The Total Quality Management : The Knowledge, Adoption and Implementation of Contractors in Semarang

Abstract

ABSTRACT Total quality management (TQM) is one of the key approaches for continuous quality improvement of the products and services to meet customer satisfaction. By implementing the TQM the contractors can increase profits and productivity in their organization. The contractors in Semarang city are facing several problems to continue improving the quality, reducing costs and waste and increasing productivity. The objectives of the study are to investigate the contractors’ knowledge of TQM and the adoption and implementation of TQM in the construction industry in Semarang. This research applied qualitative and quantitative method. A questionnaire was sent to six contractors in Semarang. The response rate for the questionnaire was 93%. The contractor with the highest level of knowledge in TQM was Adhi Karya, with 94% of its managerial/supervisor staff has undergone quality improvement training. On the TQM adoption and implementation, 11% of the respondents said that their company used TQM program to improve quality. The majority of respondents (79%) felt that the quality of their products and services had improved after implementing quality improvement program, with 89% of them also felt that their relationship with customers and suppliers had also improved after implementing such program. The majority of respondents (54%) also said that changing behavior and attitude of the people in organization was the biggest obstacle in implementating TQM. The study recommends that the contractors increase the adoption and implementation of TQM to meet future challenges in realizing the vision of world-class organization.