EFFECTIVE TOTAL QUALITY MANAGEMENT (TQM)

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PROCESS FOR C O N S T R U C T I O N
By G. W. Chase, ~ Member, ASCE

ABSTRACT: This paper presents a 10-element total quality management (TQM)

process that includes the common elements found in the TQM processes being
used by design and construction companies. The model draws on two primary
sources--i.e., three workshops conducted by Iowa State University on the appli-
cation of TQM to the design and construction of buildings, and continuing study
by the writer of design and construction companies practicing TQM. The 10 ele-
ments include: (1) Upper-management involvement, commitment, and leadership;
(2) vision, mission, and guiding principles, developed in concert with the employees
of an organization; (3) a significant amount of training in quality awareness, com-
munication, leadership, teamwork, process improvement, and job-related skills;
(4) improved communications; (5) teamwork; (6) a focus on satisfyingthe customer;
(7) a focus on improving the work environment, helping employees improve, and
involving them in the improvement efforts of the organization; (8) the use of
formalized process improvement techniques; (9) helping suppliers and subcontrac-
tors improve; and (10) striving for continuous improvement.

INTRODUCTION

This p a p e r focuses on the application of T Q M to the construction in-

dustry. The manufacturing sector within the U n i t e d States has been suc-
cessfully implementing formalized quality m a n a g e m e n t since the early 1980s.
The methodology for applying T Q M principles to manufacturing is well
known, but it is not well known for the design and construction of facilities.
The U.S. construction industry is t o d a y where the manufacturing industry
was in 1982, with some, but not a lot of, experience to draw on.
T O M is both an o p e r a t i o n a l p h i l o s o p h y and a m e t h o d o l o g y in which there
is a strong c o m m i t m e n t to customers, e m p l o y e e s , and i m p r o v e m e n t . It goes
well beyond the traditional limits of quality assurance ( Q A ) and quality
control (QC). T Q M m a y be called by o t h e r names, such as " Q u a l i t y man-
agement," "quality i m p r o v e m e n t , " and so on. H o w e v e r , most formalized
quality-management processes i n c o r p o r a t e the principles of W. E d w a r d s
Deming, widely r e g a r d e d as the father of the m o d e r n quality movement.
Here, D e m i n g ' s concepts are discussed, followed by a discussion of a
graphical model representing T Q M as practiced in design and construction.
The 10-element m o d e l is based on the input of contractors who have de-
veloped formalized q u a l i t y - m a n a g e m e n t processes. This m o d e l has been
reviewed by a committee of contractors of the A s s o c i a t e d G e n e r a l Con-
tractors ( A G C ) who are practicing T Q M , and is included in A G C ' s new
manual on implementing T Q M (Chase 1993).

~Assoc. Prof., Constr. Engrg. Program, Dept. of Civ. and Constr. Engrg., Iowa
State Univ., Ames, 1A 50011-3232.
Note. Discussion open until March 1, 1994. To extend the closing date one month,
a written request must be filed with the ASCE Manager of Journals. The manuscript
for this paper was submitted for review and possible publication on February 19,
1993. This paper is part of the Journal of Management in Engineering, Vol. 9, No.
4, October, 1993. 9 ISSN 0742-597X/93/0004-0433/$1.00 + $.15 per page.
Paper No. 5655.

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TQM WORKSHOPS
Iowa State University has conducted a series of four workshops on the
use of TQM in the design and construction of buildings. Three of these
workshops were conducted in conjunction with the American Society for
Quality Control (ASQC). These workshops included a cross section of own-
ers, designers, and contractors, many of whom are at various stages of
implementing TQM in their organizations. The workshops included pre-
sentations by companies that are leading the way in adopting TQM, as well
as breakout discussion sessions on TQM implementation. Topics have in-
cluded training, organization, management involvement, customer and em-
ployee feedback, teams, employee involvement, employee recognition, sup-
plier improvement, partnering, formulation and execution of a general
implementation plan, and results.
The first workshop outlined construction industry problems, discussed
actual and potential applications of TQM to the construction process, and
proposed a plan of action. The participants concluded that all parties--
owners, designers, contractors, and others--were taking a less-than-profes-
sional approach to the design and construction process. Many of the industry
problems were attributed to poor management practices and poor leadership
on the part of owners, designers, and contractors. The participants rec-
ommended that owners lead the way by first adopting TQM, then requiring
TQM of other members of the design/construct team (TQM 1990).
The second workshop concentrated on discussing and agreeing upon the
steps involved in implementing TQM in a construction company. An 11-
step implementation model was developed (Planning1991). The results were
reported in this journal by Chase and Federle (1992). The third workshop
concentrated on case studies and particulars of implementation (Applying
1992). A fourth workshop was held May 20-21, 1993, in Chicago, with the
emphasis on refining the process.
These workshops have resulted in a significant exchange of information
on real-world practices. So far, participants have arrived at a consensus on
what should be in a TQM process, and have agreed on the steps necessary
to implement the process in the design and construction of facilities. This
paper discusses what should be in a TQM process.

