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(Chase, G.W., 1993) EFFECTIVE TOTAL QUALITY MANAGEMENT (TQM) PROCESS FOR CONSTRUCTION
(Chase, G.W., 1993) EFFECTIVE TOTAL QUALITY MANAGEMENT (TQM) PROCESS FOR CONSTRUCTION
(Chase, G.W., 1993) EFFECTIVE TOTAL QUALITY MANAGEMENT (TQM) PROCESS FOR CONSTRUCTION
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PROCESS FOR C O N S T R U C T I O N
By G. W. Chase, ~ Member, ASCE
INTRODUCTION
~Assoc. Prof., Constr. Engrg. Program, Dept. of Civ. and Constr. Engrg., Iowa
State Univ., Ames, 1A 50011-3232.
Note. Discussion open until March 1, 1994. To extend the closing date one month,
a written request must be filed with the ASCE Manager of Journals. The manuscript
for this paper was submitted for review and possible publication on February 19,
1993. This paper is part of the Journal of Management in Engineering, Vol. 9, No.
4, October, 1993. 9 ISSN 0742-597X/93/0004-0433/$1.00 + $.15 per page.
Paper No. 5655.
433
TQM WORKSHOPS
Iowa State University has conducted a series of four workshops on the
use of TQM in the design and construction of buildings. Three of these
workshops were conducted in conjunction with the American Society for
Quality Control (ASQC). These workshops included a cross section of own-
ers, designers, and contractors, many of whom are at various stages of
implementing TQM in their organizations. The workshops included pre-
sentations by companies that are leading the way in adopting TQM, as well
as breakout discussion sessions on TQM implementation. Topics have in-
cluded training, organization, management involvement, customer and em-
ployee feedback, teams, employee involvement, employee recognition, sup-
plier improvement, partnering, formulation and execution of a general
implementation plan, and results.
The first workshop outlined construction industry problems, discussed
actual and potential applications of TQM to the construction process, and
proposed a plan of action. The participants concluded that all parties--
owners, designers, contractors, and others--were taking a less-than-profes-
sional approach to the design and construction process. Many of the industry
problems were attributed to poor management practices and poor leadership
on the part of owners, designers, and contractors. The participants rec-
ommended that owners lead the way by first adopting TQM, then requiring
TQM of other members of the design/construct team (TQM 1990).
The second workshop concentrated on discussing and agreeing upon the
steps involved in implementing TQM in a construction company. An 11-
step implementation model was developed (Planning1991). The results were
reported in this journal by Chase and Federle (1992). The third workshop
concentrated on case studies and particulars of implementation (Applying
1992). A fourth workshop was held May 20-21, 1993, in Chicago, with the
emphasis on refining the process.
These workshops have resulted in a significant exchange of information
on real-world practices. So far, participants have arrived at a consensus on
what should be in a TQM process, and have agreed on the steps necessary
to implement the process in the design and construction of facilities. This
paper discusses what should be in a TQM process.
Design Consumer
Suppliers and ~ research
of materials / redesign
and Receipt J l Consumers
equipment and test of ,"- v Distribution " ~
A ...~aterials
Production, assembly, inspection ~
434
Once the product or service has been delivered to the customer, the
customer's degree of satisfaction is measured. Customer recommendations
for improvement are sought. That input is then used for redesign and im-
provement of the processes involved.
This flow diagram in Fig, 1, with its emphasis on communication, team-
work, and "process improvement," is central to Deming. The concept may
appear to be simple on the surface, but it requires enlightened leadership
and a considerable increase in normal levels of training. Instruction in topics
such as teamwork, structured problem solving, variation, measurement,
leadership, safety, communication, and job-related skills is necessary to
make it happen.
Deming, among others, believes that the traditional approach to man-
agement in the United States is flawed. There is too much emphasis on
short-term profits and not enough emphasis on long-term survival, inno-
vation, and improvement. There is not enough involvement of adequately
trained and motivated employees. He believes that 85% of the problems in
the delivery of goods and services is caused by the system, which is the
responsibility of management. Only 15% is caused by employees (Walton
1986). Deming's advice to American management to correct these defi-
ciencies is represented in condensed form in his famous 14 points.
