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CHAPTER I Introduction
I.1 Introduction
The construction industry is a vital component of any country's economic development. It is responsible for facilitating the construction of essential infrastructure, such as roads, bridges, and buildings, which are essential for societal progress. Without the construction industry, a country's growth and development would be severely hindered, and its citizens' quality of life would suffer. Therefore, it is crucial to have proper construction management procedures in place to ensure that projects are completed on schedule. (Chasanah 2017).
Proper construction management is essential because the construction sector plays a vital role in the expansion and modernization of cities and towns. Calculated completion dates enable construction project management to control when work is started and when it is finished. This fact is highlighted by the widespread growth and evolution of the building sector, which has become one of the most significant and rapidly developing sectors of the global economy in recent years. This growth indicates the increasing demand for construction and infrastructure development worldwide and how construction sector development follows an economy's expansion in any given nation. (Chasanah 2017).
Construction project management entails the systematic planning, organization, and allocation of resources and funds to optimize outcomes for both ongoing and future projects. These activities are purposefully aligned towards achieving specific objectives, commencing with an initiation phase and concluding with an evaluation phase, wherein the success of the project is measured. This systematic approach ensures that projects are executed efficiently, resulting in high-quality work completed within the stipulated time frame (Asnuddin 2018).
Due to globalization, the amount of competitive pressure towards construction firms has forced them to enhance their management systems to achieve their objectives efficiently while doing so (Neyestani 2017). One of the most important parts of construction project efficiency is the logistics branch, and a seamless flow of supplies and services is necessary for the ongoing of construction projects. The logistics system is made up of all the interactions and relationships pertaining to the
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flows of materials and information. Being a part of a wider supply chain of suppliers and consumers, a firm has its own internal logistics system, which takes the shape of supply chains (Shahbaz 2019).
Effective logistic management systems can also make the integration and level of cooperation between contractors, subcontractors, and suppliers easier, boosting construction employees' productivity (Almohsen 2013). Logistics that are effective can improve the final results of building projects by saving time and reducing material waste, both of which have an adverse effect on the costs. To mitigate risks and address the various issues encountered in construction projects, numerous solutions and tactics have been suggested, including the adoption of effective logistic management systems (Olayeni 2017).
Construction companies can use a variety of approaches and technologies to maintain an excellent level of quality while reducing/saving project costs and time.
The International Standard for Organization (ISO) 9001 standard is the most significant method in this area (Neyestani 2017). This standard emphasizes the importance of adopting a process approach for the establishment, implementation, and enhancement of a quality management system. By focusing on process-oriented activities and continuous improvement, companies can better understand and meet their customers' needs, resulting in increased satisfaction and loyalty.
The ISO standard serves as a guide for businesses to develop a systematic approach to quality management, which includes identifying and prioritizing customer requirements, implementing procedures to meet those requirements, and monitoring and measuring the effectiveness of those procedures over time (ISO 9001 2015 fifth edition). By following this approach, businesses can continually improve their quality management systems and exceed customer expectations.
Since its initial publication by ISO in 1987, the ISO 9001 International Standard has grown to be a significant component of the quality movement and a crucial management framework for all types of enterprises globally (Fonseca 2016).
Although ISO 9001 certification is not required, it plays a significant role in international business and is a highly visible proxy for the adoption and intensity of Quality Management Systems (QMS). The adoption of ISO 9001 by construction companies demonstrates their commitment to quality and their ability to meet
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customer expectations. It also provides a competitive advantage by demonstrating that their quality management system meets international standards, giving them an edge over (Fonseca 2016).
I.2 Problem Formulation
To assess the implementation of ISO 9001:2015 for construction logistic management in the road preservation project in South Kalimantan and evaluate its adherence to established Standard Operating Procedures (SOP) aligned with ISO 9001:2015 requirements.
I.3 Research Aim
The objective of this research is to evaluate the extent of compliance with ISO 9001:2015 standards for construction logistic management in the road preservation project in South Kalimantan by assessing the alignment and adherence to established Standard Operating Procedures (SOP) based on ISO 9001:2015 requirements.
I.4 Research Objective and Benefits
The primary objective of this research is to investigate and analyze the impact of implementing the International Organization for Standardization (ISO) 9001 quality management system in the logistics division.
I.5 Project Profile
The project chosen as a case study for this final assignment is a road preservation project located in South Kalimantan. This road preservation project has a length of 89.5 km and is divided into 4 sections. The project is valued at approximately 100 billion Indonesian Rupiah and is funded by SBSN. The project is carried out by a Joint Operation of two construction companies, one based in Jakarta and the other in South Kalimantan. The project owner is the South Kalimantan regional government. The construction phase of the project lasts for 692 calendar days, while
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the maintenance phase lasts for 365 calendar days. This project was chosen as the second internship program location.
