CHAPTER 1

Introduction 1.1 BACKGROUND The primary purpose of QMS is to provide excellence in customer satisfaction through continuous improvements of products and processes by the total involvement and dedication of each individual who is in any way, a part of that product/process. The principles of QMS create the foundation for developing an organizations system for planning, controlling, and improving quality.

QMS is a structured approach to improvement. If correctly applied, it will assist a construction company in improving its performance. It involves a strong commitment to two guiding principles: customer satisfaction and Continuous improvement. Inspection traditionally has been one of the key attributes of a quality assurance/quality control system in the construction industry. Regarding inspection, Routine 100% inspection is the same thing as planning for defects acknowledgement that the process cannot make the product correctly, or that the specifications made no sense in the first place. Quality comes not from inspection, but from improvement of the process (Deming 1982). This does not mean that inspection ceases. Instead, it means that more effort is put into preventing errors and deficiencies.

The construction industry has been following a path that has led to lack of trust and confidence, adversarial relations, and increased arbitration and litigation. The industry has become increasingly reliant on burdensome specifications, which seldom says exactly what the owner intends them to say. This has led the owners to shift more of the risks to the contractors. The net outcome is that the construction industry has been bogged down with paperwork, defensive posturing, and generally tends to have a hostile attitude towards the other participants. QMS can help reverse this trend. Although, not a magic pill or panacea for all illnesses, it will, if properly implemented, help construction companies improve and will help all the parties come closer.

1.2

OBJECTIVES OF STUDY QMS places emphasis on prevention, not correction. The goal is

work that is 100% free of errors, free of accidents, and 100% free of waste. The name of the game is to do things right the first time, eliminating waste and rework. To do this, it is necessary to focus on processes. Basically, a process is a task or a series of tasks. A process might be the vibration of fresh concrete, the fabrication of structural concrete, the preparation of a shop drawing, or a way in which the project manager deals with a client and with other members of the team. The primary objectives of the study reported in this paper are: (1) To assess the extent to which the construction organizations are implementing ISO 9000-certified quality systems. (2) To study the effectiveness of implementing ISO 9000-certificate quality systems in construction companies of Hyderabad

Basically, a process is a task or a series of tasks. A process might be the vibration of fresh concrete, the fabrication of structural concrete, the preparation of a shop drawing, or a way in which the project manager deals with a client and with other members of the team.

1.3 SCOPE OF STUDY This project proposes to investigate how far the construction companies implementing ISO 9000 effectively though they are ISO certified and to access the effectiveness of implementing quality management system in construction companies. The main thrust of this research project will be to identify the effectiveness. To realize the above objectives, literature search, questionnaires are used. The tools used in the measurement are such as piecharts, Mean Score Analysis, Discriminate Analysis. It is expected that this study will be of a pioneering nature.

1.4 ORGANISATION OF THE REPORT The report is logically organized into five (5) chapters and appendices. Chapter 1 is the introduction and is composed of objectives of study, Research Methodology and Significance of study. Chapter 2 comprises literature review of all terminologies of ISO, QMS, Analysis of Management Characteristics, General Model for Implementing QMS, Other Quality Systems and Quality Improvement Techniques.

Chapter 3 describes in detail Quality management system, ISO 9004 Quality management systems - Guidance for performance improvement, Quality management principles, Design and Development of a QMS. Chapter 4 describes the Statistical Analysis of the collected data. Chapter 5 summarizes the conclusions of this study and recommendations for further research based on the research findings and insight developed during the course of this study. The appendices include the questionnaire.

CHAPTER 2
2.1 INTRODUCTION The use of the International Standards Organization (ISO) 9000 series suite is now the most widely used technique to be adopted by construction from the manufacturing sector. Quality Management Systems (QMS) based on the ISO 9000 series are the recognized approach to meeting quality assurance certification requirements in both the design and contracting sectors of the industry. Auditing is central to this process as the currency of the certification is established through third party audits and maintained through first and third party audits. This paper questions the reliance on third part certification as a reliable key performance indicator in the Lean construction context.

This research paper accesses the effectiveness of implementing the quality management systems in the Hyderabad based construction companies by the process of the third party audit as per the ISO 9004 specified standards.

2.2. Quality Quality is defined by customers. Customers seek products and services which are fairly priced, reliable, and for the life of these products and services, capable of satisfying the customers needs and expectations. To know whether its products and services are of high quality, a company must listen to both 'the voices of its processes' and 'the voices of its Preparations. 2.3 What is ISO? The ISO 9000 series is a part of ISO, the International Organization for Standardization. ISO is a non-governmental organization that was established in 1947, in Switzerland, to develop common international standards for quality management and quality assurance. ISO derives its name from the Greek word isos meaning equal which can be thought of as standard in quality assurance terminology.

