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Construction Technology and Management Thesis

2020-03-17

TOTAL QUALITY MANAGEMENT IN

THE ETHIOPIAN CONSTRUCTION
INDUSTRY FOR CONTRACTORS: A
Case Study on Bahir Dar City Public
Building Projects

ESHETIE, HABTAMU

http://hdl.handle.net/123456789/10495
Downloaded from DSpace Repository, DSpace Institution's institutional repository
 BAHIR DAR UNIVERSITY

BAHIR DAR INSTITUTE OF TECHNOLOGY

SCHOOL OF RESEARCH AND POST GRADUATE STUDIES

FACULITY OF CIVIL AND WATER RESOURCE ENIGNEERING

TOTAL QUALITY MANAGEMENT IN THE ETHIOPIAN

CONSTRUCTION INDUSTRY FOR CONTRACTORS:
A Case Study on Bahir Dar City Public Building Projects

BY
HABTAMU ESHETIE ENDALEW

August 14, 2018

Bahir Dar, Ethiopia
 TOTAL QUALITY MANAGEMENT IN THE ETHIOPIAN CONSTRUCTION
INDUSTRY FOR CONTRACTORS: A Case Study on Bahir Dar City Public
Building Projects

HABTAMU ESHETIE ENDALEW

A Thesis submitted to the school of Research and Graduate Studies of Bahir Dar Institute
of Technology, BahirDar University in partial fulfillment of the requirements for the
degree of Master of Science in Construction Technology and Management in Civil and
Water Resource Engineering

Advisor: AsregedewKassa, Ph.D., P.E.

Co-Advisor: Samson Kebede, MSc.

Bahir Dar, Ethiopia

August 14, 2018

 DECLARATION

I, HabtamuEshetie, the researcher declare that this research is my original work. In

compliance with internationally accepted practices, I have dually acknowledged and
refereed all materials used in this work. I understand that non-adherence to the principles
of academic honesty and integrity, misrepresentation/ fabrication of any idea/ data/ fact/
source will constitute sufficient ground for disciplinary action by the university and can
also evoke penal action from the source which have not been properly cited or
acknowledged.

Name of the student:

________________________________Signature__________________

Date of submission: __________________________

Place: Bahir Dar

This thesis has been submitted for examination with my approval as a university advisor.

Advisor Name: ________________________________

Advisor’s Signature: ___________________________

i
 © 2018
HABTAMU ESHETIE ENDALEW
ALL RIGHTS RESERVED

ii
iii
 DEDICATION

I would like to dedicate this work to my beloved Parents, Sisters and Brothers for their
endless support.

iv
 ACKNOWLEDGEMENT
My first and foremost thanks go to Almighty God, who sustained me and giving me the
ability to begin and complete this research project.

I would like to convey my truthful gratitude to my advisor Dr. AsregedewKassaand co-

advisor AtoSamsonKebede for their invaluable guidance and motivation throughout this
research.

I would like to express my great honor and thanks to construction professionals working
for differentpublic and private organizations especially AtoAbebeYihunie and
AtoMelakuBimrew for their contribution by participating in a panel discussion,
responding to questionnaires and fortheir unlimited support throughout this research.

Last but not least,I express my appreciation to all my families, friends, classmates and
colleagues for their technical and moral support, and encouragement any time the going
was tough.

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 ABSTRACT
The construction industry in Ethiopia isconstantly criticized for its performanceand
productivity. Theindustry’s performance with respect to schedule, cost, health and safety
dimensions are huge concern: Among these dimensions,the industry has been constantly
struggling with quality performance. The quality of a construction should fulfillowner’s
expectations, satisfy project participants/stakeholders needs and become a critical
measure of a project success. Today, other industry sectors are focused on management
theories and philosophies in order to achieve high quality and ensure customer
satisfaction. Thus, the objective of this study is to devise a methodology in implementing
a conceptual Total Quality Management (TQM) framework in the Ethiopian construction
industry.

A desk study, panel discussion and questionnaire survey are carried out as a primary
source of data to achieve the objective of this research. Primary data are generated from
selected contractor organizations (23 Grade-I contractors who have active public building
projects in Bahir Dar City) through the panel discussion and questionnaire surveys. These
methods are conducted to determine current quality management practice and identify
factors required for successful implementation of TQM.The data was analyzed using both
descriptive and inferential statistical analysis. The reliability and validity of factors in the
instrument were checked by Pearson’s correlation coefficient, Cronbach’s Alpha
coefficient and Chi-square. Based on the study findings, the construction industry experts
are not well-aware of TQM philosophy. It is identified that the quality management
improvement program is limited on quality control which is a corrective action rather
than a proactive measure. Prior studies and survey results were then used as benchmark
to develop a conceptual TQM framework for using the top nine Critical Success Factors
based on their important indices. Changing behavior and attitude, lack of top
management commitment/understanding, lack of education and training to derive the
improvement process and lack of employees’ commitment/understanding are the top four
ranked factors which may challenge the implementation of TQM framework as a gap
analysis. The study recommends that higher level of educational institutes should give
TQM as a course work for civil engineering and related programs.

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Key words: Construction industry, Quality, Quality Management, TQM, TQM
Framework

TABLE OF CONTENTS

DECLARATION ................................................................................................................. i
DEDICATION ................................................................................................................... iv
ACKNOWLEDGEMENT .................................................................................................. v
ABSTRACT ....................................................................................................................... vi
TABLE OF CONTENTS .................................................................................................. vii
LIST OF ABBREVATIONS ............................................................................................. xi
LIST OF FIGURES .......................................................................................................... xii
LIST OF TABLES ........................................................................................................... xiii
1. INTRODUCTION .......................................................................................................... 1
1.1 Background ............................................................................................................... 1
1.2 Problem Statement .................................................................................................... 2
1.3 Research Objective .................................................................................................... 3
1.4 Significance of Study ................................................................................................ 3
1.5 Scope and Limitation ................................................................................................ 3
1.6 Methodology ............................................................Error! Bookmark not defined.
2. LITERATURE REVIEW ............................................................................................... 5
2.1. Introduction .............................................................................................................. 5
2.1 Evolution of Quality Management ............................................................................ 5
2.2 Overview of Quality Management ............................................................................ 6
2.2.1 Understanding of Quality ................................................................................... 6
2.2.2 The Concepts of Quality Management ............................................................... 7
2.2.3 Project Quality Performance Measurement ........................................................ 7
2.2.4 Quality Assurance............................................................................................... 7
2.2.5 Quality Control ................................................................................................... 8
2.3. Total Quality Management....................................................................................... 9
2.3.1 The Historical Development of TQM ................................................................ 9
2.3.2 Definitions of TQM .......................................................................................... 11
2.3.2 Understanding and Awareness of TQM ........................................................... 12
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 2.4 TQM in the Construction Industry .......................................................................... 12
2.4.1 Previous Study on TQM in the Construction Industry ..................................... 13
2.5 Critical Success Factors in TQM ............................................................................ 14
2.5.1 Selection of CSFs for the Survey ..................................................................... 17
2.5.2 Top Management Commitment and Leadership .............................................. 19
2.5.2 Quality Culture ................................................................................................. 20
2.5.3 Education and Training .................................................................................... 21
2.5.4 Process Management ........................................................................................ 23
2.5.5 Supplier Quality Management .......................................................................... 24
2.5.6 Empowerment and Involvement ....................................................................... 24
2.5.7 Information and Analysis ................................................................................. 25
2.5.8 Customer Satisfaction ....................................................................................... 26
2.5.9 Policy and Strategy ........................................................................................... 27
2.5.10 Human Resource Management ....................................................................... 28
2.6 Implementation of TQM ......................................................................................... 29
2.7 Barriers for the Implementation of TQM ................................................................ 31
2.8 Tools and Techniques of TQM ............................................................................... 33
2.9 Framework for TQM ............................................................................................... 33
2.9.1 The Need for TQM Framework........................................................................ 34
3. RESEARCH DESIGN AND METHODOLOGY ........................................................ 36
3.1 Introduction ............................................................................................................. 36
3.2 Research Design ...................................................................................................... 36
3.2.1 Research Strategy ............................................................................................. 38
3.3 Source of Data and Data Collection Approach ....................................................... 38
3.3.1 Desk Study........................................................................................................ 38
3.3.2 Panel Discussion ............................................................................................... 39
3.3.3 Questionnaire .................................................................................................... 39
3.4. Research Population and Sampling Technique ...................................................... 40
3.4.1. Population ........................................................................................................ 40
3.4.2. Sampling .......................................................................................................... 41
3.5. Data Analysis ......................................................................................................... 42
3.5.1. Relative Important Index ................................................................................. 42

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4. RESULT, ANALYSIS AND DISCUSSION ............................................................... 44
4.1. Introduction ............................................................................................................ 44
4.2. Results from Panel Discussion (Qualitative Methods) .......................................... 44
4.2.1. Quality Understanding ..................................................................................... 45
4.2.2. Quality Related Problems in their Experience ................................................ 46
4.2.3. Current Quality Management Practice of Ethiopian Construction Industry ... 47
4.2.4. Familiarity with TQM concept ........................................................................ 48
4.2.5. Evidence of Customer Satisfaction.................................................................. 49
4.2.6. Barriers to Continuous Improvement .............................................................. 51
4.2.7. Importance of TQM Implementation .............................................................. 52
4.2.8. CSFs of TQM .................................................................................................. 52
4.2.9 Summary........................................................................................................... 55
4.3. Results from Questionnaire (Quantitative Methods) ............................................. 56
4.3.1 Survey Response Rate and Respondent Firms Profiles .................................... 56
4.3.2 Firm’s Quality Management Practices ............................................................. 58
4.3.3. Critical success factors (CSF) for TQM in Ethiopian Construction Industry ..... 70
4.3.3.1 Reliability ...................................................................................................... 71
4.3.3.2. Results from Chi-Square Statistical Test ...................................................... 72
4.3.3.3 Significance of Critical Success Factors in Ethiopian Construction Industry86
4.3.4 Challenges to Devise TQM in Ethiopian Construction Industry ......................... 88
4.4 Summary ................................................................................................................. 89
5. CONCEPTUAL FRAMEWORK FOR TQM .............................................................. 90
5.1. Introduction ............................................................................................................ 90
5.2. The Requirement of Framework Design ................................................................ 90
5.3. Conceptual Framework for TQM Implementation in Ethiopian Construction Firms
....................................................................................................................................... 91
5.4 Critical Success Factors of conceptual Proposed Framework ................................ 93
5.4.1 Top Management Commitment/Leadership ..................................................... 94
5.4.2 Quality Culture ................................................................................................. 94
5.4.3 Education and Training .................................................................................... 94
5.4.4 Policy and Strategy ........................................................................................... 95
5.4.5 Haman Resource Management ......................................................................... 96
5.4.6 Process Management ........................................................................................ 96

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 5.4.7 Information and Analysis ................................................................................. 97
5.4.8 Supplier Quality Management .......................................................................... 97
5.4.9 Customer Satisfaction ....................................................................................... 97
5.5 Summary ................................................................................................................. 98
6. CONCLUSION AND RECOMMENDATION ............................................................ 99
6.1 Conclusion............................................................................................................... 99
6.2 Recommendation ................................................................................................... 101
6.2.1 Future Works .................................................................................................. 102
REFERENCES ............................................................................................................... 102
APPENDIX ..................................................................................................................... 108
Appendix 1: Discussion points for the Panel Discussion ............................................ 108
Appendix 2: Questionnaire.......................................................................................... 109
Appendix 3: Sample SPSS Outputs ............................................................................ 117
Appendix 4: Chi Square Critical Values Table ........................................................... 118

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 LIST OF ABBREVATIONS

ANSI – American National Standard Institute.

BSC – Balanced Scorecard
CSF – Critical Success Factor
EQA – Ethiopian Quality Award
GDP - Gross Domestic Product
GTP – Growth Transformation Plan
INS – Inspection
ISO – International Organization for Standardization
LFS– Labour Force Survey
MBNQA – Malcolm Baldrige National Quality Award
QA – Quality Assurance
QC– Quality Control
QM – Quality Management
QMS–Quality Management System
TQM – Total Quality Management

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 LIST OF FIGURES
Figure 2. 1 Deming PDCA Cycle ....................................................................................... 9
Figure 2. 2 TQM evolution process (Zakuan & Muniandy, 2012) ................................... 10
Figure 2. 3 Conceptual framework for TQM practice, Quality culture and
Competitiveness (Source (Alotaibi and Islam, 2013)). ................................................. 21
Figure 2. 4 Basic Components of TQM (Rumane, 2011) ................................................. 31

Figure 3. 1 Flow chart of the brief Research Methodology 37

Figure 4. 1 Quality Understanding 45

Figure 4. 2 Quality Related Problems 46
Figure 4. 3 Current Quality Management Practice of the Ethiopian Construction Industry
47
Figure 4. 4 Familiarity of TQM concept 48
Figure 4. 5 Evidence of Customer Satisfaction 49
Figure 4. 6 Barriers to Continuous Improvement 51
Figure 4. 7 Experience of the Company 57
Figure 4. 8 Size of Firms/Organizations 57
Figure 4. 9 Understanding of Surveyed Firms in Quality 59
Figure 4. 10 How Organization Measure the Performance 61
Figure 4. 11 Response on Major Objective of Quality Program in the Organization 67
Figure 4. 12 Challenges to Devise TQM in the Ethiopian Construction Industry 88

Figure 5. 1 Conceptual Proposed TQM Framework 94

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 LIST OF TABLES

Table 2. 1 Summary of CSFs of TQM from different Frameworks ................................. 16

Table 2. 2 Frequency of occurrence of CSFs in TQM frameworks................................. 17
Table 2. 3 Cultural changes required to meet TQM Requirements .................................. 29

Table 3. 1 Sample size ...................................................................................................... 41

Table 4. 1 Distribution and response rate of questionnaires ............................................. 56

Table 4. 2 Position of the respondent in the organization................................................. 58
Table 4. 3 Educational Rank of the respondents............................................................... 58
Table 4. 4 Response data collection to measure performance .......................................... 60
Table 4. 5 Response on the rate of Customer Satisfaction ............................................... 61
Table 4. 6 Response on gathering on customer suggestion .............................................. 62
Table 4. 7 Response on the Customer Suggestion ............................................................ 62
Table 4. 8 Priority given to some factors in the organization ........................................... 63
Table 4. 9 Performance indicators for quality in the organization ................................... 64
Table 4. 10 Response on quality improvement programs................................................. 65
Table 4. 11 Response on type of quality improvement programs .................................... 66
Table 4. 12 Response on top management support in quality improvement plan ............ 66
Table 4. 13 Response on description of quality improvement program ........................... 67
Table 4. 14 Response on internal quality audit procedure ................................................ 68
Table 4. 15 Response on check for design conformance to standards and regulations .... 69
Table 4. 16 Response on carry out project review after closeout of every project ........... 69
Table 4. 17 . Response on inspect and control quality of subcontractor’s work to ensure
compliance with quality requirement................................................................................ 69
Table 4. 18 Response on quality department or employees specializing in quality
management ...................................................................................................................... 70

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Table 4. 19 Stability of Single Item CSFs ........................................................................ 71
Table 4. 20 Internal Consistency of Multi-Item CSFs ..................................................... 72
Table 4. 21 Result of Statistical Test for Single Item CSFs ............................................. 73
Table 4. 22 Result of Statistical Test for Top ManagementCommitment andLeadership ...... 74
Table 4. 23 Result of Statistical Test for Quality Culture................................................. 76
Table 4. 24 Result of Statistical Test for Policy and Strategy .......................................... 77
Table 4. 25 Result of Statistical Test for Process Management ....................................... 79
Table 4. 26 Result of Statistical Test for Supplier Quality Management ......................... 81
Table 4. 27 Result of Statistical Test for Human Resource Management ........................ 82
Table 4. 28 Result of Statistical Test for Information and Analysis ................................. 83
Table 4. 29 Result of Statistical Test for Customer Satisfaction ...................................... 85
Table 4. 30 Ranking of Critical Success Factors .............................................................. 86

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 1. INTRODUCTION
1.1 Background

The construction industry in Ethiopia is one of the booming industry sectors that is
mobilizing huge investment andcreating employment opportunities; thereby contributing
to the nation’s development. Today, the growth domestic product (GDP) contribution of
the industry has reached 5.6% which is close to the sub-Saharan average of 6% (Ayalew,
Dakhli, & Zoubier, 2016). In Ethiopia’s Government Second Growth Transformation
Plan (GTP-II), the constructionindustryis expected to contribute 20% of the total GDP by
2020. The top management and senior officials of the sector is eyeing transforming the
sector as a way of bypassing the challenges the industry faces and improve its
performance and competitiveness.

However, current practice of the Ethiopian construction industry is experienced by poor

workmanship and lack of quality management. From a construction industry’s
perspective, quality management means fulfilling the quality of construction works at the
required standard and specification to attain customer satisfaction that would bring long-
term competitiveness and business survival (Agbenyega, 2014). Due to the growing
competition and increasing customer expectation, the focus of management among
various industry sectors have moved away from simply managing processes for achieving
quality to continuous improvement of processes to ensure that customer expectation is
always met. As a result, industries focus on customer-oriented, quality-centered
management philosophy for continuous improvement(Elghamrawy & Shibayama, 2008).

According to theBritish Standard (4778:1991), Total Quality Management (TQM) is a

management philosophy embracing all activities through which the needs and
expectations of the customer, community, and the objectives of an organization are met
in the most efficient and cost-effective manner by maximizing the potential of all
employees in a continuous drive for improvement. According to Saltor (1993), TQM is
designed to establish a management system and corporate culture that will assure higher
customer satisfaction than their competitors. Pheng and Teo (2004) argue that TQM is
not a destination, but rather a journey and a way of thinking about goals, organizations,

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processes, and peoples to ensure that the right things are done right the first time. In other
words, it is an approach to improve the competitiveness, effectiveness and flexibility of a
whole organization.

In Ethiopia, most of construction firms do not practice TQM in their management

approaches. Therefore, determining the local construction industries viewpoint on quality
management is essential to improve the quality of construction projects. The main
objective of this study is to devise a methodology in implementing this management
philosophy or design a conceptual TQM framework in the Ethiopian construction
industry. Typically, TQM consists of both quality assurance (QA) and quality control
(QC). In designing a TQM framework, one should devise the system to be developed, the
activities to be carried out and the ultimate vision of the new style of managing quality in
an organization. Once the framework is designed, assessment tools and performance
measures are integrated within the system(Yusof & Aspinwall, 2000).

1.2 Problem Statement

Recently, it has become a common occurrence to see buildings collapse during and after
construction in different parts of Ethiopia. Current practice of building design and
construction typically do not meet the required standards, specifications especially when
it comes to quality. One can easily observe how the industry has been struggling with
quality and quality related management issues for quite some time. Because of the poor-
quality workmanship and quality management problems, construction projects are facing
many defects and faulty tasks that require rework and maintenance needs which lead to
unnecessary cost and time expenses for all stakeholders. These quality related problems
not only occur during design and construction phases, but also during the operation phase
of finished projects. In addition, there are limited quality management principles or
approaches that are practiced in the construction industry. Furthermore, the awareness
and attention of various construction industry participants and stakeholders in quality
related matter is weak. As a result, projects are completed not meeting customer
satisfaction, stakeholder expectation and required quality. Thus, there is a need to go
towards a performance-based approach in addressing quality related issues through

2
continuous improvement and application of quality management principles and
approaches like TQM.

1.3 Research Objective

The main objective of this study is to devise a methodology in implementing a

management philosophy through the design of a conceptual TQM framework that can be
applicable to the Ethiopian construction industry. The study aims at building projects
with emphasis on Bahir Dar City construction projects and contractors.

Specific objectives are to:

 Evaluate current quality management practices in the contractors in Bahir Dar
City.
 Assess the level of understanding on TQM among contractors in Bahir Dar City.
 Determine significance Critical Success Factors in Total Quality Management.
 Design a conceptual framework for TQM.
 Conduct a gap analysis in implementing the framework.

1.4 Significance of Study

This study devises a conceptual framework to implement TQM practices in the

construction sector. The construction sector needs to apply TQM to be able to do its job
more efficiently, effectively and in consistent manner with the requirement of changes;
raise the level of performance; and meet the wishes of company employees and
customers. This researchcreates TQM awareness and addresses the potential measures
for applying TQM in construction projects. The research is expected to be an input and
pave the road to the advancement of quality management for students, academicians and
investigators for further research in the field of study.This paper aims to be a model not
onlyfor the Ethiopian construction industry, but also for other sub-Saharan African
countries.

1.5 Scope of Study and Limitation

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This research paper data collection process is limited to Bahir Dar city. The study uses
the building industry prior to the commencement of construction phase on selected Grade
I contractors who have an active public building projects in Bahir Dar city.

1.6 Limitationof Study

1. The research focuses only on the contractors, other stakeholders (consultant and
clients) within construction industry will not be discussed.
2. The research does not verify the finding by taking a contractor as a case study.
3. The research does not study the effects of each Critical Success Factors(CSFs) in
depth
4. Since TQM is a new topic for developing countries like Ethiopia, almost all
literature review work done from out of Ethiopia.

