CHANGE IN

FLOW
Modified PDCA cycle becomes
centerpiece of engineering
firm’s quality culture
In 50 Words
Or Less
• To suit its own quality
processes, an engineer-
ing firm modified the
classic plan-do-check-
by Raj C. Patel
act cycle.
• The planning, executing,
evaluating and improv-
ing (PEEI) cycle lets
Ambitech better handle
complex projects for
clients in industries
such as oil refinery,
petrochemical, chemical
and food.
• The cycle has become
the centerpiece of Am-
bitech’s quality culture.
 PROCESS IMPROVEMENT

“THE CUSTOMER DESERVES to receive

exactly what we have promised to produce,” Philip B.
Crosby wrote in his classic work, Quality is Free.1 But
how do organizations ensure this happens?
Most customers want the highest quality services at
the lowest possible price. Some customers treat service
organizations, such as engineering firms, as commodi-
ties. To provide customers the most bang for their buck
and exceed customer expectations, firms must closely
evaluate each customer’s project to customize the execu-
tion of the services.

June 2015 • QP 39
 That’s where quality comes into play. There are
many definitions of the word quality. A simple defini-
tion is conformance to requirements. Figure 1 shows
the Deming cycle, which defines quality improvement
with the plan-do-check-act (PDCA) cycle.2
Ambitech Engineering Corp., an international en-
gineering firm headquartered in Downers Grove, IL,
took quality and PDCA one step further. To suit its own
quality process and better handle complex projects for
clients such as ExxonMobil, Citgo, British Petroleum,
Universal Oil Products and Valero, Ambitech adjusted
the classic PDCA cycle. Figure 2 shows the modified
process, which consists of planning, executing, evalu-
ating and improving (PEEI) phases. The project execu-
tion elements associated with the PEEI cycle are fur-
ther defined in Figure 3.
Planning
Projects are completed efficiently with high quality
when the project scope is defined, a reasonable sched-
ule is developed and the project is funded appropri-
ately. This can be accomplished by front-end loading
(FEL)—or pre-project planning—for a complex and
sizable project.
Depending on the project’s complexity and the cli-
ent’s corporate funding approval requirements, FEL
documents and cost estimates can be developed to
achieve expected accuracy levels (for example, 25% or
10%). The accuracy of cost estimates, for example, influ-
ences the contingency required for the project to man-
age unknowns not identified during the project’s defini-
tion stage and potential design development changes.
Taking time to review and define the project’s scope,
schedule and budget—even without the FEL efforts—
helps minimize scope creep and schedule delays that
PDCA cycle / FIGURE 1 PEEI cycle / FIGURE 2
Plan Planning
Act Do Improving Executing
Check Evaluating
40 QP • www.qualityprogress.com
can lead to cost overruns. That, however, doesn’t mean
you must spend a great deal of time and effort to define
the project.
The time and effort required at the planning stage
depends on the level of accuracy desired of the cost
estimate. Well-established guidelines exist for the per-
centage of engineering efforts required for the targeted
accuracy of cost estimates.3
Most large corporations have experienced engineer-
ing personnel who help define a project and understand
the balance required between cost and schedule. Small-
er organizations—with limited or no engineering staff—
may not be well equipped to adequately define a proj-
ect. Starting the project immediately with aggressive
resource loading to show the client you’re responsive
to an aggressive completion date could end up requiring
more time and money if the project is poorly defined.
An engineering firm is responsible for helping the
client define the project and establish a realistic and
achievable end date. This requires thinking through
key project milestones—engineering, procurement
and construction—with their predecessors and suc-
cessors to understand whether the client-established
end date can be achieved. This step is crucial to map-
ping the execution strategy and discussing pros and
cons of an aggressive end date with a client.
Considering the client’s input, project management
at Ambitech further refines project scope and develops
a high-level schedule at an early stage to establish end-
date expectations. Scope and schedule commitments
are discussed in detail in a project-defining document
that’s reviewed and approved by the client. A typical
project-defining document covers the topics shown in
Figure 4 (p. 42).
This document becomes the basis for the engi-
neering agreement. During this stage,
project management also focuses on
understanding client expectations and
preferences so they can be woven into
the design.
The planning continues throughout
the project cycle and must be adjusted as
the scope changes and delays occur that
are beyond project management’s con-
trol. Project management plays a crucial
part at the planning stage and through-
out the project duration for a successful
project execution.

