The Barriers to Effective Implementation of ISO System in Construction Firms of Saudi Arabia - Dissertation Example

?The barriers to effectiveness implementation of ISO 9001/2000 system in construction firms of Saudi Arabia Research Problem The promotion of total quality management in the construction industry of Saudi Arabia faces a series of barriers. In this way, the expansion of ISO 9001/2000, as a total quality management standard, across the firms of the industry cannot progress fast. 2. Literature Review 2.1 Total quality management, quality management systems and ISO 9001/2000 Quality is a term used for characterizing the performance of services/ products within a particular market. In this framework, quality can be achieved only through investing the necessary funds, which are likely to be characterized as the cost of quality. The cost of quality is usually high – depending on the industry where the firm operates. However, it is always preferable for firms to support effectively quality in regard to their services/ products because in this way severe organizational failures – which result to non-conformance costs – are avoided. In order to understand the value of total quality management and especially of the ISO 9001/2000 for the firms in the Saudi Arabia construction industry, it is necessary to understand the role of quality management in businesses of different structural characteristics. Quality management is a term used for reflecting the need for supporting quality at an earlier stage of production/ service delivery, so that major failures at a later phase of business operations are prevented. The activities ensuring quality can be summarized in an integrated framework, the total quality management, which incorporates the inspection and the quality control developed in regard to production/ service delivery so that quality is ensured. In accordance with Flood (1993) Total Quality Management can be characterized as ‘a process to manage the quality of the product or service on a continuous basis’ (Flood 1993). Total quality management is developed in practice through a series of standards, which include the rules of TQM applicable on each project/ activity. These standards are incorporated in Quality Management Systems which are IS appropriately customized in order for the principles of TQM to be promoted. The most common known of these standards is the ISO 9001/2000, a TQM standard commonly used in the construction industry. The implementation of ISO 9001/2000 in a particular project requires that an appropriate Quality Management System (QMS) is available in place, ensuring that the relevant process will be successfully completed, with no failures in terms of time/ cost. The above system, as part the quality management process, would incorporate a series of phases:’ a) inspection, b) quality control, c) quality assurance and d) total quality management’ (Winch 2010, p.317) which refers to the continuous monitoring of the plan’s performance, in terms of the plan’s alignment with the quality management standards used in the particular case. The ISO 9000 Standard Series are considered as a successful tool for promoting quality since they are based on a series of principles, which ensure the effectiveness of QMS, engaged in the promotion of quality within a particular organization/ industry. The quality management principles on which these standards are based include: a) leadership, b) continuous improvement, c) promotion of people involvement in relevant tasks and so on. At this point, the differentiation between TQM and ISO Standards need to be explained: TQM aims to ensure customer satisfaction while the ISO Standards promote quality in cooperation with customers. One of the key criterion for the success of a total quality system which is based on the above ISO version is the following one: the objectives for the improvement of quality need to be achieved in each phase of the quality system’s used; after achieving these objectives, the system is provided with new objectives, and in this way a continuation in the promotion of quality is achieved (Pheng et al. 2003, 160). At this point it should be mentioned that the quality system based on the new ISO version needs to incorporate elements for:’ a) establishing the objectives for quality, b) for implementing operational controls and c) for measuring the results’ (Pheng et al. 2003, 160). As a tool for promoting the TQM across a particular organization, the ISO 9001/2000 is considered as more effective compared to the ISO 9001/1994 (Pheng et al. 2003, 161); for this reason, firms internationally mostly prefer the new ISO version. 2.2 Total quality management in the construction industry 2.2.1 Total quality management – description In order to understand the potential role of total quality management in the construction industry of Saudi Arabia it would be necessary to describe primarily the specific concept, i.e. to present its characteristics, as they are likely to be identified in projects developed in various industrial sectors. In accordance with Edum-Fotwe (2006, p.18) the key targets of a total quality management plan are the improvement of performance of organizational activities and the satisfaction of the customer. On the other hand, Levy (2006) notes that the concept of TQM is related to quality; it is explained that the key target of the relevant standards is the promotion of quality in all organizational activities and levels, ‘from office to the field’ (Levy 2006, p.212). The increase of customer satisfaction is not set as a key target of the TQM, probably taking into consideration the fact that TQM standards are not always identifiable or not always welcomed (because of cost, of the time required or the local culture). Moreover, Jackson (2010) emphasizes on another aspect of total quality management: the continuation of the relevant processes. It is explained that ‘the continuous improvement of work processes and systems’ (Jackson 2010, p.288) is among the key goals of TQM. If this requirement were not met, then the effectiveness of a particular TQM plan would be doubted. The value of continuation as a characteristic of the TQM is also highlighted in the study of Thorpe et al. (2004); in the above study, reference is also made to two additional benefits of total quality management: ‘the continuous increase of competitiveness and the improvement of the performance of the organizations’ (Thorpe et al. 2004, p.6). 