International Journal of Engineering and Advanced Technology (IJEAT)

ISSN: 2249 – 8958, Volume-8 Issue-5C, May 2019

Developing Quality Culture in Power Plant

Construction Company to Improve
Competitiveness
Satya Nugraha, Yusuf Latief 

ABSTRACT--- The tight competition in the construction sector

in Indonesia's infrastructure projects presents a challenge to ALLOCATED POWER PLANT
construction service companies, especially in the power plant
infrastructure industry. To improve the competitiveness of
91
PROJECTS
construction service companies, customer satisfaction guarantees
must be created, as follows: 1) Products must be in accordance Proyek Swasta
with the requirements, the project done is completed on time, the 441
costs incurred are relatively cheap and collateral for Health, Unallocated
Proyek
Safety and Environment (HSE) should be realized. In creating
customer satisfaction, the concept of Quality Culture needs to be Source: General Plan for Electricity Supply (RUPTL) PT.
applied. By using the Deming Cycle method in building a quality PLN 2017-2021
culture, it is expected that power plant construction service Based on the Regulation of the Minister of Industry of the
companies could increase competitiveness. This study aims to
Republic of Indonesia Number: 04/M-IND/PER/1/2009,
determine the effect of developing a quality culture on power
plant construction service companies, data obtained through concerning Guidelines for the Use of Domestic Production
archival analysis, interviews and questionnaire surveys. Data for Electricity Infrastructure Development, that the
processing concludes the activities needed on developing a Government expects the role of Foreign Components (KLN)
quality culture for risk-based organizational functions in power with Domestic Components (KDN) can work together in
plant construction service companies as a way to increase realizing Electricity Infrastructure Development. From the
competitiveness. The results of this study are the concept of
results of the analysis, it is found that the role of domestic
building a PDCA-based quality culture in the Quality
Management System in a power plant construction services components for Integrated Construction Services (EPC) for
company. PLTU, PLTP and PLTA projects still requires foreign
components. This considers the quality that supports the
Keywords: Competitiveness, Construction Service Company, construction of electricity infrastructure and grows the
Quality Culture, Power Plant industry and increases the competitiveness of domestic
components to support the independence of national
I. INTRODUCTION electricity infrastructure development.
National electricity demand is expected to be met with
electricity infrastructure development carried out by the KDN & KLN for
Government, Regional Government and PT. PLN (Persero). Construction Services…
To meet these electricity needs, the Indonesian government
opens opportunities to all parties that have been regulated in
100.00% KDN
UU No.30 year 2009 about Electricity and UU No.3 year
2009 about Financial Balance between Central and Regional 0.00%
KLN
Governments. PLTA PLTP PLTU
Based on UU No 30 year 2009, the businessman of the
Source: Regulation of the Minister of Industry of the
Public Interest Electricity Supply Business (PIUPL) consists
Republic of Indonesia
of:
Number: 04/MIND/PER/1/2009
First is Government and regional governments through
To support the independence of national electricity
BUMN (national) and BUMD (regional) carry out
infrastructure development, it is necessary to improve the
Electricity Supply Business for Public Interest. And second
competitiveness of national construction services
one is Private business entities, cooperatives, and non-
companies. Definition of Competitiveness is the level of
governmental organizations can participate in the Electricity
productivity which is interpreted as output produced by a
Supply Business for Public Interest.
workforce (Porter, 1990). Whereas the definition of
Company Competitiveness is the ability of a company to
create and formulate a variety of strategies that can place it
in a strategic position and more profitable compared to other
Revised Manuscript Received on April 19, 2019.
Satya Nugraha, Magister Student of Engineering in Civil Engineering,
University of Indonesia.
Yusuf Latief, Professor of Department of Civil Engineering, University
of Indonesia.

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DOI: 10.35940/ijeat.E1092.0585C19 654 & Sciences Publication
 International Conference on Recents Advancements in Engineering and Technology (ICRAET-18) |15th and 16th
March 2019|Siddhartha Institute of Technology & Sciences, Telangana, India.

