Chapter 01

INTRODUCTION
1.1.

General :
In the pursuit of productivity improvement, it is important to ensure the quality of work

processes to enhance the overall reliability and stability of construction operations. There have been a
number of construction productivity improvement principles such as lean production, just-in-time _JIT_,
rapid machinery change overs, pull scheduling, last planner, etc.
Despite the successful applications, however, most of the results fell short of our expectations of
a quantitative and practical method or metrics for assessing the defect rates of construction operations.
In order to estimate the defect rates involved in construction operations in a more quantitative
and organized way, we applies the six sigma principle. The six sigma principle has been an effective
statistical-based methodology in measuring the defect rate in an attempt to maintain a high-standard
quality level, particularly in construction materials. This study focuses on the development of the
general methodology to apply the six sigma principles on construction operations rather than
construction materials in terms of the barometers to measure, evaluate ,and improve construction
performance.
This is also pursues process effectiveness differently from an existing efficiency-oriented
approach that is simply an average production divided by time or resources while disregarding the
variation of the production rate and resource usage.
They investigate the concept that the reduction of variability in view of process effectiveness
i.e., stable resource usage, reduced variation in cycle time, etc. will improve project performance
through such out puts as the drop of cycle time, enlargement of productivity, optimization of buffer size,
etc. Typically, project performance is measured after a project is completed so it might be difficult to
improve process effectiveness without a definite goal for performance improvement. In this sense, a
project manager must have a before-the-fact performance indicator to measure the project performance
of an on going project.
In this performance indicator is called six Sigma. Project managers can use it to establish an
explicit goal as well as to evaluate the level of project performance nearly perfectly.

To achieve its end, methodology requires several steps :

1) development of the six sigma principle strategy and procedure;
2) establishment of quantitative metrics based on the six sigma principle approach;

3) test of a series of case studies and process simulation analysis on six sigma principle applications to
verify the principle;
4) discussion of the simulation results; and
5) provision of a generalized guideline to expand the application of six sigma principle for performance
improvement. Among a variety of types of construction projects, this research is focused on a simple
and repetitive construction process as an exploratory application. The proposed principle is also
intended to be applicable to construction operations with more complex processes.

Chapter 02

LITERATURE REVIEW
2.1.

General :
Recently, many organizations have attempted to achieve customer satisfaction. One of the most

important aspects of customer satisfaction is achieved through a high quality product, which also means
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a low defect product. Traditionally, defects include products containing a flaw in the manufacturing
process, customer dissatisfaction in the service department, or documentation errorsin an office.
Lindermann et al. 2003stated that six sigma principle is a statistics-based methodology that relies on the
scientific method to make significant reductions in customer-defined defect rates in an effort to
eliminate defects from every product, process, and transaction.
The defect rate in construction processes is largely caused by un reliable workflow when sources
of process variability are involved_Tommelein 2000; Hopp and Spearman 2000; Howellet al. 2001;
Thomas et al. 2002_. The lean principle attempts to address the effect of variability, but not to eliminate
or reduce variability by removing the root causes of the whole _Abdelhamid2003_.
The six sigma principle can be represented on a normally distributed product quality distribution
curve. When the mean is located at the center of the normal distribution curve, the lower and upper
limits are six times the standard deviation sigma from the center line. In other words, the range of the
lower or upper limit defect is 6 sigma from the mean. Ultimately, it aims to keep the defect rates under
0.002 parts per million ppm 1/106
If the data set falls within 3 sigma from the mean as the upper and lower specification limits, it
represents a 2,700 ppm 0.27% defect rate that is considerably larger than 0.002 ppm. Specifically,
assuming that the ideal mean is moved up to 1.5 sigma, it adjusts the defect rate into 3.4 ppm within
the quality level of 6sigma. Motorola used it _3.4 ppm_ as the target level of the six sigma principle
movement Lindermann etc al. 2003.
It signifies only 3.4 defects/million parts or operations. Comparatively, this level is equivalent to
one misspelled word in all the books in a small library, while the current quality level, as an example of
4 sigma, represents approximately one misspelled word per every30 pages Breyfogle et al. 2001 . While
the 3.4 ppm defect rate is considered an inappropriate goal for construction operations, the fundamental
concept of taking the six sigma principles statistical definition associated with minimizing the defect
rates along with different sigma levels and the continuous pursuit of performance improvement can be a
drastic extension of the traditional approaches for achieving a high level of process quality.
Six sigma principle initiatives are implemented through a problem-solving framework such as
define-measure-analysis improvement-control DMAICHarry and Schroeder 2000;Ahn 2000.

