Six Sigma and Quality Improvement in EPC (Engineering, Procurement and Construction)
It is more difficult for construction companies to compete globally due to aggressive competition and higher demand for quality at lower cost. To utilize limited resources, each project must be organized and have control measures in place so as to minimize defects and maximize output while keeping quality under control.
EPC is a form of contract where the contractor takes responsibility for almost every process. In the event of a price fluctuation, both parties are at risk, especially the contractor. EPC can be a complex system due to many players (subcontractors, designers and technicians and M&E consultants) and variations due to global position. The main factors that affect the efficiency of EPC are;
• Price fluctuations
• Differences in material and labor costs depending on project location
Six Sigma improves quality in EPC by improving customer satisfaction, reducing defects, reducing response time between players, and managing labor and resources.
The majority of construction companies have problems with procurement and a lot of time and resources are spent on deciding how to deliver, when to deliver and which procurement method should be used. The Six Sigma concept provides a way to identify key problems and defects in all processes involved in a project, measure defects and quality, create room for improvement, and analyze products to meet quality standards. All this is done in order to make the customer happy.
The Six Sigma concept has tools that further define the process. There are also strategies such as DMAIC (Define, Measure, Analyze, Improve and Control), DFSS (Design for SIX Sigma) and DMADV (Define, Measure, Analyze, Design and Verify). These tools and strategies contribute significantly to improving the quality and efficiency of every process in a given project.
DMAIC works on the principle of determining the scope, budget, duration of the goal and possible problems and solutions of the project. They are then documented and used as a reference during the project implementation process. DFSS changes the way the product is seen by redesigning the entire process. The goal is to determine the customer’s needs and produce accordingly.
Six Sigma distinguishes itself from other concepts by not only maintaining a standard but also by continuously improving the quality of the product (material or service). This is done by measuring the quality and analyzing the recorded deviation in order to exercise more effective control measures.
#Sigma #Quality #Improvement #EPC #Engineering #Procurement #Construction