companies (Tangkilisan, 2003). According to (Goetsch, II. LITERATURE REVIEW

2014), quality is defined as a dynamic condition connected
2.1 Quality Culture
to products, procedures, setting, services, and individuals
that satisfy customer desires and needs and assists in Quality has a three-fold meaning (Hart, 1994) . In the
generating higher value. Problems that occur in the context of construction, it means getting the job done on
construction process have the possibility of Rejection, time; ensuring that the basic characteristics of the final
Repair, and Replaced for the progress of project. Problems project fall within the required specifications; getting the job
can occur for work areas that are in contact with the existing done within budget. In the twentieth century, Quality is an
plant area (Brown Field) or areas that are really new land approved management concept and it is driving
(Green Field). Some examples of phenomena and issues that organizational competitiveness and effectiveness (Wan
commonly occur in the world of power plant construction Yusoff bin Wan Mahmood, 2008). Quality Culture includes
divided in 3 stages of process, such as: the coordination of shared principles and standards that is
concern on delighting customers and constantly enhancing
1.1 Planning Process the quality of products and services (Malhi,2013). In an
Every important Drawing should be officially transmitted, organization, quality is deeply rooted in almost every facet
before used for construction process. DED (Detail of organizational life. The culture of an organization could
Engineering Drawing) needs to be submitted by a consultant be considered as the business source attitude and value. It is
to the contractors officially, but sometimes when the this culture that defines guidelines, techniques and activities
drawing needs to be revised, the drawing are not officially within an organization (Batten, 1994).
back transmitted. It is possible to have false referenced The application of TQM is influenced by Organizational,
drawing on field. Vocational and National Culture, and organizational culture
Some issues occurred on the scheduling and material is the most influential of the others. Organizational culture
budget planning. It is possible to have problems when the identifies 13 dimensions of quality culture, including:
specification materials are changing between before and Leadership, Customer Focus, Teamwork, Involvement,
after planning process. The same problems also occurred on Empowerment, Communication, Education & Training,
the human resource planning. The word “quality” has Continuous improvement, Motivation, Supplier partnership,
different understanding on everyone, especially in their own Organization structure, Recognition & Reward, & Strategy
specific ways; however, everybody can realize what is and quality Policy (Wan Yusoff bin Wan Mahmood, 2008).
referred to as „quality‟ (Chandrupatla, 2009). Critical factors Total Quality Culture are Leadership and
Empowerment. And it was stated that this affected any
1.2 Constructing Process
organization that wanted to develop Total Quality Culture.
The construction is one industry being viewed with poor Information and Communication is not the dominant factor
quality compared to other sectors, such as: Manufacturing that must be developed in Total Quality Culture. (Ana
and Service sectors (Kubal, 1994) ; (Kanji, 1998) ; (Love, Cláudia Campos, 2014). In implementing a Quality Culture,
2000). The cultural and behavioral shift in the construction activities that support Total Quality Management are
process is needed to improve performance (Haupt, 2004). needed. Every change that needs to be done, refers to the
(Rowlinson, 1995) point out that the construction industry influence of quality culture factors (Adebanjo, 1999). In
is also characterized by its non-standardization. Production order for a successful TQM program to be carried out as
processes are to some extent different from one another. follows: collaborative and corporate organizational culture
Hence, no universal standard or specification can be applied supported by management and employees, continuous
to the product, which leads to difficulties in quality commitment and involvement, organizational learning,
assurance. Furthermore there are excessive changes to the innovation and entrepreneurship, team work and
details of the design of a project are typical throughout the collaboration, open communication, risk taking, continuous
construction process. They may be attributed to the lack of improvement, customer focus (internal and external),
buildability of the design produced or variations by the partnerships with suppliers, and quality monitoring and
contractors for the sake of speed and cost of production . evaluation must be developed. It was established as
Quality is often at risk because of the excessive changes guidelines for implementation, strategies and processes must
(Kanji and Wong, 1998). be aligned. and integrated in quality culture, and information
1.3 Evaluation Process systems must be integrated (Mosadeghrad, 2006). TQM
embraces the philosophy, principles, procedures and
Many companies have difficulties in implementing
practices needed to provide customer satisfaction and
Quality Management. It may happened when there are lack
achieve business productivity and performance in the
of consistent senior management commitment and support
construction industry. Commitment and perseverance is
and style of manager‟s leadership, lack of a formalized
needed when starting the application of TQM (Low
strategic plan and also conflicting priorities. There is also a
SuiPheng, 2004).
lack of work discipline, resources and support, financial
Organizational culture and national culture are important
crisis, an organizational approach, a long-term focus and
factors in implementing TQM. The construction industry is
failure in understanding the voice of the customer will then
affect corporate culture and cause problems (Mosadeghrad,
2006)

