Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects

Shahid Mahmood

doi:doi:10.11648/j.ajset.20210603.16

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Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects

Shahid Mahmood

Published in American Journal of Science, Engineering and Technology (Volume 6, Issue 3)

Received: 23 April 2021 Accepted: 10 June 2021 Published: 10 September 2021

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Abstract

Cost of Poor Quality (COPQ) or cost of failure gets inducted in construction projects during work execution due to failure in preventing defects, reworks and wastage of resources. Poorly defined project objectives, inadequate feasibility studies coupled with poor project planning and designing lead to revision of designs and reworks at later stage during project execution, causing cost and time overrun. Losses of construction companies on this account can go up to 40% of revenues. Since these losses (reworks and wastage of resources etc.) are normally not measured and recorded in the accounting system, therefore, they mostly remain hidden and the management does not know its gravity. Therefore, there is a need for reconnaissance and finding solution to minimize the losses of construction industry. Construction industry has a significant share in the socio-economic development of any country and provides employment to skilled/unskilled labor/poor masses and helps to alleviate poverty. Success of construction industry is dependent on performance of construction companies. The performance of construction companies can be improved by minimizing the COPQ. Completely eliminating COPQ might not be possible being uneconomical, however, it can be minimized with a proactive approach and effective management of Critical Success Factors (CSF), which were yet unknown. This study was therefore taken up to identify the CSF that can help the project management to reduce or minimize COPQ. This research study was successful in exploring and identifying forty (40) CSF falling in five areas of project management (Planning, Organizing, Executing, Monitoring and Controlling) that have the potential to decrease the losses on account COPQ from construction projects. Since it would not be possible for the project management to address and tackle all the forty CSF at the projects therefore, ranking in terms of criticality has been carried out for all the identified CSF. The analysis have revealed that 17 CSF fall in the list of top ten (some CSF have equal scores). It has also be identified that Planning is the most critical stage of any project because six of the top ten CSF pertain to Planning stage. According to ranking of top ten CSF, project Planning is at the top followed by Organizing, Controlling, Monitoring and Executing. It highlights the importance of Planning in any project; therefore, project planning may be completed very carefully so that no revision is needed during the project execution stage and COPQ remains at the lowest possible level.

Published in	American Journal of Science, Engineering and Technology (Volume 6, Issue 3)
DOI	10.11648/j.ajset.20210603.16
Page(s)	84-88
Creative Commons	This is an Open Access article, distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution and reproduction in any medium or format, provided the original work is properly cited.
Copyright	Copyright © The Author(s), 2021. Published by Science Publishing Group

Keywords

Critical Success Factors, Cost of Poor Quality, Construction Companies, Construction Projects

References

[1]	Board of Investment, Government of Pakistan, Report (2019-2020) https://invest.gov.pk/housing-and-construction 09 June 2021.
[2]	Claudia Barbará, Edmundo Eutrópio C. de Souza, Rosangela Catunda (2008) “MODELING THE COST OF POOR QUALITY” Proceedings of the 2008 Winter Simulation Conference. S. J. Mason, R. R. Hill, L. Mönch, O. Rose, T. Jefferson, J. W. Fowler eds. 978-1-4244-2708-6/08/$25.00 ©2008 IEEE.
[3]	Cleland & Ireland (2004) Project Manager's Portable Handbook, 2nd Edition, McGraw-Hill, USA, p- 210.
[4]	Cooke-Davies, The "real" success factors on projects, International Journal of Project Management” vol. 20, pp. 185–190, [Electronic].
[5]	Daniel, D. Ronald (1961) "Management Information Crisis," Harvard Business Review, Sept.-Oct.
[6]	David L. Goetsch, Stanley B Davis, Quality Management-Introduction to Total Quality Management of Production, Processing and Services 3^rd Addition Prentice-Hall, New Jersy (June 1999).
[7]	Juran J. M (1992) Juran on Quality by Design, The New Steps for Planning Quality into Goods and Services, Free press.
[8]	Lim & Mohamed (1999) Criteria of project success: an exploratory re-examination, International Journal of Project Management Vol. 17, No. 4, pp. 243-248, [Electronic].
[9]	Raza Ali Khan (2008) “Role of Construction Sector in Economic Growth: Empirical Evidence from Pakistan Economy. “First International Conference on Construction In Developing Countries (ICCIDC–I) “Advancing and Integrating Construction Education, Research & Practice” August 4-5, 2008, Karachi, Pakistan.
[10]	Nat R Briscoe Frank M Gryna, “Assessing the Cost of Poor Quality in a Small Business” Qimpro Quarterly Special www.qimpro.com (01.07.11).
[11]	Philip B. Crosby (1978) “Quality is Free: The Art of Making Quality Certain” McGraw-Hill Co. Inc.
[12]	Retnari Dian M, Amrin Rapi, and Nilda (2010), The Measurement of Quality Performance with Sigma Measurement and Cost of Poor Quality as a Basis for Selection Process of Quality Improvement, IMECS 2010, proceedings Hong Kong http://www.iaeng.org/publication/IMECS2010/IMECS2010_pp1552-1556.pdf
[13]	Shahid Mahmood, Shahrukh, Dr. Ali Sajid (2012) Exploring the Critical Success Factors for Construction Companies of Developing Countries, Research Journal of Social Science & Management, Vol-1, No 12, page 8-16.
[14]	Shahid Mahmood, Nadeem lshaq Kureshi (2014) "Reducing Hidden Internal Failure Costs in Road Infrastructure Projects by Determination of Cost of Poor Quality, a Case study", Engineering, Technology and Innovation (ICE), 2014 International ICE Conference. IEEE Xplore DOl: 10.1109/ICE.2014.6871608 Page(s): 1- 10.
[15]	Shahid Mahmood, Nadeem Ishaq Kureshi (2016) Enhancing Productivity And Profitability By Determination Of Poor Quality Cost, Using Dashboard Management Information System. Journal of Quality and Technology Management, Volume XI, Issue II, December 2015, page 1-29.
[16]	Tam, C. M., Zeng, S. X. & Deng, Z. M., (2004), Identifying elements of poor construction safety management in China. Safety Science, 42: 569–586.