Elements of PEEI cycle / FIGURE 3
Participation by quality function
• Identify areas for improvement and ways
to improve—from lessons learned, quality
audits and client feedback.
• Communicate to management.
• Follow up to ensure implementation.
• Evaluate improvement benefits.
Improving
Evaluating
Activities performed by quality function
• Lessons learned.
• Client feedback for quality survey.
• Review and update of corporate
procedures.
• Development of new corporate
procedures.
• Conducting of quality audit.
FEL = front-end loading
PEEI = planning, executing, evaluating and improving
KOM = kick-off meeting
RFI = request for information
Executing
The executing stage consists of engineering, checking,
procurement and construction. These steps must be
completed efficiently to ensure a project starts suc-
cessfully on time.
Engineering: Upon award of a new project, Am-
bitech’s project management fine-tunes the project-
defining document and develops a resource-loaded
schedule with the help of the cost control engineer,
who uses Primavera P6 scheduling software. Primav-
era P6 allows overlaying of all the projects managed
simultaneously at Ambitech, which helps in planning
for the required resources.
PROCESS IMPROVEMENT
• Define project scope.
• Create project-defining document for FEL or
engineering phase.
• Develop schedule.
• Create budget.
• Hold KOM—internal and external—with client.
• Refine project defining document and develop
budget and schedule for next phase.
Planning
Executing
• KOM, document distribution matrix, needs list.
• Weekly project status meeting.
• Deliverables development.
• Checking—self checking, independent
departmental checking, office check, field check.
• Design review.
• Department manager’s approval.
• Client approval.
• Issuance of drawings for bid, purchase and
construction.
• Construction—engineering support, construction
supervision and management, and RFI resolution.
• Check out and start up.
The schedule includes detailed engineering, pro-
curement and construction activities that are logically
tied to the preceding and succeeding activities. As-
signed task durations are based on the usually challeng-
ing but achievable availability of design information
and resources. Project management reviews the scope,
schedule, budget and client expectations with the proj-
ect team members at the project kick-off meeting.
It is crucial to monitor the design inputs, such as
the client’s information, vendor drawings and internal
engineering activities. Equally important to initial plan-
ning is updating the schedule to reflect the completion
percentage for activities and delays of information flow.
June 2015 • QP 41
 AMBITECH CULTURE
Naturally, the quality of services organizations such as Ambitech deliver to clients is most important. All
Ambitech employees take pride in delivering quality services, including engineering and design, procure-
ment and construction management and supervision
Because of the strong quality focus embedded into Ambitech’s culture, the engineering firm has forged
many client relationships lasting more than 30 years. More than 85% of its clients have returned to Ambi-
tech for additional projects.
Ambitech’s commitment also has translated into fewer errors in work: Ambitech’s engineering design
error rate is considerably lower than the 3% accepted industry standard. The engineering error rate is
calculated by taking the cost of construction rework due to engineering errors and dividing it by the total
installed project cost.
The quality and engineering function-specific training is another way Ambitech builds a culture of quality.
The training helps employees understand the planning, executing, evaluating and improving (PEEI) cycle and
comply with proven quality and departmental procedures to achieve what clients expect. Quality is a focal
point for all the project execution elements associated with the PEEI cycle.
Ambitech shows how it values employees’ quality work by recognizing these efforts with monthly em-
ployee appreciation lunches and employee of the month and year awards. —R.C.P.

