Chapter 6:

Total Quality Management in

Construction Project
 DO YOU REMEMBER??
no quality - no sustainable!
Our focus!!

Traditional Projects Critical Components (time, cost, & quality); in relation with
sustainable construction concept
 TOTAL QUALITY MANAGEMENT

TOTAL Everyone and everything that we do

Giving the customer / clients what they

QUALITY expect all the time

The way we act and operate our policies

MANAGEMENT and procedures, and our training and
instruction of our employees.
 TOTAL QUALITY MANAGEMENT (TQM)
DEFINITION
"TQM is a management approach for an organization, centered on
quality, based on the participation of all its members and aiming at
long-term success through customer satisfaction, and benefits to all
members of the organization and to society.
(ISO 8402:1994)

TQM is interpreted as "a way of managing an organisation to ensure

the satisfaction at every stage of the needs and expectation of both
internal and external customers, that is shareholders, consumers of
its goods and services, employees and the community in which it
operates, by means of every job, every process being carried out
right, first time and every time
(Latham, 1994).
 INTRODUCTION
TQM is a managerial philosophy which aims to
achieve organisations main targets using all sources
including employees.
TQM aims improve the total performance at the
work place. It covers all functions, activities and
people who are responsible for competitiveness of
an organisation. The employees are expected to
participate not only in maintaining quality but also in
improving their total performance so that the
wastages will be avoided, production cost will go
down and the enterprise can earn more profit.
 Advantages of TQM
Customer satisfaction
Quality improvement
Absence of additional investment
Raises competitiveness
Facilitates expansion and diversification
Provides trained and motivated employees
Miscellaneous Advantages
- Long-term consumer support,
- Prestigious position in international
marketing,
- High standard of living to employees, and
- Cost control.
 TQM PRINCIPLES
Employee
participation

Customer Team work

focus
TQM

Continuous Process
improvement focus
 Supporting elements
The five (5) principles of TQM can be achieved in an
organization with the aid of 6 basic supporting elements
(Tenner and Detoro, 1992):

Supportive
Communication
structure

Education and Reward and

training recognition

Leadership TQM PRINCIPLES Measurement

 TQM SUPPORTING ELEMENTS
1. Leadership:
Visionary leaders set the direction, develop strategies, coaching
employees for achieving excellence.

2. Education and training:

Educate and train employees on the
i) mission, vision, direction, and strategy of the organization;
ii) skills they need to secure quality improvement and resolve problems

3. Supportive structure:
Senior managers may require support to bring about the change
necessary to implement a quality strategy. Organizations also need to
build internal and external partnership for mutual benefits.
 TQM SUPPORTING ELEMENTS
3. Communication:
Communications in a quality improvement may need to be addressed
differently to communicate to all employees a sincere commitment to
change.

4. Reward and recognition:

Teams and individuals who successfully apply the quality process must be
recognized and suitably rewarded, so that the rest of the organization will
know what is expected and motivate/ enhance performance of employee.

6. Measurement:
The achievement of superior performance requires the use of data,
information and knowledge to enhance judgment and enable better
decision-making. The data can also used to track performance measures
and indicators.
 COST CONTROL

