Professional Documents
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Abstract
The growing importance of the maintenance industry renews the interest of both practioners and academia working in the maintenance
2eld. In the past or even now, most of the maintenance work contractors are selected purely on basis of the lowest tender prices, even
though they are required to be undergone the pre-quali2cation process. However, it is increasingly admitted that the practice of awarding
tenders on a basis of low tender price eventually would lead to the ultimate quality problems. In consequence, there is a serious outcry
in the public sector demanding a revolution in the current tender awarding system. Accordingly, this study intends to test how di6erent
managers actually choose maintenance contractors. This in turn would lead us to focus on the identi2cation of the major selection attributes,
and the trade-o6 weightings among attributes during the selection process. In this study, the identi2cation and the trade-o6 weightings for
di6erent contractors selection attributes are revealed by conjoint analysis. Meanwhile, a Likert scale rating is also used to reveal whether
there are disparities between the relative perceived importance and the relative weights in actual selection in the contractors selection
attributes. Our results found that there are some consistencies in the relative perceived importance and the relative weights in actual
contractor selection. On the other hand, our results also reveal that the contractors should put more e6ort in improving their company
reputation in order to win the maintenance contracts.
? 2003 Elsevier Science Ltd. All rights reserved.
Keywords: maintenance; conjoint analysis; contractor selection
1. Introduction
The building maintenance industry in Hong Kong has
long been an area of neglect. Nevertheless, the situation is
now perceived to be changing as this sector now embraces
465 companies hiring up to 70 percent of employees in the
property industry in Hong Kong. The demand is also seen to
be growing, with an average annual growth rate of 7 percent
since 1990 [1].
The rapid growth of the industry may be due to a multitude of reasons. The massive phase of building construction during the past decade obviously led to a tremendous
increase in the number and variety of building stocks that
needed to be adequately maintained. The increase in complexities and advance in technology increase the demand
for good maintenance service. Meanwhile, the growing concern on the health, safety and environmental issues induces
a more stringent legislative requirement on building owners to maintain and upgrade their buildings to the required
0360-1323/03/$ - see front matter ? 2003 Elsevier Science Ltd. All rights reserved.
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584
ing has shown that conjoint analysis is an e6ective methodology for analyzing choices in a complex decision-making
process. Unlike other methods, conjoint analysis forces
respondents to make trade-o6 between products so as to
mimics consumers actual behavior when purchasing products. As a result, conjoint analysis circumvents the problem
of respondents saying one thing and doing another, thereby
generating results of greater validity and reliability [12]. The
separation of clients preferences into attributes cannot only
provide clients with valuable information on the relative
importance of various attributes of their service or products,
but also can help to place the value on di6erent levels of
individual attribute. Undeniably, the aim of conjoint analysis is to identify the attribute combination conferring the
highest utility to clients, and to establish the relative importance of attributes in terms of their contribution to total
utility.
Secondly, a survey instrument containing two sets of
Likert-type scale questions are presented to the same
groups of respondents for revealing the relative perceived
importance, and the level of satisfaction of the existing
maintenance contractors in the industry with regard to the
contractor selection attributes. A Likert scale of 1 (least
important) to 5 (most important) is used for eliciting respondents perceived importance, while a Likert scale of
1 (poor) to 5 (excellent) is used for eliciting respondents
level of satisfaction.
2.1. Identi/cation of attributes and levels
The study starts with the determination of attributes
and their corresponding levels. A focus group comprising
six persons from di6erent occupational backgrounds was
formed to help identifying the attributes and their corresponding levels. The focus group members were selected
on the basis of their previous outsourcing maintenance
experiences.
Many attributes are considered to be used by the clients
during their selection of maintenance contractors. The nature of attributes selected should not only act as signi2cant
predictors of maintenance service, but also be able to be inIuenced or manipulated by the maintenance contractor [13].
The number of selected attributes in a survey should be restricted so that respondents are not easy to become bored
before giving any meaningful results. After an intensive discussion among the members of focus group, six attributes
were identi2ed to be most signi2cant criteria in selecting the
maintenance contractor: (i) type of maintenance service provided; (ii) location network; (iii) company reputation; (iv)
quality assurance scheme; (v) past experience; and (vi) performance measurement. Most of the selection attributes are
self-explanatory, and only the performance measurement attribute is needed to be further elaborated here. A respondent
is cost-oriented if he or she concerns more on the price in
performance measurement. On the contrary, the respondent
Levels
Type of maintenance
Preventive
corrective
SuJcient network
not suJcient network
Good reputation
no reputation
Not assured
assured
Inexperience
experienced
Service-oriented
price-oriented
Location network
Company reputation
Quality assurance scheme
Past experience
Performance measurement
Table 2
Attributes adopted in the Likert-type scale questions
Attribute
Perceived importance
(1 = not important at all,
2 = not so important,
3 = neutral,
4 = fairly important
5 = very important)
Level of satisfaction
(1 = poor; 2 = fair,
3 = average,
4 = good,
5 = excellent)
Type of maintenance
Location network
Company reputation
Quality assurance
scheme
Past experience
Performance
measurement
1
1
1
1
5
5
5
5
12345
12345
12345
12345
12345
12345
12345
2
2
2
2
3
3
3
3
4
4
4
4
Type of Maintenance
Location Network
Company Reputation
Quality Assurance
Past Experience
Orientation
585
Corrective
not su cient network
good reputation
not assured
good experience
price-oriented
(Card No. 1)
Fig. 1. Sample of pro2le card.
