LECTURE 5:

TOTAL QUALITY
MANAGEMENT (TQM) IN
MALAYSIAN CONSTRUCTION
PROJECTS
Lecturer: Professor Sr Dr Fadzil Hassan
padzil037@uitm.edu.my

Centre Of Studied For Quantity Surveying

Faculty Of Architecture, Planning & Surveying (FSPU),
UiTM Shah Alam
Module Learning
Objectives:
 The aim of this lecture is to enable able students to learn
the key concepts of quality management that underpins
its application in construction projects

 Upon completion the students are expected to be able to:

-The significance of the concepts of quality and
management
-identify and explain Total Quality Management
(TQM) and its features
- identify the issues of quality in the Malaysian
construction industry
- describe how TQM applies in project organisations
QUALITY, MANAGEMENT & QUALITY MANAGEMENT SYSTEM
Quality – Value
Judgement
• Values are beliefs about right and wrong, moral or
immoral, bad and good

• Examples of Values: dependability, reliability, loyalty,

commitment, open-mindedness, consistency,
honesty, efficiency.

• Can be very subjective depending the person’s

background, culture, religion, education, beliefs, etc.

• Applied to human social interaction

• Applied to both construction organization and

construction projects
Quality – Variable Value
Judgement
 Quality in Business &
Projects
 Quality - attributes e.g., process, product, or service
 Extent it satisfies a specified set of standards or requirements.
 The quality of something can be determined
 Important for quality to be measured with the right measurement
 How - by comparing a set of inherent characteristics with a set of recognized
requirements and standards.
 Why is quality critical?
- to satisfying your customers
- Retain their loyalty
- To win competition/tenders
 In business - quality contribute to long-term revenue and profitability.
 Enables a product or service to charge and maintain higher prices.
 Quality can only be achieved with application of Quality Management System*
 Why Customer
Satisfaction?
 Customer satisfaction - measures how products
or services supplied by a company meet or
surpass a customer's expectation.
 Why customer satisfaction is important:
1. Indicator of consumer repurchase intentions
and loyalty (repeat customers)
2. Differentiation from your competitors
3. Increases customer lifetime value (loyalty)
4. Reduces negative word of mouth
5. It’s cheaper to retain customers than
acquire new ones

• In construction - would your client/customer appoint

you again?
Importance of looking after the External
& Internal Customer
Internal Customer:
 Staff/employee
 Suppliers
 Sub-contractors
 Financiers
 Management
Systems
 The management process: Planning, Organising,
Monitoring & Control, Communicating, Leading &
Motivating

 Management Systems:
- Procedures/process
- Guiding management process (discipline)
- Deliver services/products produced to the
customer.

 Without the management system - management

process would be disorganized; chaotic and
ultimate the organization will become
dysfunctional

 In business - “standard based” e.g., ISO 9001

Quality system

 ISO – assist organizations to develop, implement,

and maintain based on a recognized, uniform,
reliable and customer focused standard.
When there is no
agreement on a
standard
procedure…….
 Quality Management
Systems
• A formalized system that documents processes, procedures,
and responsibilities for achieving quality policies and objectives.

• Aim - to maintain current performance and to create new

opportunities.

• Elements of a typical Quality Management Principles (QMPs):

• Purpose (aim and objectives)
• Direction (vision)
• Engagement (organizational values, people and processes)
• Recognition (conformance to specifications (QA & QC),
quality audits and accreditation)
• Empowerment (delegation of roles and responsibilities)
• Enhancement of skills and knowledge (Learning and re-
learning, training, continuing professional development
(CPD)
• Continuous improvement (innovation)

11
Features of Quality
Management
Systems (QMS)
 A structured and systematic approach

 Continuous quality improvement.