COMMUNICATION RISK

Components in
QUALITY
MANAGEMENT

RESOURCE QUALITY

PROCUREMENT
COST-CONTROL MANAGEMENT

Direct and indirect cost

Cost-control techniques
Project cost
Control and monitoring
 Introduction
WHY NEED COST-CONTROL MANAGEMENT?
To ensure that the project is completed within
allotted budgets.
Early detection of actual cost overruns in construction activities is vital to
management.
Provides opportunity to initiate remedial action and increase chance of
eliminating or minimize the impacts.
Because- cost overruns increase project costs and diminish profit.
 Direct and indirect cost
Direct costs
Cost that is directly applicable to the project.
Any cost for activities or services that contributing
to the physical completion of specific project
Example:
Finishing labour for a concrete floor slabs
Materials for structural steel frame
Equipment for a foundation excavation
Subcontractors charge for installing the air
conditioning system
Land reclamation
 Direct and indirect cost
Indirect cost
Costs that are not directly accountable to a cost
project.
Cost that support the project as whole but cannot
be identified directly with specific work items in
the project
Either fixed or recurring
Fixed indirect cost: activities or costs that a fixed
for a particular project (eg: temporary roads,
temporary site office, staff vehicles)
Recurring indirect cost: activities that repeat for
the company (eg: salaries for office personnel)
 Cost-control techniques
1. Planning the project budget
2. Keeping a track of costs
 Cost-control techniques
1. Planning the project budget
Budget has to made at the beginning of
the planning session. It is help to estimate
all payments that need to be made and
costs that will incur during the project life
cycle.
The making of this budget therefore
entails a lot of research and critical
thinking.
 Planning the project budget
How to plan the project budget?
Their main purpose:
Approach to plan the project budget might be differ among
construction practitioners (e.g. client, architect, contractor, etc.), it
is boils down to their intended purposes.
For example, Project Manager plans the project budget in order to
control the actual cost (so it will not exceed the contract cost); but
Contractor for tendering and claim purposes.
Their main criteria:
1. Time allocated to produce the project budget,
2. The accuracy of the budget (which suited their purposes),
3. Existing information that available (e.g. data on costs, drawings,
specifications, etc.), and
4. Experience of the planner/budgeter itself.
 Planning the project budget
What are the techniques?
 Cost-control techniques
2. Keeping a track of costs
Keeping track of all actual costs is also equally
important as any other technique. It is best to
prepare a budget that is time-based. This will
help in keeping on track of the project budget
in each of its phases.
The actual costs will have to be tracked against
the periodic targets that have been set out in
the budget. These targets could be on a
monthly or weekly basis or even yearly if the
project will go on for long.
 Keeping a track of costs

How to track the project cost?

1.Bar Chart
2.Critical Path Method (CPM)
 Cost-control techniques
Effective time management
The total cost of the project could keep rising if the
project unable to meet the project deadlines;
The longer the project is dragged on for, the higher
the costs incurred which effectively means that the
budget will be exceeded.

Project change control

Change control systems are essential to take into
account any potential changes that could occur
during the course of the project.
This is due to the fact that each change to the scope
of the project will have an impact on the deadlines of
the deliverables, so the changes may increase project
cost by increasing the effort needed for the project.
 Project cost
Material

Allowance Subcontract

COMPONENT OF
Fee/ profit & PROJECT COST
contingencies Plant and
equipment

Labour Overhead
 Project cost
o Materials
Direct costs consumed in the realization of a physical element of a
project
Price list can be obtained by distributor or supplier

o Equipment and plant costs

Divided into:
1. Rental/ owning costs; depreciation, insurance, tax
2. Operational cost; fuel, spare part, maintenance, operator cost
Factors in equipment and plant estimating:
1. Types
2. Size and capacity
3. Useful life
 Project cost
Labour cost
Sum of all wages paid to employee, plus any
related taxes and benefits
Subcontractor cost
Payment to subcontractor to do a package of
work in a project
Allowance
Cost for unplanned work
Fee/ profit and contingencies
Depends on project size, site condition, project
complexity, information from owner which can
be seen in tender document
 Project cost
Overhead
1. Fixed overhead: recurring expenses which are
constant and do not normally fluctuate with the
business volume or the number of production
employees employed
Example: office rental, water, electricity,
material testing
2. Variable overhead: all operating expenses
generated by field personnel. It will fluctuate
directly with the amount of people a company
employees as part of its production labour cost.
Example: site engineer, project manager,
marketing costs, official trip cost.
COST CONTROL AND MONITORING
Work
programmes

Monitoring
Inspection of
work and cost
works
performance

COST CONTROL &

MONITORING

The project
Record keeping
budgets

Site meetings
 Cost-control & monitoring
Work programmes
Use planning and scheduling to monitor progress and financial performance.
It is a good method since work progress can be measured and related to cost.

Inspection of works
Inspection of works and comparison made with the
budget. Sometimes subject to judgement, hence lacking.

The project budgets

Cost attached to responsibility centres with work targets to be
accomplished. Its used in relation to schedules makes it the best tool for
cost control.
 Cost-control & monitoring
Site meetings
Meetings held to review the progress of work and compare to
the monetary allocations. Good as it provides some
motivation to workers and all stake holders are up to date on
the performance of work.
Record keeping
Documentation of activities carried out to enable early
detection of deviations from the set standards
Monitoring work and cost performance
Clients, consultants and the contractors used monitoring tools
of schedules, budgets, inspection and feedbacks to keep a
watch on the cost performance. With use of the right tools of
control, it produces good results.
RISK MANAGEMENT

Risk management programme

Insurance
Performance bond
 WHAT IS RISK?
A risk is a chance that things will not turn out as they
were intended to
The consequence may affect cost, time or quality
Adversely or positively
 Risk management
WHY NEED RISK MANAGEMENT?
To identify and control risk so can that can
avoid or minimize losses.