The ISO 9000 series is currently used in more than 90 countries. The standards that it provides apply to a variety of areas of manufacturing and service organizations. Some of these areas include manufacturing, processing, servicing, printing, forestry, electronics, steel, computing, legal services, financial services, accounting, trucking, banking, retailing, drilling, recycling, aerospace, construction, exploration, textiles, pharmaceuticals, oil and gas, pulp and paper,

petrochemicals, publishing, shipping, energy, telecommunications, plastics, metals, research, health care, hospitality, utilities, aviation, machine tools, food processing, sanitation, agriculture, software government, education, consumer recreation, products, fabrication,

development,

transportation,

instrumentation, tourism, biotechnology, chemicals, consulting, insurance, and so on . The term ISO 9000 is used to cover a family of standards, which is referred to under this generic title for convenience. It refers to a set of quality management standards that act as a control for quality. It can help both product and service oriented organizations achieve high standards of quality that are recognized and respected throughout the world. Its members come from over 120 national standards bodies. ISO first published its quality standards in 1987, revised them in 1994, and then republished an updated version in 2000.

2.4 MISSION The mission of ISO is to promote the development of standardization and related activities in the world with a view to facilitating the international exchange of goods and services.

2.5 Why ISO? Many companies choose to become ISO 9000 certified because customers expect quality products and services. According to FORTUNE magazine, many companies consider ISO 9000 more than a marketing tool and a minimum standard. By working through the ISO 9000 process, they have been able to compete for, and satisfy their customers more effectively

Also, many companies decide to implement ISO 9000 to reduce costs related to quality problems such as after-the-fact inspections, warranty costs, and rework. ISO 9000 is also implemented to have an edge over the competition. A few governments require that some industries meet the international standards that ISO 9000 has created. ISO 9000 is made up of a family of four quality assurance models that work to improve management practices.

The quality assurance model family includes ISO 9001, ISO 9002, ISO 9003, and ISO 9004. As a company begins to implement ISO 9000 and become ISO 9000 certified, it will choose which quality assurance model from the ISO 9000 family it wants to utilize based on the needs of the company. Each model is used for a different function within a company. These models are actually subsets of each other and it is possible for a company to use all of the quality assurance models. The certification process of ISO 9000 can take 12 to 18 months depending on which standards are registered.

Fig 2.5.1 The ISO 9001:2000 System Model

Fig 2.6.1 The ISO 9000 family

2.7 ADVANTAGES & Benefits of ISO 9000 Certification ISO 9000 improves not only overall quality of the companys product, but also improves inventory turnover and on-time delivery. A company that implements ISO 9000 should expect an expansion into new markets and a larger markets share. By becoming ISO 9000 certified a company greatly improves its overall efficiency and will be recognized for its commitment to quality both nationally and internationally.

Companies that have been certified under ISO 9000 standards would likely require their suppliers to have ISO 9000 quality assurance systems for their products. Therefore, suppliers which have achieved ISO 9000 certification will automatically conform to the requirements of such purchasers. Besides, purchasing departments of companies usually check with the Registrars Directory of ISO Certified Firms when selecting suppliers of products and/ or services.

Construction companies wishing to do businesses with government agencies and compete in the international market will recognize the certification as a competitive advantage.

2.9 COMPARITIVE STUDY 2.9.1 Balanced Scorecard Vs ISO 9001:2000

Balanced Scorecard Vision and Strategy

ISO 9001:2000 Quality Policy Quality objectives Customer focus

Customer

Customer related processes Customer satisfaction

Internal Business Processes Organizations Business Results

QMS General requirements Product Realization Not specifically addressed in the standard.

2.9.2 Excellence Model Vs ISO 9001:2000

Excellence Model Policy and Strategy Customer & Market Focus

ISO 9001:2000 Quality Policy Quality objectives Customer focus

Customer Satisfaction People Management

Customer related processes Customer satisfaction Human Resources

Business Processes Organizations business results

QMS General requirements Product Realization Not specifically addressed in the standard.

2.10 Steps involved in Implementation of ISO 9000 in a construction firm. The implementation of any of these models begins with the definition of the companys attitude toward quality and forms the companys quality policy. Once this is complete, the company will create and define a quality team and the quality teams responsibilities. Resources will be allocated so that the quality team can perform and verify the quality system at work. A quality manager will be given authority and course of action to review the effectiveness of the quality system. Once the quality management team has been selected, the team will create the quality system for the company and create a manual that defines it. Once the quality system is determined, it will be implemented. Implementation includes developing the quality plans for the products the company makes, the processes the company uses, the projects the company takes on, and the contracts the company makes with its customers.

To insure the quality plans are followed, the company must also institute a documentation system, training program, and auditing plan.

After implementation, the company will contact an ISO 9000 registrar to become certified. The registrar will examine the company two ways. They will review the documentation system to ensure the documentation meets

ISO 9000 standards. The registrar will then assess the site to make sure the company is in compliance with the aforementioned documentation system. After the registrar has finished the assessment, the company will be registered and become ISO 9000 certified. Customers will be able to confirm with the registrar that the company is certified. Every six months the company will be assessed to make sure that the company is maintaining its compliance with ISO 9000 standards. During these semi-annual assessments only 20 percent of the company will be checked at one time. By the third year, the entire company will have been covered to assure compliance with the ISO 9000 standards.