 Focused at better managerial, supervisory and operational

performance

 Benchmark - ISO (International Organization for

Standardization) certification

 ISO - an independent, non-governmental, international

organization that develops standards to ensure the quality,
safety, and efficiency of products, services, and systems

 Value of ISO - offers a recognition for the organization’s

business performance and commitment to customer service
and access to global market

 Based on the concepts of Total Quality Management (TQM)

QUALITY MANAGEMENT SYSTEM STANDARD, ISO & TOTAL
QUALITY MANAGEMENT (TQM)
International Organization
for Standardization (ISO)
• ISO (International Organization for Standardization) - an independent,
non-governmental, international organization that develops standards
to ensure the quality, safety, and efficiency of products, services, and
systems

• Set up in 1947 and is based in Geneva, Switzerland, its purpose is to

facilitate and support national and international trade and commerce
by developing a common standards recognized globally.

• The more business is controlled, the consistent it becomes; with

consistency, customers are getting the same good service or same
good products every time

• ISO certifications exist in many areas of industry, from energy

management and social responsibility to medical devices and energy
management. ISO standards are in place to ensure consistency.

• Each certification has separate standards and criteria and is classified

numerically. Eg. ISO 9001 supports to increase the control of business
processes.
Total Quality
Management (TQM)
 ISO standards provide requirements or give guidance on
good management practice

 The QMS was based on the international standard ISO

9000.

 The benefits of the ISO certification:

 Create organization wide awareness for quality

 Promote adoption of cost-effective quality

management systems by manufacturers and service
providers

 Enhance the competitiveness of the organisation’s

products and services in the global marketplace.
Total Quality
Management (TQM)
 Total:
A holistic organisation process where everyone
must be involved

 Quality:
Provide uniform quality product through systematic
production process that meets the customers
expectations.

 Management:
Systematic process/system of producing the product
or service (Scientific Management)
 Application of Total
Quality Management
(TQM)
 Assist organisations to develop a systematic,
organised and controlled management system

 Aim - to achieve efficiency (cost effective) &

effectiveness (customer satisfaction)

 How – by creating organization-wide

participation (systemic process where everyone
is involved)

 Continuous improving processes

 Why TQM? Global marketplace – competition

 Application of Total
Quality
Management (TQM)
 Pre-requisites of effective TQM to control
management consistency and improve
products and services:
 quality of leadership,
 methodical and transparent
management process (everyone
understand the process)
 products or services must exceed
customer needs for value

 Products and services provided must be:

 continuously improving,
 timely/on time
 cost-effective
 produced in am innovative, and
productive manner

• Empowering employees - involvement of

everyone within the organization
Total Quality Management (TQM): The Global
Brands (Products)
Total Quality
Management
(TQM):
Construction
Global Brands
Renowned
Management
& Quality
Gurus
Testimony of Quality
ELEMENTS OF QUALITY MANAGEMENT TO SUPPORT TOTAL QUALITY
MANAGEMENT (TQM)
 People
Management
What all
Key Performance successful
Indicators (KPI) companies and
projects have in
Best Practice
common:
Change Management Elements of Quality
Management Practices
Benchmarking
Learning
Organisations
 Japan

People
Europe & America Management
(Adapted from
INNOVATION Malaysia
Imai M., 1986)
Quality
Management &
Change
 Organisations exists in a constantly changing
environment

 Inability or resistant to change will result in severe

consequences to the organisation

 Therefore organisations need to constantly adapt itself to

exist in the changing environment to survive

 Changing means need to continue improving through the

process of learning and relearning

 Need to benchmark product/services/process and output

with market leaders

 Elements of change management:

 Mission changes
 Strategic changes
 Operational changes
 Technological changes
 Changing the attitudes and behaviors of personnel
 Learning
Organisation
• A learning organisation - a company that facilitates the
learning of its members and continuously transforms itself.

• Necessity - to remain competitive in the business environment.

• Companies need to learn faster than their competitors and to

develop a customer responsive culture.

• Organizations need to maintain knowledge about new

products and processes, understand what is happening in the
outside environment and produce creative solutions using the
knowledge and skills of all within the organization.

