1. Quality Control as a Profit Center
James M. Shilstone, Jr., FACI
Copyright © 2016 Command Alkon Incorporated

2. Session Objective
Many concrete companies look at the quality control department as an expense to be minimized. This session will demonstrate ways in which the QC Department can provide a positive return to the company and more than justify its cost.

3. Quality Control is for Everyone
Public Works
Industrial
Commercial
Residential
Agricultural
Farmers need good concrete, too!

4. Basic Tasks for QC
Avoid low strengths
Get the right slump
Respond to problems
Make the customer happy

5. Introduction to Concrete Quality Control
What is Quality Control?
Many people think concrete QC is about making cylinders and cubes *, but it’s not! *
Concrete quality control is about making decisions. Do I need to change cement content? Which admixture should we use? What caused a low strength test?

6. KPI Information Overload
Our customers are drowning in data and starving for information they can use in real time
KPI

7. QC Integration QC Manager Technicians Sales/Dispatch Clerical
COMMANDseries or Integra
QC Manager
Technicians
Sales/Dispatch
Clerical
Management
App Server (RDC, Citrix)
SQL Server
Batching

8. True “cost of quality” Cost of QC department Cost of lack of quality
Chargebacks
No-pays
Removal/replacement
Insurance
Lost sales
Lawsuits
$1 spent on quality provides a $3 payback
REPUTATION is most important
Concrete is guilty until proven innocent
Concrete quality and service elevate concrete from being a commodity

9. COMMANDqc provides VALUE
Reduce materials costs
Optimize concrete mixtures
Maintain yield
Increase contractor satisfaction
Performance
Uniformity
Confidence in the concrete
Confidence in the producer
Improve operations
Increase productivity
Centralize data management
Multi-level security

10. Secret to Profitability Sell for more than it costs

11. Hard Returns

12. Reduced materials cost
Hard Returns
Reduced materials cost
Total Materials
Reduced production variance
Cement
Fewer problems
Assignable causes of variation
Reduced variation
Greater operational efficiency
Mix adjustments
Submittals
Rapid response to changes

13. 7 Steps to More Profitable Concrete
Optimize Mixes
Check the yield
Minimize overdesign
Maximize cementitious efficiency
Know Sources of Variation
Track materials’ variations
Monitor production tolerances
Evaluate project/testing variation
Record complaints
(Improve operational efficiency)

14. Optimize Mixes – Verify Yield

15. Yield - The Unobvious Opportunity
Material
Weight
Sp. G.
Volume
Cement
560 lbs /
/ 62.4 =
2.85 cft
Water
280 lbs /
/ 62.4 =
4.47 cft
Stone
1800 lbs /
/ 62.4 =
10.89 cft
Sand
1300 lbs /
/ 62.4 =
7.95 cft
% Air
5 % x
27 cubic ft.
1.35 cft
TOTAL
27.51 cft
(10,000 cyd) / year x (0.51 cft) / (27 cft/cyd) = 189 cyd not sold 189 cyd x $60/cyd = $11,340 / yr lost

16. Yield ROI
Assume concrete price = $60/cyd & aggregate cost = $15/ton
Assume current mix = 27.3 cyd
Material savings = 0.3*2.62*62.4*15/2000 = $0.37
Lost sales = 0.3/27*60 = $0.67
TOTAL Return = $1.04

17. Optimize Mixes – Reduce Overdesign

18. Determining cement-ACI 318
Best – use historical test data and determine appropriate overdesign, then determine cement content
Alternate – produce lab batches to develop w/c vs strength curve and select appropriate cement content
If no data available, use “expertise”

19. w/c Ratio Curves

20. ACI 318 Overdesign Criteria
Moving average of 3 fcr = f’c + (2.33s/√3) = f’c s
Individual <= 5000 psi fcr = (f’c – 500 psi) s
Individual > 5000 psi fcr = (0.90 *f’c) s

21. Strength Overdesign Report
5900 psi – 5070 psi = 830 psi  80 lbs of cement x $.05 = $4.00
w/c: 5700 psi – 5070 psi = 630 psi  63 lbs of cement x $.05 = $3.15

22. Overdesign ROI
Target: Decrease SD by 100 psi
Mix: 4000 psi at 600 psi SD
Target strength = (2.33*600) – 500 = 4898 psi
Reduced SD strength = (2.33*500) – 500 = 4665 psi
4898 – 4665 = 233 psi => 23 lbs cementitous
23 lbs * $0.04 = $0.92 / cyd

23. Optimize Mixes – Maximize Cementitious Efficiency

24. Cementitious efficiency =average psi / wt of cementitious
5250 psi / 550 lbs cementitious = 9.55 psi/lb
42 MPa / 400 kg cementitious = 10.5 MPa/100kg

25. Cement efficiency

26. Optimum aggregate combination

27. WATER DEMAND

28. Use a variety of methods

29. Cement Efficiency ROI
Target: Increase cement efficiency by 1 psi/lb
Mix: 4000 psi currently at 8 psi/lb
Target strength: 5000 psi
5000 psi / 8 psi/lb = 625 lbs of cementitious
5000 psi / 9 psi/lb = 556 lbs of cementitious
Assume: cementitious = $0.04/lb
Saving: (625 – 556) *$.04 = $2.76 / cyd

30. Sources of Variation – Materials Variance

31. Material Impacts
Fine aggregate = coarse => less water, harsher finer => more water, stickier
Coarse agg = coarse => less mortar, rockier finer => more mortar, more sandy
Cement = coarser => slower strength gain finer => faster gain, faster heat build-up
Fly ash = higher LOI => less air, more AEA lower => more air, less AEA

32. Sand Grading

33. Sources of Variation – Production Variance

34. Production Variation
Impact of batching out of tolerance
Impact of reducing variability

35. Production Analysis

36. Production Analysis
Admix- $1200 in 3 months

37. Plant Comparison

38. Sources of Variation – Delivery & Testing

39. Evaluate Testing Variation
Monitor labs and technicians for testing variation
Determine causes of concrete changes
Provide backup information during investigations
Cylinder difference
CuSum Analysis

40. Impact of Testing Variation
Precision & Bias

41. Fewer Problems – Assignable Causes

42. “If you cannot measure it, you cannot improve it.” - Lord Kelvin

43. Incident Tracking

44. Greater Operational Efficiency

45. Mix Mass Update

46. Concrete Submittals

47. Soft Returns
Improved ability of sales to back up bids
Increased confidence by customers
Increased confidence by producer
Ability to negotiate with Engineers
Ability to negotiate with Material Suppliers
Industry recognition

48. Questions?

49. Please Complete Your Evaluation
Complete your evaluation online:
QC-003 -Quality Control as a Profit Center
All conference session materials can be accessed at: marketing.commandalkon.com/cc2016/index.htm
Thank You!
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Copyright © 2016 Command Alkon Incorporated