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DOI: 10.35940/ijeat.E1092.0585C19 Blue Eyes Intelligence Engineering
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 International Journal of Engineering and Advanced Technology (IJEAT)
ISSN: 2249 – 8958, Volume-8 Issue-5C, May 2019

based on a culture that encourages the giving of projects to Namely they choose contractors based on price and expect
the lowest bidder. For this reason, clients adopt a very their interests to be protected through contractual provisions
narrow view of relationships with designers and contractors. (Ngowi, 2000)

Figure 1. Variable Construct of Developing Quality Culture

Power Distance
integrated into groups that are strong, cohesive, often large
Power Distance has been defined as the extent to which families (with uncles, aunts, and grandparents) who continue
members who are less powerful organizations and to protect them in exchange for unquestioned loyalty and
institutions (such as families) accept and expect power to be opposition another group. Again, the problem handled by
distributed unevenly. This represents inequality (more this dimension is very basic, about all the people in the
versus less), but is defined from below, not from above. This world
shows that the level of community inequality is supported
by many followers as practiced by leaders. Power and Masculinity - Femininity
inequality, of course, are very basic facts of society. All It is not the gender influences the culture, but the
societies are not the same, but some are more unequal than commitment to create the best performance with the big
others effort
Uncertainty Avoidance Long-Short Term Orientation
Uncertainty avoidance is not the same as risk avoidance; This dimension is highly correlated with recent economic
this is related to community tolerance of ambiguity. This growth. Because none of the four IBM dimensions are
shows the extent to which a culture programs its members to related to growth economics, I obtained Bond permission to
feel either uncomfortable or comfortable in unstructured add dimensions as fifth for my four (Hofstede, 2011).
situations. Unstructured situations are novels, unknown,
Indulgence - Restraints
surprising, and different from usual. The culture of
uncertainty avoidance tries to minimize the possibility of It's about self-control to immediately find out the results
situations such as strict codes of conduct, laws and rules, Vocational Culture
rejection of deviant opinions, and beliefs in absolute Truth;
Vocational is the ability to explore the problems of
'There is only one Truth and we have it'
education and work, assessment of self-abilities associated
Individualism with work problems, planning work problems, making
On the individualist side we find a culture where ties decisions in the selection of jobs. Vocational culture in the
between individuals are loose: everyone is expected to care
for themselves and their close family. On the collectivist
side we find a culture where people from birth onwards are

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Blue Eyes Intelligence Engineering
DOI: 10.35940/ijeat.E1092.0585C19 656 & Sciences Publication
 International Conference on Recents Advancements in Engineering and Technology (ICRAET-18) |15th and 16th
March 2019|Siddhartha Institute of Technology & Sciences, Telangana, India.

