THE APPLICATION OF TOTAL QUALITY MANAGEMENT: A CASE STUDY OF RAILWAY CONSTRUCTION CORPORATION JSC

FOREIGN TRADE UNIVERSITY
FACULTY OF BUSINESS ADMINISTRATION
---------***--------

GRADUATION THESIS
Major: International Business Administration

THE APPLICATION OF TOTAL QUALITY
MANAGEMENT: A CASE STUDY OF RAILWAY
CONSTRUCTION CORPORATION JSC

Student name

: Ngo Thi Xuan Huong

Student code

: 1112250017

Class

: English 14 – High quality FBA

Intake

: 50

Supervisor

: MSc. Nguyen Khanh Hung

Hanoi, May 2015



i

TABLE OF CONTENTS
TABLE OF CONTENTS ........................................................................................... i
ACKNOWLEDGEMENT ....................................................................................... iv
ABSTRACT ............................................................................................................ v
LIST OF FIGURES AND TABLE ......................................................................... vi
LIST OF ABREVIATION ................................................................................... viii
CHAPTER 1: INTRODUCTION ............................................................................ 1
1.1 Research purpose ............................................................................................. 1
1.2 Research objectives and scope ......................................................................... 2
1.3 Research questions ........................................................................................... 2
1.4 Research methodology ..................................................................................... 4
1.5 Research structure ............................................................................................ 4
CHAPTER 2: LITERATURE REVIEW OF TOTAL QUALITY
MANAGEMENT....................................................................................................... 6
2.1 Overview about quality management system................................................... 6
2.2.1 Definition of total quality management ..................................................... 6
2.2.2 Total quality management evolution ......................................................... 7
2.2.3 EFQM Excellence Model ........................................................................ 11
2.2 Quality management system in construction ................................................ 13
2.2.1 Quality defined in construction ............................................................... 13
2.2.2 ISO 9001:2008 standards ......................................................................... 13
2.2.3 The effectiveness of implementing a quality management system ......... 19
2.2.4 Obstacles to implement quality management systems ............................ 20
2.3 Critical success factors of TQM implementation in construction firms ...... 22

2.3.1 Leadership ................................................................................................ 22
2.3.2 Resource management ............................................................................. 23
2.3.3 Strategies and plan ................................................................................... 24
2.3.4 Process management ................................................................................ 24


ii
2.3.5 Customer satisfaction............................................................................... 25
2.3.6 Training and education ............................................................................ 26
2.3.7 Continuous improvement......................................................................... 26
2.3.8 Communication........................................................................................ 27
CHAPTER 3: RESEARCH METHOD ................................................................ 28
3.1 About Vietnam Railway Construction Corporation JSC .............................. 28
3.1.1 Backgrounds of the company .................................................................. 28
3.1.2 The existing application of total quality management in Railway
Construction Corporation JSC.......................................................................... 32
3.2 Research sources ............................................................................................ 34
3.2.1 Primary data ............................................................................................. 34
3.2.2 Secondary data ......................................................................................... 35
3.2.3 Research sources ...................................................................................... 36
3.3 Sample selection ............................................................................................. 36
3.3.1 Population ................................................................................................ 36
3.3.2 Sample selection ...................................................................................... 37
3.4 Data collection procedures ............................................................................. 38
3.4.1 Pilot study ................................................................................................ 38
3.4.2 Developing the interviews questions ....................................................... 39
3.4.3 Developing questionnaires....................................................................... 40
CHAPTER 4: RESEARCH RESULTS ................................................................ 46
4.1 Business results before applying total quality management ........................ 46
4.1.1 Total quality management system of the company prior to ISO 9001

standards implementation. ................................................................................ 46
4.1.2 Business results before applying total quality management system ....... 50
4.2 Analysis of benefits and costs of Railway Construction Corporation JSC
before applying total quality management .................................................... 51
4.3 The status of TQM Implementation in Railway Construction Corporation
JSC ................................................................................................................. 52
4.3.1 The extent of implementation of Quality management systems ............. 52


