Customer Satisfaction and Total Quality Management in Construction

This dissertation investigates the impact of Total Quality Management (TQM) on customer satisfaction within the construction industry, focusing on Barratt Developments PLC. The study aims to assess TQM practices, analyze customer satisfaction levels, and determine the relationship between TQM implementation and customer satisfaction. Utilizing a primary survey technique with online questionnaires, data was collected from customers to understand their perspectives. The findings highlight the importance of reducing defects and waste in maintaining total quality, emphasizing that customer satisfaction is crucial for project development and progress. Key benefits of customer satisfaction include improved communication, process enhancement, goal evaluation, and change monitoring. The research concludes with recommendations for Barratt Developments PLC to improve customer satisfaction and quality management practices.

DISSERTATION
(An analysis of the impact of total quality
management in increasing customer satisfaction in
the construction industry: A study of Barratt
Developments PLC)

ACKNOWLEDGMENT
I want to give my sincere thanks to my mentor who supported me throughout this
dissertation. He gives me motivation and raises my confidence level in completing this
dissertation. It was all because of my mentor who guided me all through the research and I was
able to follow correct path. On the other hand, I would also like to thank my family members and
friends who motivated me and guided me throughout this way. Due to their cooperation and
support I am able to finish this thesis with full quality.

ABSTRACT
In order to retain their loyal customers it is becoming highly essential for companies to
strength their Total Quality Management (TQM) process. For the same, there are several factors
which should be provided to consumers in an appropriate ways. These factors are price, quality,
support services, effective policies, purchase value, Timeliness, production efficiency,
uniqueness and innovation, etc. TQM is a process through which overall quality and
performance of employees can be improved and they are able to enhance their level of customer
satisfaction. Construction can be characterised as a specific type of project industry with some of
the specific features. It is a complete system industry by which heavy customer involvement in
the product life cycle are the norm. In this regards, the present study takes place in order to
determine the role of total quality management increasing customer satisfaction. For the same,
construction industry Barratt Developments PLC is taken into consideration. TQM is highly
associated with the quality assurance. It can also be define as a program covering activities
highly essential to provide quality in work to meet the project requirements as well. Barratt
development is highly focused on delivering the highest quality homes through excellence across
all aspects of construction. Quality in construction is too important to enhance the profitability of
system.
In order to gather appropriate information data has been gathered by the way of using
primary survey technique. Under this, online questionnaire survey methodology has been taken
into consideration on the basis of which different questions have been asked to customers. After
analysing their responses it has been concluded that within the construction industry one of the
key sources of maintaining total quality is reducing defects and wastage of raw materials. It is
also being concluded that customer satisfaction is a most important factor in the better
development and progress of construction projects. With this, most common benefits associated
with customer satisfaction are improvement in communication process, recognition of the
demand of enhancement in the process, evaluation of progress towards the goals, monitoring the
accomplished changes.

TABLE OF CONTENTS
CHAPTER 1: INTRODUCTION....................................................................................................1
1.1 Background of the study........................................................................................................1
1.2 Research aim..........................................................................................................................3
1.3 Research objectives...............................................................................................................3
1.4 Research questions.................................................................................................................3
1.5 Rationale of study..................................................................................................................3
1.6 Significance of the study.......................................................................................................4
1.7 Structure of the report............................................................................................................5
CHAPTER 2: LITERATURE REVIEW.........................................................................................7
2.1 Introduction............................................................................................................................7
2.2 Customer satisfaction in construction industry......................................................................7
2.3 Major concepts of Total quality management.......................................................................8
2.4 Customer satisfaction levels of Barratt Developments PLC...............................................12
2.5 Impacts of TQM in terms of influencing satisfaction level of customers within construction
industry......................................................................................................................................13
2.6 Summary..............................................................................................................................16
2.7 Conceptual framework.........................................................................................................17
CHAPTER 3: RESEARCH METHODOLOGY...........................................................................18
3.1 Introduction..........................................................................................................................18
3.2 Research Philosophy............................................................................................................18
3.3 Research Design..................................................................................................................19
3.4 Data collection method........................................................................................................19
3.5 Sampling method.................................................................................................................20
3.6 Data analysis plan................................................................................................................21

