68.0-March-Case Study TQM in Construction Industry
68.0-March-Case Study TQM in Construction Industry
68.0-March-Case Study TQM in Construction Industry
Management
*1
Mubarak Reme IBRAHIM, 2Douglas Umbugala MUHAMMAD, 3Bala MUHAMMAD, 4John
Alaezi OKWE & 5Jummai AGIDANI
12345
Department of Building, Faculty of Environmental Sciences, Baze University Abuja, Nigeria
* Corresponding Author: [email protected]
Abstract
The construction industry has shifted towards adopting Total Quality Management (TQM)
techniques in order to maintain a competitive advantage. Despite prior research exploring the
relationship between TQM and organisational performance, the need for a tailored approach to
performance objectives is an overwhelming ambition. This study aims to examine the impact of
TQM practices on organisational outcomes by surveying the knowledge of contractors in the
construction industry. The study identifies eight key TQM practices and assesses their impact on
established performance indicators using a questionnaire administered to 275 contracting
organisations in Abuja, Nigeria. The results reveal a significant relationship between TQM
practices such as top executive commitment, education and teaching, process control, and
continuous progress, and the success of contractor organisations. The study also uses mapping to
demonstrate how these TQM practices can be leveraged to enhance performance outcomes.
These findings emphasis’ the need for flexible and adaptive implementation of TQM practices,
rather than a one-size-fits-all approach, in order to achieve organisational performance
improvement. Additionally, the study highlights the importance of ongoing commitment from
top management in promoting the significance of TQM throughout the organisation.
Key Words: Competitive advantange, Organisational performance, TQM practices, Construction
industry, Quality management, Contractors, Top management
1.0 Introduction
The construction industry, despite being a major contributor to the economy of a nations, has
faced persistent issues that hinder its growth and development(Alaloul et al., 2021; Boadu et al.,
2020). Fragmentation, instability, low productivity, poor quality, and lack of standards have been
long-standing problems that have attracted various criticisms, including poor performance in
terms of profitability, operational performance, customer satisfaction(Al-Sabek, 2015; Sadikoglu
& Olcay, 2014), investments in innovative research and development, and productivity
improvement (Proverbs et al., 2000). The drive for construction contractors is further threatened
by the changing business landscape, with rapidly changing technology (Robinson et al., 2004),
democratisation of information, globalisation, and government pressure playing a significant
role.
As educated clients demand superior quality products and services, organisations in the
construction industry have resorted to adopting Total Quality Management (TQM) practices in
order to take performance to the optimal (Arditi & Gunaydin, 1997; Love et al., 2000; Pheng &
Teo, 2004; Wong, 1999, Umbugala 2016). While the implementation of TQM in other industries,
including manufacturing and services, has been successful in generating enhanced products and
services, increased customer satisfaction, reduced costs, improved financial performance,
increased competitiveness, and raised productivity (Fotopoulos & Psomas, 2010; Tawfik Mady,
2009; Terziovski & Samson, 1999), its impact on the construction industry remains largely
unknown. This is due to the unique characteristics that distinguish the construction industry from
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other industries, which calls to question the applicability of the results from other industries to
the construction sector.
In light of the above, this research seeks to examine the extent to which TQM practices and
organisational performance are correlated and how TQM practices influence organisational
performance indicators within the context of contractors in the construction industry. A review of
existing literature on the topic highlights the lack of empirical evidence on the impact of TQM
on the construction industry, making this research even more relevant with the drive towards the
circular economy. By exploring the correlation and influence of TQM on performance indicators,
this study aims to provide valuable insights into the effectiveness of TQM practices in the
construction industry and to contribute to a better understanding of how TQM can drive the
continuous improvement of organisational performance and excellence. Overall, this research is
of significant importance as it aims to fill a crucial gap in the existing body of knowledge and
provide a comprehensive examination of the impact of TQM practices on organisational
performance within the context of the construction industry.
2.0 Literature Review
2.1 Effect of Construction Industry Performance on Economic Development
The construction sector plays a vital role in the development and growth of both developing and
developed nations (Alaloul et al., 2021). It is a driving force behind the process of industrial and
metropolitan growth, as seen since the beginning of the Industrial Revolution (Rostow, 2003).
The sector involves a wide range of players, including professionals, tradesmen, manufacturers,
trade unions, investors, local authorities, specialists, contractors, and many others, who work
together to achieve successful results. The coordination of these entities requires a high level of
expertise and management skills to ensure effectiveness and the efficient execution of projects.
Construction projects are significant investments, both in terms of finances and time, and
therefore, require a comprehensive understanding of the construction process. This includes
knowledge of the latest technologies and materials, regulations, construction practices, and
market trends. The construction sector also contributes to the socio-economic development of a
country by generating employment opportunities, stimulating economic activity, and creating
new infrastructure that supports economic growth (Oladinrin et al., 2012).
