Critical Success Factors of TQM Implementation on Construction Projects in Gaza Strip

The Islamic University - Gaza Higher Education Deanship Faculty of Engineering Civil Engineering Construction Management Program الجامعة الاسلامية-غزة عمادة الدراسات العليا كلية الهندسه الهندسة المدنيه برنامج ا دارة التشييد Critical Success Factors of TQM Implementation on Construction Projects in Gaza Strip عوامل النجاح الحاسمة في تطبيق إدارة الجودة الشاملة على مشاريع التشييد في مدينة غزة Submitted By Mustafa Al-Tayeb Supervised By Dr. Jihad T. Hamed Dr. Salah R. Agha A thesis Submitted in partial Fulfillment of the Requirement for the Degree of Master of Science in Construction Management 1429 ه - 2008 م

بسم االله الرحمن الرحيم ( قل ا ن ص ل ات ي و ن س ك ي و م ح ي اي و م م ات ي ل له ر ب ال ع ال م ين لا ش ر يك ل ه و ب ذ ل ك ا م ر ت و ا ن ا ا ول ال م س ل م ين ) (الا نعام: 163-162 ). عن ا مير المو منين ا بي حفص عمر بن الخطاب رضي االله عنه قال سمعت رسول االله صلى االله عليه وسلم يقول "ا نما الا عمال بالنيات وا نما لكل امري ما نوى فمن كانت هجرته ا لى االله ورسوله فهجرته ا لى االله ورسوله ومن كانت هجرته ا لى دنيا يصيبها و امرا ة ينكحها فهجرته ا لى ما هاجر ا ليه " متفق عليه. II

Acknowledgments I am grateful to my supervisors Dr. Jihad Hamed and Dr. Salah Agha for their professional advice, useful guidance, and excellent support through all stages of preparing this thesis. My deep thanks to Prof. Adnan Enshassi, Prof. Rifat Rustom, Dr. Kamalain Sha'ath and Dr. Said Ghabayen for their sincere support and help. Special thanks for statistician (Dr. Samir Saffi) who supported me very much. Special thanks to Palestinian contractors, consultants and owners for their participation in filling the questionnaire and providing important information for this study. Finally, very special thanks to my parents, wife, and family for their never ending patience, and understanding. III

Abstract The construction industry has been one of the most important industries for the development of the Palestinian infrastructure and economy. The Total Quality Management TQM is considered as one of the most important approaches to success of construction industry. The findings of available research revealed the importance of TQM implementation. The aim of research is to determine the success factors necessary for the implementation of TQM at various phases of the project planning, design and construction in Gaza Strip. Then develop a computer model to assess an organization s present strengths and weaknesses with regard to its use of quality management methods. The questionnaire is used as a tool to data collection. The research determines a total of 8 main factors with 81 sub factors were considered in the questionnaire obtained from an extensive review of TQM literature from quality gurus, quality award models, other quality management research and experts. A factor analysis was carried out on the collected data, after conducted on the reliability and validity analysis of the results and the Pareto principle was used to identified the critical success factors of TQM implementation on construction projects in Gaza Strip. A model has been developed. This model designed to run under Microsoft Excel. Microsoft Excel is used in developing model as most organizations in Gaza Strip are familiar with it. The results of the study clearly indicate that there are seven critical success factors with 38 critical sub factors were needed for the successful implementation of TQM in Gaza Strip organizations. IV

الخلاصة تعتبر صناعة التشييد واحده من أهم الصناعات المو ثره في تطوير الاقتصاد والبنية التحتية الفلسطينية. آما و تعتبر إدارة الجودة الشاملة واحدة من أهم العناصر المو دية لنجاح صناعة التشييد و البحوث المتاحه التي تم مراجعتها تعكس أهميه تطبيق إدارة الجودة الشاملة. يهدف هذا البحث لتحديد عوامل النجاح الحاسمه اللازمة لتطبيق إدارة الجودة الشاملة في المراحل المختلفة للمشاريع في قطاع غزه سواء في مرحله التخطيط أو التصميم أو التنفيذ و اعتمادا على العوامل الحاسمة لنجاح إدارة الجودة الشاملة تم تطوير نموذج محوسب يساعد المنظمه في تحديد مواطن القوة والضعف بالنسبه لكيفيه استخدام اساليب ادارة الجوده. تم استخدام الاستبيان آاداة لجمع البيانات حيث أن الاستبيان يحتوي على 8 عوامل ري يسية متضمنة ل 81 عامل فرعي تم تحديدها من خلال استعراض واسع النطاق للمراجع و الا بحاث والنظريات والنماذج ذات الصلة با دارة الجودة الشاملةو استشاره الخبراء في هذا ا ال. تم تحليل الاستبيان بعد جمعه وبعد التحقق من عامل الاتفاق الداخلي والثبات في الاستبيان آما واستخدم مبدأ باريتو لتحديد العوامل الحاسمه في تطبيق إدارة الجودة الشاملة على مشاريع التشييد في مدينه غزه. النموذج الذي تم تطويره مصمم على برنامج مايكروسوفت اآسل حيث أن هذا البرنامج يعد من أآثر البرامج المستخدمة لدى المنظمات في قطاع غزه حيث إ ا على دراية باستخدامه. نتاي ج الدراسة تشير بوضوح الى ان هناك سبعة عوامل حاسمه للنجاح تتضمن 38 عنصر من العناصر الفرعيه الحاسمه لتطبيق ادارة الجوده الشامله على المنظمات في قطاع غزة بشكل ناجح. V

