Adoption and Implementation of Total Quality Management (TQM) in the Florida Construction Industry

Introduction

Quality is one of the critical factors in the success of construction projects.  Quality of construction projects, as well as project success, can be regarded as the fulfillment of expectations (i.e. the satisfaction) of the project participants (Ahmed et al., 2005).  Unlike manufacturing and service industries, where a standard product is regularly produced, most products of the construction industry are one-offs, specially designed for a specific purpose.  Hence, attainment of a quality level is difficult both to specify and to monitor (Ahmed and Kangari, 1995).  Quality assurance and quality management systems are topics which have recently received increasing attention worldwide (Ahmed et al, 2005).

The primary purpose of Total Quality Management (TQM) is to provide excellence in customer satisfaction through continuous improvements of products and processes by the total involvement and dedication of each individual who is in any way, a part of that product/process (Ahmed and Kangari, 1995).  TQM involves a strong commitment to two guiding principles: customer satisfaction and continuous improvement.  The principles of TQM create the foundation for developing an organization’s system for planning, controlling, and improving quality (Deffenbaugh, 1993).

TQM is a structured approach to improvement.  If correctly applied, it would assist a construction company in improving its performance.  While problems such as rework, scrap, delivery delays etc. may be minimized by adopting a Quality Assurance (QA) program, issues like unnoticed delays, frustration, redundant internal efforts, over-control, manpower inefficiency, low morale etc., which are largely hidden, can only be exposed and cured by adopting TQM (Ahmed and Ahmad, 1997). In 1992, the Construction Industry Institute in Austin, Texas, published guidelines for implementing TQM in the engineering and construction industry.  Their results showed that TQM resulted in improved customer satisfaction, reduced cycle times, documented cost savings, and more satisfied and productive work forces (Burati et al., 1991).

Despite the above, construction generally has lagged behind other industries in implementing TQM.  The main reason is the perception that TQM is for manufacturing and service industries only (Arditi and Gunaydin, 1997).  The other major factor inhibiting the implementation of TQM in the construction industry has been the notion that TQM is costly and requires a long time period for implementation.

Anon (1993) conducted a survey among 300 architectural, engineering and contracting firms about TQM adoption.  The annual revenues of those firms range between under $20 million to well above $500 million.  The results indicated that most of the top managers of these firms do not understand TQM.  The survey concluded that the majority of employees and sub-contractors neither considered quality nor are empowered to make such improvements (Yiwei and Eng, 1999).  In another study, Shammas-Tomas et al. (1996) found that the quality achieved in construction generally fell below the required standards, despite the fact that all contractors involved had some quality control procedures in operation.  Ahmad and Sein (1997) mentioned that most organizations and companies involved in the construction industry view TQM as an enigmatic proposition.  To some, it is nothing more than a buzzword, while to others, it is difficult to implement.  In a recent survey, Ahmed et al. (2005) found that 32% of the surveyed organizations have implemented TQM while 68% have adopted other QA/QC systems.

Objectives and Scope

One aspect of TQM that has frustrated the construction industry the most is the “measurement of construction processes for continuous improvement” (Ahmed and Kangari, 1995).  The research work reported in this paper is part of a project completed by the authors to develop a measurement model for the identification and measurement of construction processes for customer satisfaction and continuous improvement (Ahmed et al, 2002).  The measurement model was developed with reference to the Florida construction industry.  The above-mentioned project had three main objectives:

1.        Investigation about the adoption and implementation of TQM in the Florida construction industry;

2.        Determination of processes (“what to measure”) that are most suitable and appropriate for measurement during the construction project life-cycle and;

3.        Development of a model (“how to measure”) for the measurement and evaluation of the quality performance of construction processes identified in objective (2) as a tool for continuous improvement.

Since no accurate information regarding the extent of TQM usage in the Florida construction industry was available, the first objective of the research project was set as the investigation of the adoption and implementation of TQM in the Florida construction industry.  While this paper will focus on this objective only, the remaining research work will be reported in future papers.