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 2. LITERATURE REVIEW

2.1. Introduction
This chapter presents a comprehensive literature review for the research to develop a
better understanding of the research objectives. Relevant literature on quality
management is discussed, the evolution of quality management, the general overview of
concepts of quality and quality management, total quality management, critical success
factors important for the implementation of TQM, barriers affecting the implementation
of TQM, the benefits that will arise from effective implementation of TQM and the TQM
framework.

2.1 Evolution of Quality Management

Conceptually, there are three arguments to the origin and development of quality. The
first is that quality is a recent development which evolved from theories of pre and post
classical management. The second is that, quality is the outcome of a revolutionary
scientific development. The last one is, the quality inspection is an evolutionary
development (Beshah, 2011).

The third argument focuses on the concept of quality started as early as human existence.
But quality management practice started in Japan in 1950s. As a result of the success of
Japanese firms in a number of global market, the quality management movement became
increasingly popular in the United States and Europe during the 1980s (Beshah, 2011).

The US Army Corps of Engineers (2004), states the history of the quality management.
By 1968 quality management system in construction had grown into a loose structured
process varying from field to field office in which more paragraphs were placed into the
contract defining specific items that were to be accomplished to better manage the task.
In these early years, there were a wide variety of responses on how to manage into the
job.

5
Recently, in order to address quality related issues, a number of studies have been
conducted in different countries. In developed countries, the quality management issues
are solved significantly. Where as in developing countries including Ethiopia, it still is a
big issue because of poor quality works.

2.2 Overview of Quality Management

2.2.1 Understanding of Quality

According to Juran, a modern definition of quality is “fitness for intended use”. This
definition basically says that quality is “meeting or exceeding customers’ expectation.”

Definition of quality in terms of Engineers perspective is Conformance to

specification(Kidanu, 2014).
According to Ashokkumar (2014), quality can be expressed as:
Q=P/E, Where, Q=Quality
P=Performance
E=Expectation
If Q>1, then the customer has a feeling of great satisfaction about the product or service
rendered. The determination of Q is based on precipitation, with the contractor
determining performance and expectations are determining by customers. The customer’s
expectations are more demanding.

Quality of construction is more difficult to define because unlike the manufacturing

industry the product is usually not a repetitive unit but a unique piece of work with
specific characteristics (Kidanu, 2014). According to US Army Corps of Engineers
(2004), for construction projects, quality begins with requirements carefully developed,
reviewed for adherence to existing guidance, and ultimately reflected in criteria and
design documents which accurately address these needs. And quality management in
construction emphasized that on the time delivery of projects and meeting of quality
standards. Therefore, a quality product of construction is one that meets all contractual
requirements (Statutory Regulators) at optimum cost and time(Kidanu, 2014).

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 2.2.2 The Concepts of Quality Management

The primary objective of the construction management is to balance the three legged
stool; time, budget and quality constraints and the safety and health issue as well. Quality
is not only impacts to aesthetics, appearance and durability but also it impacts
performance. Poor performance can lead to failure of everything (Kidanu, 2014).

Quality management is a way of to improve the effectiveness, flexibility and

competitiveness of the whole business. In construction the problem of quality and its
value of importance to the construction industry has been an area of great concern and
debate for many years. The lack of care and poor attitude towards quality on behalf of the
contractor is leading to snagging problems(Marasini & Quinnell , 2010).

2.2.3 Project Quality Performance Measurement

Performance measurement is a fundamental of quality management and a total quality

organization. Performance measurement can be defined as the process of quantifying the
efficiency and/or effectiveness of an activity (Neely et al., 1995). Traditionally, quality
based measures of performance have focused on the issues of such as the number of
defects produced and the cost of quality (Neely et al., 1995). In a successful total quality
organization, performance can be measured by the improvements seen by the customer as
well as by the results delivered to the shareholders. Performance can be measured in
terms of financial and non-financial terms, or a combination of both(Agbenyega, 2014).

2.2.4 Quality Assurance

Quality assurance (QA) is the planned and systematic activities implemented within
quality system and demonstrated, as needed, to provide adequate confidence that an
entity will fulfill requirements for quality. The primary function of quality assurance is to
be obtained for completed construction that meets all contractual requirements.
Assurance is a degree of certainty and quality assurance personnel continually to assure
or make certain that the contractor’s work complies with contract
requirements(Ashokkumar, 2014).

7
Thus, QA activities do not control quality they establish the means for ensuring quality
output. QA has to be built in to the process: this includes creating records, documenting
plans, documenting specifications and reporting reviews. Such documents and activities
also serve to control quality and assure it as well(Kidanu, 2014). In QA there can be used
both second and third party audits to assess the efficiency of the system. The main figures
of the stage are the use quality manuals, procedures, work instructions, quality planning
quality audits, etc (Beshah, 2011).

2.2.5 Quality Control

Monitoring specific project result to determine if they comply with relevant quality
standards and identifying ways to eliminate cause of unsatisfactory performance contract
documents comprise a clear, complete, and accurate description of the facility to be
constructed, correctly convey the intent of the client regarding the characteristics of the
facility needs to serve his/her purposes (Ashokkumar, 2014).

Both American National Standards Institute (ANSI) and ISO define quality control as the
operational techniques and activities: for example, providing a means to control and
measure the characteristics of material, structures, components, or system which are used
to fulfill the quality requirement. QC prevents undesirable deviations between the
planned quality and the product being supplied. Deming W.E derives quality control in to
four activities (Kidanu, 2014).

 Plan (establish goals, standardize working procedures and train employees)

 Do (Carryout the work according to plan i.e implement the process)
 Check (verify compliance with plans)
 Act (in case of noncompliance, finding and removing its root causes)

8
 Act Plan

Check Do
Figure 2. 1 Deming PDCA Cycle

The fundamental difference between QC and QA is that QC is inspection based while QA

is prevention based. QA oriented towards prevention of quality defects aiming at
minimizing the risk of making mistakes in the first place, thereby avoiding the necessity
for rework repair or reject (Beshah B. , 2011; Kidanu, 2014)

2.3. Total Quality Management

2.3.1 The Historical Development of TQM

The term Total Quality Management (TQM) is widely used and developed over the
globe. It is believed that TQM evolved gradually and took place four stages, quality
inspection, quality control, quality assurance and TQM(Zakuan & Muniandy, 2012).

9
 TQM

QA

QC

INS

Figure 2. 2TQM evolution process (Zakuan&Muniandy, 2012)

The today’s new concept of quality is termed as TQM.TQM is a timeline of the old and
new concepts of quality. One can see that the old concepts is reactive, designed to correct
quality problems after they occur but the new concept of quality is proactive, designed to
build quality into the product and process design(Mohammed N. A., 2016). TQM
process has been considered as a modern system in the issue of quality after quality
control, quality assurance and ISO in the construction sector. Recently, many
organizations all over the globe have started implementing TQM, with a view to
assessing the level of quality and to improve it(Rajan & Paul, 2017).

TQM’s origins can be traced to 1949, when the Union of Japanese Scientists and
Engineers formed a committee of scholars, engineers, and government officials devoted
to improving Japanese productivity, and enhancing their post-war quality of life. The
basic concept of TQM was developed in Japan(1949) by the three famous quality gurus –
Deming, Juran and Feigenbaum. ‘Total quality’ was termed by Feigenbaum at the first
international conference on quality control in Tokyo (1969). American firms began to
take serious notice of TQM around 1980 (Martenez-Lorente, 1998). Finally, in the 1980s
– 1990s, a new phase of quality control and management began and became known as
TQM (Rajan & Paul, 2017). Much study has been done with regard to the
implementation of TQM and it is believing the benefits of higher customer satisfaction,

10
better quality products, and high competitiveness are often obtained by the adaption of
TQM in the construction companies.

2.3.2 Definitions of TQM

Most of the writers on TQM have their own definitions, so TQM is the most popular
modern management concept. For the past three decades most governments and
organizations have implemented the TQM concept.

According to British Standard (4778:1991), Total Quality Management (TQM) is a

management philosophy embracing all activities through which the needs and
expectations of the customer, community, and the objectives of an organization are
satisfied in the most efficient and cost-effective manner by maximizing the potential of
all employees in a continuous drive for improvement. According to Asian Institute of
Technology (AIT), TQM is “a philosophy that strengthens the culture to foster
continuous organizational improvement through systematic, integrated, consistent effort
involving everyone and everything, focusing primarily on total satisfaction of internal
and external customers, where employees work together in teams with process
ownership, guided by a committed top management, which takes a proactive
participation”(Al-Musleh, 2010).

The above definitions define the TQM as a philosophy but from different point of view.
British standard describes the TQM as the management philosophy aiming to achieve the
organization’s objectives and meeting expectations of customers. While, the Asian
Institute of Technology (AIT), describes the TQM as the philosophy aiming to satisfy the
customers. Therefore, the common word towards the concept of TQM is a philosophy.

According to Al-Musleh(2010), a simple definition of TQM is a meeting of internal and

external customer requirements, and the main difference between quality and TQM is
that the quality term usually focus on a temporary process. An example is in construction,
to obtain a proper strength for concrete according to the specification, it should be cured
for 7 days until the required quality is achieved, so this is a temporary process. While
TQM is a long term process and adopts a strategic dimension, to guide each production,

11
financial, marketing and administrative plan in the direction which support the strategic
dimention.

2.3.2 Understanding and Awareness of TQM

The TQM concept and approach are well understood and widely practiced in Europe,
North America, Japan and growing economies of East Asia. However, some firms have
experienced difficulties implementing TQM successfully. These difficulties may not be
due to the TQM concept itself; rather, there might have been problems restricting from
the cultural factors. This often resulted in missing the whole picture of TQM.

TQM is an organization’s quality focused management approach, based on the

participation of all its members for long term success through customer satisfaction and
benefits to all members of the organizations and the society as a whole(Babatunde D. O.,
2016). The construction industry has arrived late to TQM, probably due the tendency to
easily push aside anything in management that is new, or to forget TQM as a fad. But the
implementation of TQM in other industries shows clearly that TQM is not a fad and
confirm the benefits of implementing this philosophy and how much it can improve the
customer satisfaction as the measure of business (Agha, 2010). TQM requires a complete
turnaround in a corporate culture and management approach compared to the traditional
way of top management giving orders and employees merely obeying them
(Quazi&Padibjo, 1997 as cited in Pheng&Teo, 2004).

According to Mohammed(2016), the TQM implementation in developing countries failed

due to the luck of understanding of QM. Crosby (1996) as cited in Mohammed(2016),
stated that the purpose of awareness is to let everyone feel that they belong to a quality
organization understands the management’s quality policy. Many studies were done
based on the assessment of managers’ awareness of a specific principle or practice of
TQM like teamwork and training. This study will develop the understanding and
awareness of TQM in the Ethiopian construction industry.

2.4 TQM in the Construction Industry

Today, quality management has become one of the important forces leading to
organizational growth and a company’s success in national and international markets.The
12
role of quality in construction has also been studied by researchers. In order to emphasize
the role of quality various aspects of quality tools and techniques have been also
described in previous studies. For the last two decades, efforts made to improve quality in
construction are widely reflected in the relevant literatures(Arditi & Gunaydin, 1997;
Metri, 2005; Agha, 2010; Sangle, Aher, & Devalkar, 2017). Many construction
companies are frustrated in their effort to improve quality through TQM because these
companies have exclusively focused on financial measures instead of quality
measures(Torbica, Z. M., and Stroh, R.C., 1999).

In spite of the construction industry had arrived late to TQM;Sangle, Aher and Devalkar
(2017), in their study stated that, the reason that the construction industry has arrived late
to TQM is that the construction professionals are unaware of the TQM principles and
techniques. They include that, to bring the benefits of TQM to construction industry,
more efforts must be made to spread the culture of TQM among the construction
professionals and TQM courses must be in the engineering under graduated programs.
The principle of TQM should be applied beyond management levels and include workers
on construction sites. These workers must be motivated to improve their work and
contractors must move away from their fixation with bottom line(Haupt & Whiteman,
2004).

2.4.1 Previous Study on TQM in the Construction Industry

Elghramrawy&Shibayama (2008), recognizes TQM as a successful philosophy which can

be implemented in the construction industry in Egypt. The study was taken as a
comparative analysis of management system between a Japanese construction company
working in Egypt with the Egyptian company, to demonstrate the applicability of TQM
effectively in the Egyptian construction industry.

Arditi and Gnaydin (1997), they published a paper which dealt with the TQM program in
the construction process. The research explains the main elements of TQM in the
construction industry. The main elements of TQM, which are still applicable and
essential in the successful implementation of TQM in construction organizations, are
leadership and management commitment, training, communication,supplier involvement,

13
teamwork, customer satisfaction, continuous improvement, process improvement, and
focus on employees(Arditi & Gunaydin, 1997).

The Effect of Total Quality Management on Construction Project Performance, case

study: Construction firms in Yemen were studied by Mohammed, Saeed and Hasan
(2012). They developed a framework for TQM according to literature review. The
developed framework demonstrated the relationship between TQM and construction
project performance by examining the effect of nine TQM constructs on three element
levels of project performance. The finding in this study shows that the TQM has a
positive effect on construction teamwork satisfaction, quality of construction project
implementation, client satisfaction and construction project implementation. They include
that, TQM can increase the performance of construction project by reducing time and
cost and increase the quality of project implementation. Those results assist contractors to
identify the positive effects for the implementation of TQM on project performance.

Agha (2010)in his study pointed out how construction professionals implement TQM and
its tools in their projects in the different stages of construction. The findings from each
case study included in this study, its clearly known that TQM can improve business
quality, increase customer satisfaction, reduce cost, save time and much more. To bring
these benefits to the construction industry, more efforts must be made to spread the
culture of TQM among the construction professionals and TQM courses must be in the
engineering under graduated programs.

2.5 Critical Success Factors in TQM

TQM has gained widespread global acceptance. However, some have achieved
remarkable success while others have suffered bad failures. Many of the failures can be
attributed to misunderstanding of TQM or the way the organization had implemented
TQM. Critical Success Factors (CSFs) are the behavioral aspects of management styles
and the human factors which emphasized on organization’s TQM (Mohammed, 2004).
CSFs can also be defined as the limited number of areas in which results, if they are

14
satisfactory, will ensure successful competitive performance for the organization, they are
the critical key areas where things must go right for the business to grow(Arshida, 2013).

There is no universal CSF for all TQM implementation frameworks. Scholars and
researchers used various CSF methods based on literature sources, interviews, analysis of
related organizational activities, mailed questionnaires, a combination of interviews and
with subsequent questionnaire(Arshida, 2013).CSFs are internal or external happenings
that can affect the firm for better or worse and so, require special attention(Kalra & Pant ,
2013). Construction firms, therefore, need to understand the TQM CSFs for the
successful implementation of TQM. Therefore, there is a pressing need to establish TQM
CSFs for construction firms.

The CSFs identified in different frameworks for TQM point to two categories of factors;
hard and soft dimensions of TQM (Rahman, 2006; Powell, 1995; Oakland, 2000). Hard
components of TQM concentrate on the tools and techniques, systems and the
supplementary measurement and control of the work process, ensuring conformance to
performance standards and the reduction of variability whereas soft components relate to
areas behavioral concerns such as increasing customer orientation, employee
management, organizational and quality culture. These dimensions are interrelated and
together are very important for the successful implementation of TQM. Literatures also
reveal that different countries have adopted similar TQM factors as criteria for quality
awards under different titles (Metri, 2005). However, the criteria for all these quality
awards are derived from three basic frameworks. These frameworks are the Malcolm
Baldrige National Quality Award (MBNQA), the Europeans Quality Award (EQA) and
the Deming Prize.

Merti (2005), in his study analyzes the CSFs of fourteen most prominent TQM
frameworks. In his paper, he proposes the 10 CSFs of TQM for the construction industry
based on the comprehensive analysis and examination of existing TQM frameworks and
literatures. For his study, the TQM frameworks were selected. The first three are in the
form of quality award with a different title. Furthermore, eleven TQM frameworks
developed by researchers and scholars has been selected. In total, he selects fourteen
important TQM frameworks which are, Deming Prize, Malcolm Baldrige National

15
Quality Award (MBNQA), the European Quality Award (EQA), Saraf et al., Oakland,
Flynn et al., Babber and Aspelin, Ahire et al., Black and Porter, Pheng and Teo, Ang et
al., Zhang et al., Nwabueze and Thiagarajan et al., were chosen from the TQM literatures
for the purpose of establishing TQM CSFs for the construction industry.

Even though the information on TQM expertise gives very nearly a clear figure of TQM
from different angles, and they stated that the implementation steps for construction
companies still needs more work. A comparative description of the CSFs of TQM
derived from major studies on TQM, based on those fourteen frameworks which are
analyzed by Metri (2005) including other three frameworks (Kaynak, H (2003), Conca et
al (2004), andSila&Ebrahimpour (2005)) is summarized in Table 2.1

Ethiopian Quality Award (EQA), was initiated by Addis Ababa University and Walta
Information Center, to recognize the need for implementation and integration of quality
concepts in the operation of the Ethiopian manufacturing and service industries. EQA has
developed a self-assessment manual which was carefully designed to accommodate TQM
principles and its main criteria used to evaluate industries were Leadership, Policy and
Strategy, Resource Management, Process Management, Customer Satisfaction, Business
Performance, and Impact on the Society. The manual is also in parallel with major quality
awards: Demining Prize in Japan, Europeans Quality Award in Europe, and Malcolm
Baldrige National Quality Award in USA.

Table 2. 1 Summary of CSFs of TQM from different Frameworks

Framework of Critical Success Factors*

TQM 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16
Deming Prize √ √ √ √ √
(2004)
MBNQA(2004) √ √ √ √ √ √ √ √
EQA (2004) √ √ √ √ √ √ √ √ √
Oakland (1993) √ √ √ √ √ √ √ √
Ahire et al. (1996) √ √ √ √ √ √ √ √ √ √ √
Flynn et al. (1994) √ √ √ √ √ √ √
16
Saraph et al √ √ √ √ √ √ √
(1989)
Babbar and √ √ √ √
Aspelin (1994)
Black and Porter √ √ √ √ √ √ √ √ √
(1996)
Pheng and Wei √ √ √ √
(1996)
Ang et al. (2000) √ √ √ √ √ √ √
Zhang et al. √ √ √ √ √ √ √ √
(2000)
Thiagarajan et al √ √ √ √ √
(2001)
Nwabueze (2001) √ √ √ √ √ √ √ √
Kaynak,H (2003) √ √ √ √ √ √
Conca et al (2004) √ √ √ √ √ √ √ √
Sila&Ebrahimpour √ √ √ √ √ √ √
(2005)

Note*:1- Top management commitment and Leadership; 2-Policy and Strategy; 3-

Process management; 4- Design quality management; 5- Education and training; 6-
Supplier quality management; 7- Customer satisfaction; 8- Employee Empowerment and
involvement; 9- Business results; 10- Information and analysis; 11- Benchmarking; 12-
Human resource management; 13-Impact on Society and environment; 14- Statistical
process control; 15- Quality Culture; 16-Communication

2.5.1 Selection of CSFs for the Survey

After the examination of all TQM frameworks, we see that not all frameworks are
comprehensive, but in many respects these frameworks complement one another. From
the summary of the literature review of the seventeen frameworks, a total of sixteen CSFs
with their frequency of occurrence were indicated against them (Table 2.2).

Table 2. 2 Frequency of occurrence of CSFs in TQM frameworks

No. Critical Success Factors Frequency of occurrence Rank

1 Process management 14 1

17
2 Customer Satisfaction 14 1
3 Supplier Quality Management 13 3
4 Top management commitment/Leadership 12 4
5 Employee Empowerment& involvement 12 4
6 Policy and Strategy 11 6
7 Education and Training 11 6
8 Design Quality Management 9 8
9 Information and Analysis 9 8
10 Human Resource Management 6 10
11 Business results 5 11
12 Quality Culture 1 12
13 Impact on Society and Environment 1 12
14 Statistical Process Control 1 12
15 Communication 1 12
16 Benchmarking 1 12

Some factors were grouped and termed to ensure that factors addressing similar issues
were combined in to one CSFs.Then after, by taking the first ten CSFs mentioned above
with the EQA main criteria, the current research has gone with a survey to select the most
Critical Success Factors which will be used for the implementation of TQM framework.
One more is quality culture, CSF, however, occurs only in the Black and Porter
framework(Black & Porter, 1996). Culture is more powerful than anything else in the
organization. “Culture, “how we do things around here in order to succeed,” is an
organization’s way of behaving, identity, pattern of dynamic relationships, “reality,” or
genetic code”(Metri, 2005).It has everythingto do with implementation and how success
is really achieved. No management idea, even it is good enough, will work in practice if
it does not fit the culture. Therefore, Quality Cultureis considered as one of the important
CSF of TQM.

