Improving operational and business performance in the petroleum industry through quality management

A balanced approach involving hard and soft factors for internalizing Lean Management and Six Sigma in hospitals

Purpose

This study examines the theoretical and empirical relationships between LM&SS, human resource management (HRM), climate for LM&SS and outcomes (employee well-being and performance) in hospitals. As part of this research, the authors examine the interplay between “hard” and “soft” practices for LM&SS and “soft” HR practices.

Design/methodology/approach

A cross-sectional, multisite survey study covering all internal service units at all eight Dutch university hospitals was conducted (42 units, N = 218 supervisors, N = 1,668 employees), and multivariate multilevel regression analyses were performed.

Findings

A systems approach involving “soft” LM&SS practices that are specifically HR-related has a positive effect (β is 0.46) on a climate for LM&SS. A climate for LM&SS is not related to perceived performance or employee health. It is, however, positively related to employee happiness and trusting relationships (both βs are 0.33). We did not find that a climate for LM&SS had a mediating effect.

Research limitations/implications

This study shows that a balanced approach involving both “hard” and “soft” factors is crucial to achieving the desired breadth and depth of LM&SS adoption at the macro, meso, and micro levels. The authors found that a climate for LM&SS positively affects employee well-being in hospitals.

Practical implications

In their attempt to create mutual gains for both their organization and their employees, hospitals that adopt LM&SS should foster a climate for LM&SS by embracing a balanced approach consisting of both “hard” and “soft” practices, thereby internalizing LM&SS at the macro, meso, and micro levels.

Originality/value

This is one of the first studies to examine in-depth the impact of “hard” and “soft” LM&SS on both employee well-being (subdivided into different components) and performance in healthcare, as well as the role of “soft” HRM in this relationship. Linking LM&SS, HRM and outcomes to a climate for LM&SS is relatively a new approach and has led to a deeper understanding of the mechanisms underpinning the internalization of LM&SS in healthcare.

The moderating role of Lean Six Sigma practices on quality management practices and quality performance in medical device manufacturing industry

Purpose

The purpose of this paper is to explore the moderating role of Lean Six Sigma (LSS) practices in explaining the relationship between quality management practices (QMPs) and quality performance.

Design/methodology/approach

Partial least square-based structural equation modeling (PLS-SEM) was used to empirically examine the moderating effect of LSS practices on QMPs and quality performance in Malaysian medical device manufacturing companies.

Findings

Findings revealed that both QMPs and LSS practices have a significant and positive effect on quality performance. Furthermore, LSS practices served as a substitute for moderating the positive relationship between QMPs and quality performance in such a way that the relationship becomes weaker as LSS practices increase.

Originality/value

LSS is acknowledged as the most well-known hybrid methodology; however, due to its relative newness, it has not been studied in great detail. Unlike previous studies, this paper argued that Lean and Six Sigma practices are distinct from its predecessor TQM practices; moreover, both Lean and Six Sigma practices do not need to substitute QM/TQM practices instead of complimenting the QMPs. In addition, this study adds to the growing body of QM literature by empirically examine the effect of LSS practices in moderating the relationship between QMPs and quality performance.

Process quality management and operational performance: exploring the role of learning and development orientation

Purpose

The paper aims to assess the influence of process quality management (PQM) practices on a firm's operational performance (OP) and investigate the mediating role of a firm's learning and development orientation (LDO) in the PQM–OP relationship. The paper also assesses the extent to which the proposed mediation is moderated by senior management support (SMS).

Design/methodology/approach

This paper draws on the sociotechnical system theory to carry out a survey study of 278 functional managers from various manufacturing firms in India through a postal mail survey approach. The response rate has been improved by frequent telephone follow-ups. The collected data was analyzed for mediation of LDO and moderated mediation of SMS in the proposed framework using Hayes's PROCESS Macro in statistical package for social sciences.

Findings

The research findings show that both PQM and LDO lead to better performance and should be encouraged. LDO was found to partially mediate the effect of PQM on the firm's OP. The results also show that an enhanced learning capability of an organization can significantly influence improvement in OP through a stronger support of senior management.

Research limitations/implications

The current study explored the mediating role of LDO in the relationship between PQM and OP, while providing a future research opportunity for an empirical review of the mediating effect of LDO between the effects of just-in-time, maintenance and process benchmarking activities on OP.

