Tuesday, 29 January 2013

Quality Management System for Consultant Supervision of a Building Construction Project


The aim of the quality management system is to create high quality products, meet the customers’ need, fit for use or purpose and conform to requirements. Quality in construction projects is not only the quality of product and equipment used in the construction of a facility but the total management approach to complete the facility. The quality of construction depends mainly upon the control of construction. The construction cost and time of delivery are also important characteristics of quality.

In Vietnam, the quality management system, ISO 9000 and Total Quality Management, is also applied in construction field. ISO 9000 and Total Quality Management are considered as the most effective ways of quality managing. However, in recent years, when Vietnam adapted the international integration policy, both public and private sectors have also invested in Vietnam. Due to competition, many contractors bid at a very low cost just to get the project, thus, suffering the quality. Many completed projects have many defects especially high-rise buildings. Therefore, quality control system of the consultant is strongly necessary for both owner and contractor to assure quality and prevent any unexpected hazards.

Mr. Nguyen Tien Dung made a case study which main objectives were to: (i) know the quality management system of consultant supervision to manage construction works of a building project; and (ii) analyze the strength, weakness and problem.


Quality management system of consultant supervision is to manage implementation of quality management system in construction works by contractor as well as to ensure the quality of construction works complying with specification, and standard requirements. Both consultant and contractor control the quality of construction project to meet and satisfy client requirements as well as all contractual requirements at optimum cost and time.

This case study was performed aimed to control the construction measures which are related with quality control. This quality control is conducted based on the Vietnam standard and regulation. These provide contributions to comply importance standards and regulations which directly affect quality control in construction.

The quality management system in my company was based on the ISO 9001:1994 requirement system. The major issues of quality control are managing of incoming materials, monitoring and controlling of production process, testing and commissioning of the finished product. The system includes:

1. An organization structure, responsibility and authority in quality management system
2. Scope of supervision consultant process
3. Project procedure implementations
- Document system and data control
- Process control
- Inspection, testing, measuring and test equipment
- Inspection and test status
- Control of Non-conforming product and corrective and prevent action
- Control of quality records
- Internal quality audits
- Training

Furthermore, the case study also set up the communication process of managing quality and communication channel between the owner, supervising consultant, designing consultant and contractor to solve problems at the site.  The purpose is to solve quality issues concerning construction projects. Besides, documentations and data records for quality activities have also been mentioned. A model for managing quality has been defined and shown to apply to any construction project. The model involves multi-levels quality management participation, including contractors, engineers, and managers. It describes the quality management tasks and the roles supposing in a system relating construction quality control, quality assurance, and the interface between them. The report also shows the understanding of how quality management is implementation and engages participants at several management levels.

The quality management system functions as practiced in building construction. A system method to quality management, which emphasizes the main quality activities, has been reported. The case study also shows quality issues and QMS procedure, implementation problems regarded to analyze the strengths, weaknesses, problems and proposal possible recommendation of solutions to achieve quality and timely progress. However, due to limited time, the report only discusses about consultant supervision in controlling quality management system of a contractor in construction phase. There is remaining of time control, cost control which are very important of project in construction phase.

Strength

1. For quality policy and QMS

- The QMS implemented based on ISO9001 quality approval system with clear organization structure of each member. Project quality plan provides details on company policies and specific requirements of the project. System procedures state how the company policies are to be implemented, what is to be done and who has to do it. Obtaining and maintaining ISO9001 accreditation is a confirmation of top management’s commitment to the customer that a first class service shall be provided jointly by the project.

- The primary goals are to exceed the standards and requirements stipulated by our Clients in terms of quality, time and cost efficiency. The project is treated as if our own, and take great satisfaction and pride in the achievement of these goals.

2. For document, data control and project communication

- Project document are controlled in accordance with company system procedures to ensure the registration, distribution, security, accuracy.

- All incoming and outgoing documents are reviewed for accuracy and adequacy prior to issue and distribution to all relevant parties.

- Project manager shall always ensure that obsolete documents are not used for construction purpose. Invalid and/or obsolete documents shall be removed from the relevant sets of documents unless they are retained for legal and/ or knowledge preservation purposes in which case they shall be clearly identified as a Superseded document.

- Project communication: a clearly system used for this project for internal and external relevant parties. All project information shall be put in daily file and sent circular to all project staffs to read to update and get information to perform project effectively.

