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Custom New Home Construction Project

Phase 3 IP Project Performance and Quality Assurance Dean Garner MPM357-1104B-02 Professor Granville Jones December 5, 2011

Custom New Home Construction Project Table of Contents

Project Outline ............................................................................................................................................. 1 Organizational Readiness for Quality Management ................................................................................ 4 Quality Systems Analysis ........................................................................................................................... 5 Quality Dimensions Criteria ...................................................................................................................... 7 Quality Process Improvement Tools & Techniques ................................................................................ 11 Quality Performance Monitoring & Control ........................................................................................... 13 Three Levels of Quality Management ..................................................................................................... 14 Quality Performance Communication Plan ............................................................................................ 15 References ............................................................................................................................................... 16

Custom New Home Construction Project


PROJECT OUTLINE

This is a custom new home construction project for a retired Colonel in the Army. This home has lots of custom features and will require the services of 6 contractors and their work teams. This will be a 45 day turnaround for project completion barring unforeseen risks. The project is scheduled to begin with an RFP process on November 15, 2011. There will be a 7 day wait for all submitted RFPs and a 7 day period for review and award of all contracts. The start of the project is scheduled with the lot clearing and foundation pour on December 1 - 3, 2011. A contingency plan and a quality system are in place to forestall the unforeseen with regards to schedule and budget. This project is being managed by ABC Construction, MS Project 2010 and the Plan-DO-Check-Act (PDCA) management system. The PDCA system will be used to track and plan the project for continuous improvement from start to finish. (Bulsuk.com, 2009) MS Project 2010 helps the successful completion of the project because it minimizes the risk to the schedule and budget as it allows for dynamic changes to be incorporated seamlessly into the project as the needs arise.

Custom New Home Construction Project


ORGANIZATIONAL READINESS FOR QUALITY MANAGEMENT ABC Construction has employed several different quality management systems throughout the years. Systems such as Six Sigma, ISO 9001, Baldrige and PDCA have been tried, sampled and utilized in order to maintain and improve business performance. Recently,

the PDCA system has provided the most useful format for working in and around the different contractors that are needed to build a home. With the PDCA system and using MS Project in concert with one another, we are able to see where the project is at clearly and to also systematically handle the work projects logistically. With these two tools in place, ABC Construction is more than capable and prepared for the upcoming custom home construction project.

Custom New Home Construction Project


QUALITY SYSTEMS ANALYSIS Below are three of the afore mentioned quality management systems that have been

researched and utilized by ABC Construction. Since ABC already has in place and offered and explanation of the PDCA system, only Six Sigma, ISO 9001 and Baldrige will be explained here.

Six Sigma

Six Sigma was developed by Motorola back in 1986 as a way to not only increase proficiency but also to identify and eliminate inconsistencies in business processes. It is a system specifically designed to reduce the number of defects in a process down to 3.4 parts per million. Six Sigma has come to be known as being based on a process called DMAIC which stands for the following: Define-and identify problems and objectives of the project, Measureunderstand performance to the fullest, Analyze-collect, measure and validate root to the problem, Improve-remove cause of problem and put in place the solution & lastly, Control-in order to maintain performance, standard must be established. All in all, the Six Sigma system should not be mistaken for anything other than what it is: a statistical process of strengthening an organizations ability and capacity for process improvement; a methodology for reducing defects. (scm.ncsu.edu, 2003)

ISO 9001

Known as the standard for quality management, ISO 9001 differs from Six Sigma in that Six Sigma identifies and solves specific problems in quality and ISO 9001 is used as a scale of a companys efforts towards quality management. ISO, meaning-international organization for standardization, comes through certification from a company to its customers to show that

Custom New Home Construction Project


acceptable standards have been met to ensure that the end product or service is of quality. To accomplish this ISO 9001 offers the user that ability to track, measure and document the processes and knowledge of those processes for quality control and for training in the future. This allows the user to evaluate and revise certain processes that are ineffective or faulty. In short, ISO 9001 shows guidelines for problem solving, but does not reveal what those process look like in the case of Six Sigma. Six Sigma on the other hand does not evaluate how quality management might affect an organization. (ictsecuriti.com, 2010)