1. Top Management Commitment and Leadership

2. Quality Culture
3. Policy and Strategy
4. Design Quality Management
5. Process Management
6. Supplier Quality Management
7. Education and Training

18
 8. Empowerment and Involvement
9. Information and Analysis
10. Customer Satisfaction
11. Human resource management

2.5.2 Top Management Commitment and Leadership

Since quality is part of productivity, first the management is to recognize that there is a
problem(Arditi & Gunaydin, 1997).The commitment of top management towards quality
has been considered as an important factor in the management of quality. Sila et.al
(2003), as cited in Keng(2010), observed that top management commitment as one of the
most common factors in seventy-six studies on TQM factors and their impact on various
performance measures across countries. Keng (2010), concluded in his study of top
management commitment in construction is that, even if the top management of a
construction organization is generally committed to the implementation of quality
management, the top management does not place quality as the priority against the
factors of cost and time. He includes that, some attitudinal changes need to be taken place
to rectify such mentality of the top management of construction organizations. Without
strong commitment in placing quality as the priority, quality of construction works might
be easily neglected should there be any pressing conditions in terms of time and cost
encountered by construction organizations.

The success of a TQM program first of all depends highly on the management practices.
TQM is a culture and philosophy that must permeate an organization as the methods of
management(Arditi & Gunaydin, 1997). Top management leadership is a degree of
which top management sets the quality objectives and strategies, provides and allocates
necessary resources, contributes in continuous quality improvement efforts, and assesses
quality management implementation and performance(Mustafa & Bon, 2012). Many
quality gurus such as Deming (1986); Crosby (1980); Oakland (1993); and Feigenbaum
(1986) pointed the vitality role of top management commitment and leadership in TQM
implementation. The most critical factor that contributes to successful TQM
implementation is the top management. According to Oruma et al. (2014), they
concluded that leadership has statistically significant positive effect on implementation of

19
TQM. When right leadership is provided by management initiatives employees look at
quality management as any other strategic management issues.

Many a time TQM initiatives have failed to fulfil their potential due to lack of senior
management commitment to the quality process. Thus, for TQM, commitment by the
management is essential. Without it; there is no need to proceed further(Metri, 2005).
This research try to reveal revealed the significance of top management commitment and
leadership in the implementation of TQM in Ethiopian construction industry.

2.5.2 Quality Culture

The culture is stated to acquire of knowledge, belief, law morale, art, custom and any
other habitual activity attained by man in the society(Alotaibi & Islam, 2013).

Quality is the outcome of cultural factors, namely organizational values and practices
among which leadership and employee working patterns are of paramount importance.
The development of a quality culture is a strategic issue for the achievement of customer
satisfaction and business competitiveness in a highly demanding and ascertain business
environment(Mendes, Silva, & Valle, 2014). Quality culture is the subset of overall
organizational culture that reflects the general approach, the values, the orientation
towards quality that underlies organizational actions and behaviors (Mendes, 2014). The
culture perspective on quality emerged from either the failure of quality program
implemented without the support of a consistent values system or the existence of
contradictory effects in organizations across industries and problems of diverse nature
(Barrett & Waddell, 2001 as cited in Mendes (2014). According to Alotaibi and Islam
(2013), quality culture is considered as the mediating variable in the relation between
TQM practices and company’s competitiveness.

Total Quality
Quality Company
Management
Culture Competitiveness
Practice

20
 Figure 2. 3 Conceptual framework for TQM practice, Quality culture and Competitiveness
(Source:Alotaibi and Islam, 2013).

The factors like use of information for improvement, authority equal to responsibility, job
security, climate of fairness, compensation based on equality, teamwork, collaboration,
learning and involvement, ownership, and development form an organization culture,
which then leads to increases in productivity, quality, and customer and employee
satisfaction. Failure of the TQM is attributed to a luck of developing and sustaining a
quality oriented culture and mismatch of organizational culture(Metri, 2005). In a sense,
TQM fundamentally requires a new culture. Quality culture’s analysis is the prior
important to implement TQM practices. The TQM program is expected to be successful
if the quality culture is parallel to the values and assumptions suggested by the TQM
principles (Alotaibi & Islam, 2013).

Quality culture, CSF, does not occur in most TQM framework. However, there is
evidence from the literature on the culture and success of quality initiatives. For instance,
these researchers, Mendes (2014), Jancikova & Brychta(2009),Alotaibi and Islam (2013),
and Metri (2005) have all emphasized the importance of organization culture for the
implementation of quality initiatives in their studies.

2.5.3 Education and Training

Training topics typically include quality awareness, teamwork, leadership, interpersonal

communication, job related technical skills, and problem solving techniques. Companies,
that lead in quality management, have at least five days training per year for each
employee(Elghamrawy & Shibayama, 2008). The importance of education and training is
recognized by every quality expert. Under TQM, quality is every individual’s
responsibility and the training must be targeted for every level of the company(Arditi &
Gunaydin, 1997). There should be customized training plans for management, engineers,

21
technicians, home and field office staff, field labors and support personnel (Arditi &
Gunaydin, 1997).

Training is short-slightly regarded as ‘nonproductive’ by many managements, and is thus

one of the first things to go when finances are light. However, think how little proper
training costs, as a proportion of the total involved an employee over the months and
years he may be working for the company. It is minute in comparison to the potential
advantage to the company of that worker understanding his job, so that he can do it
properly and to the company’s best advantage. Even this does not include the
unquantifiable gain to the company of that worker gaining satisfaction and pleasure from
doing a good job and thus wanting to continue so doing and improving yet further
(Neave, 2012).

Engineering, architecture and construction management students who eventually become

future leaders in different projects must be instructed in the basics of quality management
education and training in TQM theory and practice at all levels, which are design,
construction and operation phases, are essential to enhance competitiveness(Mohammed
N. A., 2016).

It can be argued that the transient construction work force is quite different from the
relatively stable manufacturing work force. This transient nature may make it more
difficult to train workers, especially craft labors, for the construction industry. However,
if TQM concepts become widely accepted throughout the construction industry, workers
switching from one company to another should require less TQM training since all
workers would have received basic quality awareness in their previous employment
(Burati, J.L et al., 1992 as cited in Arditi&Gunaydin, 1997).

Education and training for employees needs to not only possess the adequate knowledge
and skills to perform their job, but also to possess specific value of knowledge, and skills
associated with TQM issue and activities. Lack of appropriate training and in adequate
knowledge are cited as a reasons to the failure of TQM initiatives. Employees will be
motivated to have quality oriented behavior when their roles and relevance of their
training to overall quality goals are clarified(Metri, 2005).

22
 2.5.4 Process Management

A process is a way of getting things done. A process consists of the logical set of
activities, procedures and policies necessary to carry out an internal or external customer
needs and expectations (Imbeah, 2012). According to the TQM philosophy if the process
is correct, so will be get the end result easily. Thus the organization should work to
improve the process so as to improve the end product or service(Imbeah, 2012). Excellent
organizations are systematically design, manage and improve processes in order to satisfy
and increase value of their customers and stakeholders.

The management of processes is based on the knowledge of customer requirements and

of their expectations, and the expertise to analyze the processes for improvement
opportunities as well as to implement improvements in the processes (Al-Musleh, 2010).
If an improvement process is to progress in a continuous and incremental manner it is
necessary to evaluate it at regular intervals in order to identify the next steps, what has
been unsuccessful, focus peoples’ efforts, highlighted issues problems and areas of
concern or weakness which need to be addresses, and to recognize improvement
opportunities (Al-Musleh, 2010).

Process management focuses on managing the construction process so that it should

operate as expected, without breakdowns, shortage/missing materials, tools etc.(Metri,
2005). Colin Armistead (1996) as cited in Al-Musleh (2010), summarized some
principles of managing by process such as: know the process, understand the linkages,
work on the trade-off, teach others about the process, manage careers, build specialist
expertise, improve the process.

Process management is needed to reduce rework and waste mis-specification of

processing parameters. This provides clarity of ownership and less reliance on inspection.
In the context of construction, specific activities like planning the sequence of field tasks,
analysis of layout, access, temporary facilities, innovative use of pre-assembly or pre-
fabrication items are carried out. Constructability is also included in the contract
document. Pre-work, demobilization, executions are a part of process management
(Metri, 2005).

23
 2.5.5 Supplier Quality Management

Supplier quality is an important dimension of quality management as defective incoming

materials and parts lead to process and product quality problem (Imbeah, 2012).
Purchased materials and parts often become the major contributors to quality problems.
Most research identified good supplier relationship as a necessity of maintaining
competitive advantage which leads to quality supplier of products and services.

Supplier quality management is confidence in a supplier’s ability to deliver a good or

service that will satisfy the customer’s needs. It includes fewer dependable
subcontractors, reliance on supplier’s process control; strong inter dependence of supplier
and customer, purchasing policy, emphasizing quality rather than price, supplier quality
control and supplier assistance in quality development (Metri, 2005).

The quality of any stage in a process is dependent on the quality of the previous stages. In
the context of construction industry, the quality of project build by the contractor in
directly related to the quality of the plans and the specifications prepared by the designer,
the quality of the equipment and materials supplied by vendors, and the quality of work
performed by sub-contractors (Arditi & Gunaydin, 1997).

Commonly, in the construction industry, contractors, sub-contractors, and vendors are all
wins against one another to complete on the basis of low-bid contracts. Yet, according to
Peters as cited in Arditi and Gunaydin (1997), successful projects in the future are likely
to be decided based on quality, life cycle costs (not initial cost), and supplier
responsiveness, which can only be achieved through partnership relationship, these
relationships will involve fewer suppliers, and they are expected to be based on mutual
trust.

In construction, materials are the major sources of quality problems and affect owner
satisfaction. Instead relying on tools such as acceptance sampling to establish the quality
of incoming materials and component parts, it is preferable for contractors to purchase
from a more limited number of qualified or certified suppliers (Metri, 2005).

2.5.6 Empowerment and Involvement

24
Empowerment and involvement are two more important methods, managers can use to
enhance the individual’s self-esteem and improves his/her ability to solve problems and
to make low-risk decisions, worker motivation, responsibility, and accountability are
generic concepts that can benefit any business organization(Metri, 2005). In a sense,
empowerment and involvement are extensions of job design, because each fundamentally
alters how employees in an organization perform their jobs.

Empowerment is the process of enabling workers to set their own work goals, make
decisions, and solve problems with in their spheres of responsibility and authority.
Involvement occurs when employees have a voice in decisions about their own work
(Griffin et al., 1995). Employee involvement has been a focus of attention for many years
in various fashions, such as participative decision making and participative management,
but more recently has been extended through the concept of empowerment, which has
become a significant topic with in the organizational behavior literature(Greasley et al.,
2003). Empowerment requires the work force to provide with freedom, democracy and
flexibility, at the expense of control, hierarchy and rigidity, and it also represents a shift
towards a greater emphasis upon trust and commitment at the work space (Greasley et al.,
2003).

The need of empowerment in construction industry is evident when examining the sectors
reliance upon virtual teams fragmented work groups, sub-contracted labour and multi-
organizational project delivery structures (Greasley et al., 2003).

2.5.7 Information and Analysis

Information and analysis consists of evaluation for various policies and strategies,
analysis of cost of quality, quality audit, department and/or function performance
evaluation, documentation and control of documents, and employee and supplier
performance evaluation (Metri, 2005; Imbeah, 2012). Documentations and control of
document is an important element which facilitate in the review process, assessment and
attainment of quality management in a firm.

Quality audit in TQM is a periodic, independent, and documented examination and

verification of activities, records, processes, and other elements of a quality system to

25
determine their conformity with the requirement and related results comply with planned
arrangements, and whether these arrangements are implemented effectively and are
suitable to achieve objectives. Quality programs should also be reviewed and its status
and adequacy to the firm should also be checked regularly. Audit/review can also be done
on progress and the incorporation of implements and lesson learned in to the plan for
future years (Imbeah, 2012).

2.5.8 Customer Satisfaction

Excellent organizations comprehensively measure and achieve outstanding results with

respect to their customers. Customer satisfaction requires the organization to know its
status, its product, its competition, and its customer(Mohammed N. A., 2016). A
construction organization may outperform the competition by being able to anticipate and
respond quickly to customers’ demands with new ideas and technologies and to produce
constructed facilities or exceed customer’s expectation(Metri, 2005).

With TQM’s focus on quality products and services that meet or exceed customer
expectation, organizational effectiveness has the same meaning to customer satisfaction
(Ugboro & Obeng, 2000). Customer satisfaction has become an essential competitive
advantage in all areas of production. In general, the significance of customer satisfaction
is emphasized in markets where competition is intense(Kärnä, 2009).

In construction, customer satisfaction could be determined by the extent to which a

physical facility (product) and construction process (services) meet and/or exceeds a
customer expectation. This definition recognizes that the need of understanding,
evaluating, defining, and managing, expectations so that the customers’ requirements are
met. According to Kärnä (2009), this requires a combination of conformance to
specifications (the project must produce what it said it would produce) and fitness use
(the product or service produced must satisfy real needs). Customer relations in
construction are dynamic; they continuously increase and change so a continuous review
is necessary to ensure customer satisfaction. To continue to satisfy the customers, all
customers must be identified, and then the target customers are must be determined,
correspondingly customer needs and expectations must be determined (Mohammed N.

26
A., 2016). Customer satisfaction is one of the key elements in TQM, an approach that
emphasize overall satisfaction through the continuous improvement of products.
Construction companies are adopting TQM to improve their performance. However,
construction has lagged behind other industries in implementing TQM because of its
inability to accurately determine customer requirements and successfully transform these
the requirements into the completed facility(Kärnä, 2015).

A company must measure customer satisfaction periodically in order to learn how

satisfied its customers are. Torbica and Stroh (2001) as cited in Kärnä, (2015), argued
that, the extent of customer satisfaction in construction is only known late in the project
when most of the customer’s money has already been spent. When companies know
attributes of a service and/or product affect customer satisfaction, their challenge is to
modify their current offering in a way that would lead to maximum customer satisfaction.

Generally, without customer focus, the TQM program will lack the foundations on which
to build further(Metri, 2005).

2.5.9 Policy and Strategy

The implementation of the vision and mission by developing a stakeholder focused

strategy that takes account of the market and sector in which it operates are the criteria of
excellent organization. The criterion policy and strategy is concerned with: how the
organization implement its mission and vision by a clear stakeholder-focused strategy,
supported by relevant policies, plans, objectives, targets and processes (Al-Musleh,
2010). A very important part of construction organization’s strategy must consider such
issues as the values, skills, knowledge and attitude of subcontractor management and
employees.

One of the best methods to access the effectiveness of policy and strategy is to use
criteria of excellence from prestigious quality models such as Ethiopian Quality Award
(EQA), Malcolm Baldrige National Quality Award (MBNQA), and the European Quality
Award (EQA)(Beshah B. , 2011).

The organization’s mission, values, vision and strategic direction and the ways in which
the organization achieves(Al-Musleh, 2010):

27
  How policy and strategy are formed on the basis of information that is relevant to
total quality
 How policy and strategy are based on the concept of total quality
 How policy and strategy are the basis of business plans
 How policy and strategy are communicated and implemented
 How policy and strategy are regularly updated and improved

2.5.10 Human Resource Management

Excellent organizations plan and manage external partnerships, suppliers and internal
resources such as humans, buildings, equipment, technology and materials in order to
supportpolicy and strategy and the effective operation of processes. Management
participation in quality activities is not enough to contribute to quality improvements as
cost of total quality is difficult to control by management al-one (Imbeah, 2012).
Employees are encouraged to show commitments to quality issues. When workers
themselves are committed to delivering quality, they take greater initiative towards
meeting product and process specification; detecting and eliminating challenges;
improving product and process designs and setting realistic yet challenging performance
targets. This is better enhanced if resources are provided for employees for effective
training and developmental activities.

The implementation of quality management techniques enables organizations to improve

internal efficiencies, which is considered as a prerequisite to become competitive in
global market (Wickramasinghe, 2012). The TQM philosophy focuses on quality as a
business imperative in which all employees are charged with satisfying customer needs,
whether these customer groups are internal and external to the organization(Kumar R. ,
2012).

According to Kumar (2012), implementing TQM within an organization has extensive

implications for Human Resource Management. For an organization to complete the
construction projects successfully, it is that it must consider both the external, as well as
the internal, resource based and relational based views. The success and the progress of
an organization is heavily dependent on the combination of HRM, TQM, organizational

28
commitment and the job involvement (Indumathi, 2016). Attraction and retention of the
best employees within the organization, increasing job satisfaction, getting higher level
performance from the employees are the most tasks in human resource management. But
to achieve all of these things and reach to organizational goals an organization should
have employees with organizational commitment and job involvement.

2.6 Implementation of TQM

To understand the culture of the organization and using that knowledge to implement
culture change is an important element of TQM. The culture of good teamwork and
cooperation at all levels in an organization is essential to the success of TQM.Before
implementing TQM, management must determine whether a change in culture, or a
change in the behavior of the organization’s employees, is needed(Rumane, 2011). Table
2.3 describes culture changes needed in an organization to meet TQM.

Table 2. 3 Cultural changes required to meet TQM Requirements

From To
Inspection Orientation Defect Prevention
Meet the Specification Continuous Improvement
Get the Product Out Customer Satisfaction
Individual Input Cooperative Efforts
Sequential Engineering Team approach
Quality Control Department Organizational Involvement
Departmental Responsibility Management Commitment
Short-term Objective Long-term Vision
People as cost Burden Human Resource as an asset
Purchase of Products and services on Purchase on Total Cost Minimization
Price-alone basis Basis
Minimum Cost Suppliers Mutual Beneficial supplier relationship
(Source Rumane, 2011)

Pheng and Teo (2004), concluded in their study is that, construction organization should
realize that results cannot be achieved overnight and that an organization needs time to
adapt, change, and learn.Harrington, Voehl, & Wiggin(2012), explain that TQM
implementation for construction firms is started with the basic concept of TQM itself.
Elghramramy and Shibayama (2008), recognizes TQM as a successful philosophy which
can be implemented in the construction industry in Egypt. The study stated that the

29
government should adopt new reforms towards quality policies in order to fully
implement TQM in the construction.

There are basic components of TQM for the organization which want to implement TQM
in their organization. Figure 2.4 show that the sequential relationship of the basic
components of TQM.

There was no single universal, approach to TQM implementation in construction firms, a

general sequence of four implementation phases emerged as offering the best opportunity
for successful implementation. These phases include: exploration and commitment;
planning and preparation; implementation; and sustaining (Rumane, 2011). The
exploration and commitment phase is characterized by perceived need for change,
investigation of approaches, Engagement of consultant, Top management basic trainings,
and conformation of TQM commitment. The planning and preparation phase is
characterized by strategic quality development process, initial development of quality
infrastructure, expansion of training (more people, more subjects and management role
modeling), team management system and team process models. The implementation
phase is characterized by management oversight structure, realignment of reward system,
formation of teams, teams-skills training, pilot improvement projects, implementation of
results, company-wide expansion, and vendor or supplier process. The last phase, which
is sustaining, is characterized by absorption of TQM infrastructure into regular
management system, long-range planning, focus on processes and customers, ongoing
training, ongoing improvement efforts, and management for continuous
improvement(Rumane, 2011).Mohammed, Saeed, & Hasan (2012), the result from their
study is TQM has positive effects on teamwork satisfaction, quality of construction
project implementation, client satisfaction, and construction performance.

Decide Made to Implement TQM

TQM Overview
30
Set Mission
 Figure 2. 4 Basic Components of TQM (Rumane, 2011)

2.7Barriers for the Implementation of TQM

The implementation of a TQM is faced with various obstacles in many organizations’

overall the globe. There is evidence of disappointing results in many organizations’

31
attempt to implement quality management due mainly to barriers in implementation
(Imbeah, 2012). Barriers in implementation arise from improper attitudes and perception
of management and employee, inadequate resources and training as well as inappropriate
environments for implementation. In the construction industry there are several barriers
to the extensive deployment of TQM, due the construction industry is different from
other industries in many aspects. Moreover, many construction companies consider
quality programs as extra cost because of the fact that they are not totally aware of that
the cost of nonconformance to quality is much higher than that of operating a quality
program. Polat, Damci and Tatar (2011), revealed in their study, the contractors are
aware of the benefits of TQM implementation but they are still several barriers to
implementation. They include that, lack of top management’s support, commitment and
leadership are the three most important barriers.

Pheng and Teo (2004), are listed out the primary reasons for contractor resistance to
implement TQM
 The difficulty in applying TQM principles in an industry with high product
diversity by using subjective numbers to define quality (i.e. meeting the customer
needs and providing high client satisfaction)
 The difficulty in successfully integrating TQM in a company and maintaining
stability and competitiveness in industry
 The new cost-benefit ratio of improving quality in the construction industry and,
specifically, of implementing TQM in construction.

The fragmented nature of the industry is one of the barrier in TQM application and
contractors are reluctant in adopting TQM philosophy as they are unable to realize its
long term benefit(Rajan & Paul, 2017).

