Title: Innovative system to determine hidden cost of poor quality to enhance labor productivity and profitability for construction entrepreneurs, a case study
Abstract: Cost of Poor Quality (COPQ) would not have been expended if the job is done right the first time. Some researchers claim that COPQ ranging between 22 to 32% of total revenues remains hidden and project managers fail to initiate corrective actions. COPQ is an un-necessary burden; it reduces productivity and profitability. Therefore, an innovative system is required to identify and measure COPQ at construction projects to initiate prompt corrective actions. The researchers innovated a COPQ system and tested on a public sector construction project to find its effectiveness in reducing COPQ and enhancing labor productivity and profitability. After the sixty-days study project the COPQ reduced from 40.43% to 16.65%, labor productivity improved by 16.88% and profitability increased by 10.45%. This study validated the COPQ system for use on construction projects to bring continuous improvement in labor productivity and profitability of construction companies.
Publication Year: 2013
Publication Date: 2013-06-01
Language: en
Type: article
Indexed In: ['crossref']
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Cited By Count: 3
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