2.2.2 Total quality management as part of strategic planning of construction firms The promotion of total quality management in the construction industry can result to a series of benefits for the construction projects involved. Such perspective is described in the study of Hellard (1993) where reference is made to the role of total quality management in the increase of the satisfaction of customer of constructions projects. By securing the quality of a construction project, the total quality management can increase the chances for the customer satisfaction regarding the particular project. This means that total quality management can benefits the construction industry both in the short and the long term. In the short term, through the successful completion of construction projects (as the success will be guaranteed if customer is satisfied); in the long term, the volume of work of a construction firm will be high if their projects are based on appropriate total quality management standards and customers are satisfied. The development of TQM in the construction industry has to address the following issue: no common rules for the use of TQM in construction projects can be developed across countries, since its country has its own building rules and procedures (Ellingwood et al. 2005, p.161). Moreover, each country has its own ethical, historical and legal background in regard to the construction projects (Ellingwood et al. 2005, p.161). From another point of view, it is made clear in building industry the use of total quality management standards is often avoided because of the cost involved (Oakland et al. 2006). Furthermore, in accordance with McGeorge et al. (2002) the major barrier towards the development of quality management in the construction industry is ‘the industry’s culture’ (McGeorge et al. 2002, p.158). 2.2.3 Total quality management in the construction industry of Saudi Arabia Construction firms in Saudi Arabia tend to continuously update the technology used in the construction sites; the promotion of Total quality management in these firms is part of the efforts made so that construction projects across the country to be improved, in terms of their quality (Lacasse et al. 1999). In terms of the resources available for the realization of such plans (TQM plans) in construction projects in Saudi Arabia, no problem seems to exist; in fact, it is noted that many expatriates, who are highly skilled, are working in construction sites across the above country (Singh 2000). In fact, the percentage of foreign workers in the construction industry of Saudi Arabia has been estimated to 30% (Loosemore et al. 2003, p.70). This means that any potential gap in skills or experience required for the successful implementation of TQM schemes in the above industry could be effectively covered. At this point, it should be mentioned that a high percentage of industrial activity in Saudi Arabia is controlled by the private sector, in the context of the effort of the country’s government to privatize 20 economic sectors, an effort which started in 2000 and is still in progress (Ramady 2010, p.328). Moreover, in accordance with Yates (2007), the quality of material used in construction projects across Saudi Arabia is high, mostly because of the influence of foreign firms operating in the particular industry. 2.3 ISO 9001/2000 in the construction industry of Saudi Arabia 2.3.1 ISO 9001/2000 – description, requirements and challenges The acquisition of the ISO9001/2000 certification is commonly used as a tool for improving the brand name of an organization in the global market; the specific issue is highlighted in the study of Sharp et al. (2005) where reference is made to the high number of firms that managed to get an ISO certification by the end of December of 2003 – about 500,125 firms internationally managed to get this certification by the above date (Sharp et al. 2005, 1). In the above study emphasis is also given to the following characteristic of ISO 9001/2000: the specific standard supports the continuous improvement of the organization by promoting the value of customer satisfaction which is achieved through the update of the process management system of the organization involved (Sharp et al. 2005, 1). Another important issue highlighted in the study of Sharp et al. (2005) is the following one: the acquisition of the ISO 9001/2000 certificate is more important in countries where industrialization is highly supported – for example first in the relevant list in 2000 was China while UK was third (see Graph 1, Appendix). The sections of ISO 9001/2000 standard are graphically represented in the Graph 2 (Appendix). It should be noted that the above standard has been improved compared to the previous version of ISO 9001/1994 at the following points: a) in the new (9001/2000) standard more than 20 standards of ISO 9001/1994 have been included using