Abbreviations AHP BS CSF CSsF ECDAR Analytic Hierarchy Process British Standards Critical Success Factors Critical Success sub Factors Palestinian Economic Council for Development & Reconstruction EFQM EN EQA GDP ISO MCSsF PCBS QA QC European Foundation for Quality Management European Norm European Quilt Association Gross Domestic Product International Organization for Standardization Modify critical success sub factors Palestinian Central Bureau of Statistics Quality Assurance Quality Control VI

Table of Contents Dedication.......Π Acknowledgments....Ш Abstract...... IV Arabic Abstract.........V Abbreviations...VI Table of Contents.......VII List of Tables..... XII List of Figures......XIV Chapter 1 Introduction...1 1.1 The nature of the construction industry..1 1.2 Total Quality Management.....1 1.3 Construction industry and economy in Palestine...2 1.4 Research aim and objectives...........3 1.4.1 Research Aim.......3 1.4.2 Research Objectives...3 Chapter 2 Literature review...4 2.1 Quality definitions.....4 2.1.1 Transcendent approach......4 2.1.2 Product-based approach....4 2.1.3 User-based approach...4 2.1.4 Value-based approach...5 2.1.5 Manufacturing-based approach...5 2.2 Historical development of quality management......5 2.2.1 Quality inspection stage...5 2.2.2 Quality control stage.......6 2.2.3 Quality assurance stage....6 2.2.4 Total quality management stage....7 VII

2.3 Quality cost........7 2.3.1 Prevention cost...7 2.3.2 Appraisal cost......7 2.3.3 Internal failure costs....7 2.3.4 External failure cost......7 2.3.5 Economic model for optimum quality costs.....8 2.4 Total Quality Management gurus........8 2.5 Construction vs. manufacturing.. 12 2.6 Quality cost of TQM..13 2.7 Quality award models....13 2.7.1 Malcolm Baldrige national quality award.....14 2.7.2 European quality award...... 15 2.7.3 Deming application prize......16 2.8 Success factors of TQM implementation on construction projects....17 2.8.1 Leadership......17 2.8.2 Resource management..18 a) Human resources.... 19 b) Information resources... 19 c) Financial resources....19 d) Material resources.19 e) Technological resources 19 2.8.3 Strategic and plan.19 2.8.4 Process management.20 a) Quality process system..20 b) Customer relationship management..21 c) Coordination and structure....21 2.8.5 Customer satisfaction.......21 2.8.6 Training and education. 22 2.8.7 Continuous improvement.23 2.8.8 Communication....23 2.9 Conclusions...23 VIII

Chapter 3 Methodology...25 3.1 Research procedures.25 3.2 Research population.....26 3.3 Sample size...27 3.4 Sample selection... 27 3.5 Questionnaire design.....28 3.6 Pilot study......29 3.7 Empirical study.29 3.7.1 Validity of questionnaire..29 a) Criterion related validity......29 b) Structure validity of the questionnaire.....30 3.7.2 Validity test..30 3.7.3 Reliability of the research...31 3.7.4 Reliability test...31 3.8 Data collection...32 3.9 Statistical analysis tools....32 3.9.1 Cronbach's alpha...32 3.9.2 The relative importance index.......33 3.9.3 Spearman rank correlation coefficient....33 3.9.4 Degree of agreement/disagreement among raters...34 Chapter 4 Analysis and discussion...35 4.1 Study population... 35 4.1.1 Type of organization...35 4.1.2 Years of experience...36 4.1.3 Full time employees...36 4.1.4 Companies classification...37 4.1.5 Respondent position...38 4.1.6 Projects executed...38 4.1.7 Construction dollar value...39 IX

4.2 Sub success factors of TQM implementation...40 4.2.1 Leadership...40 4.2.2 Resource management...43 a) Human resources...43 b) Information resources...44 c) Financial resources...45 d) Material resources...46 e) Technological resources...47 4.2.3 Strategy and plan...48 4.2.4 Process management... 49 a) Quality process system...49 b) Customer relationship... 51 c) Coordination and structure... 51 4.2.5 Customer satisfaction... 52 4.2.6 Training and education... 53 4.2.7 Continuous improvement... 55 4.2.8 Communication... 56 4.3 Main success factors of TQM implementation...57 4.3.1 Leadership...58 4.3.2 Resource management...58 4.3.3 Strategy and plan... 59 4.3.4 Process management... 59 4.3.5 Customer satisfaction...60 4.3.6 Training and education...60 4.3.7 Continuous improvement...61 4.3.8 Communication...62 4.4 Degree of agreement among the different types of organizations...62 4.5 Means differences of the organization type...63 4.6 Correlation between each main factor in part three of the questionnaire and the corresponding factor in part two...64 X