Methodology

To elicit information regarding the extent of TQM usage in the Florida construction industry, a questionnaire survey was conducted.  Target population was general and prime contractors registered in the state of Florida.  A list of around 1200 general and prime contractors was prepared using the Associated General Contractors (AGC) Directory (2002) and other local directories. From the 1200 contractors, a sample of 300 contractors was randomly selected using 95% confidence level and 5% confidence interval. The questionnaire was sent to those 300 contractors and responses were collected over a period of four months.  The questionnaire which comprised of 36 questions was divided into 6 parts as follows: contractor’s knowledge about TQM, their perception of quality, data acquisition methods used by them, quality control in their organizations, training in TQM provided to their employees, and the obstacles faced by them in implementing TQM in their businesses.  The complete questionnaire is available in Appendix A.

It is important to note that although the cut-off time for receiving the questionnaire responses was four months, many responses were received after six to eight months.  Those responses were not included in the original project report due to project completion deadlines but they are reported in this paper.

Of the 300 questionnaires sent, 38 valid responses were received; representing a total response rate of approximately 13%.  This response rate is typical of a construction industry questionnaire survey and can be used to draw any meaningful conclusions (Akintoye and Macleod, 1997).  Most firms which responded to the questionnaire were medium-to-large size organizations (based on their annual turnover and number of employees). The questionnaires were completed by their top management who were involved in the quality management programs.  Almost all of them (more than 90%) had over 10 years of construction experience.  On the basis of their position, education, work experience and professional background, it can be inferred that the respondents had adequate knowledge of the quality management activities in their organizations.

Analysis and Discussion

The analysis and discussion about the questionnaire survey is organized in six key areas as follows:

1.        Contractor’s knowledge about TQM

2.        Contractor’s perception of quality

3.        Quality-related data acquisition methods

4.        Quality control in the contracting organizations

5.        Training programs in TQM designed for employees

6.        Barriers in the implementation of TQM

In line with the format of the questionnaire, the results are reported in six sections.  Due to the small sample size, the respondents’ responses are indicated in numbers.  The percentage values are reported only when they represent more meaningful results.

Contractor’s Knowledge about TQM

In this section, five questions were asked to evaluate the contractors’ knowledge about TQM.  The results are as follows.

1.       In your view, which of these words best define quality? (not limited to one answer)

The results indicate that the majority of the contractors

defined quality as a mean to satisfy external and internal customers and to provide value for money.  It could be perceived that customer satisfaction must become the focus of corporate thinking in improving quality.

2.       Do you think that TQM will (or does) work in your organization?

Twenty respondents (53%) felt that TQM will work very well in their organizations.  Thirteen respondents (34%) felt that it will work only to some extent.  Three respondents (8%) said that it will not work while two respondents (5%) were unsure about their final opinion.

3.       Would a TQM program be beneficial to your organization?

From the remaining 35 respondents, twenty (57%) said that the TQM program would be beneficial; 14 respondents (40%) were undecided while only one respondent indicated that it is not going to be beneficial.

4.       TQM would be used to improve: (not limited to one answer)

By looking at the above-mentioned results, one can easily interpret that most of the contractors felt TQM can be used to improve cost estimating followed by warranty claims and reduce change orders.  A relatively small number of respondents felt that TQM can also be used to improve project design and to reduce lawsuits.

5.       Are you aware of any industry programs to implement TQM or the ISO 9000 standards?

An equal number of respondents (i.e. 14) were either aware or unaware of any implementation programs about TQM.  Ten respondents did not answer this question.

The results of this section indicate that the majority of contractors perceive quality as a mean to improve customer satisfaction and to provide value for money.  These contractors felt that TQM will work very well in their organizations.  However they are not aware of any TQM implementation programs.  Most of them think that TQM is a philosophy used to improve cost estimating and warranty claims.  Such opinions show their lack of knowledge about TQM and their unawareness about potential benefits which may by achieved by implementing TQM.

Contractor’s Perception of Quality

In this section, six questions were asked to evaluate the contractor’s (or organization) perception of quality.

6.       What is your organization’s perception of quality?

The majority of the respondents perceived quality either as a mean to eliminate defects in the products or services (39%) or to gain competitive advantage in the market (26%).  Very few respondents (16%) considered quality as a tool to increase profit.

7.       How would you rate the importance of product/service quality?

Thirty respondents (79%) indicated that product/service quality is “very important” while the remaining 8 (21%) respondents considered it as “important”.  They felt that if their product/service quality is good; it will satisfy the clients and lead to higher profits.

