MEMBERS:

Mohammad Faizan Raushan (CCEE)

Syed Saqlain Raza (Ce-137/15-16)
Hafiz Muhammad Faisal Raza (Ce-150/15-16)
Muhammad Ali (Ce-155/15-16)

Subject:

TOTAL QUALITY MANAGEMENT

Submitted to:

DR. MUHAMMAD ASIM

Topic:

TQM
Implementation
Contractor
Companies
Pakistan

in
of

Table of Contents

ABSTRACT..............................................................................................3
LITERATURE REVIEW............................................................................4
INTRODUCTION TO TOTAL QUALITY MANAGEMENT........................6
PROJECT SCOPE...................................................................................6
REPORT OBJECTIVES...........................................................................7
DEVELOPMENT OF THE QUESTIONNAIRE..........................................7
CONTRACTOR QUESTIONNAIRE..........................................................8
CONCLUSIONS AND LESSON LEARN................................................20
RECOMMENDATIONS...........................................................................21
REFRENCE............................................................................................22

ABSTRACT
The basic purpose of this study is to analyze the significance and
willingness of contracting firms regarding implementation of Total Quality
Management (TQM) to Pakistani construction industry. The problems and
conclusions are weighed and assessed respectively. The construction
industry in Pakistan has been struggling with quality issues for many years.
A significant amount of the budget is spent each year on infrastructure and
other development projects. Lacking of having a concise and exact
definition of quality was observed. Lack of education is also one of the
reasons why TQM would fail. In addition, corruption, negligence and
irresponsibility are also critical issues. Since the quality outcomes of the
projects are not according to required standards, faulty construction takes
place. Consequently additional investments are required for removal of
defects and maintenance works. It is recommended that extensive
awareness and training programs be initiated to improve the clients
understanding and approach toward quality.

Introduction
Construction Industry plays an important role in the development of any
country. The development of construction industry depends on the quality
of construction products and projects. Quality is one of the critical factors
in the success of construction projects in Pakistan. The main emphasis of
this study is to assess the current status of the construction firms of
Pakistan regarding the implementation of TQM and the implementation of
quality

management

approach

in

prevailing

culture

of

Pakistani

construction industry. The construction industry in Pakistan has been

struggling with quality issues for many years. A significant amount of the
budget is spent each year on infrastructure and other development
projects. Since the quality outcomes of the projects are not according to
required
additional

standards,

faulty

investments

are

construction
required

maintenance works.

for

takes

place.

removal

of

Consequently
defects

and

Total quality management is a human resource driven quality policy. It

emphasizes on enhancing productivity by investing in human resource.
Customer satisfaction, teamwork, empowerment of employees forms the
pillars of total quality management. It is the process of giving employees
the authority to take decisions, relating their work processes and function.

LITERATURE REVIEW
BACKGROUND
TQM is only one of many approaches to getting work done and
accomplishing goals. Several experiences have shown that by using TQM,
organizations can increase their capacity to do work and increase the
quality of work done.
Total Quality Management is a new quality system. Initially, it was
implemented in the manufacturing industry, but due to the high success
rate, its application are using by the field of construction. Even though
TQM is relatively new to the construction industry but a great deal of work
has been done in its regard.

PAPER REVIEWS
Longenecker and Scazzero (1993) carried out a study that revealed that
managers and supervisors in the organization that they surveyed were
reluctant to change their behavior to support the critical organizational
effort of implementing TQM. The reason for this is that it is difficult, even in
normal

times, for

managers

in

any organization

to change their

management style and behavior.

Lakhe and Mohanty (1994) discussed a case study of TQM implementation.
The major obstacles of implementation were:
a) Inadequate knowledge and information about TQM.
b) Doubts of employees about management's intentions.
c) Difficulty in measuring the effectiveness of TQM.
d) Poor internal communication.
e) Difficulty in assessing customer expectations and satisfaction.
f) Insufficient training resources.
There are few studies that looked at the effects of TQM implementation.

McIntyre (2000) concluded on the basis of a large study among 1500

construction firms in the Midwestern United States that there are
substantial

economic

benefits

that

can

be

attained

through

the

implementation of TQM.

Torbica & Stroh (1999) looked at how implementing TQM in construction

industry affects customer satisfaction. They concluded, For the first
time an empirical study has confirmed that implementation of TQM is
positively associated with home-buyer satisfaction. TQM has as its
main thrust continuous improvement in client satisfaction, employee
satisfaction, health and safety, quality and productivity. TQM is the
linkage of the processes that deal with health and safety, productivity
and quality with the real benefit being the synergy between them.

It can be concluded from the above reviews that TQM hasnt been well
received by construction industry because it has been perceived as
another name for Quality Assurance. For Construction organizations to
improve, they must first learn from their mistakes and adapt changing
the trends. Most of the TQM efforts fail because organizations try to
implement TQM techniques without adopting the TQM philosophy. The
focus of the TQM philosophy is to create a satisfied or preferably a
delighted customer. Usually the resistance to TQM culture comes from
the middle management, as they are the most effected party due to the
empowerment of workers.