The ISO 9000 program is an ongoing process. Once ISO 9000 has been implemented, the companys goal should be continuous improvement and continual customer satisfaction. The initial cost of registering for ISO 9000 is rather high. On an average, a company pays a cost of $245,000 for the implementation and registration process. This includes auditing fees and internal expenses." However, this cost is usually recovered in approximately three years. Savings are also high for most companies once the ISO 9000 has been implemented.

Fig 2.10.1 Implementation of ISO 9000 in a construction firm.

2.12 Important changes to ISO 9001 The new series Major changes have been introduced into the overall structure and content of the revised ISO 9000 series of quality management standards. The series now comprises just four documents: ISO 9000:2000 Quality Management Systems Fundamentals and vocabulary, ISO 9001:2000 Quality Management Systems Requirements, ISO 9004: 2000 Quality Management Systems Guidelines for performance improvement, ISO 19011 Quality Management Systems Guidelines on Quality and Environmental Auditing.

This, when issued, will replace ISO 10011. ISO 9000:2000 explains the principles underlying the changes to ISO 9001 and defines vocabulary. In some instances commonly-used terms have been given a new emphasis. It is wise, therefore, to read ISO 9000:2000 before ISO 9001:2000.

2.13 New requirements All readers should be aware of the following major changes that have been made to the key requirements document, ISO 9001:2000. The greatest change is the new emphasis on processes and good process management. This may be quite new to some organizations currently holding ISO 9001 certificates. Part F. ISO 9001:2000 also places significantly more emphasis on the commitment and involvement of top management in

establishing quality policy and objectives, ensuring that customer needs are satisfied, carrying out quality management system reviews including reviews of improvement activities, and providing the necessary resources to deliver quality. This topic is discussed from different perspectives in Parts A, C, E, F and the Appendices.

The reduced scope standards ISO 9002 and ISO 9003 have been withdrawn. Instead, ISO 9001:2000 should now be tailored in cases of reduced scope by removing one or more of the clauses which relate to Product Realization. This is permissible provided the requirements that have been removed have no impact on the quality of the product or service being offered.

2.14 Reasons For Maintaining ISO 9000 Certification Reasons for obtaining and keeping ISO 9000 Certification: Customer-Marketing Benefits Conveys commitment to Quality Fulfils contract requirements Conveys Operational and Systems assurance Facilitates On-time delivery Internal Benefits Facilitates Business and Quality Planning through detailed records Used to transform company Provides insights on company inter-relationships

 Encourages internal focus and makes operations more efficient and effective Assists staff in understanding and improving operations.

2.15 Some misconceptions about ISO Upon certification, many organizations turn to ISO to request use of the ISO 9001:2000 logo or ISO 14001:2004 logo. No such ISO logos exist. There is only the ISO logo itself, which is a registered trademark. Unless authorized by ISO, use of its logo is prohibited. ISO will not allow its logo to be used in connection with the certification of management systems, even when these certifications attest conformity to ISO 9001:2000, or to ISO 14001:2004. Allowing the ISO logo to be used would give the false impression that ISO carries out certification activities, or has approved or authorized the organization using its logo. These activities are not business functions of ISO. ISO is not an auditor, assessor, registrar, or certifier of management systems, products, services, materials or personnel, nor does it endorse or control any such activities performed by other parties. ISO develops International Standards but does not operate any schemes for assessing conformity with them. ISO 9001:2000 and ISO 14001:2004 certificates are issued independently of ISO by more than 750 certification bodies worldwide, although the organization does develop voluntary standards and guidelines to encourage good practice by these certification bodies and by the accreditation bodies that approve the latter as competent. ISO reserves the right to take appropriate action when its logo is used without its permission, or if it is adapted or modified. These remarks apply not only to certified organizations, but also to accreditation and certification bodies, and to consultants and trainers involved in activities related to ISOs

management system standards. They also apply to publishers and journalists when illustrating material dealing with ISO and its standards, whether in hard copy or electronic publications, or on Web sites. Prior permission must always be sought for the use of ISOs logo. ISO has no ISO 9001:2000 logo or ISO 14001:2004 logo. ISO will take whatever actions it considers necessary to prevent the misuse of its logo.

In brief Dont use ISOs logo.

Dont adapt or modify ISOs logo for your use. If you want to use a logo, ask your certification body for permission to use its logo.

If your organization is certified to ISO 9001:2000, use the full designation (not just ISO 9001).

If your organization is certified to ISO 14001:2004, use the full designation (not just ISO 14001).

Replace use of the generic terms ISO 9000 certification and ISO 14000 certification by the specific terms ISO 9001:2000 certification and ISO 14001:2004 certification.

In the ISO 9001:2000 and ISO 14001:2004 contexts, certified (and certification) and registered (and registration) are equivalent in meaning and you can use either term.

Dont say your organization has been accredited. Dont use ISO certified, or ISO certification. Use instead ISO 9001:2000 certified, ISO 9001:2000 certification, ISO 14001:2004 certified, or ISO 14001:2004 certification.

Dont display ISO 9001:2000 or ISO 14001:2004 certification marks of conformity on products, product labels, or product packaging, or in any way that may be interpreted as denoting product conformity.

