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Psz 19:16 (pind. 1/97)
UNIVERSITI TEKNOLOGI MALAYSIA
BORANG PENGESAHAN STATUS TESIS♦♦♦♦
JUDUL: QUALITY PERFORMANCE OF ISO 9000/2001 CERTIFIED CONTRACTORS
SESI PENGAJIAN: 2006/2007
GUI HUN CHUEN Saya
(HURUF BESAR)
mengaku membenarkan tesis (PSM/ Sarjana/ Doktor Falsafah)* ini disimpan di Perpustakaan
Universiti Teknologi Malaysia dengan syarat-syarat kegunaan seperti berikut:
1. Tesis adalah hakmilik Universiti Teknologi Malaysia
2. Perpustakaan Universiti Teknologi Malaysia dibenarkan membuat salinan untuk
tujuan pengajian sahaja.
3. Perpustakaan dibenarkan membuat salinan tesis ini sebagai bahan pertukaran
antara institusi tinggi.
4. ** Sila tandakan (√ )
SULIT (Mengandungi maklumat yang berdarjah keselamatan
atau kepentingan Malaysia seperti yang termaktub di
dalam AKTA RAHSIA RASMI 1972)
TERHAD (Mengandungi maklumat TERHAD yang telah
ditentukan oleh organisasi/badan di mana penyelidikan
dijalankan)
TIDAK TERHAD
Disahkan oleh:
_______________________________ ____________________________
(TANDATANGAN PENULIS) (TANDATANGAN PENYELIA)
Alamat Tetap: IR. DR. ROSLI MOHAMAD ZIN
19, Lorong 4B, Taman Mabel,
Jalan Laksamana Cheng Ho, Nama Penyelia
93350 Kuching, Sarawak.
Tarikh : JULY 2007 Tarikh : JULY 2007
CATATAN: * Potong yang tidak berkenaan
** Jika tesis ini SULIT atau TERHAD, sila lampirkan surat daripada pihak
berkuasa/ organisasi berkenaan dengan menyatakan sekali sebab dan tempoh
tesis ini perlu dikelaskan sebagai SULIT atau TERHAD.
♦ Tesis dimaksudkan sebagai tesis bagi Ijazah Doktor Falsafah dan Sarjana secara
penyelidikan, atau disertai bagi pengajian secara kerja kursus dan penyelidikan,
atau Laporan Projek Sarjana Muda (PSM).
√
“I hereby declare that I have read this project report
and in my opinion this project report is sufficient
in terms of scope and quality for the award of the degree of
Master of Science (Construction Management).”
Signature : .............................................
Name of Supervisor : Ir. Dr. Rosli Mohamad Zin
Date : .............................................
i
QUALITY PERFORMANCE OF ISO 9000/2001
CERTIFIED CONTRACTORS
GUI HUN CHUEN
A project report submitted in partial fulfillment of the
requirements for the award of the degree of
Master of Science (Construction Management)
Faculty of Civil Engineering
Universiti Teknologi Malaysia
JULY 2007
ii
I declare that this project report entitled
“Quality Performance of ISO 9000/2001 Certified Contractors”
is the result of my own research except as cited in the references.
The report has not been accepted for any degree
and is not concurrently submitted in candidature of any other degree.
Signature : .............................................
Name : Gui Hun Chuen
Date : .............................................
iii
DEDICATION
To:
Lord Jesus,
My Beloved Family,
&
Soo Lin.
Thank you for your love and support.
iv
ACKNOWLEDGEMENTS
First of all, I would like to express my sincere appreciation to my project
supervisor, Ir. Dr. Rosli Mohamad Zin of the Faculty of Civil Engineering, Universiti
Teknologi Malaysia, for his generous advice, patience, guidance and encouragement
throughout the duration of my study.
Secondly, I would also like to express my gratitude to Ir. Mukthar Che Ali,
the manager of CIDB Johor, who has given me a lot of guidance and advice on this
project. This project has been conducted together with CIDB Malaysia; therefore I
would like to thank all those involved directly or indirectly.