Chapter 5 Model Development...66 5.1 Model development steps...66 5.2 Model application...81 5.3 Model verification...81 5.4 Using the model...81 Chapter 6 Conclusions and Recommendation...82 6.1 Conclusions...82 6.2 Recommendation...84 References...85 List of Appendixs...90 Appendix (A) Questionnaire...91 Appendix (B) Validity of Questionnaire...104 Appendix (C) Excel Model...112 XI

List of Tables Table 2.1: Fundamental factors for effective TQM implementation......9 Table 2.2 Malcolm Baldrige national quality model...14 Table 2.3: European quality model...15 Table 3.1: Sample size for each organization...27 Table 3.2: Likert scale...28 Table 3.3: Correlation coefficient of each item of Leadership and the total of this field...30 Table 3.4: Cronbach's Alpha for each field of the questionnaire and the entire questionnaire...31 Table 3.5: Number of the questionnaire respondents...32 Table 4.1: Leadership sub-factors according to overall respondents opinions...42 Table 4.2: Human resources sub-factors according to the overall respondents' opinion...44 Table 4.3: Information resources sub-factors according to the overall respondents opinion...45 Table 4.4: Financial resources sub-factors according to the overall respondents' opinion...46 Table 4.5: Material resources sub-factors according to the overall respondents' opinion...47 Table 4.6: Technological resources sub factors according to the overall respondents' opinion...47 Table 4.7: Strategy and plan sub-factors according to the overall respondents' opinion...49 Table 4.8: Quality process system sub-factors according to the overall respondent opinion...50 Table 4.9: Customer relationship sub-factors according to the overall respondent opinion...51 Table 4.10: Coordination and structure sub-factors according to the overall respondent opinion...52 Table 4.11: Customer satisfaction sub-factors according to the overall respondent opinion...53 Table 4.12: Training and education sub-factors according to the overall respondent opinion...54 Table 4.13: Continuous improvement sub-factors according to the overall respondent opinion...56 Table 4.14: Communication sub-factors according to the overall respondents opinion...57 Table 4.15: Main total quality management factors according to the overall respondents' opinion...57 Table 4.16: Kendall's Coefficient of Concordance for each group...63 Table 4.17: Kruskal- Wallis test for factors affecting the TQM implementation in construction projects...64 Table 4.18: Correlation between each main factor influencing the implementation of TQM and the corresponding field...64 Table 5.1: The importance percentage for the main factors...67 Table 5.2: the importance percentages for groups factors under process management...68 XII

Table 5.3: The importance percentages for group factors under resource management...68 Table 5.4: The importance percentage for sub-factors...69 Table 5.5: Cumulative percentages of sub-factors in descending arrangement...73 Table 5.6: Modify critical success sub factors of TQM implementation...78 XIII

List of Figures Fig. 2.1: Economic of quality of conformance...8 Fig. 3.1: The methodology flow chart...26 Fig. 4.1: Distribution of organization based on type...35 Fig. 4.2: Percentage of respondents related to experience years...36 Fig. 4.3: Number of full time employees vs type of organization...37 Fig. 4.4: The percentage of respondent according to the classification...37 Fig. 4.5: Respondent position vs type of organization...38 Fig. 4.6: Number of projects executed between 1998 to 2008...39 Fig. 4.7: The dollar value of construction projects performed between 1998 to 2008...39 Fig. 5.1: Pareto chart for TQM sub factors number...77 Fig. 5.2: Pareto chart for TQM sub factors percentage...78 Fig. 5.3: Critical success factors of TQM implementation...80 XIV

Chapter 1 Introduction 1.1 The nature of the construction industry A construction project usually spans several years and goes through many phases. They are typically described as engineering planning, concept design, bid and proposal, engineering design, procurement, construction, acceptance and test, pilot run, etc. These individual phases can be carried out by different organizations at different stages. The performance of each phase will affect the quality of the project (Tan and Lu, 1995). The quality of construction problems can invariably be traced back to the problem of the quality of design, such as error, incompleteness, and lack of constructability. Since the cost of the design phase accounts for only about 3-10 per cent of the project on average, most of the research into and discussion of the quality of construction projects have focused on the construction phase, and seldom on the design phase. The quality of design of projects leads to the quality of the construction design and the competitiveness of the engineering firms. On the other hand the construction industry is typified by a highly differentiated, fragmented and loosely structured system. The skills, loyalty and orientation of professionals and practitioners in the industry have developed in an environment of specialization, differing traditions and often opposing interests. Attempts at integration, if any, are presently weak. In addition, the short-term nature of construction projects does not help to make things better. New methods of procurement are therefore required to help overcome the inhibitive tendencies posed by the complex nature of construction. There is an urgent need to look at the right ways of delivering buildings to facilitate doing the right things right rather than simply doing them right (Pheng and Ke-Wei 1996). 1.2 Total Quality Management Total Quality Management (TQM) appears to be a concept which is difficult to summarize in a short definition. TQM is a process lead by senior management to obtain involvement of all employees in the continuous improvement of the performance of all activities (Harris et al 2006). TQM is a continuous process of incremental improvements. TQM may take years to be put in place within an organization but a start could be made with fruitful short-term successes. 1