INTRODUCTION TO TOTAL QUALITY MANAGEMENT

Quality is neither intangible nor immeasurable. Instead, it is a strategic imperative that can be
used to improve the bottom line. Quality is the conformance to requirements, not goodness.

The concept of TQM aims at achieving and sustaining excellence in

organizational activities with focus on customers. This philosophy calls for
a comprehensive approach that needs to be identified and executed to
achieve the desired results. For an organization to be responsive for the
emerging needs, management of each activity has to energize each
individual to recognize, act and deliver the products and services that
meet the customers requirements.
TQM is a culture advocating a total commitment to customer satisfaction,
through continuous improvement and innovation in all aspects of the
business. The customer, in the TQM culture, does not mean only the final
recipient of the organizations end product or services. The customer is
also every individual or department stakeholder within the organization.

PROJECT SCOPE:
The scope of the study includes:
1 Understanding different dimensions of Total Quality Management.
2 Development of final questionnaires for Contractors.
3 Evaluation and analysis of the response given in the questionnaire
forms.
4 Making recommendations/suggestions based on the conducted study.

REPORT OBJECTIVES:
The prime emphasizes of this study are:
1 To assess the current construction industry scenario and practices
prevalent in Pakistan regarding the implementation of TQM and the
implementation of quality management approach in the contracting
firms of Pakistani construction industry.
2 To assess the quality culture in contracting firms in Pakistan
construction industry.

DEVELOPMENT OF THE QUESTIONNAIRE:

A questionnaire was developed initiating with request of personal
information (e.g. work experience, position in company) and company
information (e.g. types of construction works performed, number of
employees). After that thirty (30) questions laid out in nine (09) key areas:
1. Firms Information (1 question)
2. Perception of quality (1 question)
3. Quality in your organization (6 questions)
4. Employee training (1 questions)

5. Culture within the organization (4 questions)

6. Practices in the organization (4 questions)
7. Data acquisition methods (1 questions)
9. Implementation of TQM (2 questions)

CONTRACTORS RESPONSE TO QUESTIONNAIRE

1. What is the importance of Project Management in your organization?

The bar chart indicates that Project management cant be ignored at all. This consensus among
the contractors can be easily seen. Contractors have realized the vital role of management in a
success of any Project.

10

PERCEPTION OF QUALITY (Q2)

2. What is your perception about quality?

Contracting firms are realizing the importance of customer satisfaction which is the basic goal
of TQM. But due to lack of knowledge about TQM we have diversified answer about this
question.
QUALITY IN YOUR ORGANIZATION (Q3~Q8)
3. How does your organization measure quality?

It is clear that customer satisfaction should be the top priority for any contractor to be
successful.

10

11

4. What determines the quality of your projects?

Clients demand is the major key for the quality on projects. But some firms for the sake of
their companys name or for any other reason follow the self created quality standards.

5. Has your organization developed a clear quality policy?

In order to work with major clients within the country and internationally, most contracting
firms feel the need to have a clear quality policy.

11

12

6. Does your organization prepare separate standard operating procedures for each
project before starting execution or handing it over to sub-contractor?

The contracting firms are presently in a practice of preparing a SOP manual for every project
undertaken, before handing it on to the subcontracting firms. This process is project specific
rather than a generalized system.
7. What type of quality improvement system(s) do you have?

Majority of the contracting firms claim to have ISO 9000 which has global worth and
internationally recognized.

12

13

8. To increase productivity would you compromise quality?

If there is a quality and productivity trade off, then it all depends upon the client of the project
to emphasis for maintaining the quality of the project.

EMPLOYEE TRAINING (Q9)

9. How do you train your employees for quality?

A complete mix answer shows that every firm has its own method for training.

13

14

CULTURE WITHIN THE ORGANIZATION (Q10~12)

10. Which code of ethics do you follow within your organization?

Majorities of Contractors use their own code of ethics in their organizational dealings or prefer
to modify the P.E.C. code of ethics (or any other applicable code of ethics) according to their
own needs.
11. What is the involvement of employees in your quality building effort?

Majority of the firms consider the top management involvement as the key factor in their
success.

14

15

12. What is your labor insurance policy in case of a fatal accident or severe injury to a
laborer?

The graph clearly shows that majority of the contractors provide compensation in case of fatal
accidents to employees.
PRACTICES IN THE ORGANIZATION (Q13~Q18)
13. Before the start of the project, do you obtain client commitment to quality?

15

16

Client commitment to quality ensures the contractor that the client will not try to force the
contractor to use substandard material and practices. The industry response in this regard
comes out to be highly positive as shown in the graph that there exists a complete consensus
among contractors.
14. What testing procedures do you follow?

All material testing is prevalent among contractors to ensure high quality standards of
construction. Substandard material can lead to reworks and an unsatisfied end user, resulting
in project failure.

