Factors Providing Motivation to Start TQM

64 The figure above shows that the majority of respondents 61 said that their company uses ISO 9000 for quality improvement program. 21 of them mentioned quality control and quality assurance,11 TQM, while the other 7 said that their company uses others programs as the tool to improve quality.

4.8.5 Factors Providing Motivation to Start TQM

Respondents were asked about the motivating factor for the companies to start TQM. Results in general for the respective companies are shown in the table below. Table 4.2 1 Factors providing the motivation to start TQM for the respective contractors Companies Motivating factors Waskita Karya Pressure from competitors. TQM provides greater competitive value in quality, time and cost Pembangunan Perumahan The need to reduce costs and improve performance. Wijaya Kusuma The need to reduce costs and improve performance. Wijaya Karya Many factors provide the motivation to start TQM Hutama Karya The need to reduce costs and improve performance. Adhi Karya The companys chief executive The results in general show that the more companies consider the need to reduce costs and improve performance as the most important factor which provides the motivation to start TQM. One contractor see the most important factor is the pressure from competitions, another said that it was the company’s chief executive decision, while the other contractor cited all factors mentioned in the questionnaire as the factors that provide the motivation to start TQM. TQM requires improvements throughout an organization to reduce waste and rework, lower costs, and increase productivity. It emphasizes on improving profit and quality, hence contractors who are seeking to reduce costs and increase profits choose to implement this program. TQM can guide companies on how to improve profits by 65 eliminating costs and escalating performance improvement in work results.it also fosters innovation in every field and creates the standard operating procedure for the company. Contractors that can deliver their project at lower costs than their competitors, while delivering quality products that satisfy their customers will have an advantage over those companies that do not duplicate those feats. The Total Quality Management TQM business philosophy of satisfying the customer with quality goods and services, reducing waste and empowering workers and suppliers is a method to achieve those goals. The following figure highlights the level of response from individual respondents taken part in this research, irrespective of their companies, in relation with the company’s motivating factor to start TQM. Figure 4.20 Factors provided the motivation to start TQM in the construction industry in Semarang. The figure above shows that 46 of respondents said that need to reduce costs and improve performance is the main reason for the company to start the Total Quality Management TQM. Three other factors demanding customers, pressure from competitors and the company’s chief executive have almost similar ratio of around 17, while only 4 of respondents said cited the environment issures and considerations as the main reason for the company to start TQM.

4.8.6 The Organization’s Quality Improvement Program Description