It should be remembered at this phase that TQM is a process-oriented and not so much result-oriented. If the processes are right, the results (i.e. quality improvements) are likely to follow. TQM gives an organization a competitive edge. It refines the quality of work life by getting management and employees involved in identifying and solving work problems. Its prevention-based approach adds to organizational strength and improves morale and productivity. Good quality work promotes a sense of pride. Any organization which ignores TQM has a less opportunity of competitiveness. This would, of course, include the construction industry. Clearly, the whole construction industry is project-oriented, so improved quality performance must be project-related and include the whole project team. The main contractors, suppliers, subcontractors, consultants, and above all the owners must be involved in the process. The TQM philosophy, if interpreted effectively, would generate a mutually rewarding scenario for all parties in the construction industry. It will help to encourage the open addressing of problems, place value on long-term relationships, enhance professionalism and skills in all of the construction sector and in the final analysis, help to achieve the intended project objectives and benefits (Pheng and Ke-Wei 1996). 1.3 Construction industry and economy in Palestine Palestine is almost totally dependent on the economy of Israeli occupation. This situation did not come about by accident: it was created to serve the interests of the occupying power. More than 80% of exports are directed to Israel, from which about 90% of imports originate. Palestine experiences a trade deficit with Israel because, after years of neglect, it lacks a broad, competitive industrial and agricultural base. This situation is further compounded by Israeli restrictions on the volume, destination and sources of Palestinian trade (PECDAR, 2007) The construction sector in Palestine experienced a considerable growth in the aftermath of 1967; its share of GDP increased from less than 9 % in 1985 to more than 23 % in 1995. During that period the sector's contribution fluctuated in an upward long-run trend bounded by 9 % and 19 % from 1970 to 1980, and by 15,2 % and 23 % from 1989 to 1995. However, it appears that in 2006 the construction sector's contribution to the GDP was reduced to 12 % due to the second Intifada in Palestine (PCBS, 2007). 2

1.4 Research aim and objectives 1.4.1 Research Aim The aim of this study is to determine the critical success factors necessary for the implementation of total quality management at various phases of the project planning, design and construction and to develop a model based on these factors assess an organization s to implementing TQM on construction industry in Gaza Strip. 1.4.2 Research Objectives 1. Define the critical success factors that affect the quality during project phases. This serves as the basis and reference point for implementing total quality management in the construction industry; 2. Study the degree of consistency in terms of perceptions of quality between the construction team and other related teams during the project phases; 3. Derive the relative weights of the impacting factors to provide the guidelines to implementing total quality management; 4. Develop a model to help in implementing TQM during the different phases of the project in Gaza Strip. 3

Chapter 2 Literature Review 2.1 Quality definitions Quality is an important issue in the modern competitive business world. Like the 'theory of relative' quality is sometimes expressed as a relative concept and can be different things to different people, contexts, and industry. Quality is defined based on five approaches (Dahlgaard et al, 2005): 2.1.1 Transcendent approach Walter Shewhart, (1931) first defined quality as "the goodness of a product" this view referred to as the transcendent "transcends, to rise above or extend notably beyond ordinary limit" definition of quality (Evans and Lindsay, 2001). The transcendent definition of quality is derived from philosophy and borrows heavily from Plato s discussion of beauty. From this view point, quality is synonymous with innate excellence. The assumption is that quality is both absolute and universally recognizable. It is clear that approach to defining quality is highly subjective (Dahlgaard et al, 2005). 2.1.2 Product-based approach Another definition of quality is that it is a function of a specific, measurable variable and that differences in quality reflect differences in quantity of some product. The product-based approach has its roots in economics. Differences in the quantity of some ingredient or attribute possessed by the product are considered to reflect differences in quality. This view of quality, based on a measurable characteristic of the product rather than on preferences, enables a more objective assessment of quality. As a result, quality is often mistakenly assumed to be related to price, the higher the price, the higher the quality (Evans and Lindsay, 2001). 2.1.3 User-based approach In the user-based definition, quality is the extent to which a product or service meets and/or exceeds customers expectations. This approach is marketing-based, and emerged primarily out of the services marketing literature. As the service sector grew in the US and other economies, the customer s perspective became increasingly more important in determining quality. However, the impact of the customer s viewpoint can be seen in several of the early definitions and discourses on quality. For example, In 1951, Juran conceptualized 4

that quality was composed of two parts: the quality of design and the quality of conformance. The quality of design, in essence, referred to providing satisfaction to customers by designing products that meet their needs. The user-based definition is widely accepted and considered one of the key concepts of TQM (Sebastianelli and Tamimi, 2002). 2.1.4 Value-based approach The value-based definition equates quality with performance at an acceptable price, or alternatively conformance at an acceptable cost. This definition is derived from traditional economic models, and is based on the notion that consumers often consider quality in relation to price. In 1951, Feigenbaum introduced this idea when he defined quality as best for certain customer conditions, the conditions being the actual use and selling price of the product. Here, the notion of worth is incorporated into the definition of quality, making this more subjective than objective (Sebastianelli and Tamimi, 2002). 2.1.5 Manufacturing-based approach A fifth approach of quality is manufacturing-based approach. That is, quality is defined as the desirable outcome of engineering and manufacturing practices, or conformance to specifications (Evans et al, 2001). This definition is basis for statistical quality control. It has an internal focus, in contrast to the external focus of the user-based approach, and quality is considered an outcome of engineering and manufacturing practices. Deviations from design specifications result in inferior quality, and consequently increased costs due to scrap, rework or product failure. This definition allows for the precise and objective measurement of quality, although it has limited applicability for services (Sebastianelli and Tamimi, 2002). 2.2 Historical development of quality management The development of quality management can be defined in four stages: quality inspection, quality control, quality assurance, and total quality management (Dale, 2003). 2.2.1 Quality inspection stage Quality management started with simple inspection-based systems. Under such a system, one or more characteristics of a product are examined, measured or tested and compared with specified requirements to assess its conformity with specification or performance standards. This system is used to appraise the input, output and assemblies in the 5