This allows for assessment of the potential impact to will affect the documents and activities for multiple
individual tasks and the overall project schedule. functions. A new nozzle for a PT will require revision
Ambitech’s project management staff uses the to the piping and instrumentation diagram (P&ID),
schedule to communicate project status to the client vessel data sheet, instrument index, location plan and
as changes occur so corrective actions can be taken junction box wiring diagram. A new PT data sheet will
to minimize the impact to the need to be prepared for procurement. Additionally, it
project’s end date. may result in change orders from the vessel fabricator
Typical project- Like it or not, most projects and possibly from the installation contractors.
defining document encounter changes. Project It is therefore crucial to document changes and cir-
index / FIGURE 4 management and engineering culate the documents within the project team so ev-
experts are responsible for eryone on the project can evaluate the impact on his
INDEX identifying changes as they oc- or her work.
Section Page No.
cur. After input from engineer- The project’s success depends greatly on internal
1.0 Purpose............................................. 3
ing functions (disciplines), and external communication among project manage-
2.0 Basis.................................................. 3
21. Codes and standards.......................3
project management reviews ment, engineering and the client. To get the pulse of
2.2 Design criteria..................................3 any changes to evaluate im- the project, proper communication includes routine
3.0 Scope of work................................... 3 pact to the cost and schedule weekly or biweekly internal meetings.
3.1 General.............................................3 so it can be discussed with the Similarly, regular face-to-face meetings or telecon-
3.2 Process............................................3 client. Change order approval ferences with the client are important to allow discus-
3.3 Instrumentation...............................3 must be received before im- sion of the project’s status in terms of scope, schedule
3.4 Civil/structural/architectural...........4 plementing design changes. It and cost. Timely meeting minutes, written communica-
3.5 Piping...............................................4 is essential that project man- tions for key design decisions and a needs list to docu-
3.6 Electrical..........................................4 agement addresses the scope ment information requests are essential to direct the
3.7 Project management.......................4 changes in a timely manner project team toward the on-time completion of tasks.
4.0 Schedule........................................... 5 to avoid or minimize delays to Project management also uses Ambitech-developed
5.0 Budget............................................... 5 the engineering tasks. proprietary cost-control software to monitor budgets,
6.0 Work by client................................... 5 One new pressure trans- man-hour and cost projections, and earned value. The
7.0 Exceptions and clarifications........... 5 mitter (PT) added to a vessel software also allows function leads to prepare written
being fabricated, for example, reports to document completed and planned engineer-

42 QP • www.qualityprogress.com
 PROCESS IMPROVEMENT

Quality check points / FIGURE 5

Quality check point
Project
Supporting Process step Supporting
manager
functions functions
Pre-project
(provide input) (provide input)
planning
1 4 9

Project Primary/ Primary/

manager Primary supporting supporting
Primary Design
function function function
(defines function basis
project] (develops review (develops (finalizes
(finalizes
controlling meeting arrangements) arrangement)
Kick-off documents)
documents) 6 8 11
meeting 3
2 7

Project team Supporting Supporting

(reviews functions functions
project (provide (provide
execution) documents) documents)
5 10
Project
performance
evaluation,
project
critique Project team Design Project team Layout
meeting, basis review
best pratices (issues final review (develops final
documents) documents) meeting
and lessons meeting
learned 15 13
16 14 12

ing activities along with the schedule, budget and areas
of concern.
Project management uses the reports from this soft-
ware for monthly project-status reviews with senior
management and as a supporting document for monthly
status reports to the client.
All of Ambitech’s engineering documents follow
revision control and are processed through the docu-
ment management system (DMS). Similarly, all vendor
documents received by Ambitech for review and use in
design activities are processed through DMS. The DMS
allows engineers and designers to access the latest
documents for design and provides a history of changes
made to the documents.
Checking: “Quality means doing it right when no
one is looking,” Henry Ford once said.4 Everyone’s goal
at Ambitech is to prepare the document error-free the
first time. Is it possible to achieve that goal every time?
Because we’re all human, the answer is, “No.”
It is therefore imperative to have documents and
drawings—also defined as deliverables—checked ap-
propriately. Checking the deliverables is an ongoing
process. A well-organized process with proper docu-
mentation ensures all engineering and procurement de-
liverables are checked before documents are issued for
client approval, bid, purchase and construction.
Ambitech’s quality process requires all engineering,
cost estimate and procurement documents prepared for
the procurement and construction purposes to progress
through these six steps:
1. Self-check: The document originator reviews the
document before issuing it to the independent
checker.
2. Checking: The document is checked by an indepen-
dent checker from the department that generated it.
The checker makes sure the design meets the scope
and complies with the client, Ambitech and applica-
ble industry standards, specifications and codes.