Dont give the impression in any context that ISO 9001:2000 or ISO 14001:2004 certifications are product certifications or product guarantees.

When including a reference to ISO 9001:2000 or ISO 14001:2004 certifications in product-related information, including advertisements, do not do so in such a way that ISO 9001:2000 or ISO 14001:2004 certifications may be interpreted as being product certifications or product guarantees.

Be accurate and precise about the scope (the extent) of your organizations ISO 9001:2000 or ISO 14001:2004 certifications, as far as both the activities and geographical locations covered by the certifications are concerned.

2.16.1 The Process Approach A useful starting point can be found in Clause 0.2, Introduction Process Approach, which includes the following statement regarding this QMS approach:

It remains that the areas of litigation and liability exposure affect all products and services. An advantage of the process approach is the ongoing control that it provides over the linkage between the individual processes within the system of processes, as well as over their combination and interaction. When used within a quality management system, such an approach emphasizes the importance of a) understanding and meeting requirements.... While the emphasis is on an individual process and the system of processes, the legal focus will be upon a product or service created by a process and on all the processes, since product/service nonconformities would lead to a liability Situation. The process and processes will be judged by their impact on a product or service. In short, a process does not exist in a vacuum.

2.16.2 General QMS Requirements An organization implementing a QMS for conformance to ISO 9001:2000 that did not have a previous ISO 9001/2:1994-based quality system may have an advantage over an organization with an existing ISO 9001/2:1994conforming system that is upgrading during the transition period. The advantage is that the newcomer will be reading the following statements from Clause 4.1, Quality Management System-General Requirements, without preconceived notions of what these require of the new QMS: The organization shall establish, document, implement and maintain a quality management system and continually improve its effectiveness in accordance with the requirements of this International Standard.

The organization shall Identify the processes needed for the quality management system and their application throughout the organization Ensure the availability of resources and information necessary to support the operation and monitoring of these processes.

FIG 2.16.2.1 CONTINUAL IMPROVEMENT PROCESS

CHAPTER 3

THE QUALITY MANAGEMENT SYSTEM (QMS) 3.1 Generic Management System Standards The vast majority of ISO standards are highly specific to a particular product, material, or process. ISO 9000 is known as a generic management system standard. By definition, the term generic means that the same standards can be applied to any organization whatever its product, including whether the product is actually a service, in any sector of activity. The term management system refers to what the organization does to manage its processes and activities. To be efficient and effective, the organization must manage its way of doing business by systemizing it. This ensures that nothing important is left out and all employees are clear about the roles and responsibilities everyone has for doing what, when, how, why and where.

Management system standards provide the organization with a model to follow in setting up and operating the management system. This model incorporates features that experts in the field have agreed upon as representing the state of the art. A management system that follows the model, or conforms to the standard, is built on a firm foundation of state-of-the-art practices. ISO's management system standards now make these successful practices available for all organizations.

3.2 The key requirements document The key requirements document is ISO 9001:2000. This is the generic source of requirements for quality assurance in design, development, production, installation and servicing as well as the standard against which quality management systems is assessed.

3.3 Effectiveness Extent to which planned activities are realized and planned results achieved. ISO 9000:2000 3.2.14

ISO 9001 specifies requirements for a quality management system that can be used for internal application by organizations, or for certification, or for contractual purposes. It focuses on the effectiveness of the quality management system in meeting customer requirements. 9001: 2000 0.3 ISO

3.4 Improvement and Effectiveness There are many examples and requirements in ISO 9001:2000 that require the organization to address the effectiveness of its quality management system. Further requirements specify the need for continual improvements to the quality management system not just sporadic quality campaigns.

Top Management shall ensure that the quality policy includes a commitment to comply with requirements and continually improve the effectiveness of the quality management system. 5.3 The organization shall continually improve the effectiveness of the quality management system through the use of the quality policy, quality objectives, audit results, analysis of data, corrective and preventive actions and management review. ISO 9001: 2000 8.5 ISO 9001: 2000

ISO 9001:2000 specifies requirements for a quality management system where an organization: Needs to demonstrate its ability to consistently provide product that meets customer and applicable regulatory requirements, and Aims to enhance customer satisfaction through the effective application of the system, including processes for continual improvement of the system and the assurance of conformity to customer and applicable regulatory requirements.