8.       How would you rate the significance of customer satisfaction?

As expected, the majority of the respondents (33 or 87%) answered that the customer satisfaction is very important for their business. Four (13%) respondents selected the second option, i.e. “Important”

9.       Please rate the potential for improvement within the following processes:

The table above delaminates that the top three processes which have a large potential for improvement are “Close-out of projects”, “Coordination with project members” and “On-Site safety management”.  These processes can be improved through proper quality management programs as mentioned in the following sections.

10.    Please rank in the order of importance (Cost, Scope, Time, Quality, Safety):

One of the most interesting discoveries was when the companies were asked to rank in the order of importance the following parameters: Cost, Scope, Time (Schedule), Quality and Safety within the construction field, they ranked quality at the last position.  The following is the order of importance according to the survey:

                       1. Scope        2. Cost         3. Time        4. Safety       5. Quality

This fact indicates that the contractors do not consider quality important as compared to project scope compliance, project cost and schedule.

11.    Do you set your quality goals to the level of:

When the contactors were asked to identify one of the areas to which they set their quality goals, 44% of them answered that they set their quality level internally while 36% responded that they set their quality goals to the level of a leading company in their field. This indicates that contractors in both categories use some set standards to achieve quality goals.

The analysis of this section indicates that the majority of the contractors perceive quality as a mean to eliminate defects or to gain competitive advantage in the market.  They feel that that the product/service quality is very important for them in gaining customers’ satisfaction because it ultimately translates into higher profits for them.  The contractors felt that the customers’ satisfaction should be their main goal.  Interestingly however, when they were asked to rank in the order of importance the following attributes: Quality, Safety, Time, Cost and Scope; they ranked Scope and Cost as the important considerations followed by Timeliness, Safety and Quality.

Quality-related Data Acquisition Methods

In this section, eight questions were asked to find out how the contracting organizations gather data or information about quality.

12.    Do you collect data to measure the performance of operations?

Twenty one (55%) respondents said ‘Yes’, eleven (29%) said ‘No’ while six (16%) were not sure or did not answer.  The result show that the majority of the contractors do collect data to measure the performance of operations.

13.    How does your Organization solve quality-related problems?

When the contractors were asked how their organization solves quality-related problems, 42% of them said that they assign it to an individual whereas the other 42% said that they either setup a multidisciplinary team or a permanent team is already formed in their organization to solve such problems.

14.    Do you have a system for gathering customer suggestions?

The results indicated that 56% of the responding companies have a system for gathering customer suggestions whereas 44% do not have.

15.    How do you measure customer satisfaction?

Twenty eight percent (28%) organizations measure customer satisfaction through questionnaire surveys, 20% measure by the number of complaints and 28% measure by various other methods such as telephonic calls, on-site conversations and informal business meetings. Twenty four percent (24%) companies do not measure customer satisfaction.

16.    Do you have a system for gathering employees’ suggestions?

Fifty six percent (56%) of the firms have such a system whereas 44% do not have.

17.    Are employees empowered to make significant changes to operations?

When respondents were asked whether their employees are empowered to make significant changes to operations, 72% of them said that only certain key personnel are empowered in their organization to make any significant changes whereas 20% of them said that all employees are fully empowered. Eight percent (8%) of respondents did not answer this question.

18.    Are suppliers/subcontractors rated?

Sixty two percent (62%) of respondents indicated that they rate most of their suppliers and subcontractors whereas 24% of them mentioned that they rate all of their suppliers and contractors.  Fourteen percent (14%) respondents did not answer this question.

19.    If defects in services are identified then are subcontractors required to pay for or correct them?

Eighty percent (80%) responses were ‘Yes’ while 8% were ‘No’.  Twelve percent (12%) of respondents were undecided.

The results of this section highlight that the majority of the contracting companies do collect data to measure the performance of operations. The quality-related problems are mostly handled either by assigning them to an individual or to multidisciplinary teams.  Fifty six (56%) of the companies have a system for gathering customer suggestions but just 28% of them use formal methods such as questionnaire surveys to measure customers’ satisfaction.  Most of the companies (62%) rate their suppliers and subcontractor against their services and when defects in services are identified, they are required to pay for or correct them.

Quality Control in the Contracting Organizations

In this section, respondents were asked 12 questions to explore facts about quality control in their organizations.