Furthermore, I would like to express my sincere thanks to all the ISO 9000
certified contractors, who generously spent their precious time to participate in the
questionnaire survey of this project. Their honest information, opinions and
comments are very useful indeed. My seniors and friends, who had provided all
kinds of assistance and support, also deserved my special thanks.
Finally, I am most thankful to my parents and family for their continuous
support and encouragement given to me unconditionally in completing this project
report. Without the contribution of all those mentioned above, this work would not
have been possible.
v
ABSTRACT
This research is dealing with the issues of quality performance of ISO
certified contractors in Malaysia. This research focused on evaluating the quality
performance of these contractors. Hence, the objectives of this study were (a) to
identify the benefits experienced by contractors after having ISO 9000/2001
certification, (b) to identify the factors affecting contractor’s quality performance,
and (c) to identify the monitoring and controlling tool used by contractors in
assessing their quality performance. The collection of primary data has been done by
using a questionnaire survey. Frequencies statistical analysis and average indexing
technique were used in data analysis with the help of SPSS 13.0 and Microsoft
Office Excel 2003. In general, the overall levels of achievements by contractors after
ISO certification were considered satisfactory. Nearly all contractors benefited from
having ISO certification. The most significant factor that can affect contractors’
quality performance was on-time delivery of projects to their clients. By having ISO
certification, the majority of contractors had improved their average delay and
average wastage from 10% to 5% each. There are still rooms for improvements at
the monitoring and controlling aspect, such as not all contractors prepared PQP and
ITP. In addition, the majority of contractors did not adopt PDCA methodology in
performing data analysis and did not develop Quality Performance Indicator (QPI)
that can be used to reflect their quality performance. It is hoped that this research
will contribute to ISO 9000 certified contractors in their quest for continuous
improvement in quality and becoming a core business success for their organisation.
vi
ABSTRAK
Penyelidikan ini adalah mengenai isu-isu prestasi kualiti kontraktor ISO di
Malaysia. Penyelidikan ini memberi tumpuan kepada penilaian prestasi kualiti
kontraktor-kontraktor tersebut. Oleh itu, objektif penyelidikan ini adalah (a) untuk
mengenalpasti faedah-faedah yang dinikmati oleh kontraktor setelah mendapat
pengiktirafan ISO 9000/2001, (b) untuk mengenalpasti faktor-faktor yang boleh
mempengaruhi prestasi kualiti kontraktor dan (c) untuk mengenalpasti kaedah
pengawasan dan pengawalan yang digunakan oleh kontraktor dalam menilai prestasi
kualiti mereka. Data primer telah dikumpulkan melalui kaedah tinjauan borang soal-
selidik. Analisis statistik frekuensi dan teknik indeks purata digunakan dalam
menganalisis data dengan bantuan perisian SPSS 13.0 dan Microsoft Office Excel
2003. Secara amnya, tahap pencapaian keseluruhan kontraktor setelah mendapat
pengiktirafan ISO boleh dikatakan mencapai tahap yang memuaskan. Hampir
kesemua kontraktor mendapat manfaat daripada persijilan ISO. Faktor yang paling
mempengaruhi prestasi kualiti kontraktor adalah penyerahan projek mengikut
tempoh masa kepada klien. Dengan memperolehi pengiktirafan ISO, kebanyakan
kontraktor berjaya memperbaiki purata kelewatan serta pembaziran mereka dari 10%
ke 5%. Dari aspek pengawasan dan pengawalan, masih terdapat ruang untuk
diperbaiki, antaranya seperti tidak semua kontraktor menghasilkan PQP dan ITP.
Tambahan pula, kebanyakan kontraktor tidak mengamalkan metodologi PDCA
dalam melaksanakan analisis data dan tidak menghasilkan suatu petunjuk prestasi
kualiti yang boleh digunakan untuk menggambarkan prestasi kualiti mereka.