June 2015 • QP 43
 Quality topics for daily staff huddles / TABLE 1

Quality Quality 10 Commandments

• Quality means doing it right • We must define quality as conformance to 1. Identify and reduce variation.
when no one is looking. requirements if we are to manage it. 2. Experiment to optimize.
• There is one rule for the • Quality management is a systematic way of 3. Establish and maintain databases.
industrialist: Make the best guaranteeing that organized activities happen the way
quality of goods possible at the they are planned. 4. Embrace statistics.
lowest cost possible, paying the • Quality improvement has no chance unless the 5. Standardize procedures and audit
highest wages possible. individuals are ready to recognize that improvement is for compliance.
• Obstacles are those frightful necessary. 6. Design for manufacturability.
things you see when you take • Make a commitment to a standard, communicate it, 7. Communicate with suppliers.
your eyes off the goal. recognize performance and then recycle.
8. Plan for quality.
—Henry Ford • It is much less expensive to prevent errors than to
9. Teach quality.
rework, scrap or service them.
10. Document improvement and
—Philip B. Crosby, Quality Is Free
corrective actions.

3. Office check: The checked document is issued to
project team members for review and comment.
This step ensures the document conforms to the
scope requirement and that information and design
are consistent across all functions’ documents.
4. Design review: All function leads who have input
or output from the document, the project manager,
a quality representative and the department special-
ist meet to review the document. This step ensures
the document not only complies with the project
scope, but also reflects all applicable design chang-
es, is safe and can be constructed. For a complex
project, a construction representative also is invited
to this design review meeting to provide input.
5. Department manager’s approval: The revised
document that addresses actions developed during
the design review meeting is given to the depart-
ment manager for approval.
6. Document issuance: The document is issued with
a transmittal to the client and vendor for its intend-
ed purpose—approval, bid, purchase or construc-
tion.

HUDDLE UP
The safety of Ambitech employees visiting the operating facility is important. Most of Ambitech’s custom-
ers—refinery and petrochemical companies—require that all personnel visiting the job site receive the cli-
ent’s site-specific training and training from a third party, such as Three Rivers Manufacturers Association.
All of Ambitech’s employees visiting client sites to collect design information and be part of the
construction support comply with the client’s safety training. They also are trained in compliance with ap-
plicable Occupational Safety and Health Administration requirements at Ambitech by our safety staff.
Contractors working at construction sites typically start their days with safety huddles—a review of
a short safety topic. To further emphasize the importance of quality and safety to the daily activities of
executing projects, Ambitech has expanded that huddle concept for all of our employees at headquarters
in Downers Grove, IL, and 11 branch offices. Employees are encouraged to start all meetings with a discus-
sion on safety and quality topics.
To facilitate this, all our conference rooms have a deck of cards—prepared by the safety and quality
departments—for safety and quality topics. Table 1 provides some examples of quality topics that have
helped kick off daily huddles.
All meeting attendees sign an attendance sheet. Every month, one safety and one quality attendance
sheet is selected and all persons on the list (employee and client) receive American Express gift cards as a
thank you for making safety and quality part of their everyday activities. —R.C.P.

44 QP • www.qualityprogress.com
 PROCESS IMPROVEMENT

Lessons-learned matrix / TABLE 2

Category What went right? What went wrong? What would you change?
Front-end loading
Constructability
Scope development
Design basis
Front-end engineering/design
Permitting
Pre-HAZOP
Learning and benchmarking
Project management
Project organization
Communications—internal/external
Reporting
Meetings—frequency, effectiveness
Scope management
Client management
Process detailed design
Process design
Design reviews
Process data to mechanical
Process data to instrumentation
PHA
Other
HAZOP = hazard and operability study PHA = process hazard analysis

Figure 5 (p. 43) shows a project execution block di-
agram Ambitech follows. The quality department par-
ticipates in all of the steps identified as quality check
points. As part of step four, the primary function—pro-
cess department—prepares P&ID in step three using
input from the supporting functions such as instru-
mentation, mechanical, piping and electrical.
The piping specification and equipment list received
from the mechanical department as part of step five
also is used for P&ID development. The P&ID finalized
in step six is reviewed by the project team members in
step seven. Another function—piping or mechanical —
prepares the layout documents in step eight as defined,
and go through steps nine, 10, 11 and 12. The revised
documents are reviewed by the project team in step 14
in the design review meeting.
Procurement: All engineering documents and
specifications for equipment, instruments and electri-
cal components are used to procure material and so-
licit bids from construction contractors.
Construction: This step includes construction,
system check out and start up. Ambitech’s involvement
in this step depends on the scope of services. We sim-
ply may be answering a request for information (RFI)
from contractors, or we may have full responsibility
for construction supervision or construction manage-
ment. For construction supervision or construction
management responsibility, the construction manager
uses Ambitech’s own Construction Management Field
Procedures Manual—developed based on experience
and industry best practices—to oversee the contrac-
tor’s work.
RFIs are reviewed and resolved by the appropriate
engineering functions. Any resulting design changes
made to the documents go through a repeated check-
ing process.
Evaluating
The quality department randomly audits the entire
project team or a single function to assess its confor-
mance to Ambitech’s protocols as defined in proce-
dures. Deficiencies and recommendations noted in the