Some barriers in implementing TQM were also recognized that were one of the major
difficulties is the traditional way of accepting tenders and the lowest price is awarded.
The long term implementation of TQM can also sometimes lead to major troubles like the
sudden change of the market(Kiruthiga, 2016). Changing the organization’s culture is a
difficult task in order to implement TQM. This study was done in India on the
implementation of TQM, and demonstrated the following obstacles(Kiruthiga, 2016):

32
  Lack of knowledge regarding to TQM
 Doubts about management intentions
 Lack of commitment especially in the managerial level
 Not knowing the effectiveness of TQM

In reality, no company can fully implement TQM. It is a continuous improvement

process and as such never ending. Its culture and philosophy must infiltrate an
organization, and can thrive only under senior management when it establishes it as a top
management priority and commit itself to its success. Imbeah (2012), recommend that
training and education are key factore in the implementation of TQM.

2.8 Tools and Techniques of TQM

TQM has been developed around a number of critical factors. However, TQM is much
more than a number of critical factors; it also includes other components, such as tools
and techniques for quality improvement(Imbeah, 2012). Tools and techniques are vital to
support and develop the quality improvement process.

Dale (2003), states that all techniques have similar importance, but that they are different
and applicable in different situations. This means that each technique has unique qualities
and can present the same data in different ways. Dale also strongly maintains that an
effective employment and a mix of tools and techniques constitute the way to solve
problems. It is evident that some firms fail when they implement TQM because suitable
quality management methods such as tools and techniques for quality were not used(Tari
& Sabater, 2003).

Researchers have identified a number of tools and techniques to improve quality. Tool is
defined as a device with a clear function and usually applied on its own while technique
has a wider application and is understood as a set of tools(Tari & Sabater, 2003). The
seven common quality control tools and techniques are Check Sheets, Check Lists,
Histogram or Bar Graph, Pareto Principle, Cause and effect/ Fishbone/ Ishikawa
Diagram, Scatter Plots and Flow Charts.

2.9 Framework for TQM

33
TQM implementation is perceived as a complex process and as a difficult and tiring task
and literature reveals that the quality provided only guidelines or prescriptions and did
not offer a specific model or framework for implementing the concepts and principles of
TQM. It is only appropriate that a sound implementation framework be developed before
actual implementation to ensure the successful adoption of TQM in any organization.

The reader’s Digest Universal Dictionary (1087) as cited in Yosuf and Aspinwall (2010),
defines framework as “a structure for supporting, defining, or enclosing something;
especially, skeletal erections and supports as a basis for something to be constructed” and
also “a basic arrangement, form, or system”. If TQM is to be theoretically designed and
constructed, then the one would need to have the overall picture and structure for
implementing, which is referred to as a framework for carrying out those relevant and
important activities.

In designing a TQM framework, one should devise the system to be developed, the
activities to be carried out and the ultimate vision of the new style of managing quality in
an organization. Once the framework is designed, assessment tools and performance
measures are integrated within the system. At present, there are different classification of
TQM frameworks: consultants and expert-based, award-based and academic-based.
Basically, consultant-based frameworks are those derived from personal opinion and
judgement through experience in providing consultancy to organizations starting the
TQM journey. Academic-based frameworks are those developed by academics and
researchers mainly through their own study and experience in the field. The award-based
framework is a self-assessment tool that companies use once TQM has started(Yusof &
Aspinwall, 2000).

2.9.1 The Need for TQM Framework

Framework is always a well-linked output which serves as a means of presenting ideas,

concept, pointers and plans(Dale, 2003). It allows users to choose their own starting
position and specific course of action and priorities, and to develop the dimensions of

34
TQM at a pace that suits the firm’s situation and available resources. So, TQM
framework should be designed to represent the operations of the organization, the
systems to enhance the activities that will be carried out bearing in mind the ultimate goal
and style of managing quality in an organization(Imbeah, 2012).

Some of the reasons why a framework is needed are (Yusof & Aspinwall, 2000);
 To illustrate an overview of TQM so as to communicate a new vision of the
organization
 It forces management to address a substantial list of key issues which otherwise
might not be addressed
 It gives an insight into the organization’s strengths and weaknesses
 Most importantly, to support implementation and to improve the chances that
TQM adoption will be successful.

35
 3. RESEARCH DESIGN AND METHODOLOGY

3.1 Introduction

According to Kumar (2011), research is a process of collecting, analyzing and

interpreting data to provide solution for a question or a problem. With this regard,
research design and methodology is a means of which tying up all the research processes
jointly and guiding the researcher to achieve the objectives of the study. Research
methodology refers to the overall approach taken, the theoretical basis from which the
researcher comes.

With this understanding, the aim of this chapter is to present research methodology which
will be followed to achieve the objectives of the research. Therefore, the research design,
the approach taken, the particular data collection method chosen and the means of
analysis are all considered to be part of this thesis’s methodology and described in the
following sections.

3.2 Research Design

A research design is a procedural plan, structure and strategy that is adopted by the
researcher to answer questions validly, objectively, accurately and economically, and it is
the arrangement of conditions for collection and analysis of data in a manner that aims to
combine relevance to the research purpose with economy in procedures(Kumar, 2011).
The overall study design/approach is summarized in Figure 3.1.the figure explains how
the entire study is planned and implemented to answer research questions validly,
objectively, accurately and economically in the research processes.

The research begins with the identification of the problem which has been done through
unstructured literature review and informal discussions with classmates, colleagues and
professionals in the construction sector. After this,the poor quality management of the
construction industry is identified as a proposed problem to be studied.

Once the research area is identified, literature review has been conducted to have an in
depth understanding on the research topic and its objectives focusing on the practices on
quality management in construction projects. The review includes books, journal, articles,

36
internet sources and archival document search such as checklists and approval forms of
the contractors.

Problem Through discussion with

Identification professionals and unstructured
literature review

To have conceptual and contextual

Literature Review
basis on the research topic and
identify quality managementpractices

To create TQM awareness among

the Ethiopian construction
Panel Discussion
companies before the questionnaire
survey

Questionnaire development,
Questionnaire distribution and collection, with the
design and Data objective of obtaining professional
collection opinions on Quality Management
Practice and significance of TQM
CSFs

Result and Evaluation of respondents’ opinion

Discussion from the panel discussion and
questionnaire survey

Design framework Develop a conceptual TQM

for TQM framework based on the literature
and the result obtained from the
survey about CSFs of TQM

Conclude the findings and draw

Conclusion &
recommend item for improvement
Recommendation
and suggestion for further study

Figure 3. 1 Flow chart of the brief Research Methodology

37
 3.2.1 Research Strategy

Research strategy, is part of the research design, which can be taken as a way in which
the research objectives are questioned (Bouma et al., 1995), as cited in Agbenyega, 2014.
The research strategy can be categorized into two types, namely, ‘quantitative research’
and ‘qualitative research’. Depending on the purpose of the study and the type and
availability of the information which is required, the researcher shall decide which type
of research to follow.

In this study, the research has both qualitative and quantitative approach and the main
data collection technique used are panel discussion and questionnaire survey. The
questionnaire survey method allows the researcher to solicit all respondents with the
same question with predetermined responses.

3.3 Source of Data and Data Collection Approach

According to Kothari (2004), deciding on the method of data collection to be used while
studying, the researcher should keep in mind two types of data which are primary and
secondary. The primary data are those which are collected fresh and for the first time, and
thus happen to be original in character; whereas, the secondary data are those which have
already been collected by someone else and have already passed through some sort of
process.

This study devises a methodology in implementing a management philosophy or TQM

framework in the Ethiopian construction industry at a project level with emphasis on
Bahir Dar City Public Building projects through the involvement of contractors. In this
study, a desk study approach (secondary data collection) and, a panel discussion and a
questionnaire survey (primary data collection) are carried out.

3.3.1 Desk Study

In order to develop the discussion question and field survey which is the questionnaire,
the desk study is an essential aspect of the research. The purpose of the desk study is to
obtain secondary data from source documents and besides literature review will be
conducted to develop conceptual basis for the study. The secondary sources of

38
information are identified and collected from books, articles, journals, newspapers,
magazines and internet sources. The review of literatures related to total quality
management and its implementation in the construction industry will provide the basis to
design the questionnaire which was distributed to professionals involved in the
contractors.

3.3.2 Panel Discussion

Panel discussion is a discussion in which selected experts (the panel) carry on

conversation in front of an audience/participants. At the end of each discussion, the
audience also participate and contribute its input. The purpose of this panel is to
reproduce the features of a small discussion group for the benefit of a large group.
According to Harry (1929), the objectives of educational panel discussions are to provide
factual information and conceptual knowledge; give awareness of theories and principles;
and provide solution for a certain problem. In this study, the panel discussion aims to
identify the level of TQM understanding and create TQM awareness amongthe
employees in Ethiopian construction companies. Subsequently, the panel discussion can
provide factual information and conceptual knowledge about TQM before designing the
questionnaire among participants in the Ethiopian construction industry. TQM is a
relatively new management philosophy for the Ethiopian construction industry and many
employees in the industry may have limited knowledge on TQM. Therefore, the panel
discussion was undertaken on December 23, 2017.

3.3.3 Questionnaire

Primary data are collected during the course of experiment in an experimental research,
but in this type of descriptive research, the discussion results and survey responses are
used. According to Kothari (2004), there are several methods of collecting primary data
particularly in survey and descriptive research. The important ones are: i. Observation
method, ii. Interview method, iii. Questionnaire, iv. Schedule and others. Among these
methods of collecting primary data, this study used a questionnaire survey.

Survey refers to the method of securing a phenomenon under study from all or a selected
number of respondents of the concerned universe(Kothari, 2004). A questionnaire is a

39
written list of questions, the answer to which are recorded by respondents. In the
questionnaire, respondents read the questions, interpret what is expected and then write
down the answers. Because of limited time and budget, most questions are closed, which
make it easier to compare responses to each questions and easily analyze the data
collected from the questionnaire.

3.3.3.1. Content of Questionnaire

Generally, the questionnaire was designed to collect data from contractors who have
active public building projects in Bahir Dar City. The questions were grouped in to
different parts to collect data on knowledge in quality management practices and about
total quality management. Part one solicited personal and general information from the
construction firms. Part two solicits information on firm’s general understanding towards
quality and their quality management practice. This section also seeks to determine firm’s
data acquisition, priority given to some factors, performance indicator for quality and
quality improvement methods. In part three, the research seeks to determine the
significant critical success factors in total quality management. The final part is designed
to solicit, what may be a challenge to devise TQM in their organization.

3.3.3.2 Questionnaire Administration

The research questions were developed by different researchers and were reviewed by
some experts in the academia and in construction project practices. Subsequently, a pilot
study was conducted for 10 contractors to identify and eliminate potential ambiguity in
the questionnaire. Few questions were reviewed as a result of non-response from the
respondents. This was done to improve the reliability and validity of the instrument. This
pilot study also used as a first administration to test the stability (test-retest) reliability of
the single item questions of the questionnaire. The second and the main administration of
the questionnaire was done after the panel discussion.

3.4. Research Population and Sampling Technique

3.4.1. Population

40
A research population can be defined as collection of individuals or objects that have a
common, binding characteristic or traits. In addition, population is defined as all elements
(individuals, objects and events) that meet the sample criteria for inclusion in a study
(Kothari, 2004). This research covers a population of twenty-three (23) respondents made
up of Grade-I construction firms who have active public building projects in Bahir Dar
City. The main purpose to use this category of firms (Grade I) is that their activities
directly or indirectly have a commitment on quality management and related issues in the
execution of projects.

3.4.2. Sampling

According to Kothari (2004), the respondents selected should be as a representative of the

total population as possible in order to produce some figure cross-sections. The selected
respondents constitute what is technically called a sample and a process to select it is
called sampling technique. There are two types of sampling techniques, namely
probability and non-probability sampling(Kothari, 2004). This research used the non-
probability sampling technique.

Non-probability sampling, also known as purposive sampling and judgment sampling, is

that sampling procedure which does not afford any basis for estimating the chance that
each item in the population is included in the sample (Kothari, 2004). Subjects in this
sample are usually selected on the basis of their accessibility or by the purposive personal
judgment of the researcher. This sampling technique was used because the researcher was
bounded by time and money limitations and is almost impossible to randomly sample the
entire population. In addition, this is carried out to enable the researcher select active and
qualified experts for the study.

3.4.2.1. Sample Size

Sample size was also chosen purposively due to the scope of the work, the knowledge of
the population and the purpose of the study.
Table 3. 1 Sample size

Respondents Unit of Analysis Population Sample Size

Grade-I contractors (Contractors who Contractor 23 23
have active public building projects)

41
 Total 23 23
The information was gotten from the Bahir Dar City administration.

3.5. Data Analysis Techniques

The data retrieved from the survey is analyzed using Statistical Package for Social
Scientist (SPSS 23) software computer program. In this study, both descriptive and
inferential statistics are used for analyzing data collected through the survey.
Measurement for reliability was done to determine the measurement scale that had been
developed. This would produce consistent results if measurement is done on a repeated
basis. The study utilized internal consistency, Stability(test-retest) method in determining
the instrument reliability with Cronbach coefficient and Pearson’s Coefficient;
respectively.The variables in this study were tested with the aid of Chi-Square test at a
significant level of 95%.

3.5.1. Relative Important Index

Fowier and Floyd (1995) as cited in Imbeah (2012), define ranking as comparison among
given options within pairs of options, by cardinality of importance (first, second, third,
…), or that score items one at a time using a common scale, and it also determines the
importance of those factors. In the research, Important Indices (II) were used to rank the
variables. II used for facilitating the identification of the level of criticality or significance
of the critical success factors contributing to the successful implementation of TQM in
the Ethiopian construction industry. A ranking of II were undertaken to ascertain the most
prominent of the factors.

Having identified factors critical for successful implementation of TQM, it is necessary

to rank these factors according to their relative importance (significance) from the
construction firm’s point of view and it was determined using the formula below.

(5n5 + 4n4 + 3n3 + 2n2 + n1) ∗ 100

𝐼𝑚𝑝𝑜𝑟𝑡𝑎𝑛𝑡 𝐼𝑛𝑑𝑒𝑥(𝐼 𝐼) =
(5(n5 + n4 + n3 + n2 + n1))
Where: n1 = Number of respondent who answered ‘Not Significant’
n2 = Number of respondent who answered ‘Slightly Significant’
n3 = Number of respondent who answered ‘Moderate Significant’

42
n4 = Number of respondent who answered ‘Very Significant’
n5 = Number of respondent who answered ‘Exceedingly Significant’
The I I for each item was calculated.

43
 4. RESULT, ANALYSIS AND DISCUSSION

4.1. Introduction

The aim of this chapter is to discuss and present the results of the panel discussion and
questionnaire survey conducted with the employees who are working on the contractor’s
construction company. The descriptive statistics of the data provide both qualitative and
quantitative insight to this investigation and as such provides valuable contribution to the
aim of the research. The qualitative analysis presented here are based on the data from the
panel discussion and which aims to assess the level of TQM understanding among the
Ethiopian construction companies.

Similarly, the quantitative analysis also presented based on data from the questionnaire
survey; the demographics of respondents’ firm and respondents, and quality management
practices of the surveyed construction firms. This chapter also elaborates on the priority
given to some major quality factors with in the firms, and on the best indicators or
measures for quality in the construction firms.

In addition, an analysis is presented to understand the factors which are critical in the
implementation of TQM in the Ethiopian construction industry. The results are actually
structured to determine the critical success factors and assess the level of importance of
the critical success factors using important indices.The variables in this section of study
were tested with the aid of Chi-Square test at a significant level of 95%.

4.2. Results from Panel Discussion (Qualitative Methods)

The discussion questions were prepared from the desk study. The panel discussion was
conducted in Bahir Dar University Poly Campus on December 23, 2017. The panelists
and other participants were from the contractors which were included in the population of
this research. The main objective of the panel discussion was to assess the level of
understanding of TQM and creating awareness of TQM for the panelist and participants.
A total of five panelists and fifteen participants were present in the discussion.

44
 4.2.1. Quality Understanding

The purpose of this question is to confirm whether the panelists and participants have an
understanding of quality definition and how they describe the quality from their personal
perspective.

Other
18%

Process
Control/Eli
mination of Customer
Defects Satisfaction
12% 70%

Figure 4. 1 Quality Understanding

As shown in the Figure 4.1, the majority (70%) of the panelists and participants who
were involved in this discussion, agreed on that, quality is customer satisfaction. For
example, panelist No.1 said;

“As per my perception, quality is a customer satisfaction. By the way it depends

on the customer requirement. The company should know the customer’s
requirements. Thus quality is exceeding customer’s expectation on the delivered
product.”
Panelist No. 4 also agreed with the above and he added that, customers are a core of
quality. He said;
“When we talk about quality customers come first. So, customer satisfaction is the
primary target of every construction company. For me, quality is customer
satisfaction.”
The perspective of others (12%) of the panelists and participants agreed quality as a
process control/elimination of defects, as panelist No. 3 said:

45
 “For me, quality is a process management.”
This idea was emphasized by one participant from the floor and he said that:
“Quality is working without defects by controlling the whole production process.”
However, other panelists and respondents (18%) have different opinions. For example,
panelist No.2 relates quality to his job and describe it with respect to time and budget.

“In my understanding quality is finishing the project within the allocated budget
and time.”
Therefore, most of the participants had some idea as it is common in the literature and
most quality gurus focus on a customer satisfaction. A view of few participants on quality
are focused on the process rather than the end result.

4.2.2. Quality Related Problems in their Experience

The purpose of this question is to confirm whether the panelists and participants have
faced a quality problem which may end in poor or good results and how they describe the
solution they take to correct the problem.

Technical Others
Problem 0%
24%

Design
Problem
76%

Figure 4. 2 Quality Related Problems

As shown in the Figure 4.2, the majority (76%) of the panelists and participants who
were involved in the discussion, listed a different quality related problems focused on the
designers problem. For example, panelist No.4 said;

46
 “There is a designer error; designers design with the material which is not
available in the market.”

In addition, the participants also add an idea which support the above one.One participant
said that;
“In the design phase architectural planning and structural plan do not correspond
to each other. This affects the construction always.”
The other (24%) panelists and participants focus on the technical error based on their
experience. For example, one participant said that:
“Material handling is a very big quality problem in every project site. This highly
affects the quality of the product.”
Panelist No. 3 also said that in his experience he faced a lot of technical quality related
problems, for instance the curved marble floor finish design and its market availability is
one of the big problem he faced recently.

Therefore, all participants had had problems related with quality. All of them focused on
the core elements which is the end product from the design and technical error of the
construction process. However, no one mentioned the soft skill which are related to
quality management issues.

4.2.3. Current Quality Management Practice of the Ethiopian Construction

Industry

The purpose of this question is to ask the panelists and participants about current quality
management practice of contractors in Ethiopian construction industry.

Somewhat Good
Good 0%
18%

Poor
82%

Figure 4. 3 Current Quality Management Practice of the Ethiopian Construction Industry

47
As shown in the Figure 4.3, the majority (82%) of the panelists and participants who
were involved in this discussion, expressed that the current quality management practice
of the Ethiopian construction industry is poor. For example, panelist No.3 said;

“I am confident to say that there is no quality management practice in the

Ethiopian construction industry.”
Panelist No. 4 also strengthened the above idea by saying that:
“I can also say that there is no quality management practice here in Ethiopia.”
On the other hand, (18%) of the panelists and participants, expressed that current quality
management practice of the Ethiopian construction industry is somewhat good. For
example, panelist No.2 said;

“There is no straight quality management practice. Once we tried to adopt

Balanced Scorecard (BSC) which has faded early. Now we are trying to adopt the
Kaizen philosophy as a continuous improvement.”
Panelist No. 4 also strengthen the above idea by saying that:
“the industry may not have a structured system but was following some quality
principles intentionally or unintentionally.”
Therefore, as we see from the discussion the current quality management practice of the
Ethiopian contractors is poor and it needs a serious attention in order to improve the
industry.

4.2.4. Familiarity with TQM Concept

The purpose of this question is to ask the panelists and participants how they are familiar
with the concepts of TQM.

Familiar Somehow
0% 12%

Never
88%
Figure 4. 4 Familiarity of TQM concept

48
As shown in the Figure 4.4, the majority (88%) of the panelists and participants who
were involved in the discussion, did not have any idea about the concepts of TQM before
this discussion. The other (12%) of panelists and participants had heard about the concept
of TQM but they did notimplement it. The one who had a little concept of TQM from his
studies, as panelist No. 3 said:

“I got the pdf file I received from my instructor about TQM in 2012 when I took a
master’s class. I got some idea from it.”
Therefore, TQM concept is new philosophy for the Ethiopian construction industry since
most of employees of contractors in the Ethiopian construction industry have no idea
about the concepts of TQM. However, all panelists and participants said that they got an
idea about the concept TQM from the discussion conducted. The main objective of the
discussion was to create TQM awareness among the employees in the construction
industry.

4.2.5. Evidence of Customer Satisfaction

The purpose of this question is to ask the panelists and participants whether there is
evidence to meeting customer requirement in their respective organization.