3.7 Accessibility issues..............................................................................................................21
3.8 Ethical issues.......................................................................................................................22
3.9 Research limitations.............................................................................................................22
CHAPTER 4: DATA ANALYSIS AND RESULTS....................................................................23
4.1 Introduction..........................................................................................................................23
4.2 Data Analysis.......................................................................................................................23
4.3 Thematic Analysis...............................................................................................................23
4.4 Descriptive Statistics...........................................................................................................34
4.5 Cross Tabulations................................................................................................................36
4.6 Hypothesis Testing..............................................................................................................40
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................45
5.1 Conclusion...........................................................................................................................45
5.2 Recommendations................................................................................................................49
REFERENCES..............................................................................................................................51
Books and Journals....................................................................................................................51
Online........................................................................................................................................53
APPENDIX....................................................................................................................................55
Questionnaire for customers of Barratt Development Plc.........................................................55

CHAPTER 1: INTRODUCTION
1.1 Background of the study
According to (Goetsch and Davis (2014) customers are considered as a most important
parts of any organization. In order to attain higher competitive advantage and increasing sales
margin of company it is highly essential to keep customers satisfied. For the same, now day’s
organizations are looking for better strategies through which they can keep their customers
satisfied and motivated as well. Nanda (2005) has given different factors which should be
provided to consumers in an appropriate ways. These factors are price, quality, support services,
effective policies, purchase value, Timeliness, production efficiency, uniqueness and innovation,
etc. By maintaining all these factors effectively, companies are able to attract more number of
customers and maintaining their target base as well. According to Sallis (2014) quality is one of
the major aspects which affects the total satisfaction level of customers in both the positive as
well negative way.
In order to retain their loyal customers it is becoming highly essential for companies to
strength their Total Quality Management (TQM) process. Yang (2003) stated that the whole
process of TQM can be summarized as a management system for a customer focused
organizations. This system can effectively involve all employees in continual improvement. By
this, employee’s performance can be enhanced and they are able to perform more appropriately.
For this, organizations might use various strategies, data as well as effective communication in
order to integrate the quality discipline within an organization. Moreover, Total Quality
Management (TQM) is a wide management approach and aimed to attain long term success in
future business with a strong focus on customer’s satisfaction. This approach depends on
involvement of all employees of an organization in improving culture, process, products and
services. Reducing defects and wastage of raw materials are also considered as important
function of TQM.
Besterfield (2011) argues that TQM views an organization as a collection process. It
maintains that companies must strive to continuously improve these processes. They can easily
maintain this with the help of incorporating the knowledge and experiences of workers. Sallis
(2014) has given effective process for the TQM and stated that “Do the right things, right the
first time, every time. According to Caruana (2002) customer satisfaction is a most important
factor in the better development and progress of construction projects. With the help of this,
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owners are able to develop better relationships with all the customers. In order to make their
customers loyal they require being concerned about the expected influence on the future projects
as well as word of mouth reputations. However, so far, customer satisfaction in the construction
industry is under researched. One of the major approaches for the satisfaction level of customers
in the construction has been on house building. Low level of customer’s satisfaction is one of the
major research issues of the current study (Gomez, McLaughlin and Wittink, 2004).
Construction industry of UK is facing this problem due to different factors such as time, cost,
quality, client orientation, communication skills and response to complaints. Organizations of
this industry are not capable enough to satisfy their customers on these aspects. It affects the
overall performance of the company. Therefore, the current research study focuses on this
research problem.
Oakland (2014) stated that there are various ways through which overall satisfaction level
of consumers can enhance. For the same, company needs to go through the market research in
order to identify the market needs. On the basis of same, demands of customers can be fulfilled
and organizations can keep them happy and satisfied (Customer satisfaction: a key component of
TQM, 2012). TQM is a process through which overall quality and performance of employees can
be improved and they are able to enhance their level of customer satisfaction. It helps in
preventing mistakes from occurring and maintains the smooth processing of all the business