It

emphasizes the identification and avoidance of variations. Moreover, six sigma principle underlines the
explicit recognition of the root causes of defects and statistical process control to sustain continuous
improvements Abdel amid 2003.

Each step includes the following concepts:

1. Define:-

what problem needs to be solved and what are the critical

customer

requirements and key factors affecting process output?

2. Measure:- what is the relevant data to the problem and what is the current performance
based on a sigma calculation?
3. Analyze:- when, where, and why do defects occur and what are the root causes?
4. Improve:- how can the problem be solved using alternatives derived in the analysis
phase?
5. Control:- how can sustainable quality improvements be made through the
institutionalization of the improved process?
In the construction industry, the use of the six sigma principle for performance assessments,
particularly aimed at high qualitya and variability control, first appeared in 2000. Buggie2000
introduced the six sigma principle as one of the approaches to augmenting productivity, which
concentrated on reducing cycle time and eliminating any defects or errors engaged in the processes.
Kroslid 2002explained how six sigma principle and lean principle can be combined and used in a
beneficial way to achieve outstanding performance.
He also demonstrated that the synergies and advantages for such a merger have been assessed as
strong. Abdelhamid 2003 also suggested a six sigma principle application and research opportunities to
reduce the variability in lean construction.
More recently, Cha and OConnor 2005described the six sigma principle as one of 44 state-ofthe-practice tools for value management applicable to a construction project, based on the identification
efforts conducted by the Construction Industry Institute CII project team 184.
However, best research studies have been limited to the description of the six sigma principle
and almost no project-oriented construction case study has been reported as a discipline to improve
construction performance, while maintaining a high quality of products. Further, current applications of
six sigma principle do not focus on construction operations, but rather on construction materials, safety,
or health.
2.2. About Sigma :
Sigma is a Greek symbol represented by "".
The term sigma is used to designate the distribution or spread about the mean (average) of any process
or procedure.
For a process, the sigma capability (z-value) is a metric that indicates how well that process is
performing.
The higher the sigma capability, the better. Sigma capability measures the capability of the process to
produce defect-free outputs.
A defect is anything that results in customer dissatisfaction.
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Six Sigma is a methodology that provides businesses with the tools to improve the capability of their
business processes.
This increase in performance and decrease in process variation leads to defect reduction and vast
improvement in profits, employee morale and quality of product.

2.3. TECHNICAL IMPLICATION OF SIGMA

Chapter 03

METHODOLOGY
7

3.1. General :
Six Sigma is a rigorous and a systematic methodology that utilizes information (management by
facts) and statistical analysis to measure and improve a company's operational performance, practices
and systems by identifying and preventing 'defects' in manufacturing and service-related processes in
The goal of Six Sigma is to increase profits by eliminating variability, defects and waste that
undermine customer loyalty.
When market fragmentation occurs, a previously uniform market divides into two or more
separate markets with different needs. This can open up new opportunities on the positive side and
erode brand loyalty on the negative side.
A situation in which there are many different types of customer for a particular product
or service or many different companies providing a particular product or service
3.2. SIX SIGMA IMPLEMENTATION PRINCIPLES :

In Terms Of Implementation, It Can Be Said That This is A Top-down Approach from Top
Manager to Entire Involved People.

Six Sigma Stresses The Importance Of People Involved, Their Role And Responsibilities In Any
Construction Project

Executive Leadership: This Encourages And Drives Force Behind The Scene To Adopt Six

Sigma In Organization Since The First Day

Master Black Belts: They Are The Six Sigma Project Managers And The Most Responsible
People For Fundamental Changes

Black Belts: The Black Belts Are The People Who Really Work. They Are The Ones, Apart
From Master Black Belts, Who Work Full-time On The Job. They Are The Key To The Whole
Projects, The True Leaders Of Six Sigma

3.3. SIX SIGMA METHODOLOGIES :

Six Sigma continuous improvement methodology which known as DMAIC (define, measure
,analyze, improve, control) aims to enhance the efficiency of the existing processes and increase
customer satisfaction through designed products and services.
DMAIC framework is integration of several techniques such as QFD (quality function deployment),
SPC (statistical quality control), DOE (design of experiments), and FMEA (failure mode and effects
analysis) ina logical direction.
8

This approach is more suitable when the current design of the products, services and processes are
correct and satisfactory regarding to the requirements, customers and business. This methodology offers
structured framework in following steps to establish systematic continuous improvement.
DMAIC [DUH-MAY-ICK]:

DEFINE
MEASURE
ANALYZE
IMPROVE
CONTROL

3.3.1. DEFINE:In terms of business and finance, company aims to reduce the costs and maximize financial benefits as
well as customer satisfaction to be back for further business, on the other hand customers wish to pay as
less as possible for on time delivery and high quality (with no defects)
By Considering These Requirements, The Main Goal Of Implementing Six Sigma Is To Manage
Resources Like :
Material
Time
Capital
Man-power
Efficiently And Effectively In Order To Reduce The Defects And Cost Of Construction Projects
In Construction We Already Know That Anything That Does Not Meet The Requirements Is
Come Under The Term Defect.
Note That, Late Delivery Of The Project Is Defined As A Significant Defect
In Order To Identify The Defects In A Construction Project, A Complete Structure Can Be
Studied And Tested Regarding Different Perspectives That Are:
Functional tests: water-tightness of the walls, windows, doors and any moisture area, appropriate
performance of the water piping, heating center and equipments, electrical equipments, air
conditions, isolation, kitchen equipments, and etc.
Functional tests: water-tightness of the walls, windows, doors and any moisture area, appropriate
performance of the water piping, heating center and equipments, electrical equipments, air
conditions, isolation, kitchen equipments, and etc.
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 Internal finishes: flawlessness of the walls, roofs, ceilings, doors, windows, and components in
different internal locations such as bedrooms, kitchen, toilets, bathrooms and etc.
External finishes: flawlessness of the walls, roofs, ceilings, doors, windows, and etc of the main
building as well as any other external area and facility such as parking, balcony, fences, and etc.
Besides, Since Six Sigma Is A Business Oriented Strategy And All Achievements State In
Financial Terms, It Is Required To Estimate The Investment And Expends Of Implementing Six
Sigma Principles, Determine The Expected Outcomes, And Approximate Its Profitability Earlier.
3.3.2. MEASURE: Measure, Second Stage Of DMAIC, Is For Having A Plan For Data Collection, Preparing A
Sufficient Data Sample And Preliminary Analysis.
In This Stage, Six Sigma Team Analyzes Current Performance Through Valid Data In Order To
Understand Improvement Opportunities. Following Are The Basic Steps For Measure:
Identify measurement and variation: Types, sources, causes and detailed impacts of variation on
process should be defined by the establishment of measurement.
Determine data type: Six Sigma team should define data types that will be collected. The main
focus is to decide what kind of data and knowledge required for process improvement.
Perform measurement system analysis: Graphical and baseline analysis should be performed
through MSA (Measurement System Analysis) in order to be sure that data collection plan works
accurately and collected data are confidential.
Collect the data: Collected data should be proper and provide enough information to Six Sigma
team in order to determine root causes of the problem.
3.3.3. ANALYZE: In This Phase The Main Task Is To Identify When, Where And Why The Defects Occur In The
Construction Project And Then Solved By Finding Root Cause.
In Order To Run An Appropriate Investigation And Analysis Of Root Causes Of Problems, It Is
Advantageous To Study An Overall Project In Three Different Sections Discussed Next.
Pre-construction Activities And Processes
10

 Construction Work Flow And Involved Processes And Activities

Quality Of Material, Level Of Equipment, And Competency Of Team Members.
Construction Project Demands Heavy Reliance On Different Processes And Activities And Their
Interconnection, Therefore It Is Necessary To Consider The Coordination Of These Processes
And Activities And Their Interface To Meet The Success.
From The CTQs Perspective, The First Priority In This Phase Is To Identify The Factors Which
Influence The CTQs, Classify Those Factors And Determine The Critical Influence Factors.

Further More It Should Be Considered That A Cause-and-effect Analysis In Cooperation With

Engineers, Project Supervisors, Team Members, And Using Their Knowledge, Information And
Experience Is Able To Investigate The Critical Influence Factors.
For example the assembly team is a customer15of logistics team, so in case that the logistics
team is not fully aware of the needs of the assembly team and do not consider their needs,
assembly process might face with considerable problems such as receiving damaged material or
with delay.
Six Sigma Offers Different Tools Such As Simulation Test, What If Analysis, And Etc For
Ctqs.
Identification Of Critical Factors And The Consequent Determination Of The Root Causes Of
Problems Are Achieved Through The Comprehensive Analysis Of The Project

The Construction Process Is An Outdoor Activity That Is Affected By External Conditions And
Repetitive Than Manufacturing Process
Besides All Typical Influence Factors Such As Site Access, Equipment, Logistics, Resources,
Team Members Skill And Competence, It Should Be Noted That Natural Phenomena Have
Considerable Effects On The Progress Of The Construction Projects So It Must Be Kept In
Mind.
3.3.4. IMPROVE: In This Phase Six Sigma Project Aims To Eliminate The Identified Defects Through The
Knowledge Derived From Analyze Phase. For Example
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 Upgrading The Equipment's

