Impact of integration on industrial facility quality

This dissertation analyzes two aspects of industrial facilities: their quality; and integration in the process of developing them from inception through operations. The goals of the research are to determine what constitutes a high quality facility, and how the facility development process can be better managed to achieve this result. The international competitiveness of U.S. engineering-procurement-construction (EPC) firms has declined, and there is widespread owner dissatisfaction with engineering and construction services. The promise of advancing computer technology has not yet overcome these industry woes. The quality movement in North American industry emphasizes the importance of process performance measurement and customer satisfaction. However, the facility development process is a complex context in which to apply these principles. This research models the impact of process performance on facility quality. Quality is defined as customer satisfaction with a comprehensive list of characteristics of the operational facility. Integration is defined as the flow of knowledge and information in three dimensions: vertically (between industry functions), horizontally (between disciplines or trades), and longitudinally (through time). To measure quality and integration, two different questionnaires were used to gather data regarding each of 17 industrial facilities in the United States and Canada. The first was directed to diverse members of the owner organization to obtain their evaluations of plant quality. The second was directed to members of the project organization including owner representatives and engineering and construction project managers to obtain data related to integration in the facility development process. Statistical analysis elucidated differences between owner groups (strategic, project management, and operations) in their perspectives of plant quality. A summary quality index was developed to encapsulate the plant manager's satisfaction with the plant. The vertical, horizontal, and longitudinal dimensions of integration were found to be independent of each other, yet each correlated positively with facility quality. Measures of both quality and integration were validated using bivariate correlation analysis. Finally, a regression model was developed which incorporated the three measures of integration as predictors of facility quality. The model is highly significant, and integration variables explain 82% of the variance in plant quality. Vertical and longitudinal integration are particularly promising areas for integration efforts and research.