a ‘more friendly format’ (Pheng et al. 2003, 160). Moreover, all these standards have been categorized in four major sections (Graph 2, Appendix), b) through the new standard, the commitment of the top management team to the improvement of their firm’s quality systems needs to be clear and reflected in particular plans and activities (Pheng et al. 2003, 160), c) additionally, in the context of ISO 9001/2000 standard, a series of data needs to be collected and processed – different data compared to those used in previous standards (Pheng et al. 2003, 160). A critical comparison of the elements of each of the above versions of ISO standard is presented in Graph 3 (Appendix). Through the particular graph it is made clear that the new version of ISO standard emphasizes on ‘process management and resource management’ (Zeng et al. 2004, 11). It should be noted that the ISO 9001/2000 standard introduces radical differentiations regarding the promotion of quality in modern organizations; on the contrary, the previous version (the ISO 9001/1994 version) was basically a repeat of this standard’s past versions, like the 1979 and 1987 ISO versions (Zeng et al. 2004, 11). Because of its important role in improving customer satisfaction, thus in increasing organizational performance, the ISO 9001/2000 standard is promoting in firms of various industries. In the construction industry, the trend for applying for the above standard is continuously expanding, a phenomenon reflected in a study developed in 1997 (Yates and Aniftos, in Chini et al. 2003); through the research developed for the above study it was proved that the specific standard could help towards ‘the increase of the industry’s competitiveness in the local and the international market’ (Yates and Anitfos 1997 in Chini et al. 2003, 69); however, it has been also revealed that just a few construction firms in USA have applied for the relevant certification. Specifically regarding the construction industry, two different versions of ISO 2000 standards are available: the 9001/2000 and the 9002/2000; ‘the former addresses design, development and servicing capabilities while the latter addresses the above apart from design’ (Chini et al. 2003, 70). The promotion of the ISO standard in the construction industry seems to be related with the willingness of managers in construction firms ‘to improve their firms’ internal procedures, a fact that would lead to the increase of customer satisfaction’ (Chini et al. 2003, 70). On the other hand, it seems that the development of ISO standard is rather a challenging task, since the relevant process needs to overcome a series of barriers, a problem that also appears in relevant plans developed in the construction industry. The specific problem was explored in the study of Zeng et al. (2007) which is based on a survey conducted among 500 major China firms; through the above survey it has been revealed that the main barriers in the promotion of ISO standard in firms operating in the modern market are the following ones: a) the lack of commitment from the organizations involved in the relevant procedure, b) extremely high competition among the certifying bodies (Zeng et al. 2007, 244), c) the support provided to firms that try to get the above certification is often limited to a standardized package which includes guidelines for the completion of the various phases of the procedure; in this way, the particular needs and characteristics of each firm that seek for the specific certification are not taken into consideration (Zeng et al. 2007, 244). Similar problems and challenges are faced by the construction firms of Saudi Arabia that try to get the ISO 9001/2000 standard – certification, in the context described below. 2.2.2 The barriers to effectiveness implementation of ISO 9001/2000 Standard in construction firms of Saudi Arabia. As discussed above, the promotion of TQM in Saudi Arabia presents delays even if significant efforts are made by the private sector (that controls an important part of the country’s construction industry) to promote the TQM – and especially the ISO standards – in construction firms across the country. In this context, the development of ISO 9001/2000 in construction firms of Saudi Arabia is not standardized; a series of factors have been found as being the barriers that have contributed to this outcome. These factors are analytically described below. a) Culture; culture as an element of the implementation process of the particular quality system could be a barrier towards the success of the above process, under the following terms: employees in construction firms are likely to be of cultural backgrounds – as explained above, many foreigners work in construction firms in Saudi Arabia. As a result communication and cooperation within construction firms are likely to be problematic, a fact that negatively influences the efforts for implementing a quality system, like the ISO 9001/2000. The role of cultural differences in the delay of implementation of ISO 9001/2000 in construction firms of Saudi Arabia has been verified through the findings of the survey developed by Bubshait et al. (1999, p.45) – where the views of 15 contractors on the requirements and the challenges of the specific system for the construction firms of Saudi Arabia are presented. In the above study it is explained that the significant cultural differences among employees in the construction firms of Saudi Arabia often lead to the development of strong resistance in plans of change introduced in the specific organizations (p.45). b) Cost; the cost of the relevant project includes not just the cost of acquiring the technology necessary for the