Using A Leading Indicator Matrix (LIM) to support quality in construction megaprojects

Quality management techniques can be effectively used to reduce cost overruns which average 30% of total installed cost for many industrial megaprojects (value > $1.0B). Megaprojects are becoming more process driven as owners require contractors to have quality systems such as ISO 9001 and TQM to bid on the project. Quality teams work to identify issues in processes both before (through audits) and after (through root cause analyses) non-compliant process outputs are produced. A variation on Felix and Riggs Objectives Matrix referred to as the Leading Indicator Matrix (LIM) has been successfully used to provide leading indicators for processes used in megaproject design and construction and may be applicable to ongoing operational industrial activities. Having leading indicators provides advance warning of issues to the quality and management teams and supports acting before non-compliant outputs are identified. Additional benefits include a quality dashboard system, improving the effectiveness of the quality team, and providing timely information for management action. The paper provides a description of how the system is developed, an example of benefits realized through the implementation of the system, and suggestions for further research.