If we can identify risks in good time, we

canERIC
Eliminate showstoppers and biggest risks
Reduce risk by surveys, re-design, other
materials, different methods or changes
Insure/ Transfer risks, allocate differently,
take out bond
Contain risk within unallocated contingency
RISK MANAGEMENT PROGRAMME

1 Risk Identification

2 Analyse & Evaluate the risks

3 Treat the risks

4 Monitoring and review

RISK MANAGEMENT PROGRAMME

1. Risk Identification
What and where?
Identify sources of risk (i.e: who is involved or affected).

2. Risk Analysis & Evaluation

What is the magnitude? What would be the impact, cost or consequences
of that event occurring?
Assess risks: severity, likelihood, controllability
Determine inherent levels of risk.
RISK MANAGEMENT PROGRAMME
3. Treat the risks
What action to take?
Develop strategy plan with specific counter-measures to
address the identified risks and to reduce possible loss/
damage.

4. Monitoring and review

How to implement and monitor?
Monitor and modify plan for new risks
Monitor activities and processes to determine the accuracy of
planning assumptions and the effectiveness of the measures
taken to treat the risk.
Risk management policies and decisions must be regularly
reviewed. Methods can include data evaluation, audit,
compliance measurement.
AN EXAMPLE: RISK MANAGEMENT
PROGRAM - HIRARC
 INSURANCE FOR CONSTRUCTION
PROJECT
Construction sites are inherently dangerous places and usually
involve a significant risk, which makes construction insurance an
important safeguard.
Workers operate in extreme conditions, operating heavy machinery
and using tools that can cause injuries. They may also need to work
at extreme heights, near unfinished or damaged structures and
where other construction is ongoing.
Construction insurance takes into account the unique risks of a
construction site and pays its benefit if workers are injured or killed
despite the employer's safety measures.
Construction insurance also covers materials and machinery on the
construction site in the event of an accident, fire or theft.
 TYPES OF CONSTRUCTION INSURANCE
A. Workers compensation and employers liability insurance
It is designed to provide the statutory benefits required by state law to
an employee who is hurt or killed as a result of employment.
The insurance can be established as mandatory or non-mandatory
funds (employers is self-insured); private insurance or state program
B. Professional liability insurance
It provide protection to architects and engineers from liability based
upon professional errors or omissions in performing design,
construction management or other services.
TYPES OF CONSTRUCTION INSURANCE

C. Comprehensive general liability insurance

It insures against liability imposed by law for negligent acts occurring
in the conduct of the business which result in bodily injury or damage
to the property of others.
Typically, the basic policy can be endorsed to include coverage for
owners and contractors protective insurance, products, and
completed operations, blanket contractual, personal injury, and
frequently cover the liability arising from the insureds automobiles.
D. Contractual liability insurance
It protects the contractor when he assumes the legal liability of others,
generally the owner, designer, or other designated party.
TYPES OF CONSTRUCTION INSURANCE

E. Builders risk insurance

It covers the cost of damage of a physical nature to a
building or other component of a construction project,
except those specifically excluded (e.g. faulty design, faulty
materials, faulty workmanship, force majeure, etc.).
Coverage applies to material and equipment incorporated
into the work when located on site or in transit to the site.
F. Equipment floater policy
It covers damage to mobile and stationary construction
equipment which is not generally subject to vehicle
registration. Not included liability and property damage
insurance for cars, trucks, and other equipment subject to
the motor vehicle licensing laws.
It provides coverage for damage to the equipment at the
job site, in transit, and at contractors yard.
TYPES OF CONSTRUCTION INSURANCE

G. Payroll taxes and insurance

Included is a social security tax for both employers and employees,
state unemployment tax, employment training tax, etc.