DEMING'S VIEW OF A "SYSTEM"

In 1950, Deming introduced his concepts to Japanese industrialists who,
at that time, were having difficulty gaining acceptance of Japanese products

Design Consumer
Suppliers and ~ research
of materials / redesign
and Receipt J l Consumers
equipment and test of ,"- v Distribution " ~
A ...~aterials
Production, assembly, inspection ~

Tests of processes, "~

machines, methods, costs
FIG. 1. Deming Flow Diagram (Deming 1986)

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in world markets. Deming advised them to take a new, structured approach

to improving the quality of their products. To help illustrate his message,
he used a graphic illustration of a delivery system, which has become known
as the "Deming Flow Diagram," shown in Fig. 1. Deming's flow diagram
represents his visualization of the processes and interactions associated with
the design and production of a product. In the upper-center portion of the
diagram, the design process is providing input to the production and assem-
bly process. On the left, suppliers provide the raw materials necessary to
manufacture a product. The mainline processes of production, assembly,
inspection, and distribution are shown along the spine of the diagram.
What Deming sees in this amalgamation of people, equipment, and pro-
cesses is a system. The system is just as applicable to the design and con-
struction of facilities as it is to the design and production of products. It is
true that construction is not a mass-production business. Each facility is
often a prototype that must work the first time it is placed in service.
Nevertheless, many of the design, construction, logistical, and administra-
tive functions common to the design and construction of facilities are re-
peated over and over again from project to project. Furthermore, many of
the relationships are similar.
When the system is working at its worst, the various parties are unin-
formed and do not cooperate. Customer input is not adequately considered
by the designers. Others within the system do not know about customer
expectations, so they cannot temper what they do with that knowledge.
Inspectors reject what has been done wrong and send it back for rework.
Rework is waste; in construction it has been built into the cost of doing
business. Suppliers are selected on the basis of price, not quality. Employees
feel no sense of control over their own work. There is little spirit of team-
work, and very little concern for the next person or crew downstream in
the process. There is little measurement of quality, so there is no baseline
for improvement; and there is no way to know if a process is getting better
or worse.
When the system is working at its best, the opposite of the foregoing is
true. The overall process begins with a thorough job of customer research.
Everyone in the system understands not only the customer's expectations
but each other's. There is a sense of teamwork among all parties associated
with the process, including owners, designers, contractors, subcontractors,
and suppliers. Inspection results are used to provide information to design-
ers, production workers, and suppliers so that defects can be prevented.
Employees know how to measure and improve their processes, and they
can freely make recommendations for change.
There is a conscious effort to work with suppliers to help them improve.
Nonquality suppliers are weeded out. Those who remain improve their
quality. Owners carefully select their designers and contractors based on
quality and price, not price alone. Contractors do the same with subcon-
tractors and suppliers. Longer-term relationships with fewer suppliers, based
on mutual trust and confidence, are established.
Input for design improvements is solicited from production employees
and suppliers. The design reflects more efficiency, less waste, fewer errors,
more ease of manufacture (or construction). Suppliers can provide valuable
information to assist in improving processes which use their material or
services. For that reason, suppliers are asked to provide input.
Communication among all parties and employees of the firm is improved.
Decisions are based on factual information, much of it quantitative.
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Once the product or service has been delivered to the customer, the
customer's degree of satisfaction is measured. Customer recommendations
for improvement are sought. That input is then used for redesign and im-
provement of the processes involved.
This flow diagram in Fig, 1, with its emphasis on communication, team-
work, and "process improvement," is central to Deming. The concept may
appear to be simple on the surface, but it requires enlightened leadership
and a considerable increase in normal levels of training. Instruction in topics
such as teamwork, structured problem solving, variation, measurement,
leadership, safety, communication, and job-related skills is necessary to
make it happen.
Deming, among others, believes that the traditional approach to man-
agement in the United States is flawed. There is too much emphasis on
short-term profits and not enough emphasis on long-term survival, inno-
vation, and improvement. There is not enough involvement of adequately
trained and motivated employees. He believes that 85% of the problems in
the delivery of goods and services is caused by the system, which is the
responsibility of management. Only 15% is caused by employees (Walton
1986). Deming's advice to American management to correct these defi-
ciencies is represented in condensed form in his famous 14 points.