Baldrige

This system focuses on the overall management framework and seeks to enhance performance across the entire organization. As it is applied largely to the culture of the company and what criteria will lead to a highly ethical and sharp performing group, the Baldrige quality program works well to align with other systems like ISO 9001 and Six Sigma. Baldriges focus on tracking all-necessary and important-company outcomes is the path to making Six Sigma a better program in the end. Baldrige offers a sort of direction for how a product focus approach can be improved upon. Obviously, Baldrige is a macro approach and ISO 9001 and Six Sigma are closer to a micro approach. There are seven criteria that Baldrige focuses on: Leadership, Strategic Planning, Customer and Market Focus, Information and Analysis, Workforce focus, Process Management and Business Results. (sriregistrar.com, 2008)

Custom New Home Construction Project


QUALITY DIMENSIONS CRITERIA

Quality, as defined from the consumers perspective, are fewer defects and a greater number of features that meet the consumers needs. (Juran, 1999) These two aspects are the cornerstone for an effective quality assurance program. The key, according to David Garvin, is not just in protecting consumers from annoyances but also in pleasing them. (Garvin, 1987) The following are eight dimensions of quality as defined by David Garvin along with my interpretation of how that quality can be utilized within my custom home construction project. Performance refers to the products overall operating characteristics with measurable attributes. Performance on my project can be measured through the timeliness of the project schedule and the closeness the project is to budget. Features are the secondary or supplemental aspects of a products basic functions. The features of my project would also be the timeliness with which my company will be a custom home along with the additional construction aspects of our custom design. Reliability refers to the probability of a product malfunctioning. Reliability within my project would be found in our ability to maintain schedule and stay on budget. Conformance is the design and characteristic of a product that meets established standards as it applies to defect rates and number of complaints or calls for service from consumers. Conformance within my project would be the established and historical craftsmanship of my companys custom homes. Durability is the amount of use one gets from a product before it wears down. Durability within my project would be found in the quality of craftsmanship and the lack of homeowner maintenance after 5 and 10 years of ownership.

Custom New Home Construction Project

Serviceability is the consumers ability to receive speed, courtesy, competence and ease of repair. Serviceability within my project is found in the relationship established with the homeowner and adjusting to their individual needs or desires for the project.

Aesthetics are the look, feel, taste, smell and sound of a product. Aesthetics within my project are the custom hardwood cabinets in every wet area, rounded corners, granite on all countertops and more.

Perceived quality is the reputation and other indirect measures that are the basis for a consumer to choose one product over another. Perceived quality within my project is a history of building a fine custom home at a reasonable price in an expeditious timeframe.

In conclusion, quality starts with a communication of an organizational culture that establishes the vision, policies and goals for maintaining said quality. (Juran, 1999) The culture of an organization must begin and remain with quality as the first priority. My company has made a name for itself as a company that does a job right the first time and without excuses.

Quality Dimensions

Description of what it is in terms of project Whether the project is on time and budget

Criteria to Measure

Meets or exceeds criteria

Performance

Assess MS Project timelines and budget flows

Custom New Home Construction Project

Features

The custom design aspects of the custom home

Make sure design is outside of spec home deliverables Using only the best materials and qualified craftsmen to build the home

Reliability

Refers to the quality of the craftsmanship and also the ability to stay on time and budget for the project Conformance is the historical reputation of ABC construction company

Conforms

Make sure all bonding issues are settled before contracting and before start date of project By using only the most qualified and following a historically accurate plan

Durability

Points to the lack of homeowner maintenance required for the first 5 & 10 years of ownership. Homeowner has initial autonomy in chooses several custom aspects of the construction

Serviceability

Allowing homeowners to be in on all project stakeholder meetings and listening and adhering to

Custom New Home Construction Project


and design Aesthetics Custom aspects like hardwood in high traffic and tile in all wet areas as well as custom cabinets throughout the home. The reputation of quality custom home building precedes ABC construction company their requests No cutting of corners here. Only the best craftsmanship and quality materials for the project

