Construction Management: TQM, Six Sigma & Risk Analysis Report

This report provides a detailed analysis of Total Quality Management (TQM) and Six Sigma methodologies within the construction sector, emphasizing their importance in enhancing organizational productivity and reducing waste. It evaluates various tools and techniques used in developing TQM and Six Sigma programs, such as brainstorming, paired comparison, cause and effect diagrams, force field analysis, and DMAIC/DMADV matrices. The report also identifies Balfour Beatty as a UK-based civil construction organization that has successfully built a total quality culture. Furthermore, it addresses risk management in infrastructure projects, providing a risk allowance calculation for a piling operation, demonstrating how to manage potential monetary losses. The conclusion reinforces the significance of TQM and Six Sigma in improving efficiency and performance in construction.

CONSTRUCTION
MANAGEMENT

Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................3
Task-1a............................................................................................................................................3
Tools and techniques used in developing TQM and six sigma...................................................3
Civil construction organization....................................................................................................6
TASK-1b..........................................................................................................................................7
Risk management.........................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................1

INTRODUCTION
Total quality management and six sigma are the important aspect that is related with the
construction sector and every company. This is because on the one hand it would assist the
enhancement of the productivity of the organization and on the other side it reduce the wastage
and thereby raise efficiency (Westgard and Westgard, 2017). Majority of companies in the
construction sector including the Balfour Beatty which is one of the major construction company
would make focus towards this aspect. This report will discuss about the concept of TQM and
six sigma along with its various tools and techniques. Likewise, a practical exposure with the
construction company is also presented in this report.
MAIN BODY
Task-1a
Tools and techniques used in developing TQM and six sigma
TQM:
Total quality management is one of the important management approach that would lead
to assist the organization in achieving success with the consideration towards the feedback of
employees along with their high participation (Pambreni and et.al., 2019). It will also make focus
towards the raising of customer satisfaction and meeting of their need along with respecting the
social beliefs and values with the compliance of rules and regulation of the government. It make
an involvement of all the employees in the continuous improvement process along with the aim
of raining of customer satisfaction with the mode of enabling best quality product.
Tools and techniques:
Brainstorming:
This method make focus towards the generation of new idea from a small group of
people with an integration of their collective thinking. This technique also make focus towards
the encouragement of creative ideas and thinking (Soliman, 2020). This can be best applied as
generation of the problem, determination of its cause, identifying the possible solution followed
with developing an action plan.

Its major advantage would include the simulation of all the team members, generation of
creative ideas and thoughts, initiative and innovation. However, on a contrary note it also bear
certain disadvantages including a high involvement of cost and time, with an aspect of
occurrence of clashes and conflicts because of integration of more than one ideas.
Paired comparison:
As per this method prioritization and ranking of various alternatives with respect to the
organizational goal would be made. This means with the help of this method a paired comparison
would be made between various alternative would be made so that goal of the organization will
be accomplished (Darko and et.al., 2019).
Its advantage would include the determination of advantages of various alternatives so
that best option will be selected. The best possible solution with regard to the achieving of goal
would be selected. However, on a critical note it would not allow test with respect to the
statistical interferences. It will also include a great proportion of cost and time.
Cause and effect diagram:
As per this diagram the root cause of the problem would be identified. This diagram
shows the major cause of the issues with respect to the most possible impact (Jegan, 2020). With
the help of this diagram the problem would be identified with its causes along with the most
possible impact.
The advantage of this diagram is the determination of the causes of the problem along
with its impacts. The root cause would be identified. However, contrary to this the irreverent
potential cause will lead to confusion and wastage of time and it will not work in complex issues
because of the creation of messy diagram.
Force field analysis:
It is an important technique that would include the identification of forces that would
either help or restrict the planned change. With this analysis it would easy to analyse what would
work for and against the project. With the aspect of this analysis the root cause associated with
the problem would be able to get identified that may be followed with the taking of suitable
action and steps which would lead to minimise the negative impact.
Its benefit would include the clear analysis of the decision. Likewise, with the
identification of all the negative forces at the early stage it would be easy to take required steps
and actions so that the negative aspect will be minimised. But on the contra dictionary note it