production process. It is undertaken mainly by staff employed specifically for this purpose. The work which does not conform to specifications may be reworked or causes claim. In some cases, inspection is used to grade the finished products. The system is an after-thefact screening process with no prevention content other than, perhaps, the identification of suppliers, operations or workers non-conforming products. Simple inspection-based systems are usually wholly in-house and do not directly involve suppliers or other external party (Dale, 2003). 2.2.2 Quality control stage Quality control is defined in BS, EN, ISO 8402 as "The operational techniques and activities that are used to fulfill requirements for quality"(mccabe, 1998). Under a system of quality control, product testing and documentation control became the ways to ensure greater process control and reduced non-conformance. Typical characteristics of such systems are performance-data collection, feedback to earlier stages in the process, and self-inspection. While screening inspection is again the main mechanism for preventing products which are outside the specification from being shipped to customers, quality control measures lead to greater process control and a lower incidence of non-conformance (Dale, 2003). In construction, this process includes first, setting specific standards for construction performance, usually through the plan and specifications; second, measuring variances from the standard; third, taking action to correct or minimize adverse variance; and finally, planning for improvements in the standards themselves and conformance with the standards (Barrie and Paulson, 1992). 2.2.3 Quality assurance stage Quality assurance is defined in BS, EN, and ISO 8402 as "All those planned and systematic actions necessary to provide adequate confidence that a product or service will satisfy given requirements for quality". The quality assurance stage came with the change away from product quality towards system quality. In this stage, an organization sets up a system for controlling what is being done and the system is audited to ensure that it is adequate both in design and execution. Characteristics of this stage are the use of quality manuals, procedures, work instructions, quality planning, quality audits, etc. The fundamental difference is that quality assurance is prevention-based while quality control is inspectionbased (McCabe, 1998). 6

2.2.4 Total quality management stage Total quality management (TQM) stage is the highest level, involving the application of quality management principles to all aspects of the business. TQM requires that the principles of quality management be applied in every branch and at every level in an organization. ISO 8402:1994 defines TQM as a management approach of an organization centered on quality, based on the participation of all its members and aiming at long-term success. This is achieved through customer satisfaction and benefits to all members of the organization and to society (Dale, 1999). 2.3 Quality cost The cost of quality is generally classified into four categories (Juran and Gryna, 1993): 2.3.1 Prevention cost: Are all of the costs expended to prevent errors from occurring in all functions within an organization. They include quality planning cost, new product review cost, process control cost, quality audit cost, supplier quality evaluation cost and training cost. 2.3.2 Appraisal cost: These include all activities undertaken while conducting inspections, tests and other planned evaluations used to determine whether products and/or services conform to their requirements. Requirements include specifications, as well as engineering documents and information pertaining to procedures and processes. All documents that describe the conformance of the product or service are included. 2.3.3 Internal failure costs: Include scrap cost, loss cost, rework cost, failure analysis cost, re-inspection and retesting cost and downgrading cost. 2.3.4 External failure cost: Are the costs that are associated with defects that are found after using the product. They may include warranty charges cost, complaint adjustment cost, returned material cost and allowances cost. 7

2.3.5 Economic model for optimum quality costs. This model shows three curves: failure costs, costs of appraisal plus prevention, and sum of the curves. Failure costs are zero when the product is 100 percent good. As nonconformance increases, the failure costs rise rapidly. At 100 percent nonconformance (the left-hand boundary of the chart), the product is 100 percent defective. At this point, none of the units are good, and the failure cost per good unit becomes infinite. When the product is 100 percent defective, the cost of appraisal plus prevention is zero (left-hand boundary of Fig. 2.1). To improve conformance, costs of appraisal and prevention are increased until perfection is approached. The costs of appraisal and prevention rise asymptotically, becoming infinite at 100 percent conformance. The total quality cost curve (summation of failure, appraisal and prevention costs) represents the total quality cost per good unit. Fig. 2.1: Economic of quality of conformance (Juran and Gryna, 1993) 2.4 Total quality management gurus TQM is a relatively new concept in the construction industry, but it has made a significant impact during the past two decades. Conceived by (Deming, 1986) shortly after World War II, TQM was first applied in the manufacturing sector. The principles of TQM helped the companies regain their edge in the highly competitive worldwide manufacturing arena. Soon after the construction companies began to recognize the benefits of TQM in their market sector (Gould and Joyce, 2003). 8