!. Create constancy of purpose toward improvement of product and ser-

vice. Plan to stay in business and provide jobs.
2. Adopt the new philosophy. Management must change their manage-
ment style to one of quality management.
3. Cease dependence on inspection to achieve quality. Build quality into
products and services in the first place.
4. End the practice of awarding business on the basis of price tag. Instead,
minimize total cost by working with single suppliers, developing long-term
relationships based on loyalty and trust.
5. Improve constantly and forever the system of production and service.
6. Institute training on the job.
7. Adopt and institute leadership.
8. Drive out fear.
9. Break down barriers between staff areas.
10. Eliminate slogans, exhortations, and targets for the work force. (!n-
stead, provide them the means to improve.)
11. Eliminate numerical quotas for the work force and management by
numbers. Substitute leadership.
12. Remove barriers that rob people of pride and workmanship. Elimi-
nate the annual rating or merit system.
13. Institute a vigorous program of education and self-improvement for
everyone.
14. Put everybody in the company to work to accomplish the transfor-
mation.

Deming maintains that the points apply to all industries, large and small,
and to the service industries as well as manufacturing. His points are often
misunderstood. The reader is referred to a complete discussion of Deming's
14 points in The Deming Guide to Quality and Competitive Position, by
Gitlow and Gitlow (1987). The 14 points are not individually discussed here,
because their essence is incorporated in the following discussion of TQM.
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Deming and another quality expert, Joseph M. Juran, had a significant

influence on the success of post - WW II Japan. Their principles, aggressively
practiced in Japan since the 1950s, propelled that country to a position of
prominence in the world economy. Since the early 1980s, these principles
have been practiced by many of the leading corporations in the United
States.

TQM AS PRACTICED IN FACILITY DESIGN AND CONSTRUCTION

There are 10 elements that are the basic ingredients of TQM as practiced
by both design and construction firms, illustrated in Fig. 2. The model in
Fig. 2 is based on the results of the aforementioned workshops and study
of design and construction companies that practice TQM by the writer over
the past four years.
Several foundation elements are required to support the structure. These
are training (and education), vision, mission, goals and guiding principles,
and upper-management involvement, commitment, and leadership.

Training
Training is necessary because TQM uses a participative, disciplined, and
organized approach to problem identification and problem solution. To do
this, there is also a requirement for the collection and evaluation of quan-
titative information. Training topics typically include quality awareness,
teamwork, leadership, interpersonal communication, problem solving skills,
and job-related technical skills, tn addition quality-improvement teams often
receive instruction as a unit. Topics include interpersonal communications
and teamwork to help them work together. They also receive instruction in
problem identification and process improvement, to include what to mea-
sure, how to measure, and how to interpret the data. Measurement helps
establish baseline data, shows the need for improvement, and demonstrates
improvement or lack of it.
There is a variety of consultants who specialize in this training. Often a
company will send a cadre of personnel to a "train-the-trainer" course so
that the cadre can then return to the company and train the other company

IMPROVED COMMUNICATIONS

TRAINING MISSION, MANAGEMENT

GUIDING INVOLVEMENT,
COMMITMENT,
PRINCIPLES LEADERSHIP

FIG. 2. Structure of Total Quality Management (Chase 1993)