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APA Style

Shahid Mahmood. (2021). Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects. American Journal of Science, Engineering and Technology, 6(3), 84-88. https://doi.org/10.11648/j.ajset.20210603.16

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ACS Style

Shahid Mahmood. Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects. Am. J. Sci. Eng. Technol. 2021, 6(3), 84-88. doi: 10.11648/j.ajset.20210603.16

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AMA Style

Shahid Mahmood. Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects. Am J Sci Eng Technol. 2021;6(3):84-88. doi: 10.11648/j.ajset.20210603.16

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@article{10.11648/j.ajset.20210603.16,
  author = {Shahid Mahmood},
  title = {Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects},
  journal = {American Journal of Science, Engineering and Technology},
  volume = {6},
  number = {3},
  pages = {84-88},
  doi = {10.11648/j.ajset.20210603.16},
  url = {https://doi.org/10.11648/j.ajset.20210603.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajset.20210603.16},
  abstract = {Cost of Poor Quality (COPQ) or cost of failure gets inducted in construction projects during work execution due to failure in preventing defects, reworks and wastage of resources. Poorly defined project objectives, inadequate feasibility studies coupled with poor project planning and designing lead to revision of designs and reworks at later stage during project execution, causing cost and time overrun. Losses of construction companies on this account can go up to 40% of revenues. Since these losses (reworks and wastage of resources etc.) are normally not measured and recorded in the accounting system, therefore, they mostly remain hidden and the management does not know its gravity. Therefore, there is a need for reconnaissance and finding solution to minimize the losses of construction industry. Construction industry has a significant share in the socio-economic development of any country and provides employment to skilled/unskilled labor/poor masses and helps to alleviate poverty. Success of construction industry is dependent on performance of construction companies. The performance of construction companies can be improved by minimizing the COPQ. Completely eliminating COPQ might not be possible being uneconomical, however, it can be minimized with a proactive approach and effective management of Critical Success Factors (CSF), which were yet unknown. This study was therefore taken up to identify the CSF that can help the project management to reduce or minimize COPQ. This research study was successful in exploring and identifying forty (40) CSF falling in five areas of project management (Planning, Organizing, Executing, Monitoring and Controlling) that have the potential to decrease the losses on account COPQ from construction projects. Since it would not be possible for the project management to address and tackle all the forty CSF at the projects therefore, ranking in terms of criticality has been carried out for all the identified CSF. The analysis have revealed that 17 CSF fall in the list of top ten (some CSF have equal scores). It has also be identified that Planning is the most critical stage of any project because six of the top ten CSF pertain to Planning stage. According to ranking of top ten CSF, project Planning is at the top followed by Organizing, Controlling, Monitoring and Executing. It highlights the importance of Planning in any project; therefore, project planning may be completed very carefully so that no revision is needed during the project execution stage and COPQ remains at the lowest possible level.},
 year = {2021}
}