3.5 ISO 9004 Quality management systems - Guidance for performance improvement ISO 9004:2000, Quality Management Systems - Guidelines for Performance Improvement The 2000 version of the ISO 9000 group of standards establishes a management system model that is intended to continually improve customer

satisfaction and the effectiveness of the management system. ISO 9004 provides guidance on the overall aspect of a quality management system to improve the organizations quality performance. The ISO 9004:2000 manual serves as a link between the ISO 9001:2000 standard and TQM. ISO 9004 is a much broader approach to the issues of TQM than ISO 9001 alone. All your specific objectives related to overall performance and efficiency are included. ISO 9004 should not be viewed as a requirements document, but rather a guidance document for companies wishing to move beyond the requirements of ISO 9001 and implement a comprehensive quality system. ISO 9004 as the Quality Management System Guidance standard is intended to adopt a broader view of quality management in pursuit of operational improvement and benefits to interested or involved parties in your business activities. This may include your employees, owners, suppliers and the society in general. ISO 9001:2000 and ISO 9004:2000 are harmonized in structure and terminology to assist you in going back and forth from one to the other. Both standards apply a process approach. Processes consist of one or more linked activities that require resources and effective management to achieve the predetermined output. The output of one process may directly form the input to the next process, and the final product is often the result of a network of processes. The nature of your business and your specific demands will determine how you apply the standards to achieve your objectives. The ISO 9004:2000 manual consists of guidance and recommendations, which are not intended for certification, regulatory or contractual use, or as a guide to the implementation of ISO 9001.

4. Quality management system guidelines 4.1. Use of quality management principles Customer focused Organisation Leadership Involvement of people Process approach System approach to management Continual improvement Factual approach to decision making Mutually beneficial supplier relationships 4.2. Managing systems and processes 4.3. Evaluation of the organizations progression in performance improvement

5. Management responsibility 5.1. General guidance 5.2. Interested party needs and expectations 5.3 Legal requirements 5.4 Policy 5.5 Planning 5.6 Quality management system 5.7 Management review

6. Resource management 6.1 General guidance 6.2 People 6.3 Information 6.4 Infrastructure 6.5 Work environment 6.6 Suppliers and partnerships 6.7 Natural resources 6.8 Finance 7. Product and/or service realization 7.1 General guidance 7.2 Interested party related processes 7.3. Design and development 7.4 Purchasing 7.5 Production and service operations 7.6 Control of measuring and monitoring devices

8. Measurement, analysis and improvement 8.1 General guidance 8.2 Measurement and monitoring

8.3 Control of nonconformity 8.4 Analysis of data for improvement 8.5 Improvement

3.6 Quality management principles The eight quality management principles are defined in ISO 9000:2000, Quality management systems Fundamentals and vocabulary, and in ISO 9004:2000, Quality management systems Guidelines for performance improvements.

Principle 1 Customer focus Principle 2 Leadership Principle 3 Involvement of people Principle 4 Process approach Principle 5 System approach to management Principle 6 Continual improvement Principle 7 Factual approach to decision making Principle 8 Mutually beneficial supplier relationships

Principle 1 Customer focus Organizations depend on their customers and therefore should understand current and future customer needs, should meet customer requirements and strive to exceed customer expectations.

Key benefits: Increased revenue and market share obtained through flexible and fast responses to market opportunities. Increased effectiveness in the use of the organization's resources to enhance customer satisfaction. Improved customer loyalty leading to repeat business.

Applying the principle of customer focus typically leads to: Researching and understanding customer needs and expectations. Ensuring that the objectives of the organization are linked to customer needs and expectations. Communicating customer needs and expectations throughout the organization. Measuring customer satisfaction and acting on the results. Systematically managing customer relationships. Ensuring a balanced approach between satisfying customers and other interested parties (such as owners, employees, suppliers, financiers, local communities and society as a whole)

Principle 2 Leadership Leaders establish unity of purpose and direction of the organization. They should create and maintain the internal environment in which people can become fully involved in achieving the organization's objectives.

Key benefits: People will understand and be motivated towards the organization's goals and objectives. Activities are evaluated, aligned and implemented in a unified way. Miscommunication between levels of an organization will be minimized.

Applying the principle of leadership typically leads to: Considering the needs of all interested parties including customers, owners, employees, suppliers, financiers, local communities and society as a whole. Establishing a clear vision of the organization's future. Setting challenging goals and targets. Creating and sustaining shared values, fairness and ethical role models at all levels of the organization. Establishing trust and eliminating fear. Providing people with the required resources, training and freedom to act with responsibility and accountability. Inspiring, encouraging and recognizing people's contributions.

Principle 3 Involvement of people People at all levels are the essence of an organization and their full involvement enables their abilities to be used for the organization's benefit.

Key benefits: Motivated, committed and involved people within the organization. Innovation and creativity in furthering the organization's objectives. People being accountable for their own performance. People eager to participate in and contribute to continual improvement.

Applying the principle of involvement of people typically leads to: People understanding the importance of their contribution and role in the organization. People identifying constraints to their performance. People accepting ownership of problems and their responsibility for solving them. People evaluating their performance against their personal goals and objectives. People actively seeking opportunities to enhance their competence, knowledge and experience. People freely sharing knowledge and experience. People openly discussing problems and issues.

Principle 4 Process approach A desired result is achieved more efficiently when activities and related resources are managed as a process. Key benefits: Lower costs and shorter cycle times through effective use of resources. Improved, consistent and predictable results. Focused and prioritized improvement opportunities. Applying the principle of process approach typically leads to: Systematically defining the activities necessary to obtain a desired result. Establishing clear responsibility and accountability for managing key activities. Analysing and measuring of the capability of key activities. Identifying the interfaces of key activities within and between the functions of the organization. Focusing on the factors such as resources, methods, and materials that will improve key activities of the organization. Evaluating risks, consequences and impacts of activities on customers, suppliers and other interested parties.

