Tribhuvan University

Institute of Engineering

Pulchwok Central Campus

Pulchwok, Lalitpur

Application of Managing For the Sustained Success of an Organization

(A Quality Management Approach)

By

Kiran Basukala

073MSCM303

Department of Civil Engineering

Lalitpur, Nepal

To

Prof. Dr. Sanjay Upreti

Research Methodology

April, 2018
1. Background of Study
1.1. Introduction

Construction Industry is different from other industry but however much similar in
nature of delivery, purposes, monitory, etc. Many industries use different raw
materials for unique output which is made for the purpose of satisfaction to
customers. The satisfaction can refer to the feedback after consuming it. Here
feedback can be quick effect or effect after long term. Similarly, Construction
industry is same but they are more service providers in terms of quality rather than
quantity. Furthermore, most of construction companies are failed due to problems and
challenges like poor workmanships, delay, budget overrun, extensions of time, poor
contingency planning, etc in projects. So each construction company needs to
improve and correct its approach for planning best quality. (Zwikael & Smyrk, 2011)
states that planning, analysis and controlling by project management were the system
for successfully achieving the goals through the analysis of 776 projects across seven
industries in different countries. So, it clarifies about the importance of quality
management approach in construction project for success.

Here, project management is stated as successful if the objectives of projects have

been achieved on the time, within cost and scope as accordance to client’s
requirements. So scope is one of the factors determining the success of projects which
is termed as quality. Most of the projects in construction industries or companies are
based on the completion within time and cost instead of quality. Generally many
people relate the quality with products and services but it can be related to process,
system and management as well which is exactly required for making organization
sustainable and success.

So quality management system is the management approach including all the

documentation, guidance, specification, performance data analysis and audit which
will be the great part of each project from starting to till end. Product or services are
exchangeable things between the person or organization. So organization or person is
responsible to maintain the quality to which the product is delivered. Quality can be
the approach or behavior with person or the system of achieving the best product or
sustainable use of the product.

Thus this research was carried out with motto of evaluating quality management
approach of construction project (cost, time, and quality/scope) and its application for
the organization to be sustainable and success.

1.2. Need and Importance of Research

 Many construction organization or companies are focused for the completion of
project and delivery to the users. Also most of organization had lack of principles of
quality management within the team which subsequently affect the quality of services
to the beneficiaries. Construction companies provide the output using construction
materials as per clients’ requirement but they never make effort the choosing
construction material for better quality output. So they jumped to beyond the clients’
requirement for making company profitable. So this research is really important for
application of quality management principles, factors affecting quality, sustainable
factor of organization, reasons behind the successful project.

This research is also important for determining the critical factors or elements within
the construction project for achieving quality in organization. It also determines the
factors or management techniques and factors for the sustained success of
organization. Construction companies are the group of different personnel involved
i.e. from site preparation or cleaning staff to auditor, who deals in transaction of
companies. Thus this research is totally based on the management of sustained
success of organization through quality management approach with parameters
considering timing, cost and output quality.

Total quality management is generally applied in manufacturing industries but in case

of construction industry we cannot establish the Quality management system. The
reason behind is every construction project is unique and quality is ever changing
factor i.e. quality change time to time, place to place.

Thus this research will help about the application of quality management approach for
the sustained success of construction organization and aware of quality in projects.

1.3. Statement of Problem

Many construction industries facing different challenges in terms of resources

available this is because of uniqueness of project and other factors. Here factors
related to construction project except time, cost and quality, is management of such
resources in organized way. According to (Barrie & Paulson), “Management must
also cope with new economic and cultural realities resulting from inflation, energy
shortages, changing world development patterns, and new societal standards.” So
management approach is really needed to address the problems related to
management of organizations and resources which catalyzed the project. With
increase in development, globalizations, technological invention many complexities
and variations are arose and increase the demand of resources like skilled manpower,
equipment, technical and working staffs, materials, etc. In order to face such
challenges that going to face in the future, tradition type of construction and
 management should be updated. In other way there will be challenging project in the
future that require more technical capabilities, having huge scope. Problems
accompanying these projects include the need for improved organization and
management structures.

