Quality Management Engineering | Ruiz, 2019

Question #1 :

Why do ISO 9001 certified construction companies fail to capture potentially

lucrative construction market opportunities?

Based on the current situation of the country in terms of accreditation, the holding of an
ISO 9001 certificate does not mean that a company is implementing an effective QMS, to
do that requires a cultural shift. The change from a culture of building to the lowest
quality level and then repairing inevitable defective work, to a culture of producing „right–
first-time‟ output, is required for the demonstration of achievement of successful quality
system application. Corbett and Rastrick (2000), Irani, Beskese and Love (2004) and Koh
and Low (2008) state that there is a definite relationship between corporate culture and
quality in construction projects, and in order to support the necessary elements of such
a QMS, an appropriate corporate culture is a prerequisite. This relationship is “mutually
reinforcing‟ and this means that if the corporate culture is good, the quality system will
be applied appropriately, with the resulting products and services also being good (ibid
2008).

The cultural factors, which are integrated into organizational management and policies,
also play a major role in determining how effectively construction companies implement
their QMSs. This perspective is equally applicable in the Indonesian scenario. From the
few studies that exist on the subject, it is apparent that the cultural values which support
quality system implementation need to be internally driven by the management and staff
of construction companies. Hence, with a strong culture that gives an organization a
distinct identity and drives it to operate effectively (Sai, Wong and Wu 2011), an effective
implementation of the company QMS that also exhibits continuous improvement, is
expected. Such a system should be capable of meeting project owner requirements, and
of providing a high level of customer satisfaction in the area of project delivery.

The successful implementation of an ISO 9001 certified QMS requires a total change in
organizational focus, even to the extent of adopting a new type of culture that must be

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focused on achieving greater customer satisfaction and improving the operational

processes at all levels of the company. Effective QMSs and a strong corporate culture are
mutually bound together, as is evidenced by the failure of many companies that are not
strongly committed to continuous QMS improvement and ultimate customer satisfaction,
being unable to implement quality practices and achieve quality outcomes, thereby
resulting in a lack of high level competitiveness and organizational performance.

Quality Management Systems in Construction

The sub-sections below introduce the general concept of quality and quality management
system (QMS), in the context of the construction sector perspective; also introduced are
the essential concepts of one of the well-known QMSs, the ISO 9001 standard. The two
concepts are reviewed to contextualize the extent and significance of these research
topics. Accordingly, the effectiveness of implementing QMSs and barriers to implementing
the quality system are also justified.

A robust culture-based QMS implementation framework for guiding Indonesian

construction companies in developing and implementing effective and continuously
improving QMSs to achieve better bottom-line outcomes, as well as creating „strong‟
organisational cultures, is considered as a pressing need. Therefore, the responses to
Research Questions 1 and 2 can help with 9 the design and development of the
framework, and to facilitate the evaluation of it’s usefulness.

ISO 9001:2015 sets out the criteria for a quality management system and is the only
standard in the family that can be certified to (although this is not a requirement). It can
be used by any organization, large or small, regardless of its field of activity. In fact, there
are over one million companies and organizations in over 170 countries certified to
ISO 9001. This standard is based on a number of quality management principles including

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a strong customer focus, the motivation and implication of top management, the process
approach and continual improvement.

As construction projects usually involve large quantities of resources and many dynamic
processes, achieving high quality is not only end-product based, but also reflects on the
management of interrelated organizational processes. However, the assessment of the
output of construction companies can often be impeded by different interpretations of
“quality‟ by the service providers and related parties involved. As a result, quality
deliverables at both management and project levels are often not as transparent and
measurable as promised in project designs and contracts. The concept of quality
management systems and, in particular the use of QMS-ISO 9001 standard, are
introduced before discussing effective practices of QMSs and challenges to their
implementation in the global construction industry.

Quality defined in Constructions

With regard to any examination of quality issues in the construction industry, there are
commonly three main terms that require objective definition and discussion. They are -
what is actually meant by „quality‟, „quality management system (QMS)‟, and what
constitutes a „total quality management (TQM)‟ philosophy.

