The Implementation of QMS in construction industry

1

R.RAGHAVENDRA, CTM 121568

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Prof

. K. V

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2

Introduction

Problem Statement

Aim & Objectives

Literature Review

Research Methodology

Method of Analysis

Results & Discussions

Conclusions

References

CONTENTS:

3

Introduction• Construction Industry contribution to Country Economic Growth

• India ( ) position in Asian Market

• Construction industry current status compared to other sectors Poor workmanship

Non Standardization

Environmental Impacts

• Obstacles faced by construction industry Extensive delays

Exceeding cost

Workmanship quality

(Because of nature of operation is complicated)

• QMS Implementation in the past decade

4

Indian Construction industry Vs

International Construction industry

Below Client’s Expectation

Problems & issues while implementation

Problem Statement:

5

Aim: To study the potential applying of Quality Management System (QMS)

Objectives:

To investigate the current status of the QMS being implemented by Indian

construction companies.

To find out problems and issues on the implementation of QMS in construction

projects.

To determine the factors impelling effective and continuous improvement of

Indian construction industries QMS’s.

Aim & Objectives study :

6

Introduction Quality Management System:

Significance of construction – three fold in construction

Increase in demand towards high quality

Quality implementation through out the life cycle

Eliminating Lean Construction

LITERATURE REVIEW:

7

Quality Management History & Gurus: Start to finish by the same team to meet quality criteria

Taylor established Quality Departments• Ensure quality production• Rectifying errors

Ford emphasized standardization of design & components

As a result of world war, statistical control was introduced

Joseph Juran, W Edwards Deming, Philip Crosby

8

Basic concept Quality & Quality Dimensions and Parameters:

Definitions by various people

Five perspective of quality

According to DCQI• For an owner• For a designer• For a contractor• From the operational and management point view

Doing the job right first time can save 24% of total cost of construction

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Total Quality Management: TQM is a way of managing for the future

than its application assuring product or

service quality

To ensure complete customer satisfaction at

every stage

The TQM core is customer supplier interfaces

internally and externally right at every

interfaces there are processes and systems The Relationship of TQM core

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Problems and Issues on implementation of QMS: QMS as Marketing Tool

Knowledge and experience

Motivation

Training

Quality Audit

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Factors Impelling Effective and Continuous Improvement:

Employees Empowerment

Continuous Training

Process Management

Work Environment and Culture

12

Selection of Research Methods: A Questionnaire survey method was adopted

• Quantitative data

A survey regarded as appropriate to answer the “what?” type of

research questions.

RESEARCH METHODOLOGY:

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Phase Research ObjectivesResearch Methods

Expected OutcomesData Collection Data Analysis

1 To identify quality management systems (QMSs) issues in construction projects and organisations in both international and Indian contexts, identify gaps and problems of issues particularly in the Indonesian case

Literature review - Theoretical framework

2 To develop a draft research instrument (questionnaire) Literature review - Draft questionnaire and variables

3 To confirm the selected variables for the study, and shape the final questionnaire with necessary modification

Preliminary Studies

Qualitative Final questionnaire instrument

4 To examine the effectiveness of the QMSs being operated in Indian construction companies, including the identification of current problems within the systems, and examine the companies performance while implementing QMSs

Questionnaire Quantitative Level of QMSs implementation, QMS improvement elements variables and statistical relationships between these variables

5 To design and develop a draft of QMSimprovement implementation framework, to enable Indian construction companies to effectively implement QMS

- - A framework to improve QMS implementation

6 To refine and finalize the culture-based QMS improvementimplementation framework

- - Valuable implications for construction industry and practitioners in India

Integration of Research Methods and Research Objectives with Expected Outcomes

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Purpose : To evaluate the respondent’s perception towards the concept of quality management

Limitation : Respondent’s willingness and cooperation

Scale : As most of the questions sought opinions or a subjective measurement, the format is based on an unbalanced itemized rating scale

Questionnaire survey:

SAMPLE QUESTIONS: 1) The use of consultant and their portion of role and involvement in setting up QMS

4 3 2 1 2) The way the fundamental QMS documentation was developed

4 3 2 1 3) Length of time from the start of preparation to the achievement of ISO 9001 certification

4 3 2 1 4) Motives for developing QMS

4 3 2 1

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Questionnaire survey:

Design of questionnaire sheet that essentially consists of

o Current status of QMSs implementation in Indian construction companies

o Implementation of ISO 9001 principles and elements

o Problems influencing effective QMS implementation

o Company performance in terms of major achievements during

the implementation of QMS

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Primary Analysis A Descriptive statistical analysis

• Measurement of central tendency (Mean, Median, Mode)

• Measurement of variation (Standard deviation)

Secondary Analysis ANOVA Test

• To check whether different profiles of organisational culture variables

have different influence on the QMS variable.