iii
4.3.2 The implementation of EFQM Excellence Model’s Enables and Results
Criteria .............................................................................................................. 56
4.4 Analysis of TQM Implementation in Railway Construction Corporation
JSC .................................................................................................................. 69
4.4.1 Relationship of TQM practices and business results ............................... 69
4.4.2 The effects of TQM practices on business results ................................... 71
4.4.3 Barriers faced by the Vietnam Railway Construction Corporation JSC in
the implementation of quality improvement initiatives. .................................. 73
CHAPTER 5: CONCLUSION AND RECOMMENDATION ........................... 78
5.1 Conclusion ...................................................................................................... 78
5.2 Recommendation ............................................................................................ 79
REFERENCES ........................................................................................................ 83
APPENDIX A: QUESTIONNAIRES .................................................................... 86
APPENDIX B: QUESTIONS FOR INTERVIEW SECTION ........................... 95
APPENDIX C: 20 ELEMENTS OF ISO 9001 ..................................................... 96


iv

ACKNOWLEDGEMENT

I would like to express my deep gratefulness for the patience, carefulness,
knowledgeable guidance and constant encouragement of my supervisor, MSc.
Nguyen Khanh Hung. His valuable advices are very essential to improve my
graduation thesis quality.
Besides, I am thankful to Project Department and all employees of Railway
Construction Corporation JSC and CAS Global because of providing me the
required materials and data to complete this research project.
The research is involved in various discussions and interviews in order to
contribute to its structure and quality. Therefore, the assistance of MSc. Nguyen
Khanh Hung, Project Department of Railway Construction Corporation JSC and
CAS Global is precious and is acknowledged for their time and patience.
Finally, I would like to give my special thanks to my family and friends for
their sympathy when I conduct this study.


v

ABSTRACT
The development of modern society leads to diversified demands of customers
to the products or services which they intend to pay for. These demands are
including the high quality and also the values which customers can get from the
products or services to serve their lives. Especially in construction industry, in order
to meet the customer demands, the construction firms need to have a quality
management system which controls all activities effectively and efficiently in both
internal and external business. Therefore, the framework for management and
inovations of processes in construction industry has attracted the most interest.
This research work has identified and addressed the important issues related to
the implementation of total quality management in Railway Construction
Corporation JSC. The main aims of this study are not only to improve the
understanding of total quality management but also to present and evaluate the

current situation of implementing the quality management system in the company.
Furthermore, one of the main aims of this study is to identify and highlight the
current barriers faced by Railway Construction Corporation in the implementation
of total quality management philosophy. All these aims are conducted based on data
which are collected by qualitative method and compared with the standard criteria
of current quality management system and EFQM Excellence Model.
By then, the findings of this thesis bring the status, the advantages and barriers
in the implementation of quality management system in Railway Construction
Corporation. The conclusions are drawn to sum up the results which are collected
from the study. Then, based on the results in the conclusion section,
recommendations which consist of the individual ideas of the author are made up .
It is hopeful that theses recommendations can help the company increase
productivity, improve the business performance and develop the quality of the
products and services in Railway Construction Corporation JSC.


vi

LIST OF FIGURES AND TABLE
Figure 2.1: EFQM Excellence model ................................................................. 11
Figure 2.2: RADAR logic .................................................................................... 11
Figure 2.3: ISO 9001 process flow ...................................................................... 16
Figure 2.4: Critical success factors of TQM - Resource management ................ 21
Figure 2.5: Critical success factors of TQM - Process management ................... 22
Figure 3.1: Personel in Management Board of RCC ........................................... 27
Figure 3.2: Personnel in General Director of RCC .............................................. 27
Figure 3.3: Departments of head office of RCC .................................................. 28
Figure 3.4: Departments of head office of RCC .................................................. 28
Figure 3.5: Primary data ....................................................................................... 31
Figure 3.6: Secondary data ................................................................................... 32