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personnel. Frequently, the remaining company personnel are trained as

teams.
In keeping with the theme of continuous improvement, employees also
receive continuing instruction in leadership, safety, communication, and
technical skills related to their particular job. Companies that lead in quality
management provide five days or more of training per year per employee.
Vision, Mission, Goals, and Guiding Principles
The vision is a written statement stating what the company ultimately
intends to become. The mission states what a company is in business to do.
Goals are broad targets that stem from the vision and mission. There can
be goals for many areas, such as safety, customer satisfaction, business
growth, and worker satisfaction. Guiding principles are general statements
that reflect in broad terms the company's value system and approach to
quality. They address issues such as

9 What are the company views and attitudes toward quality?

9 How does the company want to relate to the customer?
9 How is the company to treat subcontractors and suppliers?
9 How does the company want to relate to its employees?
9 What are company views toward professional and technical com-
petence?
Each company needs these clearly defined statements of vision, mission,
goals, and policies. These are normally written, disseminated to, understood
by, and bought-into by management and the work force. Terminology fre-
quently used in such statements includes "customer satisfaction," "emphasis
on safety," "elimination of errors and defects," "doing things right the first
time," "striving for a reputation as the best in their field," and "continuous
improvement." These statements by themselves are no better than the slo-
gans that Deming says we must avoid. They must be accompanied by all of
the other elements of a total quality-management process. Slogans and
exhortations such as "quality pays," "work smarter," "work safer," "zero
defects," etc., have not been proven to be effective.
Upper Management Involvement, Commitment, and Leadership
Quality starts at the top. Without upper-management involvement, com-
mitment, and leadership, a TQM program cannot succeed. In its recent
study of the application of TQM to the construction industry, the Construc-
tion Industry Institute (CII) found that the role of senior management is
absolutely vital to the success of TQM. According to Oswald and Burati
(1992), "Senior management personally and persistently leads the building
of Quality values into the company's operations. This single finding eclipses
all the rest. If this does not happen, Quality Improvement does not happen."
To help prepare themselves for their new role, CEOs become educated in
the principles of TQM and eventually become committed to its implemen-
tation within their company. Upper management, starting with the CEO,
has the responsibility to
9 Learn about quality along with others
9 Endorse the concept of TQM
9 Assist in the development of corporate quality policies and goals
9 Actively lead the way by participating in the activities of the quality
steering committee and company training
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9 Provide the necessary resources of time and money to permit im-

provement (this makes some people nervous because of the initial
investment in training, without immediate visible results)
9 Provide suitable recognition for those who contribute to the quality
mission
9 "Walk the talk," i.e., demonstrate through their behavior that qual-
ity is indeed the top priority for the company

Improved Communications
Improved communications occupies the subfloor of the structure in Fig.
2, and it is a key element in achieving the four elements above it. The lines
around organizational elements on an organization chart create islands (pur-
chasing, personnel, comptroller, MIS, estimating, equipment maintenance,
engineering, warehouse, marketing, project management, etc.). The more
of these blocks that exist and the more levels there are in an organization,
the more difficult it is to communicate. Within many companies there is
also fear. Fear inhibits open communication. Deming says we must drive
out fear from within our organizations so that employees become eager
participants in the improvement process.
How is this improvement in communication accomplished? Within com-
panies, these improvements occur largely through a combination of aware-
ness, instruction in interpersonal communication, leadership instruction,
and an increased emphasis on teamwork.
Islands outside companies exist also. For construction these are the de-
signer, owner, contractors, subcontractors, suppliers, and regulatory agen-
cies. Bridges are built between these islands so that information flows freely
and willingly. A variety of techniques are used, such as joint training in
TQM, the practice of TQM by each of the parties, and by "partnering."
Partnering is too broad a topic to be discussed in detail here. Partnering is
an agreement by two or more parties associated with the design and con-
struction of a facility to work together toward a successful project in which
their mutual objectives are accomplished in a nonadversarial atmosphere.
Partnering is fully discussed in Partnering; A Concept for Success (1992)
and "In Search of Partnering Excellence" (1991). In addition, a chapter on
partnering and two case studies on partnering have been included in Im-
plementing TQM in a Construction Company (Chase 1993). When partner-
ing is used on construction projects, there is a marked improvement in
communication.

