Knowledge Management

nikzafri · Joined: 10 Jan 2008 Posts: 119

The Star Global Malaysians Forum - Posted: 21 July 2005 at 4:26pm

A question from Mr. X

Translated : I've been reviewing this column and found the 'quality cost' & 'data analysis' issues very interesting. Can you tell me more?

Thank you for the question. Besides my friend here - whykay - who can tell you more on COQ, here's an article of mine that might interest you...(for a start)
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whykay's response - Posted: 22 July 2005 at 12:15am

Cost of Quality....hmmm...one of my favorite subjects. Basically is for a organization to analyse the cost of maintaining the quality of your product (or services)....

You should be looking at few indices:
Prevention Costs
Appraisal Costs
Internal Failure COsts
External Failure Costs.

The basic understanding of economic of total cost of quality - finding the equilibrium of the money your spend to control your quality, versus the money that is being 'wasted' / spent because of the failure of the systems / products. It also look at opportunity loss etc.

It may sounds easy, but the whole process itself involves key people from relevant departments. It involves several key steps / flows from analysing key parameters, data collections, interpretations of data into monetary terms, and taking actions to improve the situation.

It's one of the key tool to express quality in everyone's favourite term - dollar and cents - profitability !

Now you may also want to know about ABC - Activity Based Costing.....

nikzafri · Joined: 10 Jan 2008 Posts: 119

The Star Global Malaysians Forum - Posted: 10 July 2005 at 6:07pm

(In response to another e-mail)

Dear friend

I do hope that the next time, you will try to post your question 'in the open'. You can use pseudonym if you want to. I adopt a 'transparent' concept in networking so that all forum members may benefit from it - it's a learning and teaching environment.

Here's the information that you've asked and lucky you - it's in BM as you wanted. Judging by the your 'questioning techniques', I'm pretty sure that you are from Civil and Building/Structural Engineering Works.

Please be reminded that this model may subject to (generic) minor/major changes if you are involved in highway construction (civil)

There's a lot more where that came from.

I do not have the full answer to your question on 'aggregate and concerete' but I do have something that may help you out. (the following is ONLY a preliminary research (literature review) and not the thesis itself)

Besides British Standards 812, you should also cross reference to BS 882 as well. Please contact BSI or SIRIM Library (I am unsure if they have an equivalent MS Standard..perhaps you can enquire - but I do also know that some BS standards are also available over there)

On your other query of how or where to start, try to make your own assumption first by creating your own target on the interelationship between the following values with the concrete strength and the targetted ages typically 7, 14 & 28 days:

* Aggregate Impact/Crush Values (please specify grade), x% fine values, water absorption Value, LA Abrasion Value, Polished Stone Value

The usual testings are Crush Cube and Flexural tests with respective dimensions of x X y X z mm (e.g. 150 X 150 X 150mm).

Sungai Long Industries (Bina Puri Group - Tan Sri Tee Hock Seng) was one of the quarry (in Hulu Langat) used to be under my direct ISO 9001:2000 consulting supervision. (now certified) Perhaps you can also contact them and refer to my name (find a guy called Baljit - if he's still there) I'm also unsure if they would allow you to take samples from them.

On your question about engaging quality management consultant, I must advise you not to engage QM Consultant having inferior or no knowledge at all in the construction industry - otherwise you'll end up in chaos! I've seen a small number of quality consultants (with the necessary professional affiliations) have spoiled their clients (main contractors) by giving a 'xerox QMS documentation' from a manufacturing industry. A client of mine was very lucky to catch hold of me when THEIR clients are 'shouting' to get the earthworks & piling method statements but instead were being given some work instructions that has no absolute relation to the client's specification, drawing, design brief and even contractual requirements. Even the procedures are text based and NONE of them are flow-chart/process-flow based. Although I have managed to pacify the Client (who was about to terminate the contract of the main contractor), I must admit that I was 'a bit dissapointed' to see this is happening as the scenario may have somehow (to a certain degree) 'spoiled' the reputation of genuine/experienced consultants.

