Tutesigensi, A and Pleim, V (2008) Why small and medium construction enterprises do not employ six sigma. In: Dainty, A (ed.) Proceedings of 24th Annual ARCOM Conference, 1-3 September 2008, Cardiff, UK.
Abstract
Six sigma (6σ) is a powerful business strategy which is aimed at increasing customer satisfaction and profitability by improving the quality of products and services. Many organisations have implemented 6σ and achieved significant levels of success. Successful implementation of 6σ leads to outcomes that would be welcome in the construction industry, given its reputation of suboptimal performance. The construction industry relies heavily on small and medium enterprises (SMEs). Any improvement in construction SMEs would lead to improvements in the construction industry as a whole. Against this background, a survey was undertaken to establish whether construction SMEs used 6σ and to identify factors affecting the adoption of this business strategy. It was found that none of the SMEs in the sample used 6σ. The reasons given for not employing 6σ, in descending order of importance, were: lack of knowledge about 6σ programme; lack of resources (human, time, money); 6σ programme not required by customers; other sufficient quality system in use; 6σ provides no perceived benefits; and end users not prepared to pay for 6σ programme. These reasons can be challenged when a critical analysis of innovation in the external environment within which construction SMEs operate, trends in the mode of delivery of construction industry products, trends in performance measurement in the construction industry and the flexibility of 6σ as a quantitative approach to managing quality. Construction industry stakeholders need to think about 6σ critically and make informed decisions about its role in the construction industry quality management agenda.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | construction industry; performance; quality management; six sigma; small and medium enterprises |
| Index terms: | business strategy, profitability, quality management, survey, implementation, programme, performance measurement, construction industry, six sigma, end user, customer satisfaction |
| Subjects: | business, performance measurement, contractual arrangements, service delivery, quality assurance, data collection methods, project controls, stakeholder, industry analysis, economic analysis |
| Topics: | Procurement, Stakeholder Management, Research Practice, Quality Management, Roles and Professions, Business Strategy, Time Control |
| Descriptive scope: | 4 PCTE |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here