3. For construction control and quality control

- Construction management control will be achieved through programming activities. Based on the “For Construction” program including mile stone date, the supervision consultant will check and control detailed programs for each section of works called short term programs.

- Construction control will be achieved through the use of inspection and test plans that detail or reference the required standards to be achieved under contract. Inspection and testing will be carried out on this project to verify that the specified requirements for the product are met

- An non-conformance report will be used to record non-conformities. All non-conformances will be identified and monitored by project quality assurance manager.

Recommendation for further study

1. In order to achieve the efficient of the Quality management System, the responsibility, fulfill task of each member should be clearly identified.

2. Top Management commitment includes:
 - Establishing the quality policy to comply with requirement and continuous improvement.
- Establishing quality objective to meet product requirements
- Reviewing the quality management systems to maintain progress
- Ensuring necessary resource
- Measuring customer satisfaction at all levels

3. Continuous improvements the effectiveness of quality management system through:
- Quality policy
- Objectives
- Audit results
- Data analysis
- Corrective and preventive action
- Management review

4. Focus on the customer and the employee

5. Everybody’s participation into quality management implementation

His thesis abstract is copied and pasted below.


The report applies Quality Management System (QMS) ISO 9000 for project management and consultant supervision of a building construction project. It express the key issues in Quality Management System for supervision consultants and contractors. The report describes the quality management system with clear responsibilities of personnel and the role in a plan relating to quality control, quality assurance and quality improvement in construction project. Therefore, the role of supervision consultant is very important to ensure the project to achieve and meet with client requirements.

The report methodology is highlighted as the main philosophy which refers to the theories, local standards system and International Standard Organization ISO 9000. Moreover, the report also collects different source of data including company quality management system, project documents, project agencies, newspapers, construction law and standards in Vietnam. As a result, the study has shown the factors that most effect to project quality plan and the key issues to control project quality and quality management system framework for consultant supervision of a building in construction phase.

In this study, a quality management system of supervision consultant is established. This helps supervision consultant to control quality management system, procedure and implementation to ensure high quality product to meet customer’s requirements, expectations and definition of quality. Furthermore, the study also analysis the strength points, weakness points, quality problems for continuous improvement process to achieve higher demand of customer.






Project Owner’s Quality Management System: A Case Study of Phu Tho Building Resettlement Project


Construction industry is one of the key industries which have been proved through the total capital each year. To manage a project is very complicated because of many elements and parties involves in every phase of the project. Therefore, every project must develop the effective strategy to achieve the success. Thus, quality is the critical problem that should be paid more attention to ensure that the project could be run smoothly and effectively.

If the poor quality management exists the project will face with many difficulties which may lead to the project failures. On the other hands, many problems will occur through conflicts between parties, a lot of waste, rework, claims etc.

Implement the effective Quality management system (QMS) is the critical success factor and require more efforts not only from the project owner but also from the consultants, contractors, suppliers and clients as well.

Mr. Nguyen Huu Ky made a case study on a resettlement project which 2 main objectives were to: (i) study the Quality Management System (QMS) model in a high-rise construction project from the planning phase to construction phase under the owner’s perspective; and (ii) analyze strengths and weakness and provide recommendation for improvement


Besides a financial support, scheduling and quality plan for the project at the design stage, owners play a key role to deliver a project that meets quality requirements. To achieve this, owners need a system of quality control procedures for their content, manuals and instructions.

Firstly, the QMS of ownership is set up and committed by top manager and clear responsibilities of the members. Secondly, construction, procurement has been developed for selection of contractors and suppliers. Thirdly, the team ensures that the implementation process has to be consistent with the programs and plans submitted by the contractor and approved by the project management team. Finally, the QMS should be reviewed and improved the regular system. In the report, the author analyzed the QMS to find out the strengths and weaknesses under the owner’s perspective.

Moreover, from this case study, the author discussed the efforts of existing systems to improve project quality and effectiveness of the improved method. To reduce the problems of quality, project management team decided to improve the effectiveness of the program QA/QC increases the efficiency of monitoring, improving working conditions for workers and record all unsuitable products. Because of number of reasons, the operation is not enough to improve efficiency.

The result is the frequency of quality problems persist. The author proposed framework that helps the owner to resolve the issues and project management during construction. Framework of quality management system is proposed not only applied in the case, but also other projects.

However, because of time limitations, the report discusses the quality management system of the owners in the construction phase. There is the quality management system design and bidding phase is very important to the quality of projects.