would be said that the application of FFA would lead to raise the time and efforts. Likewise, with
the aspect of changing environment it would not be able to work.
Six sigma continuous improvement plan:
This is an important process that focus on reduction of variations in the process but at the
same time also lead to improve the capability. This method assumes that all the work is a process
and every process have variation but the major focus will be lied towards the raising of
capabilities and reduction of the variability (Arcidiacono and Pieroni, 2018). Its key concept
includes:
Critical with quality:
This is the most important attribute towards customers because the customers are more
cautious towards the quality aspect.
Defects:
It refers to the failure with delivery that is needed and want by customers.
Process capability:
This refers to the capability of the process with respect to its delivery. This shows the
efficiency of the company.
Variation:
These can be seen and felt by the customers in terms of quality issues and deviations.
Stable operations:
It always ensures that the process will be consistent and predictable so that the customer
satisfaction will be improved.
Design:
It refers to the designing that will meet the customer need. This will lead to raise the
customer satisfaction.
Tools and techniques:
DMAIC:
As per this technique the five aspects need to be considered and focus. The may include
the defining i.e. which aspect constitute the defect followed with measuring that is related with
data collection under which the data related with the issue would be collected. The next step is
the analysis under which the collected data will be analysed followed with the step of

improvement under which an improvement of the document will be made (Smętkowska and
Mrugalska, 2018). The last step involves the controlling under which the employees will be
educated on the best possible practice regarding the working.
The advantage of this tool would include the determination of shorter path that will lead
to positive results along with taking of friction that will lead to improvement. It also raises the
communication, accountability and visibility. But on the other side its major disadvantage
involve that a one size will not be applied to all the organization. also it will lead to create barrier
towards those organizations that rely on creativity.
DMADV matrix:
This technique also involves the major five aspects that may include the defining under
which what constitute defect will be defined and identified followed with the measurement that
involve the collection of data (Singh and et.al., 2020). The next step involves the analysis under
which a statistical analysis will be made that is followed with defining the best standard practice
against the issue. Lastly the verification will be done so that the best practice will be made
adopted.
The biggest advantage is to have an identification of the best standard so that that the
most suitable action against the issues will be raised. However, it would involve the aspect of
involvement of high proportion of time and cost. this may lead to delay in the process.
Thus, it would be right to state that with the aspect of adoption of the six sigma or the
total quality management an enhancement in the performance and the process of the working of
organization will be easy to get improvised. This will also lead to have continuous development
and improvement in the process of working and operation of the company so that the customer
expectation with respect to the company’s product will be raised. Likewise, it will also assist the
company in the improvement of its process.
Civil construction organization
Balfour Beatty is one of the leading international infrastructure company of UK that was
founded in 1909. With the efficient workforce the company is providing innovative as well as
efficient infrastructure to its customers that would further support the communities and raise the
economic growth of the of the country. Its headquarter is in London, UK (Balfour Beatty, 2021).

