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Developing an Appropriate Performance Measurement Framework for Total Quality Management in Construction, and other Industries

Author

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  • Neyestani, Behnam
  • Juanzon, Joseph Berlin P.

Abstract

Total quality management (TQM) is a set of opinions and ideas that widely called “management philosophy”. This management technique is able to assist the construction firms in improving continuously the organization's performance, in order to satisfy customers and survive in the market. The success of TQM implementation is tightly dependent on identifying and selecting the appropriate critical success factors (CSFs), quality tools, and performance measures (KPIs) within TQM framework. Doubtlessly, a set of suitable performance measures (indicators) has a significant role to verify and ensure that TQM implementation can successfully achieve its aims in the organization. Thus, the main purpose of this paper was to develop a suitable framework to assess the effects of TQM implementation on organization's performance in construction industry. For this aim, the study was conducted a comprehensive literature review to specify the existing key performance indicators (KPIs) from 26 TQM frameworks that formulated by scholars. In data analysis, the only 20 KPIs were found of 26 TQM studies. The extracted KPIs (20) classified based on four dimensions of balanced scorecard (BSC), and then arranged from highest to lowest frequency for each perspective of BSC. Finally, a total of ten KPIs were determined and presented within BSC system as an appropriate performance measures framework, which enables evaluating critical areas that very vital to the success of TQM implementation in construction firms at project and enterprise levels.

Suggested Citation

  • Neyestani, Behnam & Juanzon, Joseph Berlin P., 2016. "Developing an Appropriate Performance Measurement Framework for Total Quality Management in Construction, and other Industries," MPRA Paper 76601, University Library of Munich, Germany, revised 30 Nov 2016.
    • Handle: RePEc:pra:mprapa:76601
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    References listed on IDEAS

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    1. Boon In Tan & Kee Luen Wong & Chee Keong Choong, 2013. "TQM and Family Owned Business: Performance and Sustainability," Diversity, Technology, and Innovation for Operational Competitiveness: Proceedings of the 2013 International Conference on Technology Innovation and Industrial Management,, ToKnowPress.
    2. Md. Mazharul Islam & M.A. Karim & Essam Mohammed Habes, 2015. "Relationship between quality certification and financial & non-financial performance of organizations," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(6), pages 119-132, Special I.
    3. Martinez-Costa, Micaela & Martinez-Lorente, Angel R. & Choi, Thomas Y., 2008. "Simultaneous consideration of TQM and ISO 9000 on performance and motivation: An empirical study of Spanish companies," International Journal of Production Economics, Elsevier, vol. 113(1), pages 23-39, May.
    4. Prajogo, Daniel I. & Sohal, Amrik S., 2006. "The relationship between organization strategy, total quality management (TQM), and organization performance--the mediating role of TQM," European Journal of Operational Research, Elsevier, vol. 168(1), pages 35-50, January.
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    Citations

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    Cited by:

    1. Neyestani, Behnam, 2017. "Principles and Contributions of Total Quality Mangement (TQM) Gurus on Business Quality Improvement," MPRA Paper 77282, University Library of Munich, Germany.
    2. Neyestani, Behnam, 2017. "Effectiveness of Quality Management System (QMS) on Construction Projects," OSF Preprints 8xmak, Center for Open Science.
    3. Neyestani, Behnam, 2017. "Effects of ISO 9001 on Non-Financial and Financial Performance in the Organizations: A Review," MPRA Paper 76799, University Library of Munich, Germany.
    4. Neyestani, Behnam, 2017. "Quality Costing Technique: An Appropriate Financial Indicator for Reducing Costs and Improving Quality in the Organizations," MPRA Paper 77375, University Library of Munich, Germany.
    5. Neyestani, Behnam & Juanzon, Joseph Berlin P., 2017. "ISO 9001 Standard and Organization's Performance: A Literature Review," OSF Preprints db5mv, Center for Open Science.
    6. Neyestani, Behnam, 2017. "Principles and Contributions of Total Quality Mangement (TQM) Gurus on Business Quality Improvement," OSF Preprints u6msf, Center for Open Science.
    7. Neyestani, Behnam, 2017. "Quality Costing Technique An Appropriate Financial Indicator for Reducing Costs and Improving Quality in the Organizations," OSF Preprints k8r7m, Center for Open Science.
    8. Neyestani, Behnam, 2016. "Effectiveness of Quality Management System (QMS) on Construction Projects," MPRA Paper 76754, University Library of Munich, Germany.
    9. Rashmi R. Mohanty & A. Subash Babu, 2022. "Quality management in a fractional horsepower electrical motor industry: a case study," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(5), pages 2764-2789, October.
    10. Nishant Agrawal & Meysam Rabiee & Mona Jabbari, 2024. "Contextual relationships in Juran’s quality principles for business sustainable growth under circular economy perspective: a decision support system approach," Annals of Operations Research, Springer, vol. 342(1), pages 47-77, November.

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    More about this item

    Keywords

    Total Quality Management (TQM); Performance Measurement Framework; Performance Measurement System (PMS); Key Performance Indicators (KPIs); and; Balanced Scored (BSC).;
    All these keywords.

    JEL classification:

    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction

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