C P A 7 0 3

Lecture 2
Quality Management System
Mohd Reza bin Esa
Lecture Outline
❑ Introduction

❑ Total Quality Management (TQM)

❑ ISO 9000

❑ QLASSIC

❑ Cost of Quality

❑ Quality Enhancement
INTRODUCTION
▪ Should focus on continuously improving quality – one of the key
global market differentiators
▪ Increasing consumer demand in the global environment for
higher quality construction

▪ Mindset of the clients and customers, in term of quality, need to

be educated – the importance of quality and life cycle costing in
assessing projects (e.g. energy saving, materials used, etc)
▪ Currently, cost is the main concern, whereby the construction
industry normally offering the lowest possible cost, which put the
quality to a secondary factor
▪ A shift of mindset towards the longer term benefits of higher
quality (lower operating and maintenance costs, higher resale
value, etc) needs to be initiated

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▪ Is reflected in the exterior finish
▪ Meeting specification
▪ Fit for purpose
▪ Compliance with requirements
▪ Giving users what they want
▪ Giving users what they need
▪ Value for money

Quality certification:-
❑ ISO9000 Certification
❑ Malaysian Standard (MS)
❑ Total Quality Management (TQM)
❑ QLASSIC
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TOTAL QUALITY
MANAGEMENT
TQM

• TQM is an approach to operations that attempts to maximize the competitiveness

of an organization through the continual improvement of the quality of its
products, people, processes, and environment.

• TQM is the management of an entire organization so that it excels in all aspects of

products that are important to the customer.

• Elements of TQM:-
• Top Management commitment and involvement
• Customer involvement
• Education and training
• Design products for quality
• Develop supplier partnership
• Customer service, distribution and installation
• Building teams of empowered employees
• Benchmarking and continuous improvement
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 Quality Assurance/Control (QA/QC)

▪ QA/QC is a program covering activities necessary to provide quality in the work to

meet the project requirements.

▪ QA/QC involves establishing project related policies, procedures, standards,

training, guidelines, and system necessary to produce quality.

▪ QA/QC provides protection against quality problems through early warnings of

trouble ahead.

▪ QA/QC dictates that the organization shall ensure that the customer is not only
satisfied but delighted with the services rendered.

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▪ The specific procedures involved in the implementation of the QA/QC
program and related activities:-
a) Planning
b) Coordinating
c) Developing
d) Checking
e) Reviewing; and
f) Scheduling the work.

▪ Effective QA/QC reduces the possibility of changes, mistakes and

omissions, resulted in fewer conflicts and disputes.

▪ In construction, total control during design phase via “supervision”; project

quality control plan.

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Implementing TQM in the construction projects

▪ Obtain commitment of the Client to Quality;

▪ Generate awareness, educate, and change the attitudes of staff;

▪ Develop a process approach toward TQM;

▪ Prepare project quality plans for all levels of work;

▪ Institute continuous improvement;

▪ Promote staff participation and contribution using quality control circles and motivation
programs;

▪ Review quality plans and measure performance.

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ISO 9000 Standard
Overview

▪ The International Organization for Standardization (ISO) which is located at Geneva,

Switzerland; has a membership of more than 100 countries.

▪ An international standard used for certification of Quality Management System (QMS)

▪ Promotes process approach in developing, implementing and improving the

effectiveness of a QMS to enhance customer satisfaction by meeting customer
requirement

History of ISO 9000

Revised (1994, 2000, First introduced in the

Published in 1987 SIRIM adopted the
2008 and 2015) construction industry
standard in 1987
on 15th January 1993

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ISO 9000 Standard

It is a series of QMS standards:-

▪ ISO 9000 QMS : Fundamentals and Vocabulary
▪ ISO 9001 Standard : Quality Management System Requirement
▪ ISO 9004 QMS : Guidelines for performance improvement

The ISO 9000 series are based on seven quality management principles (QMP) which
are:
▪ QMP 1 – Customer focus
▪ QMP 2 – Leadership
▪ QMP 3 – Engagement of people
▪ QMP 4 – Process approach
▪ QMP 5 – Improvement
▪ QMP 6 – Evidence-based decision making
▪ QMP 7 – Relationship management

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▪ To ensure policies and work procedures are documented
▪ To ensure conformance to policies and work procedures
▪ To ensure continual improvements are implemented

▪ Supplier can provide more confidence to their clients.