ISO
Certificate
12%

No Evidence Doing to
53% Delight
Customer
35%

Figure 4. 5 Evidence of Customer Satisfaction

As shown in Figure 4.5, the majority (53%) of the panelists and participants who were
involved in the discussion said that, they have no evidence which indicates that their

49
organization is capable of meeting their customers’ requirement. For example, one
participant said that;

“In my organization I didn’t see any evidence which is capable of meeting

customer requirement.”
One participant also strengthened the above case by saying that:
“I don’t remember such evidence which indicates fulfil to meeting customer
requirement.”
On the other hand, (35%) of the panelists and participants have some different evidences
which is indicate if of meeting customer requirement. They do different tasks to delight
their customer. For example, panelist No. 2 said that;

“We know which customers are very sensitive and their requirements. In our
company the major problem is time issue. And we do it to overcome
dissatisfaction and pleaseour customers in this year.”
Another participant was also strengthened the above idea by saying that:
“We decided to demolish and rearrange the rooms to make suitable for the new
equipment. So, this is an evidence that we do to meet the customer requirement.”
Other of the panelists and participants(12%) are said that the ISO certification is a good
evidence of achieving successful results in meeting customer requirements, as said by
panelist No. 3 said:

“With some contractors there is an evidence to capably meetcustomer

requirements. For instance, as I said before those contractors were certified ISO
9001.”
Therefore, according to the literatures reviewed customer satisfaction is the most critical
success factor of TQM. Excellent organizations comprehensively measure and achieve
their outstanding result with respect to their customers. Customer satisfaction gives a
competitive advantage for the company. However, from the discussion we understand
that most of the construction companies in Ethiopian have no evidence which indicates
their customer requirement/expectation. The discussion also showed that,customer
satisfaction can be measured by doing preventive and corrective actions to delight
customers. Also, having quality certification, like ISO 9001, is considered as an evidence
that a company is working to satisfy its customers’ need.

50
 4.2.6. Barriers to Continuous Improvement

The purpose of this question is to ask the panelists and participants toidentify important
factors, which in their opinion may be considered as hindrance to continuous
improvement.

Lack of
Commitment
17%

Lack of
Attitude Knowledge
Problem 18%
59%
Lack of
Research
6%

Figure 4. 6 Barriers to Continuous Improvement

As shown in the Figure 4.6, the majority (59%) of the panelists and participants in their
opinion there is an attitude problem which is a big barrier for continuous improvement in
construction companies. For example, panelist No. 3 said that;

“The major barrier is the attitude of the society. In the Ethiopian construction
industry, the major obstacle for every action is lack of attitude.”
On the other hand, (17%) and (18%),said lack of commitment and lack of knowledge are
perceived by some panelists and participants as a major barrier to continuous
improvement in the Ethiopian construction industry. For example, panelist No. 2 said
that;

“In my opinion lack of commitment and lack of knowledge are the most barrier
factor for the continuous improvement.”
Others (6%) of panelists and participants perceive that, lack of research in the Ethiopian
construction industry is the major barrier to the continuous improvement. For example,
panelist No. 4 said that;

51
 “I am focusing on research, like other industries for instance like agricultural
research center, the construction industry need to have its own research center.”
Therefore, the core issue that distinguishes the philosophy of TQM from other quality
system philosophies is a ‘continuous improvement’ strategies, meaning that the
improvement process in any of the companies’ activities never ends. From this
discussion, lack of commitment, lack of knowledge, lack of research and attitudinal
problems were extracted as a major barrier of continuous improvement.

4.2.7. Importance of TQM Implementation

The purpose of this question is to ask the panelists and participants to identify whether an
implementation of TQM in the Ethiopian construction industry is important or not.

The question was, is implementation of TQM important in our industry or not? All
panelists and participants said that ‘yes’ and they believe in the importance of TQM
implementation in the Ethiopian construction industry. For example, three of them said
that:

“Yes. We should implement it.”

“Yes, with no doubt.”
“Yes. It is important but it needs more experts with a good knowledge regarding
the subject.”
Since, the objective of thisresearch is to devise the methodology of TQM in the Ethiopian
construction;therefore, the emphasis is on the need for and the importance of TQM in the
construction industry. The result obtained from this discussion also support the stated
objective by giving an emphasis on the need and importance of TQM philosophy in the
Ethiopian construction industry. However, TQM in the Ethiopian construction companies
means a comprehensive change to each and every aspect of the construction business.
That being said, construction companies are reluctant to implement change. In the
discussion, all agreed on this some point and added that it will be a challenge for
implementing TQM.

4.2.8. Critical Success Factors (CSFs) of TQM

52
The purpose of this part is to discuss in different CSFs of TQM in order to havean idea
about TQM philosophy. In this discussion we could not cover the whole CSFs of TQM
which are identified from literatures for this research purpose because of time constraint.
However, we willhave discussed some CSFs which are selected by non-probability
sampling technique while the discussion was undertaken.

Top Management Commitment and Leadership

In this CSFs panelists and participants were asked to answer whether the top management
commitment is essential for quality program or not.

The question was, is management commitment essential for quality program? All
panelists and participants said‘yes’ and they believe that the top management is a very
essential driver in the TQM philosophy. For example, three of them said that:

“Yes. The employees in the organization will not perform with their full effort if
the management is not committed.”
“It is a very essential thing.”
“I think it is very important than for the others.”
Therefore, the resultfrom the discussion can strengthen the notion gained from literatures,
the commitment of top management towards quality has been considered as an important
factor.Several stated it as the most important one among the TQM factors and their
impact on various performance measures across countries.

Quality Culture
In this CSFs panelists and participants were asked to answer the status of quality culture
and culture change in the society particularly in construction sites.

The question was, how do you express our quality culture and culture change? All
panelists and participants were focusing on the attitude of the society and they said that
our society has a negative attitude and we have to change it. For example, three of them
said that:

“The main concern is the attitude of the society. The other is the effort it needs to
change even the politicians.”

53
 “The main problem of our society is an attitude problem. We should change our
attitudinal to implement a new philosophy.”
“How can we change the attitude of the society? What kind of attitude do we
have? This should be assessed deeply to get a good result. We should change this
negative attitude.”
Therefore, from the literatures, cultural change is the sum of all total beliefs, knowledge,
attitude of the mind and customs, to which people are exposed during their conditionings.
The result gained from the discussionwas focusing on the attitude part of the quality
culture. The attitude of the society should be changed for the successful implementation
of TQM.

Education and Training

In this CSFs panelists and participants were asked to answer the need of education and
training for all employees in the construction companies.The discussion gave an
emphasis on the training only because of time constraint.

The question was, is there a periodic training in your company? And what do you say
about the need of training?The majority (61%) of the panelists and participants on behalf
of their respective organization answered that, there is a training but it is not periodic and
not for all employees who work in the organization. For example, panelist No. 2 and one
participant said that;

“Yes. our company provides a training not for all employees rather for some
selected employees.”
“I take a training on different occasionsfor my job.”
The other (39%) of the panelists and participants on behalf of their respective
organizationssaid that, there is no training for all employees in their organizations. For
example, panelist No. 3 said that;

“I am confident to say there is no company which arranges training for its

employees.”
On the other hand, all panelists and participants perceive that a periodic training for all
employees is a very important matter for the success of the company. For example,
panelist No. 3 said that;

54
 “Training is a very important element in every aspect of the company’s success.”
Therefore, from literatures, companies that lead with quality management need to provide
at least five days training per year for each employee and also make a point that the
importance of education and training should be recognized by every quality expert.
However, the result of the discussion shows that training in the Ethiopian construction
companies is not properly organized and even then not for all employees. Though all
recognize the importance of training for all employees in the construction companies.

4.2.9 Summary

The just concluded part of the study has presented the results of the panel discussion,
conducted. The qualitative results demonstrated and reported the situation of the
employees and companies in the Ethiopian construction industry and identified the
concept of TQM in different perspectives. The purpose of conducting this panel
discussion is to assess the level of understanding of TQM in the Ethiopian construction
industry and also creating awareness of TQM for the panelists and participants.

The concept of quality is a well understood term within the employees, who were taking
part in the discussion.In their companies the majority understood quality as to be a
customer satisfaction. The current quality management practice of the Ethiopian
contractors is poor and it needs a serious attention in order to improve the industry. The
concept of TQM is almost unknown by the majority of employees among the Ethiopian
construction companies. Most of the construction companies in Ethiopian construction
industry have no evidence whether they meet their customer requirements/expectations.
Lack of commitment, lack of knowledge, lack of research and attitudinal problems were
extracted as a major barrier of continuous improvement. All agreed on the need for and
the importance of TQM implementation in the construction industry.

In general, the lack of understanding TQM within the construction company is a major
issue, and it needs a continuous training program for all employees within the company.
The questionnaire survey was conducted after this panel discussion while the respondents
have an idea about the concept of TQM.

55
 4.3. Results from Questionnaire (Quantitative Methods)

4.3.1 Survey Response Rate and Respondent Firms Profiles

4.3.1.1 Survey Response Rate

A total of twenty-three (23) questionnaires were distributed for all respondents which
have active public building projects in Bahir Dar City. The survey was conducted
between December 2017 to January 2018. Out of the distributed twenty-three, twenty-one
(21) volunteer professionals responded to the survey. The summarized information about
distribution and response rate of questionnaires are presented in the following table.

Table 4. 1 Distribution and response rate of questionnaires

Unit of Questionnaires Percentage Reliable Percentage

Analysis Distributed Returned Response
Contractor 23 21 91.3% 21 91.3%

4.3.1.2. Respondents’ Firms Profiles

The surveyed respondents and the firms profile are discussed in this section of the study.
The major variables discussed in an attempt to describe the profile of the respondents
including the respondent’s position in the firm, and educational rank of the respondents in
the construction industry. The major variables also discussed in an attempt to describe the
profile of the firm were the organization’s year of operation (experience) in the business,
and size of the firm in terms of the number of employees.

56
 EXPERIENCE OF THE COMPANY (YEARS)
up to 5
above 15
14%
19%

11 up to 15 6 up to 10
29% 38%

Figure 4. 7 Experience of the Company

Figure 4.1, summarizes how long the responding firm had been in the construction sector.
Out of the total respondents (n=21), the majority 8 (38%) indicate that they have been in
the business from 6 up to 10 years. However, the significant percentage 6 (29%) said that
they have been in the business from11 to 15 years. The remaining 4 (19%) of them said
they have been in the business for over 15 years and the rest have been in the business for
up to 5 years.

NUMBER OF EMPLOYEES
Up to 25 26 up to 50
0% 14%

51 up to 100
19%

Above 100
67%

Figure 4. 8 Size of Firms/Organizations

In Figure 4.2, the majority 14 (57%) of the surveyed construction firms manage above
100 employees, 4 (19%) specified that they have 51up to 100 employees, and 3 (14%)
reported that they have 26 up to 50 employees in their respective organization.

57
 Table 4. 2 Position of the respondent in the organization

Position in the firm Frequency (n=21) Percentage(%)

Supervisor 1 5
Project Manager 8 38
Construction Engineer 4 19
Site Engineer 3 14
Office Engineer 5 24
Total 21 100

Referring to Table 4.2, out of the total respondents (n=21), the majority (38%) were
project managers and (24%) were office engineers in the surveyed construction firms.The
rest were (5%) supervisors, (19%) construction engineers and(14%) site engineers in the
surveyed construction firms.

Table 4. 3 Educational rank of the respondents

Educational Rank Frequency (n=21) Percentage

Advanced Diploma 2 10
BSc 12 57
MSc 7 33

The Table above provides the educational background of the respondents in the surveyed
construction firms. The educational background of the majority (57%) of the surveyed
respondents were Bachler of Science (BSc). The rest were (33%) Master of Science
(MSc) and (10%) AdvancedDiploma in the surveyed construction firms.

4.3.2 Firm’s Quality Management Practices

This section of the study discusses the surveyed firm’s quality management practices.
The section discusses the general understanding of quality in the firms and about data
acquisition method to measure the performance of the operation of the firms. This section
also discusses to the priority given to some factors which are directly related to quality,
some measures or indicators for quality in the firms, and quality improvement programs
in the firms. The results, which are obtained in the survey are presented in the following
figures and tables.

4.3.2.1. Understanding of Quality in the Firms

58
One question was asked in this section to investigate the understanding of quality in the
surveyed construction firms. Some respondents were answered this question more than
one understanding, and the research was take all perceptions, which are respond from the
respondent firms, for the analysis of this question.

35% 32%
29%
30%

25% 21%
Respondents (%)

20%

15%

10% 7%
4% 4% 4%
5%

0%

Figure 4. 9 Understanding of Surveyed Firms in Quality

From Figure. 4.9, it is evident that the predominant understanding of quality in the
surveyed construction firms are customer satisfaction and an elimination of defects. The
survey found the majority 9 (31%) understand quality as a customer satisfaction and 8
(29%) of the surveyed construction firms understand quality as an elimination of defects.
The figure further shows that 6 (21%) of the respondents understand quality as a
competitive advantage.However, 2 (7%) respondents stated that increasing productivity
in their organization is understood as indication of quality. The rest(4%) of the
respondents understand quality as a tool to maximize profit, inspection and corrective
actions, and continuous improvement.

According to the majority of the respondents, their understandings of quality are

customer satisfaction and an elimination of defects. However, a significant percentage of
the respondents understand quality as a competitive advantage. From this, the

59
construction firms emphasize to place quality to delighting the customer and this helps
them to get another job by their good performance in the previous project.

4.3.2.2. Data Acquisition

In this section, there were six questions to answer the surveyed construction firm’s data
acquisition practice with respect to as measure of performance and customer focus. The
first question was about the collection of data to measure the performance of operations.

Table 4. 4 Response data collection to measure performance

Response Frequency (n=9) Percentage

Yes 16 76
No 5 24
Total 21 100

From Table 4.4, out of the total construction firms surveyed, the majority (76%) have
data collection mechanism to measure the performance of operations. The 24% of the
surveyed construction firms said that they do not have a data collection mechanism to
measure the performance of operation.

The other question that respondents were asked to answer was how they measure the
performance of operations. Accordingly, some respondents answered more than one item
as the measure of the performance in their respective organization and the analysis took
all responses in to account.

Measure Performance

37%
40%
35% 30%
30%
Respondents (%)

23%
25%
20%
15% 10%
10%
5% 60
0%
Fewer Customer Timely Profit Margin Increase
Compliants completion of the Productivity
projects
 Figure 4. 10 How anOrganization MeasuresitsPerformance

From Figure 4.10, it is evident that the majority (37%) of the surveyed respondents
measure their performance through the timely completion of projects. However, a
significant percentage (30%) of the surveyed respondents measure their performance by
increasing the productivity. 23% of the surveyed respondents measure performances
through profit margins while; 10% of the surveyed respondents measure their
performance through the fewer customer complaints.

The other question that respondents were asked was to specify what data acquisition
methodology do they follow with in their respective organization. All of the total
surveyed respondents representing 100% use progress report as a data acquisition
methodology. The other alternatives, which are database maintenance and employee
feedback forms, had no practice in the surveyed construction firms as a data acquisition
methodology.

Respondents were asked one other question as how to rate customer satisfaction in their
organization.
Table 4. 5 Response on the rate of customer satisfaction

Rate of Customer Satisfaction Frequency Percentage

Very Important 13 62
Important 6 29
Somewhat Important 2 9
Not Important 0 0
Total 21 100

From Table 4.5, the majority (62%) of the respondents rated customer satisfaction in their
organization as very important. However, a significant percentage (29%) of the
respondents rated customer satisfaction as important while (9%) of the respondents on
their view, customer satisfaction as somewhat important. None of the surveyed
respondents were rated customer satisfaction as not important.

61
One question that the respondents were also asked was to specify whether they do have a
system for gathering customer suggestions.
Table 4. 6 Response on gathering on customer suggestion

Response Frequency Percentage

Yes 10 48
No 11 52
Total 21 100
From Table 4.6, it can be observed that the majority (52%) of the surveyed construction
firms answered that they have no a system for gathering customer suggestion. The other
48% of the respondents were answered that, they have a system for gathering customer
suggestions.

The last question, which is related to the previous question, was how to specify their
gathering system, if have. As we see from Table 4.6, 10 respondents representing (48%)
have the system for gathering the customer suggestions.

Table 4. 7 Response on the Customer Suggestion

Response Frequency Percentage

Questionnaire surveys 0 0
Customer feedback forms 5 50
Complaint forms 2 20
Three party Meeting 2 20
Interview 1 10
Total 10 100

From Table 4.7, out of the total 10 respondents who said they have the system for
gathering customer’s suggestion.The majority (50%) use the customer feedback forms to
gather customer suggestion. Three respondents specified their own system of gathering
the customer suggestion, which were not pre-specified in the questionnaire, two
respondents use three party meeting (meeting together with contractor, consultant and
client) and others specify that they use an interview to gather customer’s suggestion. 20%
of the surveyed firms said that they use the complaint forms to gather the customers’
suggestion. None of the surveyed construction firms use the questionnaire survey to
gather the customer suggestions.

Summary

62
This section has presented the data acquisition practice of the surveyed construction
firms. The result demonstrated that most firms in the construction industry have a data
collection system to measure their performance. The firms measure their performance
through different parameters but the majority measure their performance through timely
completion of the project, and all firms use their progress report as a method of data
acquisition. Customer satisfaction was ranked as a very important thing by most
construction firms in the industry. Above half of the construction firms did not gather
suggestionsfrom customers. From those who are gathering the customer’s suggestion,
half of the construction firm use the customer feedback forms to gather customer
suggestion.

4.3.2.3. Priority Given to Some Factors in the Organization

This section is discussingthe priority given to some factors with in the surveyed
construction firms in the construction industry. In every organization priority is given to
certain areas or factors relative to others. The respondents in the surveyed construction
firms were ranked the factors, which were listed in the questionnaire, from low priority
(1) to high priority (3), and the result are presented in table below.

Table 4. 8 Priority given to some factors in the organization

Statements Mean Standard Chi- Chi-

Deviation Square(χ ) Square(χ2)
2

Obtained Critical
Meeting project cost budget 2.48 0.602 a 5.99
8.000
Meeting project time/deadline 2.43 0.676 a 5.99
6.000
Satisfying Clients 2.43 0.676 a 5.99
6.000
Achieving success in bid 2.38 0.740 a 5.99
4.571
Having sincere relationship with client
2.24 0.625 7.143a 5.99
representative
Meeting quality standards 2.05 0.805 0.268a 5.99
Meeting health and safety standards 1.48 0.680 8.857a 5.99
a
Statistically significance in (0.05) and the degree of freedom is (2).

From Table 4.8, meeting project cost budget is a highly prioritized factor in the surveyed
construction firms with mean of 2.48 and it is statistically significant at 5% with a degree
of freedom of 2.The most important factors and secondly prioritized factors in the

63
surveyed construction firms are meeting of project time/deadline and satisfying clients
with a mean of 2.43 and it is statistically significant at 5% with degree of freedom of 2.
Meeting quality standards, which is the most important factor than others, is the least
prioritized factor and which is ranked in the sixth level with the mean of 2.05 and there
was no statistical significant difference among the responses for this statement. The
finding from the survey therefore, shows that the quality management practice is not
consistent, with the US Army Corps of Engineers (2004) definitions of quality
management in construction emphasizes on timely delivery of projects and meeting
quality standards. In between, achieving success in bid and having sincere relationship
with clients’ representatives ranked fourth and fifth respectively. The least prioritized
factor as indicated by the respondents in the construction industry is meeting health and
safety standards.

4.3.2.4. Performance Indicators/Measures for Quality in the Organization

This section has been discussed asthe best performance indicators or measures for quality
with in the surveyed construction firms in the construction industry. The respondents in
the surveyed construction firms ranked the factors, which were listed in the questionnaire,
from least (1) to highest (5), and the result is presented in Table 4.9 below.

Table 4. 9 Performance indicators for quality in the organization

Statements Mean Standard Chi- Chi-

Deviation Square(χ ) Square(χ2)
2

Obtained Critical
Getting more jobs because of prior job 3.86 0.854 b 7.82
6.857
Overall client/customer satisfaction 3.67 0.856 b 7.82
15.381
Management commitment to quality 3.48 1.250 a 9.49
4.000
Having skilled work force 3.38 1.024 a 9.49
17.810
Meet general construction standards 3.29 1.146 a 9.49
6.857
Training and education of team
2.81 1.123 6.381a 9.49
members on quality
Length of warranty (in years) the
company can give on their work
2.52 1.123 11.143a 9.49
(probably beyond the defect liability
period)
Adherence to certified quality
2.24 1.300 8.762a 9.49
programs such as ISO 9001

64
 Winning quality award 2.05 1.024 5.476b 7.82
a
Statistically significance in (0.05) and the degree of freedom is (4).
b
Statistically significance in (0.05) and the degree of freedom is (3).

From Table 4.9, getting more jobs because of the prior good job is the best
measure/indicator of quality in the surveyed construction firms with a mean of 3.86 and
there was no statistical significant difference among the responses for this statement.This
indicator of quality subsequently followed by overall client/customer satisfaction,
management commitment to quality, having skilled work force, meeting general
construction standards and training and education of team members on quality are ranked
2nd, 3rd, 4th, 5th and 6th; respectively. However, the least three ranked measures/indicators
of quality in the surveyed construction firms were length of warranty (in years) the
company can give on their work (probably beyond the defect liability period), Adherence
to certified quality programs such as ISO 9001 and winning quality awards were ranked
7th, 8th, and 9th; respectively.