functioning. Besterfield (2011) argues that continuous improvement is highly linked with the
process of TQM and it provides effective and appropriate detail execution of all the work
elements. With the help of this, continuous improvement takes place as per the capabilities,
people, processes and technological impact. It highly deals with the changing process and
improving results. More importantly with the help of improving capabilities organizations are
able to produce better results in the future. There are mainly five areas on the basis of which
capability improvement can be more focused with such as demand generation, supply generation,
technology, operations and people capability.
In this regards, the present study takes place in order to determine the role of total quality
management increasing customer satisfaction. For the same, construction industry Barratt
Developments PLC is taken into consideration. It is one of the largest residential property
development companies. This organization is situated in UK and highly focused with the quality
of building homes. This company has been building quality new homes since 1958 and due to
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this they are able to increase the number of intended target audience. This study is highly
focused with the TQM system of construction industry. For the same, systematic procedure will
contain appropriate review of literature review as well as tools and techniques for the evaluation
of better findings.
1.2 Research aim
Aim of the current research is highly related with the customer satisfaction within the
construction industry. There is a huge impact of total quality management in increasing customer
satisfaction in the construction industry. In order to study the same, a case study of Barratt
Developments PLC” has been taken into consideration. It helps in determining most effective
ways through which quality services can be provided to customers and impact on their level of
satisfaction as well.
1.3 Research objectives
 To assess the practice of Total Quality management at Barratt Developments PLC.
 To analyze the customer satisfaction levels of Barratt Developments PLC.
 To analyze the impact of Total Quality management on Customer Satisfaction.
 To suggest appropriate strategies for improving customer’s satisfaction and quality
management of Barratt Developments PLC.
1.4 Research questions
1. What TQM practice is being followed by Barratt Development PLC?
2. How Total Quality Management can influence the customer’s satisfaction level at Barratt
Developments PLC?
3. What are the major strategies which can be used by Barratt Developments PLC for
improving customer’s satisfaction and quality management of organization?
1.5 Rationale of study
It is becoming highly essential these days to go through the effective process for
maintaining customer satisfaction. There are various ways which keeps consumer satisfied and
happy. In today’s highly competitive environment it is highly difficult to cope up with the
changing needs and demands of customers. One of the major issues in this study is highly related
with the fulfilment of those needs and demands. Construction industry is facing the problem of
low customer’s satisfaction and this problem affect the financial performance of the company in
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negative manner. In order to keep growing with the changes and maintain higher competitive
advantage it is highly essential for companies to enhance the level of customer satisfaction. For
the same, market research of their firms needs to take place timely so that better interaction with
consumers can also be maintained. Here, market analysis helps in meet out with these changing
needs and demands. It clearly reflects that poor quality of the products and services of
organizations of this industry decline the customer’s satisfaction. It is a contemporary issue of
investigation because most of the organizations are investing huge amount of money in
improving quality management aspects and Barratt Developments PLC is one of these
organizations. But, there are no assurance about that weather this investment in quality
management can increase the customer’s satisfaction or not. It is regarded as a big issue and a
major problem due to which whole satisfaction level can be decreased.
The present study clearly incorporate that there is both positive as well as negative impact
between TQM and customer’s satisfaction in construction industry. It might lead to enhance the
sales and profit margin of company while on the other hand; it also decreases the level of
motivation among workers. For the same, construction industry is facing several challenges
regarding home building quality as well as material. So, for determining the worth of this
investment researcher wants to conduct this investigation which will help in getting information
about the impact of total quality management on customer’s satisfaction of Barratt Developments
PLC.
1.6 Significance of the study
The present topic or area of research has its huge significance for all the scholars and
researchers that are interested in terms of carrying out their study in the given subject matter. It is
becoming highly important these days to keep customers satisfied. However, due to the changing
needs and demands of customers it is becoming more and more difficulties for business
organizations to cope with the changes and the requirements of customers. In addition to this,
accomplishment of this study will give clear and detail information about the impact of total
quality management of customer satisfaction (McCollum, 2004). Therefore, it will be significant
for the whole construction industry because by which they can improve their quality
management as well as customer’s satisfaction. Improving quality and customer satisfaction has
received considerable attention in recent years. Significance of the present topic can be measured
with the success of any organization. Among the several key concepts, TQM is customer focused
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due to which all their requirements must be met first every time. Being a customer oriented and
consumer centric firm, organization can acquire higher profit margin. Their whole success
depends on their behaviour and how well they understand and meet out the needs of all their
guests. TQM as a management system is just not the series of program that puts satisfaction
before profit. It can be define as a system that comprises a set of integrated tools in order to