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TY - JOUR
T1 - Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects
AU - Shahid Mahmood
Y1 - 2021/09/10
PY - 2021
N1 - https://doi.org/10.11648/j.ajset.20210603.16
DO - 10.11648/j.ajset.20210603.16
T2 - American Journal of Science, Engineering and Technology
JF - American Journal of Science, Engineering and Technology
JO - American Journal of Science, Engineering and Technology
SP - 84
EP - 88
PB - Science Publishing Group
SN - 2578-8353
UR - https://doi.org/10.11648/j.ajset.20210603.16
AB - Cost of Poor Quality (COPQ) or cost of failure gets inducted in construction projects during work execution due to failure in preventing defects, reworks and wastage of resources. Poorly defined project objectives, inadequate feasibility studies coupled with poor project planning and designing lead to revision of designs and reworks at later stage during project execution, causing cost and time overrun. Losses of construction companies on this account can go up to 40% of revenues. Since these losses (reworks and wastage of resources etc.) are normally not measured and recorded in the accounting system, therefore, they mostly remain hidden and the management does not know its gravity. Therefore, there is a need for reconnaissance and finding solution to minimize the losses of construction industry. Construction industry has a significant share in the socio-economic development of any country and provides employment to skilled/unskilled labor/poor masses and helps to alleviate poverty. Success of construction industry is dependent on performance of construction companies. The performance of construction companies can be improved by minimizing the COPQ. Completely eliminating COPQ might not be possible being uneconomical, however, it can be minimized with a proactive approach and effective management of Critical Success Factors (CSF), which were yet unknown. This study was therefore taken up to identify the CSF that can help the project management to reduce or minimize COPQ. This research study was successful in exploring and identifying forty (40) CSF falling in five areas of project management (Planning, Organizing, Executing, Monitoring and Controlling) that have the potential to decrease the losses on account COPQ from construction projects. Since it would not be possible for the project management to address and tackle all the forty CSF at the projects therefore, ranking in terms of criticality has been carried out for all the identified CSF. The analysis have revealed that 17 CSF fall in the list of top ten (some CSF have equal scores). It has also be identified that Planning is the most critical stage of any project because six of the top ten CSF pertain to Planning stage. According to ranking of top ten CSF, project Planning is at the top followed by Organizing, Controlling, Monitoring and Executing. It highlights the importance of Planning in any project; therefore, project planning may be completed very carefully so that no revision is needed during the project execution stage and COPQ remains at the lowest possible level.
VL - 6
IS - 3
ER -

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Author Information

Shahid Mahmood

Engineering Management, Member Planning & Design, Capital Development Authority, Islamabad, Pakistan

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APA Style

Shahid Mahmood. (2021). Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects. American Journal of Science, Engineering and Technology, 6(3), 84-88. https://doi.org/10.11648/j.ajset.20210603.16

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ACS Style

Shahid Mahmood. Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects. Am. J. Sci. Eng. Technol. 2021, 6(3), 84-88. doi: 10.11648/j.ajset.20210603.16

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AMA Style

Shahid Mahmood. Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects. Am J Sci Eng Technol. 2021;6(3):84-88. doi: 10.11648/j.ajset.20210603.16

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@article{10.11648/j.ajset.20210603.16,
  author = {Shahid Mahmood},
  title = {Identification of Critical Success Factors for Minimization of Cost of Poor Quality from the Construction Projects},
  journal = {American Journal of Science, Engineering and Technology},
  volume = {6},
  number = {3},
  pages = {84-88},
  doi = {10.11648/j.ajset.20210603.16},
  url = {https://doi.org/10.11648/j.ajset.20210603.16},
  eprint = {https://article.sciencepublishinggroup.com/pdf/10.11648.j.ajset.20210603.16},
  abstract = {Cost of Poor Quality (COPQ) or cost of failure gets inducted in construction projects during work execution due to failure in preventing defects, reworks and wastage of resources. Poorly defined project objectives, inadequate feasibility studies coupled with poor project planning and designing lead to revision of designs and reworks at later stage during project execution, causing cost and time overrun. Losses of construction companies on this account can go up to 40% of revenues. Since these losses (reworks and wastage of resources etc.) are normally not measured and recorded in the accounting system, therefore, they mostly remain hidden and the management does not know its gravity. Therefore, there is a need for reconnaissance and finding solution to minimize the losses of construction industry. Construction industry has a significant share in the socio-economic development of any country and provides employment to skilled/unskilled labor/poor masses and helps to alleviate poverty. Success of construction industry is dependent on performance of construction companies. The performance of construction companies can be improved by minimizing the COPQ. Completely eliminating COPQ might not be possible being uneconomical, however, it can be minimized with a proactive approach and effective management of Critical Success Factors (CSF), which were yet unknown. This study was therefore taken up to identify the CSF that can help the project management to reduce or minimize COPQ. This research study was successful in exploring and identifying forty (40) CSF falling in five areas of project management (Planning, Organizing, Executing, Monitoring and Controlling) that have the potential to decrease the losses on account COPQ from construction projects. Since it would not be possible for the project management to address and tackle all the forty CSF at the projects therefore, ranking in terms of criticality has been carried out for all the identified CSF. The analysis have revealed that 17 CSF fall in the list of top ten (some CSF have equal scores). It has also be identified that Planning is the most critical stage of any project because six of the top ten CSF pertain to Planning stage. According to ranking of top ten CSF, project Planning is at the top followed by Organizing, Controlling, Monitoring and Executing. It highlights the importance of Planning in any project; therefore, project planning may be completed very carefully so that no revision is needed during the project execution stage and COPQ remains at the lowest possible level.},
 year = {2021}
}

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