16

17

15. What percent of your projects done so far you found large amount of remedial work
to do?

Almost all of the sample population show minimal amount of remedial work on their projects.
Minimum reworks in most cases suggest that project under consideration passed quality
checks. Minimal rework means that material and labor effort put in during the time of
construction abides with standards.
16. Do you ask for a change order if the client objects about the quality of work?

This shows that most contractors are working for client satisfaction while following the proper
procedures. This also shows that contractors do not take lightly to objections regarding their
quality of work.

17

18

17. Do you encourage your engineer/ project manager to keep a checklist for better
quality assurance?

Majority of the contractors make it compulsory for their project managers to keep checklists
so that quality assurance is better implemented. This shows the commitment to quality of such
contractors.
18. When working on a new project how do you incorporate learning from your previous
projects?

While undertaking new projects, contractors do not usually revise their adopted methodology
before analyzing their previous works for mistakes and implementing their learning from
them. They prefer to find solutions by learning from their mistakes.

18

19

IMPLEMENTATION OF TQM (Q19~Q20)

19. Which of the following factors might motivate you to implement TQM?

Self-motivation for improvement (to make clients delighted) and customer demands are the
major reasons cited by contractors for implementation of TQM in their organizations. It has
been observed that most contractors are implementing some elements of TQM if not all.

19

20

20. What obstacles do you foresee in the implementation of TQM?

Contractors generally believe that unwillingness to change and a misconception that the
application of TQM will lead to the increase in cost and waste of time which is totally contrary
to the reality. These are the major hurdles in the path of TQM implementation to Pakistan
Construction industry.

20

21

CONCLUSIONS AND LESSON LEARN

It is evident from the study that Contractors dominate the construction industry being the
major players and decision makers. The practices adopted by them determine the direction and
trends followed by the construction industry. Resistance to change shown by most of the
contractors reflects their lack of interest in adopting new technologies as they do not want to
break away from the established norms.
It has been observed in our study that, quality in the mindset of the contractor is just to achieve
the client satisfaction, as they think that we are already following standard practices and
acquired international standard certificates, if the previous practices are functioning well why
to adopt new technologies which will may cause cost impact and required more time to
prepare their work power to achieve such standards.
It has been extracted that almost all the contractors have agreed that project management
cannot be ignored at all. Furthermore, contracting firms are realizing the importance of
customers satisfaction which is the basic goal of TQM. Contractors have placed customers
satisfaction on top of their priority list.
Mostly contractors depend upon the demand of their clients to determine the quality of their
projects. Contractors have realized that in order to work with major clients within the country
and globally they need to have a clear quality policy. There is a consensus among contractors
that they will not compromise on quality to increase productivity. TQM emphasizes that
involvement of employees in quality building efforts should be at all levels. But it is seems
that only upper management placed a major rule in implementing quality. There is an absolute
and clear consensus among the all contractors that, they will obtain clients commitment to
ensure the quality of the project. Their response in this regards comes out to be highly
positive. Majority of the contractors have agreed that in order to ensure high quality standards
of construction all material testing is necessary.
Almost all the contractors make it compulsory for their project managers to keep checklist so
that quality assurance is implemented betterly. Customer demand is a major reason cited by
contractor for implementation of TQM in the organization. Contractors generally believe that
the barrier in the implementation of TQM in their firm are unwillingness to change and the
miss conception that the application of TQM will lead to increases in the cost and waste of
time, which in contrary to the reality.

21

22

RECOMMENDATIONS
On the basis of the study and extracted results following recommendations are suggested for
applying better quality management at their ends.

Contractors need to improve their relations with worker and show faith in their
employees.

Employees should be allowed to make decisions regarding their work and should be
encouraged to propose solutions related to work problems.

Contractors have to change their mindset that quality is not only just a matter to
achieve client trust but also to make the end user delight and satisfied

Contractors should conduct internal audit by third party to get a clear image of its
weaknesses and the area which needs improvement.

Contractors of Pakistan should learn about TQM and should develop a clear image
regarding TQM. Many of them think that TQM is an unnecessary exercise which is
cause of wastage of money and time. But in reality the application of TQM will cause
them the save of money and time.

22

23

REFRENCE

Longenecker, C.O. and Scazzero, J.A. (1993), Total quality management from theory
to practice: A case study, International Journal of Quality & Reliability Management,
Vol. 10 No. 5, pp. 24-31.

Total Quality Management: Concepts, Evolution and Acceptability in Developing

Economies ArticleinInternational Journal of Quality & Reliability Management
11(9):9-33 December 1994

McIntyre, C. and Kirschenman, M. (2000). "Survey of TQM in Construction Industry

in Upper Midwest." J. Manage. Eng., 10.1061/ (ASCE) 0742-597X (2000)16:5(67),
67-70.

Torbica, Z.M., & Stroh, R.C. (1999). Impact of total quality management on homebuyer satisfaction. Journal of Construction Engineering and Management, 125 (3),
198203.

23