20.    Has your organization developed a clear definition of quality?

In this question contractors were asked whether they developed a clear definition of quality in their organizations, the response indicated that only 52% organizations have developed a clear definition whereas 48% did not.

21.    Percentage of employees who are aware of the importance of quality?

Although only 52% of the organizations have developed a clear definition of quality, yet on average 75% of the employees in all organizations were aware of the importance of quality within the construction field.

22.    Does your organization have a Quality Improvement Program (QIP)?

The results showed that 55% organizations have a quality improvement program as part of a corporate policy, 32% have recently implemented while 13% do not have any such program.

23.    What type of Quality Improvement Program (QIP) do you have?

The results indicated that 10 organizations (26%) are using Quality Control/Quality Assurance (QA/QC) procedures for quality improvement, 6 (16%) organizations are using ISO 9000 standards while only 4 (11%) are using Total Quality Management (TQM). Thirteen organizations (34%) mentioned that they use their own customized methods or informal quality improvement programs.

24.    Which of the following factors provided the motivation to start TQM?

Only four organizations which have implemented TQM answered this question.

The results mentioned that satisfying demanding customers and company’s chief executive’s commitment towards quality were the major reasons to start TQM program. Environmental issues and pressure from the competitors were found to be the least motivating reasons.

25.    Your organization’s Quality Improvement Program (QIP) can be described as:

Out of the Thirty three organizations that have a formal or informal quality improvement plan, twenty (61%) organizations indicated that their quality improvement plan is long-term while 12 (39%) organizations mentioned that they have implemented a short-term solution.

26.    Does your Quality Improvement Program (QIP) have the full support of top management?

Sixty four percent (64%) of the organizations that have implemented a QIP indicated that the program has full support of the top management while twenty percent (20%) of them answered ‘No’. Sixteen percent (16%) of the respondents were undecided.

27.    The major objectives of your quality programs are:

Eleven (33%) respondents mentioned that their company’s main objective behind the quality programs was to involve employees in the quality building efforts. Eight (24%) respondents thought that increase in productivity was the main objective while seven (21%) respondents considered cost reduction as the major goal.

28.    Steps taken in your quality improvement plan include (not limited to one answer):

The respondents’ opinions indicated that creating an internal awareness program and identifying quality problems were the two major steps taken in their quality improvement plans. These were followed by organizing multi-disciplinary teams and by defining benchmarks for improvement.

29.    Quality is first incorporated in the project at:

The results indicated that 12 (36%) organizations incorporated quality at the conceptual stage while 10 (30%) organizations induced it at the R&D stage.  Nine (27%) organizations employed it in operations and only one firm indicated that they use the quality control during the final inspection stage.

30.    After the implementation of your quality improvement program, service/product quality has:

Forty three percent (43%) of the firms indicated that their service/product quality has ‘drastically improved’ while 30% mentioned that the quality has ‘improved’ after the implementation of the quality improvement program. Twenty one percent (21%) of the organizations thought that it ‘remained the same’ while 6% were undecided.

31.    After the implementation of your quality improvement program, relationship with your customers and suppliers has improved?

Thirty six percent (36%) of the organizations mentioned that the relations were ‘drastically improved’ and 24% indicated they were ‘improved’. For 24% of the organizations, the relations ‘remained the same’ while the 16% of the organizations were undecided.

In summary, it is observed that although only about 50% of the contractors surveyed had a clear definition of quality in their organizations, yet on average 75% of the employees in all organizations were aware of the importance of quality.  Besides organizations with formal quality improvement programs such as QA/QC, ISO 9000 and TQM, a number of firms indicated that they have an informal Quality Improvement Program (QIP) in place.  Demanding customers, CEO commitment and competitive pressures were identified as the key reasons for implementing such programs.  Main objectives of the QIP were found to be the employees’ involvement followed by increasing productivity and cost reduction.  Seventy three (73%) contractors mentioned that the quality of their products and services were improved after implementing such a program while 60% felt that their relations with customers and suppliers were also improved.

TQM related Training Programs for Employees

In this section, respondents were asked 4 questions to explore about TQM related training programs designed for the employees.

32.    Is formal training in TQM or other quality improvement philosophies given to employees?

The results indicated that twenty one percent (21%) of the companies have developed formal training programs while 58% of the companies provide ‘some’ training to their employees.  Twenty one (21%) companies indicated that they do not have any training programs.