Figure 3.7: Data collection procedure .................................................................. 34
Figure 4.1: Process of implementing the quality management system ................ 43
Figure 4.2: Results of business performance with ISO 9001 principles .............. 47
Figure 4.3: Results of business performance with ISO 9001 elements ............... 50
Figure 4.4: Results of EFQM's enables - Leadership .......................................... 51
Figure 4.5: Results of EFQM's enables - Policy and strategy.............................. 53
Figure 4.6: Results of EFQM's enables - People management ............................ 54
Figure 4.7: Results of EFQM's enables - Partnership and resources ................... 55
Figure 4.8: Results of EFQM's enables - Process ................................................ 57
Figure 4.9: : Results of EFQM's results - Customer results ................................. 58
Figure 4.10: Results of EFQM's results - People results ..................................... 59
Figure 4.11: Results of EFQM's results - Society results .................................... 60


vii
Figure 4.12: Results of EFQM's results - Business results .................................. 61
Figure 4.13: Effects of TQM practices on business results ................................. 65
Figure 4.14: Barriers in the TQM implementation .............................................. 68

Table 2.1: Total quality management evolution .................................................... 9
Table 2.2: ISO 9001 elements .............................................................................. 14
Table 3.1: Sample selection for interview section ............................................... 33
Table 3.2: Sample selection for questionnaires ................................................... 33
Table 4.1: Results of evaluation performance with ISO 9001 principles ............ 47
Table 4.2: Results of business performance with ISO 9001 elements ................. 49
Table 4.3: Results of EFQM's enables - Leadership ............................................ 51
Table 4.4: Results of EFQM's enables - Policy and strategy ............................... 52
Table 4.5: Results of EFQM's enables - People management ............................. 53
Table 4.6: Results of EFQM's enables - Partnership and resources .................... 55
Table 4.7: Results of EFQM's enables - Process ................................................. 56

Table 4.8: Results of EFQM's results - Customer results .................................... 57
Table 4.9: Results of EFQM's results - People results ......................................... 58
Table 4.10: Results of EFQM's results - Society results ...................................... 59
Table 4.11: Results of EFQM's results - Business results ................................... 61
Table 4.12: Effects of TQM practices on business results ................................... 65
Table 4.13: Barriers in the TQM implementation................................................ 67


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LIST OF ABREVIATION
RCC

Railway Construction Corporation Joint Stock Company

TQM

Total quality management

QSM

Quality system management

EFQM

European Foundation for Quality Management

ISO

The International Organization for Standardization

1

CHAPTER 1: INTRODUCTION
1.1 Research purpose
Nowadays, the integration into the world economics has made Vietnam,
especially companies which are located both inside and outside our territory, to face
with lots of highly competitive problems. They always have to hold the initiative to
seek for the solutions in order to not only enhance their competitive effectiveness
and efficiency but also meet the higher and higher demands of customers. As the
result, the problem raised here is what we have to do in order to achieve these
objectives.
Over a period of time, there are a lot of management writers who have strived
for better methods of achieving time, cost and quality objectives. They all support
for an argument that quality management practices improve organizational
performance in any firm placing at any part all over the world.
However, although ISO 9001 quality management system is applied in
Vietnam from 1987 and it has brought some positive changes such as: improving
the business performance , increasing the customer’s trust in services and products,
many obstacles still exist and need to be overcome. Most of companies in Vietnam
can recognize the importance of the implementation of total quality management
system in Vietnam and its results as well. However, it is not really popular to
everyone and there are still few companies who only try their best to take the ISO
certificate but not deeply understand about this management system. Hence, it leads
to bad business consequences.
The problem mentioned above also exists in Railway Construction
Corporation. They have developed the ISO 9000 total quality management system
for nearly 20 years, but they have yet implemented this management system
excellently without any obstacles and difficulties.

Therefore, this research provides the overview about the total quality
management system by the case study of Railway Construction Corporation JSC
(RCC). Moreover, this research also concentrates on the role of managers within the


2
organization because in the modern working environment, they are not only
responsible for maintaining the order and daily routine but also drive the
development and comprehensive changes and continual improvement to meet the
needs of society and customer requirements.
1.2 Research objectives and scope
The main aim of this dissertation is to develop a framework for the
implementation of TQM in Railway Construction Corporation JSC. In order to
achieve the aim, the following objectives must be attained:
-

Understand the main principles and elements of total quality management

-

Achieve the main requirement of total quality management implementation in
Railway Construction Corporation.

-

Understand the current status of Railway Construction Corporation.

-

Identify the significant problems which Railway Construction Corporation has

to face up with in the process of ISO 9001 quality management system and
provide refinement to them.

