TQM CRITICAL SUCCESS FACTORS FOR CONSTRUCTION
FIRMS
Bhimaraya A. Metri*
Received: 8. 12. 2004.
Accepted: 18. 10. 2005
Preliminary communication
UDC: 658.56:624
The construction industry has lagged behind other industries in implementing
reform through total quality management. It has not followed the manufacturing
industry in the implementation of TQM. The success of the total quality
management (TQM) philosophy in manufacturing and other industries is forcing
construction organizations to adopt TQM. This paper first outlines the imperatives
of quality and its initiatives in the construction industry and then analyzes the
critical success factors (CSFs) of the fourteen most prominent total quality
management (TQM) frameworks. Based on the comprehensive analysis and
examination of existing TQM frameworks and literature, the paper proposes the
10 critical success factors (CSFs) of TQM for construction industry. Finally, it
describes the CSFs from the construction industry perspective.
1. INTRODUCTION
The construction industry of any country is the backbone of its
infrastructure and economy. Though it is a major contributor to the economy of
any country, it faces the problems of high fragmentation, instability, low
productivity, poor quality and lack of standards. Abd. Majid and McCaffer
(1998) further established that most countries are dealing with the same
common problems despite the differences in their economies. Due to the above
mentioned quality problems, construction clients are not satisfied with the
performance achieved on many of their projects (Kometa & Olomolaiye 1997).
Kometa & Olomolaiye (1997) state that despite many efforts, apart from time
and cost overruns, unsatisfied clients and other difficulties continue to plague
the industry. Thus the reputation of the construction industry is ill suited for
*
Dr. Bhimaraya A. Metri, Ph.D., India Management Development Institute, P.O. Box No. 60,
Mehrauli Road, Sukhrali, Gurgaon 122 001, India, Phone: + 91-124-5013050-59, 2349831-36,
2340153, 2340173 Ext 345, Fax: +91-124-2340147, E-mail: metri@mdi.ac.in
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B. A. Metri: TQM critical success factors for construction firms
meeting the competitive challenges of today’s fast changing market (Torbica &
Stroh 1999), where the competitive edge is with those who manage their
resources most effectively and offer a timely response to the demands of the
market.
Today, quality management has become one of the important forces
leading to organizational growth and a company’s success in national and
international markets. The role of quality in construction has also been espoused
by Belle (2000) and Burati et al. (1992). In order to emphasize the role of
quality various aspects of quality tools and techniques have been also described
in previous studies (Belle 2000, Metri 2004). Recently, efforts made to improve
quality in construction are widely reflected in the relevant literature (Arditi and
Gunayadin 1998, Rosenfed et al 1992, Mallon & Mulligan 1993, Kiwus &
Williams 2001, Federley & Chase 1993). Many companies are frustrated in
their effort to improve quality through TQM because these companies have
exclusively focused on financial measures instead of quality measures (Torbica
& Stroh 1999). Other studies, in the recent past also observed the failure of
TQM. These failures are due to the too much- too soon effort without proper
foundation and focus (Culp et al. 1993). Construction firms, therefore, need to
understand the TQM CSFs for the successful implementation of TQM.
Therefore, there is a pressing need to establish TQM CSFs for construction
firms. This paper examines the TQM frameworks developed by scholars and
businesses and develops the TQM CSFs for construction firms.
2. SELECTION AND ANALYSIS OF TQM FRAMEWORKS
An extensive literature survey has been carried out to select TQM
frameworks for this study. The relevant literature has revealed that different
countries have adopted similar TQM frameworks in the form of quality awards
with a different title. Today, there are more than a hundred quality awards
existing in different countries. However, all these quality awards are basically
derived from three basic and prestigious awards: the Malcolm Baldrige National
Quality Award (MBNQA), the European Quality Award (EQA) and the
Deming Prize. This study, therefore, includes only these three basic awards as
TQM frameworks along with other frameworks developed by scholars.
