breakdown be consistent throughout ALL phases of the project. For example, an item of work during the design phase which is classified as CIVIL must not be classified as STRUCTURAL during the construction phase. Unless this is rigidly followed, the resulting information will be of little use.

Once a project is divided into its major phases and disciplines, the following three types of costs must be captured:

  1. The normal cost of performing work (which is the productive work).

  2. The quality management costs (by major activity).

  3. The cost of rework (by primary CAUSE).



The National Academies | 500 Fifth St. N.W. | Washington, D.C. 20001
Copyright © National Academy of Sciences. All rights reserved.
Terms of Use and Privacy Statement



Below are the first 10 and last 10 pages of uncorrected machine-read text (when available) of this chapter, followed by the top 30 algorithmically extracted key phrases from the chapter as a whole.
Intended to provide our own search engines and external engines with highly rich, chapter-representative searchable text on the opening pages of each chapter. Because it is UNCORRECTED material, please consider the following text as a useful but insufficient proxy for the authoritative book pages.

Do not use for reproduction, copying, pasting, or reading; exclusively for search engines.

OCR for page 61
Inspection and Other Strategies for Assuring Quality in Government Construction APPENDIX E QUALITY PERFORMANCE MEASUREMENT by William B. Ledbetter To utilize the Quality Performance Management System, the project management team should divide a project into its major phases (e.g. design, construction, and start-up) and its major disciplines of work (Figure E1). Whenever possible, the disciplines should include those needed for the constructed product, but the number of disciplines should be kept to a minimum. It is very important that the discipline breakdown be consistent throughout ALL phases of the project. For example, an item of work during the design phase which is classified as CIVIL must not be classified as STRUCTURAL during the construction phase. Unless this is rigidly followed, the resulting information will be of little use. Once a project is divided into its major phases and disciplines, the following three types of costs must be captured: The normal cost of performing work (which is the productive work). The quality management costs (by major activity). The cost of rework (by primary CAUSE).

OCR for page 61
Inspection and Other Strategies for Assuring Quality in Government Construction Figure E1 Interrelationships Between Project Phases and Major Disciplines Most organizations use only a handful of activities as quality management, ranging from design and constructibility reviews to inspections and tests. They include both prevention and appraisal activities. Each organization should establish the specific quality management activities deemed necessary and develop clear definitions for them. The Construction Industry Institute (CII) lists 15.37 Rework is categorized by major cause. The cause is coupled with the time of detection (phase) for management action. The CII identifies a total of 26 possible deviation categories (marked "x" in Table E1).38 37   The Quality Management Task Force, May, 1989. Measuring the Cost of Quality in Design and Construction, CII Publication 10-2, The Construction Industry Institute, The University of Texas at Austin. 38   The Quality Management Task Force, February, 1990. The Quality Performance Management System: A Blueprint for Implementation, CII Publication 10-3, The Construction Industry Institute, The University of Texas at Austin.

OCR for page 61
Inspection and Other Strategies for Assuring Quality in Government Construction TABLE E1 Major Causes of Rework, by Phase Primary Cause   When Detected (Phase) (Party and Type) Design Procurement Construction Start-Up Owner Change x x x x Designer Error/Omission   x x x Designer Change x x x x Vendor/Error/Omission x x x x Vendor Change x x x x Construction/Error Omission   x x   Constructor Change   x x   Transporter Error   x x x Organizations wishing to implement QPMS should perform the following steps: Acquaint all personnel with the purpose and scope of the QPMS. This is a very important step! In many organizations there is a "cultural" bias against this type of effort that must be overcome if QPMS is to be successful. The organization will achieve the desired result only by assuring everyone that the results are only going to be used to help an organization improve the quality of its operations and the products and services it provides to its customers, thereby improving the organization's competitive position. Furthermore, the organization must assure personnel that the system will NOT be used as a tool for punishment. Examine specific organizational needs for the data. Each organization must adapt QPMS to its specific needs and procedures. The organization decides which project phases are to be tracked and what major disciplines are involved. It should define disciplines clearly for the entire project and use IDENTICAL DISCIPLINE BREAKDOWNS FOR ALL PHASES.

OCR for page 61
Inspection and Other Strategies for Assuring Quality in Government Construction Decide which quality management activities and rework causes should be tracked. Each organization and project is unique. Each organization must identify which quality management activities and rework causes are germane to most of the projects that the organization executes and define them clearly. Modify the existing accounting system or set up an independent system to implement the QPMS. Some accounting systems are quite flexible and can be adapted to include the QPMS categories. Others will not accommodate the system. If the existing system is not adaptable, it is relatively easy to develop a stand-alone coding system which can be used in conjunction with a personal computer to capture, analyze, and report quality-related data with minimum effort. Develop forms to capture relevant quality-related data. The organization may use its existing forms, if they track the quality-related data required by QPMS, or develop new forms. Some quality costs, such as those in Table E2, require frequent, TABLE E2 Informational Requirements for Capturing Cost of Quality Data Personnel times/costs By salary or wage scale By quality management activity or rework category By discipline and phase Equipment usage/costs By hourly or daily rate By quality management activity or rework category By discipline and phase Materials usage/costs By quality management activity or rework category By discipline and phase even daily, tracking. Fortunately, continual record-keeping of such information is quite common in the construction industry and should represent no great additional burden. Some quality costs may be too small to justify tracking (e.g., materials used in design).

OCR for page 61
Inspection and Other Strategies for Assuring Quality in Government Construction Train the appropriate personnel in the procedures necessary to gather the correct information. Quality begins with training and ends with training. Correct information will only be obtained by adequate training of appropriate personnel in the QPMS information requirements. Monitor and modify the organization-tailored system as necessary to capture and report the data in meaningful terms for management analysis and action. The costs of quality should be analyzed for each discipline, each phase of the project, and finally for the project as a whole. Since project cost breakdowns are typically provided at regular intervals, beginning with the estimate and ending with a wrap-up, this information can be integrated with the typical cost information to monitor quality performance and provide for rapid management action. USE OF THE INFORMATION Analysis of the cost-of-quality information on industrial projects from design through start-up indicates: The information forms baselines for future project comparisons of performance. Where the largest cost of quality expenditures occur. The root causes of rework. This knowledge provides the basis for decreasing the total costs for quality through optimization of quality management efforts leading to a minimization of rework. However, organizations should be aware that, initially, both the perceived and actual cost of quality will increase (Figure E2). Increased awareness and emphasis on quality usually means more quality costs are discovered and documented. Once implemented, the QPMS will offer guidance on what improvements can be made. Implementation of these improvements will help improve the processes used to achieve quality and reduce the overall cost of quality!

OCR for page 61
Inspection and Other Strategies for Assuring Quality in Government Construction Figure E2 Measured and Actual Cost of Quality with Time for an Organization Implementing the Quality Performance Management System The public sector of the construction industry can learn from the experience gained in the industrial sector. Although not an alternative to inspection, implementing the QPMS will provide managers with vital information on where improvements can be made, allowing them to optimize scarce inspection resources and achieve quality in a more cost-effective manner.