PROJECT QUALITY

MANAGEMENT

By

Prof. Dr. Sajjad Mubin

 QUALITY
 The world quality has different definitions, ranging from
conventional to those which are more strategic. Conventional
definitions of quality usually describe as“ a degree of excellence”
or “ a degree of performance to a standard”.
 Modern concept of quality does not requires the highest degree of
excellence and thus can be defined as “a product or service that
meets the customer’s expectations”.

“Quality is predictable degree of uniformity and

dependability, at low cost and suited to market.
Quality means meeting customer’s
requirements ,formal and informal, at lowest cost first
time and every time” (W. Edwards Deming)
 MODERN DEFINITION OF QUALITY
There are at least three views of quality product based, manufacturing based and
user based. Many authors have defined quality as conformance to specification or
lack of variations.
 
1. Quality is predictable degree of uniformity and dependability, at low cost
and suited to market. Quality means meeting customer’s requirements,
formal and informal, at lowest cost first time and every time (W. Edwards
Deming)

2. Quality is fitness for use. (Juran)

3. Quality is conformance to requirements. (Crosby)

In the TQM philosophy it is the customer who decides whether an item is of high
quality or not. Therefore any definition must include the customer. Thus the
good definition of quality as used in TQM is:

4. Quality is totality of features and characteristics of a product, service or,

process, which bears on its ability to satisfy a given need; from the customer
 Quality Gurus
 Walter Shewart
 In 1920s, developed control charts
 Introduced the term “quality assurance”
 W. Edwards Deming
 Developed courses during World War II to teach statistical quality-control
techniques to engineers and executives of companies that were military suppliers
 After the war, began teaching statistical quality control to Japanese companies
 Joseph M. Juran
 Followed Deming to Japan in 1954
 Focused on strategic quality planning
 Armand V. Feigenbaum
 In 1951, introduced concepts of total quality control and continuous quality
improvement
 Philip Crosby
 In 1979, emphasized that costs of poor quality far outweigh the cost of preventing
poor quality
 In 1984, defined absolutes of quality management—conformance to
requirements, prevention, and “zero defects”
 Kaoru Ishikawa
 Promoted use of quality circles
 Developed “fishbone” diagram
 Emphasized importance of internal customer
 WATERFALL MODEL
Checking assumptions
Feasibility Study &
Requirements Definition Verify Needs

Checking Appraisal & Approval Quality

Appraisal & Approval
Verifying assumptions

Project Design Design Validations

Third Party Validation
Resident Supervision
Execution
On-going Quality Control

Testing & Third Party Validation

Commissioning
Acceptance testing

Operation & Maintenance

23 October 2003 5
Relative Cost to Fix Defects

© 2000-6 D W Chadwick 6
Deming Wheel: PDCA Cycle

4. Act 1. Plan
Institutionalize Identify
improvement; problem and
continue cycle. develop plan
for
improvement.

3. Check 2. Do
Assess plan; is it Implement
working? plan on a test
basis.
 Cost of Quality
• Cost of Achieving Good Quality
– Prevention costs
• costs incurred during product design
– Appraisal costs
• costs of measuring, testing, and analyzing
• Cost of Poor Quality
– Internal failure costs
• include scrap, rework, process failure, downtime, and
price reductions
– External failure costs
• include complaints, returns, warranty claims, liability,
and lost sales
 Cost of Achieving Good Quality
Prevention Costs
• Quality
Trainingplanning
costs costs
–
– costs
costs of
of developing
developing and
and implementing quality
putting on quality management
training programs for
program
employees and management
•• Product-design costs
Information
–
costs
costs of designing products with quality characteristics
– costs of acquiring and maintaining data related to quality, and
• Process costs of reports on quality performance
development
– costs expended to make sure productive process conforms to
quality specifications
 Cost of Achieving Good Quality
Appraisal Costs

• Inspection and testing

– costs of testing and inspecting materials, parts, and
product at various stages and at the end of a process
• Test equipment costs
– costs of maintaining equipment used in testing quality
characteristics of products
• Operator costs
– costs of time spent by operators to gar data for testing
product quality, to make equipment adjustments to
maintain quality, and to stop work to assess quality
 Cost of Poor Quality
Internal Failure Costs
•• Scrap costs
Process downtime costs
–– costs of poor-quality products
costs of shutting down productive process to fix problem
that must be discarded,
• Price-downgrading costs
including labor, material, and
indirect costs
– costs of discounting poor-quality products—that is, selling
• Rework costs
products as “seconds”
– costs of fixing defective
products to conform to quality
specifications
• Process failure costs
– costs of determining why
production process is
producing poor-quality
products
 Cost of Poor Quality

