When researching the origin of QUALITY(
) it is evident that the topic has evolved rapidly from that of
the ancient craftsmen’s limited guarantee of “Let
the buyer be aware” to today where using statistical
analysis we typically predict defects per million.
As a result of increased mass production requiring consistent
quality in the last 80 years, various systems or methodologies
have been developed that encompass all spheres of the manufacturing
value chain. This ranges from business process re-engineering
to project management and the quality requirements of “the
product” being manufactured. This has brought its own acronyms
i.e. SPC, TQM, Six Sigma, CI, QMS, etc…
Regardless of the system used there are common concepts relating
1st QUALITY ASSURANCE (QA) means that
the product / solution should SPECIFY
some form of UP FRONT QUANTIFIED GUARANTEE.
2nd depending on the type of product “produced” it
is common to perform QUALITY CONTROL (QC)
AUDITS against the aforementioned specification criteria
by only checking CRITICAL CONTROL POINTS
or RANDOM SAMPLES.
TIME AND BUDGET MANAGEMENT
While not directly related to quality the concept of student syndrome
or PARKINSON’S LAW i.e. “Work
expands so as to fill the time available for its completion”
has a direct impact on quality and budget (TIME
= MONEY). In 1998 the Standish Group studied the traditional
rigid schedule project management method and found that typically
only 44% of projects finished on time
while most were completed at 222%
of the original planned duration, 189% of budgeted cost and
70% fell short of their planned scope.
Of the projects started 30% were cancelled
In 1997 E. M. Goldratt introduced Critical Chain Project Management
(CCPM) based on his Theory of Constraints (TOC) algorithms. This
places more emphasis on resources and the use of buffers. In their
analysis of 78 CCPM case studies Mabin & Balderstone found
a 69% reduction in lead time,
50% reduction in inventory levels and 68%
increase in revenue.
HOW DOES AI2SA
ADD VALUE BY EXPLOITING QUALITY AS THE CATALYST?
developing SPECIFICATIONS that encompass
both scope and required QUALITY prior
to the award of “systems” projects, and subsequently
measuring conformance to these specifications during execution
and using complience as a requirement for payment.
Traditionally payment would be based on the completion
of milestones (Design Specification, Factory Acceptance Test etc.)
with no cognisance taken of the requirements specified in the
Quality Control Plan (QCP).
Traditionally a client would witness a test without the required
test criteria and procedures been specified leaving both parties
exposed to risks such as technical incorrectness, variation orders
or delayed time lines.
From the graph it is evident that the most value is added due
to upfront specification and these translate to short term savings
such as a possible reduction in the contracted price. The long
term value is derived by using quality to drive both progress
and performance. If there is no base line specification the project
manager has a frustrating task ahead. By focusing on the “GOLDEN
THREAD” and implementing the correct hold points
for payment risk is mitigated and results improve significantly
and client satisfaction is significantly improved.
It is the mission of AI2SA to be responsible for “Optimally
Scoping and Managing Industrial Systems Projects”
for strategic clients who may lack the capacity to perform this
internally as a result of skill shortages or due to significant
We are vendor independent insuring objectivity and all our experience
is based on 1st principles ensuring that best practices are adhered
to. We have case studies proving how clients can save between
10% and 25%
on projects using our methodologies, quality systems and templates.
For more information please feel free to phone the author on
+27 (0) 82 559-7437 / +27 (0) 12 993-3637 or mail him at firstname.lastname@example.org,
feel free to visit our web site at www.ai2sa.co.za
for information on the host of strategic services we offer industry.