• This requires co-operation between individuals and groups,

free and reliable communication, and a culture of trust
Key Performance
Indicators (KPI)
• Used by organizations to evaluate its success or the
success of a particular activity in which it is engaged.

• Success is defined in terms of making progress toward

strategic goals

• Choosing the right KPIs is reliant upon having a good

understanding of what is important to the organization.

• 'What is important' often depends on the department

measuring the performance - the KPIs useful to finance
will be quite different than the KPIs assigned to sales, for
example.
 Key Performance
Indicators (KPI)
• A very common method for choosing KPIs is to apply a
management framework such as the balanced scorecard

• Key performance indicators (KPIs) are ways to

periodically assess the performances of organizations,
business units, and their division, departments and
employees.

• KPIs are most commonly defined in a way that is

understandable, meaningful, and measurable.

• In order to be evaluated, KPIs are linked to target

values, so that the value of the measure can be
assessed as meeting expectations or not.
Benchmarking
 Benchmarking is the process of comparing one's
business processes and performance metrics to industry
bests and/or best practices from other industries.

 Process of benchmarking - the management identifies the

best firms in their industry, or in another industry where
similar processes exist

 Compare the results and processes of those studied (the

"targets") to one's own results and processes.

 In this way, they learn how well the targets perform and,
more importantly, the business processes that explain why
these firms are successful

 There is no single benchmarking process that has been

universally adopted.
 Best Practice
 A best practice is a method or technique that has
consistently shown results superior to those achieved
with other means, and that is used as a benchmark.

 A "best" practice can evolve to become better as

improvements are discovered.

 Best practice is to describe the process of developing

and following a standard way of doing things that
multiple organizations can use.

 Best practices are used to maintain quality as an

alternative to mandatory legislated standards and can
be based on self-assessment or benchmarking.

 Best practice is a feature of accredited management

standards such as ISO 9000 and ISO 14001.
Best Practice
 Best practice in management came to the fore
with dominance of change management
thinking.

 It was developed on the conviction that in the

changing environment when business
becomes more and more competitive, no
organization can stand-alone and be
disengaged.

 The key to competitive edge is to promote

knowledge-based approach to management
through the process of continuous
development supported by learning and re-
learning, adapting innovation and measuring
performance
QUALITY
MANAGEMENT
SYSTEMS & THE
MALAYSIAN
CONSTRUCTION
INDUSTRY
Quality Issues in the Malaysian
Construction Industry: Corruption
Quality Issues in the Malaysian
Construction Industry: Safety & Health
Quality Issues in the
Malaysian
Construction
Industry:
Workmanship
Quality
Quality Issues
in the Malaysian
Construction
Industry:
Construction
Disputes
Quality Issues in the Malaysian
Construction Industry: Project
Delays
Quality Issues in the Malaysian
Construction Industry: Foreign
Worker Issues & Abuse
 Kelewatan pembayaran jejaskan kontraktor
By
Wartawan MalaysiaGazette -
Quality Issues in 15 August 2018
the Malaysian
Construction
Industry: Bad
Paymasters
Quality Issues
in the
Malaysian
Construction
Industry:
Housing issues
Quality Issues in the Malaysian
Construction Industry: Low Technology
Quality Issues in
the Malaysian
Construction
Industry: Capital
Outflow
Quality Issues in the
Malaysian Construction
Industry: Environmental
Problems
Recap Question:
What can we say about
quality in the
Malaysian
construction industry?
Thank You
 Scales of Projects & Project Objectives
Construction Project
Management
Level/Objective Individual project
Features Activities/processes
undertaken to manage the
process of creating (design)
and physically produce (build)
the built facility
Stakeholders • Client (an organisation -
property developer, Individual,
a government
department/unit)
• Building team
(consultant/designers and
builders/contractors)
Size/level Project site level
Focus Physical delivery of project
Measurables • Project's physical completion • Completion of the projects within
- time, cost, quality, etc.
Construction Program Management
Several projects to support a policy
Activities/processes undertaken the
to manage a of projects that are
similar or related to one another;
managed and/or coordinated as a
group
• Client (Private - large organisation or
corporation; Government -
department or Agency)
• Consultant Team (not limited to
design consultant; may include
financial, economic, marketing
consultants, etc.)
• Building team (team of consultant
and contractors)
Regional/state/township level
Physical delivery of the group of
projects in the programme
the programme - Construction (time,
cost, quality, etc.); commercial, social
and/or environmental targets
Construction Portfolio Management
Policy (Government, Corporate Body
or Promoter)
Activities/processes undertaken to
manage a group of different programs
and/or projects within the same
organization, which may be related or
unrelated to one another.
• Client (Private - large organisation or
corporation; Government -
department or Agency)
• Consultant Team (not limited to
design consultant; may include
financial, economic, marketing
consultants, etc.)
• Building team (team of consultant
and contractors - usually for big/mega
projects)
Country/national level
Physical delivery of project
programmes
• Completion of the projects within
the programmes as according the
policy statement.
 Project Objectives/Critical Success Factors
(CSF) Portfolio Objectives/CSF

