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

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  • Neyestani, Behnam

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, 2017. "Developing an Appropriate Performance Measurement Framework for Total Quality Management in Construction, and other Industries," OSF Preprints 72mgv, Center for Open Science.
    • Handle: RePEc:osf:osfxxx:72mgv
    DOI: 10.31219/osf.io/72mgv
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    References listed on IDEAS

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    1. 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.
    2. 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.
    3. 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.
    4. 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.
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