KING FAHD UNIVERSITY OF
PETROLEUM AND MINERALS
CEM-515 PROJECT QUALITY MANAGEMENT
Implementing of TQM
in Construction Industry
Sohail M. Shafi
ID# 230179
17-Jul-16
1
OUTLINE





Introduction
Methodology
Case Study 1
Case Study 2
Conclusions
17-Jul-16
2
Introduction
 Definition of Total Quality Management
Total quality management is the management approach of an
organization, which concentrates on quality based on the
participation of its members and aims at long-term success through
satisfaction and benefits to all members of the organization and
society.
 Application of TQM on construction projects has two distinct
purposes:
(i) to satisfy the customer’s requirements through a QA system; and
(ii) to achieve continuous improvements (CI).
17-Jul-16
3
Introduction
 Case Study 1
How construction industry and projects should implement TQM?
 Case study 2
Contractors need to align their culture with the objectives of the
TQM program for an effective and successful strategy for
performance improvement.
17-Jul-16
4
Methodology
 The case studies for TQM in construction industry were
analyzed on how a construction industry and project
should approach TQM and the need for contractors to
align their culture to improve performance based on
customer satisfaction.
17-Jul-16
5
Case Study 1
 A field survey was carried out on three large ‘live’ projects.
 Projects under construction for the study comprising of a large civil
project, a road project and a multi-storey office building.
 The projects still required the commitment towards quality methods,
overall usefulness of QA system, lack of project specific training and
poor workers’ participation.
 The result of the survey states that awareness of how construction
industry and project approaches TQM is necessary for successful
projects.
17-Jul-16
6
TQM in Construction Industry
 Strategies needed at Industry level
Projects should be very carefully prepared beforehand and workforce
trained to operate effectively the CI process.
Simple guidelines:
1. Clarify TQM
2. Meeting the requirements of the QA obligations
3. Practically achieving workers’ participation and empowerment
4. Showing the process of innovation and technology transfer
The relationship between technology transfer and the CI process is
that without continuous technology transfer there can be a limit to
process improvement.
17-Jul-16
7
TQM in Construction Industry
 Communication for promoting TQM
The observations on the 3 projects proved that QA systems were
cumbersome and irrelevant to the quality of the work and even workers’
participation
The communication process must attempt to create a shared vision to
embrace TQM principles and improve continuous processes.
It should convince people that QA and CI innovation will serve the future
better.
While QA practices might reduce the incidences of errors or omissions, these
will not necessarily remedy poor design conceptualization or lack of cost
competitiveness of the finished facilities.
17-Jul-16
8
Projects approach to TQM
 The assumption is that the project has an identity of its own, and can be
improved through the application of TQM principles.
 TQM strategies at Project level
1. Create a clear and shared vision, unity of purpose and cultural consistency;
2. Motivating the human factor, achieving job pride and satisfaction
3. Create conditions for combining an effectively project organization and team
capable of learning and improvement.
4. The means and methods of lifting the project’s capabilities in terms of assurance of
the quality of the works and improvement in the relevant processes.
5. Get the organization to allocate resources, and collectively develop, revise and
implement specific TQM plans.
6. Develop and implement an effective and efficient communication system.
7. Reward good performance and share any direct and indirect cost savings on project.
17-Jul-16
9
Case Study 2
 Findings from eight organizations that have adopted TQM practices in
response to competitive and environment pressures.
 The ability of the supplier to satisfy customer expectation is primarily
influenced by factors like people, systems and variation.
 Major finding from the case study were:
– Motivation for embarking on TQM;
– Planning and implementing of TQM; and
– Benefits and barriers of TQM.
17-Jul-16
10
Motivating for embanking on TQM
 Organizations tend to change primarily because of external pressure rather
than an internal desire for change.
 All contracting organizations should view TQM initiatives as part of means
to respond to the competitive environment; to improve their performance.
 To compete effectively, they should first focus on issues such as managing
projects, marketing and increasing employee independence through
empowerment initiatives.
17-Jul-16
11
Planning & Implementation of TQM
 The responsibility for implementing the TQM was given to Quality Manager,
who was not part of the line management responsibility.
 TQM had not been integrated into the strategic planning systems.
 Lack of quality, values and mission amongst employees caused the TQM
program to be ineffective.
 Some contractors experienced an evolutionary approach to implementing
continuous improvement programs by creating an awareness of TQM and
encouraging the involvement of employees through the formation of teams.
17-Jul-16
12
Benefits in Implementing TQM
 Increase in awareness and focus by all employees.
Other benefits
 Project performance (reduction in rework, waste);
 Client satisfaction (repeat clients);
 Relations with customers/suppliers (partnering);
 Staff morale (training and education);
 Measurement of performance (internal and external benchmarking); and
 Organization competitiveness (success in bidding)
17-Jul-16
13
Barriers in Implementing TQM
 Employees showed resistance to the introduction of TQM for reasons such as
fear of the unknown, perceived loss of control, personal uncertainty and a
willingness to take “ownership” and be committed to change.
Other barriers







Perceived threat to foreman and project manager roles;
Disinterest at site level;
Lack of understanding about TQM;
Fear of job losses;
Inadequate training;
Plan not clearly defined;
Resistance to data collection.
17-Jul-16
14
Lessons Learned
 The lessons learned from the implementation of a TQM program:
– TQM should be implemented by line managers;
– Quality improvement system has a role in improving the morale of employees;
– There needs to be a link between information technology and quality systems;
– Continuous commitment to education and training;
– TQM needs to be defined and integrated with the organizations’ business
strategy; and
– There needs to be complete commitment MD and senior manager team to
implement TQM.
 Using culture-auditing tools may help with the design of a successful TQM
implementation program (reviewing the current practices, behaviors and
attitudes).
 Cultures affecting TQM program includes: intra and inter organization
cooperation, statistical analysis tools, support and encouragement for CI and
good record keeping and documentation.
17-Jul-16
15
Conclusion
 The case studies represented in this paper were carried out in
Australia, which is not considered a developing country; the lessons
learned are very relevant to developing countries because they face
the same problems when introducing TQM.
 Another case study offers a learning opportunity for contractors who
are, or in the process of adopting TQM. Using culture-auditing tools
may help with the design of a successful TQM implementation
program.
 Customer orientation and communication skills play an important
role in the overall satisfaction of the customer in the construction
industry.
 Construction companies are adopting TQM to improve their
performance.
 Customer satisfaction is an important factor in the development of the
construction process and the customer relationship.
17-Jul-16
16
Questions?
17-Jul-16
17