Talavera, Alvin S.

CE157/E01

XYZ Construction, Inc. is a triple A construction company and is one of the leading
construction company in the Philippines. One of the company thrusts is to provide quality
service through operational excellence. Recently, the company is experiencing decrease in
profit. The top management was alarmed and decided to conduct thorough audits on their
project sites. After conducting the audit, there are several factors that have contributed to
the problem. However, one of the most recurring problem diagnosed on site is their problem
on workmanship. Audit results pointed out that there is a huge problem on the quality of
their work. There are a lot of non-corformances resulting to re-works and in turn, increase
on the project cost. One primary non-conformance is the presence of honeycombs and
exposed rebars upon concrete pouring. This prompted the management team to create an
Adhoc committee to further study the situation since this is not only a quality issue but is a
significant safety issue as well. Your group is chosen to be the Adhoc Committee to address
the issue presented. Your group was then sent to attend Total Quality Management
seminars and trainings. From your learnings in this training and with the problem presented
at hand, you are to create a report to the top management containing the following:

1. A full background of the problem.

2. A root cause analysis of the problem using Ishikawa Diagram.

3. Based on the identified root causes, propose a mitigation plan (you may use flow chart
or other tools).

4. A step-by-step management points/principle in addressing the issue based on the root

cause analysis.
 Solution to Case Study

1. The problem with the company is that they are currently experiencing a
decrease in profit.

2. Through the conduction of audit, it is determined ta he most occurring

problem is on workmanship, the quality of work.

Increase in Workmanship
project cost

Poor
Re-works workmanship

Decrease In
Profit
Honeycombs
Incompetent

People
Quality of work

3.

Quality of work

Poor quality
Good quality result

Better income Decrease in income

4. Root Cause Analysis

The main cause is said to be the problem with the company’s decrease in
income which is the poor workmanship that resulted to honeycombs in the
work and resulted further to a re-do in their work and resulted to a decrease
in income due to that the construction work is redo again. These chain of
events trigger the decrease in profit of XYZ construction.