4.3.2.5. Quality Improvement Program in the Organization

This section of the study assesses the quality improvement programs of the surveyed
construction firms. In this section there were five questions asked to answer the surveyed
construction firms about their quality improvement programs. The first question was
about whether they have a quality improvement program in their organization.

Table 4. 10 Response on quality improvement programs

Response Frequency Percentage

Yes 13 62
No 8 38
Total 21 100

From Table 4.10, out of the total construction firms surveyed, the majority 62% had a
quality improvement program in their operations. The 38% of the surveyed construction
firms said that they do not have a quality improvement program in their operation.

The other question that respondents were asked to know, those who have a quality
improvement program,if sowhat kind of quality improvement program they use in their

65
respective organizations. Accordingly, one respondentanswereddifferent quality
improvement program that his organization used which was not pre-specified in the
questionnaire.

Table 4. 11 Response on type of quality improvement programs

Response Frequency Percentage

Total quality management 0 0
Quality Assurance 1 8
Quality Control 11 84
Kaizen 1 8
Total 13 100

From Table 4.11, it is evident that the majority (84%) of the surveyed respondents
answered that quality control as their quality improvement program. However, two of the
respondents used different quality improvement program, the one used a quality
assurance and the used a Kaizen philosophy.Total quality management is not totally
practiced in the surveyed construction firms as part of a quality improvement program.

One question that respondents, who have a quality improvement program,was also asked
to specify whether their quality improvement plan do have a full support of top
management.

Table 4. 12 Response on top management support in quality improvement plan

Response Frequency Percentage

Yes 3 23
No 10 77
Total 13 100

From Table 4.12, out of the total construction firms surveyed, the majority (77%) have a
quality improvement planbut have no top management support in their operations. The
23% of the surveyed construction firms said that,the top management fully support the
quality improvement plan in their operations.

One question that the respondents, those who have a quality improvement program, was
also asked was that, how can their quality improvement program be described.

66
 Table 4. 13 Response on description of quality improvement program

Response Frequency Percentage

No formal programs 9 70
Motivational program which is periodic 2 15
short-range solution
A formal program, which is underway, 2 15
with widespread employee awareness
Total 13 100

From Table 4.13, it is evident that the majority (70%) of the surveyed respondents
described that, their quality improvement program has no formal program. However,
each (15%) of the surveyed construction firms described their quality improvement
program as a motivational program which is a periodic short-range solution.

The last question which was raised to the respondents, those who have a quality
improvement program, was to specify the major objective of their quality improvement
program. Some respondents gave more than one answer as the major objective of their
quality improvement program and the analysis took all responses in to account.

Major objectives of quality program

60% 53%

50%
Respondents (%)

40%

30% 20% 20%

20%
7%
10% 0%
0%
Cost reduction Customer Increase Compliance Involvement of
satisfaction Productivity with statutory, employees in the
enviromental quality building
and safety effort
requirement

Figure 4. 11 Response on Major Objective of Quality Program in the Organization

From Figure 4.11, it is evident that the majority (53%) of the surveyed respondents
answered that customer satisfaction is their major objective of quality improvement

67
program. However, each (20%) of the surveyed respondents have a major objective of
cost reduction and increase productivity in their quality improvement. One respondent
from the surveyed firms answer that compliance with statutory, environmental and safety
requirements is their major objective of quality improvement program. No firm answered
involvement of employees in the quality building effort as a major objective of their
quality improvement program.

Summary
This section has presented the quality improvement program of the surveyed construction
firms, which was conducted in the period of the study. The result demonstrated that
almost half firms in the construction industry have a quality improvement program and
the quality control is the dominant program they used. The result shows that in most
firms’ top management is not supportiveof quality improvement program and they said
that, they do not have a formal program. The major objective of their quality
improvement program is towards the customer satisfaction.

4.3.2.6. Quality Auditing Practice in the Organization

This section of the study assesses the quality audit practice of the surveyed construction
firms. In this section there were five yes/no questions asked to be answered by the
surveyed construction firms about their quality audit practices. The first question was
about whether they have a well-established internal quality audit procedure in their
organization.

Table 4. 14 Response on internal quality audit procedure

Response Frequency Percentage

Yes 5 24
No 16 76
Total 21 100

From Table 4.14, out of the total construction firms surveyed, the majority (76%) have no
a well-established internal quality audit in their operations. 24% of the surveyed

68
construction firms said that they havea well-established internal quality audit in their
operations.

One question that the respondents were also asked to answer was whether they check for
design conformance to standards and regulations or not.
Table 4. 15 Response on check for design conformance to standards and regulations

Response Frequency Percentage

Yes 11 52
No 10 48
Total 21 100

From Table 4.15, out of the total construction firms surveyed, above half of them do
check for design conformance to standards and regulations. 48% of the surveyed
construction firms said that they do not check for design conformance to standards and
regulations.

One question that the respondents were also asked to answer was whether they carry out
project review after closeout of every project or not.

Table 4. 16 Response on carry out project review after closeout of every project

Response Frequency Percentage

Yes 12 57
No 9 43
Total 21 100

From Table 4.16, out of the total construction firms surveyed, above half of them carry
out project review after closeout of every project. 43% of the surveyed construction firms
said that they do not carry out project review after closeout of every project.

One question that the respondents were also asked to answer was whether they inspect
and control quality of subcontractor’s work to ensure compliance with quality
requirement or not.

Table 4. 17 . Response on inspect and control quality of subcontractor’s work to ensure compliance
with quality requirement

Response Frequency Percentage

Yes 18 86
No 3 14
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Total 21 100

From Table 4.17, out of the total construction firms surveyed, the majority (86%) inspect
and control quality of subcontractor’s work to ensure compliance with quality
requirement. 14% of the surveyed construction firms said that they do not inspect and
control quality of subcontractor’s work to ensure compliance with quality requirement.

The last question that the respondents were also asked to answer was whether they have a
quality department or employees specializing in quality management or not.

Table 4. 18 Response on quality department or employees specializing in quality management

Response Frequency Percentage

Yes 4 19
No 17 81
Total 21 100

From Table 4.18, out of the total construction firms surveyed, the majority (81%) have no
a quality department or employee specializing in quality management. 19% of the
surveyed construction firms said that they do have.

Summary
This section has presented the quality auditing practice of the surveyed construction
firms, which was conducted in the period of the study. The result demonstrated that the
majority firms in the construction industry have nointernal quality audit procedure and
the quality department or employees specializing in quality management.

4.3.3. Critical success factors (CSF) for TQM in the Ethiopian

Construction Industry

This part includes three single item CSFs which are Design Quality Management,
Education and Training and Empowerment and Involvement, and eight multi-item scale
CSF which are Top Management Commitment, Quality Culture, Policy and Strategy,
Process Management, Supplier Quality Management, Human Resource Management,
Information and Analysis and Customer Satisfaction.

70
To test the above variables of the questionnaire, the responses are rated on five Likert
scale points. Scale (1) is not significant and Scale (5) is exceedingly significant. The draft
of the questionnaire was presented to the expertise in the academic field while the
discussion is conducted, to assess the clarity and comprehensiveness of each statement
and how it relates to the elements that need to be measured.

4.3.3.1 Reliability

Reliability refers the degree to which a test consistently measures whatever it measures
including stability, internal consistency and equivalence (Kothari, 2004). Reliability is an
important concept in research because it can be used to reduce errors during the analysis
of responses to questionnaires. The stability of the instrument refers to the extent which
similar results are obtained on two separate occasions test-retest procedure (Kothari,
2004). For the purpose of this survey, the test-retest reliability technique was performed
to evaluate the stability of the first three single item questions in the whole CSFs across
the time because the internal consistency is not used for the single item questions. To
meet the time period condition, the test and retest administration were separated with a
three weeks’ time interval ranging from 20 to 25 days. So, the reliability analysis was
performed for the items of each of the first three single item CSFs using test-retest
method by determining the Pearson’s Correlation Coefficient, r.

Table 4. 19 Stability of Single Item CSFs

CSFs Pearson’s Correlation p-value

Coefficient, r
Design Quality Management 0.843 0.002
Education and Training 0.854 0.002
Empowerment and Involvement 0.802 0.005

As shown in Table 4.19, the values of Pearson’s Correlation Coefficients, r are more than
0.8 and p-values are less than 0.01 and this indicates the reliability of the scale used. If
the p-value is less than 0.05, and the Pearson correlation coefficient is above 0.7, then
researchers have evidence of test-retest reliability. It is clear that a high reliability
coefficient supports the validity of the questionnaires.

71
The other eight CSFs are a multi-item scale measurements and have different statements
for each element. For such kind of multi-item scales internal consistency is used for the
reliability test. It can also be calculated for any subset of the items under scale. The
internal consistency of the set of measurement items refers to the degree to which items
in the set are the same (Kumar R. , 2011). It can be determined using a reliability
coefficient such as Cronbach’s Alpha. So, reliability analysis was performed for the items
of each of the eight CSFs/Scale using internal consistency method by determining the
Cronbach’s Alpha.

Table 4. 20 Internal Consistency of Multi-Item CSFs

CSFs Number of Cronbach’s Alpha

Items Coefficient
Top Management Commitment and Leadership 7 0.874
Quality Culture 5 0.750
Policy and Strategy 7 0.778
Process Management 6 0.774
Supplier Quality Management 7 0.890
Human Resource Management 5 0.820
Information and analysis 6 0.864
Customer Satisfaction 7 0.869

The minimum advisable level of Alpha is 0.7 for new instrument (Nunnally, 1978 as
cited in Imbeah, 2012)As indicated in Table 4.20, reliability coefficient ranges from 0.75
to 0.89 which is greater than the recommended value of 0.7.

The above two analyses indicate that the scales or CSFs were reliable. Consequently, the
instrument developed for measuring CSFs for quality management was judged to be
reliable.

4.3.3.2. Results from Chi-Square Statistical Test

Statistical analysis was carried out according to that stated in the research methodology in
chapter 3.Karl Pearson in 1900 attributed a Chi-Square and recently it is widely used as a
means of statistical analysis. Chi-Square statistical test is used to test the validity of the

72
findings that are expected from the statistical population for comparing the results
obtained from the sample taken for the study(Kothari, 2004). The results of the
descriptive statistics (Mean and Standard Deviation) and inferential Statistics (Chi-
Square) which is obtained in the survey are tabulated as in the following.

If the results indicate that the value of the Chi-Square is more than the critical value of
Chi-Square at 5% probability level, then there is statistically significant difference among
the responses to the mean value for that statement. If the results indicate that the value of
the Chi-Square is less than the critical value of Chi-Square at 5% probability level, then
there is no statistically significant difference among the responses to the mean value for
that statement.

Single-Item CSFs
The three CSFs, which are design quality management, education and training and
empowerment and involvement, werediscussedin the literature review and they are single
item scales for the questionnaire survey for the size of the questionnaire is large.

Table 4. 21 Result of Statistical Test for Single Item CSFs

CSFs Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Education and Training 3.62 0.865 a 7.82
13.095
Design Quality Management 3.19 0.750 6.238a 7.82
Empowerment and Involvement 2.71 0.717 b 5.99
3.249
a
The statistical significance level is (0.05) and the degree of freedom is (3).
b
The statistical significance level is (0.05) and the degree of freedom is (2).

The questionnaire results for those the single item CSFs which are in Table 4.21
indicated the following:

Design Quality management, Education and Training and Empowerment and

Involvementare an essential part of a quality system. The mean value for the Education
and Training was (3.62) which is within the range of very significant and it was
statistically significant at 5% with degree of freedom of 3. The mean value for Design
Quality Management and Empowerment and Involvement is3.19 and 2.71 respectively

73
and are within the range of moderately significant and these have not statistically
significant difference among the responses for those two CSFs.

The results obtained from the surveyed construction firms indicated that those three CSFs
are significant CSFs in the quality management of the Ethiopian construction industry.
Therefore, it may be concluded that these three CSFs will have a positive impact on the
implementation of the TQM philosophy in the Ethiopian Construction industry.

Multi-Item CSFs
The eight CSFs are top management commitment and leadership, quality culture, policy
and strategy, process management, supplier quality management, human resource
management, information and analysis and customer satisfaction were discussed in the
literature review; and they were multi-item scales. The statistical test results are presented
the following Table.

Top Management Commitment and Leadership

This CSFs has seven statements based on the main principles discussed in the literature
review and listed in the next table.

Table 4. 22 Result of Statistical Test for Top Management Commitment and Leadership

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Attachment of Importance to quality
by top management in relation to cost 4.00 1.140 11.143a 9.49
and schedule objectives
Top management supporting long-
3.95 1.024 17.810a 9.49
term quality improvement process
Management establishing clear and
consistent communication of mission,
vision and plan statements defining 3.81 0.928 5.095b 7.82
quality values, expectations and focus
Reviewing quality issues in the top
3.76 1.044 1.667b 7.82
management meetings
Management providing policies for
promoting customers satisfaction 3.62 0.921 20.667a 9.49

74
 Management actively leading and
directing quality management,
programs assuming responsibility for
3.57 0.870 9.268b 7.82
evaluating and improving quality
management system at pre-defined
intervals
Communication of management
policies & plans to employee 3.52 1.078 7.333a 9.49
a
The statistical significance level is (0.05) and the degree of freedom is (4).
b
The statistical significance level is (0.05) and the degree of freedom is (3).

The questionnaire results for the top management commitment and leadership statements
which are tabulated in Table 4.22 indicate the following:

Attachment of importance to quality by top management in relation to cost and schedule

objectives, is the evidence of a good level of top management commitment and
leadership.The mean is 4.00which is located within the range of very significant response
andit is statistically significant at 5% with a degree of freedom of4.It has the highest
mean among the statements of top management commitment and leadership. Whereas
communication of management policies & plans to employee scored the least mean
of3.52which is also within the range of very significant response and there was no
statistically significant difference among the responses for this statement. Thosein
between, statements are all located within the range of very significant response.

The survey tried to cover the main items related to the top management commitment and
leadership concepts. The results obtained from this study are indicated in Table 4.22. The
overall average mean obtained for the statements is 3.75 and this average is also within
the range which corresponds to very significant. The results obtained alsoindicate that
most of statements relating to top management commitment and leadership are well
understood. From the literatures, we can also see that top management commitment and
leadership is a very common CSFs for most of TQM frameworks. Therefore, it can be
concluded that top management commitment and leadership will have a positive impact
in the implementation of TQM philosophy in the Ethiopian construction industry.

Quality Culture

75
The quality culture has five statements based on the main ideas discussed in the literature
review and are listed in the following table.

Table 4. 23 Result of Statistical Test for Quality Culture

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Maintain an awareness of quality as a
4.24 0.700 3.714a 5.99
key culture issue
Recognize and reward the behaviors
that tend nurture and maintain quality 3.81 0.873 8.905b 7.82
culture
Considered quality culture as a
mediating between TQM practice and 3.81 0.873 5.476b 7.82
Competitiveness
Empower employees and encourage
3.33 1.111 9.714c 9.49
self-development and self-initiative
Avoid a barrier company’s culture
2.67 0.966 3.952b 7.82
diffuse Nationally
a
The statistical significance level is (0.05) and the degree of freedom is (2).
b
The statistical significance level is (0.05) and the degree of freedom is (3).
c
The statistical significance level is (0.05) and the degree of freedom is (4).

The questionnaire results for the quality culture statements which are tabulated in Table
4.23 indicated the following:

According to literatures, failure of the TQM is attributed to a luck of developing and

sustaining a quality oriented culture and mismatch of organizational culture (Metri,
2005). Maintain an awareness of quality as a key cultural issue has a mean of 4.24which
is the highest mean value among the statements of quality culture. This statement is
within the range of very significant response and there was no statistically significant
difference among the responses on this statement. Avoid a barrier company’s culture
diffuse nationally has the least mean of 2.67 which is within the range of moderately

76
significant response and there was no statistically significant difference among the
responses for this statement. In between, other statements are within the range of
moderately and very significant response. Recognize and reward the behaviors that tend
nurture and maintain quality culture and Empower employees and encourage self-
development and self-initiative are statistically significant at (5%) with degree of
freedom of (3) and (4) respectively.

The survey was also have tried to cover the main ideas related to the quality and
organizational culture concepts. The results obtained regarding this study are indicated in
Table 4.23. The overall average mean obtained for the statements is 3.57 and this average
is within the range corresponding to very significant. The obtained result indicates that
most of the statements relating to quality culture are well understood. Quality culture,
CSF, is not occurring in most TQM framework. However, there is evidence from
literatures on the culture and success of quality initiatives. Therefore, it can be concluded
that quality culture will have a positive impact in the implementation of TQM philosophy
in the Ethiopian construction industry.

Policy and Strategy

The policy and strategy has seven statements based on the main ideas discussed in the
literature review and as listed in the following table.

The questionnaire results for the policy and strategy statements which are tabulated in
Table 4.24 indicate the following:
Table 4. 24 Result of Statistical Test for Policy and Strategy

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Evaluation of results by comparing
them to planned results to make 3.95 0.921 7.381a 7.82
improvements
Development and implementation of
strategies and plans based on data
3.90 0.768 1.143b 5.99
concerning customers' requirements
and firm's capability
The concept of total quality is reflected
in the company's values, vision, and 3.71 1.231 15.905c 9.49
mission

77
 Comprehensiveness of quality
improvement plan within the 3.67 0.796 8.524a 7.82
organization
Management Communicating its
3.67 0.966 3.952a 7.82
strategy and objectives to all staff
Management involving the employees
3.57 1.028 2.048a 7.82
in the setting of its objectives and plans
Company policy and strategy can be
3.43 0.811 8.905a 7.82
modified according to business results
a
The statistical significance level is (0.05) and the degree of freedom is (3).
b
The statistical significance level is (0.05) and the degree of freedom is (2).
c
The statistical significance level is (0.05) and the degree of freedom is (4).

According to literatures, the development of policy and strategy requires planning

activities and setting of objectives and targets (Oakland, 2006). Since the company has
planning activities, the company needs to compare its plan to the executed results. The
survey also makes this idea in the first place. Evaluation of results by comparing them to
planned results to make improvementshas a mean of 3.95 which is the highest mean
value among the statements of policy and strategy. This statement is located in the range
of very significant response and there was no statistically significant difference among
the responses for this statement. Companies can modify their policy and strategy based
on their business results, by detail review of the major stakeholders’ needs, the
performance of the competitors and the market or the industry sector conditions to form
the basis of top level goals (Oakland, 2006). However, in the survey company policy and
strategy can be modified according to business results has a least mean of 3.43 which is
located within the range of moderately significant response. It is statistically significant at
(5%) with degree of freedom of (3). In between, all statements are located within the
range of very significant response.

The survey has also tried to cover the main ideas related to policy and strategy concepts.
The results obtained in this study are indicated in Table 4.24. The overall average mean
obtained for the statements is 3.7 and this average is located within the range
corresponding to very significant. The obtained result indicates that most of the
statements relating to policy and strategy are well understood. Policy and strategy, CSF,
is commonly occur in most quality award TQM frameworks. Therefore, it can be

78
concluded that policy and strategy will has a positive impact in the implementation of
TQM philosophy in the Ethiopian construction industry.

Process Management
The process management has six statements based on the main ideas discussed in the
literature review as listed in the following table.
Table 4. 25 Result of Statistical Test for Process Management

Statements Mean Standard Chi- Chi-

Deviation Square(χ ) Square(χ2)
2

Obtained Critical
Inspection and test plans including
checklists on completion of the
4.05 0.865 14.238b 7.82
construction project or a pre-
determined stage of the work.
A system to ensure clarity, uniformity
and conciseness of the drawing and 3.95 1.161 11.619a 9.49
specifications.
Clarity of work or process instruction
given to employees and site
3.95 1.161 5.095b 7.82
staff(includes both subcontractor
employees & project staff)
The company should focusing on the
3.90 0.831 7.765b 7.82
processes more than the end result
Process flow chart and inspection and
test plan for activities that directly 3.86 1.153 9.238a 9.49
affect quality
The company process performance is
measured, and customer feedback 3.52 1.030 1.286b 7.82
considered.
a
The statistical significance level is (0.05) and the degree of freedom is (4).
b
The statistical significance level is (0.05) and the degree of freedom is (3).

The questionnaire results for the process management statements which are shown in
Table 4.25 indicate the following:

Inspection and test plans including checklists on completion of construction project or a

pre-determined stage of the work, is the evidence of the good level of process
management. The mean is 4.05 which is located within the range of very significant
response and it is statistically significant at 5% with degree of freedom of 3. It has the

79
highest mean among the statements of process management. Whereas,the company
process performance is measured, and customer feedback considered has the least mean
of 3.52 which is also located within the range of very significant response and there was
no statistically significant difference among the responses for this statement. In between,
all statements are located within the range of very significant response.

The survey tried to cover the main ideas related to the process management concepts. The
results obtained in this study are indicated in Table 4.25. The overall mean average
obtained for the statements is 3.87 and this average is located within the range
corresponding to very significant. The results obtained from the study indicates that most
of statements relating to process management are well understood. In the literature, we
can also see that process management is a very common CSFs for most of TQM
frameworks. Therefore, it can be concluded that process management will has a positive
impact in the implementation of TQM philosophy in Ethiopian construction industry.