External Failure Costs

• Customer complaint costs • Product liability costs
– costs of investigating and – litigation costs resulting
satisfactorily responding to a from product liability
customer complaint resulting and customer injury
from a poor-quality product
• Product return costs • Lost sales costs
– costs of handling and replacing – costs incurred because
poor-quality products returned by customers are
customer dissatisfied with poor
• Warranty claims costs quality products and do
– costs of complying with product not make additional
warranties purchases
 Quality–Cost Relationship

• Cost of quality
– Difference between price of nonconformance
and conformance
– Cost of doing things wrong
• 20 to 35% of revenues
– Cost of doing things right
• 3 to 4% of revenues
– Profitability
• In the long run, quality is free
COST OF QUALITY IN
CONSTRUCTION PROJECTS
 Quality–Cost Relationship
TITLE AUTHOR ABSTRACT

Preventing non-conformity before a product is

Cost-based analysis of quality in manufactured or prepared to serve the customer is clearly
developing countries: a case study of Kazaz et the most appropriate action in reducing appraisal and
building projects. Build Environ 2005; al., 2016 failure costs because it is always the least costly, least time
40:1356–65. consuming, and least troublesome approach for providing a
quality product.

Poor project execution and deliverable performance

Enhancing the Quality of Construction considered one of the most recurring problems in the
Jamaludin
Environment by Minimizing the Cost construction industry. Most of the projects completed at
et al.,
Variance. Procedia - Social and sums much higher than the actual contract sum. This led
2014
Behavioral Sciences 153 (2014) 70 – 78 us to analyze the factors influencing the cost variance
during the construction stage.

Cost of poor quality (COPQ) in the construction industry

An Assessment Of The Critical Success
is a serious problem that the industry is faced with, due
factor For The Reduction Nokulung
to failure in preventing wastage and defects during
Of Cost Of Poor Quality In Construction a et al.,
construction work. The cost of poor quality remains
Projects In Swaziland. Procedia 2017
hidden and eats up to 40% revenues of the construction
Engineering 196 ( 2017 ) 447 – 453
enterprise.
Quality–Cost Relationship

TITLE AUTHOR ABSTRACT

CoQ is usually understood as the sum of conformance

A review of research on cost of
Thomson plus non-conformance costs, where cost of
quality models and best practices.
V et al., conformance is the price paid for the prevention of
Int J Qual Reliab Manage
2006 poor quality and cost of non-conformance is the cost
2006;23(4).
of poor quality caused by product and service failure

Companies rarely have a realistic idea of how much

Quality-related costing: findings Plunkett J
profit they are losing through poor quality. Smaller
from industry based research study. et al.,
firms most often do not even have any quality budget
Eng Manage Int 1988;4(4):247–57 1988
and do not attempt to monitor quality costs

There are many operational benefits that can be

Is a cost of quality system for you? Corradi, realized from the use of information generated from a
Natl Prod Rev 1994; 13:257–69 1994 CoQ system: the recognition of deficiencies in the
organization’s quality system
 HYATT REGENCY SKYWALK COLLAPSE
Kanas City, USA

ROOT CAUSE
Design Change in one of
the rod connections of
skywalk (DESIGN)
REMEDY
Design quality should be
checked earlier to avoid
such drastic conditions.
 DEEPWATER OIL SPILL
Gulf of Mexico

ROOT CAUSE
Defective Cement
(MATERIAL)

REMEDY
Material should be used
as per the Quality
Standards.
 SAMPOONG DEPARTMENT STORE COLLAPSE
Seoul

ROOT CAUSE
Substandard Concrete mix
& Design Flaws
(MATERIAL+DESIGN)

REMEDY
Quality should be checked
as per the Standards earlier
than implementation.
 RANA PLAZA FACTORY
Bangladesh

ROOT CAUSE
Design Failure due to illegal
additions on building
(DESIGN)

REMEDY
Design quality should be
checked not only in planning
but also during
implementation.
 BANQIAO DAM DISASTER
China

ROOT CAUSE
Design Failure and usage of
low construction material
(DESIGN+MATERIAL)

REMEDY
Design quality should be
checked as per Standards prior
to construction.
 ROOF COLLAPSE

ROOT CAUSE
Improper Design calculations
for Concrete Pouring, Improper
jointing of Shuttering and
usage low quality material.