Purchasing The Material Of Higher Quality
Improving The Competency Of The Staff Etc.,
But It Is Absolutely Imperative To Consider Its Financial Benefits As Well.
It Is Necessary To Implement An Alternative Action That Provides Financial Benefits And
Business Development Apart From Improving The Performance And Sigma Level As High As
Possible.
Optimization Methods Lead The Project To Maximize Profits In An Appropriate Performance
Level. For Instance, In Case Improvement From Level 5 To 6 Demands Numerous Activities
And Vast Investments Whereas Business Stands At Its Former Level, The Improvement Is Not
Reasonable And Sensible And Operates Ineffectively. Hence, This Matter Is Of Paramount
Importance To Maintain Stable At The Optimal Point Of Improvement.
3.3.5. CONTROL: The Control Phase Is Responsible To Ensure The Sustainability And Development Of The
Improvements That Have Been Obtained Through The Implementation Of Six Sigma Principles.
It Is Requisite To Collect Data Continuously During The Project And Measure The Performance,
Continuous Review Of The Project.
Monitoring The Improvements Provide The Following Advantages And Opportunities For The
Six Sigma Project:
i) Leads To Proper Evaluation Of Improvement To Ensure That Estimated Improvements Have
Been Attained.
ii) Leads To Prevention Of Reversion To The Former Failures.
iii) Explore The Potential Area For Further Improvements And Continual Perfection

Chapter 04

DISCUSSION
12

4.1.

General :

A performance measurement system should be developed prior to the six sigma principle deployment.
The key activities of the performance measurement system are:
1) setting up a companywide quality control strategy and policies;
2) arranging performance indicators based on that strategy.
In order to set up performance indicators, it is necessary to identify activities andkey factors that are
critical to the success of the project at each Construction phase.
Toward this end, critical total quality _CTQ_ is the most closely related element to a process
performance indicator.
For example, if productivity is a performance indicator for a certain project, the reliability of the
resource flow can be assumed to be a main CTQ because it has the closest association with productivity.
In implementing six sigma principle, CTQ is a main input variable, particularly in the phases of
DMAIC.
Through defining and measuring the status of various CTQs such as variations in cycle time, idle, or
waiting time of labor/equipment, excess or shortage of inventory _buffer size_, and percent of earned
value achieved, we can evaluate the level of sigma in the work process and identify the root causes of
defects that deteriorate the work performance.
To compare the quality level of the work process associated with CTO, a six sigma principle metric
should be clarified. Of the several available six sigma principle metrics, this paper adopts the process
capability index , because it provides upper and lower boundaries based on the companys quality
control strategy and policies.
According to a HN _2000_, sigma level is obtained by CP that is described by the following expression
on the assumption that quantitative data for the CTQ evaluation can be collected continuously without
any serious bias.
If only the upper bound is given for the purpose of controlling the defect rate of CTQ, we can calculate
the CP by setting up a goal for the allowable performance level _so-called, upper specification level and
then by using the mean and standard deviation from the collected data.
Based on the estimated CP, we can evaluate the sigma level of the current CTQ of a specified work
process CP process capability index = USL MEAN
3 x STDEV_1_
If only USL given_ _
sigma level_ = 3 X CP _2_
where:

USL=upper specification limit.

MEAN=mean of the data.
13

STDEV=standard deviation of the data.

As an example, suppose that the cycle time for earthmoving is highly variable due to various external
factors such as traffic and access road conditions. The mean and standard deviation value are estimated
as 30 and 20 min, respectively. In this case, the CTQ is defined as the variation in cycle time.
The allowable performance level for the cycle time variation is arranged to a maximum of 25 min from
the mean time to maintain quality workflow. Based on these assumptions, the current CP is measured
as 0.42 _=_5530_ / _3_20__. Accordingly, due to the fact that the current sigma level of CTQ is very
low __=3_0.42=1.26 sigma_, the next target should focus on how to improve the quality level of CTQ
to achieve a better work performance.

Chapter 05

CONCLUSION
The Idea Of Applying Six Sigma Principle On Construction Industry Theoretically And Explored
The Advantages Of DMAIC Procedure And Its Potential To Enhance The Quality Level And
Efficiency Of The Construction Projects
Moreover, The Flexibility Of DMAIC Framework In Construction Projects Has Been
Demonstrated And Recommended How To Implement Each Phase Considering The
Constructional Indices.
Six Sigma Is A Continual Improvement Method Which Offers A Systematic Strategy To Control
And Coordinate All Involved Processes In Any Construction Project, Effectively.

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