▪ To ensure that the business operates its own specified procedures and
efficiency targets.
▪ Provides clients with recognized, common & independent basis on which to
judge.
▪ Provides grounds on which potential performances in certain areas can be
judged.
▪ A starting point for “getting to know” new companies & how they work.

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Reasons:-
a) Many small and medium-sized companies are still practicing the traditional concept of
quality control i.e. quality by inspection.

b) Lack of the infrastructure necessary to establish & implement the system.

c) Lack of clear directions

d) Lack of necessary documentation

e) Lack of clear lines of authority & responsibility

f) Lack of suitable trained personnel

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▪ Adopt and implement the QMS through the process approach in running the operations

▪ Consistent compliance and practiced by all members

▪ Creates ISO awareness and inculcate continual improvement in our activities

▪ Show commitment and support to our QMS

− Quality policy
− Quality objectives

▪ Establish, comply and maintain our QMS documentations

− Quality manual
− Quality procedures
− Quality supporting documents

▪ Provide objective evidences for QMS

− Quality records
− Analysis of data reports
− Performances/ evaluations records

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QLASSIC
Overview
▪ Quality Assessment System in Construction (QLASSIC) is an independent method to
measure and evaluate the quality of workmanship and finishes of construction
work based on approved standards.

▪ QLASSIC enables the quality of workmanship between construction projects to be

objectively compared through a sampling and statistical approach.

▪ Objectives:-
• To benchmark the quality of workmanship of the construction industry.
• To establish a standard quality assessment system on quality of workmanship of
construction work
• To assess the quality of workmanship of a construction project based on the relevant
approved standard
• To be used as a criterion to evaluate the performance of contractors based on quality of
workmanship
• To compile data for statistical analysis
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Scope Process Flow
• QLASSIC sets out the standard on quality of workmanship for
various construction elements of building construction work.
• The quality of workmanship of a construction work is
assessed according to the requirement.
• Marks are awarded if the workmanship complies with the
standard. These marks are then summed up to calculate the
QLASSIC Score (%).
• QLASSIC assessments are carried out through site inspection
and use the principles of first time inspection. Construction
works that are rectified after an assessment will not be re-
assessed.
• The objective of this principle is to encourage the contractor
to "Do Things Right the First Time and Every Time".
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Application of QLASSIC

COMPONENT CATEGORY A CATEGORY B CATEGORY C CATEGORY D

(Landed (Stratified (Public (Special public
housing) house) building) building)
Structural 25% 30% 30% 30%
works
Architectural 60% 50% 45% 35%
works
M&E works 5% 10% 15% 25%
External works 10% 10% 10% 10%
QLASSIC score 100% 100% 100% 100%

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Examples

WHY?
• To assess the quality of our
Evenness of Surface Hollowness for Floor workmanship.
• To provide the standard quality
assessment system on quality of
workmanship of construction works.
Hollowness for Falls In Wet Areas
Internal Walls • To record the quality criterion for
contractor performance scorecard.

Straightness of Angle (Door Frame)

Edge or Angle Page 21
COST OF QUALITY
Overview

▪ Contractors often perceived TQM as an extra

cost.
▪ Cost associated with conformance and non-
conformance to requirements.
▪ Cost of non-conformance:-
− Rework
− correcting errors
− reacting to customer complaints
− Deficient project budgets due to poor
planning

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Cost of Quality

Preventive
Good
Appraisal
COST OF
QUALITY
Internal
Poor
External

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Cost of GOOD Quality

Preventive Cost Appraisal Cost

▪ Testing and inspection of purchased
▪ Quality planning material
▪ Process control ▪ Laboratory acceptance testing
▪ Design and development of quality ▪ Laboratory or other measurement
information equipment services
▪ Inspection
▪ Quality training and workforce ▪ Testing
development ▪ Checking labour
▪ Product design verification ▪ Set-up for testing or inspection
▪ Testing and inspection equipment
▪ Product engineering and shipping
release
▪ Field testing