-

Identify the effectiveness of total quality management on business performance.
By providing a framework for the effective implementation and continuous

improvement of QSM’s by the RCC, it is expected that there would be
improvements in customer satisfaction, reflecting the better management and
control being applied to construction projects. Hereby, the organization could be
expected to begin to move towards operating total quality management practices,
which should help to their delivery capability of construction projects, and thereby
contribute to giving the organization a greater competitive advantage in local,
national and global markets.
1.3 Research questions
This research will address three main questions:
(1) What are total quality management and particularly ISO 9001 standards?
Prior to examining the total quality management in Railway Construction
Corporation, it should be given the background of total quality management in


3
general. This is the prerequisite to help the researcher have many opportunities to
approach the total quality management system in the organization. In order to find
out the answer for this question, the below questions must be addressed:
-

What is total quality management?

-

What are ISO 9001 standards?

-

What are the elements and principles of ISO 9001?

(2) What is the current status of the quality management systems (QMSs) being
implemented by the Railway Construction Corporation?
Essentially, the QMS implementation in an organization involves examining
how effective and successful the implementation of QMS requirements, such as the
standards of ISO 9001:2008, is taking place. The complex nature of construction
practice often causes challenges in the new introduction of QSM at the management
and project levels. These challenges need to be identified in order to take measured
actions to overcome the barriers. Furthermore, the assessment of a company’s
performance during implementation of a QSM is also important in order to evaluate
the impact of the quality system on effectiveness of the system. Therefore, the
following questions should be address:
-

What are the levels of implementation of the existing QMSs?

-

What are obstacles in process of implementation of QMSs?

-

What are the achievements of the company due to implementing the QMSs?

(3) How can effective QMSs be properly established, and be effectively
implemented and continuously improved by the company?
With a lot of criteria in ISO 9001:2008 standards, in order to build a quality
management system which is not only smoothly implemented by itself and also
suitable for the current management culture of the company, it is not easy.
Therefore, to organize useful supporting information for the answer for this
question, there are some following questions which must be declared:
-

Which criteria should be proposed to decide a construction project’s success
according to ISO 9001:2008?


4
-

By which methods the company can maintain the implementation of ISO
9001:2008 effectively?

1.4 Research methodology
Based on research questions and objectives, this dissertation will approach the
objectives by qualitative approach to collect the relevant information associated
with the current circumstance of QMS practices within RCC. Prior to undertaking
the questionnaire survey, a pilot study was carried out. Spontaneously, individual
interview is used to obtain the evaluation and validation of the proposed QSM
improvement implementation framework done by RCC. After each research, it was
followed by a detailed analysis and interpretation of the data collected.
Besides, the research questions and objectives established the boundaries of
the research because it was not aimed to develop a comprehensive QMS framework

model but find out the improved factors and attitudes present in ISO 9001:2008
certificated in RCC that have an impact on the quality performance of their project
management procedures and the application of process controls. EFQM Excellence
model will be used to analyze the effectiveness of the implementation of QMS
applying the ISO 9001:2008 standards.
Moreover, the sample is limited to a group of respondents in two companies.
Apart from Railway Construction Corporation, some experts from CAS Global
whose responsibility is accessing the conformance of Railway Construction
Corporation JSC with the ISO 9001 standards also take this survey.
1.5 Research structure
This dissertation would like to be covered by five chapters which conclude
brief contents mentioned below.
Chapter 1 describes the problem statement and provides the components of the
thesis. The chapter states the main purposes of the whole dissertation, then declare
the objectives and the scopes as well as the questions for this thesis. They would be
followed by the methodology which gives the research approach to the research


5
purpose, objectives and questions mentioned at the previous parts. And this chapter
will end up with the structure of the thesis.
Chapter 2 provides a summary of the current state of knowledge by reviewing
relevant literature in the area of total quality management. This chapter will provide
the background of TQM in general and in construction. Especially, the fundamental
knowledge of ISO 9001:2008 standards are mentioned through some perspectives
as what ISO 9001:2008 is, what principles ISO work out with and steps in
application 9001:2008 in TQM as well. Afterwards, we would like take into
consideration about the general effectiveness and obstacles to implement quality
management system. Moreover, this chapter also provides the general criteria for
assessing quality management system and answer for the question how the