Diharap penyelidikan ini dapat memberi sumbangan kepada kontraktor ISO dalam
usaha mempertingkatkan kualiti kerja serta dapat menjadi asas kepada kejayaan
organisasi mereka.
vii
TABLE OF CONTENTS
CHAPTER TITLE PAGE
DECLARATION ii
DEDICATION iii
ACKNOWLEDGEMENTS iv
ABSTRACT v
ABSTRAK vi
TABLE OF CONTENTS vii
LIST OF TABLES xiv
LIST OF FIGURES xv
LIST OF APPENDICES xviii
1 INTRODUCTION
1.1 Introduction 1
1.2 Issues and Problem Statements 2
1.3 Research Objectives 5
1.4 Research Scopes and Limitations 5
1.5 Research Significance 5
1.6 Research Approach 7
1.6.1 Research Methodology Flow Chart 8
2 LITERATURE REVIEW
2.1 ISO Background 9
2.2 Development Of The ISO 9000 Standards 10
viii
2.2.1 1987 Version 12
2.2.2 1994 Version 12
2.2.3 2000 Version 13
2.3 Popularity Of ISO 9000 13
2.4 Brief Scenario In Malaysia 17
2.5 The Concepts In Relation To ISO 9000 18
2.5.1 Quality Definitions And Principles 20
2.5.1.1 Quality 20
2.5.1.2 Quality Control (QC) 21
2.5.1.3 Quality Assurance (QA) 21
2.5.1.4 Quality Management (QM) 22
2.5.1.5 Quality System 22
2.5.2 Total Quality Management (TQM) 23
2.5.2.1 The Concept of Customer 23
2.5.2.2 Customer And Contractual Relationships 25
2.6 Benefits Of Quality Management 26
2.6.1 Cost Savings Of Quality Management 28
2.7 ISO 9000 Quality System Framework 29
2.7.1 Developing A Quality System To ISO 9000 32
2.7.2 Certification 34
2.7.3 SIRIM’s Role In The Implementation Of ISO
9000 34
2.7.3.1 SIRIM’s Assessment And Registration
Procedures 36
2.8 Application Of ISO 9000 QMS Standards To
Construction 38
2.8.1 Management Responsibility (Clause 4.1) 39
2.8.1.1 Quality Policy (Clause 4.1.1) 40
2.8.1.2 Organisation (Clause 4.1.2) 40
2.8.1.3 Management review (Clause 4.1.3) 42
2.8.2 Quality Systems (Clause 4.2) 43
2.8.2.1 Quality Manual 44
2.8.2.2 Quality Procedures 45
2.8.2.3 Project Quality Plans 46
ix
2.8.2.4 Quality Records 46
2.8.3 Contract Review (Clause 4.3) 47
2.8.3.1 Pre Tender Review 48
2.8.3.2 Post Tender Review 49
2.8.4 Design Control (Clause 4.4) 50
2.8.5 Document Control (Clause 4.5) 50
2.8.6 Purchasing (Clause 4.6) 51
2.8.6.1 Schedule 52
2.8.6.2 Urgent Site Purchase 52
2.8.7 Customer Supplied Products (Clause 4.7) 53
2.8.8 Product Identification And Traceability (Clause
4.8) 54
2.8.9 Process Control (Clause 4.9) 55
2.8.9.1 Quality Control On Site 56
2.8.10 Inspection And Testing (Clause 4.10) 57
2.8.10.1 Procedure 57
2.8.11 Inspection, Measuring And Test Equipment
(Clause 4.11) 59
2.8.12 Inspection And Test Status (Clause 4.12) 59
2.8.13 Control Of Non-Conformance (Clause 4.13) 59
2.8.14 Corrective And Preventive Action (Clause 4.14) 60
2.8.15 Handling, Storage, Packaging, Preservation And
Delivery Of Building Material (Clause 4.15) 61
2.8.16 Quality Records (Clause 4.16) 61
2.8.17 Reviews And Audits (Clause 4.17) 61
2.8.18 Training (Clause 4.18) 63
2.8.19 Servicing (Clause 4.19) 63
2.8.20 Statistical Techniques (Clause 4.20) 63
2.9 Critical Steps In The Implementation Of ISO 9000 In A
Construction Company 64
2.10 Advantages Of ISO 9000 Registration For The
Construction Industry 66
x
3 RESEARCH METHODOLOGY
3.1 Introduction 68
3.2 Justification of Paradigm and Methodology 68
3.3 Research Design 69
3.4 Research Stage 1 - Preliminary Research 71
3.5 Research Stage 2 - Data Collection 71
3.5.1 Semi-structured Interview 73
3.5.2 The Questionnaire 73
3.5.3 Sampling 77
3.6 Research Stage 3 - Data Processing and Analysis 78
3.6.1 Check and Verify the Returns 78
3.6.2 Coding 79
3.6.3 Cleaning the Data 79
3.6.4 Analysis 80
3.6.4.1 Frequencies Statistical Analysis 80