Teamwork
TQM recognizes that people working together in teams toward mutual
goals are generally more effective than individuals working alone. Teams
composed of employees from various parts of the company work to improve
processes. There are also single-craft teams, often referred to as natural
work teams, which work to improve their own planning and work. Process-
improvement teams receive instruction on how to work together and to use
the specialized process-improvement tools that are part of TQM.
On individual construction projects, the parties may establish a team
environment in which the general contractor, subcontractors, suppliers,
owner's representative, and designers all work together. Sometimes this is
the result of TQM; other times it is the result of the partnering process.
Sometimes it is both.
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Customer Satisfaction
Customer satisfaction becomes a philosophy that permeates the organi-
zation and transcends the "every man for himself" approach. It becomes
the ultimate goal of every employee. In the design and construction of
facilities, more emphasis is placed on defining the customer's needs and
wants, translating these needs and wants into accurate plans and specifi-
cations, and then performing construction in such a manner that the cus-
tomer's expectations are met. Engineering firms have reported to the writer
very significant savings that resulted from helping customers better define
their needs.
information-gathering techniques such as surveys measure the level of
customer satisfaction. These techniques seek out areas of dissatisfaction and
feed the information back to the company so that action can be taken to
eliminate the source of any dissatisfaction. This is true for both the external
and internal customers (employees). Kaoru Ishikawa (1985), a leading Jap-
anese authority on quality management, claims that at as a first step in
quality control (or quality management, if you will) it is imperative to make
the customer complain so that you know where you stand. The identification
of customer perceptions should be pursued aggressively, since, as ishikawa
points out, the known complaints probably represent only the tip of the
iceberg. Construction companies are indeed using customer surveys. For
example, the Granite Rock Company, Watsonville, Calif., one of the 1992
Baldrige Award winners, has used surveys extensively as part of their qual-
ity-management program (Chase 1993).

Internal Customer Concept

The concept of "customer," when applying TQM, is broadened. Typically
we think of the customer as being the person, external to the company,
who receives the end product or the service. In TQM, that concept broadens
to include anybody that receives a product or a service from another, mean-
ing, for instance, that within a construction company, a site superintendent
is the "customer" of the purchasing department, the warehouse, the main-
tenance shop, the payroll department, the scheduling department and so
on. Satisfaction of the internal customer is strongly emphasized in TQM
because it promotes better communication and improves working relation-
ships.

Supplier Improvement
Designers and contractors cannot deliver a quality facility to an owner
without the active participation of other contractors and suppliers in their
quality program. Companies that practice TQM clearly outline their ex~
pectations to their suppliers, then help them improve. Suppliers (which
includes subcontractors) often attend courses offered by their customers.
They are expected to implement their own quality-management programs.
If suppliers cannot meet the quality standards of the buyer~ then they are
dropped as suppliers.
Deming goes so far as to recommend that the number of suppliers for a
particular service or product be reduced to one. Whether or not one agrees
with that philosophy, TQM envisions that the number of suppliers for a
product or service be reduced, and that price not be the only criteria in
supplier selection. This not only reduces undesirable variability, but it allows
the parties to better understand and meet each other's expectations, What
this means for construction is that both owners and contractors should be
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more selective in choosing their contractors, subcontractors, and suppliers.

