TQM IMPLEMENTAION FOR
CAPITAL PROJECTS
OUTLINE
• Introduction
• Objective & Abstract
• Literature Research Analysis
• Refinery Project Study
• TQM Implementations Strategy for
Capital Projects
• Conclusion
TQM IMPLEMENTAION FOR
CAPITAL PROJECTS
• Introduction:
Many companies in the private sector
of the engineering and construction
(E&C) industry have developed models
to implement TQM.
• These
models
have
achieved
improvements in work processes,
teamwork, customer satisfaction, and
defect-free work for internal operations
TQM IMPLEMENTAION FOR
CAPITAL PROJECTS
• Objective:
To
propose
an
implementation
strategy to effectively apply TQM to
capital projects.
• Key components of the strategy are
derived from existing TQM models
and through a study of TQM applied
to a large refinery expansion project.
Literature Research Analysis:
Applicability of TQM Models to Capital
Projects:
• TQM models for the E&C industry were
developed in two phases.
Phase#1
Involved
adapting
manufacturing
industry TQM models based on the
works of Deming, Juran, and Crosby to
E&C applications.
Cont.
Phase#2
The E&C industry developed models
tailored to a company’s particular
needs.
Basic
principles
and
essential
elements of TQM were presented in
construction
terms
International
skills and technical aspects of
engineering and construction work
were also integrated into these
models
Literature Research Analysis:
• In an organizational environment:
• Managers
focus
on
long-term,
continuous business operations with
well-defined operating procedures.
• Managers are required to meet annual
performance objectives while working
with a relatively stable workforce.
•
Capital project environment:
Requires managers to plan, organize,
staff , allocate , direct, and control
company resources for a relatively
short-term objective
Literature Research Analysis:
• Because
of
these
differences,
company –level models must be
modified
or
new
approaches
developed to implement TQM at the
project level.
Literature Research Analysis:
• Frame Work of TQM Principles and
Concepts for Capital projects:
• E&C companies that have successfully
implemented TQM have centered on a
few key principles and concepts. They
are grouped into one of the following
five categories:
•
•
•
•
•
TQM deployment
Customer focus
Team approach
Work process improvement
Benchmarking and metrics
Literature Research Analysis
• Framework for project-management
approach:
• The proposed TQM implementation
strategy adopts four basic life-cycle
phases from an owner’s perspective.
Literature Research Analysis:
The phases are defined as follows :
(1) Concept feasibility phase
(2) Preliminary engineering phase
(3) Design/ Construction phase
(4) Start –Up Phase
Refinery Project Study
• Project Study Objectives and Approach:
A major expansion to a U.S. Gulf Coast
refinery was study focal point.
Objective:
(1) To observe how TQM was applied to
this project.
(2) To review existing TQM models.
Based on existing work and lessons
learned from the project study.
(3) to develop a comprehensive model to
apply TQM to future capital projects.
Refinery Project Study
• This model had three goals:
(1) To described a quality improvement
strategy for major capital projects.
(2) To guide project teams in the
application of TQM principles and
concepts to project work processes.
(3) To understand the link between team
building and quality improvement.
Refinery Project Study
• Gathering Data:
Project information gathering focused
on the extent TQM concepts and tools
were utilized, how TQM was applied,
and opportunities to improve the
application of TQM to future projects.
Questionnaires and interviews were the
data – collection instruments in
addition, input was provided directly by
project managers representing each
participant, a management consultant,
and TQM specialists.
Refinery Project Study
• Project study conclusion
Findings:
Indicate the TQM must be
integrated
with
a
projectmanagement approach and focus
on a few select improvement
areas that offer the most potential
benefit to the project.
Cont.
• The project –management
approach must be defined
and
understood
by
all
participants.
• Capturing lessons learned
regarding TQM and team
effectiveness is important to
future
formalization
and
improvement of the TQM
process
Refinery Project Study
• TQM should be deployed early in project
development and should be deployed in
stages.
