The Implementation of QMS in construction industry

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Currents status Quality management System in Indian context is presented.

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  • Kindly email the dissertation to sangupta43@gmail.com; I intend to taje the reseach further for my doctoral progamme in construciton management
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The Implementation of QMS in construction industry

  1. 1. 1
  2. 2.  Introduction  Problem Statement  Aim & Objectives  Literature Review  Research Methodology  Method of Analysis  Results & Discussions  Conclusions  References CONTENTS: 2
  3. 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 3
  4. 4.  Indian Construction industry Vs International Construction industry  Below Client’s Expectation  Problems & issues while implementation Problem Statement: 4
  5. 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 : 5
  6. 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: 6
  7. 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 7
  8. 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 8
  9. 9. 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 9
  10. 10. Problems and Issues on implementation of QMS:  QMS as Marketing Tool  Knowledge and experience  Motivation  Training  Quality Audit 10
  11. 11. Factors Impelling Effective and Continuous Improvement:  Employees Empowerment  Continuous Training  Process Management  Work Environment and Culture 11
  12. 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: 12
  13. 13. Phase Research Objectives Research Methods Expected Outcomes Data 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 QMS improvement 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 improvement implementation framework - - Valuable implications for construction industry and practitioners in India Integration of Research Methods and Research Objectives with Expected Outcomes13
  14. 14.  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 14
  15. 15. 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 15
  16. 16.  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: 16
  17. 17.  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: 17
  18. 18. 12% 39% 49% QMRs - 5 Managers - 17 Engineers - 21 Profiles of Respondents: Total = 43 Individual Respondents Levels by Percentage 18
  19. 19. Profiles of Respondents: 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 0 2 4 6 8 10 12 19
  20. 20. Profiles of Respondents: Total = 37 Age of the Company 19% 57% 24% < 10 Years - 7 10-20 Years - 21 > 20 Years - 9 20
  21. 21. Current Status of QMS Implementation: 1. During Development of QMS 0 5 10 15 20 25 30 Yes No 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 21
  22. 22. Development of quality management systems documentation Development of QMS documentation No of Respondents % QA team and the consultant developed the document 𝟕 16.28 The consultant developed the document 𝟒 9.30 QA team developed the Document 𝟏𝟕 39.53 Every division prepared a draft of the document 𝟏𝟓 34.88 Total 43 100 1. During Development of QMS 22
  23. 23. Length 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 1. During Development of QMS 23
  24. 24. Rank Motives driven the development of company’s QMS under ISO 9001 Mode Median 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 1. During Development of QMS 24
  25. 25. 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 25
  26. 26. Sum of Squares df Mean Square F P-value First QMS principle Between Groups Within Groups Total 1.643 10.403 12.047 2.00 40.00 42.00 0.822 0.260 3.159 0.053 Second QMS principle Between Groups Within Groups Total 1.912 21.250 23.163 2.00 40.00 42.00 0.956 0.531 1.800 0.179 Third QMS principle Between Groups Within Groups Total 1.990 15.917 17.907 2.00 40.00 42.00 0.995 0.398 2.500 0.095 Fourth QMS principle Between Groups Within Groups Total 0.618 17.010 17.628 2.00 40.00 42.00 0.309 0.425 0.727 0.490 Fifth QMS principle Between Groups Within Groups Total 4.465 35.721 40.186 2.00 40.00 42.00 2.233 0.893 2.500 0.095 Sixth QMS principle Between Groups Within Groups Total 1.706 30.713 32.419 2.00 40.00 42.00 0.853 0.768 1.111 0.339 Seventh QMS principle Between Groups Within Groups Total 1.149 30.526 31.675 2.00 40.00 42.00 0.575 0.763 0.753 0.478 Eighth QMS principle Between Groups Within Groups Total 2.229 23.632 25.861 2.00 40.00 42.00 1.115 0.591 1.887 0.165 ANOVA Table for QMS Principles 2. Levels of quality management system implementation 26
  27. 27. 2. Levels of quality management system implementation 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 27
  28. 28. 2. Levels of quality management system implementation 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 28
  29. 29. Sum of Squares df Mean Square F P-value QMS element 5 Between Groups Within Groups Total 3.663 20.011 23.674 2.00 40.00 42.00 1.832 0.500 3.661 0.035 QMS element 14 Between Groups Within Groups Total 4.145 18.273 22.418 2.00 40.00 42.00 2.073 0.457 4.537 0.017 QMS element 17 Between Groups Within Groups Total 10.443 24.068 34.511 2.00 40.00 42.00 5.221 0.602 8.678 0.001 ANOVA Table for QMS Elements 2. Levels of quality management system implementation 29
  30. 30. 2. Levels of quality management system implementation 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 30
  31. 31. Rank Barriers Mean SD LoB 1 Lack of a well-design reward system (B9) 2.674 0.778 3 2 Misleading QMS purposes (B1) 2.442 0.666 2 3 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 2 5 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 2 7 Lack of strong motivation (B4) 2.116 0.625 2 8 Lack of corporate commitment (B3) 2.070 0.856 2 9 Resistance to QMS implementation (B13) 2 0.756 2 10 Failure in disseminating ISO 9001-QMS (B8) 1.977 0.707 2 11 Lack of funding for QMS implementation (B14) 1.977 0.740 2 12 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 31
  32. 32. 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 3 Sustainable 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 32
  33. 33. 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 33
  34. 34.  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. Results and Discussion: 34
  35. 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. Results and Discussion: 35
  36. 36.  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: 36
  37. 37. 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. 37
  38. 38. 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: 38
  39. 39.  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: 39
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