3.6.4.2 Average Index Analysis 81
3.7 Research Stage 4 - Writing Up 82
3.8 Ethical Considerations 82
4 ANALYSIS AND RESULTS
4.1 Introduction 84
4.2 Section A: Basic Company Profile 85
4.2.1 CIDB Grade 85
4.2.2 Region of Companies 85
4.2.3 Number of Permanent Staff 86
4.2.4 Public Listed Companies 87
4.3 Section B: Overall Information on ISO QMS 88
4.3.1 Certification of ISO Version 1994 88
4.3.2 Certification of ISO Version 2000 89
4.3.3 ISO Certification Body 89
4.3.4 Ways of ISO Certification 90
4.3.5 Cost of ISO Certification 91
xi
4.3.6 Opinions on Difference Between ISO Version
1994 and ISO Version 2000 91
4.3.7 Opinions on Advantages of ISO 2000 Compare to
ISO 1994 92
4.3.8 Main Reason For Going ISO Certification 93
4.3.9 Opinions on Benefits After ISO Certification 94
4.3.10 General Perceptions on ISO QMS Expenditure 95
4.3.11 Opinions on ISO QMS Helps Improve Company
Competitiveness 95
4.3.12 Opinions on ISO QMS Helps Improve Project
Productivity 96
4.3.13 Opinions on ISO QMS Helps Secure Overseas
Project 97
4.3.14 Encounter Difficulties in Maintaining ISO QMS 97
4.3.15 Types of Difficulties Encountered 98
4.4 Section C: Achievements After ISO Certification 99
4.5 Section D: Overall Quality Performance 102
4.5.1 Quality Objectives Pertaining To Project
Performance 102
4.5.2 Completion of Projects on Schedule 103
4.5.3 Average Delay Before and After Implementing
ISO QMS 104
4.5.4 Average Wastage Before and After Implementing
ISO QMS 105
4.6 Section E: Control and Monitoring Tool 106
4.6.1 Preparation of Project Quality Plan (PQP) 106
4.6.2 Person-In-Charge of Preparing PQP 106
4.6.3 Opinions on Standardization of the Structure of
PQP 107
4.6.4 Preparation of Inspection and Test Plan (ITP) 108
4.6.5 Person-In-Charge of Preparing ITP 108
4.6.6 Approval of All ITPs by Clients/Consultants 109
4.6.7 Appointment of QA/QC Manager 110
xii
4.6.8 Person-In-Charge of Handling QA/QC Matters
Besides QA/QC Manager 110
4.6.9 Opinions on Appointment of A Dedicated Project
Quality Controller 111
4.6.10 Data Employed in Monitoring and Analyzing
Quality Performance 112
4.6.11 Parameters Employed in Accessing Project Quality
Performance 113
4.6.12 Requirements on Analysis of Data (Clause 8.4) 114
4.6.13 Adoption of PDCA Methodology in Performing
Data Analysis 114
4.6.14 Common Tools for Data Analysis 115
4.6.15 Development of Quality Performance Indicator
(QPI) 116
4.6.16 Preparation of Periodic QA/QC Report 116
4.6.17 Softwares Employed in Performing Data Analysis 117
4.6.18 Opinions on Fragmentation of Current Practice of
Data Analysis 118
4.6.19 Internal Auditors 118
4.6.20 Attendance of Courses Related to QA/QC Tools 119
4.7 Section F: Additional Supportive Roles By CIDB 120
4.7.1 Development of a Well-Structured Approach for
Analysis of Data 120
4.7.2 Development of Software That Can Integrate
QA/QC Reports 121
4.7.3 Formulation of The Standard Quality Performance
Evaluation Form (QPEF) 121
4.7.4 Development of Performance Based Rating
System Using The Standard QPEF 122
4.7.5 Development of Quality Performance Indicator
(QPI) 123
4.8 Discussion 123
xiii
5 CONCLUSIONS AND RECOMMENDATIONS
5.1 Introduction 126
5.2 Summary of Findings 127
5.2.1 Benefits Experienced by Contractors after
Certification by ISO 127
5.2.2 Factors Affecting Contractor’s Quality
Performance 128
5.2.3 Monitoring and Controlling Tools Used by
Contractors 128
5.3 Research Limitations 129
5.4 Recommendations for Further Research Study 130
5.5 Summary 130