Method of Analysis:

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43 questionnaire booklets were filled by 37 companies located across India.

These Companies include L&T, AFCONS, Gammon India, NCC, Shapoorji

Pallonji, SEW, GMR, Bharathi reality, Aarvee Associates etc..

The Respondents can be classified into three groups:

Quality Management Representatives (QMRs) - high level

Managers (MRs) - middle level

Project/Site Engineers (SEs) - Basic level

Data Collection:

18

12%

40%

49%

QMRs - 5Managers - 17Engineers - 21

Profiles of Respondents:

Total = 43

Individual Respondents Levels by Percentage

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Total = 43

Individual Respondents Work Experience

High Level Middle Level Low level

< 5 Years 1 6 11

5 -10 Years 2 8 8

10-15 Years 0 2 2

15-20 Years 2 0 0

> 20 Years 0 1 0

1

3

5

7

9

11

20


Total = 37

Age of the Company

19%

57%24

%

< 10 Years - 710-20 Years - 21> 20 Years - 9

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Current Status of QMS Implementation:

1. During Development of QMS

Yes No0

5

10

15

20

25

30

Consultant assistance

Respondents

VH % H % FH % NH %

7 21.88 19 59.38 5 15.62 1 3.12

<25% % 25-50% % 51-75% % 76-100% %

5 15.62 17 53.13 8 25 2 6.25

Opinions of Consultant Roles

Level of Consultant Roles

Consultant services during the ISO 9001 registration process

22Development of quality management systems documentation

Development of QMS documentationNo of

Respondents%

QA team and the consultant developed the document

16.28

The consultant developed the document 9.30

QA team developed the Document 39.53

Every division prepared a draft of the document 34.88

Total 43 100


23Length of Time for ISO 9001 Certification

Period No of Respondents %

< 6 Months 18 41.86

6 – 12 Months 15 34.88

13 – 18 Months 6 13.95

19 – 24 Months 4 9.30

Total 43 100


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Rank Motives driven the development of company’s QMS under ISO 9001Mod

eMedian Mean SD

1st To effectively and efficiently control project activities 1 2 2.24324 1.40249

1st To minimise poor quality of construction processes and products 2 2 2.48649 3.53553

2nd For the betterment of the company’s overall management system 3 3 3.91892 2.24076

3rd To fulfill clients’ requests as part of the bidding process 5 5 5.10811 1.62931

3rd To improve business performance 6 5 5.16216 1.46275

4th To improve the company’s prestige (e.g. image, reputation) 8 5 5.43243 2.08887

4th To enter the international construction market 4 5 5.51351 2.25612

4th As a requirement from the Ministry of Public Works 6 6 6.13514 1.60143

Initial Motivation of Companies in Applying for ISO 9001 Certification


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2. Levels of quality management system implementation

Rank QMS-ISO 9001 Principles Mean SD LoI

1 Customer focus (1st P) 3.628 0.536 4

2 Mutually beneficial supplier relationships (8th P) 3.163 0.785 3

3 Leadership (2nd P) 3.140 0.743 3

4 Continual improvement (6th P) 3.116 0.879 3

5 Process approach (4th P) 3.093 0.648 3

6 People involvement (3rd P) 3.047 0.653 3

7 Factual approach to decision making (7th P) 2.767 0.868 3

8 Systems approach (5th P) 2.744 0.978 3

Total QMS-ISO 9001 Principles 3.087 0.807 3

Company Implementation Levels of ISO 9001 Principles

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Sum of Squares

dfMean

SquareF P-value

First QMS principleBetween GroupsWithin GroupsTotal

1.64310.40312.047

2.0040.0042.00

0.8220.260 3.159 0.053

Second QMS principle Between Groups Within GroupsTotal

1.91221.25023.163

2.0040.0042.00

0.9560.531 1.800 0.179

Third QMS principleBetween Groups Within GroupsTotal

1.99015.91717.907

2.0040.0042.00

0.9950.398 2.500 0.095

Fourth QMS principleBetween Groups Within GroupsTotal

0.61817.01017.628

2.0040.0042.00

0.3090.425 0.727 0.490

Fifth QMS principleBetween Groups Within GroupsTotal

4.46535.72140.186

2.0040.0042.00

2.2330.893 2.500 0.095

Sixth QMS principleBetween Groups Within GroupsTotal

1.70630.71332.419

2.0040.0042.00

0.8530.768 1.111 0.339

Seventh QMS principleBetween Groups Within GroupsTotal

1.14930.52631.675

2.0040.0042.00

0.5750.763 0.753 0.478

Eighth QMS principleBetween Groups Within GroupsTotal

2.22923.63225.861

2.0040.0042.00

1.1150.591 1.887 0.165

ANOVA Table for QMS Principles


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Rank QMS-ISO 9001 Elements Mean SD LoI