- Develop the quality commitment slogan with the top managers.
- Develop the full task sheet and attached responsibility. Provide task sheet for all employees.
- The internal audits procedures should be reviewed by the project team to verify.
- Provide the incentive system to motivate employees.
- Quality records must be filed and stored carefully. Explain the meaning of NCR to the contractors and supervisors.
- And encourage them to issue NCR. Training and show examples for site engineers.
- Provide training to engineers and workers. Establish motivation programs/ fine and award programs.
- Consider change to apply ISO in the next project. Train the team to understand and apply the ISO.
- Require the sub-contractors follow and commit with the QMS of the project. Set up penalties when necessary and provide the incentive when they obey the QMS.
- Set up the QA/QC project team focus on analyze the data and evaluate the current situation. This team responsible for report to PM and PD. This team involves every party in the projects.
- Consider develop full manual. Refer to other manual and instruction from other projects or companies which could be applicable.
- Improve coordination with designer in term of design and inspection. Conduct peer review.
- Established change order procedure. Monitor closely the change orders and ensure the Supervisor/ - Contractors are acknowledge.
- Develop the procedure of the information flow chart, responsibility flow chart to control the information.

His thesis abstract is copied and pasted below.

Abstract

The report refers to the issue of quality management in construction projects in Vietnam from the Perspective of the unit owner. The quality of the work plays an important role in the success of the project and should be considered a proper way especially in today's modern environment.

In this report the problem of the quality management system will be discussed and analyzed thoroughly. Through a typical project report will analyze and synthesize the strong points and also limited points in the current quality management system. The key factors affecting the implementation of the quality management system will be given in the report. From the evaluation of which we can draw lessons learned to improve the organization's management system to help improve the efficiency of the project.

The PhuTho resettlement project will be selected to become the typical project. Since the project has been implemented through the method to analyze the situation we will have a clearer view of the quality management system has been applied in Vietnam. Since then develop a system more suitable in the current situation. 

Thursday, 24 January 2013

Application of Lean Production Approach in Integrated Project Scheduling Management


Construction project management focuses on the completion on time, ensuring committed quality, and within budget plan. Delay is one of the major problems in construction projects which is defined as the excess time in completing the project as specified in the contract, or project delivery commitments of the parties. Consequences of delay are different for different parties. As for the owner side, delay means loss of revenue due to late operation of the properties and unavailability of the facilities. To the contractor, delay causes increasing overhead and preliminaries costs, higher material costs by inflation, and due to labor cost increases. Delays can also lead serious effects such as lawsuits between the owners and contractors or contract termination. The effects of delay is illustrated below. 


There are lots of researches which have been conducted in different countries with the result that delay problem is a common phenomenon in the construction project; it is more severe in developing countries and Vietnam is not an exception. According to many studies, there are many causes of delay, in which, ineffective planning and scheduling of project by contractor is a major factor because they used so many inadequate assumptions and estimations. Thus, application a right process in project scheduling is essential requirement to improve the delay problem.

Mr. Le Viet Hoa made a research aimed to introduce Lean Production theory and its application in construction projects in Vietnam. It is believed to bring an innovation in the scheduling process. The objectives of his were to: (i) study the theory of Lean Production; (ii) study the application of Lean Production in integrated project scheduling management; and (iii) discuss the benefits and obstacles in applying Lean Production theory in construction project scheduling.

Conclusion

The study introduced current practice in project scheduling management and how to apply the Last Planner System. As the result, the application this theory has so many benefits and obstacles to the construction project.
   
To remove those obstacles, training will be a key factor. All related workers and staff should undergo formal training on how to use this tool in a convenient and efficient way. Although training can lead to increase workload in the early stages of implementation, however, in the long term, it will serve to improve the efficiency of the construction companies and constitute an investment cost from the original training.

Furthermore, there are some issues that would be considered to follow for increasing the success rate of implementation:
-          If the LPS are not carried out in a systematic manner, it will fail. However, the project documents must be fully completed and discussed weekly;
-          The Project Manager must control the LPS, the organizations still needed approval against unsatisfactory performance.
-          The LPS will highlight which of teams don’t perform well. If the data will not be used for  managing performance, the LPS will be discredited and lost benefits; and
-          The LPS will bring out the poor Project Managers. This can trigger training and reassignment.

The thesis abstract is copied and pasted below.