REFERENCES................................................................................................. 132
APPENDICES .........................................................................................135 - 152
xiv
LIST OF TABLES
TABLES TITLE PAGE
Table 2.1: National equivalents of ISO 9000 standards 30
Table 2.2: Comparison of ISO 9001, 9002 and 9003 requirements 31
Table 4.1: Results of overall achievements of contractors after ISO
certification 99
Table 5.1: Summary of achievements by contractors 127
Table 5.2: Factors affecting contractor’s quality performance 128
xv
LIST OF FIGURES
FIGURES TITLE PAGE
Figure 2.1: Structure of ISO 9000 Standards 19
Figure 2.2: Flow of outputs in a construction project 24
Figure 2.3: SIRIM’s Assessment and Registration Process 36
Figure 3.1: Research title and its variables 70
Figure 4.1: CIDB grade of ISO certified contractors 85
Figure 4.2: Region of ISO certified contractors 86
Figure 4.3: Number of permanent staff of ISO certified contractors 86
Figure 4.4: Public listed ISO certified contractors 87
Figure 4.5: ISO 1994 certified contractors 88
Figure 4.6: ISO 2000 certified contractors 89
Figure 4.7: ISO certification body for contractors 90
Figure 4.8: Certification ways of contractors 90
Figure 4.9: Cost of certification for contractors 91
Figure 4.10: Opinions of contractors on difference between ISO 1994 and
ISO 2000 92
Figure 4.11: Opinions of contractors on advantages of ISO version 2000 92
Figure 4.12: Main reason for contractors going for ISO certification 93
Figure 4.13: Opinions on whether benefits were experienced after ISO
certification 94
Figure 4.14: General perception of contractors on their ISO QMS
expenditure 95
xvi
Figure 4.15: Opinions on whether ISO helps improve company
competitiveness 96
Figure 4.16: Opinions on whether ISO helps improve project productivity 96
Figure 4.17: Opinions on whether ISO helps secure overseas projects 97
Figure 4.18: Opinions on whether contractors encounter difficulties in
maintaining their ISO QMS 97
Figure 4.19: Types of difficulties encountered by contractors 98
Figure 4.20: Level of achievements for different aspects after ISO
certification 101
Figure 4.21: Overall quality objectives of ISO certified contractors 102
Figure 4.22: Opinions on whether most of the projects are completed on
schedule 103
Figure 4.23: Average delay of contractors’ projects before having ISO
QMS 104
Figure 4.24: Average delay of contractors’ projects after having ISO QMS 104
Figure 4.25: Average wastage in contractors’ projects before having ISO
QMS 105
Figure 4.26: Average wastage in contractors’ projects after having ISO
QMS 105
Figure 4.27: Preparation of PQP by ISO certified contractors 106
Figure 4.28: Personnel of contractors who prepare PQP 107
Figure 4.29: Opinions of contractors on standardization of the structure of
PQP 107
Figure 4.30: Preparation of ITP by ISO certified contractors 108
Figure 4.31: Personnel of contractors who prepare ITP 109
Figure 4.32: Approval of contractors’ ITPs by clients/consultants 109
Figure 4.33: Appointment of QA/QC Manager in contractors’ companies 110
Figure 4.34: Personnel of contractors handling quality matters besides QA
Manager 111
Figure 4.35: Opinions on whether ISO certified contractors should appoint
a dedicated project quality controller 111
Figure 4.36: Data employed in monitoring and analysing quality
performance 112
xvii
Figure 4.37: Parameters employed in accessing project quality
performance 113
Figure 4.38: Opinions on requirements on analysis of data according to
Clause 8.4 114