6
Improve
High Importance/
Low Satisfaction
Capitalize
High Importance/
High Satisfaction
High
5
4
High
Low
Satisfaction
586
3
1
Monitor
Low Importance/
Low Satisfaction
Maintain
Low Importance/
High Satisfaction
Low
Importance
Ui xi + C + ;
(1)
i=1
where R is the respondents 112th rankings of the scenarios, x1 the type of maintenance strategy adopted, x2 the
performance measure, x3 the location network, x4 the reputation, x5 , the quality assurance scheme, x6 the experience,
C the constant, the error term, Ui the coeJcients indicates the di6erence in part-worth for that level minus the
part-worth for the base level, i.e. utility. The base level is
assumed to be the level omitted from regression analysis.
3.2. Perceived importance and satisfaction
The data collected from the Likert-type scale questions in
Part B can be assumed to be on an interval scale and thus
means can be compared as a measure of relative perceived
importance, and level of satisfaction of the contractor selection attributes.
The data obtained from the Likert scales are subsequently
plotted using the quadrant analysis, which is simply a graphical technique for mapping customer perceptions of each
attribute on the two-axis grid so as to guide quality-based
marketing strategies [15]. The horizontal axis of the graph
represents how well the managers satis2ed with existing
contractors with regard to the selected attributes, while the
vertical axis represents the perceived importance of these
attributes.
The interpretation of the quadrant analysis can easily be
done with the aid of Fig. 2. The graph of rating points is divided into four quadrants: Capitalize (high importance/high
satisfaction), Maintain (low importance/high satisfaction),
Improve (high importance/low relative satisfaction), Monitor (low importance/low satisfaction). Due to limited
resources available for addressing perceived quality de2ciencies, contractor should concentrate improvement efforts on the quadrant rated as highly important, but that
rank low in satisfaction (improve). In contrast, contractors
should give a relatively low priority in their quality improvement strategy for those attributes with a low rank in
clients importance. Instead, contractors should continue
to upkeep those attributes inside the capitalize quadrant as
Percentages (%)
Gender
Female
Male
14.0
86.0
Age (years)
1825
26 35
36 45
46 55
3.0
30.0
56.0
11.0
Employment capacity
Maintenance managers
Facility managers
Property managers
32.0
19.0
49.0
Education level
Master degree
Bachelor degree
Sub-degree
4.0
75.0
21.0
52.0
16.0
32.0
96.0
4.0
10.0
9.0
81.0
Maintenance frequency
Monthly
Quarterly
95.0
5.0
part-worth utility scores for various levels of individual attributes are summarized in Tables 4 and 5.
The correlation between the observed and estimated preferences was veri2ed by using Kendalls Tau and Pearsons
R test with the average sequence order of each group being used as input. The overall values of Pearsons R and
Kendalls Tau of three groups were 0.977 and 0.931 for
facility managers group, 0.984 and 0.879 for property managers groups and 0.992 and 0.939 for maintenance managers
groups, respectively. This indicates a strong correlation
between the observed and estimated preferences.
One-way ANOVA analysis with least signi2cant di6erent
(LSD) test at 0.05 signi2cance levels was also performed
to reveal whether there are signi2cant di6erences between
utility values given by di6erent professional groups. The
symbol () in Table 4 signi2es no statistical di6erence at
0.05 signi2cant level. indicates di6erence in means at
0.05 level for facility and property managers. Similarly, #
indicates di6erence for facility and building maintenance
managers.
The one-way ANOVA results can be interpreted as
follows:
(1) Service-oriented: building maintenance managers and
property managers concerned more on the quality of
service rather than the di6erential price of service under
the existing competitive tendering arrangement.
(2) Price-oriented: The facility managers distinctly considered price of services is an important factor.
(3) Good reputation: Facility managers have a stronger
preference on reputable contractor than building maintenance managers.
(4) Good experience: Compared to building maintenance
managers, facility managers preferred to use a maintenance contractor with excellent past experience.