perception of quality culture is the provision of work ethics expertise and trains employees to master themselves (self-
(work culture) in the process of part of learning control
competencies in the vocational sector. Trust
After the desire of management to empower, the next step
Internal Integration
is to build trust between management and employees. The
This is an ability to generate all function at the office then existence of mutual trust between members of the
create the efficient of business process within the integration organization will create good conditions for the exchange of
framework. information and advice without fear. Things that are
External Adaptation included in the trust include: Providing opportunities for
employees to participate in policy making. Providing
It is the skill to understand how to keep on standing in
sufficient time and resources for employees to complete
bad situation or to make the better condition in the business
work. Providing adequate training for work needs.
process or performances.
Appreciate differences in views and appreciate the success
Leadership achieved by employees. Providing sufficient information
The timeline of organizational culture also includes two access.
other important elements of strategy for business Confident
competitiveness: cost optimization and orientation towards The next step after mutual trust is to create employee
product manufacturing or the provision of services with high confidence by respecting the capabilities possessed by
added value. This business strategy focus is known as employees. Things that include actions that can cause
'leadership costs' and ‟differentiation confidence include: Delegating important tasks to
employees. Explore ideas and suggestions from employees.
Costumer Focus Expand tasks and build networks between departments.
The requirement for restructuring in an organization is to Provide a job instruction schedule and encourage good
meet customer satisfaction. In construction, known 3 solutions.
customer satisfactions, including: Work Safety, Quality Credibility
achieved, Cost efficient, Time in accordance with planning. The fourth step is to maintain credibility by rewarding
and developing a work environment that encourages healthy
Team Work
competition so as to create organizations that have high
Teamwork is a form of group work that aims to achieve performance. Things that include credibility include:
targets that have been agreed upon previously. It must be Viewing employees as strategic partners, increasing targets
realized that teamwork is a variety of personal fusion that in all parts of the work, Introducing individual initiatives to
becomes a person to achieve a common goal. The goal is not make changes through participation, helping to resolve
a personal goal, not a team leader goal, nor is it the most differences in goal setting and priorities.
popular personal goal in the team. Accountability
Understanding and supporting each other is the key to The next step in the empowerment process is the
success from teamwork. Never ignore this understanding employee's responsibility to the authority given. By setting
and support. Even though personal disputes occur, the team consistently and clearly about the roles, standards and
must immediately get rid of them first. If not, life in the objectives of the assessment of employee performance, this
team will obviously be disrupted. Even in one team it may stage is a means of evaluating the performance of employees
come from a different division background which in the completion and responsibility for the authority given.
sometimes also stores disputes. So it's very important to Accountability includes: Using training channels in
realize that togetherness as a team member is above all. evaluating employee performance, Providing clear tasks and
Involvement clear measures, Engaging employees in determining
standards and sizes, Providing advice and assistance to
Job involvement as the level to what extent a person's
employees in completing workloads, Providing period and
work performance influences his self-esteem and the degree
time of giving feedback
to which someone psychologically identifies himself with
his work or the importance of work in his total self-image. Communication
Individuals who have high involvement more identify Communication is an important factor in many ways,
themselves at work and consider work as a very important including in fostering a quality culture. Organizations that
thing in their lives. have a good quality culture always have an effective
Empowerment communication model, both between individuals in groups
and between groups. The flow of communication can be
The empowerment model including:
used freely, openly, honestly and lasts two directions, even a
Desire
large company.
The first step in the empowerment model is the desire of
management to delegate and involve workers. These
include: Workers are given the opportunity to identify
developing problems. Minimize directive personality and
expand worker involvement. Encourage the creation of new
perspectives and rethink work strategies. Describes team

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DOI: 10.35940/ijeat.E1092.0585C19 Blue Eyes Intelligence Engineering
657 & Sciences Publication
 International Journal of Engineering and Advanced Technology (IJEAT)
ISSN: 2249 – 8958, Volume-8 Issue-5C, May 2019

Education & Training so that various activities must be carried out by the
Training is very important for organizational employees organization to improve it.
to be more productive. Besides that Supervisors must be Strategy & Quality Policy
responsible for implementing a quality culture in their
Quality strategy and policy is a form of company
department, including teaching basic philosophy of quality
commitment to the quality of products produced in a
culture to all their subordinates. Training that is usually
business process, namely in the form of a quality
needed by employees in supporting the implementation of a
management system. The Quality Management System
quality culture includes; interpersonal skills, teamwork
defines how organizations consistently implement quality
skills, problem solving, decision making, analysis and
management practices to meet customer and market needs.
improvement of work management performance, business
economics, and technical skills. At the time of creation and Improving Competitiveness
formation of a quality culture, employees should be trained Improved good governance in the development of
immediately so that they can become effective employees construction services seems to be the main key to
for the company. competitiveness. Transparency in the provision of
Continuous Improvement consulting services still needs to be improved. A suitable
electronic procurement system must be made in selecting a
The process of improving quality is a fundamental need
consulting company (Rizal Z. Tamin, 2015). The TQM
in the world of industry, banking, services, and education.
aspect is most important for increasing competitive
His strategic position made Harrington dare to say,
advantage, thereby helping decision making about resource
"Improvement is not part of the game - it is the game today.
allocation (Sin Kit Ying, 2018).
Everyone wants things to change for the better. ....... You
The relationship between culture and economic growth is
can no longer wait for someone else to change. The
by no means a new subject (Gershman, 2016). There is a
improvement process must start with you ". The process
strong relationship between quality, strategy and
cannot run once in a lifetime, but continuous or continuous
competitiveness (Prajogo, 2007). Culture comprises of the
efforts are needed.
convictions, standards and fundamental assumptions that
Motivation support behavioral items and patterns (Ott, 1989) (Zeitz,
In principle, every individual involved in it will jointly 1997). Business strategy and communication relations are
strive to create ideal working conditions in order to create an the dominant approaches carried out to improve
atmosphere that supports the efforts to achieve the expected competitiveness (Sauka, 2014). By using the Dynamic
goals. System it is known that the Time and Finance variables can
be used as the dominant factor to determine the
Supplier Relationship Competitiveness Index in the Construction sector
Companies and Suppliers (Suppliers / Vendors) are in (Dangerfield, 2010). It was concluded that awareness of the
need of each other. Having mutually beneficial cooperation ownership of QMS ISO 9001 on a large scale qualifying
will enhance the ability of both parties to create value for contractor has utilized Indonesian construction companies to
success. Establish a balanced relationship between short- promote quality in carrying out construction projects and
term benefits with long-term consideration. Synergize delivery of construction products. By showing that the
expertise and resources in pairs with suppliers. Identify and importance of meeting quality construction products for the
select key suppliers. Arrange joint development, for satisfaction of the project team, project owners, and project
flexibility and speed to respond to changing market needs. end users (Willar, 2017). The Porter‟s framework also helps
Give enthusiasm, encouragement and appreciation for the detect problem areas for the industry and has provided
improvement and achievement of suppliers. valuable insights into possible solutions to be taken (ÖZ,
2001). The national construction industry in the future can
Organization Structure
grow fast and passionate if the right policies are set and
Organizing is regulating the elements of agency / consistently implemented according to their priorities (Hari
department resources that consist of labor, experts, G. Soeparto, 2014)
materials, funds, etc. in a rare movement that is synchronous
to achieve organizational goals effectively and efficiently. In
the organization compiled and laid down the basics of
guidelines and instructions for activities, reporting lines,
division of tasks, and responsibilities of each group and
leadership. Because the purpose of an agency / department
is different, the organizational structure is also the same,
meaning that no organization can be used for all kinds of
activities and situations with the same results.
Recognition & Reward
Performance is the result of work produced by employees
or real behavior that is displayed in accordance with its role
in the organization. Employee performance is a very
important thing in the organization to achieve its objectives,