An extensive review of literature was carried out to study the concept of TQM from quality gurus such as Deming, Juran, Crosby, and Ishikawa. Their propositions are the foundation for understanding the concept of TQM. Table 2.1 presents the main principles and practices of TQM proposed by these quality gurus. Table 2.1: Fundamental factors for effective TQM implementation Quality gurus Deming lists the essential fourteen points a company must integrate into its system to become TQM successful (Gitlow et al, 1995) Fundamental factors for effective TQM implementation Point 1: Create constancy of purpose towards improvement of product and service, with the aim to become competitive and to stay in business, and to provide jobs Point 2: Adopt the new philosophy. We are in a new economic age. Global management must awaken to the challenge, must learn their responsibilities, and take on leadership for change Point 3: Cease reliance on mass inspection to achieve quality. Eliminate the need for inspection on a mass basis by building quality into the product in the first place Point 4: End the practice of awarding business on the basis of price tag. Instead, minimize total cost. Move toward a single supplier for any one item, on a long term relationship of loyalty and trust Point 5: Improve constantly and forever the system of production and service, to improve quality and productivity, and thus constantly decrease costs Point 6: Institute training on the job Point 7: Institute leadership. The aim of supervision should be to help people and machines and tools to do a better job. Point 8: Drive out fear, so that everyone may work effectively for the company Point 9: Break down barriers between departments. People in research, design, sales, and production must work as a team, to foresee problems of production and in use that may be encountered with the product or service Point 10: Eliminate exhortations and targets for the work force asking for zero defects and new levels of productivity Point 11: Eliminate work standards (quotas) on the factory floor. Point 12: Remove barriers that rob the hourly workers of their right to pride of workmanship. The responsibility of supervisors must be changed from mere numbers to quality. Remove barriers that rob people in management and in engineering of their right to pride of workmanship Point 13: Encourage education and self-improvement for everyone Point 14: Take action to accomplish the transformation 9

Table 2.1(Cont.): Fundamental factors for effective TQM implementation Quality gurus Juran considers quality management as three basic processes(juran and Gryna, 1993). Crosby defined 14 steps for quality improvement (McCabe, 1998). Fundamental factors for effective TQM implementation Quality planning Quality control Quality improvement Establish the quality goal Identify customers Discover customer needs Develop product features Develop process features Establish process controls and transfer to operations Choosing the control subject Choosing a unit of measure Set goals Creating a sensor Measuring actual performance Interpret the difference Taking action on the difference Prove the need Identify projects Organize project teams Diagnose the causes Provide, remind, prove that the remedies are effective Deal with resistance to change Control to hold the gains (1) Demonstrate management commitment in every possible way (2) Encourage every employee by using quality improvement team (3) Use quality measurement to show what needs to be done, and to indicate progress (4) Evaluate the cost of quality to demonstrate any savings when they start to occur (5) Use quality awareness to remind people what they are expected to contribute (6) Aim to prevent problems by taking corrective actions (7) Establish a committee for the zero defects (8) Educate employees and give them appropriate training 10

Table 2.1(Cont.): Fundamental factors for effective TQM implementation Quality gurus Crosby defined 14 steps for quality improvement (McCabe, 1998). Ishikawa defined six fundamental principles of total quality control (Zhang, 2001). Taguchi s quality concepts (Zhang, 2001). Feigenbaum Fourstep approach (McCabe, 1998). Fundamental factors for effective TQM implementation (9) Arrange a special day discussion and presentation (10) Set goal to provide targets for improvement (11) Remove the causes of error by making improvement and communicate them to all concerned (12) Recognise the efforts of those who make the greatest contribution (13) Formulate the efforts of those in a quality councils consisting of representatives from all areas of the organization (14) Do it all over again Quality first - not short-term profits first Customer orientation - not producer orientation The next step is your customer - breaking down the barrier of sectionalism Using facts and data to make presentations - utilization of statistical methods Respect for humanity as a management philosophy, full participatory management Cross - functional management Quality improvement should concentrate on reducing the variation of the product s key performance characteristics with regard to their target values The loss suffered by a customer due to a product s performance variation is often approximately proportional to the square of the deviation of the performance characteristics from its target value The final quality and cost of manufactured products are determined to a large extent by the engineering design of the product and the manufacturing process A product s or process s performance variation can be reduced by exploiting the non-linear effects of the product or process parameters on the performance characteristics Statistically planned experiments can be used to identify the settings of product/process parameters that reduce performance variation (1) Setting quality standards (2) Appraising conformance to these standards (3) Acting when standards are not met (4) Planning for improvement in these standards 11