Abstract 

Construction industry in the world in general and in Vietnam in particular is one of the sectors with the greatest contribution to the development of the national economy over the past decades and it also played an important role in creating jobs for employers in the country. However, the industry was faced with poor performance, low productivity, bad quality, delays and cost overruns. With the desire to reduce waste, overproduction and create value added for customers. Lean construction has developed in recent times for the construction sector by increasing the efficiency of the construction process by improving the production process and control the workflow in the construction activities.

Lean construction has been studied and applied successfully in several companies of the western countries and it is a topic that many scholars have been investing effort to further research and applied more effectively. This study tends to introduce the application of Lean construction contractors and construction managers in Vietnam to be able to use and combine other tools to improve project performance.

Manufacturing and Construction have significant characteristics different. In manufacturing, regularly finished products after ex-factory will be transported to the consumers through the distribution channels are wholesalers to the retailers by logistics network systems. In contrast, construction products, great value and cannot be transported. In addition, the construction industry is composed of three important features that is completely different to other industries which are: Onsite production, one-of-a-kind projects, and complexity. Therefore, although the Lean Production was implemented very successfully after the Second World War but the Lean Construction theory is still being developed.

Tuesday, 22 January 2013

EFFECTIVE PROJECT CULTURE FOR INTERNATIONAL LARGE CONSTRUCTION PROJECTS

SEMINAR



EFFECTIVE PROJECT CULTURE FOR INTERNATIONAL LARGE CONSTRUCTION PROJECTS

By
Dr. Hadikusumo, CEIM/MPM Coordinator

On 20 Jan 2013, MPM program organized monthly technical seminar with topic for this month is: Effective Project Culture for International Large Construction Projects with the participation of more than 30 participants with many nationalities.

During seminar, Dr. Hadikusumo shared about Large Construction Projects have been perceived as high risks and complex processes. The risks involved technical, commercial and political risks.  And, the processes included Conceptuael, Design, and Construction to Commissioning processes. The situation will get more complicated whn people with different cultures work together in a project. Thus, the understanding and management of cultural dimensions are of paramount important to put people to work together in harmony the complex construction processes. 




Visit An Giang provinces and Da Nang city of MPM delegation

Visit An Giang provinces and Da Nang city of AITVN/ MPM delegation

Last 17/01/2013, AIT delegation has organized a visit to Center for Promotion of Human Resources Development, The People's Committee of Da Nang city, Da Nang city to explore the potential corporation between AIT and Da Nang city for high level human resources development.


From Left to right: Dr. Hadikusumo, Ms. Tuong, Ms. Hoa, Dr. Amrit Bart (AITVN) and CPHUD representative


Next event, on 18/01/2013, AITVN also had a meeting with An Giang university to finalize the Memo of Understanding so that AIT and An Giang University can start for our cooperation. Professional Master Program in Project Management in Construction will be a first program launched at An Giang very soon this year.
Dr. Amrit Bart, AITVN Director and Dr. Hoang Xuan Quang, Viec-Rector of An Giang University


Project Management Approaches of a Japanese Construction Company In Vietnam: Procurement Management, Organizational Structure, Subcontractors Management, Customers Management and Safety Control

Japanese contractors have been setting up their companies in Vietnam since 1990 and operating successfully with many buildings finished on schedule with good performances. Although Japanese contractors have created a good reputation with Japanese standard quality and on time delivery, there have been some problems remained in their system that the report was analyze in terms of Procurement Management, Organizational Structure, Sub-contractors Management, Customer Management, and Safety Control. Mr. Le Hoang Nguyen focused on the following problems:

1. Procurement or project delivery type of the Japanese contractors is Design & Build.
2. The organization structure of the Japanese contractors is usually too simple to meet all the requirements such as safety and QA/QC properly.
3. The owner – the main contractor – subcontractors – suppliers can form a supply chain.
4. The most important thing, how to control safety matters following the safety plan in the actual Vietnamese conditions with local subcontractors.

In conclusion, by analyzing the current project management approaches in Japanese construction companies in terms of procurement management, organization management, sub-contractors management, customer management and safety control, the report will find out strengths & weaknesses of the existing system and recommend for improvements.

The objectives of this case study were to : (i) study the current practices in Japanese contractors in Vietnam in term of Procurement Management, Organizational Structure Management, Sub-contractors Management, Customer Management, and Safety Control; (ii) investigate for an efficiency of organization set up; (iii) find out strength and weakness of the current system; and (iv) recommend approaches for improvements.