Owners should also prequalify their designers, allowing only those with
effective quality-management programs to be considered for their projects.
Process Improvement
Problem identification and solution focus on the processes involved. A
process might be the vibration of fresh concrete, the fabrication of structural
steel, the preparation or review of a shop drawing, or the way in which a
project manager deals with a client and with other members of the team.
TOM places emphasis on prevention, not correction. Deming says, "Rou-
tine 100 per cent inspection is the same thing as planning for defects . . .
acknowledgment that the process cannot make the product correctly, or
that the specifications made no sense in the first p l a c e . . . Quality comes
not from inspection, but from improvement of the process" [Deming (1982),
page 22]. This does not mean that inspection ceases. Instead, it means that
more effort goes into preventing errors and deficiencies. Inspection contin-
ues, but its primary function is to provide information that can be used to
identify problem areas that must then be studied so that a particular process
can be improved.
Process improvement is approached in a deliberate and professional man-
ner, using trained teams. These teams usually consist of a representative
from each area that might be involved in a process. All levels involved are
represented, including management and line personnel, and, where appro-
priate, the customer. Natural work teams, which consist of a group of
employees that normally work as a unit (such as a crew of carpenters), also
operate as a team, planning and improving their work together.
Measurement and the analysis of data are very important parts of process
improvement. Collectively this measurement and analysis of data is referred
to as statistical process control (SPC). Good data help employees at all
levels make better and more-informed decisions. Management and team
members receive instruction on SPC and how to use it as part of process
improvement.
The processes to be examined can be selected by a quality steering com-
mittee or other means. Suppose, for example, that a construction company
has been having problems with accidents. A steering committee might form
a quality-improvement team to investigate the problem. The team may
include superintendents, foremen, mechanics, truck drivers, and others who
can provide meaningful input to the problem. Potential causes of accidents
would be identified, and solutions proposed. A pilot study would be im-
plemented to see if the proposed solution works on a limited scale. If so,
then the solution can be implemented companywide. Subsequent perfor-
mance would be measured and evaluated to see if further action should be
taken. Safety is just one of many areas and processes that have been studied
by construction companies practicing T O M with success (Oswald and Burati
1992; Chase 1993).
Focus on Employees
TQM recognizes that every employee has significant potential to make
improvements not only in his or her own function, but to see and make
known needs for improvements in other areas. This potential is tapped
through a combination of

9 Motivating
9 Instilling the internal customer concept
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9 Training, as mentioned earlier

9 Providing a meaningful orientation for new employees on the com-
pany, its customers, and the company's quality policies
9 Providing a safe, clean, stimulating and satisfying work environment
9 Encouraging two-way communication and employee suggestions
9 Breaking down communications barriers inside and outside of the
organization
9 Allowing and encouraging employee participation in planning, prob-
lem solving, and decision-making
9 Providing individual and team recognition for quality improvement

Also required is a system to solicit employee suggestions and a system

to measure their satisfaction. A suggestion system can help accomplish the
former, and an annual or biannual survey can help accomplish the latter.
Indeed, construction companies who practice TQM utilize employee sug-
gestions and surveys to determine employee attitudes, to identify employee
needs that are not being satisfied, and to obtain employee recommendations
for improvement (Chase 1993).
Construction companies that implement TQM have a strong focus on
employees. Their processes include special career-development plans, em-
ployee stock ownership, enhanced training, employee involvement, and
recognition (Chase 1993).

Continuous Improvement
The upper part of the structure in Fig. 2 is "Continuous improvement."
This feature distinguishes TQM from short-term management fixes. With
TQM, everybody within the organization is looking constantly for ways to
improve--always looking for 100% customer satisfaction and error-free
performance. The focus is not on the 80% that is going well, but is instead
on the 20% (often more) that isn't.

CONCLUSION
This paper outlined the basic elements of TQM for construction, as prac-
ticed by both design and construction firms. TQM is paying dividends for
companies who have chosen to adopt it. However, TQM works better when
all parties involved in the design and construction of facilities practice TQM,
not just contractors. The construction industry can benefit by involving more
owners and designers.

APPENDIX. REFERENCES
Applying TQM to the design and construction of buildings; Proc., 3rd Workshop on
TQM in Building Design and Construction. (1991). Iowa State University, Ames,
Iowa.
Chase, G. W. (1993). Implementing TQM in a construction company. Associated
General Contractors of America (AGC), Washington, D.C.
Chase, G. W., and Federle, M. O. (1992). "Implementation of TQM in building
design and construction." J. Mgmt. in Engrg., ASCE, 8(4), 329-339.
Deming, W. E. (1986). Out of the crisis. Massachusetts Institute of Technology
(MIT), Cambridge, Mass.
Deming, W. E. (1982). Quality, productivity, and competitive position. Massachusetts
Institute of Technology (MIT), Cambridge, Mass.
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Gitlow, H. S., and Gitlow, S. J. (1987). The Demingguide to quality and competitive
position. Prentice-Hall, Inc., Englewood Cliffs, N.J.
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