You appear to have the necessary qualifications and experience in Construction both QA/QC, I think with proper guide, you can do it!

Many years ago, somewhere between 1995-1997 when I was the weekly columnist for Utusan Malaysia talking about ISO 9000, TQM, OSH & EMS, there was another columnist for The Star talking about ISO 9000 in the Construction Industry. His name is Tim D. Alcock and we kinda know each other. At that time Tim was working with a consulting firm known as QMI. I will e-mail you his latest e-mail address in UK. Another 'senior' company that has been doing ISO 9000 in the construction industry - LONG before construction ISO became a trend in Malaysia (that time, it was known as BS 5750) is a company called Balfour Beatty (also involved in the country's double track project) where I was in the Engineering Department in one of their projects many years back. You may also wanted to get in touch with them as well if you're in UK.

nikzafri · Joined: 10 Jan 2008 Posts: 119

The Star Global Malaysians Forum - Posted: 10 July 2005 at 6:07pm

I'm starting a new topic on Construction Quality Management as a result of a request from one of the members here.

The question was :

How many levels of quality documentation required for the construction industry. Please do not limit the answer only based on ISO 9000 but to take into account other quality best practices as well. 2nd question, which is the best approach to conduct audit - element based or process based?

My response :

It is IMPOSSIBLE for me to address all the requirements here but I will give you an overall brief :

The construction industry entails a vast scope of various engineering works - e.g. Civil & Building and/or Mechanical and Electrical (Plumbing) The nature of the project also need to be identified of whether they are conventional type of project or design/build or turnkey. Generically there are additional documentation required depending on the project nature.

Here's a typical model.

1) You definitely need a Quality Manual but most importantly you need to specify clearly the tendency of your company's projects either design/build/turnkey or conventional. How to know this? Ask your QS or Project Manager, usually they will tell you the 'weight' between the two. Try your best to address the requirements based on 'ONGOING' projects only. (1 civil and 1 building w/a) e.g. if the tendency is design & build, then you need to address the requirements in your quality manual. The rest are much the same as other QM.

2) Next in line are your procedures based on departmental requirements classified usually into few categories (NOT number of procedures) - Tender and Contracts/Procurement, Operation and Quality Assurance.

e.g. Tender and Contracts may require procedures of Pre-Tender, Tender/Estimation, Post-Tender, Contract Commencement while Operation may require procedures addressing pre-construction/planning (include site mobilization) overall contruction process (there is more than one procedure here) and post-construction (including Final Accounts/Archiving) Quality Assurance will need core procedures such as Non-Conformities/Defect Handling, Customer Complaints/Feedbacks Handling, Internal Auditing, Corrective Action, Preventive Action, Document Control, Records Management, Review etc.

2) Clients usually will specify in the main contract if they need another document called Project Quality Plan (PQP)- Otherwise they will call you up and ask for it - It's a bit similar to Quality Manual but more project specific (Ongoing Project). A PQP is usually submitted together with your Master Project Scheduling/Programme (MPS), List of Drawings, List of Sample Submissions, List of Method Statements and Inspection and Test Plans.

3) To support your PQP, you will need to substantiate it with the actual Method Statements (submitted as required by the Client). Sometimes you can get MS (even shop drawings) from your sub-contractor; of various trades. (Please be reminded that the installation/delivery method from a SUPPLIER is usually known as SOPs or Work Instructions or Manufacturer Instructions)

4) Together with this Method Statements are Inspection and Test Plans covering mock-up, sampling, incoming, in process, outgoing (CMGD/CPC/DLP) (w/a).

5) Finally 'Forms/Checklists' that mostly constitute what we call as 'RECORDS'. The checklist are based on the requirements of the PQP, and Method Statements. The two keywords in Records management you must remember are Retention Period and Disposal Methods (w/a)

Usually if you are in the design/build/turnkey environment, there might be a need to address the functions of in-house consultants from various trades of architectural, M & E and C & S/Building. You will also need a document called 'Design Brief'. Remember also that the performance appraisals for both In House Consultants (under your 'direct payroll') and Sub-Contractors should be SEPARATE and not joint.