With the aspect of implication of Total quality management, the company has building a
total quality culture in its organization which would be considered as a major reason that is
associated with its operational excellence. With the aspect of TQM, Balfour Beatty is able to
make an establishment of total quality culture along with meeting and satisfying the needs of the
customers. This means TQM has not only assist the company in meeting customer need but it
will also lead to build a positive work culture and environment in the company. This means it
also play an important role towards the enhancement of organizational culture in terms of
making a synchronization of efforts of the employees.
As Balfour Beatty is a construction company under which it is highly important that the
TQM will be implemented so that the experience of the customers with respect to the company
would be enhanced. This is because with the aspect of TQM the unnecessary and non-useful
aspect with reference to the process of manufacturing and supply chain management will be
reduced that would lead to raise the efficiency of the processes of the company (Sader, Husti and
Daróczi, 2017). This way with the aspect of TQM along with raising of efficiency of the process,
the organizational efficiency would also raise in terms of the building of workforce and task
oriented culture. This would be right to state that Balfour Beatty with the aspect of TQM would
able to building string and positive work culture in its workplace.
In the same way with the aspect of TQM in the working operation of Balfour Beatty, it
would be able to improve the job satisfaction of the employees, raise the repeated customers,
reduced the aspect of rework, enhance the performance of budget, improvisation in the schedule
performance and various other. This shows that with the aspect of TQM the company would be
able to grab success and growth along with ensuring positive work culture and operational
excellence.
TASK-1b
Risk management
This is an important aspect which can be used to make a management of risk that would be
associated with the possible solution which would further bring best whole life value to the
project. Like every project, this infrastructure project also bear certain level of risk that may be
associated with its working. It is important that an analysis of the risk would be made so that
corrective action and mitigation of the concerned risk would be able to get execute. Along with

identification and management of risk it is equally important that the adequate risk allowances
will be made so that the company would be safeguarded with respect to the monetary and
financial loss that may occur during the course of operation of project.
Outcome (KD) Impact I (KD) Probability (P) (I*P) KD
Cost plan
allowances
1680000
Optimistic
outcome
180000 0.40 72000
Most likely
outcome
150000 0.50 75000
Pessimistic
outcome
300000 0.10 30000
Expected
monetary value
177000
Thus, a sum of 177000 will be added to the cost plan allowances for piling.
Amount that must be added to budget allocation for piling would be 1680000 because it will
be being an expected monetary value of 177000. This means with the aspect of making an
inculcation of this amount the company would be able to meet the risk.
CONCLUSION
From the above report it can be concluded that TQM and six sigma are the important
aspect related with the construction sector. With regard to their implication it would assist the
organization in raising its efficiency along with its performance. in the field of construction, the
concept of TQM and six sigma would assist the companies in raising the customer experience
along with building of positive work culture. This report also summarizes that how with the
aspect of TQM the companies would be able to meet its objectives in terms of raised
productivity, low wastage and high customer satisfaction.

REFERENCES
Books and journals
Arcidiacono, G. and Pieroni, A., 2018. The revolution lean six sigma 4.0. Int. J. Adv. Sci. Eng.
Inf. Technol. 8(1). pp.141-149.
Darko, and et.al., 2019. Review of application of analytic hierarchy process (AHP) in
construction. International journal of construction management. 19(5). pp.436-452.
Jegan, G.S., 2020. Awareness of Total Quality Management and Extent Used in Construction
Projects. International Journal of Construction Engineering and Planning. 6(2). pp.1-
7.
Pambreni, and et.al., 2019. The influence of total quality management toward organization
performance. Management Science Letters. 9(9). pp.1397-1406.
Sader, S., Husti, I. and Daróczi, M., 2017, October. Total quality management in the context of
Industry 4.0. In Synergy International Conferences (Engineering, Agriculture and
Green Industry Innovation).
Singh, and et.al., 2020. Six Sigma Methodology and Implementation in Indian Context: A
Review-Based Study. Advances in intelligent manufacturing, pp.1-16.
Smętkowska, M. and Mrugalska, B., 2018. Using Six Sigma DMAIC to improve the quality of
the production process: a case study. Procedia-Social and Behavioral Sciences. 238.
pp.590-596.
Soliman, M.H.A., 2020. Brainstorming for Problems Solving: How Leaders Can Achieve a
Successful Brainstorming Session. Mohammed Hamed Ahmed Soliman.
Westgard, J.O. and Westgard, S.A., 2017. Six sigma quality management system and design of
risk-based statistical quality control. Clinics in Laboratory Medicine. 37(1). pp.85-96.
Online reference
Balfour Beatty., 2021. [Online]. Available through < https://www.balfourbeatty.com/how-we-
work/ >
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