accomplish business objectives. It is highly essential to keep customers satisfied and happy.
There are mainly two types of consumers i.e. internal (employees) as well as external (end
customers). Both are needed to be satisfied in terms of quality. Internal customers are employees
those constitute crucial component of TQM implementation (Barraza1 and Lingham, 2008).
Workers most of the time easily understands the needs of customers and identify quality
problems for solutions. Moreover, satisfied staff members are the ambassadors for their
respective firms and they are able to create values for organization.
The significance of customer satisfaction has been emphasized by many authors within
the construction industry. So, researcher has decided to conduct an investigation on determining
impact of Total Quality Management in increasing Customer Satisfaction. It will be significant
for construction industry and other organizations because it will help in getting appropriate
strategies for improving quality and increasing the level of customer’s satisfaction.
Further, it will be significant for PhD research scholars for conducting similar study on
construction or other industries in future. Including this, it will also provide appropriate
strategies to different companies for increasing customer’s satisfaction and total quality
management department of organization.
1.7 Structure of the report
Chapter 1: Introduction
This is the initial section of any research where researcher can identify its aims and
objectives on the basis of which whole study takes place. This chapter brief out the general
concepts and terms as per the given subject matter.
Here, researcher also talks about the importance of conducting this study as well as
rationale. Moreover, it can be stated that this is the base chapter of any study and it also helps in
forming the basis of other chapters.
Chapter 2 Literature review
This is considered as most important chapters of any research as it helps in framing most
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effective findings on the basis of gathered information. In this chapter, it is highly essential to
give appropriate and most relevant information about the selected topic. Moreover, it discuss
about the theoretical concepts, models, knowledge etc. related to the subject. Here, the researcher
will make effective contributions on framing literatures with the help of past studies made by the
previous researchers. All these articles will help in understanding research problem and getting
insights to resolve these problems in effective manner. It is the most effective way and process
where researcher will try to identify the research gaps that exist in the literature.
Chapter 3 Research methodology
This is another most important chapter which reflects the use of various tools and
techniques such as research design, philosophy, sampling, data collection, approach, ethical
consideration, limitations etc. With the help of applying these tools, researcher will easily find
out all the fundamental aspect of the study and frame a most suitable findings as well as
conclusion.
Chapter 4 data analysis
Under this section, appropriate evaluation can take place on the basis of which primary
and secondary information is derived from study. Moreover, this section helps in analysing data
with the help of selected techniques in above chapters. Here the data is analysed by selection of
appropriate technique of analysis depending upon the nature of the research. Under this, most
suitable findings will be frame on the basis of which effective conclusion can be draw.
Chapter 5 Conclusions and recommendations
This is the last chapter of any research in which conclusion will be drawn after analysing
all the knowledge and aspects regarding the given subject matter. It gives total summary of the
study on the basis of which appropriate recommendations are made.
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CHAPTER 2: LITERATURE REVIEW
2.1 Introduction
This chapter is considered as a most important chapter in which researcher can fill all the
gaps of previous and existing literatures. In addition to this, literature review can also be defining
as one of the most important methods for collecting information from past research studies on
related subjects. There are various past studies done by different authors on total quality
management as well as increasing customer satisfaction. Researcher will choose such historical
studies on total quality management, customer satisfaction with regards to construction industry
of UK. Summary of literature will help in getting appropriate insights in understand the research
problem and drawing a better conclusion as well.
2.2 Customer satisfaction in construction industry
According to Gomez, McLaughlin and Wittink (2004) customers are the key source of
any organization which helps in enhancing the sales as well as profit margin of company. In
today’s highly competitive and volatile world it is highly essential to maintain the satisfaction
level of customers. For the same, an organization needs to provide them quality services so that
customer’s satisfaction can be enhanced. Besterfield (2011) stated that it is not enough to make
customers happy but keeping them loyal towards company is highly essential.
Construction can be characterised as a specific type of project industry with some of the
specific features. It is a complete system industry by which heavy customer involvement in the
product life cycle are the norm. According to Nanda (2005) construction has had a several
problems in producing quality in a customer oriented manner due to the complex nature of this
industry. There are various special characteristics of project specification associated with
construction industry.
Talib, Rahman and Qureshi (2012) argue that within construction industry customer
satisfaction has been considered as a dimension of quality. Yogev (2010) on the other hand
specify that satisfaction with the end state resulting from having consuming a product or a
service. Moreover, it clearly brings that customer as a body incorporate the interest of the buyer
of construction services. There are various authors who have presented that importance of
customer satisfaction as well as its use for evaluating quality as per the customer’s` needs. The
benefits of satisfaction are highly associated with the consumer loyalty, future purchase as well
as positive verbal communication (Agha, 2011). By having positive communication employees
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