On your question on auditing, it really depends on how the situation is. Usually elements-based are not meant for 'projects' but for their HQ only (Adequacy/Documentation)

(Audit - High in Evidence, Low in Judgement)

Experienced auditors (including myself) usually resort to process based audit cross reference to elements requirements (Compliance).

There were times when I also adopt a 'bottom-top' technique e.g. looking at the last level of quality documentation - records/checklists/forms. From there I will trace back/cross-reference to Method Statements, Standards/Codes of Practice and so on. (sampling on one scenario & start 'linking' to one another above it till it returns to the Quality Manual)This last method usually applied if I have insufficient time/area to cover -

(Assessment : High in Judgement - Low in Evidence)

Typically I do not adopt the elements based audit due to time factor.
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whykay's response - Posted: 10 July 2005 at 12:27pm

Interesting topic. Now, if you were to ask me how many levels of documentation, I would still prefer to use the conventional documentation levels :

Quality manual - driving the overall company's goals
Quality procedures/plans - showing how quality objectives from each department supporting the quality goals
Work instructions / SOP - to ensure quality work is perform in every aspect of the process
Records - to show evidence that the quality activities has been carried out effectively.

To me, quality management, be it ISO, TQM, Kaizen, etc is the same for all industries. That's why all these standards / systems are applicable throughout, regardless of industries.
All industries have their own processes (input and output). We have to understand the critical processes, and what are the inputs and outputs of the processes. For instant, if you are talking about construction sector, you may have design / architecture team to look at designing, revieweing, validation the quality, safety of the overall structure - with the inputs and outputs from / for the end buyers.

All the PQP, MPS you mentioned are of course specific to the construction line, where Project Management is one of the major criterias in Quality Management System. I do not have any exposure in construction line, thus I may not be well-versed with some of the terms, but to me, the objectives and essentials are the same, whether you are implementing the QMS for a bank (service industry), or automotive or even construction.

Technically, I would prefer a process-based audit, where you can tie in all the inputs/outputs aspects for all processes (again, I am using the ISO9001 approach to identify effectiveness and efficiency). At least, I find that the new ISO 9001:2000 version is a business-driven QMS, as compare to other Quality Management System.

Of course, if a construction firm would like to consider embarking on 6-sigma, that will be a more challenging aprroach.
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Nik Zafri's Response - Posted: 11 July 2005 at 4:33pm

Hi Whykay

I am so VERY glad that you have joined in. It's beginning to turn a little boring for me awaiting responses. Welcome!! I knew you couldn't resist this 'juicy' topic!

Yes, I agree to your views - we speak in one voice - a consultant to another consultant. The conventional levels of documentation that you've mentioned is typically used for most industries - I too; besides the construction industry; have been resorting to the documentation structure that you have mentioned - only that I didn't comment too much on the contents due to limited space . (never like 'text' anyway). I was merely responding to the query by one of our 'invisible' members who is 'too shy' to ask the question in the open - my guess is that he must be at 'top level' - that's why his identity remain anonymous except for his nickname that I would not rather mention here.

It is true that procedures and plans must have measurable (logically measured) objectives to support their goals even their 'KRA' - all these will cascade back to the 'main policy' - it's a kind of top bottom working in parallel with bottom-up processes (a lil bit of TQM). With all these in place, we can even tie back to the job description and TNA. All these simple tools ; if carefully applied; may also assist 'value-addedly' in the benchmarking and balance scorecard practices.

In my experience also, the MOST valuable document is the Work Instruction and even SOPs as these are the 'bread and butter' of the organization. (in construction, usually it is known as Method Statement) Without SOPs, WI and Method Statements - how do they know their scope of services/nature of industry?