implementation could be recognized to be successful
Chapter 3 provides the background and some outstanding information about
the Railway Construction Corporation. By then, a description of the design of the
research is built to answer the research questions. The chapter outlines in detail, the
research design and data collection methods – namely questionnaire design,
preliminary studies, questionnaire survey and interview of individuals
Chapter 4 brings the interpretation of the collected data which is taken from
the previous chapter is deeply analyzed. We will run step by step from the period
before the company applies the total quality management system using ISO
9001:2008 standards, the benefits RCC has earned and also costs they have paid for
it. Afterwards, from the ultimate research findings of the previous chapter, we
would like to interpret the current implementation of TQM in RCC to understand to
what extent they apply the TQM, benefits they earned from the new TQS and
barriers they have to face with during the process of the TQS.
Chapter 5 is responsible for concluding the things which are taken into
consideration in the previous chapters. Moreover, this chapter also gives some
recommendation for RCC in process of implementing the TQM.


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CHAPTER 2: LITERATURE REVIEW OF TOTAL
QUALITY MANAGEMENT
2.1 Overview about quality management system
2.2.1 Definition of total quality management
Since 1980s, total quality management (TQM) has become popular
management approach with the purpose of developing and expanding the quality of
products by adding more perspectives related to quality. Moreover, it also became
the powerful method of the organizational competitive advantage at that time. There
are different definitions of that phrase from different researchers.

According to British Standard (BSI, 1992), TQM is defined as “a management
philosophy and company practices that aim to harness human and material
resources of an organization in the most effective way to achieve the objectives of
the organization”. Deming (1986) also believes that total quality management can
be defined as “organization activities involving everyone in a company – managers
and workers – in a totally systemic and integrated effort toward improving
performance at every level”.
Besides, Asian Institute of Technology (AIT) proposes that 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 works together in teams with process ownership,
guided by a committed top management, which takes a proactive participation”
(Nukulchai, 2003). Relatively, Sashkin and Kaiser (1991) propose that total quality
management is based on “the accomplishment of customer satisfaction, through
integrating management and employee

commitment, training, continuous

improvement and great supplier relations”.
By different points of view, TQM is defined in different ways. While British
standard proposes that TQM is considered as the management philosophy aimed to


7
achieve the organizational objectives, it is defined as the philosophy aiming at
clients’ satisfaction by Asian Institute of Technology.
Besides, US Department of Defence states that “TQM utilizes both
quantitative (technical) methods and human resource (behavioral) practice to
improve material and services inputs, intra-and inter organizational processes, and

to sharpen the focus on meeting customers’ needs” (Singh and Smith, 2004).
Hereby, the researcher considers TQM as the leadership and excellence in doing
things. Its responsibility is responding to customers’ demands by the perfection of
control and accuracy in daily producing activities.
Out of the above opinions, these authors, by different ways to quote what total
quality management is, have the same outlook about this definition and claim that
total quality management plays an important part in the organizational management
to connect all organizational resources to focus on meeting the customer demands to
achieve the organizational goals by providing the employees with the required
training towards being self-motivated to come up with the potential ideas and
methods to contribute to their jobs and create higher quality service for clients.
2.2.2 Total quality management evolution
Nowadays, total quality management is a popular term all over the world.
There are different ideas about its starting point. While Martinez, et al (1998)
mentioned that the perception of total quality management was developed through
the huge evolution of quality took place in the United States, Zairi (2007) proposes
that it is the first conducted in the US military. Despite different points of view, they
all recognize that TQM has strongly influenced from manufacturing to construction
and service industries. According to Feighenbaum (1993), there are 6 phases in the
evolution of quality:
 Operator quality control
This term existed before 19th century. During that period, each worker or
group of workers was responsible for the manufacture of products, so in this way,


8
the quality of a product could be better controlled because the workers focused on
their work only.
 Foreman quality control
This term developed in the period of 18 years from 1900 by mass production.