587
(2)
588
Table 4
Utility value at di6erent attribute levels for di6erent professional groups
Level of attribute
Type of maintenance
Corrective
Preventive
Service/price orientation
Service oriented
Price oriented
Location network
Not suJcient
SuJcient
Reputation
No reputation
Reputation
Quality assurance
Not assured
Assured
Past experience
Inexperience
Good experience
Constant
ANOVA test at
0.05 signi2cant
level
0.8860
0.8860
1.0884
1.0884
1.1406
1.1406
0.3421
0.3421
0.0136
0.0136
0.2292
0.2292
; #
; #
0.2456
0.4912
0.7143
1.4286
0.7292
1.4583
1.6140
3.2281
1.1973
2.3946
0.8021
1.6042
#
#
2.6842
5.3684
2.6190
5.2381
2.2917
4.5833
2.7895
5.5789
4.5000
2.2245
4.4490
3.6327
1.6146
3.2292
1.6563
#
#
Table 5
Weighting of importance given by di6erent professional groups
Type of maintenance
Service or price oriented
Location network
Reputation
Quality assurance
Past experience
Importance % score by
facility managers
Importance % score by
property managers
Importance % score by
building maintenance managers
19.35
10.09
7.25
14.79
26.12
22.41
25.85
8.55
10.01
11.16
25.67
18.76
35.97
7.53
8.98
9.32
22.86
15.34
to the other two groups, facility managers considered quality assurance and past experience far more important than
the type of maintenance service provided. This is probably consistent with our prior expectation that facility managers are focused mainly on performance results rather than
the process itself. Interestingly, they also placed the highest
score on price-oriented attribute in their decision for selecting maintenance contractor.
4.2.2. Relative perceived importance and level of
satisfaction
Tables 68 list the means, medians, and standard deviations of the perceived importance and level of satisfaction for six attributes of three managers groups. The rank
order of perceived importance for facility managers is as
follows: quality assurance, past experience, type of maintenance, price, reputation (price and reputation have the
same perceived importance) and location network. On the
other hand, the rank order for the property and maintenance
managers is type of maintenance, quality assurance, past
experience, price, reputation and location network. This is
consistent with our earlier results from the actual selection
process. Among three groups, it is observed that the rank
order of the perceived importance of 2rst three attributes is
the same as those revealed by the actual selection process,
despite there are minor discrepancies in the rank order for
the last three attributes. However, there are inconsistencies
with the earlier results that a gap exists between the perception and actual practice [17]. The observations drawn
from other studies are only based on simpli2ed pairwise
choice experiments, which cannot be used to represent the
actual selection process realistically as our selection in the
real life are based on one selection among many alternatives
available.
Intuitively, the simple Likert-scale method can be used
to replace the complicated conjoint analysis in evaluating
589
Table 6
Comparison of descriptive statistics for Likert-type scale questions on the perceived importance and level of satisfaction of contractor attributes for the
facility managers groups
Attributes
Type of maintenance
Service or price oriented
Location network
Reputation
Quality assurance
Past experience
Perceived importance
Level of satisfaction
Mean
Median
Standard deviation
Mean
Median
Standard deviation
3.40
3.32
2.74
3.32
4.26
3.63
3.0
3
2.5
3
4
3.5
0.9
0.95
0.73
0.67
0.65
0.96
N/A
3.05
2.26
2.63
3.53
3.42
N/A
3.5
3
2.5
3.5
3.5
N/A
0.62
0.81
0.90
0.84
0.84
Table 7
Comparison of descriptive statistics for Likert-type scale questions on the perceived importance and level of satisfaction of contractor attributes for the
property managers groups
Attributes
Type of maintenance
Service or price oriented
Location network
Reputation
Quality assurance
Past experience
Perceived importance
Level of satisfaction
Mean
Median
Standard deviation
Mean
Median
Standard deviation
4.30
3.22
2.88
3.02
4.27
3.29
4
3
3
3
4
3
0.8
1.10
1.03
0.97
0.64
0.84
N/A
3.02
2.39
2.61
3.51
3.49
N/A
3
3
2.5
3
3.5
N/A
0.69
0.79
0.67
0.92
0.71
Table 8
Comparison of descriptive statistics for Likert-type scale questions on the perceived importance and level of satisfaction of contractor attributes for the
maintenance managers groups
Attributes
Type of maintenance
Service or price oriented
Location network
Reputation
Quality assurance
Past experience
Perceived importance
Level of satisfaction
Mean
Median
Standard deviation
Mean
Median
Standard deviation
4.5
3.38
2.59
3.28
3.84
3.53
4.0
3
2.5
2.5
3.5
3
0.85
1.01
0.87
0.89
0.95
0.84
N/A
3.03
2.44
2.72
3.28
3.19
N/A
3
2.5
3
3
2.5
N/A
0.82
0.76
0.96
1.08
0.82
590
Importance
Improve
Capitalize
5
PM:4
FM:4
4
FM:3
PM:3
2
FM:2
MM:1
MM:3
PM:2
MM:2
MM:4
FM:5
MM:5
FM:1
PM:5
PM:1
5
Level of Satisfaction
Maintain
Monitor
Legend:
FM: Facility managers group PM: Property managers group
MM: Maintenance managers group
1: Performance Measurement 2: Location Network 3: Reputation
4: Quality Assurance 5: Past Experience
Fig. 3. Matrix points of quadrant analysis results.
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