33.    Percentage of managerial/supervisory staff who have undergone quality improvement training:

The companies that have a formal or informal training program indicated that on average 44% of their managerial/supervisory staff have undergone quality improvement training.

34.    Percentage of non-managerial/technical staff who have undergone quality improvement training:

The companies that have a formal or informal training program indicated that on average 29% of their non-managerial/technical staff have undergone quality improvement training.

35.    Training currently emphasizes (not limited to one answer):

The respondents had a unanimous opinion that the training programs mostly emphasize on customer satisfaction as a primary goal followed by the teamwork and communication.

To summarize, in majority of the firms, their employees are not given a formal training about TQM or other quality improvement programs.  On average, 44% of the managerial/supervisory staff and 29% of the non-managerial and non-technical staff had undergone quality improvement training.  The training programs in these firms mostly emphasize customer satisfaction as a primary goal followed by the teamwork and communication.

Barriers in the Implementation of TQM Program

The obstacles in the implementation of the Total Quality Management (TQM) program as indicated by the respondents are shown below in the order (based on total number of responses received against each option).

1.        Lack of expertise/resources in TQM

2.        Rigid attitude and behavior of executive management towards quality

3.        Lack of employee commitment/understanding

4.        Lack of education and training to drive the improvement process

5.        Schedule and cost treated as the main priorities

6.        Emphasis on short-term objects

7.        Tendency to cure symptom rather than getting to the root cause of a problem.

8.        Too many documents are required (lack of documentation ability)

9.        Current tendering/bidding climate

10.     Lack of top-management commitment/understanding

Conclusions

The survey results indicated that although the general and prime contractors in the state of Florida are aware of the importance of quality, their knowledge about Total Quality Management (TQM) is limited.  Most of them feel that TQM is a philosophy used to improve cost estimating and warranty claims.  These contractors perceive quality as a competitive advantage to remove defects and to increase customer satisfaction.  While no unique trend was found in those organizations who have implemented a quality management program, some organizations prefer TQM while the others are using QA/QC, ISO9000 and miscellaneous informal quality management programs.  Most of the organizations do not provide any formal training to their employees about quality management systems.  So it would be appropriate to arrange some form of formal and/or informal education and training.  Formal education could be graduate studies in quality management systems or TQM.  Informal education and training could take the form of career development programs (like quality awareness program) organized by academic institutions or professional organizations such as the Associated General Contractors of America (AGC).  It should not be expected that this would be an immediate panacea, but it will be a move in the right direction that would bring long-term benefits.

References

Ahmad, I.U., and Sein, M.K. (1997). “Construction Project Teams for TQM: A Factor-Element Impact Model.” Construction Management and Economics, 15, 457-467.

Ahmed, S. M., and Ahmad, R. (1997). “Total Quality Management (TQM) in Construction.” Proceedings of the Buildings Department Symposium on Building Construction in Hong Kong, January 15-16, Hong Kong, Paper 20, 1-30.

Ahmed, S. M., and Kangari, R. (1995). “Analysis of Client-Satisfaction Factors in Construction Industry.” Journal of Management in Engineering, ASCE, 11(2), 36-44.

Ahmed, S. M., Azhar, S. and Castillo, M. (2002). Measurement of Construction Processes for Continuous Improvement. Final Report Submitted to the Building Construction Industry Advisory Council, Department of Education (DoE), State of Florida.

Ahmed, S.M., Aoieong, R.T., Tang, S.L., and Zheng, D.X.M. (2005). “A Comparison of Quality Management Systems in the Construction Industries of Hong Kong and the US.” International Journal of Quality and Reliability Management, 22(2), 149-161.

Akintoye, A.S., and Macleod, M.J. (1997). “Risk Analysis and Management in the Construction.” International Journal of Project Management, 15(1), 31-38.

Anon. (1993). “TQM is Under-utilized, According to a Poll.” Engineering News Record, 230(5), 14.

Arditi D., and Gunaydin H.M. (1997). “Total Quality Management in the Construction Process.” International Journal of Project Management, 15, 235-243.

AGC - Associated General Contractors. (2002). US Contractor’s Directory, AGC, 333 John Carlyle Street, Suite 200, Alexandria, Va-22314.