Nowadays, success of organization is evaluated in accordance to the turnover and

number of projects accomplished. However there is inclusive of quality of projects in
the construction projects there is always lack of development in quality management
system within organization for sustained success. As in other business, construction
projects are aiming to achieve success and the project success depends on its
expectations and how they are fulfilled, in order to meet the project requirements
successfully. Most of construction projects are business oriented in today’s context
instead of focusing on the services provided for the beneficiaries’. Also most of
construction projects are failed to achieve the success due to poor teamwork,
management of personnel, poor monitoring of quality of specific task, etc.

1.4. Research Purpose

Purpose of research is determining the relationship of quality approach and

sustainable success of organization. These researches also deal with the quality
principle approach and other factors relating to quality on every aspect for running
organization. Some of the specific purposes of research are as follows:

i. Investigate the adoption and implementation of quality management approach

within construction industry
ii. Determine the major factors that are mostly affecting the quality of
construction during the construction particularly in execution phase.
iii. Monitor and control the quality principles of services in terms of small and
large scale organization

1.5. Focus of the Research

The research scope of this study is limited to construction projects in Nepal which
was accomplished by Nepalese construction contractor. However, this research will
divide project performance into two key areas. The first area will focus on quality
standard requirement for the operation of construction project at site. In addition,
relevant research studies in this area will be reviewed and analyzed to explore the
possibility of creating an improved method to measure quality performance.

The second area concentrates on the current practice of quality management in the
construction field of Nepalese construction industry. And for evaluation of success of
 projects, project performance is studied in accordance to input to projects i.e. use of
quality management tools and organizational structure within organization and finally
output of projects in terms of their application of quality management systems and
other parameters that evaluate the performance of projects.

1.6. Research Questions

The research questions to be investigated to achieve the objectives of projects are as

follows:
i. What methods and techniques are being used to measure construction
projects performance?
ii. What are the quality management systems adopted for the particular
organizations of construction industry?
iii. What are the processes of performance measurements for the construction
projects in construction industry of Nepal?
iv. How quality management systems are applied to achieve the organizational
objectives as well as the business objectives?

2. Research Methodology
For this particular research success of organization is based on the performance of
construction project which has different variables. However it is very difficult to find real
truth behind the success of organization. Existence of multiple variable on this research
control the conclusion and conclusion will be based on the most likely relation of such
variables which is determined on accordance most strong relation from the research. So
paradigm used in the research is Post-Paradigm. The conclusion won’t be based on the
discussion among two persons. For most likely decision and real truth or valid
knowledge, research should be based on discussion with many groups. So the nature of
problem is Ontology. After discussion with many respondents different variables are
identified and analyzed in order to get the conclusion which is epistemology. The
strategies to find out relation of the variables are correlation strategies in order to
proportionate the different variables that derived from the literature review. For the
purpose of correlation, questionnaire and interviews with respondent’s on the basis of
research questions and objectives can be considered as methodology.

For all of those research paradigms, research strategies the main source of knowledge or
ideas to extract in order to fulfill the research objectives are the people or stakeholders
involved in the construction projects or construction industry.
3. Literature Review
3.1.Quality in Construction Projects

It was revealed that project or organization success is the most efficient key to assess
projects in construction industry, and the customer’s satisfaction as business objectives,
and iron triangle (cost, time, quality) are the most significant elements in success of
construction projects (Neyestani, 2016). Building process is considered as a set of
activities going from User’s needs and ends at User’s Satisfaction. From those statements
for the success of organization in construction industry user’s satisfaction are important
to be considered in quality management system. Traditionally, success in construction is
measured through the iron triangle: budget, quality and costs (Karna). So customer
satisfaction has been part of quality management approach.

Also quality has been the critical factor to consider in construction industry. Quality has
different meanings for different people. The American Society for Quality (ASQ)
glossary defines quality as

1. The characteristics of a product or service that bear on its ability to satisfy stated
or implied needs.
2. A product or service free of deficiencies.

The International Organization for Standardization ISO) defines quality as “the totality of
characteristics of an entity that bears on its ability to satisfy stated or implied needs.”

Based on these definitions, it is possible to evolve a common definition of quality, which

is mainly related to the manufacturing, processes, and service industries as follows:

1 Meeting the customer’s need

2 Fitness for use
3. Conforming to requirements

However, the definition of quality for construction projects is different from that of
manufacturing or services industries as the product is not repetitive but a unique piece of
work with specific requirements. Quality in construction projects is not only the quality
of product and equipment used in the construction of a facility but the total management
approach to complete the facility. The quality of construction depends mainly upon the
control of construction, which is the primary responsibility of the contractor. (Rumane,
2011), defined Construction project quality as the fulfillment of the owner’s needs per
defined scope of works within a budget and specified schedule to satisfy the
owner’s/user’s requirements. The phenomenon of these three components can be called
the “construction project trilogy”. Similarly (Barrie & Paulson) present the three
dimension of quality in construction projects to determine the degree of conformance to
design specifications.

