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APPENDIX E 65 6. 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. 7. 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: 1. The information forms baselines for future project comparisons of performance. 2. Where the largest cost of quality expenditures occur. 3. 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!
APPENDIX E 66 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.