1 Process control (9th E) 3.488 0.593 3

2 Control of a nonconforming product (13th E) 3.349 0.686 3

3 Contract review (3rd E) 3.326 0.566 3

4 Inspection, measuring and test equipment (11th E) 3.279 0.934 3

5 Purchasing (6th E) 3.256 0.621 3

6 Inspection and testing (10th E) 3.256 0.693 3

7 Design control (4th E) 3.256 0.727 3

8 Document and data control (5th E) 3.233 0.751 3

9 Management responsibility (1st E) 3.209 0.675 3

10 Inspection and test status (12th E) 3.209 0.804 3

Company Implementation Levels of ISO 9001 Elements

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Rank QMS-ISO 9001 Elements Mean SD LoI

11 Control of customer-supplied product (7th E) 3.186 0.764 3

12 Corrective and preventive action (14th E) 3.116 0.731 3

13 Product identification and traceability (8th E) 3.116 0.763 3

14 Control of quality records (16th E) 3.116 0.879 3

15 Quality system (2nd E) 3.023 0.740 3

16 Servicing (19th E) 2.930 0.910 3

17 Handling, storage, packaging, preservation and delivery (15th E) 2.907 0.718 3

18 Training (18th E) 2.814 0.795 3

19 Internal quality audits (17th E) 2.814 0.907 3

20 Statistical techniques (20th E) 2.767 0.718 3

Total QMS-ISO 9001 Elements 3.133 0.778 3

Company Implementation Levels of ISO 9001 Elements

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Sum of Squares

dfMean

SquareF P-value

QMS element 5Between Groups Within GroupsTotal

3.66320.01123.674

2.0040.0042.00

1.8320.500 3.661 0.035


4.14518.27322.418

2.0040.0042.00

2.0730.457 4.537 0.017


10.44324.06834.511

2.0040.0042.00

5.2210.602 8.678 0.001

ANOVA Table for QMS Elements


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Position of Respondent QMS element 5 QMS element

14

QMS element 17

High Level Mean

Std. Deviation

4

0

3.2

0.7

3.6

0.8

Middle Level Mean

Std. Deviation

3.253

0.441

3.471

0.265

2.235

0.691

Low Level Mean

Std. Deviation

3.048

0.648

2.810

0.562

3.095

0.491

Total Mean

Std. Deviation

3.233

0.751

3.116

0.731

2.814

0.907

Report ANOVA for the QMS Elements

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Rank Barriers Mean SD LoB1 Lack of a well-design reward system (B9) 2.674 0.778 32 Misleading QMS purposes (B1) 2.442 0.666 23 Uncertainty with sub-contractors and supplier quality

systems (B12)2.233 0.782 2

4 Lack of effective internal communication (B10) 2.209 0.833 25 ISO 9001is a matter of fulfilling audit requirements (B7) 2.186 0.907 2

6 Lack of effective management response (B5) 2.140 0.676 27 Lack of strong motivation (B4) 2.116 0.625 28 Lack of corporate commitment (B3) 2.070 0.856 29 Resistance to QMS implementation (B13) 2 0.756 2

10 Failure in disseminating ISO 9001-QMS (B8) 1.977 0.707 211 Lack of funding for QMS implementation (B14) 1.977 0.740 212 ISO 9001 is a documentation matter instead of

opportunity to make a change (B2)1.907 0.684 2

13 Difficulty in understanding ISO 9001 terminology (B6) 1.884 0.586 2

14 Poor external communication (B11) 1.884 0.731 2 Total Barriers 2.121 0.766 2

3. Problems affecting effective QMS implementation

Barriers to the Effective Quality Management System Practices

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Rank Key Performance Indicators Mean SD LoKPI

1 Quality of services and products (KPI5) 3.186 0.588 3

2 Sales growth for the preceding two years (KPI2) 3.023 0.707 3

3Sustainable construction products (KPI6) 3 0.577 3

4 Profitability for the preceding two years (KPI1) 2.907 0.684 3

5 New product innovation and development (KPI7) 2.837 0.754 3

6 Market shares for the most recent year (KPI3) 2.791 0.709 3

7 Generating employee satisfaction (KPI8) 2.628 0.618 3

8 Global market contracts acquired (KPI4) 1.954 0.575 2

Total Barriers 2.791 0.738 3

4. Key performance indicators

Contractors’ Key Performance Indicators

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Results and Discussion:

Most local construction companies took less than six months to achieve ISO 9001

certification, while national contractors took between six and 12 months.