Supplier Quality Management

The supplier quality management has seven statements based on the main ideas discussed
in the literature review and listed in the following table.

The questionnaire results for the supplier quality management statements which are
tabulated in Table 4.26 indicated the following:
According to literatures, supplier quality is an important dimension of quality
management as defective incoming materials and parts lead to process and product
quality problem (Imbeah, 2012). Most research identified good supplier relationship as a
necessity of maintaining competitive advantage which leads to quality supplier of
products and services.

In the survey, reliance on reasonably few dependable suppliers who are evaluated and
selected based on their capability and commitment to product and service quality, and
value for money also got the highest mean of 3.9 which is located within the range of
very significant response and it is statistically significant at 5% with degree of freedom of
4. Whereas providing education (technical assistance) of suppliers by the organization
has the least mean of 3.10 which is also located within the range of moderately
significant response and there was no statistically significant difference among the

80
responses for this statement. In between one statement, which is offering closer and long
term working relationship to suppliers, is located within the range of moderately
significant response. The other statements are located in the range of very significant
response.

Table 4. 26 Result of Statistical Test for Supplier Quality Management

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Reliance on reasonably few
dependable suppliers who are
evaluated and selected based on their
3.90 1.044 14.000a 9.49
capability and commitment to product
and service quality, and value for
money
Providing clear specification to
3.90 1.044 14.000a 7.82
suppliers
Suppliers having programs to assure
3.57 1.076 0.524b 7.82
quality for products/services
Management encouraging the usage of
few suppliers, emphasizing quality 3.57 1.028 2.048b 7.82
rather than price and schedule
Purchasing department assuming
responsibility for the quality of 3.52 1.078 11.143a 9.49
incoming product/services
Offering closer and long term working
3.19 0.928 12.571a 9.49
relationship to suppliers
Providing education (technical
assistance) of suppliers by the 3.10 1.179 4.476a 9.49
organization
a
The statistical significance level is (0.05) and the degree of freedom is (4).
b
The statistical significance level is (0.05) and the degree of freedom is (3).

The survey was tried to cover the main ideas related to the supplier quality management
concepts. The results obtained in this study are indicated in Table 4.26. The overall
average mean obtained for the statements is 3.53 and this average is located within the
range corresponding to very significant. The results obtained from the study indicates that
most of statements relating to supplier quality management are well understood.In

81
construction, materials are the major sources of quality problems and affect owner
satisfaction. Instead relying on tools such as acceptance sampling to establish the quality
of incoming materials and component parts, it is preferable for contractors to purchase
from a more limited number of qualified or certified suppliers (Metri, 2005).Therefore, it
can be concluded that supplier quality management will has a positive impact in the
implementation of TQM philosophy in Ethiopian construction industry.

Human Resource Management

The human resource management has five statements based on the main ideas discussed
in the literature review and as listed in the following table.

Table 4. 27 Result of Statistical Test for Human Resource Management

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Training of management and
employees in quality principles, tools 3.95 0.973 3.571b 7.82
and techniques
Staff feeling of belonging to work and
3.62 0.805 10.429b 7.82
improve the working environment
Training organized for employees in
problem identification and solving
3.62 1.244 8.143b 7.82
skill, quality improvement skill,
teamwork and other technical skills
Organization should have employees
with organizational commitment and 3.57 1.076 7.810a 9.49
job involvement
Involve employees in the decision-
3.52 1.030 10.190a 9.49
making on essential part of company
a
The statistical significance level is (0.05) and the degree of freedom is (4).
b
The statistical significance level is (0.05) and the degree of freedom is (3).

The questionnaire results for the human resource management statements which are
tabulated in Table 4.27 indicated the following:
Training of management and employees in quality principles, tools and techniques, is the
evidence of the good level of human resource management. The mean was 3.95 which is
located within the range of very significant response and there was no statistically
significant difference among the responses for this statement. It has the highest mean

82
 among the statements of process management. Whereas involve employees in the
decision-making on essential part of company has the least mean of 3.52 which is also
located within the range of very significant response and it is statistically significant at
5% with degree of freedom of 4. In between, all statements are located within the range
of very significant response.

The survey was tried to cover the main ideas related to the human resource management
concepts. The results obtained in this study are indicated in table 4.27. The overall
average mean obtained for the statements is 3.65 and this average is located within the
range corresponding to very significant. The results obtained from the study indicates that
most of statements relating to human quality management are well understood.Therefore,
it can be concluded that human resource management will has a positive impact in the
implementation of TQM philosophy in Ethiopian construction industry.

Information and Analysis

The information and analysis has six statements based on the main ideas discussed in the
literature review and listed in the following table.
Table 4. 28 Result of Statistical Test for Information and Analysis

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Review of drawings and specification prior
3.86 1.108 12.714b 7.82
to authorization for construction works
Documentation of project related
3.86 1.108 8.762a 9.49
documents (Hard & soft copy)
Documenting procedure for implementing
3.62 1.161 11.619a 9.49
corrective and preventive actions
Continual use of internal or external audits
to ensure delivery of quality products and 3.52 1.030 1.286b 7.82
services
Document procedures for reviewing
3.48 0.814 8.143b 7.82
disposition of non-conforming products
Establishing internal quality audit 3.19 1.123 6.381a 9.49
a
The statistical significance level is (0.05) and the degree of freedom is (4).
b
The statistical significance level is (0.05)) and the degree of freedom is (3).

83
The questionnaire results for the information and analysis statements which are tabulated
in Table 4.28 indicated the following:
According to the literature, documentations and control of document is an important
element which facilitate in the review process, assessment and attainment of quality
management in a firm. In the survey,documentation of project related documents (Hard &
soft copy) also got the highest mean of 3.86which is located within the range of very
significant response and there was no statistically significant difference among the
responses for this statement.Review of drawings and specification prior to authorization
for construction works has a highest mean which equal to the former one and it is
statistically significant at 5%with degree of freedom of 3. Whereas Establishing internal
quality audit has the least mean of 3.19 which is also located within the range of
moderately significant response and there was no statistically significant difference
among the responses for this statement. In between one statement, which is document
procedures for reviewing disposition of non-conforming products, is located within the
range of moderately significant response. The other statements are located in the range of
very significant response.

The survey was tried to cover the main ideas related to the information and analysis
concepts. The results obtained in this study are indicated in table 4.28. The overall
average mean obtained for the statements is 3.58 and this average is located within the
range corresponding to very significant. The results obtained from the study indicates that
most of statements relating to information and analysis are well understood.Therefore, it
can be concluded that information and analysis will has a positive impact in the
implementation of TQM philosophy in Ethiopian construction industry.

Customer Satisfaction
The information and analysis has six statements based on the main ideas discussed in the
literature review and listed in the following table.

The questionnaire results for the customer satisfaction statements which are tabulated in
Table 4.29 indicated the following:
According to Metri (2005), without customer focus, the TQM program will lack the
foundations on which to build further. In the survey,Customer requirements are used as

84
the basis of quality also got the highest mean of 4.19which is located within the range of
very significant response and it is statistically significant at 5% with degree of freedom of
3. Whereas employees knowing which attributes of the process in the organization's
customers value has the least mean of 3.71 which is also located within the range of very
significant response and there was no statistically significant difference among the
responses for this statement. In between, all statements are located within the range of
very significant response.

Table 4. 29 Result of Statistical Test for Customer Satisfaction

Statements Mean Standard Chi- Chi-

Deviation Square(χ2) Square(χ2)
Obtained Critical
Customer requirements are used as the
4.19 0.814 11.190a 7.82
basis of quality
Preventive and corrective actions
4.00 0.837 0.000b 5.99
undertaken to delight customers
Encouraging employees to satisfy
3.95 0.865 6.238a 7.82
customers
Follow-ups with customer or client on
products/service and transactions to
3.90 0.831 15.762a 7.82
receive prompt and actionable
feedback
The use of customer surveys and
feedback process, and tracking of other
3.90 0.889 5.095a 7.82
key measures to assess customer
satisfaction.
Responding effectively to
clients'/customers’' enquires and 3.81 0.873 8.905a 7.82
complaints
Employees knowing which attributes
of the process in the organization's 3.71 1.007 3.571a 7.82
customers value
a
The statistical significance level is (0.05) and the degree of freedom is (3).
b
The statistical significance level is (0.05) and the degree of freedom is (2).

The survey was tried to cover the main ideas related to the customer satisfaction
concepts. The results obtained in this study are indicated in table 4.29. The overall
average mean obtained for the statements is 3.92 and this average is located within the
range corresponding to very significant. The results obtained from the study indicates that

85
most of statements relating to customer satisfaction are well understood. According
toKärnä (2009), customer satisfaction has become an essential competitive advantage in
all areas of production. In general, the significance of customer satisfaction is emphasized
in markets where competition is intense. Customer satisfaction is one of the key elements
in TQM frameworks. Therefore, it can be concluded that information and analysis will
has a positive impact in the implementation of TQM philosophy in Ethiopian
construction industry.

4.3.3.3 Significance of Critical Success Factors in Ethiopian Construction

Industry

It is necessary to rank CSFs according to their significance (importance) from the

respondents’ perspective.
Table 4. 30 Ranking of Critical Success Factors

CSFs Important Indices(Average) Rank

Customer Satisfaction 78.50 1
Process Management 77.46 2
Top Management Commitment & Leadership 74.97 3
Policy and Strategy 74.01 4
Human Resource Management 73.14 5
Education and Training 72.38 6
Information and Analysis 71.75 7
Quality Culture 71.43 8
Supplier Quality Management 70.75 9
Design Quality Management 63.81 10
Empowerment and Involvement 54.29 11

As shown in table (4.30), the ranking of eleven (11) factors identified which are critical
for the implementation of TQM. From the table above, it is clearly shows that customer
satisfaction was ranked first with an average importance index of (78.50), followed by
process management with an average importance index of (77.46). Top management
commitment and leadership is ranked third with an average importance index of (74.97).
policy and strategy, human resource management, education and training, information
and analysis, quality culture, supplier quality management, design quality management
and empowerment and involvement CSFs were ranked 4th, 5th, 6th, 7th, 8th, 9th, 10th and

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11th respectively with average importance indices of 74.01, 73.14, 72.38, 71.75, 71.43,
70.75, 63.81 and 54.29 following in that order.

From the table it can be see that the most highly ranked CSFs; the first which is Customer
Satisfaction and the third which is Top Management Commitment and Leadership are
‘Soft’ aspects of TQM, while the second which is Process Management is ‘Hard’ aspect
of the TQM.As shown from the table the result from the survey makes a mix ranking of
those ‘soft’ and ‘hard’ aspects of TQM. In the literature also says that ‘soft’ and ‘hard’
aspects of TQM cannot be implemented separately, the ‘soft’ aspect of TQM create an
environment for the implementation of ‘hard aspect of TQM. The soft and hard elements
of TQM has high impact on organizational performance and as such both soft and hard
elements of TQM should be considered highly essential for successful implementation of
TQM and organizational performance.

TQM is a system approach that considers every interaction among the various CSFs.
Whichever model or framework being implemented in a firm or organization, the key
point which should be emphasized is that its implementation requires an integrated
approach as exist a synergy among the various factors that are critical to TQM. These
CSFs presented here could act as a guide for Ethiopian construction organizations
proposing a TQM initiatives.

Summary
Section 4.3.3 has presented determine the significantCSFs for the implementation of
TQM in Ethiopian construction industry through the surveyed construction firms, which
was conducted during this study. The reliability test for the surveyed instrument was
conducted for three single item and eight multi item CSFs through Pearson’s and
Cronbach Alpha coefficients respectively. The instrument was reliable. The section also
presented the validation of those CSFs through the Chi Square statistical analysis. The
result demonstrated that all CSFs are significant factors for the implementation of TQM
in Ethiopian construction industry. Finally, the study ranked the CSFs based on their
relative important index. Which are customer satisfaction, process management, top
management commitment and leadership, policy and strategy, human resource
management, education and training, information and analysis, quality culture, supplier

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quality management, design quality management and empowerment and involvement
based on their order of importance.

4.3.4 Challenges to Devise TQM in the Ethiopian Construction Industry

This section discussessome factors which may be challenges to devise TQM in the
construction industry. Implementation of TQM is not an easy task, it may face different
obstacles atdifferent stages. In this section, there was one question asked to be answered
by the surveyed construction firms regarding the possible challenges to devise TQM in
their respective firms. The question was, in your view what may be the challenge to
devise TQM in your organization, and the result is presented in the figure below.

30%

25%

20%

15%

10%

5%

0%
Changing behavior and attitude
Firms emphasis in short term objectives
Lack of education and training to drive the improvement process
Lack of top management commitment/understanding
Lack of employees' commitment/understanding
Lack of expertise/resource in quality management system
Lack of communication in the organization
Too much documents are required (Lack of documentation ability)

Figure 4. 12 Challenges to Devise TQM in the Ethiopian Construction Industry

From Figure 4.12, it is evident that the majority (24%) of the survey respondents answered that,
culture change (changing behavior and attitude) is a challenge to devise TQM in their respective

88
organizations. This result can strengthen the outcome of the panel discussion of section
4.2.6. The major barrier to continuous improvement as answered bymost panelists and
participants an attitudinal problem. A significant percentage (17%) of the surveyed
respondents answered that lack of top management commitment/understanding may be a
challenge to devise TQM in their respective organizations. In the literature of,Polat,
Damci and Tatar (2011), revealed that, the contractors are aware of the benefits of TQM
implementation but they are still several barriers to realize. The barriers include, lack of
top management’s support, commitment and leadership are the three most important
ones. 14% of the surveyed respondents answered that lack of education and training to
drive the improvement process and lack of employees’ commitment/understanding may
be a challenge to devise TQM in their respective organizations. 11% of the
surveyrespondents also answered that, lack of expertise/resource in quality management
system may be a challenge to devise TQM in their respective organizations. In the
literatures also, Kiruthinga (2016), demonstrated that, lack of commitment and lack of
knowledge are the most obstacles of TQM implementation. 5% and 4% of respondents
each answered that, lack of communication in the organization and too much documents
are required (lack of documentation ability), and firm’s emphasis in the short term
objectives respectively may be a challenges to devise TQM in their respective
organizations.

4.4 Summary

This chapter has presented the results of the panel discussion and the questionnaire
survey, which was conducted during the study. The qualitative results illustrate the level
of TQM understanding in the Ethiopian construction industry. The quantitative results
also illustrated the current quality management practices and determination of significant
CSFs for TQM and challenges which may affect the implementation of TQM in the
Ethiopian construction industry. The next chapter will present the proposed conceptual
TQM framework to guide the construction companies in Ethiopia to be able embark on
TQM implementation in a positive manner.

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 5. CONCEPTUAL FRAMEWORK FOR TQM
5.1. Introduction

The aim of this chapter is to discuss how can implementation of TQM in the Ethiopian
construction companies could be possible. The conceptual framework is proposed based
on literatures.The quality management practice of the Ethiopian construction companies
and the critical success factors obtained from the result of the questionnaire survey are
made use of. The result of both the panel discussion and the questionnaire survey enabled
to extract the necessary ingredients that are required to implement TQM in the Ethiopian
construction companies.

In the literature review (Section 2.9), it was discussed on TQM framework and the need
of framework for TQM. In order to support the development of the conceptual TQM
framework this chapter also includes some literature about TQM framework.

The requirement of framework design, the conceptual proposed TQM framework and
CSFs of the framework which are essential for the implementation of the TQM concept
are given in the sections below.

5.2. The Requirement of Framework Design

One of the most influential factors in ensuring successful TQM adaptation is the
formulation of a sound implementation framework prior to starting for such a change
process. An implementation framework must be developed that must fit the purpose for
the beginners and so paves the way for better TQM adoption. In order to develop a
framework that is applicable and suitable for construction firms, certain characteristics
must beidentified(Yusof & Aspinwall, 2000). These are:

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  Systematic and easily understood;
 Simple structure;
 Clear links between elements which are presented;
 General enough to suit different contexts;
 represent a pave and planning tools for implementation;
 Answer ‘how to?’, and not ‘what is?’ TQM;
 Implementable

5.3. Conceptual Framework for TQM Implementation in the Ethiopian

Construction Firms

In the construction industry, TQM can be described as for the process of comprehensive
planning and organizing, for the purpose of developing and improving the administrative
and technical performance of the top management and all employees in the organization
(Al-Musleh, 2010). This imagination can be realized through the adaption of different
principles of TQM; like, leadership and education and training and others.In addition, all
functions must be involved as an integrated system to gain the required goals with good
efficiency and high quality. As can be seen in Figure 5.1, the proposed conceptual TQM
framework comprises the top nine CSFs of TQM which obtained from the survey result
based on their significance level. The study selects the more significant CSFs which have
a significance (importance) index of 70 and above. Those CSFs are Customer
Satisfaction, Process Management, Top Management Commitment and Leadership,
Policy and Strategy, Human Resource Management, Education and Training, Information
and Analysis, Quality Culture and Supplier Quality Management.

The development of TQM framework has to start from initial idea and also has to know
the benefits by developing and implementing a TQM philosophy in the construction
industry. As mentioned earlier in chapter 4, section 4.2.4, a very small number of
employees were familiar with the concept of TQM in the Ethiopian Construction
industry, as obtained from the panel discussion. The majority didnot even know the term
TQM.Before embarking on TQM, companies should give an awareness about the concept
and implementation of a TQM philosophy which begins by collecting information in the

91
area that has an impact on the improvement of the performance of employees in the
Ethiopian construction companies.

The prerequisites of an efficient and effective quality management for the construction
system are provided by the top management commitment and leadership. Top
management acts to demonstrate the responsibility in defining and communicating the
vision of a desired system. The top management should give an instruction to employees
to cooperate with the TQM leader. The TQM leader has to give a brief explanation about
the company’s intention to adopt the TQM philosophy to run the company activities.
Moreover, the top management needs to have a positive attitude or a good quality culture
in the implementation of TQM.

As it was stated before and shown below in Figure5.1, the proposed framework is based
on nine criteria. Quality culture, and education and training are the most important
elements in the framework which directs towards top management
commitment/leadership and human resource management. The proposed framework also
concerns with the internal and external cooperation as characterized by the human
resource (internal), customer, supplier (external) management. Internal cooperation is
able to be seen in the element of human resource management with emphasis on the
participation and empowerment of employees. External cooperation involves with both
client and suppliers where partnership is practiced notwithstanding the traditional legal
independence of companies. Top management commitment/leadership is driven through
entire the organization’s policy and strategy by creating the awareness and changing the
organization culture to understand TQM philosophy. Process management, which is an
integral and important element of TQM, with information and analysis, and supplier
quality management are directed towards ultimate customer satisfaction. The customer
feedback enables to correct the wrong implementation of TQM philosophy.

92
 5.4 Critical Success Factors of conceptual Proposed Framework

This section will discussthe CSFs of the proposed conceptual TQM framework and their
links with each other in the construction industry.

Customer Satisfaction

Fe
ed
ba
ck
Information and Process Management Supplier Quality
Analysis Management

Human Resource
Management

Policy and
Strategy Quality
Education
and Training Culture

Top Management Commitment

and Leadership

93
 Figure 5. 1Conceptual Proposed TQM Framework

5.4.1 Top Management Commitment/Leadership

As discussed in the literature review section 2.6.1, the role of management

commitment/leadership is a very important CSF in the implementation of TQM
philosophy.It can play a leading role in driving the TQM implementation towards a
successful result. The result of the discussion and the questionnaire indicated that, the
management commitment and leadership is a very significant part of TQM philosophy
for embarking on it in the Ethiopian construction companies.

The top management and leadership needs an education and training not only about the
TQM concepts and also about a management technique. In the framework it is also seen
that education and training is directed towards top management commitment and
leadership and vice versa. The top management should also facilitate an education and
training for all employees through the human resource management. In addition, top
management should develop a sound attitude towards quality culture, then quality culture
also could be directed towards the top management and leadership and vice versa.

5.4.2 Quality Culture

As discussed in the literature review section 2.6.2, TQM basically requires a new culture.
The result from the discussion indicated that the main problem of the Ethiopian
companies is the negative attitude of the society. The result of the questionnaire also
indicated that quality culture is a very significant element of TQM philosophy for
embarking on it in the Ethiopian construction companies.

Top management will expect to have a good quality culture, even if it faces reluctance to
adopt any new process for development. The quality culture may be initiated from the
government and the top management by recommending changes in the process of TQM
with in the construction companies. To change the negative attitude of all employees
from different management level in the construction industry, needs a lot of workshops
and seminars to clarify the benefits of TQM philosophy.

5.4.3 Education and Training

94
As discussed in the literature review section 2.6.3, companies, that lead in quality
management, should have at least five days training per year for each employee. The
importance of education and training should be recognized by every quality expert. The
result from the discussion indicated that training in the Ethiopian construction companies
is not properly organized as a result it could not be prepared for all employees; though,
all are recognizing the importance of training for all employees in the construction
companies. The result from the questionnaire survey also indicated that education and
training is a very significant part of TQM philosophy for embarking on it in the Ethiopian
construction companies.