Principle 5 System approach to management Identifying, understanding and managing interrelated processes as a system contributes to the organization's effectiveness and efficiency in achieving its objectives.

Key benefits: Integration and alignment of the processes that will best achieve the desired results. Ability to focus effort on the key processes. Providing confidence to interested parties as to the consistency, effectiveness and efficiency of the organization.

Applying the principle of system approach to management typically leads to: Structuring a system to achieve the organization's objectives in the most effective and efficient way. Understanding the interdependencies between the processes of the system. Structured approaches that harmonize and integrate processes. Providing a better understanding of the roles and responsibilities necessary for achieving common objectives and thereby reducing crossfunctional barriers. Understanding organizational capabilities and establishing resource constraints prior to action. Targeting and defining how specific activities within a system should operate. Continually improving the system through measurement and evaluation.

Principle 6 Continual improvement Continual improvement of the organization's overall performance should be a permanent objective of the organization.

Key benefits: Performance advantage through improved organizational capabilities. Alignment of improvement activities at all levels to an organization's strategic intent. Flexibility to react quickly to opportunities. Applying the principle of continual improvement typically leads to: Employing a consistent organization-wide approach to continual improvement of the organizations performance. Providing people with training in the methods and tools of continual improvement. Making continual improvement of products, processes and systems an objective for every individual in the organization. Establishing goals to guide, and measures to track, continual improvement. Recognizing and acknowledging improvements.

Principle 7 Factual approach to decision making Effective decisions are based on the analysis of data and information Key benefits: Informed decisions. An increased ability to demonstrate the effectiveness of past decisions through reference to factual records. Increased ability to review, challenge and change opinions and decisions.

Applying the principle of factual approach to decision making typically leads to: Ensuring that data and information are sufficiently accurate and reliable. Making data accessible to those who need it. Analyzing data and information using valid methods. Making decisions and taking action based on factual analysis, balanced with experience and intuition.

Principle 8 Mutually beneficial supplier relationships An organization and its suppliers are interdependent and a mutually beneficial relationship enhances the ability of both to create value Key benefits: Increased ability to create value for both parties. Flexibility and speed of joint responses to changing market or customer needs and expectations. Optimization of costs and resources.

Applying the principles of mutually beneficial supplier relationships typically leads to: Establishing relationships that balance short-term gains with long-term considerations. Pooling of expertise and resources with partners. Identifying and selecting key suppliers. Clear and open communication. Sharing information and future plans.

 Establishing joint development and improvement activities. Inspiring, encouraging and recognizing improvements and achievements by suppliers.

3.7 DESIGN AND DEVELOPMENT OF A QUALITY MANAGEMENT SYSTEM The Beginning What are Standards?

Standards are documented agreements containing technical specifications or other precise criteria. These are to be used consistently as rules, guidelines, or definitions of characteristics to ensure that materials, products, processes and services are fit for their purpose. International Standards contribute to making life simpler, as well as increasing the reliability and effectiveness of goods and services. Certain fundamental standards among firms are required to prevent conflict and duplication of effort. For example, the standards activities of government departments serve, in part, to meet national standards needs. Nevertheless, one specialized standardizing organization is needed to coordinate the diverse standardization activities of many different types of organizations and promote general acceptance of basic standards.

The ISO 9000 family is primarily concerned with quality management. The standardized definition of quality in ISO 9000 refers to those features of a product or service that are required by the customer. Quality management means what the organization does to ensure that its products conform to the customer's requirements. ISO 9000 concerns the way an organization goes about its work, and not directly the result of this work. In

other words, it concerns itself with processes, and not directly related with products. Nevertheless, the way in which the organization manages its processes will affect its final product. In the case of ISO 9000, it is going to affect whether or not everything has been done to ensure that the product meets the requirements of the customer. The ISO 9001 Quality Management System follows the process approach. The Standard has been designed and organized to follow a logical process flow, similar to how one would normally do something. The beginning steps are initiated with a plan, followed by carrying out the plan, then checking and analyzing what was done. Finally, an improvement would follow based on any weaknesses found. The ISO 9001 System Model (see Diagram 2) helps to explain this concept. A process is a series of actions that result in an outcome. When all processes are combined, a system has been developed that must be managed. The system must be managed in order to achieve the organizations goals.

Fig 3.7.1 PDCA Diagram 3.8 By implementing and maintaining an effective QMS, organizations will gain the following benefits:

 Effective management, control and improvement of your business performance Integration of people and processes to deliver business objectives Ensuring management is by process rather than by department A business that is built based on the needs of customers and stakeholders Enhanced supplier and customer confidence Ensuring change is brought about in a structured way Increased productivity by basing improvements on business results Help you make evaluations based on results and measurement Increased customer satisfaction The construction management literature discusses the benefits which companies derive from having their operations certified to the ISO 9000 series of quality management systems (QMS).

