Costs and Benefits of ISO9000-based Quality Management Systems to Construction Contractors

Thomas Ng, Ekambaram Palaneeswaran, Mohan Kumaraswamy


Abstract

ISO9000-based Quality Management Systems(QMSs) have been widely applied by manycontractors with a hope to improve the productquality and hence achieve the desiredobjective of client satisfaction. However,setting up and implementing an ISO9000-based QMS is not without cost. Unless thecontractors can benefit from such system, it isunlikely that the senior management ofcontracting firms will commit to implement anISO9000-based QMS. In this paper, the costsof setting up and implementing an ISO9000-based QMS are assessed through aquestionnaire survey. The results arecompared with the benefits attained by thecontractors. It is found that contractors couldbe benefited from the use of ISO9000-basedQMS both tangibly and intangibly. Based on amore conservative estimation of some tangiblebenefits, a basic operational cost-benefit ratioof one to three was derived from the results ofthe survey. Since the latest version ofISO9000 has been fully implemented for anumber of years, the perception of contractorson the benefits gained after theimplementation of ISO9001:2000 is alsoexamined in this paper.

Full Text

PDF

References

Abdul-Rahman, H. (1997) Some observations on the issues of quality cost in construction, International Journal of Quality & Reliability Management, 14(5), 464-481.

Al-Momani, A.H. (2000) Examining service quality within construction processes, Technovation, 20(11), 643-651.

Barber, P., Graves, A., Hall, M., Sheath, D., and Tomkins, C. (2000) Quality failure costs in civil engineering projects, International Journal of Quality & Reliability Management, 17(4/5), 479-492.

Chan, A.P.C. and Tam, C.M. (2000) Factors affecting quality of building projects in Hong Kong, International Journal of Quality & Reliability Management, 17(4/5), 423-441.

Chan, K.W. and Chan, H.C. (1997) Meeting quality assurance standards in the construction industry: Experience from Hong Kong, International Journal of Management, 14(1), 87-91.

Chin, K.S. and Choi, T.W. (2003) Construction in Hong Kong: success factors for ISO9000 implementation, Journal of Construction Engineering and Management, ASCE, 129(6), 599-609.

Chin, S. Kim, K. and Kim Y.S. (2003) A process-based quality management information system, Automation in Construction, 13(2), 241-259.

Chini, A.R. and Valdez, H.E. (2003) ISO 9000 and the U.S. construction industry, Journal of Management in Engineering, ASCE, 19(2), 69-77.

CIDA (1995) Measuring up or Muddling through: Best Practice in the Australian Non-residential Construction Industry, Construction Industry Development Agency (CIDA) and Master Builders Australia, Sydney, Australia, 59-63.

Crowe, T.J., Noble, J.S. and Machimada, J.S. (1998) Multi-attribute analysis of ISO 9000 registration using AHP, International Journal of Quality & Reliability Management, 15(2), 205-222.

Dick, G.P.M., (2000) ISO 9000 certification benefits, reality or myth? The TQM Magazine, 12(6), 365-371.

Dissanayaka, S.M., Kumaraswamy, M.M., Karim, K. and Marosszeky, M. (2001) Evaluating outcomes from ISO 9000-certified quality systems for Hong Kong constructors, Total Quality Management, 12(1), 29-40.

Kumaraswamy, M.M. and Dissanayaka, S.M. (2000) ISO 9000 and beyond: from a Hong Kong construction perspective, Construction Management and Economics, 18(7), 783-796.

Lee, T.Y. (1998) The development of ISO 9000 certification and the future of quality management – A survey of certified firms in Hong Kong, International Journal of Quality & Reliability Management, 15(2), 162-177.

Leung, H.K.N., Chan, K.C.C. and Lee, T.Y. (1999) Costs and benefits of ISO 9000 series: a practical study, International Journal of Quality & Reliability Management, 16(7), 675-690.

Liu, A.M.M. (2003) The quest for quality in public housing projects: a behaviour-to-outcome paradigm, Construction Management and Economics, 21(2), 147-158.

Love, P.E.D. (2002) Auditing the indirect consequences of rework in construction: a case based approach, Managerial Auditing Journal, 17(3), 138-146.

Love, P.E.D. and Irani, Z. (2003) A project management quality cost information system for the construction industry, Information & Management, 40(7), 649-661.

Love, P.E.D. and Li, H. (2000) Overcoming the problems associated with quality certification, Construction Management and Economics, 18(2), 139-149.

Low, S.P. and Wee, D. (2001) Improving maintenance and reducing building defects through ISO 9000, Journal of Quality to Maintenance Engineering, 7(1), 6-24.

Low, S.P. and Yeo, H.K.C. (1998) A construction quality costs quantifying system for the building industry, International Journal of Quality & Reliability Management, 15(3), 329-349.

Low, S.P., Kee, T.B., Leng, A.A.A. (1999) Effectiveness of ISO 9000 in raising construction quality standards: some empirical evidence using CONQUAS scores, Structural Survey, 17(2), 89-108.

Motazed-Keivani, R., Ali, R., Ghanbari-Parsa, and Kagaya, S. (1999) ISO 9000 standards: perceptions and experiences in the UK construction industry, Construction Management and Economics, 17(1), 107-119.

Structural Engineering Department (1990) Wastage Control of Construction Materials, Housing and Development Board, Singapore.

Tam, C.M. (1996) Benefits and costs of the implementation of ISO 9000 in the construction industry of Hong Kong, Journal of Real Estate and Construction, 6(1), 53-66.

Tang, S.L. and Kam, C.W. (1999) A survey of ISO 9001 implementation in engineering consultancies in Hong Kong, International Journal of Quality & Reliability Management, 16(6), 562-574.

Zeng, S.X., Wang, H.C., Tam, C.M. and Deng, Z.M. (2004) Upgrading quality of housing construction in China contractors' vis-a-vis supervisors' views, International Journal for Housing Science and its Applications, 28(3), 187-200

Article Metrics

Metrics Loading ...

Metrics powered by PLOS ALM