KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS CEM-515 PROJECT QUALITY MANAGEMENT

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KING FAHD UNIVERSITY OF PETROLEUM AND MINERALS
CEM-515 PROJECT QUALITY MANAGEMENT
Implementing of TQM in Construction Industry

• Sohail M. Shafi
• ID 230179

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OUTLINE

• Introduction
• Methodology
• Case Study 1
• Case Study 2
• Conclusions

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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 customers requirements
  through a QA system and
• (ii) to achieve continuous improvements (CI).

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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.

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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.

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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.

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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.

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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.

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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
  projects 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.

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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.

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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.

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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.

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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)

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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.

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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.

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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.

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Questions?