Mass production is characterized by the division of labor, specialization of skills
and standardization. The classical management approach known as the scientific
management method was initiated by Fredrick Taylor and became very popular.
The foreman grouped the workers performing similar tasks under his/her
supervision and he/she took full responsibility for the quality of all works done by
the group.
 Inspection quality control
The phase of inspection or testing quality control was developed during the
World War I. By World War II, the manufacturing system had become more
complex and large numbers of workers were reporting to each foreman who could
quite easily have lost control of the work. As a result, it was necessary to engage
full- time quality inspectors. Quality inspection was adopted to separate nonconforming parts, and so the term "quality" meant inspection, and usually quality
inspected during the production process itself.
 Statistical Quality Control
During the period between 1937 and 1960, statistical quality control reached
its peak. There became an increased need for quality inspection in the late mass
production era because the volume and variety of components increased
dramatically. Owing to the huge costs involved in quality inspection, Taylor's
scientific management approach became inappropriate. Statistical quality control
concentrated on statistical tools and made the quality inspection department more
efficient contributing most in sampling inspection rather than complete inspection.
Its slow growth was not due to its development of technical and statistical ideas
material control, design control and business ability.


9
 Total Quality Control (TQC)
The TQC phase started in the 1960. Feigenbaum was the first expert who used
the TQC term. He considered that "control must start with the design of the product
and end when the product has been placed in the hands of customers who remain

satisfied". There are 19 many elements such as supplier development relationships,
people empowerment and teamwork that are considered as a part of the TQM
concept, but not included in TQC.
 Total Quality Management (TQM)
TQM evolved in the 1980s and began to have a major impact on management
and engineering approaches to long-term success through customer satisfaction. It is
based on the participation of all members of an organization in improving
processes, products, service and the culture in which they work. Garvin (1984)
outlined the evolution of TQM as the outcome of four major eras of development.
He illustrates the evolutionary process where quality has moved from an initial
stage of inspecting, sorting and correcting standards to an era of developing quality
manuals and controlling process

performance. The third stage regards

comprehensive manuals including areas of an organization other than production,
and the use of standard areas of an organization other than production, and the use
of standard techniques such as statistical process control (SPC).
Martinez Lorente et al. (1998) summarized the chronology of TQM
development as in the following table:


10
Table 2.1: Total quality management evolution
Year

Events

1924

Shewhart developed statistical process control. (SPC)

1940s

US army pushed the use of sampling methods during World War II.

1950

Many attempts at work improvement undertaken (e.g. job enrichment,
work redesign, participative management, quality of work life, worker
involvement).

1960

Liberalization of economy in Japan with pressure to improve quality to
compete with foreign companies

1961

First edition of Feigenbaum's Total Quality Control published.

1972

QFD was developed at Mitsubishi's Kobe shipyard.

1974

Quality circles began to be widely introduced in the USA; the first
quality circle program was launched in Lockheed in 1974 and in the UK
Rolls-Royce introduced the concept in 1979.

1979

First edition of Crosby's Quality is free published. Xerox Corp. started
to apply benchmarking concept to processes. Publication of the BS5750
quality management series.

1983

"Quality on the line", published by Garvin in Harvard Business Review,
analyzed the differences between Japanese and US companies, showing
some of the reasons for the better performance of the Japanese. A paper
about Taguchi's design of experiments was published in Harvard
Business Review.

1985

Navel System Command named its Japanese- style management
approach "total quality management".

1987

First edition of ISO 9000 quality management system series. Publication
of the Malcolm Baldrige National Quality Award
Source: Martinez Lorente et al. (1998)


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2.2.3 EFQM Excellence Model
2.2.3.1 The need for a model

The world is changing faster and faster. The interdependences between
organizations, communities, countries and economies are increasing in complexity.
Organizations who would like to exist in this environment have to continuously
improve and innovate themselves. Whatever they do should be recorded and
analyzed in suitable ways in order to gain experiences and then continue to develop
properly. EFQM Excellence model is one of the useful tools which are responsible
for doing it. This model allows people to understand the cause and effect
relationship between what the organization does and the results it achieves.
2.2.3.2 Fundamental concepts of excellence
According to EFQM Excellence model, in order to sustain excellence,
organizations should build a foundation for this and there are 8 fundamental
concepts:
 Adding value for customers
 Creating a sustainable future
 Developing organizational capability
 Harnessing creativity and innovation
 Leading with vision, inspiration and integrity
 Managing with agility
 Succeeding through the talent of people
 Sustaining outstanding results
2.2.3.3 Model criteria
To sustain success, organizations need strong leadership and clear strategic
direction. They should develop and improve their people, strategy, partnership and
process to provide the products and services which meet the customers’ demands. If
these approaches work out effectively, they will achieve the results as expected