H. Wrap-up insurances
Particularly in the private sector, a number of owners have established
this kind of insurance to cover the owners, contractors,
subcontractors, and sometimes construction managers as well as the
designers.
Several major public program including rapid transit, wastewater
Advantages to owner: lower insurance costs, control over the
insurance program, standardization or risks and centralization of
responsibility
Usually used by contractor with less experience where they need to
pay more for this type of insurance.
 Performance bond
Performance Bonds guarantee for the
satisfactory completion of a project.
This will require having a collateral property or
investment to back up the requirements of
the surety agency.
A performance bond is usually issued by a
bank or an insurance company, both of which
act as a surety.
 Performance Bonds Benefits
The owner of a project is assured of the completion of the project.
The owner does not need to incur additional costs.
There are also some drawbacks with the Performance Bonds. The
drawbacks of performance bonds are:
Sometimes, the surety tries to establish that the owner did not comply
with the technical conditions of a bond to avoid paying the
compensation.
Sometimes the surety will try to prove, that the owner may have to
settle for the least expensive remedy to the problem.
The owner needs to quantify the losses that might have been suffered
when a trader or contractor fails in their performance.
If the owner underestimates the losses and the future cost of the
completion of the project, the owner may not be able to recover the
shortfall from the surety.
Performance Bonds Requirements
Surety and financial institutions have different
requirements depending on the capacity of the
contractor, the volume of the project being
ensured and the projects challenges. Usually they
ask for the following:
At least two years of Certified Public Accountant
(CPA) prepared financial statements.
Copy of the contract that is being awarded.
Application of the surety.
If you own real estate, it will help you and will
accelerate the process.
AN EXAMPLE OF PERFORMANCE
BOND CERTIFICATE
QUALITY MANAGEMENT
QMS
ISO
QLASSIC
 WHAT IS QUALITY?
Fitness for purpose.
Not absolute, but depend on circumstances
Degree to which a set of inherent characteristics fulfills requirements.

What does quality means to you?

Conformance to specifications
Fitness for purpose
Meeting needs & expectation
Free from defects
On-time delivery
Consistency
Safe & Reliable
Customer satisfaction
Value for money
Right things, place, price and time
A Quality race without a finishing time
 QUALITY MANAGEMENT
WHY NEED TO MANAGE QUALITY?
To ensure that the project will satisfy the
requirements of clients.

DEFINITION
All activities of the overall management function that determine
the quality policy, objectives and responsibilities, and implement
them by means such as quality planning, quality control, quality
assurance and quality improvement (BS EN ISO 8402)
 QUALITY MANAGEMENT SYSTEM (QMS)

Quality Management System can be seen as a

complex system consisting of all the parts and
components of an organisation dealing with the
quality of processes and products.

DEFINITION
The managing structure, responsibilities,
procedures, processes, and management
resources to implement the principles and action
lines needed to achieve the quality objectives of
an organisation.
 What is process?
ISO 9000 Standard promotes the adoption of
a process approach with interaction of various
processes that make up the quality
management system
KEY PRINCIPLE : P-D-C-A CYCLE
 P-D-C-A CYCLE & A SYSTEM FOR
ENSURING CUSTOMER SATISFACTION
 QUALITY MANAGEMENT SYSTEM ( qms)
OBJECTIVES:
Encourage organisation to analyse customer
requirements. Require organisation to define
key processes that contribute to meeting
these requirements.
Require organisation to keep these
processes under control to ensure consistent
quality is provided.
Provide framework for continual
improvement.
Provide confidence to organisation and its
customers that it can consistently fulfil these
requirements.
 ISO
International Organization for Standardization
(since 1947)
The ISO 9000 standard (ISO 9001,1994) provides
comprehensive guidance on the principles, scope
and implementation of a QMS.
Recognition of conformity to ISO 9000 standards
by member states of European Union.
ISO 9000 adopted/ endorsed as national
standards in more than 100 countries
 ISO 9000
The construction industry normally follows :

ISO 9001
For organization carries out design work
For example : architectural practices, design and build
contractors or subcontractors
Has 20 parts (clauses)
ISO 9002
For organization do not carries out design work
Has 19 parts (clauses)
Purpose & Application of ISO
9001:2008
For planning, implementing, maintaining and
improving the effectiveness of a Quality
Management System (QMS)
Basis for audits and certification/ registration
As contractual requirement between
customer and supplier
To reduce multiple customer audits through
harmonised quality standard
ISO 9001 CLAUSES