Figure 4.39: Adoption of PDCA methodology by contractors in data
analysis 114
Figure 4.40: Common tools employed by contractors in performing data
analysis 115
Figure 4.41: Development of QPI by contractors 116
Figure 4.42: Preparation of periodic QA/QC report by contractors 116
Figure 4.43: Softwares employed by contractors in performing data
analysis 117
Figure 4.44: Opinions on whether current practice of data analysis is
fragmented 118
Figure 4.45: Amount of internal auditors of ISO certified contractors 119
Figure 4.46: Attendance of QA/QC related courses by contractors’ staffs 119
Figure 4.47: Opinions on whether CIDB should develop a well-structured
approach for data analysis 120
Figure 4.48: Opinions on whether CIDB should develop software that can
be adopted by ISO certified contractors 121
Figure 4.49: Opinions on whether CIDB should formulate the standard
QPEF that can be used generally by clients 122
Figure 4.50: Opinions on whether CIDB should further develop
performance based rating system using standard QPEF 122
Figure 4.51: Opinions on whether CIDB should develop QPI as a
performance benchmark 123
xviii
LIST OF APPENDICES
APPENDICES TITLE PAGE
A Questionnaire Form 135
B List of Respondents 149
1
CHAPTER 1
INTRODUCTION
1.1 Introduction
Quality is receiving attention around the world on an unprecedented scale.
Rising customer expectations and competition are setting new benchmarks for
quality in every sector. To a large extent, the changing political and economic
climate in the nineties has given quality assurance a new impetus. This trend has
continued into the new millennium. The reduction of the communist threat has
opened up new markets and resources, especially the People’s Republic of China.
The creation of regional trading groups, starting from the west with European Union,
the more recent Asean Free Trade Area (AFTA) and various budding equivalents in
the Asia Pacific region are altering the factors of competition and rewriting the rules
of international trade.
Therefore, harmonisation of standards is one of the strategies adopted to
facilitate trade within regions, and perhaps restrict entry from external suppliers
unless their products or services meet the same standards (Lam et al., 1994). One
international standard seems to be pervading all regions and industries. This
2
standard is quality assurance and it is increasingly recognised by buyers and
suppliers. Quality concepts are not new. They started emerging in the fifties mainly
from the United States which had undisputed economic domination outside the then
communist bloc. In the sixties, the Japanese, well-known for inferior products,
seriously embraced quality principles, mainly from American quality pioneer
Deming. The Total Quality Control (TQC) approach was established and vigorously
pursued. Within a decade, the Japanese had caught up and began to surpass the West
in terms of product types, technologies, as well as quality. Today, the Japanese are
so renowned for their pursuit of quality that every product in the market with the
label “Made in Japan” is an assurance of top quality for all consumers!
While knowledge of quality began to spread, there were different perceptions
for both suppliers and consumers. Consumers who were insistent on quality had to
understand the quality approach if their potential suppliers, who often adopted
principles and practices from one quality guru (Lam et al., 1994). A breakthrough
came when ISO 9000 quality standards were introduced to the world.