There is no precise or single definition of „quality‟, and although many of the pioneers of
the quality movement and gurus, such as Deming, Juran, Crosby, Feigenbaum, Taguchi
and others, had their own individual definitions of „quality‟, ISO DIS 9000:2000 generally
defines „quality‟ as “the degree to which a set of inherent characteristics fulfill
requirements” (Tricker 2008, 4). Lam, Low and Teng (1994, 15), in the context of
construction, define „quality management‟ as “that aspect of the overall management
function that determines and implements the quality policy”, and „quality system‟ as “the
organisational structure, responsibilities, procedures, processes and resources for
implementing quality 17 management”.

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Total Quality Management (TQM) is generally considered to be a higher level concept of

strategic achievement than that provided by a QMS. McGregor and Palmer (2002) view
TQM, firstly, as an approach to ensure that a whole organisation is involved in producing
high quality outcomes in everything they do; secondly, in improving the continuous
implementation of quality management; and finally, in achieving the primary objective of
the concept, that of customer satisfaction. Based on these objectives and guidelines for
providing continual improved quality management in construction companies, an effective
TQM-based set of values is also an essential requirement for services‟ providers, to
generate qualified activities and achieve the desired outcomes.

Implementing ISO 9000 In A Construction Company

Deming has provided a seven point action plan as follows: Much research has been done
with regard to the implementation of TQM and it is belief that the benefits of higher
customer satisfaction, better quality products, and higher market share are often obtained
following the adoption of TQM by construction companies. It requires a complete
turnaround in corporate culture and management approach As compared to the
traditional way of top management giving orders and employees merely obeying them.
It is believed that the single most important determinant of the success an organization
in implementing TQM is its ability to translate, integrate, and ultimately institutionalize
TQM behaviors into everyday practice on the job. TQM is a way of thinking about goals,
organizations, processes, and people to ensure that the right things are done right the
first time. It is a major organizational change that requires a transformation in the culture,
process, strategic priorities, beliefs, etc. of an organization. The first question that a
construction company must ask itself prior to implementing a formal quality management
system is ‘where should we start?’.

The main challenge facing most construction companies understands what their first step
is for implementing a quality process. In developing a total quality culture in construction,

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one important step is to develop a construction team of a main contractor and

subcontractors who would commit to the quality process and develop a true quality
attitude. Thus, the main contractor should only select subcontractors who have
demonstrated quality attitude and work performance on previous jobs. The problem is
that most quality management systems are not meant for small to medium businesses,
which comprise the majority of the construction firms in the U.S., who neither have the
structure nor the management time to support the recommended ‘top-down approach’
which suits large companies, for which the quality manuals are written. In small to
medium construction companies, this kind of ‘top-down approach’ is criticized by Asher,
(1998) who believes that like every quality management systems before, applies only to
large organizations. In his argument, small to medium construction companies neither
have the structure or the management time to support such implementation.

Question #2

Can TQM strategy be considered as a set of practices?

Total Quality Management is the model of operations improvement

(Slack, et al. 2001)

The introduction of total quality management (TQM) has played an important role in the
development of contemporary management. Quality, considered a key strategic factor in
achieving business success, is more than ever required for competing successfully in
today’s global market place (Dean & Evans, 1994), and it has become the key slogan as

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organisations strive for a competitive advantage in markets characterised by

liberalisation, globalisation and knowledgeable customers (Sureshchandar,
Chandrasekharan, & Anantharaman, 2001).

It is important to note that we adopt a new perspective when examining the relationship
between TQM and innovation (Prajogo & Sohal, 2003b; Hoang, Igel, & Laosirihongthong,
2006), where the degree of innovation is considered as an organisational characteristic
(independent variable) that influences TQM practices (dependent variable).

TQM as operational strategy The literature presents so many definitions and descriptions
of TQM that sometimes it seems as if each author has its own definition and each
organisation has its own implementation (Watson & Korukonda, 1995). However, no TQM
discussion is complete without acknowledging the work of the five best known TQM
experts, or ‘quality gurus’: Deming, Juran, Feigenbaum, Crosby and Ishikawa. In a recent
study, Reed, Lemark, and Mero (2000) systematically reviewed the work and ideas of
these TQM experts – Deming (1982, 1986), Juran (1974, 1988, 1989, 1992), Crosby
(1979, 1996), Feigenbaum (1951, 1983, 1991), and Ishikawa (1985) – and pointed out
the shared similarities on TQM elements. This review revealed that they all agreed on the
importance of the following six key elements: customer satisfaction, cost reduction,
leadership and top management commitment, training and education, teamwork and
organisational culture.