..their core
clauses
 ASSESS QUALITY OF WORKMANSHIP
USING QLASSIC
Quality Assessment System in Construction
(QLASSIC) is a system or method to measure and
evaluate the workmanship quality of a building
construction work based on Construction
Industry Standard (CIS 7:2006).
QLASSIC enables the quality of workmanship
between construction projects to be objectively
compared through a scoring system

http://www.cidb.gov.my
http://www.cidb.gov.my
 CIS 7: Quality Assessment System For
Building Construction Works
This CIS 7 was developed in November 2006 by CIDB's Technical Committee
(TC) that comprises of representatives from Public Works Department (JKR),
Jabatan Perumahan Negara (JPN), Real Estate and Housing Developers
Association (REHDA), Pertubuhan Akitek Malaysia (PAM), Master Builders
Association Malaysia (MBAM), National House Buyers Association (HBA) and
other relevant organizations.
This standard specifies requirements on quality of workmanship and
assessment procedures for building construction work.
There are four category of building assessed using QLASSIC as follows:
1. Category A (Landed Housing) Detached, Semi-Detached, Terrace and Cluster
House.
2. Category B (Stratified Housing) Flat, Apartment, Condominium, Service
Apartment and Town House.
3. Category C (Public Building) Office Building, School and other related facilities/
buildings intended for public use.
4. Category D (Special Public Building) Hospital and Airport only.
http://www.cidb.gov.my
 Objective of QLASSIC
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.

http://www.cidb.gov.my
 Scope of QLASSIC
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 of the standard i.e , Construction
Industry Standard (CIS 7:2006).
Marks are awarded if the workmanship complies with the standard.
These marks are then summed up to calculate the QLASSIC Score
(%) for a the building construction project.
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".

http://www.cidb.gov.my
Weightage In Assessment

http://www.cidb.gov.my
 Why apply for QLASSIC assessment ?
Enables you to benchmark the quality of
workmanship of your construction project.
Provides you a standard quality assessment
system on quality of workmanship of
construction works.
Enhances quality control in construction
works.
Specified as a quality criterion for contractors
performance scorecard.

http://www.cidb.gov.my
 http://www.cidb.gov.my

How QLASSIC Assessment Carry Out?

How QLASSIC Assessment Carry Out?

http://www.cidb.gov.my
QLASSIC Process Flow

http://www.cidb.gov.my
http://www.cidb.gov.my/cidbv4/images/pdf/K
ajianIMPAKQLASSICOlehCREAM1.pdf
 YOUR OPINION IS NEEDED HERE!!
After discussing on Quality Management, ISO, and
etc.:
IS IT HARD TO MAINTAIN QUALITY IN CONSTRUCTION??
(please response..)

IF YOUR RESPONSE IS YES:

WHY IT IS SO??
WHAT IS THE PROBABLE MAJOR HINDRANCE??

IF YOUR RESPONSE IS NO:

WHY THERE ARE STILL SO MANY SUB-STANDARD
CONSTRUCTION PROJECTS EXIST??
WHAT IS THE PROBABLE CAUSE(S) OF THE SUB-STANDARD
CONSTRUCTION PROJECT??

THUS, CAN WE REACH FOR A SINGLE CONCLUSION HERE?? or

NO?? (for the hindrance and cause of course)
PROCUREMENT MANAGEMENT
Elements
Process and procedure
 PROCUREMENT MANAGEMENT
WHY WE NEED TO MANAGE PROCUREMENT?
To ensure quality service or project acquisition.

Project procurementthe process of identifying

and acquiring the necessary goods and services
to implement and complete project plans.
 PROCUREMENT MANAGEMENT
Focus on time, cost and quality (or performance) in relation to
both the design and construction of the building.
The clients policies, resources, organisational structure, and
preferred contractual arrangements will all need to be taken
into account in choosing the right procurement method for
their project i.e Design and construct strategies, etc
Successful procurement relies on all parties involved in the
project complying with their respective obligations, and
identifying and dealing with risk appropriately from the outset.
 PROCUREMENT MANAGEMENT
Documentation Supplier and
Procurement
Procurement process