1.2 Issues and Problem Statements
The construction industry is a main industry which relates closely to the
country’s economic growth. When the economy booms, the construction industry
will follow in order to fulfil increasing demand. This is because the effective
demand for products and services will increase in relation to the increase of the
population and also when the income of the people increases. Therefore, various
development projects are carried out by the government and as well as the private
sectors. Among the mega construction projects carried out and completed since the
slow recovery of our economic downturn are such as Kuala Lumpur International
Airport (KLIA), Kuala Lumpur City Centre (KLCC) and Petronas Twin Tower,
3
Sepang Formula 1 Circuit, Stormwater Management And Road Tunnel (SMART),
and so on. These engineering breakthrough mega-projects have increasingly put
Malaysia on the international arena.
With the rapid development of the industry, the issues of quality and safety
are also rapidly gaining awareness from the public. Among these common issues are
such as inferior quality of construction materials, too many defects, delays in
completing works, carelessness in supervising site safety, high accident rates, and the
recent environmental impact issues. With the recent tragedies happening to some
local construction projects, the public’s confidence towards the image of our
construction industry has greatly reduced. Among the quality issues in our local
construction are such as the famous collapse of the Highland Tower Block A on 11th
of December 1993, the RM120 million Middle Ring Road 2 which requires an
additional RM70 million for repair works, the RM198 million Navy Recruit Training
Centre (Pularek) which had 7,032 defects which needed an additional RM13 million
to rectify, as well as the falling of a steel formwork which killed a company
executive on 30th
December 2005. According to Second Finance Minister Tan Sri
Nor Mohamed Yakcop and deputy Auditor-General Anwari Suri, the main reasons
are the contractors did not hire skilled and competent workers and the plans for the
projects were sub-standard (New Sunday Times, 4th
February 2007).
All these incidents clearly give us an indication that there is still work to be
done to improve the quality of works in our construction activities. Some time ago
on 15th
January 1993, the board of SIRIM has introduced the MS ISO 9000, a quality
standard system recognised throughout the world, to our local construction industry
(Wan Yusoff and Norizan Mansor, 1996). Realising the importance of Quality
Management System (QMS), some contractors are beginning to make application to
be certified, mainly through the board of SIRIM as well as others. In addition, in
order for contractors to ‘survive’ in a highly competitive market, they need to fulfil
all requirements by producing quality products within a competitive cost as well as
using minimal time. If they fail to achieve the required standard of quality, chances
are they are most likely to face the consequences of losing future projects. The level
4
of performance achieved by contractors will be determined by clients, independent
bodies, the organisation itself, and also by surrounding competitors.
Therefore, the root issue in quality performance is why it needs to be
measured and how? There are a few famous phrases from quality management gurus
such as “What gets measured gets done” and “If you can’t measure it, you can’t
manage it”, which in turn gives an answer to the root issue as mentioned. According
to Mokthar Abdullah (1996), “Quality improvement without measurement is like
hunting ducks at midnight without a moon – lots of squawking and shooting with
only random results and with a high probability of damage”. While principles from
quality pioneer Deming stress that quality measurements need to be assessed from
what is being done and not from what is being planned or termed as missions or
objectives.
In order to evaluate the quality performance, contractors need to set targets,
measure what has been achieved and compare with a set of standards, plus determine
the position of their competitors. Without evaluating the quality performance, all
efforts will be aimless and most of the time will only be subject to contractors’ own
taste or preference. As a result, it will be difficult for contractors to know whether
they are left behind in the competition or whether their products and services achieve
the quality standards that are currently being practiced.
In the construction industry, every project completed needs to be measured so
that the overall quality system can be improved. Currently, contractors are using
their own systems to measure their quality performance. Therefore, research needs
to be carried out to focus on a system that can effectively measure the quality
performance of ISO 9000 certified contractors. Besides, this also serves to evaluate
how far have they maintain their quality performance in the construction industry.