For the implementation of TQM philosophy, the advanced education and suitable training
of the top management/ leadership is the very essential issue. Training keeps managers
more knowledgeable about involving themselves in the search for the solution of any
barriers towards TQM initiation. The training typically includes quality tools and
techniques, quality awareness, teamwork, leadership, interpersonal communication,job
related technical skills, and problem solving techniques. Therefore, in the proposed
framework education training directed towards the top management and the human
resource which encompasses all employees.

5.4.4 Policy and Strategy

As discussed in the literature review section 2.6.9, the development of policy and strategy
requires a detailed review of the major stakeholders’ needs, the performance of the
competitor, the market or the industry sector conditions to form the basis of top level
goals, planning activities and setting of objectives and targets. The result from the
questionnaire survey indicated that, policy and strategy is a very significant part of TQM
philosophy for embarking on it in the Ethiopian construction companies.

In the proposed framework, top management commitment/leadership need to be directed

towards policy and strategy. The preparation of companies’ policy and strategy are
initiated and reviewed by the top management. Top management should communicate its
policy, strategy and objectives to all employees in the company. Policy and strategy

95
interlinks with the employees in the human resource management to implement a good
process in all the activities which are done by in the company.

5.4.5 Haman Resource Management

As discussed in the literature review section 2.6.10, the success and the progress of an
organization is heavily dependent on the combination of human resource management
(HRM), organizational commitment and job involvement. The result from the
questionnaire survey indicated that the HRM is a very significant element in the TQM
philosophy for embarking on it in the Ethiopian construction companies.

In the proposed framework, HRM has the center place. It takes an order from the top
management and spreads it for all employees in the company. Quality culture, and
education and training are directed towards HRM to have good employee participation in
the company activities. The company should prepare the recognition and reward
program, working environment improvement, salary promotion, bonus scheme, position
promotion, moral award and penalty through HRM. The HRM togetherwith the
company’s policy and strategy could be driven to a good process management.

5.4.6 Process Management

As discussed in the literature review section 2.6.10, process management focuses on

managing the construction process so that it should operates as expected, without
breakdowns, shortage/missing materials, tools and so forth. Process management needs to
reduce rework and waste mis-specification of processing parameters. The result from the
questionnaire survey indicated that the process management is a very significant element
in the TQM philosophy for embarking on it in the Ethiopian construction companies.

Process management, in the proposed framework, has a core place to drive to an ultimate
customer satisfaction. The construction process of a contracting firm involves the quality
management activities; such as, QC and QA activities and project management. Process
management focuses on managing the construction process to operate within controllable
variability of work force, environment and material. Process management shall use the
quality tools. Quality tools play a key role in an organization for continuous
improvement, and their use is a vital component of any successful improvement process.

96
The process management interlinks with the information and analysis, and supplier
quality management to drive to the ultimate customer satisfaction.

5.4.7 Information and Analysis

As discussed in the literature review section 2.6.7, information and analysis consists of
evaluation of various policies and strategies, analysis of cost of quality, quality audit,
department and/or function performance evaluation, documentation and control of
documents, and employee and supplier performance. The result from the questionnaire
survey indicated that information and analysis is a very significant element of TQM
philosophy for embarking on it in the Ethiopian construction companies.

In the proposed framework, information and analysis interlinks with the process
management and supplier quality management to drive to ultimate customer satisfaction.
Audit/review in quality programs should be done through all construction processes.

5.4.8 Supplier Quality Management

As discussed in the literature of section 2.6.5, supplier quality management is confidence

in suppliers’ ability to deliver a good or service that will satisfy the customer’s needs.
The companies should have partnership with suppliers, supplier selection criteria,
supplier performance evaluation, supplier quality audit, and supplier communication in
order to get efficient and effective construction system. Supplier quality should have
monitoring to ensure that products received from supplier can meet requirements.
Supplier quality management interlinks with the process management and information
and analysis to drive to ultimate customer satisfaction.

5.4.9 Customer Satisfaction

As discussed in the literature review of section 2.6.8, excellent organizations

comprehensively measure and achieve outstanding results with respect to their customers.
Customer satisfaction requires to know its status, its product, its competition, and its
customer. Customer satisfaction, from the questionnaire survey result, ranked in the first
place has its significanceto embarking on TQM philosophy in the Ethiopian construction
companies.

97
In the proposed framework, like other frameworks the customer satisfaction is the
foundation of TQM philosophy. Without customer focus, the TQM program will lack
foundations on which to build it further. The company should have the customer
compliant information, customer satisfaction survey, quality warranty and customer
services for the successful implementation of TQM program. Customer satisfaction can
be measured by comparing product quality and service quality with those other firms in
the same industrial sector (construction industry). The generation of feedback from
customers provides the system performance information back in to the loop to top
management and HRM elements that continues in to the next cycle of construction and
improvement.

5.5 Summary

This chapter discusses the proposed conceptual TQM framework for the Ethiopian
construction companies. The CSFs such as top management commitment and leadership,
quality culture, education and training, policy and strategy, HRM, process management,
information and analysis, supplier quality management, and customer satisfaction are the
foundation of TQM framework to embarking on it in Ethiopian construction companies.
The framework will provide a roadmap for TQM implementation, and also it is highly
dependent on company needs and quality initiatives. The proposed framework is tried to
drive from the quality management practices of the construction industry and the CSFs
perceived to be significant by the professionals.

98
 6. CONCLUSION AND RECOMMENDATION
The main objective of this research was to devise a methodology in implementing a
management philosophy or TQM framework in the Ethiopian construction industry at a
project level. Based on the research findings the following conclusion and
recommendations are drawn.

6.1 Conclusion

1. In general, the discussion revealed that, the current quality management practice
of the Ethiopian contractors is poor and it needs a serious attention in order to
improve the construction industry. The questionnaire survey also revealed that:
 The construction companies measure their performance through different
parameters but the majorities measure their performance through timely
completion of a project.
 Meeting project cost budget and meeting project time/deadline were the
two key factors considered to be the most relevant in project performance
measurement. Meeting quality standards, were not considered as a key
factor in project performance measurement. In addition, performance
indicators for quality were discovered as getting more jobs because of
prior good works done and overall client/customer satisfaction.
 Almost half of the surveyed construction firms in the industry have a
quality improvement program and the quality control is the dominant
program they use.

99
  The majority of construction companies have no well-established internal
quality audit in their operations.
2. The second objective was to assess the level of TQM understanding among the
Ethiopian construction companies. Based on the result:
 The concept of quality is a well understood term within the employees
among the contractors and the majorities understood quality as a customer
satisfaction.
 The concept of TQM is almost unknown by the majority of employees
who are working in the Ethiopian construction companies. A few
employees, project managers, have an awareness about TQM concept.
Some employees did even not know the term TQM.
3. This study intended to determine the management area that should be given
attention for a successful TQM implementation in the Ethiopian construction
industry. Nine CSFs of TQM were selected, which are, top management
commitment and leadership, quality culture, education and training, policy and
strategy, human resource management, process management, information and
analysis, supplier quality management, and customer satisfaction. These factors
are the foundation of TQM framework to be embarked upon in the Ethiopian
construction companies.
The study provided important findings, regarding these CSFs which will help
quality practitioners in the construction industry to implement their own quality
management program.
4. The study developed a conceptual TQM framework for contractors, which is
derived from literatures and the results survey. The framework will contribute to
embarking on TQM implementation for the Ethiopian construction industry. The
framework will provide a roadmap for TQM implementation, and also it is highly
dependent on company needs and quality initiatives.
5. In this study, some factors which may be challenges to devise TQM in the
construction industry a gap analysis was conducted. These factors, which are,
changing behavior and attitude, lack of top management commitment /
understanding, lack of education and training to derive the improvement process

100
 and lack of employees’ commitment/ understanding are the top ranked challenges
to implement TQM through the proposed conceptual framework.

6.2Recommendation

 The researcher recommends that, in higher level of educational institutes, TQM

should be given as a course work for civil engineering and other programs in
order to get an awareness of TQM concept for new entrants in the construction
industry.
 The top management of construction firms (contractors) should develop quality
manual and realize its implementation, and set objectives to ensure their own
commitment.
 Construction companies should create positive behavioral change and attitude all
along to its top management, which encourages the development of quality
management techniques like TQM in all aspect of the construction industry.
 Top management in the construction firms (contractors), should realize that TQM
is a strategic choice and should be consistently translated into guidelines
tobeaccessible to the whole organization.
 Lack of training is the major factor which may challenge TQM implementation,
so construction firms should give trainings or refresh courses in different tasks
including quality management as part of their annual plan for alltheir employees.
 Construction companies (contractors) should employ quality practitioners as part
of their teams in the management of their projects.
 Finally, in order to embark on TQM in the construction industry, the initiative
should come from the government, FDRE Ministry of Urban Development and
construction, by reforming quality related policies.

101
 6.2.1 Future Research Works

Finally, the researcher recommends the following issues for future research works.
 TQM for different stakeholders (Consultants and Clients) in the construction
industry
 Develop a conceptual TQM implementation framework with a case study
conducted on companies.
 Effect of each CSFs in the implementation of TQM on the construction
industry.

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 APPENDIX
Appendix 1:Discussion points for the Panel Discussion
1. How do you understand quality? What does quality mean to you?
2. Can you give an example of situations when you had a problem or issue with
quality? Which ended in poor or good result?
3. How do you express the current quality management practice of our industry?
4. How you are familiar with the concept of TQM?
5. What evidence is there which indicates that the organization is capable of meeting
customer requirements?
6. Identify important factors, which in your opinion may be considered as barrier to
continuous improvement.
7. i. Is implementation of TQM is important in our industry or not?
ii. Are contractors, in Ethiopian construction industry, are willing to change each
aspect?
8. Critical Success Factors(CSF)
Top management Commitment
i. Is management commitment essential for quality management?
ii. In your practice, how do you express the management commitment
towards quality program?

Quality Culture

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 i. Changing an organization’s culture is difficult/easy task?

Education and Training

i. What do you say about the need of training?

ii. Is there a periodic training in your company?

There were other CSF. They omitted after the discussion, because we couldn’t go further
because of time.

Appendix 2:Questionnaire
Total Quality Management in Ethiopian Construction Industry: A Case
Study on Bahir Dar City Public Buildings Projects
Introduction
Many construction companies in developed countries have been using Total Quality
Management (TQM) successfully for several years. TQM is a dynamic process which
promote improvement in the effectiveness and efficiency of all elements of a business to
ensure complete customer satisfaction. The main objective of the research is to devise a
methodology in implementing a management philosophy or TQM framework in the
Ethiopian construction industry with emphasis on public building projects in Bahir
Dar city.
As a result, this questionnaire is developed to obtain expert’s view on implementation of
TQM in our industry. Your response, in this regard, is highly valuable and contributory to
the outcome of the research. All feedback will be kept strictly confidential, and utilized
for this academic research only without mentioning the person or company names.
This research is conducted as a partial fulfilment of MSc degree in Construction
Technology and Management at Bahir Dar University.

Thank You,
If you require clarification and any other information, please do not hesitate to contact
me.

109
HabtamuEshetie
MSc. Construction Technology and Management (student)
Bahir Dar Institute of Technology
Tel: +251 93 958 1055
E-mail: habtamueshe@gmail.com
Bahir Dar

Part I: General Information

1. Organization/Company Name
(Optional)………………………………………………..
2. How long has your organization been involved in construction sector
(Experience)
< 5 years 6-10 years 11-15 years >15
years
3. Size of Firm/Organization:
<25 Employees 26-50 employees 51-100 Employees >100
employees
4. Your Position in the Organization/
title…………………………………………………
5. Educational Rank:
B.Sc. M.Sc. Other; please
specify…………………………….
6. Contact address (Optional):
…………………………………………………………….
Name (Optional):………………………..E-
mail:…………………….Tel:…………………....

Part II: General Understanding Quality Management Practice

1. What is your organization’s understanding of quality?
A tool to maximize profit

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 Customer Satisfaction
Inspection and Corrective actions
A competitive advantage
Elimination of Defects
Continuous Improvement
Increase Productivity
Other (Please Specify) …………………………………………………

A. Data Acquisition
2. Do you collect data to measure the performance of operations?
Yes No
3. How does your organization measure performance?
Fewer customer complaints
Timely completion of projects
Profit margin
Increase productivity
Other (Please Specify) …………………………………………………
4. What data acquisition methodology do you follow within your organization?
Database Maintenance
Progress report
Employee feedback forms
Other (Please Specify) …………………………………………………

5. How would you rate customer satisfaction in your organization?

Very important
Important
Somewhat important
Not important
6. Do you have a system for gathering customer suggestion?
Yes No
7. If Yes, how you gather customers’ suggestions?
Questionnaire surveys
Customer feedback forms
Complaint forms
Other (Please Specify) …………………………………………………

B. Priority given to some factors in your organization

Factors Priority
LowModerateHigh
8. Satisfying clients
9. Having sincere relationship with client representative

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 10. Achieving success in bid
11. Meeting project time/deadline
12. Meeting quality standards
13. Meeting project cost budget
14. Meeting health and safety standard
15. Other ……………………………………………………

C. Performance Indicator for Quality within your organization:

Measures/Indicators Best
LeastQuiteHighHigherHighest
16. Meet general construction standards
17. Overall client/customer satisfaction
18. Management commitment to quality
19. Getting more jobs because of prior job
20. Having skilled work force
21. Adherence to certified quality programs
such as ISO 9001: 2015
22. Training and education of team members
on quality
23. Winning quality award
24. Length of warranty (in years) the
company can give on their work
(Probably beyond the defect liability period)

D. Quality Improvement in your organization

25. Does your organization have a quality improvement program?
Yes No
26. What kind of quality improvement program do you have?
Total Quality Management
Quality Assurance (Processes, procedures and standards
defined/developed
to assure quality objectives are met).
Quality Control (Determining whether products & activities comply with
relevant
quality standards/plans).
Other (Please Specify) …………………………………………………
27. Does your quality improvement plan have the full support of top management?
Yes No

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 28. Your organization’s quality improvement program can be described as:
No formal program
Motivational program which is periodic short-range solutions
A formal program, which is underway, with widespread employee
awareness
Other (Please Specify) …………………………………………………
29. The major objective of your quality programs is:
Cost reduction
Customer satisfaction
Increase productivity
Compliance with statutory, environmental and safety requirement
Involvement of employees in the quality building effort
Other (Please Specify) …………………………………………………

E. Quality Audit (A review to determine whether project activities comply with

policies, processes and quality requirements)

30. Do you have a well-established internal quality audit procedure?

Yes No
31. Do you check for design conformance to standards and regulations?
Yes No
32. Do you carry out project review after closeout of every project? Yes
No

33. Does your organization inspect and control quality of subcontractor’s work to
ensure compliance with quality requirement? Yes No
34. Is there quality department or employees specializing in quality management? Yes
No
Part III. Critical Success Factors (CSFs)
Please indicate how significant each quality parameters can influence quality
management.
1. Not Significant 3. Moderately Significant 5. Exceedingly
Significant
2. Slightly Significant 4. Very Significant
Quality Parameters (CSFs) 1 2 3 4 5
Design Quality Management
Education and Training
Empowerment and Involvement

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Top management Commitment and Leadership
1. Management providing policies for promoting customers
satisfaction
2. Management establishing clear and consistent communication of
mission, vision and plan statements defining quality values,
expectations and focus
3. Management actively leading and directing quality management, programs
assuming responsibility for evaluating and improving quality management
system at pre-defined intervals
4. Communication of management policies & plans to employees
5. Reviewing quality issues in the top management meetings
6. Top management supporting long-term quality improvement
process
7. Attachment of Importance to quality by top management in
relation to cost and schedule objectives
Quality Culture
1. Maintain an awareness of Quality as a key cultural issue.
2. Avoid a barrier company’s culture diffuse globaly
3. Empower employees and encourage self-development and self-
initiative
4. Recognize and reward the behaviors that tend nurture and maintain
quality culture
5. Considered quality culture as a mediating between TQM
practices and Competitiveness
Policy and Strategy
1. Comprehensiveness of quality improvement plan within the
organization
2. Development and Implementation of strategies and plans based on data
concerning customers’ requirements and firm’s capability
3. The concept of total quality is reflected in the Company’s values, vision,
and mission.
4. Management communicating its strategy and objectives to all staff
5. Company policy and strategy can be modified according to business
results.
6. Evaluation of results by comparing them to planned results to
make improvements
7. Management involving the employees in the setting of its
objectives and plans
Process Management

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1. Process flow chart and inspection and test plan for activities that
directly affect quality
2. Inspection and test plans including checklists on completion of the
construction project or a pre-determined stage of the work.
3. The company process performance is measured, and customer
feedback considered
4. The company should be focusing on the processes more than the
end result
5. Clarity of work or process instruction given to employees and site
staff (includes both subcontractor employees & project staff)
6. A system to ensure clarity, uniformity and conciseness of
drawings and specifications
Supplier Quality Management
1. Reliance on reasonably few dependable suppliers who are
evaluated and selected based on their capability and commitment to
product and service quality, and value for money
2. Offering closer and long term working relationship to suppliers
3. Management encouraging the usage of few suppliers, emphasizing
quality rather than price and schedule
4. Providing education (technical assistance) of suppliers by the
organization
5. Providing clear specifications to suppliers
6. Purchasing department assuming responsibility for the quality of
incoming products/services
7. Suppliers having programs to assure quality for
products/services
Human Resource Management
1. Involve employees in the decision-making on essential part of
company
2. Staff feeling of belonging to work and improve the working
environment
3. Training organized for employees in problem identification and
solving skills, quality improvement skills, teamwork and other
technical skills
4. Organization should have employees with organizational commitment and
job involvement.
5. Training of management and employees in quality principles, tools
and techniques
Information and analysis

1. Establishing internal quality audit

2. Review of drawings and specification prior to authorization for
construction works

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3. Document procedures for reviewing disposition of non-conforming
products
4. Documenting procedure for implementing corrective and
preventive actions
5. Continual use of internal or external audits to ensure delivery of
Quality products and services
6. Documentation of project related documents (Hard & soft copy)
Customer Satisfaction

1. Customer requirements are used as the basis of quality

2. Responding effectively to clients’/customers’ enquiries and
complaints
3. Employees knowing which attributes of the process in the
construction the organization’s customers value
4. Follow-ups with customer or client on products/service and
transactions to receive prompt and actionable feedback
5. Encouraging employees to satisfy customers
6. Preventive and corrective actions undertaken to delight customers
7. The use of customer surveys and feedback process, and tracking of
other key measures to assess customer satisfaction.

Part IV. In your view what may be a challenge to devise TQM in your organization.
No limit to one answer.

changing behavior and attitude

Firms emphasis in short term objectives
Lack of education and training to drive the improvement process
Lack of top management commitment/understanding
Lack of employees’ commitment/understanding
Lack of expertise/ resource in quality management system
Lack of communication in the organization
Too much documents are required (Lack of documentation ability)

Thank you,

116
 Appendix 3: Sample SPSS Outputs
a) Reliability Test for Top Management Commitment/ Leadership.
Case Processing Summary
N %
Cases Valid 21 100.0
a
Excluded 0 .0
Total 21 100.0
a. Listwise deletion based on all
variables in the procedure.

Reliability Statistics
Cronbach's
Alpha N of Items
.874 7

b) Chi Square Test for Human Resource Management

Test Statistics

117
 Training
organized for
employees in
problem Organization Training of
identification and should have management
Involve Staff feeling solving skill, employees and
employees in of belonging quality with employees in
the decision- to work and improvement organizational quality
making on improve the skill, teamwork commitment principles,
essential part working and other and job tools and
of company environment technical skills involvement techniques
Chi-Square 10.190a 10.429b 3.571b 7.810a 8.143b
df 4 3 3 4 3
Asymp. Sig. .037 .015 .312 .099 .043
a. 5 cells (100.0%) have expected frequencies less than 5. The minimum expected cell
frequency is 4.2.
b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is
5.3.

Appendix 4: Chi Square Critical Values Table

Degree of freedom P = 0.1 P = 0.05 P = 0.01
1 2.71 3.84 6.64
2 4.61 5.99 9.21
3 6.25 7.82 11.35
4 7.78 9.49 13.28
5 9.24 11.07 15.09
6 10.64 12.59 16.81
7 12.02 14.07 18.48
8 13.36 15.51 20.09
9 16.68 16.92 21.67
10 15.99 18.31 23.21
11 17.28 19.68 24.73
12 18.55 21.03 26.22
13 19.81 22.36 27.69
14 21.06 23.69 29.14
15 22.31 25.00 30.58
16 23.54 26.30 32.00
17 24.77 27.59 33.41
18 25.99 28.87 34.81
19 27.20 30.14 36.19

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20 28.41 31.41 37.57
21 29.62 32.67 38.93
22 30.81 33.92 40.29
23 32.01 35.17 41.64
24 33.20 36.42 42.98
25 34.38 37.65 44.31
26 35.56 38.89 45.64
27 36.74 40.11 46.96
28 37.92 41.34 48.28
29 39.09 42.56 49.59
30 40.26 43.77 50.89

119