2.2 Total Quality Management (TQM)
The Total Quality Management (TQM) movement has been shaped and influenced by a number
of industry gurus, including Crosby, Juran, Taguchi, and Deming. Each of these individuals
brought a unique perspective to the concept of quality, which has helped to evolve TQM into a
comprehensive and integrated approach to management. Crosby's approach focused on the zero-
defect program, where the goal was to eliminate defects in the production process and ensure that
the final output met the customer's specifications. On the other hand, Juran's approach focused
on identifying the root cause of quality issues, while Deming stressed the importance of 14
quality objectives in TQM implementation. Taguchi's contribution to TQM was his emphasis on
the idea that any deviation from the customer's specifications results in failure and that the
organisation must strive to understand and satisfy those specifications.
Quality management, in the context of TQM, goes beyond just the output or service itself.
Instead, it focuses on the processes used to achieve TQM, using management tools and
techniques to ensure consistent quality in all products and services (Ahire & O’shaughnessy,
1998; Prajogo & Sohal, 2006). This is achieved through the integration of quality development,
quality maintenance, and quality improvement across all levels of an organisation.TQM is an
effective strategy that leverages the collective efforts of management, employees, suppliers, and
customers to achieve customer satisfaction and exceed expectations (Feigenbaum, 1991). It's a
philosophy of continuous improvement that drives organisations to optimize their products,
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services, and processes. The key to success with TQM is the involvement of all stakeholders,
who work together towards a common goal of providing quality products and services.
2.3 Concepts of Total Quality Management TQM
The implementation of Total Quality Management (TQM) is challenged by the lack of a
universally accepted definition of quality (Eng Eng & Yusof, 2003). Over the years, several
quality gurus such as Deming, Crosby, Feigenbaum, Oakland, and Juran have each proposed
their own interpretations of quality. For example, Deming defines quality as satisfying customer
expectations, while Crosby views it as conformance to specifications. (Feigenbaum, 1991)
considers quality as the composite of marketing, engineering, and maintenance efforts to meet
customer expectations. On the other hand, (Juran & De Feo, 2010) defines quality as fitness for
purpose and (Oakland, 2012) sees it as meeting customer needs.
TQM, as defined by Turner & Muller (2004), is a holistic approach that aims to harness the
efforts of all employees to eliminate errors, minimize costs, and meet client needs (Yusuf et al.,
2007). The concept of TQM was developed by Dr. W. Edward Deming in the 1940s, following
the conclusion of World War II. In recent years, the need for TQM has increased due to intense
global competition, increased consumer awareness of quality, rapid technological advancements,
and the need for organisations to attain world-class status. To meet these demands and improve
their quality standards, many organisations are implementing TQM programs and quality
initiatives to gain a competitive advantage and improve business performance(Talib et al., 2011).
TQM is a top-down approach led by top management with a strong commitment to quality.
2.4 Benefits of TQM
The advancements in Total Quality Management (TQM) have resulted in various methods,
perspectives, and contexts, leading to different categorizations of benefits. While (Oakland,
2014) focused on the operational improvements brought by TQM, (Goldratt & Cox, 1984)
looked at the external factors such as competitiveness, customer satisfaction, and financial
outcomes. Rust et al., 1995 ) summarized the main benefit of TQM as "customer satisfaction
through continuous improvement in every organisational process involved in delivering products
and services. Santos & Escanciano, 2002 ) added that this satisfaction involves both internal and
external customers.
Antony et al., 2002 ) conducted a study on the critical success factors for TQM in the Hong
Kong industry and identified seven benefits using factor analysis, including increased employee
involvement, enhanced communication, improved productivity, improved quality, increased
customer satisfaction, reduced cost of poor quality, and improved competitive advantage. The
classification of TQM benefits can vary, from a general "improved customer satisfaction" to a
more detailed classification into employee benefits, productivity improvements, quality
enhancements, customer satisfaction, cost savings, and competitiveness gains.
2.5 The Relationships Between TQM Practices and Performance
This section is summarising the results of previous studies that have investigated the relationship
between Total Quality Management (TQM) practices and various organisational outcomes. The
authors noted that many studies have found positive associations between TQM and outcomes
such as productivity and manufacturing performance, quality performance, employee
satisfaction/performance, innovative performance, customer satisfaction/results, competitive
edge, market share, financial performance, and aggregate firm performance (Brah et al., 2000;
Demirbag et al., 2006; Fotopoulos & Psomas, 2010; Joiner, 2007; Kumar et al., 2009; Prajogo &
Brown, 2004; Prajogo & Sohal, 2006; Rahman & Bullock, 2005; Talib et al., 2013; Terziovski &
Samson, 1999; York & Miree, 2004; Zehir et al., 2012).