Deming maintains that the points apply to all industries, large and small,
and to the service industries as well as manufacturing. His points are often
misunderstood. The reader is referred to a complete discussion of Deming's
14 points in The Deming Guide to Quality and Competitive Position, by
Gitlow and Gitlow (1987). The 14 points are not individually discussed here,
because their essence is incorporated in the following discussion of TQM.
436
Training
Training is necessary because TQM uses a participative, disciplined, and
organized approach to problem identification and problem solution. To do
this, there is also a requirement for the collection and evaluation of quan-
titative information. Training topics typically include quality awareness,
teamwork, leadership, interpersonal communication, problem solving skills,
and job-related technical skills, tn addition quality-improvement teams often
receive instruction as a unit. Topics include interpersonal communications
and teamwork to help them work together. They also receive instruction in
problem identification and process improvement, to include what to mea-
sure, how to measure, and how to interpret the data. Measurement helps
establish baseline data, shows the need for improvement, and demonstrates
improvement or lack of it.
There is a variety of consultants who specialize in this training. Often a
company will send a cadre of personnel to a "train-the-trainer" course so
that the cadre can then return to the company and train the other company
IMPROVED COMMUNICATIONS
437
Improved Communications
Improved communications occupies the subfloor of the structure in Fig.
2, and it is a key element in achieving the four elements above it. The lines
around organizational elements on an organization chart create islands (pur-
chasing, personnel, comptroller, MIS, estimating, equipment maintenance,
engineering, warehouse, marketing, project management, etc.). The more
of these blocks that exist and the more levels there are in an organization,
the more difficult it is to communicate. Within many companies there is
also fear. Fear inhibits open communication. Deming says we must drive
out fear from within our organizations so that employees become eager
participants in the improvement process.
How is this improvement in communication accomplished? Within com-
panies, these improvements occur largely through a combination of aware-
ness, instruction in interpersonal communication, leadership instruction,
and an increased emphasis on teamwork.
Islands outside companies exist also. For construction these are the de-
signer, owner, contractors, subcontractors, suppliers, and regulatory agen-
cies. Bridges are built between these islands so that information flows freely
and willingly. A variety of techniques are used, such as joint training in
TQM, the practice of TQM by each of the parties, and by "partnering."
Partnering is too broad a topic to be discussed in detail here. Partnering is
an agreement by two or more parties associated with the design and con-
struction of a facility to work together toward a successful project in which
their mutual objectives are accomplished in a nonadversarial atmosphere.
Partnering is fully discussed in Partnering; A Concept for Success (1992)
and "In Search of Partnering Excellence" (1991). In addition, a chapter on
partnering and two case studies on partnering have been included in Im-
plementing TQM in a Construction Company (Chase 1993). When partner-
ing is used on construction projects, there is a marked improvement in
communication.
Teamwork
TQM recognizes that people working together in teams toward mutual
goals are generally more effective than individuals working alone. Teams
composed of employees from various parts of the company work to improve
processes. There are also single-craft teams, often referred to as natural
work teams, which work to improve their own planning and work. Process-
improvement teams receive instruction on how to work together and to use
the specialized process-improvement tools that are part of TQM.
On individual construction projects, the parties may establish a team
environment in which the general contractor, subcontractors, suppliers,
owner's representative, and designers all work together. Sometimes this is
the result of TQM; other times it is the result of the partnering process.
Sometimes it is both.
439
Customer Satisfaction
Customer satisfaction becomes a philosophy that permeates the organi-
zation and transcends the "every man for himself" approach. It becomes
the ultimate goal of every employee. In the design and construction of
facilities, more emphasis is placed on defining the customer's needs and
wants, translating these needs and wants into accurate plans and specifi-
cations, and then performing construction in such a manner that the cus-
tomer's expectations are met. Engineering firms have reported to the writer
very significant savings that resulted from helping customers better define
their needs.