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DOI: 10.35940/ijeat.E1092.0585C19 658 & Sciences Publication
 International Conference on Recents Advancements in Engineering and Technology (ICRAET-18) |15th and 16th
March 2019|Siddhartha Institute of Technology & Sciences, Telangana, India.

Figure 2. Variable Construct of Improving

Competitiveness

III. METHODOLOGY/MATERIALS
This research performs study case at Power Plant
X Variable -----> Y T Statistics
Construction Service Company. The study is benchmarking
Variable (|O/STERR|)
to existing literature related to quality culture. Data obtained
through literature analysis, and validated by experts. National Culture ----
Questionnaire is validated by Structural Equation Models > Competitiveness 2.096
and strategy is benchmarking to Power Plant Construction Vocational Culture --
Company. Modelling strategy to improve quality culture ---> Competitiveness 3.957
will be provided as the result. Organizational
Culture ---->
IV. RESULTS AND FINDINGS Competitiveness 3.856
After processed with SmartPLS, Crossloading analyses
will be use to understand the dominant variable X improving There are 13 indicators of competitiveness that have cross
variable Y. Please see the diagram below: loading values above the average, so it is stated that the
dominant quality targets used as competitiveness in power
plant construction service companies through a quality
culture built on activities in their companies include:
1. PROJECT PERFORMANCE RECORD
2. ABILITY TO FORECAST MARKET CHANGES
3. RELATIONSHIP WITH CLIENTS AND
CONSULTANTS
4. FINANCIAL STATUS
5. CREDIBILITY GRADE
6. PAYMENT TO SUBCONTRACTORS OR
SUPPLIERS
7. LOAN REPAYMENT
8. QUALITY CONTROL

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 International Journal of Engineering and Advanced Technology (IJEAT)
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VII. AUTHOR PROFILE

Satya Nugraha Obtained his bachelor‟s degree at
Institute Teknologi Bandung, Major Geodetic &
Geomatics Engineering. At this moment, He is a post
graduate student of project management at Universitas
Indonesia. Since 2008 He has a lot of experiences for
implementation in Coal Mining Business operation and
Power Plant Construction

Yusuf Latief He was born in Jakarta, March 7th, 1960.

He obtained his bachelor, master and doctoral of Civil
Engineering degree from Universitas Indonesia. Now, as a
Professor and also a fulltime senior lecturer in
UniversitasIndonesia, He has a lot of national and
international journal especially for knowledge management in Project &
Construction Management.

Retrieval Number:E10920585C19/2019©BEIESP Published By:

DOI: 10.35940/ijeat.E1092.0585C19 Blue Eyes Intelligence Engineering
661 & Sciences Publication