QUALITY

MANAGEMENT

DIZON, YVETTE E / AR51FA2

QUALITY MANAGEMENT

WHAT IS QUALITY MANAGEMENT?

THE ACT OF OVERSEEING ALL ACTIVITIES AND TASKS

NEEDED TO MAINTAIN A DESIRED LEVEL OF EXCELLENCE.
THIS INCLUDES CREATING AND IMPLEMENTING QUALITY
PLANNING AND ASSURANCE, AS WELL AS QUALITY
CONTROL AND QUALITY IMPROVEMENT. IT IS ALSO
REFERRED TO AS TOTAL QUALITY MANAGEMENT (TQM).
QUALITY MANAGEMENT

PROCESS APPROACH OF TQM

QUALITY MANAGEMENT

8 MANAGEMENT PRINCIPLES (ISO 9001)

1. CUSTOMER FOCUS
2. LEADERSHIP
3. INVOLVEMENT OF PEOPLE
4. PROCESS APPORACH
5. SYSTEM APPROACH
6. CONITNUAL IMPROVEMENT
7. FACTUAL APPROACH
8. MUTUAL BENEFICIAL SUPPLIER RELATIONSHIPS
QUALITY MANAGEMENT

COST OF QUALITY
A. Contractors pay a significant price for poor
quality resulting from accidents, waste, rework,
inefficiencies, poor subcontractor performance
and poor communication - these costs are
estimated to be between 5% and 30% of the
construction cost of a facility
B. Cost of nonconformance - includes both direct
and indirect costs of not doing things right the first
time
QUALITY MANAGEMENT

COST OF QUALITY
1. Factors
a) Accidents
b) Omissions
c) Errors
d) Poor workmanship
e) Being late
2.Results
a) Rework
b) Recalls
c) Expediting
QUALITY MANAGEMENT

COST OF QUALITY
d) Removal of punch list items

e) Time extensions

f) Litigation costs and damages

g) Penalties and liquidated damages

h) Increased insurance costs

QUALITY MANAGEMENT

COST OF QUALITY
C. Cost of Conformance - includes preventive
measures
1. Inspection of direct hire work
2. Inspection of subcontractor work
3. Inspection at vendor source of supply
4. Inspection of shipments
5. Review of shop drawings
QUALITY MANAGEMENT

COST OF QUALITY

6. All training costs, including safety

7. Facilitator costs
8. Salary of quality coordinator
9. Meetings of the steering committee and quality improvement
teams
10. Administration of the quality management program
11. Reward system
QUALITY MANAGEMENT

COST OF QUALITY
C. Cost of Conformance - includes preventive
measures
1. Inspection of direct hire work
2. Inspection of subcontractor work
3. Inspection at vendor source of supply
4. Inspection of shipments
5. Review of shop drawings
QUALITY MANAGEMENT

COST OF QUALITY

6. All training costs, including safety

7. Facilitator costs
8. Salary of quality coordinator
9. Meetings of the steering committee and quality
improvement teams
10. Administration of the quality management program
11. Reward system
QUALITY MANAGEMENT

COST OF QUALITY

6. All training costs, including safety

7. Facilitator costs
8. Salary of quality coordinator
9. Meetings of the steering committee and quality
improvement teams
10. Administration of the quality management program
11. Reward system