You must excuse my 'biasness' in my responses due to my strong tendency of experience in the construction industry (I do have other multi industrial experience - maybe not as much as you - although my 'core strength' is construction) You will also notice judging by my mode of replying, I am in fact a TQM and KM 'holistic' practitioners but still resort to ISO because of the so-called 'business trend' (I got no choice) but in actual fact, without TQM, I wouldn't survive today due to inability to address the ISO requirements.

I do hope and welcome you to share your valuable experience on other industries as well with our readers here so that all of us could have something that they can 'bring out' of this portal.

Again, I have to agree with you that a process-based audit is absolutely MORE EFFICIENT and EFFECTIVE compared to the element-based. Believe me, I've been trying to educate internal/external auditors alike (you'll be surprised some of them are certification auditors) for many-many years to accept the process based audit as it will help them A LOT especially to get the in depth overview of the industry that they might have not enough experience in (not only the construction industry) It's working but not really 100%. I have also encountered :

* the 'old-fashioned thinking' & 'policeman' type of auditors (even there is ISO 19011:2002) -
* looking for 'mistakes'/fault finding,
* 'too document-oriented' (or rather 'fanatic') people (not concentrating on how the system can directly affect the quality of product/services/processes - which is the REAL concern of the Client),
* highlighting more 'so-called' non-conformities in their 'so-called' reports rather than highlighting equally the good practices as well,
* arguing with clients on some 'vocabulary' and 'grammatical problems' of the QMS Documentation etc. etc.
* unable to explain the logical interelationship between ISO 9000 and in what way it is 'business-driven' as you said.
* Not many of them know how important is PQP, Method Statement or Inspection & Test Plan, ruling on sample submission, mock-up unit inspection (in the construction industry) are actually the client's contractual requirements (client requirement is the main focus of ISO as if there is no buyer,there is no seller and there is no money - thus CONTRACT is the Client's specification - if they want a PQP, or Construction Method Statement; even if ISO did not state it clearly; the organization MUST comply!) & design brief - because they don't bother or do not know where to look! I did say many times that if you need to appoint a lead auditor, make sure he knows what he's doing.

Wow - How I WISH what you have said will become a reality one day. 6 sigma! for foreign based industries in Malaysia like Motorola or Texas Instruments - I'm not surprised if they are very well advancing!

But I'm a bit pessimistic, on some domestic Malaysian organizations. You see, if the industries in Malaysia still cannot cope up and comply or know how to properly address the 'basic' ISO 9000, how can they go forward with the 'advanced' 6 Sigma (it's a greater challenge as you said) Although, there are big names/bluechips like the Sunway Group, Berjaya Group, Hong Leong Group etc which at some level; managed to move further into the right directions but these numbers are too small.

You can see the ISO TC 176 for the 1994 version is headed by UK (apparently due to BS 5750) and (lucky us) that the present TC is headed by the US - being the reason why 'TQM' 8 Management Principles came into the picture - even this is the case, some Malaysian organizations still ignore the 8 Management Principles and felt that these principles have no relation at all with ISO 9000.

Another uncanny scenario, some Malaysians companies are proud of Motorola and other big names for having TQM, 6 Sigma etc. but they themselves do not wish or show enough effort to become like one.

I think you will agree; without prejudice basis; that ISO 9000 (be it 94 or Y2K version) implementation in the Malaysian industries are ironically very sluggish. Most of them still are:

* 'certification based' or rather 'examination based' - last minute preparation,
* having ISO 9001:2000 because of competitors 'peer group pressure' or pressure from the 'top management' (perhaps due to some 'corporate governance' thing)
* some of them dare to claim that it is a trend - in order to be listed in Bursa Malaysia - you must have ISO 9000,
* or they will get more 'tenders' from their clients,
* and there are 'tonnes' of documents (where mostly are NOT required)

All these 'funny ideas'; which some of them maybe true to a certain extent depending on the implementation effectiveness itself; have hampered the real reason behind embarking on the quality journey. Not many of them feel that ISO 9000 can become the working culture and basis for continual improvement to embark on; quoting what you have said; a 'more challenging' processes. (I even recommend some of my clients to undergo a motivation and team building course before going for ISO 9000 as in my belief, that it's not the system's problem - it's basically ATTITUDE)