implementation of the specific system in a particular organization but also the cost related to the compensation of the individuals engaged in the specific initiative. As proved in the empirical research developed by Bubshait et al. (1999) most of the construction firms in Saudi Arabia cannot ‘afford ‘full-time quality managers and specialists’ (Bubshait et al. 1999, p.45) c) Lack of skilled personnel; most employees in the construction firms in Saudi Arabia are not skilled in the implementation and the monitoring of quality systems. In this way, both the implementation and the control phases of these projects face delays. The above problem has another implication; even when employees in these firms manage to respond to the needs of such projects, then, the time remaining for the completion of their daily duties is limited (Bubshait et al. 1999, p.45); the result is the limitation of their productivity and the decrease of the organizational performance. d) Lack of standardization; the requirements of the ISO9001/2000 system can be differentiated in firms and markets of different characteristics (size, culture and resources available); therefore, the successful implementation of the above system in construction firms of Saudi Arabia can face delays. e) Lack of awareness of the system’s requirements; most of contractors in the construction industry of Saudi Arabia are not fully aware of the requirements of the specific system; as a result, they are not able to give clear and effective guidelines to the employees engaged in the above system’s implementation and control (Bubshait et al. 1999, p.46). Another implication of the above problem is the following one: even if the specific system is successfully implemented, the control mechanisms established for the system’s evaluation are likely to be ineffective, a fact that can eliminate the system’s benefits. At this point, it should be mentioned that the level at which the ISO 9001/2000 standard in Saudi Arabia has been promoted in the country’s construction firms has not been precisely estimated. Assumptions can be only made taking into consideration the current practices of construction firms in Saudi Arabia. 3. Research Questions The research questions of this study could be described as follows: a) are firms in the construction industry of Saudi Arabia appropriately prepared in order to respond to the needs of total quality management? B) Which are the advantages and disadvantages of ISO 9001/2000 in general but also in regard to the construction industry? C) Is the use of ISO 9001/2000 in the construction industry feasible? Which barriers, could possibly appear if the implementation of ISO 9001/2000 in the construction industry of Saudi Arabia was attempted? D) How the barriers related to the implementation of ISO 9001/2000 in construction firms of Saudi Arabia could be eliminated? 4. Aims and Objectives This study has the following aims and objectives: a) to highlight the value of ISO 9001/2000 for the construction industry, b) to show the challenges, i.e. difficulties and barriers related to the promotion of this system in the particular industry, c) to show the advantages/ disadvantages of ISO 9001/2000, as a TQM standard, d) to show the common performance of ISO 9001/2000 as a TQM tool of the construction industry, e) to identify the level at which ISO 9001/2000 is used by construction firms across the Saudi Arabia. 5. Research Hypotheses The implementation of ISO 9001/2000 in construction firms of Saudi Arabia faces a series of barriers, which have negatively affected the expansion, and the performance of this TQM standard in the particular industry. 6. Research Methodology The research methodology employed in this study will be both qualitative and quantitative. In other words, a mixed method approach will be used for exploring the subject under examination. The qualitative part of the research methodology will be based on interviews with industry experts, who have implemented ISO 9001/2000 to develop coping strategies. The quantitative research employed in this study will be based on a survey conducted through a questionnaire. The questionnaire will include questions of two different types: a) yes/ no questions and b) suggestion questions. The size of the sample is not known; effort will be made to reach a level of participation, which will be satisfactory – taking into consideration the needs of the study. In any case, participants will belong into three different categories: decision-makers, project managers and employees. The findings of the survey will be critically analysed and compared with the findings of the qualitative research (interviews). Graphs will be used – as necessary - for highlighting the key findings of the survey. References Atkin, B., Borgbrant, J. (2009) Performance Improvement in Construction Management. Oxon: Taylor & Francis Bennett, L. (2003) The management of construction: a project life cycle approach. Oxford: Butterworth-Heinemann Bubshait, A., Al-Atiq (1999) ISO 9000 Quality Standards in Construction. Journal of Management in Engineering, pp.41-46 Chini, A., Valdez, H. (2003) ISO 9000 and the U.S. Construction Industry. Journal of Management in Engineering, pp.69-77 Edum-Fotwe, F. 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(2004) Evaluation of Implementing ISO 9001:2000 Standard in the Construction Industry of China. Architectural Science Review, Vol. 47, pp.11-16 Appendix Graph 1 – ISO 9001/2000 in 2000 (source: Sharp et al. 2005, 1) Graph 2 – the sections of ISO 9001/2000 (source: Pheng et al. 2003, 160) Graph 3 – Comparison between the versions 1994 and 2000 of the ISO standard (source: Zeng et al. 2004, 12) Read More