The common motives that least drives Indian construction companies to apply for ISO

9001 certification is ‘as a requirement from the Ministry of Public Works’ and ‘to enter

the international construction market’

The Indian contractors appear to still doubt the many advantages associated with

implementing the system

Result in having low competitiveness

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The findings indicate a lack of use of ‘cause and effect diagrams’ and ‘statistical process control’ as typical tools.

Some studies report that effective decisions on quality processes are made mainly on the use of data analysis and information with the assistance of some statistical tools.

Construction industry efforts to improve quality have been slow and fragmented as well as being fraught with difficulties in implementing ISO 9001

This also due to the characteristics of the construction industry and its dynamic project processes. For QMS implementation and an approach such as ISO 9001 to be a real solution, all levels of a company’s structure need to be bound by a strong commitment towards it.


35

The results of this study show that apparently Indian construction companies do not often experience problems with implementing ISO 9001.

However there were some misunderstandings from the managers surveyed regarding the purpose for obtaining the ISO 9001 certification.

People concede the purpose of implementation of TQM in construction companies must be in line with the company’s Organisational culture.

Other researchers in the construction quality systems and Organisational culture area endorse this view by revealing that quality culture and corporate culture are considered to be determinant factors in contributing to the successful or unsuccessful implementation and maintenance of an ISO 9001 quality system.

Studies examining the effects of QMS implementation in the construction industry show that not only do customers benefit substantially from it, but so does the construction company.


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The aim was achieved through the collection and analysis of data, combined with the incorporation of extant literature to address issues relating to the effectiveness and continual improvement of the implementation of quality management systems, within the context of the Indian construction.

This study provides empirical evidence in support of the notion that problematic issues associated with the implementation of QMS-ISO 9001 can have an impact on the effective implementation of the QMS.

Within Indian context, the study provides empirical evidence to conclude that the status of having high business performance of the ISO 9001 certified construction companies cannot be directly attributed to the possession of ISO 9001 certification.

One-Way Analysis of Variance (ANOVA) analysis in this study provided a valuable understanding of the influence of different profiles on QMS-ISO 9001 standard implementation by Indian construction companies.

Conclusions:

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The research contributions can be viewed from three different perspectives:

Research Contributions:

1. A contribution to the body of knowledge

• Due to the lack of the research in this area, there is a scarcity of literature on the Competing Values and QMS-ISO 9001 implementation, the results reported contribute to and enrich the literature in this area.

2. A contribution to the construction industry

• Generally, they accept the fact that quality is the basis for moving companies forward, both in relation to satisfying clients and in the attainment of a sustainable competitive advantage. The result potentially fit all grades in the large-scale Indian construction industry, enabling them to develop strong motives in order to successfully achieve effective quality management practices and quality deliverables in infrastructure project delivery.

3. A contribution for policy

• The research findings will provide a future reference for facilitating consultation and communication among the construction services providers, construction companies associations and the Government, in defining and determining policy for more widespread promotion and implementation of QMSs, in the Indian construction industry.

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Limitations

• Current conditions

• Not able to explore the implementation within construction companies.

• Lack of involvement of certain external respondents

Recommendations

• Future implementation within large-scale construction companies.

• Sampled construction organisations, which are willing to be pilot-projects for the implementation.

• Large number of respondents including the external respondents

Limitation and Recommendations:

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Abdul Hakim bin Mohammed dan Mat Naim bin Abdullah, Asmoni (2006), “Quality Management System in Construction”, International Conference on Construction Industry-2006.

Debby Willar (2012), “Improving Quality Management System Implementation in Indonesian Construction companies”. Queensland University of Technology.

Ilias Said, Abd Rahman Ayub, Arman Abd Razaki & Tee Kuan Kooi (2011), “Factors affecting Construction Organisation Quality Management System in The Malaysian Construction Industry”.

Jerald L. Rounds and Nai-Yuan Chi (1985), “Total Quality Management for construction”, Journal of Construction Engineering and Management, ASCE, Vol. 111, No. 2, pp.117-128

Juran, J.M. (1998) Juran’s Quality Handbook, 5th Edition, McGraw Hill, New York.

Lydia Nyomek (2010), “The Integration of Quality Management in Construction Industry”, University Technology Malaysia.

Peter Hoonakker, Pascale Carayon and Todd Loushine (2010), “Barriers and benefits of quality management in the construction industry: An empirical study”, Taylor & Francis, Vol. 21, No. 9, 2010, pp.953-969.

References:

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THANK YOU…

Leadership & Management

The Implementation of QMS in construction industry