12

Figure 2.1: EFQM Excellence model

Source: />
2.2.3.4 RADAR
The RADAR logic is a dynamic assessment framework and powerful
management tool which brings a structured approach to questioning the
performance of an organization

Figure 2.2: RADAR logic
Source: />
It is supposed that organization should
-

Determine the results it is aiming to achieve as part of its strategy


13
-

Plan and develop an integrated set of sound approaches to deliver the required
results both now and in the future

-

Deploy the approaches in a systematic way to ensure implementation.

-

Assess and refine the deployed approaches based on monitoring and analysis of
the results achieved and on-going learning activities

2.2 Quality management system in construction

2.2.1 Quality defined in construction
“Quality” is not a new or recent definition and there is no exact definition of it.
On the way of its development, there are lots of pioneers who have implemented the
research on it such as Deming, Crosby, Feigenbaum, Taguchi and others. According
to ISO DIS 9000:2000, quality is defined as “the degree to which a set of inherent
characteristics fulfill requirements” (Tricker 2008, 4). This means that in the
construction industry, quality will be achieved whenever the needs of the entities
and individuals involved in projects or production and provision of services, such as
consultants, constructors, project customers and other related stakeholders are
fulfilled.
2.2.2 ISO 9001:2008 standards
2.2.2.1 What is ISO 9001?
Most of the international standards begin with the letters “ISO”, the acronym
for the “International Organization for standardization”. This worldwide federation
of 110 national standards bodies works to promote the growth of manufacturing,
trade and communication among business operation worldwide, through the
development of generic quality standards.
ISO 9001 is the most worldwide recognized standard. This is a basic quality
management system that can be used in industries of any size, anywhere in the
world. Registration to ISO 9001 (or other quality management standards) provides
objective proof that a business has implemented an effective quality management
system, and that is satisfies all the requirements of the applicable standard. An


14
external expert caller a register of CB (Certification Body) conducts an on-site audit
to determine whether or not a company complies with the standard. If they are
found to be in conformance, they will be issued a certificate showing their address,
scope of operations and the seals of the accreditation bodies that give the registrar
its legitimacy. (Acsregistras.com)

In addition, the ISO 9001 is followed by ISO 9000. The first of ISO 9000
developed by the International Organization for Standardization - Technical
Committees in 1987, was updated in 1994 and 2000. The latest version of the ISO
9001 standards was released in November 2008. The 2008 version did not modify
any new perspectives compared to the 2000 version, therefore does not require the
re-writing of quality documents to suit the most recent version.
2.2.2.2 ISO 9001’s contents
ISO 9001 standard is covered by 20 elements which contain requirements that
should be implemented properly to gain the benefit from quality management
system. In the area of construction industry, these 20 elements have been adapted
for construction procedures to cover a wide of scope of quality related activities of
construction-related firms (Chini and Valdez 2003). They are including:
-

Management responsibility

-

Quality system

-

Contract review

-

Design control

-

Document and data control

-

Purchasing

-

Control of customer’s supplied product

-

Product identification and traceability

-

Process control

-

Inspection and testing

-

Control of inspection, measuring and test equipment

-

Inspection and test status

15
-

Control of non-conforming products

-

Corrective and preventive action

-

Handling, storage, packaging, preservation and delivery

-

Control of quality records

-

Internal quality audits

-

Training

-

Servicing

-

Statistical techniques
All these elements are described in detail in Appendix C
In order to use these elements of ISO 9001 and then improve the

organizational performance, mangers should deeply understand and use the 8
principles on which the quality management system standards of ISO 9001 series
are based. They are derived from the collective experience and knowledge of the
international experts who take part in ISO Technical Committee ISO/TC 176,
Quality management and quality assurance, which is responsible for developing and
maintaining the ISO 9001 standards. These 8 principles are including:
-

Customer focus

-

Leadership

-

Involvement of people

-

Process approach

-

System approach to management

-

Continual improvement

-

Factual approach to decision making

-

Mutually beneficial supplier relationships

Content of each principle is presented in the following table: