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"An Investigation of the Effectivenessof Total Quality Managementin the UK Construction Industry" (An Empirical Study) by SaeidFahid Bsc Eng, MSc PM A ThesisSubmitted in Fulfilmentof the requirementsfor the Degreeof Doctor of Philosophy Heriot Watt University School of the Built Environment May 2007 ABSTRACT "An Investigation of the Effectivenessof Total Quality Managementin the UK Construction Industry (Empirical Study)" This study examinesthe application of TQM within the UK construction industry. A review of the literature on TQM and exploratory researchwithin the industry verified the need for researchinto this area. Through the study, the attitudes of individuals within companies are examined in order to establish current trends towards implementation of Total Quality Management. The primary sources of data was derived from the literature search. Phase one of the study involved data collection from 92 construction companies experiencedin Quality Managementor Total Quality Managementimplementation. Exploratory field work was undertaken to determine levels of adaptations and the relevanceand importance given to TQM in current strategicthinking. Data gathering techniques included a postal questionnaire and an analysis of company financial reporting. Analysis of the data led to the developmentof ftirther researchinstruments to analyseand measure TQM andperformance. Six organisationswere subsequentlyselected and assessedinvolving an in depth case study. The principle findings from the case studies were then validated by further survey, which involved a larger representativesample. The researchindicated that TQM is not yet well establishedas an overall philosophy within the constructionindustry in the UK. The leadingorganisations have 3 to 5 years experienceof implementation,and are assessedas low to medium adapters when measuredagainst the EuropeanQuality Award Model. Some evidencewas found to show that the leading organisationsin TQM had achieved improved performanceagainst the industry. The results also show, however, that a high proportionof TQM initiativesfail to deliver expectedbenefits. The reasonsfor these differencesare examined and best practice identified. Finally the study shows, implementation is seen as a continuous process of improvement involving 4 essential stages- diagnosis, implementation, measurement and review. Appropriate tools, methods and best practices developed from the researchare recommendedfor addressingeach stage. Information was obtained on the research areas through the use of the following methods: 1. Consultation with quality practitioners and a review of the quality managementliterature. 2. Questionnaires investigating the quality management practices of over 92 companies(including 11 companieswhich had implementedTQM). 3. Structured interviews investigating the methods of TQM implementation at 6 leadingTQM constructionorganisations. The framework was designed as a stand-alone document to be used by quality practitioners, the managementboard of the organisationsimplementing TQM and quality managementresearchers in construction industry. DEDICATION This is thesis the most valuable achievement in my life to date. I dedicate it to: - To family my ............... My late father and My beloved mother In grateful appreciation of their love, support and for their unfailing confidence in my abilities. ACKNOWLEDGEMENTS There are numerousindividuals, institutions and organisationsthat have contributed considerable data and information during the formulation and development of this thesis. To them all my sinceregratitude and thanks. I would like initially to express my sincere gratitude and appreciation to my supervisor, Mr Peter Cheesman for his invaluable assistance and guidance. My thanks also throughout the years go to ProfessorPhil Banfill for his relentless support and excellent direction and from whom I have learneda great deal. I record my gratitude to the construction firms who kindly participated in my research andassisted me to obtaindata. I wish to thank the staff and colleaguesof the Build Environmentat Heriot Watt University. My thanks also go to the following persons: All the companies and especially the individuals who participated in the structuredinterviews; The 6 construction companies, which allowed the information to be used as casestudies; m The co-operation and help of Ian Fraser,Accountant. mI would also like to thank the late Gordon Lockerbie for his assistancein keepingwithin the law. My thanks and gratitude also goesto Mr J Lamb for his invaluable time and help. Finally, I am indebted to the lady I love for her support and encouragementgiven to me, particularly in the darker times throughout the period of my studies. Table Of Contents Page Chapter I ThesisIntroduction I 1.1 SuccessTQM 3 1.2 Objective of the Thesis 3 1.3 The ResearchApproach 4 1.4 Thesis Outline 5 Chapter 2 Literature Searchand Review 2.0 Quality & Quality Management 8 2.1 The BS 5750/ISO 9000 Series 10 2.2 Definition of Quality 11 2.3 Quality & Construction 12 2.4 Quality Management 12 2.5 Quality ManagementProcedures 14 2.6 Quality & Quality Gurus 16 2.6.1 W Edward Deming 18 2.6.2 JosephM Juran 19 2.6.3 Phil B Crosby 20 2.7 Three Guru's Common Ground 21 2.8 Ghobadian& Spell's Opinion 23 2.9 Quality Assurance? The Road to TQM 23 2.9.1 Quality Assurance 24 2.9.2 The Principles of Quality Assurance 25 2.9.3 Objectives of Quality Assurance 26 2.10 Evolution of TQM 28 2.10.1 Total Quality Management 28 2.10.2 Definition and Principles of TQM 31 2.10.3 Core Element of TQM 35 2.10.4 TQM Characteristics 37 2.11 The Need for TQM in Construction 38 2.12 Construction Industry 40 2.13 Quality in the Construction Industry 42 2.14 Client & Contractor 46 2.15 Organisational Change 48 2.16 Organisational Culture 51 2.17 Change 53 2.18 The Managementof Change 54 2.19 The Debate on the Effectiveness& Future of TQM 56 2.20 Summary 61 Chapter 3 Methodology ResearchMethodology 62 3. Aim 62 Chapter 3 Methodology 3.1 ResearchObjective 62 3.1.1 The ResearchObjective, Purpose& Value 63 3.2 ResearchApproach 63 3.2.1 What is Qualitative Research& How is it Achieved 65 3.2.2 The Principle Criticisms of Qualitative Methods 66 3.2.3 Combined Methods 70 3.2.4 Quantitive Methods 72 3.2.5 Defining the Empirical Variables 73 3.3 Validating and Testing the CaseStudy Findings 77 3.4 ResearchProcess and GroundedTheory in TQM 78 3.4.1 GroundedTheory 79 3.4.2 Accuracy - Triangulation 82 3.4.3 Level of Participation 82 3.4.4 GroundedTheory Justification 82 3.4.5 Finally 84 3.5 The ResearchDesign 85 3.5.1 The Purposeof the ResearchDesign 85 3.5.2 Literature Search& Review 87 3.5.3 Field Work 87 3.5.4 Exploratory Research 88 88 3.5.5 Primary Research- The CaseStudy 89 3.5.6 'Validating Research- The Final Questionnaire 3.5.7 Developing a Framework for Implementation of TQM in the Construction Industry 90 3.5.8 The View from the SharpEnd 90 3.6 How Researchwas Constructed 91 3.6.1 Creation of the Survey 91 3.6.2 Question Design 92 3.6.3 Introduction Study 93 3.6.4 Data Collection 93 3.6.5 PhaseThree - Planning & Designing the Structured Interviews 93 3.6.6 Information Source 94 3.6.7 Contacting Companies 95 3.6.8 Final Company List 95 3.6.9 The Follow Up Study ResearchMethod 96 3.6.10 PhaseFour - CaseStudies 97 3.6.11 Pilot Study 98 3.6.12 PhaseFive - The Statusof TQM in Construction Industry (Exploratory Research) 100 3.7 Summary 101 Chapter 4 Tools & Techniquesof TQM in Construction Industry 4.1 A Review of the Critical SuccessFactors for TQM 102 4.2 The TechniquesAssociated with TQM 105 4.3 The Deming Prize 106 4.4 The Malcolm Baldrige National Quality Award (MBNQA) 107 4.5 The EuropeanQuality Award (EQA) 108 4.6 Elementsof Success 109 4.7 Leadership 110 4.8 Information & Analysis 113 4.9 Strategic Quality Planning 114 4.10 Human ResourceDevelopment & Management 115 4.11 Managementof ProcessQuality 116 4.12 Quality & OperationalResults 118 4.13 CustomerFocus & Satisfaction 119 4.14 Summary 120 Chapter 5 Discussion ofthe Main Findings 5.0 QuestionnaireResponse Rates (Phase One) 121 5.1 Mailing Questionnaires(Phase Two) 121 5.2 ResponseRate 122 5.3 Pointsto ConsiderPrior to Analysis 123 5.4 An Analysisof a ResearchSurvey 123 5.5 Conclusion 131 Chapter6 CaseStudies 6.0 CompanyVisit Template 133 6.1 High Adaptersof TQM in their Organisation 135 6.1.1 "H" Company 135 6.1.2 "1" Company 143 6.1.3 "F" Company 151 6.1.4 "G" Company 156 6.1.5 "P" Company 163 6.1.6 "R7'Company 168 Chapter7 EmpiricalEvidence 7.0 Introduction 173 7.1 Evaluationof TQM in ConstructionIndustry 173 7.2 New EmpiricalEvidence on the Statusof TQM with in the UK ConstructionIndustry 174 7.2.1 FinancialQuantification of TQM Impact 174 7.2.2 FinancialAccounts 175 7.3. Discussionof the Main Findings 176 7.4 CategoryI- High Adapters 177 7.4.1 Category2- MediumAdapters 178 7.4.2 Category3- Low Adapters 178 7.5 Analysisof Self AssessmentScores 178 7.5.1 Self Assessment 179 7.5.2 RelativeScores - Within this Study 180 7.5.3 Critical FactorScores 181 7.6 The Potentialfor usingSelf-Assessment 183 7.6.1 An Overall Assessmentof Empirical Evidence 185 7.6.2 PerformanceOutcome Index 187 7.7 Summary 191 Chapter 8 Searchfor Best Practice 8.0 Introduction 192 8.1 Background to TQM at "I" Company 192 8.2 Approach to CaseStudy of 'T" Company 194 8.3 Discussion of the Results of Self-Assessment 194 8.4 Validation of Self-Assessmentand Performance 196 8.5 Confirmation of CaseStudies (Best Practices) 196 8.6 Critical Factors Questionnaire 197 8.6.1 Qualitative Information about Critical Factors 197
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