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Perception

Doing a job right the first time, every time is how to build a positive perception

Custom New Home Construction Project


QUALITY PROCESS IMPROVEMENT TOOLS AND TECHNIQUES Process improvements and business processes are put in place to bring the greatest

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benefit to the project. A business process by definition is one that involves a series of steps that are necessary to follow to carry out a particular aspect of a project or task. (McGraw-Hill.com, 2008) These steps are usually linked and are evaluated for their value and how they interact with one another. Below are three such processes that were evaluated for this project and found to be a potential fit. PROCESS IMPROVEMENT TOOLS Value Stream Mapping this process is a lean manufacturing analysis of the flow of materials and/or information. This process was developed by Toyota and brought to the U.S. in 1957. The focus is on what is of value and what is a waste within the project processes. (Summers, 2009) Kaizen is a Japanese word meaning change for the better and it involves the continuous improvement of processes from manufacturing to business management. These activities meant to improve processes include, but are not limited to, the purchasing of materials and logistics of critical resources from both time and budget. (Summers, 2009) Kanban is another Japanese word meaning signboard or billboard and is a scheduling system telling what, when and how to produce something. Specifically, it improves process management by focusing on visual control of the process (Summers, 2009). Toyota again is the progenitor of this process improvement method and utilized the system with literal colored cards that signaled the depletion of inventory or materials. Electronic or E-Kanban systems work as an enterprise resource planning (ERP) tool which allows for real time signaling of demand for a product or service.

Custom New Home Construction Project


CONTRAST Although all three of these processes seek to improve on the flow and management of either people, time or money within a given task or project, the clear winner for me and my

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project is the Kaizen process. Philosophically and procedurally, Kaizen is a better fit for ABC Construction Company and this custom new home construction plan. Kaizen focuses on business management through the prism of human resource management; It is the quintessential focus on work smarter, not harder. Kaizen follows the Plan, Do, Check and Act (PDCA) system that was identified by this project manager as the best fit for quality management in this project. There are five key elements found in Kaizen, they are: quality, effort, involvement of all employees, willingness to change, and communication. In conclusion, and to reiterate, this is a custom new home construction project. This project will rely on the cooperation of multiple contractors and the project manager to work in a cohesive fashion in order to stay on time and on budget. By utilizing the principles and guidelines within Kaizen and PDCA this project and future projects for ABC will benefit greatly. KAIZEN CARD EXAMPLE:

(Wcmfg.com, n.d)

Custom New Home Construction Project


QUALITY PERFORMANCE MONITORING AND CONTROL

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Custom New Home Construction Project


THREE LEVELS OF QUALITY MANAGEMENT

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Custom New Home Construction Project


QUALITY PERFORMANCE COMMUNICATION PLAN

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Custom New Home Construction Project


REFERENCES Bulsuk.com, (2009). Taking the first step with the PDCA. Retrieved on November 21, 2010 from: http://www.bulsuk.com/2009/02/taking-first-step-withpdca.html#axzz1fPM54oLL

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Garvin, D.A., (1987). Competing on the eight dimensions of quality. Retrieved on November 23, 2011 from: http://ehis.ebscohost.com.proxy.cecybrary.com/eds/pdfviewer/pdfviewer?sid=a6286586a4af-4e23-9c14-36e376cc6b5f%40sessionmgr113&vid=4&hid=121 Juran, J.M., (1999) Jurans quality control handbook. McGraw Hill : Columbus, OH McGraw-Hill.com, (2008). Process management. Retrieved on November 30, 2011 from: http://highered.mcgrawhill.com/sites/0073526703/student_view0/ebook/chapter1/chbody1/process_management .html Summers, D., (2009). Lean tools and techniques, Ch. 12. Prentice Hall: Upper Saddle River, NJ Wcmfg.com, (n.d.) Kaizen pocket cards. Retrieved on December 5, 2011 from: http://www.wcmfg.com/KaizenSupplies.htm

Custom New Home Construction Project

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