5
1.3 Research Objectives
(a) To identify the benefits experienced by contractors after having ISO
9000/2001 certification.
(b) To identify the factors affecting contractor’s quality performance.
(c) To identify the monitoring and controlling tool used by contractors in
assessing their quality performance.
1.4 Research Scopes and Limitations
Basically, this research project focuses on reviewing the Quality Management
System (QMS) of ISO 9000/2001 certified contractors registered with the
Construction Industry Development Board (CIDB) of Malaysia. The survey area
will cover the whole of Malaysia, but focus will be primarily on the central region,
especially contractors from the federal territory of Kuala Lumpur and the state of
Selangor.
1.5 Research Significance
CIDB as a statutory body established by the Malaysian Federal Government
back in 1994, plays an extremely important role in the continuous development of
6
the Malaysian construction industry. The Lembaga Pembangunan Industri
Pembinaan Malaysia Act 1994 has paved the way for the empowerment of CIDB
Malaysia to:
• Create a climate for a more vigorous development in the construction
industry.
• Carry out its functions as the enabling authority to help construction industry
Players overcome bureaucratic obstacles.
• Play the role of facilitator by addressing the current and future needs of the
Construction Industry
In short, the Act serves to encompass and embody the roles and functions of
CIDB Malaysia plus an instrument to monitor the development of the construction
industry via CIDB’s initiatives that are focused on charting a planned and systematic
growth of the industry. By utilising ISO 9000/2001 QMS, CIDB aims to improve
the quality along with the image of the industry as a whole. Without an effective
QMS, products or services are likely to face problems in meeting client’s satisfaction.
Hence, there is a need for an effective quality performance measurement
system with the target of continuous improvement. This research will bring benefits
to those directly involved in the construction industry, especially to the authorities
such as CIDB and also to all contractors, as well as to clients and consultants to a
certain extent. This research will also help CIDB identify the level of performance
by ISO 9000 certified contractors as well as factors that can affect quality
performance. Hopefully, this research will also contribute to ISO 9000 certified
contractors in their quest for continuous improvement in quality and becoming a core
business success for their organisations. Furthermore, it can act as a guideline for
clients and consultants in selecting the most competent contractors to carry out their
projects successfully and for the public to gain full confidence from the contractors’
end products.
7
1.6 Research Approach
(a) Preliminary Research/ First Stage Literature Review
Analysis of documents from various sources such as text books, journals, acts,
electronic medias, internet, reports, conference papers, previous research, etc
to gain a better understanding of the issues and problems to be studied.
(b) Data Collection
This includes utilising questionnaire to collect primary data. Questionnaire
will be designed and sent to all ISO 9000/2001 certified contractors in
Malaysia. In addition, a more thorough second stage literature review will be
carried out to collect secondary data.
(c) Data Analysis
Data collected will then be analysed either manually or by using computer
softwares such as SPSS and Microsoft Office Excel. Analysis methods will
be determined according to the suitability of each variable. Among the
methods to be used are such as average indexing analysis, frequencies
statistical analysis, and so forth. The purpose of data analysis is to answer
and explain the stated research objectives in the form of graphs, charts, tables,
writings, etc.
(d) Writing-up
This will be the final stage. This includes the process of documentation
together with summaries, conclusion, and future research recommendations
relevant to this topic.
8
1.6.1 Research Methodology Flow Chart
FIRST Stage: PRELIMINARY RESEARCH
SECOND Stage: DATA COLLECTION
Primary Data Secondary Data
THIRD Stage: DATA ANALYSIS
Manually Computer
FOURTH Stage: WRITING-UP
Identify Problems
Determine Research Field
Choosing Research Title
First Stage Literature Review
Issues & Problem Statements
Objectives & Scope of Research
Collection of Data
Questionnaires
~ ISO 9000/2001 Certified Contractors
Literature Review
~ Second Stage
Data Collection and Arrangement
Analysis of Data
Summary, Conclusion and Suggestions
Documentation
Interview
~ CIDB (Southern Branch) Manager
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