In addition to the complete agreement reflected in the above six elements, Reed et al.
(2000) also found commonly shared differences regarding the other TQM elements. The
role statistical tools play in improving quality control was emphasised by everyone except
Crosby (1996), who implied that the use of statistical control was not a core quality
management issue. Similarly, while Feigenbaum, Ishikawa, and Juran stressed product
design, Deming and Crosby did not. With the exception of Crosby, all mentioned planning,
but each dealt with different aspects of it. Juran covered all facets of planning, Deming
was concerned mostly with the stages of planned action, while Feigenbaum and Ishikawa
focused on feedback and control. Let us take a look at some of the definitions and TQM
elements that other researchers have proposed.
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TQM can be defined as a set of techniques and procedures used to reduce or eliminate
variation from a production process or service-delivery system in order to improve
efficiency, reliability, and quality (Steingrad & Fitzgibbons, 1993). Vuppalapati, Ahire, and
Gupta (1995) stated that TQM is an integrative philosophy of management for the
continuous improvement of product and process quality in order to achieve customer
satisfaction. According to Dean and Bowen (1994), TQM is a management philosophy or
an approach characterised by principles, practices, and techniques. They pointed out
three principles that most quality frameworks had in common – customer focus,
continuous improvement, and teamwork. Each principle is implemented through a set of
practices, and these practices, in turn, are supported by a broad set of techniques.
Anderson, Rungtusanatham, and Schroeder (1994) identified some core TQM
components derived from Deming’s 14-point programme using the Delphi method. These
components reflect Deming’s principles and are either explicitly or implicitly similar to the
factors included in the other quality management frameworks.

Are there any differences in implementing TQM between companies according

to size, ownership, type of industry, and degree of innovation (measured by
the number of new products and services)?

Concerning the relationship between TQM and innovation in the literature, there are two
opposing schools of thought. One school believes that TQM supports innovation, implying
that organisations that implement TQM will be successful in innovation. The alternative
school argues that TQM impedes innovation. The main debatable issue is whether or not
the nature of TQM practices fosters innovation.

Quality is the mantra of every enterprise which aspires to be on the cutting edge.
Organizations have taken up quality management systems world over to strengthen their
competitive advantage and in their march towards excel- lence. Despite a tendency to
associate quality systems to manufacturing set-ups, the quality jargons have become all
pervasive and have transcended every sphere of act.

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In contemporary business environments with an increasing degree of globalization and

international supply relationships there is a growing demand for comparable quality
standards. More and more buying decisions are not only based purely on the attributes
of the product itself but also on the quality standards of the organization that produces
it. Accredited companies tend to by their products only form accredited ones. The ever
increasing quality-focus made quality become a constant element of the marketing-mix
and a strategic success factor (Anonymus, 2002). The implementation and application of
Total Quality Management (TQM) has become a philosophy for most of today’s
companies. The following essay will outline the main elements of TQM, describe
implementation processes and evaluate the needs and threats of TQM.

As the markets are getting more and more competitive and are subject to enormous
changes, there are several aspects that can be influenced in order to create a competitive
advantage for a business.The aspects, described above underline the major changes in
the three areas of social, economic and technical kind. Every company has to adapt to
these in the best possible way in order to survive in the changed surroundings. TQM can
be seen as one of these strategies to gain competitive advantage in today’s markets.
TQM helps to improve internal processes, satisfying customer’s-needs in the long run
cutting down the cost of running a business (Dale and Oakland 1991, pp. 11-13) and has
the major positive impact on creating competitive advantages.

Total quality management can support and strengthen the position of a company and is
described as the ‘fast track’ to improve performance and profitability in the companies’
processes (Anonymus, 2002) in order to be able to act more competitively in the markets.

The accordance between services/goods and expectations can be defined as quality. It is

essential what consumers regard as important, based on their subjective requirements.
Where technical aspects are measurable, several elements which are crucial cannot be
measured. Quality is the overall impression of partial-qualities and can be either
interpreted subjectively or objectively (Gabler 1999).