June 2015 • QP 45
 PROCESS IMPROVEMENT
audit report are discussed with the audited parties so
necessary improvements can be made.
At the project’s conclusion, the project manager or-
ganizes a lessons-learned meeting to discuss successes
and challenges. This meeting, attended by the project
team members, a quality representative and appropri-
ate senior management, covers:
• What went right so that we can continue doing it.
• What the challenges were and what can be done to
avoid similar situations in the future.
• What kinds of changes are necessary to improve fu-
ture project execution.
The project manager issues a spreadsheet (see Ta-
ble 2, p. 45) to the project team members for feedback.
The spreadsheet lists activities associated with proj-
ect management, engineering functions, deliverables,
schedule, cost, quality of deliverables, responsiveness,
project closing, and information exchange and com-
munication within engineering functions, and between
Ambitech and the client.
Open and candid discussion is fostered at the meet-
ing so team members can provide opinions, comments
and recommendations. The comments received before
and during the meeting are summarized on the spread-
sheet and used to conduct a similar meeting with the
client.
Ambitech uses the lessons-learned meetings as a
way to identify necessary improvements to work and
information flow, and to understand any additional cli-
ent expectations. This is so we can adjust the internal
and external processes—with client, vendors and con-
tractors—to improve future executions.
The quality department seeks client feedback about
Ambitech’s performance on the project scope, bud-
get, schedule, quality and responsiveness. Client feed-
back—positive and negative—is shared with project
management, department managers and senior man-
agement so appropriate attention is given to the areas
rated lower by the client.
Improving
In his book, Juran on Leadership for Quality, Joseph
M. Juran wrote, “Improvement means the organized
creation of beneficial change; the attainment of unprec-
edented level of performance.”5 Ambitech considers
improvement to be a continuous process, and we take
every opportunity to capitalize on it, particularly using
information from lessons-learned meetings.
46 QP • www.qualityprogress.com
As covered in the evaluating phase, the areas of im-
provement identified through the quality audit, the les-
sons learned meeting and client feedback are reviewed
by the appropriate parties so the execution process can
be adjusted for improved performance in future proj-
ects.
One example of a lesson learned—based on feed-
back from new clients—implemented at Ambitech is
the establishment of an alignment meeting with each
new client before we engage engineering staff for the
proposal activities. The meeting allows us to learn
about:
• The client’s culture.
• The client’s expectations for the level of detail re-
quired on the deliverable, specifications and stan-
dards (client, Ambitech or industry) to be used for
design.
• The client’s involvement for review and approval.
• A responsibilities breakdown between the client
and Ambitech.
Commitment to quality
Ambitech’s own PEEI cycle and the steps it takes to
ensure all of its employees have quality training and
are engaged in quality initiatives show just how much
quality has become an essential part of this engineering
firm’s culture.
Ambitech’s PEEI cycle and its quality manage-
ment plan—consisting of various processes, pro-
cedures, trainings, software, tools and recognition
programs—has become the foundation of everything
Ambitech does to ensure it delivers the highest qual-
ity to customers. QP
REFERENCES
1. Philip B. Crosby, Quality Is Free, McGraw-Hill, 1979, p. 82.
2. Mary Walton, The Deming Management Method, Perigee Trade, 1988, pp.
86-88.
3. Michael R. Nosbisch, “Cost Estimate Classification System—As Applied in
Engineering, Procurement and Construction for the Process Industries,”
presentation, Association for the Advancement of Cost Engineering Interna-
tional Recommended Practice No. 18R-97, Feb. 2, 2005.
4. BrainyQuote, www.brainyquote.com/quotes/quotes/h/henryford106096.
html.
5. Joseph M. Juran, Juran on Leadership for Quality: An Executive Handbook,
Free Press, 1989.
RAJ C. PATEL is director of quality at Ambitech
Engineering Corp. in Downers Grove, IL. He holds a
master’s degree in organic chemistry from University
Schools of Sciences in Ahmedabad, India. He is a
member of ASQ.