Furthermore, through the study of TQM literature, eleven TQM frameworks
developed by researchers have been selected. In total, fourteen important TQM
frameworks viz. Deming prize, MBNQA, EQA, Saraph et al., Oakland, Flynn et
al., Babbar and Aspelin, Ahire et al., Black and Porter, Pheng and Teo, Ang et
al., Zhang et al., Nwabueze and Thiagarajan et al., were chosen from the TQM
literature for the purpose of establishing TQM CSFs for the construction
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B. A. Metri: TQM critical success factors for construction firms
industry. A detailed analysis of the frameworks with respect to CSFs is carried
out and presented in Table 1 Based on the frequency analysis, the CSFs are
prioritised as shown in Table 2.
Table 1. Analysis of TQM Frameworks
TQM
frameworks
Deming prize
(2004)
MBNQA (2004)
EQA(2004)
Saraph et al
(1989)
Oakland (1993)
Flynn et al.
(1994)
Babbar and
Aspelin (1994)
Ahire et al.
(1996)
Black and Porter
(1996)
Pheng and Wei
(1996)
Ang et al.
(2000)
Zhang et al.
(2000)
Nwabueze
(2001)
Thiagarajan et al
(2001)
1
2
Critical success factors*
3 4 5 6 7 8 9 10 11 12
X X X X
X
X
13
14
X
X
X X X X X X X X
X X X
X X X X
X X X X X X
X
X
X
X
X
X
X X X
X X X
X X X X X
X
X
X
X
X
X
X
X
X
X
X X
X X X X X X X X
X X X X X X X X
X
X X
X X X
X
X X X X
X X X X X X X X
X
X
X
X X X X X X
X
15
X
X
X
X
X X
*Note: 1 - Top management commitment; 2 - Strategic quality management;
3 - Process quality management; 4 - Design quality management; 5 - Education and
Training; 6 - Supplier quality management; 7 - Customer satisfaction; 8 - Employee
empowerment and involvement; 9 - Business results; 10 - Information and Analysis; 11
- Benchmarking; 12 - Resources; 13 - Impact on society and environment; 14 Statistical process control; 15 - Culture.
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B. A. Metri: TQM critical success factors for construction firms
Table 2. Prioritisation of CSFs
Sr.
No.
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
Critical Success Factors
Process management
Education and Training
Customer satisfaction
Top management commitment
Supplier quality management
Employee empowerment and
involvement
Information and Analysis
Strategic quality management
Design quality management
Business results
Impact on society and
environment
Benchmarking
Resources
Statistical process control
Quality Culture
Frequency of
Occurrence
Prioritised
Rank
13
13
13
11
11
1
1
1
2
2
11
2
11
9
8
3
2
3
4
5
2
6
1
1
1
1
7
7
7
7
3. ESTABLISHMENT OF CRITICAL SUCCESS FACTORS
The frequency analysis shown in Tables 1. and 2. revealed that 13 out of
the 14 frameworks have three CSFs in common: process management,
education and training, and customer satisfaction. The analysis further revealed
that 11 out of the 14 frameworks have four CSFs in common, viz., top
management commitment, supplier quality management, employee
empowerment and involvement and information and analysis. The strategic
quality management and design quality management CSFs have their presence
in nine and eight frameworks respectively. Quality culture, CSF, however,
occurs only in the Black and Porter framework (Black and Porter, 1996).
However there is ample evidence from the literature on the culture and success
of quality initiatives. For instance, these researchers, Ahire and Ravichandran
(2001), Ambroz (2004), Butch and Rivers (2001), Chan and Tse (2003),
Jabnoun and Anwar (2002), Jenner et al. (1998), Laszlo (1998), Lewis (1996),
Manley (1998), Perry (1997), Roney (1997), Sinclair and Collins (1994),
Waldman and Gopalakrishnan (1996), and Youssef and Zairi (1995) have all
emphasised the importance of organizational culture for the implementation of
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B. A. Metri: TQM critical success factors for construction firms
quality initiatives in their studies.
Culture is more powerful than anything
else in the organization. Culture, ``how we do things around here in order to
succeed,'' is an organization's way of behaving, identity, pattern of dynamic
relationships, ``reality,'' or genetic code (Schneider, 1994). It has everything to
do with implementation and how success is actually achieved. No management
idea, no matter how good, will work in practice if it does not fit the culture.