of purchasing subcontractor
planning
requirement evaluation

Inspection Administration Award contract

Delivery Improvement
 PROCUREMENT MANAGEMENT
Procurement planning
- A process of identifying the project products
needs that are needed to deliver a project which
satisfies client
- Include project scope of work, project
specification and drawings, product list, company
resources, product estimated value, product
supplier list, type of product procurement non
competitive bids, competitive bids, approval to
procedure with procurement
 PROCUREMENT MANAGEMENT
Documentation of purchasing requirement
- Document shall identify scope, product characteristic,
and forms. They should include delivery dates for
product. Failure to identify things that exist at outset of
the procurement give rise to costly dispute between
the parties.
- The process include prepare procurement documents,
standard forms, invite contractors from approved
shortlist to submit tender offers or expression of
interest, receive tender offers or expression of interest,
prepare evaluation report, review procurement
documents, make official sue that finance is available
 PROCUREMENT MANAGEMENT
Supplier and subcontractor evaluation
- Evaluation is made based on the setting criteria of the
bids or proposal
- Standard items : Price and term of payment; Delivery
- Non standard : Overall or life cycle cost; Technical
capability; Understudying the needs; Management of
provider approach; Financial capability of provider;
Price and technical skills; Installation and testing;
History with vendor organization; Customer
acceptance; Customer feedback and approval of the
selection
 PROCUREMENT MANAGEMENT
Award contract
a. Notify successful tender and unsuccessful
tender outcome
b. Compile contract document
c. Capture contract award date
d. Formally accepted tender offer
 PROCUREMENT MANAGEMENT
Administration
- Process of ensuring that supplier/contractor
performance meets contractual requirement.
a. Administer contract in accordance with the
terms and provision of the contract
b. Ensure compliance with requirement
c. Capture contract completion and closeout
d. Payment
 PROCUREMENT MANAGEMENT
Inspection
- Review of deliverable (done by a third-party inspector)
captures statistics on suspected defects.
- Document to be provided to selected third party
inspector:
a. Copy of Purchase Order (PO)
b. Approved drawings
c. Approved specification
d. Place of inspection
e. Address of owner
 PROCUREMENT MANAGEMENT
Delivery
a. Deliver to site with the following documents
- equipment/material description; quantity, size, model
brand; equipment test certificate; equipment/material
manual
b. Delivery decision
- Advantage of site store facility; radiance of installation
place; cash flow; installation manpower; related
interface item
c. Site inspection
- Conduct visual inspection
 PROCUREMENT MANAGEMENT
Improvement
Project manager shall monitor the process and
justify
- Whether the procurement satisfied the stated
objective
- Whether needs and expectation have achieved
- Whether the procurement process should be
improve
- Whether the process improve cost saving
RESOURCE MANAGEMENT
Man-power
Materials
Machineries
 RESOURCE MANAGEMENT
Resource management includes identifying, analysing
deploying and monitoring the resources required to
undertake the project activities.

Insufficient resource analysis leads to poor productivity

and quality in the later stages of the project.

In construction project, resources can be categorized into

man-power, materials and machinery.
 RESOURCE MANAGEMENT

1) Man-power How??

Employ adequate workmen to execute the work.

Ensure that resources are analysed in advance onto its
availability, skills and capability
Establish programmes to develop the multi-skill of the labour
resource
Ensure the resources are properly trained to undertake the
respective tasks in the project
Manage health and safety in the project
 THIS IS HOW??..
Generally, there are two types of manpower planning:
1. Resource Smoothing:
Time-driven (limitation of time / time is fixed)
So, you dont have any problems with the manpower, you can hire them to the
optimum level.
Avoid sudden aggregation of manpower; because:
It might demotivated the workers
High turnover / costly
Affecting productivity
Time is paramount, rather than manpower availability

So, avoid this kind of Preferably, the manpower

Normal manpower efforts in construction aggregation should be like this
manpower aggregation
 THIS IS HOW??.. (cont.)
2. Resource Levelling:
Resource-driven (limitation of manpower / manpower is fixed)
So, you dont have any problems with the time, you are
permitted to drag the time to the optimum level.
Avoid exceeding the available number of manpower; because:
You are short of manpower!
Thus, your activities are planned according to the available
number of manpower
Manpower requirement is important, rather than time

HERE, ONLY EXAMPLES OF RESOURCE LEVELLING WILL BE

DISCUSSED
 EXAMPLES - RESOURCE LEVELING
Example 1
 Resource Leveling
STEP 1: Create the critical network diagram

B
5

0 A 2 C 5 E 7
1 2 3 3 5 4
0 2 1 2 7

D
4
 Resource Leveling
STEP 2: Calculating the total float & identify critical activities

TFB = 5-5-0
=0
B
5 TFE = 7-2-5
=0
0 A 2 C 5 E 7
1 2 3 3 5 4
0 2 1 2 7
TFC = 5-1-2
TFA = 3-2-0 =2
=1
D
4
TFD = 7-4-2
=1
 RESOURCE LEVELING
STEP 3: Draw the bar chart