3.2.Quality Management Approach

Quality is the most significant factor for the success of organization in construction
field which are more concerned with productivity, quality and quality system. But
quality can be related to the process, system and management as well (Neyestani,
2016). Quality Management approach can be implied in external aspects not only
internal aspects. According to (Rahim, 2004), quality approach is the systems that
involve internal and external aspects. An internal quality system covers activities
aimed at providing confidence to the management of an organization that the intended
quality is being achieved. This is called a “quality management system”. Successful
implementation of quality management system can contribute to an increase in
product quality, improvement in workmanship and efficiency, a decrease in wastage,
and increase profit. Meanwhile, an external quality system covers activities aimed at
inspiring confidence in the client that the supplier’s quality system will provide a
product or service that will satisfy the client’s quality requirements. This is called a
“quality assurance system”. So here it revealed the main components of quality
management approach that is quality management system as internal aspects that
direct affect the organizational structure whereas, quality assurance system as the
external aspects that results the customer satisfaction, and within time, budget and
quality so that it can assure or confirm for the best quality.
 As per study done by (Neyestani, 2016) on Metro Manila the implementation of
quality management can be affected mostly on customer’s satisfaction, followed by
cost and time respectively, while minimum effectiveness of quality approach was on
scope. Further it also state that this approach include systematic approach,
documentation, guidance, and audit that can be a part of project management process
from the beginning to the end of the project. It also relates quality management
approach as quality management and marketing tools for developing organizational
performance.

Quality management approach can be concluded as the systematic approach which

can be applied on either at organizational level or the project level. It also assures the
confirmation of quality as per specification, cost and time and assure the proper
management of system of organization. It can also interpret as documentation system
in order to analyze the progress of management. It is business or management tools
for improving quality/scope, reducing cost and time and promoting customer
satisfaction.

3.3.Applications and requirements for management organizations

Construction projects are unique in nature. Every project is different from the nature
but similar to the approach considering the dimension of quality. However
organization is also one of the important things to be considered for proper execution
of projects. The parties involved in the projects have own responsibilities and
relations to each other. Such balance of involvement of parties in construction
management plays vital role for construction management. (Barrie & Paulson)
defined organization team of construction project or other specified project as task
force. It relate the team as integrated organization which is comprised of different
personnel or manpower working together to achieve common goal. The goal can be
quality, cost and time but ultimate goal is to achieve construction project’s
organization objective as well as business objectives. Types of organizations are as
follows:

a. Line and staff organization

It is developed by Alfred P. Solan. It is also a functional organization where
different personnel or staff divided in accordance to their specialization but
controlled from the CEO or top most managerial member. The main weakness of
such organization is the difficulty in control and creates the greater possibility of
conflict between operating organization and functional staff and it costs more for
operating.
b. Matrix organization
 This type of organization is considered as best organization for operation. It is
because power or responsibilities are divided into functional and project
responsibilities. It has project manager for each project which help to open up the
communication at all levels. The project manager has responsibility of project i.e.
scope, cost, time and functional objectives such as quality assurance, quality
control, design standard, etc are performed. So, it is appropriate when both project
accountability and functional expertise are required.

3.4.Critical success factors in Construction project

Quality management approach is not new concept in the construction project but it is
a systematic method to arrange all the existing system with focus on both business
objectives and owner’s objectives. Some of the factors that determine the success of
construction projects are as follows:

i. Customer focus:
Customer focus is very important in construction project. The main function of
construction industry is to provide customers with facilities that meet their needs.
For organization to be success, it is required to determine the needs of customers
and provide the framework or environment and culture in order to meet those
needs. In each stage of process there should be control so that it minimize the cost
of rework as well as other associated cost and the quality of products.