information-gathering techniques such as surveys measure the level of
customer satisfaction. These techniques seek out areas of dissatisfaction and
feed the information back to the company so that action can be taken to
eliminate the source of any dissatisfaction. This is true for both the external
and internal customers (employees). Kaoru Ishikawa (1985), a leading Jap-
anese authority on quality management, claims that at as a first step in
quality control (or quality management, if you will) it is imperative to make
the customer complain so that you know where you stand. The identification
of customer perceptions should be pursued aggressively, since, as ishikawa
points out, the known complaints probably represent only the tip of the
iceberg. Construction companies are indeed using customer surveys. For
example, the Granite Rock Company, Watsonville, Calif., one of the 1992
Baldrige Award winners, has used surveys extensively as part of their qual-
ity-management program (Chase 1993).
Supplier Improvement
Designers and contractors cannot deliver a quality facility to an owner
without the active participation of other contractors and suppliers in their
quality program. Companies that practice TQM clearly outline their ex~
pectations to their suppliers, then help them improve. Suppliers (which
includes subcontractors) often attend courses offered by their customers.
They are expected to implement their own quality-management programs.
If suppliers cannot meet the quality standards of the buyer~ then they are
dropped as suppliers.
Deming goes so far as to recommend that the number of suppliers for a
particular service or product be reduced to one. Whether or not one agrees
with that philosophy, TQM envisions that the number of suppliers for a
product or service be reduced, and that price not be the only criteria in
supplier selection. This not only reduces undesirable variability, but it allows
the parties to better understand and meet each other's expectations, What
this means for construction is that both owners and contractors should be
440
9 Motivating
9 Instilling the internal customer concept
441
Continuous Improvement
The upper part of the structure in Fig. 2 is "Continuous improvement."
This feature distinguishes TQM from short-term management fixes. With
TQM, everybody within the organization is looking constantly for ways to
improve--always looking for 100% customer satisfaction and error-free
performance. The focus is not on the 80% that is going well, but is instead
on the 20% (often more) that isn't.
CONCLUSION
This paper outlined the basic elements of TQM for construction, as prac-
ticed by both design and construction firms. TQM is paying dividends for
companies who have chosen to adopt it. However, TQM works better when
all parties involved in the design and construction of facilities practice TQM,
not just contractors. The construction industry can benefit by involving more
owners and designers.
APPENDIX. REFERENCES
Applying TQM to the design and construction of buildings; Proc., 3rd Workshop on
TQM in Building Design and Construction. (1991). Iowa State University, Ames,
Iowa.
Chase, G. W. (1993). Implementing TQM in a construction company. Associated
General Contractors of America (AGC), Washington, D.C.
Chase, G. W., and Federle, M. O. (1992). "Implementation of TQM in building
design and construction." J. Mgmt. in Engrg., ASCE, 8(4), 329-339.
Deming, W. E. (1986). Out of the crisis. Massachusetts Institute of Technology
(MIT), Cambridge, Mass.
Deming, W. E. (1982). Quality, productivity, and competitive position. Massachusetts
Institute of Technology (MIT), Cambridge, Mass.
442
Gitlow, H. S., and Gitlow, S. J. (1987). The Demingguide to quality and competitive
position. Prentice-Hall, Inc., Englewood Cliffs, N.J.
"In search of partnering excellence." (1991). Spec. PubL 17-1, Construction Industry
Institute (CII), Austin, Tex.
Ishikawa, K. (1985). What is total quality control? The Japanese Way. Prentice-Hall,
Inc., Englewood Cliffs, N.J.
Oswald, T. H., and Burati, J. L. Jr. (1992). "Guidelines for implementing total
quality management in the engineering and construction industry." Source Doc-
ument 74, Construction Industry Institute (CII), Austin, Tex.
Partnering; a concept for success. (1992). Associated General Contractors of America
(AGC), Washington, D.C.
Planning for the implementation of TQM in building design and construction; Proc.,
2nd Workshop on TQM in Building Design and Construction. (1991). Iowa State
University, Ames, Iowa.
TQM in building design and construction; Proc., 1st Workshop on TQM in Building
Design and Construction. (1990). Iowa State University, Ames, Iowa.
Walton, M. (1986). The Deming management method. Putnam, New York, N.Y.
443