CHAPTER 4

4.1 OUTLINE METHODOLOGY: 1. CATEGORY OF CONSTRUCTION INDUSTRY ADOPTING ISO 9000 QUALITY MANAGEMENT SYSTEM AS PER THE TURNOVER: Small size contractor less than 5 crores Medium size contractor up to 500 crores turnover per annum Larger size contractor from 1000 to 5000 crores

2. COMPANY DATA Name and addresses of company from Hyderabad. Type of construction activity under taken building and structure, infrastructure, industrial sheds etc. light /medium/industrial Turnover for the past 3 years

3. RESPONDER DATA Name of person Department attached His role in QMS implementation and operation

4. INFORMATION ON QMS Quality policy When did the company got accredited in QMS Who is the accreditation and certifying agency for the company?

5 MAIN QUESTIONNAIRE METHODOLOGIES Design questionnaire format Estimation of sample size using software Selection of mode of sampling Each parameter has to be assigned for its grades The grades have to be derived from a parameter rating will be sent to the experts and the feedback will be done Those rating will be used for analysis Either ranking or index in method may be used for final assessment

CONCLUSION: A questionnaire-based survey of large construction companies from Hyderabad was conducted. It was found that construction firms benefit from QMS certification, and face no significant problems with it. Recommendations are made for enhancing the benefits of ISO 9000 and ensuring that it has a positive long-term impact on the development of construction companies operating in Hyderabad. The research paper gives an overview of the approaches to Quality Management Systems and focuses on ISO 9004-2000(20 points) as the basis for properly-applied Quality Management Systems practice. The final part of the paper discusses perception of small companies in comparison to large companies attempting to implement Quality Management systems. Continuous focus on Quality Management Systems is appropriate for companies that are or want to be international. The perception of effectiveness of implementing Quality Management Systems as per views of HR & Quality Representatives. Where Quality Management Systems fails; more tips of do's and don'ts when trying to implement Quality Management Systems. Research addresses nonconformity identification (including customer complaints) cause determination, action to prevent recurrence, identifying and implementing the corrective action, recording results, determining if the corrective action was implemented and effective in resolving the nonconformities.

Responses indicate that the areas where the construction companies were more effective in implementing the quality management systems were

1. Corrective action & Improvement 96.25

(evaluates the

significance of problems affecting quality in terms of their potential impact on such aspects as operating costs, costs of nonconformity, performance, dependability, safety and customer satisfaction.) 2. Documentation 92.50 3. Managing systems and processes 92.50 (a desired result is achieved more efficiently when related resources and activities are managed as a process) 4. Management responsibility-General guidance 90.00 (i.e.,Top

management demonstrations towards its leadership, commitment and involvement)

Following were the areas that needed improvement 1. Planning and Resource Management 87.50 2. People 87.50

The organization should: 2.1 Gather the opinion of its people regarding the manner in which the organization satisfies their needs and expectations, 2.2 Assess individual and collective performances and their contribution to organizational results. 3. Work environment 87.50 4. Control of measuring and monitoring devices 87.50 5. Quality policy 85.00 6. Measurement and monitoring 85.00 (methods are needed for

identification of areas for improvement of the overall efficiency and effectiveness of the quality management system. Examples of self-assessment methods include, internal audits, financial approaches, self-assessment models.)

7. Management review 85.00 The management shall review & evaluate 7.1 The quality management system to ensure its continuing suitability, adequacy and effectiveness. 7.2 The need for changes to the organizations quality management system, including policy and objectives. Following were the areas where the companies were lacking in effectiveness as per the current performance status. 1. Design and development 84.17 2. Information 82.50 The organization shall determine the information necessary for control of processes and to ensure conformity of product and/or service. System

level procedures for managing information shall ensure access to and protection of information. 3. Control of nonconformity 82.50 All people within the organization, particularly those engaged in monitoring of process activities and process output verification, should have the authority to report nonconformities at any stage of the processes to initiate prompt corrective action Authority for reaction to nonconformities should be defined to maintain the achievement of product and/or service requirements. 4. Responsibility, authority and communication 81.25 Functions related to the quality management system should be clearly established within the overall organizational structure, specifically those activities related to fulfillment of the quality policy and objectives. The lines of authority, reporting and communication should be defined. The communication of quality requirements, objectives and achievements is the responsibility of management. Tools for communication may include: 4.1 Team briefings, 4.2 Visual management activities, 4.3 Notice-boards, 4.4 Audio-visual and electronic media.

5. Needs and expectations of interested parties 81.25 The principal interested parties usually include:

5.1Customers and end users, 5.2People in the organization, 5.3Owners and/or investors, 5.4Suppliers and partners, 5.5Society - in the terms of the community and the public who are affected by the organization. They should understand current and future customer needs and strive to exceed customer expectations. Customers and end users are concerned with conformity, dependability, availability, delivery, after sale service and cost of the product and/or service they receive.

6. Objective 80.00 Quality objectives should be established to realize the organizations quality policy across the whole organization.