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Cost of POOR Quality

Internal Failure Cost External Failure Cost

▪ Scrap ▪ Complaints within warranty

▪ Rework ▪ Complaints outside warranty
▪ Re-inspection ▪ Warranty claims
▪ Downgrading ▪ Repair
▪ Waste ▪ Product service
▪ Failure analysis to establish causes ▪ Product liability
of internal failure ▪ Product recall
▪ Loss of goodwill

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QUALITY ENHANCEMENT
❑ Quality and productivity are inseparable
concepts
❑ A comparison between output achieved from
a process or system and the inputs required to
produce it
E.g. output – buildings or infrastructure
input – resources consumed by the process to
generate these outputs

❑ Output delivers the income while input incur

costs
❑ If production does it right the first time and
produces products that are defect - free, waste
is eliminated and cost are reduced
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To enhance the level of productivity and quality, the
following key areas should be concerned:-

• Area 1 – Continue investment in human capital

development in construction;

• Area 2 – Enhance control and balance of workforce

supply;

• Area 3 – Accelerate adoption of IBS, mechanisation and

modern practices;

• Area 4 – Roll out technology advantage across project life-

cycle;

• Area 5 – Enhance availability of strategic information via

National Construction Industry Information Centre (NCIIC)

• Area 6 – Advance SME/Bumiputera capacity and

capability-building
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Largely low-skilled workforce and inadequate or mismatch in
training and development
• Workforce with limited skills
• Mismatch in training provided and skills required

• Streamline construction-related training and development

courses
• Improve curricula through content development with industry
participation
• Improve quality of training and trainers
• Fill gaps in construction-related courses
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Over-reliance on low-skilled foreign labour
❑ High proportion of unskilled foreign labour
❑ Relatively low cost to industry to procure foreign, low-skilled
labour

• Introduce manpower planning to match supply and demand

• Introduce tiered visa programme to raise skills mix of
foreign workers

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 Limited adoption of modern practices, mechanisation and IBS
• The current definition of components qualifying as IBS is vague
• Contractors risk cash flow issues during procurement of IBS components
• Relatively high import duty for IBS manufacturing equipment and
installation machinery
• Insufficient number of design consultants for IBS

Government Efforts:- • Harmonise IBS catalogue

▪ Use of IBS for affordable houses • Conduct cost-benefit analysis for IBS adoption to increase buy-in from
▪ Incentives for IBS manufacturers
key stakeholders
and suppliers
▪ IBS Academy • Separate procurement of IBS components from main contract
▪ IBS Models
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Limited adoption of information technology such as BIM
❑ Lack of required talents in Malaysia – small proportion of workforce are able to prepare plans in BIM and
effectively utilise it
❑ High cost of adoption
❑ Implementation complexity
❑ Requires changes to the current ways of working
❑ Lack of a standard object library
❑ Lack of guidelines
❑ Local authorities not fully equipped in terms of hardware and software
❑ Local authority staff not fully trained
❑ Requires collaboration and integration

• Facilitate IT advantage via licensing of BIM software

• Introduce BIM guide with IBS-harmonised library
• Introduce BIM-ready permit submission and approval issuance process
• Facilitate Local Authorities adoption of ICT to enable error-checking of construction project plans
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Lack of data and information-driven decision-making
• Lack of access, accuracy, breadth and depth of industry data

• Enhance data collection and analyses

• Consolidate disparate databases
• Provide pipeline data to facilitate effective business
planning
• E.g.
http://myn3c.cidb.gov.my/cidb_n3c/progress/index.php
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High proportion of subscale SMEs, including Bumiputera SMEs and entrepreneurs
• Majority of SMEs and Bumiputeras have relatively low productivity levels
• Only small proportion of Bumiputera contractors are involved in future growth areas such as in railworks, IBS and oil
& gas related construction
• Large number of Bumiputera firms lack scale
• Limited opportunities for Bumiputera firms to increase capability and capacity

• Enhance up-skilling of Bumiputera companies

• Develop specialist trade contractors in future growth areas
• Create opportunities for Bumiputera companies via extension of carveout and compete programme
• Enable further mechanisation of Bumiputera firms
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CONCLUSION
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THANK YOU