Act. Duration DAYS

1 2 3 4 5 6 7
A 2

B 5

C 1

D 4

E 2
 RESOURCE LEVELING
STEP 4: Allocate all the resources on the bar chart

Act. Duration DAYS

1 2 3 4 5 6 7
A 2 2 2

B 5 2 2 2 2 2

C 1 2

D 4 2 2 2 2

E 2 2 2
 RESOURCE LEVELING
STEP 5: Calculate the total labor, labor availability & shortage/ surplus

Act. Duration DAYS

1 2 3 4 5 6 7
A 2 2 2

B 5 2 2 2 2 2

C 1 2

D 4 2 2 2 2

E 2 2 2

Total labor requirement 4 4 6 4 4 4 2

Labor availability 4 4 4 4 4 4 4
Shortage/ surplus - - 2 - - - -2
 RESOURCE LEVELING
STEP 6: Draw resource histogram
DAYS
Act. Duration
1 2 3 4 5 6 7
2 2
A 2

2 2 2 2 2
B 5

2
C 1

2 2 2 2
D 4

2 2
E 2

Total labor requirement 4 4 6 4 4 4 2

Labor availability 4 4 4 4 4 4 4
Shortage/ surplus - - 2 - - - -2

6
D
4
Resource/ Labor A C D
2
B E
0
Days
 RESOURCE LEVELING Before level
STEP 7: Level resource on float After level

DAYS
Act. Duration
1 2 3 4 5 6 7
2 2
A 2
2 2
2 2 2 2 2
B 5
2 2 2 2 2
2
C 1
2
2 2 2 2
D 4
2 2 2 2
2 2
E 2
2 2
Total labor requirement 4 4 6 4 4 4 2
Labor availability 4 4 4 4 4 4 4
Shortage/ surplus - - 2 - - - -2
Resource loading 4 4 4 4 4 4 4
Leveling - - - - - - -
 RESOURCE LEVELING
STEP 8: Draw resource histogram after leveling
DAYS
Act. Duration
1 2 3 4 5 6 7

6
D
4
Resource/ Labor A C D
2
B E
0
Days

4
A C D
Resource after leveling 2
B E
0
Days
 RESOURCE LEVELING
4 General Rules;
1. NEVER USE CRITICAL ACTIVITIES when level the
resources
2. Drag resources within its FLOAT/SLAG limit
3. DO NOT SEPARATE or BREAK the GANTT BAR
4. ALWAYS allocate the CRITICAL BAR at the
BOTTOM of your GRAPH
 RESOURCE LEVELING
Example 2
A project consist of SEVEN (7) activities which are arranged as a network in Figure
7.4. The resources that needed in each activity are as follow:

Activity A = 20 person per day, for 6 days

Activity B = 15 person per day, for 3 days
Activity C = 15 person per day, for 3 days
Activity D = 10 person per day, for 3 days
Activity E = 15 person per day, for 3 days
Activity F = 35 person per day, for 3 days
Activity G = 5 person per day, for 3 days

Do a resource leveling in this project if total of 35 workers is available.

 RESOURCE LEVELING
Example 2

F
2 5
3
G
A
3
6

B E
1
3 6
3 3

C
D
3
3

Figure 7.4
 RESOURCE LEVELING
After performing Forward Pass and Backward Pass Calculation

6
F 9
2 5
6 9
3
G
A
3
6

12
0 0 12
B 3 E
1 6
3 6
0 6 3 3 12
9 6
6
C
D
3
3
3
4
9

Figure 7.4a
 RESOURCE LEVELING
Calculating the total float

Act Duration Lab ES LS EF LF TF

(days)
A 6 20 0 0 6 6 0
B 3 15 0 0 3 9 6
C 3 15 0 0 3 9 6
D 3 10 3 9 12 12 6
E 3 15 3 9 12 12 6
F 3 35 6 6 9 9 0
G 3 5 9 9 12 12 0
 RESOURCE LEVELING
Example 2: Draw the bar chart and level the resources accordingly
Original bar chart After leveling
activity
1 2 3 4 5 6 7 8 9 10 11 12 1 2 3 4 5 6 7 8 9 10 11 12
A 20 20 20 20 20 20 20 20 20 20 20 20
B 15 15 15 15 15 15
C 15 15 15 15 15 15
D 10 10 10 10 10 10
E 15 15 15 15 15 15
F 35 35 35 35 35 35
G 5 5 5 5 5 5 days