Therefore, quality culture is considered as one of the important CSFs of TQM.
The other CSFs (namely, business results, impact on society &
environment, benchmarking, resources and statistical process control) are
presented in very few frameworks (Table 1and 2). It is a well known fact that
the business results are the outcome of the above-mentioned nine important
CSFs. Hence it is wise to consider them as a CSF. Similarly, impact on society
and environment, and resources are mainly a part of top management
commitment and partially other CSFs will take care of them.
For example, design quality management may consider a product with a
lower number of components which protect the environment with reduced
maintenance cost. Also, the uses of recyclable materials reduce environmental
harm. This way the design quality management CSF covers the impact on
society and environment and resources. Benchmarking and statistical process
controls are the techniques used normally for the process improvement. Hence
in the real sense they are not considered as CSFs. They are part of the process
management CSF.
Thus, the examination of of TQM frameworks has revealed that not all the
frameworks are comprehensive, but in many respects these frameworks
complement one another. Therefore, a blending salient feature of these
frameworks is the best approach for the establishment of critical factors for
construction quality management.
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
Therefore, the following ten CSFs have emerged out of the above analysis:
Top management commitment
Quality culture
Strategic quality management
Design quality management
Process management
Supplier quality management
Education and training
Empowerment and involvement
Information and analysis
Customer satisfaction.
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B. A. Metri: TQM critical success factors for construction firms
4. DESCRIPTION OF TQM CSFs
4.1. Top management commitment
Research suggests that most quality tools associated with TQM do not
generally produce an advantage, but a certain tacit behavioural feature such as
executive commitment can produce an advantage. Many a time TQM initiatives
have failed to fulfil their potential due to lack of senior management
commitment to the quality process. Thus, for TQM, commitment by the
management is essential. Without it; there is no need to proceed further.
4.2. Quality culture
The factors like use of information for improvement, authority equal to
responsibility, job security, climate of fairness, compensation based on equality,
teamwork, collaboration, learning and involvement, ownership, and
development form an organizational culture, which then leads to increases in
productivity, quality, and customer and employee satisfaction. Failure of the
TQM is attributed to a lack of developing and sustaining a quality oriented
culture and mismatch of organizational culture. In a sense, TQM fundamentally
requires a new culture. In the construction industry, company culture and
project culture both co-exist and need integration.
4.3. Strategic quality management
Strategic quality management concepts must be put into practice by the
inclusion of quality objectives in the strategic planning process and through
strategic planning frameworks, like quality function deployment (QFD), which
provides specific instructions for approaching, executing, and evaluating the
development of strategic concepts. Internal issues develop a long-term road map
with the incorporation of core competencies concepts and emphasize the
adoption of new technologies. External issues are the response of the
organization to the economic swings in the industry, the impact of new market
opportunities on existing business practices and protection against competitors.
4.4. Design quality management
Superior designs result in distinct competitive capabilities such as fast
delivery and flexibility. In construction projects, new designs are thoroughly
reviewed before construction and experimental design is used extensively in
structure design. Clarity of specifications and avoidance of frequent redesigns is
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B. A. Metri: TQM critical success factors for construction firms
emphasized. Detail design, schedule and cost estimate, design evaluations,
constructability in design, control of design activity are part of design quality
management. Thus good design quality management results in an excellent
quality of core service that positively influences customer perceptions of quality
and an important aspect of TQM.
4.5. Process management
Process management focuses on managing the construction process so that
it operates as expected, without breakdowns, shortage/missing materials, tools,
etc. It is needed to reduce rework and waste due to mis-specification of
processing parameters. This provides clarity of ownership and less reliance on
inspection. In the context of construction, specific activities like planning the
sequence of field tasks, analysis of layout, access, temporary facilities,
innovative use of materials, innovative use of construction equipment and tools,
and the use of pre-assembly or pre-fabrication items are carried out. Also,
constructability is included in the contract document. Pre-work, demobilization,
execution are a part of process management
4.6. Supplier quality management
Supplier quality management includes fewer dependable subcontractors,
reliance on suppliers process control, strong inter dependence of supplier and
customer, purchasing policy, emphasizing quality rather than price, supplier
quality control and supplier assistance in quality development. Materials are
often a major source of quality problems and affect buyer satisfaction. Instead
of relying on tools such as acceptance sampling to establish the quality of
incoming materials and component parts, it is preferable for constructors to
purchase from a more limited number of qualified or certified suppliers.