Burati J.L., Matthews M.F., Kalindi S.N. (1991). “Quality Management in Construction Industry.” Journal of Construction Engineering and Management 117(2), 341-359

Deffenbaugh, R.L. (1993). “Total Quality Management at Construction Jobsites.” Journal of Management in Engineering, 9(4), 382-389.

Shammas-Tomas, M., Seymour, D.E., and Clark, L.A. (1996). “The Effectiveness of Formal Management Systems in Achieving Quality in Reinforced Concrete.” Construction Management and Economics, 14, 353-364.

Yiwei, O., and Eng, G.C. (1999). “A Total Quality Management Approach to Competitive Bidding.” Online at http://www.buildnet.co.za/cdcproc/docs/1st/yiwei_o.pdf, Accessed on January 02, 2006.

Appendix A

Questionnaire Survey

Company Information                                                                                                            

Name of the company: _________________________________________________

Nature of company (general contractor/prime contractor/other): _________________

Size of the company (no. of employees): _________ (admin)   ________ (technical)

Annual turnover: ______________________________________________________

Age of the company: ___________________________________________________

Position of respondent in the company: ____________________________________

Your Knowledge of TQM

1.        In your view, which of these words best define quality? (not limited to one answer)

¨   High cost (expensive)

¨   Satisfying internal customer (within the organization)

¨   Satisfying external customer (outside the organization)

¨   Appearance

¨   Increased profit

¨   Value for money

¨   Teamwork

¨   Partnership between organization and supplier

2.        Do you think that TQM will (or does) work in your organization?

¨   Very well

¨   To some extent

¨   Won’t work (skip questions 3 and 4)

¨   Can’t say (undecided)

3.        Would a TQM program be beneficial to your organization?

¨   Yes

¨   No (skip question 4)

¨   Can’t say (undecided)

4.        TQM would be used to improve (not limited to one answer):

¨   Project design

¨   Cost estimating

¨   Warranty claims

¨   Reduce change order

¨   Reduce claims

¨   Increase market share

¨   Reduce lawsuits

5.        Are you aware of any industry programs to implement TQM or of the ISO 9000 standards? _________

Your Perception of Quality

6.        What is your organization’s perception of quality?

¨   Elimination of defects

¨   A tool to increase profits

¨   A competitive advantage

¨   Others (please specify) ______________________________________

7.        How would you rate the importance of product/service quality:

¨   Very important

¨   Important

¨   Somewhat important

¨   Not important

¨   Can’t say

8.        How would you rate customer satisfaction:

¨         Very important

¨         Important

¨         Somewhat important

¨         Not important

¨         Can’t say

9.        Please rate the potential for improvement within the following processes:

(Scale 1 to 5,  1:Low 5:High)                                                             High            Low        No             

l         On-site supervision                                                                      5 – 4 – 3 – 2 – 1         0

l         Redesign                                                                                        5 – 4 – 3 – 2 – 1         0

l         Testing procedures at job sites                                                     5 – 4 – 3 – 2 – 1         0

l         Certification of material                                                                5 – 4 – 3 – 2 – 1         0

l         Administration of change orders                                                   5 – 4 – 3 – 2 – 1         0

l         Close-out of projects                                                                    5 – 4 – 3 – 2 – 1         0

l         On-site safety management                                                          5 – 4 – 3 – 2 – 1         0

l         Personnel management of employees                                           5 – 4 – 3 – 2 – 1         0

l         Coordination with other members of a project                             5 – 4 – 3 – 2 – 1         0

10.     Please rank in the order of importance:

l          Cost                                  :____

l          Scope                                :____

l          Time (Schedule)               :____

l          Quality                             :____

l          Safety                               :____

11.     Do you set your quality goals to the level of:

¨       The leading company in your field

¨       The competition in general

¨       To a level set internally

¨       Other (please specify): ____________________

Data Acquisition Method

12.     Do you collect data to measure the performance of operations?

¨         Yes

¨         No

¨         Can’t say

13.     How does your organization solve quality-related problems?

¨         Assign individual to solve

¨         Set up a multi-disciplinary team for each problem

¨         A permanent team is available

¨         Other (please specify)

14.     Do you have a system for gathering customer suggestion?

¨         Yes

¨         No

¨         Can’t say

15.     How do you measure customer satisfaction?

¨         Questionnaire surveys

¨         By the number of complaints

¨         Other methods (please specify)