On the other hand, in 2004 Baidoun identify fundamental factors for effective TQM implementation West Bank organizations. These factors are (Baidoun 2004): Top management commitment and involvement Middle managers and employee commitment and involvement Communication Training and education Quality infrastructure Formal documented quality management system 2.5 Construction vs. manufacturing The design and construction of a building or civil engineering project is one of the most complex and difficult industrial undertakings (Willis et al, 1996). A construction project usually spans several years and goes through many phases. They are typically described as engineering planning, concept design, bid and proposal, engineering design, procurement, construction, acceptance and test, pilot run, etc. These individual phases can be carried out by different organizations at different stages. The performance of each phase will affect the quality of the project (Tan and Lu, 1995). The construction industry is different from manufacturing due to the fragmented structure of the construction industry, often small in size and less inclined to formal methods of work study and management; (Jaafari, 1996) Diffused responsibility, that is, on normal construction projects typically many individual professionals and firms share the responsibility for the specifications, design and construction of these projects. Prototype nature, that is, projects typically resemble prototype products in the manufacturing industry, often carrying unique design features, site characteristics and functions. Transient and itinerant labour force, who are not trained to operate under the quality assurance mode of construction, that is, the training in the skilled labour has generally been based on learning how to do the work, not necessarily being one s own inspector to produce zero defect. Lack of research and development. Subcontracting who need to perform most specialist tasks have been employed as and when required (Langford et al, 1995). 12

2.6 Quality cost of TQM Management needs to implement TQM throughout the organization with the overall corporate goals to improve efficiency and reduce failure cost while improving current quality and customer service levels. One of the most difficult aspects of co-ordinating the implementation of TQM is to keep the delicate balance between maintaining the creative momentum of people without neglecting the fiscal responsibility entrusted to management. It is of interest to note that the need for management to motivate people for heightened performance within budgetary constraints is a basic requirement to enhance organizational effectiveness. This is no coincidence - academia and business increasingly recognize that the concept of TQM consists of applying sound business practices and quality tools to improve organizational performance. TQM has been introduced along with the quality cost concept do not lose the support of management. The point is that the quality cost concept strengthens the pertinence of TQM within the organization, much as it generally justifies the use of a quality approach in its own right (Laszlo, 1997) Management can thus support quality cost not as a charity or a contribution to society but as a legitimate business investment for which a fair return is to be expected. That is the very essence of TQM - involving everyone in the quest for continuous improvement. 2.7 Quality award models World-wide, there are several Quality Awards, such as the Malcolm Baldrige National Quality Award in the United States of America; the European Quality Award in Europe And the Deming Prize in Japan. The broad aims of these awards are described as follows: (1) Increase awareness of the importance of quality management because of its important contribution to superior competitiveness (2) Encourage systematic self-assessment against established criteria and market awareness simultaneously (3) Stimulate sharing and dissemination of information on successfully deployed quality strategies and on benefits derived from implementing these strategies (4) Promote understanding of the requirements for the attainment of quality excellence and successful deployment of quality management 13

(5) Stimulate organizations to introduce a quality management improvement process Each award is based on a perceived model of total quality management. They do not focus solely on either product or service perfection or traditional quality management methods, but consider a wide range of management activities, behavior and processes which influence the quality of the final offerings (Zhang, 2001). 2.7.1 Malcolm Baldrige national quality award In 1987, the US Congress passed the Malcolm Baldrige national quality improvement Act, and thus established an annual quality award in the USA. The aim of the award is to stimulate American organizations to improve quality, satisfy customers, and improve overall company performance and capabilities. The model framework may be used to assess an organization s current quality management practices, benchmark performance against key competitors and world-class standards, improve relations with suppliers and customers. The model framework is in Table 2.2 (Zhang, 2001). Table 2.2: Malcolm Baldrige national quality model (Zhang, 2001) Main factors Leadership Strategic planning Customer and market focus Information and analysis Human resource development and management Process management Leadership system Sub factors Company responsibility and citizenship Strategy development process Company strategy Customer and market knowledge Customer satisfaction and relationship enhancement Selection and use of information and data Selection and use of comparative information and data Analysis and review of company performance Work systems Employee education, training, and development Employee well-being and satisfaction Management of product and service processes Management of support processes Management of supplier and partnering processes 14

Customer satisfaction results Financial and market results Business results Human resource results Supplier and partner results Company-specific results 2.7.2 European quality award The European Quality Award was officially launched in 1991. The primary purpose of the award is to support, encourage and recognize the development of effective total quality management by European companies. The model of the European Quality Award is divided into two parts: enablers and results. The enablers are leadership, people management, policy & strategy, resources, and processes. The results are people satisfaction, customer satisfaction, impact on society, and business results which are the measure of the level of output attained by the organization. The model consists of nine primary elements which are further divided into a number of secondary elements (EFQM, 1994). The primary and secondary elements are shown in Table 2.3 (Zhang, 2001). Table 2.3: European quality model (EFQM, 1994) Main factors Leadership Policy and strategy Sub factors Visible involvement in leading total quality A consistent total quality culture Timely recognition and appreciation of the effects and successes of individuals and teams Support of total quality by provision of appropriate resources and assistance Involvement with customers and suppliers Active promotion of total quality outside the organization How policy and strategy are based on the concept of total quality How policy and strategy are formed on the basis of information that is relevant to total quality How policy and strategy are the basis of business plans How policy and strategy are communicated How policy and strategy are regularly reviewed and improved 15