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However, the authors also acknowledged that some studies have reported negative results, which
suggests that the relationship between TQM and organisational outcomes is not always
straightforward and may vary depending on the context and the specific TQM practices being
used (Brah et al., 2002; Ittner & Larcker, 1997; McCabe & Wilkinson, 1998; Mohrman et al.,
1996; Nair, 2006; Rungtusanatham et al., 1998; Sadikoglu & Olcay, 2014; Yeung & Chan,
1998). This highlights the need for further research to gain a more comprehensive understanding
of the impact of TQM on organisational outcomes.
2.5.1 Top Management Commitment
Organisations led by top management fully committed to TQM practices and principles are more
likely to experience positive outcomes in various aspects of the organisational performance. This
includes improved operational performance, inventory management performance, employee
performance, innovation performance, social responsibility and customer results, financial
performance, and overall firm performance(Criado & Calvo-Mora, 2009; Goetsch & Davis,
2014).
Studies have shown that top management commitment to TQM practices leads to a more
collaborative and participatory organisational culture, where employees are encouraged to get
involved in decision-making and to take ownership of their work(Ahire & O’shaughnessy, 1998;
Al-Swidi & Mahmood, 2012; Jabeen et al., 2014; Joiner, 2007; Macinati, 2008; Parast & Adams,
2012; Phan et al., 2011; Powell, 1995; Prajogo & Sohal, 2006; Samson & Terziovski, 1999).
This creates a more engaged and motivated workforce, which, in turn, contributes to better
organisational performance and excellence. Top management commitment also supports the
development of a comprehensive TQM system, which includes effective communication
channels, employee development programs, and efficient information management. All of these
elements work together to create a more effective and efficient organisation, where quality is
integrated into every aspect of the business.
Managerial position:
Top management 85 51.0
Middle management 78 49.0
Education level:
Diploma 42 25.8
Bachelors degree 98 60.1
Masters degree 23 14.1
Working experience:
1-5 years 25 15.3
6-10 years 64 39.3
11 years and above 74 45.3
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constructs used to measure performance are reliable. These results confirm that the instrument
used is highly reliable.
Table 4.2: Reliability Analysis
TQM practices
(Independent variable) 8 .890
Performance Measures
(Dependent variable) 7 .878
8
Top Management Commitment 3.82 .512
Customer Focus 3.72 .503
Employee/People Management 3.31 .641
Supplier Quality Management 3.73 .510
Education/Training 3.70 .620
Process Management 3.67 .629
Continuous Improvement 3.71 .552
Information and Analysis 3.71 .577
ValidN 163
Variables 1 2 3 4 5 6 7 8 9 10 11
9
1 TopManagementCommitment -
2 CustomerFocus .248** -
3 Employee/PeopleManagement.209**.277**-
4 SupplierQualityManagement .236**.047 .277** -
5Education/Training .259** .297**.201**.204** -
6ProcessManagement .244**.087 .269**.067 .253** -
7ContinuousImprovement .232**.277**.247**.269**.195* .247** -
8InformationandAnalysis .218**.231**.207**.214**.195* .062 .248** -
9Customer Satisfaction .156* .257**.186* .068 .151*.160* .191* .269** -
10EmployeePerformance .141*.041 .185* .185* .188*.196* .221**.211** .061 -
11ProfitImprovement .121*.204**.157* .185* .180*.220** .267**.069 .288**.204**
12ProcessImprovement .169*.200* .189* .189* .262**.231**.200* .282**.548**.620** .396**
13Market/Financial Performance.140* .200* .097 .157* .105 .047 .267**.185* .285**.306** .090
14OperationalPerformance .169*.101 .234** .127 .203**.235** .285**.044 .417** .105 .
15InnovationImprovement .183*.154* .246**.185* .211*.200*.062 .204**.667**.581** .069
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Figure 4.1: Mapping Strategies for Organisational Performance
4.4.1 Strategy 1: Customer satisfaction 4.4.2 Strategy 2: Employee
performance
i. Top management commitment i. Top management
commitment 1
ii. Customer Focus ii Employee/people
management 1
iii. Employee/people management iii. Education/training
iv. Education/training iv. Continuous improvement
v. Process Management 2 v. Process management
2
vi. Continuous improvement vi. Information and analysis
vii. Information and analysis vii. Customer focus
viii. Supplier quality management 3 3
viii. Supplier quality management
4.4.3 Strategy 3: Profit improvement 4.4.4 Strategy 4: Process
improvement
i. Top management commitment i. Top management
commitment
ii. Customer focus ii. Process management
1
iii. Supplier quality management iii. Education/training
1
iv. Process management iv. Continuous improvement
v. Continuous improvement v. Employee/people
management
vi. Employee/people management vi. Supplier quality management
vii. Education/training vii. Information and analysis 2
2
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viii. Information and analysis viii. Customer focus
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