7. Suppliers and partnerships 71.67 All organizations can benefit from establishing mutually beneficial relationships with suppliers and partners. Alliances and partnerships may be established to promote and facilitate clear and open communication and improve creation of value. The number of suppliers should be optimised so that such relationships can be properly managed and sustained. There are various opportunities for organizations to increase value through working with their suppliers and partners. The recommendations arising from this research fall into two categories. The first category relates to the need to increase the frequency of

conducting IQAs in order that there is adequate evidence of implementation of the QMS for the purpose of risk minimization, third party audits and compliance with contractual obligations. The second area is the need to train and educate staff to understand the role and contribution of the IQA to the overall QMS process. SUGGESTIONS: The failure of construction projects can be minimized if quality is closely scrutinized and controlled throughout the design and construction stages. A web-based quality management system could be an effective tool for gathering, filtering, managing, assessing, and sharing quality data at project and corporate levels. The aim of this study is to examine the potential for applying the web-based techniques to collect, manage, assess and distribute quality-related data A prototype system has been developed, and the results indicate that quality management data can be collected from various project participants to improve the transparency. Proposes that the improvement of an existing quality management system (QMS) through flexibility and innovation will increase product and service quality, which will in turn enhance and advance the organizations business objective Explores the segmentalist and integrative concepts within the context of construction firms. Findings from a research project suggest that these should be removed from or implemented into the organization where necessary. Believes that organizations must adopt the integrative approach which looks ahead into the challenges of the future rather than the segmentalist approach which is contented with past

accomplishments.

Suggests that a corporate renaissance must be created within the organization to take on these challenges and to implement change and innovation. It is therefore necessary to develop the humanistic factors and a participatory management environment. However, in so doing, the technical aspects are also of importance and should not be totally ignored. These are collectively the key elements to maintaining a quality management system effectively.

BIBLIOGRAPHY

1. ISO 9004: 2000 Quality improvement 2. Statistics for management-by Richard L.levin and David S.Rubin 3. Research methodology -by C.R. KOTHARiI 4.. Internet Management Systems Guidance for performance

ANNEXURE

QUESTIONAIRE

Organization

Date:

Instructions 1. Below regarding the implementing Systems in companies. 2. Questions are to companys level. Rating Performance Level 1 Never 2 Occasionally 3 Frequently 4 Always questionnaire is effectiveness in Quality Management construction to be ranked according present performance

How to do rating

S.No QUESTIONS Managing systems and processes a) Does management apply the process approach to achieve the effective and efficient control of processes, resulting in performance improvement?

Documentation

a) Are documents and records used to support effective and efficient operation of the processes of the organization?

Management responsibility-General guidance a) Does top management demonstrate leadership, commitment and involvement?

its

Needs and expectations of interested parties a) Does the organization identify customers needs and expectations on a continual base? b) Does the organization identify peoples need for recognition, work satisfaction, competence and personal development?

Quality policy Does the quality policy ensure that the need and expectations of customers and other interested parties are understood and consider the organizations vision of the future?

Objective a) Is the quality policy focused towards achieving the objectives of the Organisation?

Planning and Resource Management Does management ensure the availability of resources needed in a timely manner to meet the objectives? Does management plan, provide, control and monitor the financial resources necessary to maintain an effective and efficient quality management system and to ensure the achievement of the objectives of the organization?

Responsibility, authority and communication Does top management ensure that responsibilities are established and communicated to people in the organization? Do communicating quality requirements, objectives and accomplishments contribute to improvement of the organization?

Management review Does the management review activity evaluate information to improve the effectiveness and efficiency of the processes of the organization?

10

People a) Does management promote involvement and support of people for improvement of the effectiveness and efficiency of the organization? b) Does management ensure that the competence of people in the organization is adequate fort current and future needs?

11

Infrastructure Does management ensure that the infrastructure is appropriate for the achievement of the objectives of the organization? Does management consider environmental issues associated with the infrastructure?

12

Work environment a) Does management ensure that the environment promotes motivation, satisfaction, development and performance of people in the organization?

13

Information Does management ensure that appropriate information is easily available for fact based decision making?

14

Suppliers and partnerships a) Are the suppliers effectively evaluated based on quality parameters? b) Does management involve suppliers in the identification of purchasing needs and joint strategy development? c) Does management promote partnership arrangements with suppliers?

15

Design and development Has top management defined design and development processes to ensure they respond to the needs and executions of the organizations customer and other interested parties? Are design and development processes managed in practice, including the definition of design and development requirements and the achievement of planned outputs? Are activities such as design review, verification, and validation and configuration management considered in the design and development

processes?

16

Control of measuring and monitoring devices a) Does management control the measuring and monitoring devices to ensure that correct data are being obtained and used?

17

Measurement and monitoring a) Does the organization use self-assessment of the quality management system for improving the overall effectiveness and efficiently of the organization?

Control of nonconformity 18 a) Does the organization control process and product nonconformity? b) Does the organization analyze nonconformity for lessons learned and process and product improvement?

19

Analysis of data a) Does the organization analyze data to assess its performance and identify areas for improvement?

20

Corrective action & Improvement a) Does management use corrective action for evaluating and eliminating recorded problems affecting its performance? b) Does management ensure the use of systematic improvement methods and tools to improve the organizations performance?