(Rummance, 2011) states, “TQM focuses on participative management and

strong operational accountability at the individual contributor level. Total quality
involves not just managers but everyone in the organization in a complete
transformation of the prevailing culture.” Here participative management deals
about the management of designer, contractor and others. (Ahmed) states,
“Customers may be either internal or external.” For the project external customers
is the client or owner whereas internal customers are the department within the
organization. For designer client are the customer, whereas designer is customer
for contractor. Thus in order to have best quality, internal customers should have
fulfilled with needs and expectation so that external customer will get final
product with best quality.

Juran defined this as the triple role concept. These three roles are carried out at
every level of the construction process. The designer is a customer of owner. The
designer produces the design and supplies plans and specifications to the
contractor. Thus, the contractor is the designer’s customer, who uses the
designer’s plan and specifications to carry out the construction process and
supplies the completed facility to the owner. The owner supplies the requirements
 to the designer, receives the facility from the contractor, and is responsible for the
facilities operation.

ii. Process Improvements

Process is getting thing done. It involves the different procedures for the final
product or service. Correct and quality process can determine the end-product.
Generally construction project involve men, money, measurement, machine,
materials. Such parameters should be properly measured and analyzed during the
process of manufacture and construction. In case of construction it involves many
testing like concrete ratio test, penetration test, compressive strength test,
workability test, curing test, etc. Also such type of process determines the end
quality of work. Also some of the process should be updated with time and
technology development in order to address the customer needs which is totally
depending upon the customer feedback. Such measurement and analysis can be
done with quality improvement tools in which variations are studied through data
collected from past project and such variations are used for improvement of
process.

iii.Continuous Improvement
The goal of continuous improvement is common to many managerial theories;
however, it specifies a specific step-by-step process to achieve this. This process
consists of nine steps as below: Identify the process, Organize a multi-disciplinary
team to study the process and recommend improvements, Define areas where data
is needed, Collect data on the process, Analyze the collected data and brainstorm
for improvement, Determine recommendations and methods of implementation,
Implement the recommendations outlined in step six, Collect new data on the
process after the proposed changes have been implemented to verify their
 effectiveness, and Circle back to step five and again analyze the data and
brainstorm for further improvement. Management in the construction industry has
two functions:
a. To maintain and improve current methods and procedures through process
control
b. To direct efforts to achieve, through innovation, major technological advances
in construction processes.

The incremental improvement of the process is achieved through process

improvement and control. In every construction organization there are major
processes by which all the work is accomplished. However, there are innumerable
parts in the construction process. Through the use of flow diagrams, every process
can be broken down into stages. Within each stage, input changes to output, and
the methods and procedures directing the change of state (i.e. the construction
procedures) can be constantly improved to better satisfy the customer at the next
stage. During each stage the employees should communicate closely with their
supplier and customer to optimize the work process for that stage. This requires
each employee to recognize their place in the process and their respective supplier
and customer.

3.5.Quality Improvement Techniques

For the improvement in quality, different tools are available which is to be used to
problem solving. Different tools and techniques should be used in combination to get
maximum benefit. These types of tools help the construction organization to organize
the process, problems, risk, etc. throughout the process of construction. Some of tools
used for improving quality are:

i. Flow chart
It depicts process or flow of steps from beginning to end. It serves as a kind of
road map for improving quality. For this it identify the responsibilities and
subsidiary steps and represented in diagram through flow chart.

ii. Checklist
It is simple data check off sheet designed to identify type of qyality problems at
each work station like per shift, per machine, per operator.

iii. Pareto Analysis

Pareto analysis is based on the assumption that improving 20% causes can remove
80% of errors. So this is also called as 80-20 rule. For example: In organization
 20% person takes 80% responsibility, 20% item involves 80% expenditure in
construction.

iv. Cause and effect diagram

It is commonly known as “Fish Bone Diagram”. Cause and effect diagram is very
useful to find out root causes of problems why an error has occurred. If causes of
problems can be addressed, problem is solved. Solution and finding root causes of
problem will have chance of lasting success in eradicating problems.

v. Brainstorming
Brainstorming is used to generate ideas in quantity to identify possible causes of
problems and solutions. Brainstorming is used to generate a list of problems,
identify possible causes and its solution and develop action plans. For
brainstorming, leader’s role is very important to have effective brainstorming and
to have quality decision on any causes.

vi. Statistical Quality Control

Variation is inevitable and developed data in the form of frequency which is
further analyzed in accordance to central distribution, scatter diagram, correlation,
regression, etc. which are use of statistical tools.