People management Resources Processes How continuous improvement in people management is accomplished How the skills and capabilities of the people are preserved and developed through recruitment, training and career progression How people and teams agree targets and continuously review performance How the involvement of everyone in continuous improvement is promoted and people are empowered to take appropriate action How effective top-down and bottom-up communication is achieved Financial resources Information resources Material resources and fixed assets The application of technology How processes critical to the success of the business are identified How the organization systematically manages its processes How process performance measurements, along with all relevant feedback are used to review processes and to set targets for improvement How the organization implements process changes and evaluates the benefits 2.7.3 Deming application prize The Deming Prize was established by the Board of Directors of the Japanese Union of Scientists and Engineers in 1951. Its primary purpose was to spread the quality management by recognizing performance improvements issuing from the successful implementation of company-wide or total quality control based on statistical quality control techniques. The Deming Prize proved to be an effective instrument for spreading quality management methods throughout the Japanese industries. There are ten primary elements in the Deming Application Prize. There is also a checklist which is used to evaluate the performance of senior executives. This checklist emphasizes the importance of top management s active participation in quality management activities and understanding of the main requirements of quality improvement programs. Also, the checklist provides the senior executives with a list of what they need to do. The primary elements in the Deming Application Prize and the checklist used to evaluate senior executives are listed below. 16

(a) Policies (b) The organization and its operations (c) Education and dissemination (d) Information gathering, communication and its utilization (e) Analysis (f) Standardization (g) Control/management (h) Quality assurance (i) Effects (j) Future plans The primary elements in the checklist used to evaluate the performance of senior executives are as follows: (a) Understanding and enthusiasm (b) Policies, objectives and targets (c) The organization, systems and human resources (d) Education, dissemination and thorough implementation (e) Implementation (f) Future policies, plans and measures 2.8 Critical success factors of TQM implementation From an extensive review of TQM literature from quality gurus, quality award models, other quality management research and study of local construction industry. The success factors of TQM implementation on construction projects included the following main factors. 2.8.1 Leadership Top management leadership is one of the most important factors to implementing TQM in construction industry. Leadership, considered as the most influential TQM element, affects in the other elements of the organization. The degree of visibility and support that management takes in implementing a total quality management is critical to the success of TQM implementation. To implement TQM in the organization successfully, top management has to believe in it - be committed to it and to demonstrate the belief - the commitment to it. The foundation of an effective total quality management effort is commitment. 17

Many research discuss the leadership success factors such as ( Zhang, 2001); (Antony et al, 2002); (Jung and Wang 2006); (Hides et al, 2000); (Chow and Lui,2001); and (Sarros et al, 2006). The important factors as in these researches are: Top management commitment Middle management and employees commitment Ability of top management to identify the responsibilities for quality performance Ability to distribute the responsibilities for quality on the department heads Attached to quality by the top management in relation to cost and schedule objectives Involvement with customers and suppliers Support of total quality in organization culture Involvement in total quality objective task definition, budgeting, and measurement Develop a long-term vision strong character of leaders such as (humility, courage, integrity, compassion, humour, passion, and wisdom) 2.8.2 Resource management Resource management is a range of TQM strategies, processes, and activities designed to support corporate objectives by integrating the needs of the customers, the organization, and the individuals working in the organization. Both (Bryde and Robinson, 2007) and (Abu-Hamatteh et al, 2003) defined the resource development and management as the one of the important factors to implementing the TQM. This factor include sub factors focuses on having and implementing a clear methodology to plan, develop, enhance, and review the resources (e.g., human, information, financial, materials and technological) needed to succeed. Resource management Human resources Information resources Financial resources Material resources Technological resources 18

a) Human resources Methodology for collecting and analyzing information Welfare program Training needs and evaluating Incentives system b) Information resources Information system Program for specifying the needs for information system Information system covering most of the duties c) Financial resources Methodology of preparing budget Plans to increase income, cut down on expenditure Corrective action to control project cost Meet the budget d) Material resources Specifying the required material Storage system System for the best use of material resources e) Technological resources Specifying the need for new technologies Transferring technology and to focusing on research and development System for the best use of technology Corrective action to improve the technical requirements control 2.8.3 Strategies and plan Quality Strategies and Plans are activities that establish the objectives and requirements for implementing TQM. The plans should be made in such a way that they can be implemented in practice, and should focus on eliminating the major problem areas. When quality plans are drawn up, how to implement them should be well developed. They are useless if they cannot be implemented in practice. All international model such as Deming; Juran; and EQA model focused on this factor because of its importance (Zhang, 2001). 19

Quality planning includes: Establishing strategic base on the concept of total quality management Establishing strategic base on information relevant to total quality Identifying the goals Identifying the organization mission and vision Identifying customers and their need Analysis of internal and external environment Control and improve of plans Communication strategies 2.8.4 Process management This factor focuses on the extent of the company s commitment in setting and implementing a comprehensive methodology to plan, execute, and develop work systems for all activities within the company. This factor also focuses on promoting excellent policies, procedures, documents and organizational methods. This factor focuses on the organizational structure within the company, and the pursuit of maximum efficiency of coordination between all levels. It points out the importance of having a comprehensive methodology in running the customers affairs and requirements (Abu-Hamatteh et al, 2003). Abu-Hamatteh (2003) suggests the following three main factors under process management and each of the main contains number of sub factors. Process management Quality Process system Customer Relation management Coordination and structure On the other hand Abdul-Aziz (2002); and (Tan and Lu, 1995) identify a number of sub factors under the process management main factors. a) Quality process system Achieve project s mission Conformance to codes and standards Conformance to owner s requirements 20