REMEDY
Design quality and methods
should be standardized prior
to implementation.
 FOUR ERAS OF QUALITY

Era Focus
Inspection Product
Control Process
Quality assurance System
Total quality management People

Quality management theory development. Four Quality Management Eras

Features Inspection Quality Quality TQM / Six

control assurance Sigma
Pre-scientific
management 
Scientific
management    
Behavior
management    
Systems
management  
Cultural
management 
 Quality Management Standards
ISO 9000 SERIES

• ISO 9000 the first standard in the series titled QUALITY

MANAGEMENT AND QUALITY ASSURANCE STANDARDS
FOR SELECTION AND USE, is a guide for using four other
quality management and quality assurance standards (IS0 9001-
9004).
• ISO 9000 series of quality standards is designed for
international adoption. The intent is to develop a generic view
and structure of quality systems in order to encourage
international trade.
• ISO 9001,2,3 &4
• ISO 9001, QUALITY SYSTEMS- MODEL FOR QUALITY ASSURANCE IN DESIGN,
DEVELOPMENT, PRODUCTION, INSTALLATION AND SERVICING

It is to be used when conformance to specified requirements is to be ensured by the supplier

during design, developments, production, installation and servicing. It includes a set of
requirements for the suppliers quality management programs, beginning with top
management responsibility and providing objective criteria to verify that key elements for
quality.
• ISO 9002, QUALITY SYSTEMS- MODEL FOR QUALITY ASSURANCE IN
PRODUCTION, INSTALLATION AND SERVICING
It is similar to ISO 9001 except that it is limited to suppliers that only produce, install and
service the product and do not design and develop.
• ISO 9003, QUALITY SYSTEMS- MODEL FOR QUALITY ASSURANCE IN FINAL
INSPECTION AND TEST
This quality system is limited to guide lines for final inspection and testing because of the
relative simplicity of the product. This standard shifts responsibility for quality to the
supplier so the customer is assured of the level of quality when the product is received.
• ISO 9004, QUALITY MANAGEMENT AND QUALITY SYSTEM ELEMENTS
Provides guidelines for developing and implementing the quality management programs
required in ISO 9001, 9002, and 9003. These guidelines and suggestions help management
develop and effective quality management program so that their companies can be qualified
to meet ISO 9001, 9002, 9003 requirements.
PROJECT QUALITY
MANAGEMENT
(PMI body of knowledge)
1- INPUTS 1- INPUTS 1- INPUTS

-Quality policy -Quality management plan -work results

-Scope statement -result of quality control -quality management plan
- Product description measurements - Operational definitions
- Standards and regulations - Operational definitions - checklists
- Other process outputs 2- TOOLS AND TECH. 2- TOOLS AND TECH.
2- TOOLS AND TECH. - Quality planning tools and - inspection
techniques - Control charts
- benefit/ cost analysis
- Pareto diagrams
- Benchmarking - Quality audits
- Statistical sampling
- Flowcharting 3- OUTPUTS - flowcharting
- Design of experiments - Quality improvement - Trend analysis
3- OUTPUTS 3- OUTPUTS
- Quality management plan - Quality improvement
- Acceptance decisions
- Operational definitions - rework
- checklists - Completed checklist
- Inputs to other processes - Process adjustment
 Introduction
• Project quality management includes the process
required to ensure that the project satisfies the
needs for which it is undertaken.

• PQM includes all the activities of the overall

management function that determine the quality
policy, objectives, and responsibilities and
implement them within the quality system.
 Means of Implementation of
PQM
• QUALITY PLANING
• QUALITY ASSURANCE
• QUALITY CONTROL
• These processes interact with each other as well as with
the processes of other knowledge areas
• Each process involves an effort of one or more individual
or group of individuals based on the need of the project.
• Each process occurs at least once in every project phase
during the project life cycle.