Total requirement 50 50 50 45 45 45 35 35 35 5 5 5 50 50 50 45 45 45 35 35 35 5 5 5
35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 35 30 30 30
15 15 15 10 10 10 - - - -30 -30 -30

50 50
Resource/ 40 C 40 35
labor E
30 30
B D B C D
20 F 20 F
A A E days
10 10
G G
0 days 0
 RESOURCE MANAGEMENT

2) Materials

Devising control over raw materials : The quality of the finished product is
determined mostly by the quality of raw materials. When necessary, a
resident inspector may be deputed by the QC Dept in the vendor's place to
see that only goods in accordance with specifications are supplied. It is
advisable to re-inspect the raw materials before putting them to actual
use.
Fixing standards and specifications : Predetermine standards and
specifications. The practice should be to provide quality instructions in the
form of drawings, showing shapes, dimensions and specifications
describing colour, strength, thickness, chemical composition, etc.
 RESOURCE MANAGEMENT

2) Materials (cont.)

Locating inspection points : When the points at which defects occur are
wrongly located or located with delay, it hinders quality control. Therefore
there should first inspection of the raw materials at the vendor's places,
then at the company's plant, then at the various points during the process
of production and finally at the time of packing. The defects are likely to
occur at these points. The finished goods can be cleared after obtaining
'O.K.' or 'All Correct' from the QC Dept.
Maintaining records : The Quality Control Department is responsible for
maintaining all records relating to quality inspection and control and the
number rejected.
Example for material management
flowchart (which follows quality)
 FOR YOUR INFORMATION
Wastages in construction site can be in between
the range of 3% -8% of total materials usage.
Malaysian Construction Industry is spending
more than RM20 billion in project development
yearly. Imagine that
If materials consist of 30% of RM20 billion. It will be
RM6 billion.
Taken the average of 5% wastages; it will be RM300
million (being dumped yearly)
What can you do with those huge sum of money??
 FOR YOUR INFORMATION (cont.)
Therefore, in order to minimize the wastages, please review the following fishbone chart
(and of course, please tackle and manage the causes carefully):

The causes of wastages in construction site

 RESOURCE MANAGEMENT
3) Machineries

Provide adequate equipment to execute the work.

Maintaining quality of equipment: The final quality
of the products is conditioned by the quality of the
equipment and other devices used. For example,
the QC Dept is responsible for testing the
equipment used in inspection such as gauges,
which measure dimensions, electronic devices,
magnetic devices and industrial radio graphical
instruments.
 RESOURCE MANAGEMENT - MACHINERIES

Exercising control over construction operations : In order to

execute efficient practices, the technical expert of the QC
Dept must investigate, from time to time, the operating
methods. Such investigation helps to eliminate all possible
variables.
Purchasing is responsible for acquiring the
materials/machines needed to make the product. Purchasing
must locate sources of supply, ensure that the parts and
materials needed are of sufciently high quality, and
negotiate a purchase price that meets the companys budget
as identied by nance.
COMMUNICATION MANAGEMENT
COMMUNICATION MANAGEMENT

Good communication and coordination is essential to accomplish

the overall goals of the project.

Efficiency in building depends upon the quality of relationship

between the client, professionals, contractors and sub-
contractors without lacking of cohesion within the building team
(Emmerson, 1962).

As building is a peoples business, relationships are critical to the

efficiency in the construction sector and emphasis should be put
to improve integration, teamwork and partnering arrangements
(Latham 1994, Egan 1998, 2002).
COMMUNICATION MANAGEMENT

Within the organisation, good communication and a good

feedback system are important to convey ideas to the
management and to incorporate the necessary changes.

One effective strategy might be open lines of communication

that allow direct access for any employee, at any level, to
contact upper management regarding an idea for improvement
or a particular concern. It is very important that management
reacts to the concerns and ideas of the employees.
 COMMUNICATION MANAGEMENT

Factors to achieve good communication in construction:

Quality techniques/tools to solve problems employee
survey
Effective top-down and bottom-up communication
Feedback through listening, appropriate planned meetings
and supportive body language in face to face communication
Operate no blame culture to ensure people are prepared to
be open in their communications, with a willingness to learn
from mistakes.
THANK YOU