¨         Not measured

16.     Do you have a system for gathering employees’ suggestions?

¨         Yes

¨         No

¨         Can’t say (undecided)

17.     Are employees empowered to make significant changes to operations?

¨         Fully empowered

¨         Only key personnel are empowered

¨         Empowerment is not needed

¨         Can’t say (undecided)

18.     Are suppliers/subcontractors rated?

¨         All

¨         Most

¨         None

¨         Can’t say (undecided)

19.     If defects in services are identified then are subcontractors required to pay for or correct them?

¨         Yes

¨         No

¨         Can’t say (undecided)

Quality Control in your Organization

20.     Has your organization developed a clear definition of quality?

¨         Yes

¨         No

¨         Can’t say

21.     Percentage of employees who are aware of the importance of quality?   ______%

22.     Does your organization have a quality improvement program?

¨         A quality improvement program has been implemented recently

¨         A quality improvement plan has been a part of corporate policy for some time now

¨         Such a plan is under consideration

¨         No (Please skip the remaining questions and move to the next section)

23.     What type of quality improvement program do you have?

¨         Total Quality Management

¨         ISO 9000 (Please skip the next question and go to question no. 25)

¨         Quality Control / Quality Assurance (Please skip the next question and go to question no. 25)

¨         Others (please specify) (Please skip the next question and go to question no. 25)

24.     Which of the following factors provided the motivation to start TQM (not limited to one answer)

¨         Pressure from competitors

¨         Demanding customers

¨         Your company’s Chief Executive

¨         Environmental issues/considerations

¨         Need to reduce costs and improve performance

25.     Your organization’s quality improvement program can be described as:

¨         Periodic short-range solution or motivational plan

¨         A formal long-term program with widespread employees’ awareness

¨         Others (please specify):____________________________________

26.     Does your quality improvement plan have the full support of top management?

¨         Yes

¨         No

¨         Can’t say (undecided)

27.     The major objectives of your quality programs are:

¨         Increase productivity

¨         Cost reduction

¨         Involvement of employees in the quality building effort

¨         Compliance with statutory, environment and safety requirement

¨         Others (please specify): ___________________________

28.     Steps taken in your quality improvement plan include: (not limited to one answer)

¨         Organized a multi-disciplinary team

¨         Data has been collected to measure the process

¨         A dollar value has been assigned to the cost of quality

         (cost of quality = cost of conformance + cost of non-conformance)

¨         An internal awareness program is underway

¨         An educational program has been implemented

¨         Quality problems have been identified

¨         Have defined benchmarks for improvement

29.     Quality is first incorporated in the project at:

¨         Concept development

¨         Research and development

¨         Operations

¨         Final inspection

30.     After the implementation of your quality improvement program, service/product quality has:

¨         Drastically improved

¨         Improved

¨         Remained the same

¨         Decreased

¨         Can’t say (undecided)

¨         Not applicable

31.     After the implementation of your quality improvement program, relationship with your customers and suppliers has:

¨         Drastically improved

¨         Improved

¨         Remained the same

¨         Decreased

¨         Can’t say (undecided)

¨         Not applicable

Training

32.     Is formal training in TQM or other quality improvement philosophies given to employees?

¨         No training is given (please skip the rest of this section)

¨         Some training is available

¨         A formal training program is in effect

¨         Other (please specify): _________________

33.     Percentage of managerial/supervisory staff who have undergone quality improvement training”      ______%

34.     Percentage of non-managerial/technical staff who have undergone quality improvement training”   ______%

35.     Training currently emphasizes (not limited to one answer)

¨         Process control

¨         Statistical analysis

¨         Data gathering & analysis

¨         Team work

¨         Communication

¨         Customer satisfaction

Others

36.     Obstacles in the implementation of TQM program (not limited to one answer)

¨         Rigid attitude of executive management towards quality

¨         Schedule and cost treated as the main priorities

¨         Emphasis on short-term objects

¨         Lack of education and training to drive the improvement process

¨         Too much documents are required (Lack of documentation ability)

¨         Lack of top-management commitment/understanding

¨         Lack of employees commitment/understanding

¨         Tendency to cure symptom rather than get to the root cause of a problem

¨         Lack of expertise/resources in TQM

¨         Current tendering/bidding climate