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As there are several different definitions of TQM available, this essay will use
Freigenbaum’s definition, that defines TQM as “an effective system for integrating the
quality development, quality maintenance and quality improvement efforts of the various
groups in an organization so as to enable production and service at the most economical
levels which allow for full customer satisfaction” (Feigenbaum 1986).

The main goal of an operation that implements TQM is to design and improve its business-
processes corresponding to its strategies and to involve its employees and resources in
the maximum efficient way in order to reach the following goals:

- Customer satisfaction: fulfil the expectations of internal and external customers.

- Employee satisfaction: fulfil the expectations of the employees
- Public Image/responsibility: act in a responsible way

The concept of TQM

The main concept of the TQM-approach, compared to the traditional quality assurance is
that quality is not limited to products or services. It is a systematic process, which runs
throughout the whole company. This splits the steps of the different processes up into
customer-supplier relationships, where there is no difference between internal and
external customers. This enables a customer-focused thinking and acting throughout the
company and prerequisites to meet external requirements (Freiling 1994, 31-33).

In order to set up the customer’s and supplier’s interaction as an efficient concept, it is

vital to define what the requirements of the customers are and to make sure, that those
can be met by the processes. To ensure that these requirements can be fulfilled, Oakland
(1999, 14) defines three elements: a good management system, tools to control the
processes and teamwork that have to be set up. They are complementary but all share
the same uncompromising commitment to quality.

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To push TQM into any form of organization, a total change in the commitment of the
management is required. Ideally it starts with the senior management and is distributed
and flat down through the business.

There are several approaches of using the three elements of the model. A company can
either use one or more of them as a spearhead to drive the quality concept through the
organization. Some companies start their TQM initiative with a new computer system,
some with the installation of a new management. There is now best practice approach,
as the structures and situations of the different companies vary.

Main Aspects of TQM

EMPLOYEE-ORIENTATION -Every employee has two functions within today’s businesses

as he on one hand generates cost and on the other hand income. The employees,
involved in planning and conducting goods and service processes have an enormous
impact on the produced quality and their involvement into the TQM processes.

CUSTOMER-ORIENTATION - It is crucial within the TQM processes, that the company

regards and treats its workforce as internal-customers and manages to address the
relevance of the internal customer-supplier relationships. If the employees adapt to it and
live this concept, it will result in an increased work-satisfaction and motivation of
everybody. Implementing this concept will result in an improved and intensified
communication within the supply-chains, helping to reduce misunderstandings. The new
status will end up in a positive communication to external instances and a build up a
positive overall image of the company (encouraging sales), an identification of employees
with their corporation, and the willingness to takeover higher responsibilities.

CONCLUSION:

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In short, small to medium construction companies are at a huge disadvantage in trying

to implement quality systems, due to their size, and the problems associated with being
small. Having into a triple AAA construction firm in Manila, I can say that every company
has its own strength and weakness. From the management as Contractor to Sub
Contractor. So, any TQM techniques develop by our GURUs could enhance one
management office, not necessarily ISO 9000. These do not have the management time
to support implementation; there is also, the issue of the cost of implementing the system
itself, fear and inertia that result from being owner-managed. At the same time, a study
by Nwanko, (2000) found that implementing quality management systems in most
construction companies revolve around the ISO 9001-type implementation. As mentioned
before, the process of obtaining an ISO 9001:2000 certificate is not too complex. It
involves putting together the necessary documents to prove to the external auditor that
the system exists.

Each of these individuals contributed towards the philosophy of Total Quality

Management in a different way, and with a different focus. They all developed different
tools for different quality purposes, but they all had one common philosophy, which was
Total Quality

ISO standards help to make the construction industry more effective and efficient by
establishing internationally agreed design and manufacturing specifications and
processes. They cover virtually every part and process of the construction project, from
the soil it stands on to the roof. ISO standards also provide a platform for new
technologies and innovations that help the industry respond to local and global challenges
related to demographic evolution, natural disasters, climate change and more

TQM is one element of the operations improvement processes, which is not only
concerned with quality but also with all aspects of operation’s performance and
improvement. . On top of a solid foundation, four pillars are constructed that include
process management, quality measurement and control, employee training, and
customer focus. A good management system, tools to control the processes and

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teamwork that have to be set up. They are complementary but all share the same
uncompromising commitment to quality.

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