• First, the foundation for the TQM effort
must be set.
• Next, those vital few areas for
improvement must be identified, a
project –specific deployment plan must
be designed.
Cont.
• The deployment plan must be
formalized with a specific process
improvement methodology for teams
to follow the deployment plan should
be
congruent
with
project
characteristics
such
as
size,
complexity,
and
contracting
approach.
Refinery Project Study
• Then, all major project participants must
be aligned with and committed to the
TQM approach as reflected in the
deployment plan.
• Finally, during project execution, the
plan must be initiated evaluated
overtime, and improved.
Refinery Project Study
• Study findings formed a
basis for the propose strategy to
implement TQM on future capital
projects.
• In addition, these findings aided
in defining a deployment process for the
implementation strategy.
TQM IMPLEMENTATIONS STRATEGY
FOR CAPITAL PROJECTS
The strategy must integrate
• Project Characteristics
• Project management approach
• TQM approach
• TQM concept & principles
TQM IMPLEMENTATIONS STRATEGY
FOR CAPITAL PROJECTS
• The proposed TQM implementation
strategy is as follow:
Stage 1- Establish project TQM
environment
Stage 2- Identify key project pursuits and
project TQM plan.
Stage 3- Deploy project TQM plan
Stage 4- Apply & improve TQM plan
Stage 1: Establish Project TQM
Environment
• It begins during the concept feasibility
phase.
• During this phase the owner projectmanagement team has an opportunity to
significantly influence the ultimate
direction of the TQM effort.
• This is accomplished by identifying the
project vision, mission, and TQM goals
that are aligned with key project
objectives and priorities and with TQM
principles and concepts.
Stage 1: Establish Project TQM
Environment
• Purpose:
To establish the foundation for the
project’s TQM effort.
• Output:
includes: management commitment to
quality
concepts
and
process
improvement; project vision statement;
preliminary TQM support structure
consisting of individual and team roles
and responsibilities; proposed project
recognition and rewards scheme; and
suggested project team building and
training requirements.
Stage 2: Identify Key Project
Pursuits and Project TQM Plan
• It begins during the project’s
concept feasibility phase. The
primary participant is the owner’s
project-management team.
• Purpose
To help the owner’s project team
focus the TQM effort on key
project pursuits.
Key project pursuits are based on
critical success factors and
comprise three elements: (1)
priority issues; (2) critical work
processes; and (3) special valueadded projects.
Cont.
• Output:
The
preliminary
deployment.
plan
for
TQM
• The primary purpose of the preliminary
TQM deployment plan is to provide a
“path-forward” road map for the
project’s TQM effort.
Stage 3: Deploy Project TQM Plan
• Typically begins during the project’s
preliminary engineering phase but could
commence earlier if a designer
performs concept feasibility studies.
• Purpose:
Aligning on the project vision and
mission and customer needs and
expectations.
Cont.
• Output
is the project’s formal TQM deployment
plan.
• All participants on the project team
should be in alignment and agreement
with this plan.
• This plan provides a detailed road map
for applying TQM and then improving
the TQM effort during the design and
construction and start-up phase.
Stage 4: Apply and Improve
Project TQM Plan
• The project-management team
applies
the
concepts
of
continuous improvement to the
project by deploying the TQM
plan.
• It is primarily performed during
the design and construction
phase.
•
During stage 4 the projectmanagement team is applying and
improving the deployment plan.
CONCLUSION
• The E & C industry is attempting to
extend TQM from internal applications
to capital projects.
• Current TQM models often fail to
address the specific TQM needs of
capital projects.
• This paper presents an implementation
strategy that the E & C industry can
use to help apply the TQM approach to
capital projects.
Cont.
• The adoption of this strategy to
formulate
a
project
TQM
implementation of critical will lead to
the continuous improvement of critical
project processes.
• As a result, project participants can
expect more cost-effective projects and
increased satisfaction.