4.7. Education and training
Education and training forces employees to not only possess the adequate
knowledge and skills to perform their jobs, but also to possess specific values,
knowledge, and skills associated with TQM issues and activities. Reasons cited
for the failure of TQM initiative include the lack of appropriate training and
inadequate knowledge. Thus employees will be motivated to engage in qualityoriented behaviour when their roles and the relevance of their training to overall
quality goals are clarified.
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B. A. Metri: TQM critical success factors for construction firms
4.8. Empowerment and involvement
Empowerment and involvement enhances the individual's self-esteem and
improves his/her ability to solve problems and to make low-risk decisions.
Worker motivation, responsibility, and accountability are generic concepts that
can benefit any business organization. The causes of ongoing quality problems
like lack of team work, conflict, and lack of worker involvement are overcome
by personally participating in quality improvement activities, which leads to the
success of TQM.
4.9. Information and analysis
Information and analysis consist of evaluation for various policies and
strategies, quality audit, analysis of quality costs, department/function
performance evaluation, and employee and supplier performance evaluation. If
there is inferior dissemination of the generated information, quality techniques
like benchmarking and SPC tools will be rendered ineffective. To maintain a
true customer focus, an organization must ensure prompt feedback of customer
survey results to appropriate functional areas for effective actions.
4.10. Customer satisfaction
A construction organization may outperform the competition by being able
to anticipate and respond quickly to customers’ demands with new ideas and
technologies and to produce constructed facilities that satisfy or exceed
customers’ expectations. Despite the use of the latest process improvement
techniques and capable management, a firm's neglect of its customers may lead
to disaster. Without customer focus, the TQM programme will lack the
foundations on which to build further.
5. CONCLUSION
The construction industry does not follow the lead of manufacturing. The
analysis of fourteen of the most prominent TQM frameworks has revealed that
out of fifteen CSFs, nine CSFs, are common in most of the frameworks. The
analysis further pointed out that none of the frameworks are comprehensive.
Apart from the Black and Porter framework, quality culture CSF does not exist
in other frameworks even though there is ample evidence in the literature on the
culture and success of quality initiatives. Using the nine common CSFs and the
quality culture CSF, ten TQM CSFs are proposed for constuction firms, namely,
top management commitment, quality culture, strategic quality management,
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B. A. Metri: TQM critical success factors for construction firms
design quality management, process management, supplier quality management,
education and training, empowerment and involvement, information and
analysis, and customer satisfaction. These CSFs presented act as a guide for
construction organizations contemplating a TQM initiative.
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KRITIČNI ČIMBENICI CJELOVITOG UPRAVLJANJA KVALITETOM ZA
GRAĐEVINSKA PODUZEĆA
Sažetak
Građevinska industrija tradicionalno je zaostajala za drugim djelatnostima u
restrukturiranju kroz cjelovito upravljanje kvalitetom (Total Quality Management –
TQM), kao što nije pratila ni prerađivačku industriju u implementaciji TQM-a, na što ju,
ipak, potiče uspjeh filozofije TQM-a. U ovom se radu iznose imperativi postizanja
kvalitete, te opisuju inicijative za cjelovito upravljanje kvalitetom u građevinskoj
industriji, a zatim analiziraju kritični čimbenici uspjeha koje – u tom smislu – propisuje
14 najznačajnijih pristupa TQM-u. Temeljem opsežne analize literature i proučavanja
postojećih teorijskih pristupa TQM-u, predlaže se 10 kritičnih čimbenika uspjeha
implementacije TQM-a u građevinskoj industriji. Na kraju se dotični čimbenici uspjeha
opisuju iz perspektive same analizirane djelatnosti.
72