The Effects Of TQM Implementation In ISO 9001 Certified . - EScholarship

The Effects of TQM Implementation in ISO 9001Certified Construction FirmsA PhD Dissertation Presented to The Faculty of Civil Engineering DepartmentGokongwei College of Engineering De La Salle University, ManilaIn Partial Fulfillment of the Requirements for the Degreeof Doctor of Philosophy in Civil EngineeringMajor in Construction Technology and ManagementByBehnam NeyestaniDissertation AdvisersDr. Joseph Berlin P. JuanzonDr. Andres Winston C. OretaMarch 2018Revision Number: 1Revision Date: May 20141 Page

APPROVAL SHEET

DECLARATIONI, Behnam Neyestani, declare that this dissertation is an original research work hasbeen done by me and has not been submitted to earn a degree at any other academicinstitution previously. All sources of information (Materials) that extracted andreproduced from other authors in this dissertation, were accordingly acknowledged, anda reference list has been appended.I acknowledge that some parts of this research work were used to write someconference papers, articles, and working papers during preparing this dissertation, aslisted below.Conference papers:Neyestani B., & Juanzon, J. B. P. (2017). “Effects of ISO 9001 Standard on CriticalFactors of Project Management in Construction Industry.” In Plaisent, M., & Valenzuela,A.J. (Eds.), Proceedings of 2017 Manila International Conference on “Trends inEngineering and Technology” (MTET-17), pp. 53-57, Jan. 23-24, 2017 17503.pdf).http://doi.org/10.17758/URUAE.AE0117503 (Best final Paper Award).Neyestani B., & Juanzon, J. B. P. (2017). “Impact of ISO 9001 Standard on the QualityCosts of Construction Projects in the Philippines.” In Plaisent, M., & Valenzuela, A.J.(Eds.), Proceedings of 2017 Manila International Conference on “Trends in Engineeringand Technology” (MTET-17), pp. 58-63, Jan. 23-24, 2017 Manila, Philippines. (ISBN:978-93-84468-98-9). (Available at ls publications:Neyestani, B., & Juanzon J. B. P. (2017). “ISO 9001 Standard and Organization'sPerformance: A Literature Review.” International Journal of Advance MultidisciplinaryResearch, 4(2), pp. 6-13. estani, B., & Juanzon, J. B. P. (2016). “Identification of A Set of Appropriate CriticalSuccess Factors (CSFs) for Successful TQM Implementation in Construction, and Otheriii

Industries,” International Journal of Advanced Research, 4(11), pp. Neyestani, B. (2016). “Impact of ISO 9001 Certification on the Projects' Success ofLarge-Scale (AAA) Construction Firms in the Philippines,” International ResearchJournal of Management, IT & Social Sciences, 3(11), pp. stani, B., & Juanzon, J. B. P. (2016). “Developing an Appropriate PerformanceMeasurement Framework for Total Quality Management (TQM) in Construction andOther Industries.” IRA International Journal of Technology & Engineering, 5(2), pp. 3244. http://dx.doi.org/10.21013/jte.v5.n2.p2Working papers:Neyestani, B. (2017, January). “Effects of ISO 9001 on Non-Financial and FinancialPerformance in the Organizations: A Review,” http://dx.doi.org/10.2139/ssrn.2964208Neyestani, B. (2017, March). “Seven Basic Tools of Quality Control: The AppropriateQuality Techniques for Solving Quality Problems in the 955721Neyestani, B. (2017, March). “Principles and Contributions of Total Quality Mangement(TQM) Gurus on Business Quality Improvement,” http://doi.org/10.5281/zenodo.345428Neyestani, B. (2017, March). “Quality Costing Technique: An Appropriate FinancialIndicator for Reducing Costs and Improving Quality in the 49993Neyestani, B. (2016, December). “Effectiveness of Quality Management System (QMS)on Construction Projects,” :iv

ABSTRACTTQM philosophy was first introduced by quality gurus, it is an organization-wideapproach considering all crucial factors for producing the products and services with goodquality. Indeed, TQM system can be successful to capture its goals with adopting ISO9001, establishing a proper QMS for processes of an organization. In fact, theconstruction practitioners and researchers are rarely serious to apply critical TQMpractices and ISO 9001 at the same time. Thus, this study designed particularly to identifythe effects of a set of TQM CSFs and ISO 9001 solely and conjointly on organizationalperformance, and also to verify whether ISO 9001 as a TQM tool has a complementaryrole with TQM in enhancing organizational performance within ISO 9001-certifiedconstruction firms belonged to Large-scale and located in Metro Manila, Philippines.To shed more light on these issues, a systematic literature review was carefully doneon the context of the study across a lot of sources from databases, which could providevaluable insight on specifying the main concepts of this research. However, the sevenmost essential TQM practices, ten right KPIs in the basis of BSC, and the mechanism ofISO 9001 were uncovered that are so much important in formulating a successful TQMimplementation model. After determining main variables, an initial TQM framework hasbeen made in corresponding with the evidence of the literature body. In order to test theeleven derived hypotheses, representing the interrelationships among TQM CSFs, ISO9001, and organizational performance (KPIs) in the construction industry.To examine empirically this aforementioned TQM framework, a mono quantitativedesign based on survey strategy was justifiably selected as an appropriate methodology,and accordingly a survey questionnaire was built to collect data at a particular point intime. A self-administered questionnaire method was enforced, and 172 questionnaireshave been sent to the targeted sample, but the only 126 of them with a response rate of73.3% could be valid and usable for use in statistical data analysis. Also, statisticalmethods such as descriptive statistics and inferential statistics techniques were applied inanalyzing the obtained data using SPSS 17 software.v

