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GRADUATION THESIS Major: International Business Administration THE APPLICATION OF TOTAL QUALITY MANAGEMENT: A CASE STUDY OF RAILWAY CONSTRUCTION CORPORATION JSC ThiNganHang.com ThiNganHang.com
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i TABLE OF CONTENTS TABLE OF CONTENTS...........................................................................................i ACKNOWLEDGEMENT.......................................................................................iv ABSTRACT ............................................................................................................v LIST OF FIGURES AND TABLE .........................................................................vi LIST OF ABREVIATION ................................................................................... viii CHAPTER 1: INTRODUCTION............................................................................1 1.1Research purpose .............................................................................................1 1.2Research objectives and scope .........................................................................2 1.3Research questions ...........................................................................................2 1.4Research methodology .....................................................................................4 1.5Research structure............................................................................................4 CHAPTER 2: LITERATURE REVIEW OF TOTAL QUALITY MANAGEMENT.......................................................................................................6 2.1Overview about quality management system...................................................6 2.2.1 Definition of total quality management.....................................................6 2.2.2 Total quality management evolution .........................................................7 2.2.3 EFQM Excellence Model ........................................................................11 2.2Quality management system in construction ................................................13 2.2.1 Quality defined in construction ...............................................................13 2.2.2 ISO 9001:2008 standards.........................................................................13 ThiNganHang.com2.2.32.2.4 The effectiveness of implementing a quality management system .........Obstacles to implement quality management systems ............................1920 2.3Critical success factors of TQM implementation in construction firms ......22 2.3.1 Leadership................................................................................................22 2.3.2 Resource management .............................................................................23 2.3.3 Strategies and plan ...................................................................................24 2.3.4 Process management................................................................................24 ThiNganHang.com
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ii 2.3.5 Customer satisfaction...............................................................................25 2.3.6 Training and education ............................................................................26 2.3.7 Continuous improvement.........................................................................26 2.3.8 Communication........................................................................................27 CHAPTER 3: RESEARCH METHOD ................................................................28 3.1About Vietnam Railway Construction Corporation JSC..............................28 3.1.1 Backgrounds of the company ..................................................................28 3.1.2 The existing application of total quality management in Railway Construction Corporation JSC..........................................................................32 3.2Research sources ............................................................................................34 3.2.1 Primary data.............................................................................................34 3.2.2 Secondary data.........................................................................................35 3.2.3 Research sources......................................................................................36 3.3Sample selection .............................................................................................36 3.3.1 Population ................................................................................................36 3.3.2 Sample selection ......................................................................................37 3.4Data collection procedures.............................................................................38 3.4.1 Pilot study ................................................................................................38 3.4.2 Developing the interviews questions .......................................................39 3.4.3 Developing questionnaires.......................................................................40 CHAPTER 4: RESEARCH RESULTS ................................................................46 4.1Business results before applying total quality management ........................46 ThiNganHang.com4.1.1standards implementation.Total quality management system of the company prior to ISO 9001................................................................................46 4.1.2 Business results before applying total quality management system .......50 4.2Analysis of benefits and costs of Railway Construction Corporation JSC before applying total quality management ....................................................51 4.3The status of TQM Implementation in Railway Construction Corporation JSC .................................................................................................................52 4.3.1 The extent of implementation of Quality management systems .............52 ThiNganHang.com
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iii 4.3.2 The implementation of EFQM Excellence Model’s Enables and Results Criteria ..............................................................................................................56 4.4Analysis of TQM Implementation in Railway Construction Corporation JSC ..................................................................................................................69 4.4.1 Relationship of TQM practices and business results...............................69 4.4.2 The effects of TQM practices on business results...................................71 4.4.3 Barriers faced by the Vietnam Railway Construction Corporation JSC in the implementation of quality improvement initiatives. ..................................73 CHAPTER 5: CONCLUSION AND RECOMMENDATION ...........................78 5.1Conclusion ......................................................................................................78 5.2Recommendation ............................................................................................79 REFERENCES ........................................................................................................83 APPENDIX A: QUESTIONNAIRES....................................................................86 APPENDIX B: QUESTIONS FOR INTERVIEW SECTION ...........................95 APPENDIX C: 20 ELEMENTS OF ISO 9001 .....................................................96 ThiNganHang.com ThiNganHang.com
