CHAPTER 6

TOTAL QUALITY
MANAGEMENT IN
CONSTRUCTION
PROJECT
DO YOU REMEMBER??
…NO QUALITY - NO SUSTAINABLE!

Our focus!!

Traditional Project’s Critical Components (time, cost, & quality); in

relation with sustainable construction concept
TOTAL QUALITY MANAGEMENT

• Everyone and everything that we do

• Giving the customer / clients what they

expect all the time

• The way we act and operate our

policies 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 organisation’s 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
focus work
TQM

Continuous Process
improvement focus
SUPPORTING ELEMENTS
The five 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

TQM
Leadership 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 internet and external
partnership for mutual benefits.
TQM SUPPORTING ELEMENTS
4. Communication:
Communications in a quality improvement may need to be
addressed differently to communicate to all employees a
sincere commitment to change.

5. 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

 Subcontractor’s 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
 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. Refer to SLIDE A…

o 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.
Refer to SLIDE B…
SLIDE A
 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.
SLIDE A (CONT.)
 What are the techniques?
SLIDE B
 How to track the project cost?
1. Bar Chart
2. Critical Path Method (CPM)
 We have already covered both methods!! Chapter
5, remember?
 But you can always opt for the software version
 (since you have learned their underlying
concept..)
COST-CONTROL TECHNIQUES CONTINUE…
 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
Fee/ profit &
OF PROJECT
contingencies COST 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
work and Inspection of
cost works
performance
COST
CONTROL &
MONITORING

Record The project

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. It’s 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 can…ERIC

 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. Worker’s compensation and employer’s

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 owner’s and contractor’s protective insurance,
products, and completed operations, blanket contractual,
personal injury, and frequently cover the liability arising
from the insured’s 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. Builder’s 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 contractor’s 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
 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
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 procurement—the 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 client’s 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 of Supplier and
Procurement
purchasing contractor/subcont
planning
requirement ractor evaluation
Procurement

Inspection Administration Award contract

process

Delivery Improvement
PROCUREMENT MANAGEMENT
 Procurement planning
- A process of identifying the project 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 don’t 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
manpower aggregation
this
THIS IS ‘HOW??’.. (CONT.)
2. Resource Levelling:
 Resource-driven (limitation of manpower / manpower is
fixed)
 So…, you don’t 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
 Example 1
Create the critical network diagram and identify it’s critical activities
B
5

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

D
4
 RESOURCE LEVELINGExample 1
Step 1. Draw the bar chart
Step 2: Allocate all the resources
on the bar chart,

Step 3: Leveled the resource on

float

Yes! These project can be complete

by
4 workers
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 35 35 35 -30 -30 -30

50 50
40 40
Resource/ C 35
labor 30 E 30
20 B D 20 B C D
10 F 10 F
A A E days
0 G 0 G
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 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 sufficiently high
quality, and negotiate a purchase price that meets the
company’s budget as identified by finance.
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 people’s 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 earn from mistakes.
THANK YOU