Conclusion

Basically, through the analysis of the current project management approaches the strengths and weaknesses of the current system were found at some points. Although the report shows the efficiency of the existing organization and the management system, in conclusion, the mentioned above project managements was reviewed and some approaches are recommended for improvements.

1. Procurement Management and organizational structure

Design & Build with lump sum contract and fast-track management is still the strong point of this type of procurement. This is based on the relationship and trust. Though, the high cost and risk are the remained issues need to be improved to increase the contractor’s competitiveness. There are some proposed approaches such as breaking down the scopes of work into smaller scopes with specialty suppliers, direct purchasing for main materials, equipments and machines. As a result, the direct cost could be reduced considerably.

As the demands of the procurement system, the organizational structure has some related issues. The organization is too simple to cover all the required works in terms of technical issues, construction works, QA/QC, safety matters and purchasing orders. In the proposal, the organizational structure should include necessary departments: Technical Department included QA/QC and Safety departments, Construction Department, Commercial Department with Procurement Department, Administration Department and Accounting Department etc.

The concerned issue is that how to localize the management in the Japanese construction companies in Vietnam. The return of the localization the management could be the cost reduction, better communication, management and/ or coordination between local staffs & different departments and local suppliers, subcontractors, consultants. This is essential to form a supply chain network.

2. Sub-contractors management and customer management

As a matter of fact, in a general view, subcontractors – main contractor – customers form a supply chain network through project by project. So, the importance of relationships, between the client and the contractor, the contractor and the subcontractors should be understood properly. Moreover, the relationship should be focused on improving performance and adding value to the process.

In order to achieve the above targets, the following approaches could be applied.

First, at least three companies of each supplier, subcontractor and consultant should be considered, evaluated and then maintained for every project to have the best competitive price and performance delivery. Second, co-operations with supplier, subcontractor and consultant should be in more than one project in order to incorporate the knowledge into the new project and achieve continual improvement. Third, long-term relationship with the subcontractors should be considered and maintained in the concept of supply chain network by keeping payments on schedule and variations approval and any necessary supports at the right time of need. In other word, the Japanese contractor has to play the main role as the chairman in every meeting and co-ordinations in terms of time, cost, quality, and safety control in all the phases of the project.

Customers are almost the Japanese companies, the unique specific characteristic in Japanese contractor. Because of the increasing critical competition, the demand is that how to get jobs from non-Japanese customers. Achieved this target, the Japanese contractors not only could increase their competitiveness with local contractors but also expand the supply chain network.

3. Safety control

Finally and the most importance is safety first, the much different thing compared with local contractors. Safety control at jobsite is follow the company safety policy, safety targets and safety plan with specific measures and safety construction cycle in daily, weekly and monthly. However, the following recommendations should be considered.

First, the safety policy should include all of business activities, and the organization should be set up to make sure the safety plan is implemented seriously sufficiently and efficiently.

Second, planning and implementing safety targets should get agreements with managers and supervisors to make sure the targets are achievable. In addition, purchasing and supply policy should be taken into account too.

Finally, for continual improvement, not only safety construction cycle is implemented regularly but also PDCA (Plan-Do-Check-Action) circle should be applied continuously. Moreover, health and environment matters should be taken care of and applied at jobsite for a better working and living environment.

His thesis abstract is copied and pasted below.
Abstract

Vietnam construction industry has been developing significantly since 1990 with more and more high-rise buildings and factories built in Ho Chi Minh City, Hanoi, Da Nang, Can Tho and other cities due to continuously increasing demands in economical, cultural and social aspects. Foreign contractors found this big chance and set up their company in Vietnam at the right time. Among them are Japanese contractors such as Kazima Corporation, Shimizu Corporation, Obayashi Corporation, Fujita Corporation, and Taisei Corporation, which have been operating over fifteen years in mainly the industrial buildings section. As the result, the competition between the contractors, local and foreign companies, has been increasing dramatically. So the most challenge for the Japanese
contractors in Vietnam is how to increase efficiency, competitiveness and sustainable development.

For these purposes, this report will analyze the current project management approaches in Japanese contractors in Vietnam in terms of:

1. Procurement Management.
2. Organizational structure.
3. Sub-contractors Management.
4. Customers Management.
5. Safety Control.

Finally, in comparison with the theory and practices, the report will point out the strengths and weaknesses of the existing management system in comparison with the local companies, then recommend for improvement approaches that could be applied in Vietnam.