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iv ACKNOWLEDGEMENT I would like to express my deep gratefulness for the patience, carefulness, knowledgeable guidance and constant encouragement of my supervisor, MSc. Nguyen Khanh Hung. His valuable advices are very essential to improve my graduation thesis quality. Besides, I am thankful to Project Department and all employees of Railway Construction Corporation JSC and CAS Global because of providing me the required materials and data to complete this research project. The research is involved in various discussions and interviews in order to contribute to its structure and quality. Therefore, the assistance of MSc. Nguyen Khanh Hung, Project Department of Railway Construction Corporation JSC and CAS Global is precious and is acknowledged for their time and patience. Finally, I would like to give my special thanks to my family and friends for their sympathy when I conduct this study. ThiNganHang.com ThiNganHang.com
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v ABSTRACT The development of modern society leads to diversified demands of customers to the products or services which they intend to pay for. These demands are including the high quality and also the values which customers can get from the products or services to serve their lives. Especially in construction industry, in order to meet the customer demands, the construction firms need to have a quality management system which controls all activities effectively and efficiently in both internal and external business. Therefore, the framework for management and inovations of processes in construction industry has attracted the most interest. This research work has identified and addressed the important issues related to the implementation of total quality management in Railway Construction Corporation JSC. The main aims of this study are not only to improve the understanding of total quality management but also to present and evaluate the current situation of implementing the quality management system in the company. Furthermore, one of the main aims of this study is to identify and highlight the current barriers faced by Railway Construction Corporation in the implementation of total quality management philosophy. All these aims are conducted based on data which are collected by qualitative method and compared with the standard criteria of current quality management system and EFQM Excellence Model. By then, the findings of this thesis bring the status, the advantages and barriers in the implementation of quality management system in Railway Construction Corporation. The conclusions are drawn to sum up the results which are collected ThiNganHang.comfromrecommendations which consist of the individual ideas of the author are made up .the study. Then, based on the results in the conclusion section, It is hopeful that theses recommendations can help the company increase productivity, improve the business performance and develop the quality of the products and services in Railway Construction Corporation JSC. ThiNganHang.com
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vi LIST OF FIGURES AND TABLE Figure 2.1: EFQM Excellence model ................................................................. 11 Figure 2.2: RADAR logic .................................................................................... 11 Figure 2.3: ISO 9001 process flow ...................................................................... 16 Figure 2.4: Critical success factors of TQM - Resource management ................ 21 Figure 2.5: Critical success factors of TQM - Process management ................... 22 Figure 3.1: Personel in Management Board of RCC ........................................... 27 Figure 3.2: Personnel in General Director of RCC.............................................. 27 Figure 3.3: Departments of head office of RCC .................................................. 28 Figure 3.4: Departments of head office of RCC .................................................. 28 Figure 3.5: Primary data....................................................................................... 31 Figure 3.6: Secondary data................................................................................... 32 Figure 3.7: Data collection procedure.................................................................. 34 Figure 4.1: Process of implementing the quality management system................ 43 Figure 4.2: Results of business performance with ISO 9001 principles.............. 47 Figure 4.3: Results of business performance with ISO 9001 elements ............... 50 Figure 4.4: Results of EFQM's enables - Leadership .......................................... 51 Figure 4.5: Results of EFQM's enables - Policy and strategy.............................. 53 ThiNganHang.comFigure 4.6: Results of EFQM's enables - People managementFigure 4.7: Results of EFQM's enables - Partnership and resources ................... 55............................ 54 Figure 4.8: Results of EFQM's enables - Process ................................................ 57 Figure 4.9: : Results of EFQM's results - Customer results................................. 58 Figure 4.10: Results of EFQM's results - People results ..................................... 59 Figure 4.11: Results of EFQM's results - Society results .................................... 60 ThiNganHang.com
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vii Figure 4.12: Results of EFQM's results - Business results .................................. 61 Figure 4.13: Effects of TQM practices on business results ................................. 65 Figure 4.14: Barriers in the TQM implementation .............................................. 68 Table 2.1: Total quality management evolution .................................................... 9 Table 2.2: ISO 9001 elements.............................................................................. 14 Table 3.1: Sample selection for interview section ............................................... 33 Table 3.2: Sample selection for questionnaires ................................................... 33 Table 4.1: Results of evaluation performance with ISO 9001 principles ............ 47 Table 4.2: Results of business performance with ISO 9001 elements................. 49 Table 4.3: Results of EFQM's enables - Leadership............................................ 51 Table 4.4: Results of EFQM's enables - Policy and strategy............................... 52 Table 4.5: Results of EFQM's enables - People management ............................. 53 Table 4.6: Results of EFQM's enables - Partnership and resources .................... 55 Table 4.7: Results of EFQM's enables - Process ................................................. 56 Table 4.8: Results of EFQM's results - Customer results .................................... 57 Table 4.9: Results of EFQM's results - People results......................................... 58 Table 4.10: Results of EFQM's results - Society results...................................... 59 ThiNganHang.comTable 4.11: Results of EFQM's results - Business results ................................... 61Table 4.12: Effects of TQM practices on business results................................... 65 Table 4.13: Barriers in the TQM implementation................................................ 67 ThiNganHang.com
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viii LIST OF ABREVIATION RCC Railway Construction Corporation Joint Stock Company TQM Total quality management QSM Quality system management EFQM European Foundation for Quality Management ISO The International Organization for Standardization ThiNganHang.com ThiNganHang.com
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