I have been talking about ISO for years and their future benefits - on how the fundamentals of ISO 9000; if properly addressed and implemented; and if they know how to harmonize the QCC tools especially on multi-level data-analysis (up to the level of defining the quality costs and becoming one of the inputs for the following fiscal year's budget forecasting), industries can go for PMQA, various productivity awards, TQM and even 6 Sigma (don't be surprised that they can even receive Malcolm Balridge Award.). They can venture deeper on Tick IT & Carnegie Melon for data security and online DMS. I have also seen companies who actually making good use of the procedural process-flows in ISO 9000 QMS Documentation as a guide towards establishing ERP/MRP (and it works!)

Another thing I notice that some Malaysian companies are easily absorbing or likely to be influenced by other 'system' or 'work culture' while they are still young in implementing ISO 9000. In the end, they lose everything - and start blaming the system and not themselves.

Whykay, I welcome you and all other consultants, management representatives etc. (particularly Malaysians), come and join me, let us build the nation together! Who knows one day, Malaysia will have their very own quality, safety, environmental management system standards. (I still have deep positive thoughts - despite what I've commented above - I still believe that hope is still there)
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whykay's response : Posted: 11 July 2005 at 5:26pm

Nik,

You are right, in the sense that ISO 9001:2000 development and implementation is still sluggish, eventhough the term ISO 9000 Quality Management System has been within us in Malaysia for the last 15 years.

Sad to say that a lot of management who are supposed to drive the quality as they do in business do not really see the importance of it. I've seen many clients of mine implementing ISO just to 'fulfil' certain requirements, and not so much of business initiatives. Some of them even asked consultants to write their documents, develop the systems for them entirely. This reflect how immature their understanding in terms of the QMS benefits.

I've just conducted a class on 'Cost of Quality' and interesting to see many top management really do not see / measure the importance of this. Or should I say, they are ignorant.

Interestingly on how you brought up the issues on having clients to undergo motivation, teambuilding, etc. This is exactly how I am seeing the gap in the technical (ISO, Quality Management System) and the soft skills (human factors), which some organizations do not really understand. Whenever they are embarking on a certain project / program, such as 5S, TQM, Kaizen, Lean Manufacturing or even the plain old ISO, they'll just jump straight into the technicality of it (addressing the standards / requirements).

A lot of time, I will encouraging my clients to undergo change managment, managing diversity, motivation, teambuilding.

Keep it going.....
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Nik Zafri's Response - Posted: 14 July 2005 at 5:10pm

nikzafri · Joined: 10 Jan 2008 Posts: 119

nikzafri · Joined: 10 Jan 2008 Posts: 119

Finally..some news

http://news.my.msn.com/regional/article.aspx?cp-documentid=1386783

MALAYSIA LIFTS PRICE CAPS ON STEEL: PM

Malaysia has lifted price caps on steel products as the high global market price for the alloy is disrupting supplies in the construction sector, the prime minister said Friday.

Steel prices without the cap will be effective from Monday, May 24, Prime Minister Abdullah Ahmad Badawi said.

"The government has received many complaints about the rise in prices of steel products, such as billet and steel bars, following difficulties to get those products at the ceiling price," Abdullah said in a statement.

"The world market prices are much higher than local prices.

"This problem has adversely affected the construction sector and it could jeopardise the implementation of national development projects," he said.

Abdullah said the government will also exempt steel importers from having to pay import duties and obtain an import license.

Local steel producers will also be allowed to export their products.

Malaysia has a price cap of 2,278 ringgit (711.9 dollars) per tonne for steel bars and 1,918 ringgit for steel billet.

He said the liberalisation of the steel sector was to ensure that national development projects were carried out smoothly and also to make the steel market more transparent and efficient.

nikzafri · Joined: 10 Jan 2008 Posts: 119