The outcomes of this investigation demonstrated that the implementation of a set ofcritical TQM practices is not generally performed at a desirable degree in the constructioncompanies. Interestingly, the results of multiple regression analysis indicated thatcustomer focus has the greatest impact on better performance, followed by employeeinvolvement, training, process management, leadership, and supplier qualitymanagement. While information and analysis cannot be able to have a significant role inpromoting organization's performance. Most importantly, this research found that each ofboth TQM CSFs implementation and ISO 9001 certification has meaningfully a positivecontribution on organizational performance, and provide noticeable benefits in theconstruction context. It is worth to bear in mind that TQM possesses better outcomes andmuch broader approach than ISO 9001 in an organization. Overall, the enhancedperformance can be significantly obtained by performing the combination of a set of sixTQM CSFs and ISO 9001 as a whole at very high level, and the absence of contradictionbetween them, has suggested to use and integrate these quality management programs forachieving superior performance at all aspects of the construction firms. Finally, based onenough evidence, an optimal TQM model is developed with the six most critical TQMand ISO 9001 as enabling criteria, and a set of ten right KPIs (BSC) as result criteria,providing the overall guidance for pursuing performance excellence at project andenterprise levels in the construction industry.vi

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TABLE OF CONTENTSTITLE.iAPPROVAL viiTABLE OF CONTENTS.viiiLIST OF TABLES.xviLIST OF FIGURES.xixLIST OF ABBREVIATIONS.xxiLIST OF APPENDICES.xxiiCHAPTER 1 – INTRODUCTION .11.1 BACKGROUND OF THE STUDY.11.2 STATEMENT OF THE PROBLEM.51.3 OBJECTIVES OF THE STUDY.81.3.1 Main Objective.81.3.2 Specific Objectives.81.4 SIGNIFICANCE OF THE STUDY.91.4.1 Academic Significance.91.4.2 Practical Significance.101.5 SCOPE, AND DELIMITATION OF THE STUDY.121.6 ASSUMPTIONS OF THE STUDY.141.7 OPERATIONAL DEFINITION OF TERMS.14CHAPTER 2 – LITERATURE REVIEW.182.1 TOTAL QUALITY MANAGEMENT (TQM), AND ITS EFFECTS ONORGANIZATIONAL PERFORMANCE.182.1.1 The Concept and Definitions of Quality.182.1.2 Basic Definitions of Total Quality Management .192.1.3 Evolution of Total Quality Management.212.1.4 The Quality Gurus Approaches.232.1.5 Quality Award Models (Frameworks) for TQM Implementation.242.1.5.1 Deming Prize (DP).252.1.5.2 Malcolm Baldrige National Quality Award (MBNQA).262.1.5.3 European Foundation for Quality Management (EFQM).272.1.5.4 Comparison of Quality Awards.282.1.6 Quality, Total Quality Management, and Construction Industry.292.1.6.1 Quality and Construction.292.1.6.2 Total Quality Management and Construction .312.1.7 Implementations of TQM within Construction Firms.34viii

2.1.8 Total Quality Management Critical Success Factors forConstruction.392.1.9 Performance Measurement (Indicators) System for TQM.452.1.9.1 Organizational Performance Measurement in Construction.452.1.9.2 Constructors Performance Evaluation System (CPES) . 472.1.9.3 Main formal Performance Measurement Systems (PMSs) forTQM Implementation.512.1.9.4 Identifying KPIs for PMS (BSC).522.1.10 Barricades of Implementing TQM in Construction Industry.572.1.11 Tools and Techniques of Total Quality Management (TQM).582.1.12 Total Quality Management and Organizational Performance inConstruction.592.2 ISO 9001 AND ITS EFFECTS ON ORGANIZATIONALPERFORMANCE.622.2.1 History and Development of ISO and ISO 9001.622.2.2 Revision of ISO 9001 Certification.632.2.3 The ISO 9000 Family (Standards) .642.2.4 ISO 9001:2008 Requirements.652.2.4.1 Overview of ISO 9001:2008.672.2.4.2 Requirements of ISO 9001 Standard.692.2.5 Adoption of ISO 9001 Certification in the World.712.2.6 ISO 9001 certification and Construction Industry.712.2.7 Barriers of ISO 9001 Certification in Construction Industry.732.2.8 The Effects of ISO 9001 Certification on ENT,ANDISO9001CERTIFICATION.782.3.1 TQM and ISO 9001 Certification within Construction Firms.782.3.2 Comparison of TQM and ISO 9001 Certification.782.3.3 The Relationship of TQM and ISO 9001 Certification, and their Effectson Organizational Performance.81CHAPTER 3 – CONCEPTUAL FRAMEWORKS, AND HYPOTHESES.853.1 FORMULATION OF CONCEPTUAL FRAMEWORK.853.1.1 Process of Constructing a Conceptual Framework.853.1.2 Identification of Key Concepts (Variables) from LiteratureReview.873.1.2.1 Identification of the TQM Practices Variables.883.1.2.2 Identification of Organizational Performance Variables.943.1.2.3 The Identification of ISO 9001:2008 variables.983.1.3 Conceptual Framework of the Study.993.2 HYPOTHESES DEVELOPMENT.100ix