Policy
Programme Objectives/CSF
Project Objectives/CSF
Business Profit or Cost Benefit

Marketing Corporate Strategic

Part of investment
of the organisation Planning Management

Health & Safety Environment Program/

Corporate Financing Asset Management

Fulfilment of All Contractual Operations Vision, Mission, Objectives

Obligations

 Single Project  Many projects/township  Many programmes divided into regions or special projects
 Key player: Contractor & Building team  ‘Developer’ led  Ministry, Corporate Body or Promoter led
 Size/location - Single project site  Scope: Multiple project sites  Scope: Multiple programmes (State/regions/townships)
 (ISO 9001)
Organisation Management:
• Strategic Management
• Business Management

Quality •

•
Human Resource
Management
Asset Management

Management
• Financial Management

Systems
Application Project Management:

in  Time - Project Planning &

Work Breakdown Structure
(WBS)

Construction
 Cost - Cost Management
System (ISO 9001)
 Quality - Quality
Management System (QMS),
QLASSIC, CONQUAS
 Health & Safety - Health &
Safety Management System
(OHSAS 18001), SHASSIC
 Environment - Environmental
Management System (ISO
14001), GBI, MyCREST,
GreenRE
Plugging Organization
Level
Ministry Level

the
Malaysian
Quality
Problems
Project “Department
Development Level”
(Township) Level
 CIMP 2005-2015

Reforming the Malaysian Construction Industry

Implications of CITP to Malaysian
Project Management

Construction Quality
Standards & Systems

Environmental
Systems in
Construction

Perolehan Hijau
(Green Procurement)
SHASSIC
Safety and Health Assessment
System in Construction
Implications of CITP to Malaysian
Project Management

Value Management
(VM)
Building Information
Modelling (BIM)

Environmental Audits
(GBI, MyCREST,
LCCF, PH JKR)
Industrialised Building
System (IBS)
Exercise Question
1. Define project quality and critical factors in the context of the following
stakeholders in the Malaysian construction industry:
a) Ministry of Works
b) JKR
c) Private Developer
d) Consultants
e) Contractor

2. En. Muhammad is the General Manager for Syarikat Perumahan Negara

Sdn. Bhd. (SPNB). Suggest to En Ahmad how the following be applied in his
project organisation:
f) Best Practice
g) Key Performance Indicator (KPI)
h) Learning organisation
i) Change Management

3. Sr Tan is the new partner to XYZ Cost Consult Sdn. Bhd., a quantity surveying
(QS) firm. Provide an example of a QS task and suggest Sr Tan can apply the
Total Quality Management (TQM) concepts of Plan-Do-Check-Act (PDCA) to
promote continuous improvement.