Practical implications

To transform PQM activities into a competitive advantage, firms need to develop learning capabilities. Senior managers in the manufacturing industry should strongly focus upon creating a learning-centered work culture to improve performance and productivity.

Originality/value

The study provides insights into the type of people-related activities that manufacturing firms should undertake to enhance their OP. Few studies in the extant literature have used SMS as a moderator to improve LDO's impact on business operations. The study aims at bridging this gap.

Exploring and measure the performance of the Indian petroleum supply chain

Purpose

This research identifies the supply chain performance indices and designs an evaluation framework to assess and compare the Indian petroleum supply chain performance. We presented a case study of three Indian petroleum companies. For this purpose, we identified fifteen performance criteria extracted from previous literature and expert inputs and classified them into four groups.

Design/methodology/approach

A fuzzy technique for order preference by similarity to the ideal solution (TOPSIS) method is employed for evaluating the performance of the Indian petroleum supply chain.

Findings

The design and evaluation framework suggests that the top three performance measurement criteria, the purity of the products, compliance with environmental laws, and new technology adoption. The result findings also indicate that company C contributes to a maximum satisfaction level of 77%. Simultaneously, companies A and B hold satisfaction levels of 72% and 67%.

Practical implications

The managers should ensure that environmental standards, new technology adoption, and quality are significant concerns in the petroleum supply chain. The managers should follow national and international policies to preserve the environment and ensure safety in operational activities.

Originality/value

This paper makes two contributions in the domain of performance measurement of the petroleum supply chain. First, it identifies the prominent supply chain performance indices. Second, it proposes a model to assess and compare the performance of Indian petroleum companies.

Influence of data-driven supply chain quality management on organizational performance: evidences from retail industry

Purpose

The objective of the study is to test a conceptual model based on the interrelation between data-driven supply chain quality management practices (DDSCQMP) and the performance of organized retailing firms in India.

Design/methodology/approach

Based on a comprehensive review of literature, the dimensions of DDSCQMP concerning the Indian organized retail sector have been extracted. Considering the research objectives, the research data has been collected using a structured questionnaire from Indian retailers. Overall 133 questionnaires were responded successfully from retailers. The model was tested using structured equation modeling (SEM) through PLS 3.0.

Findings

The research findings confirm hypotheses and reveal the statistically significant relationship between DDSCQMP and retailers' performance at an aggregate level. However, the results of the individual-level analysis of DDSCQMP appear to vary from practice to practice. Among various DDSCQMP, “customer focus” with the highest beta (ß) value was found to have the greatest impact on performance followed by “employee relations”.

Originality/value

The study provides empirical justification for a structural model that identifies a positive and significant relationship between DDSCQMP and organizational performance within the context of organized retail sector of India.

The effect of TQM practices on operational performance: an empirical analysis of ISO 9001: 2008 certified manufacturing organizations in Ethiopia

Purpose

This study is aimed at examining the effect of Total Quality Management (TQM) practices on the operational performance of ISO 9001:2008 certified manufacturing companies in Ethiopia.

Design/methodology/approach

A cross-sectional survey was conducted to meet the purpose. Primary data was collected from the managers and senior experts working under the production and quality management units of the surveyed firms. Data was obtained from a survey of 302 participants found in 73 ISO 9001:2008 certified manufacturing organizations. Both EFA and CFA were applied to validate and confirm the instrument, and Structural Equation Modeling (SEM) was used to test the hypotheses.

Findings

The results revealed that among the practices of TQM used in the model only supplier quality management, continuous improvement and process management were found to have significant and positive effect on the operational performance of the ISO 9001:2008 certified manufacturing organizations in Ethiopia.

Research limitations/implications

Future studies are suggested to consider some contextual variables such as firm age, scope of operation, firm size and firm strategy while addressing the objective.

Practical implications

The study will encourage managers of manufacturing companies in Ethiopia to utilize a reliable and valid framework of TQM practices for better operational performance results.

Originality/value

The fact that Ethiopian manufacturing organizations are required to improve their product's quality in order to improve their productivity and enhance their competitiveness in a global market is the rationale of this study. Even though several studies have evolved to scrutinize the link between TQM and operational performance across the world, nearly nothing, is known about this linkage in Ethiopia. Thus, the study represents one of the first attempts to empirically investigate this linkage in Ethiopian context.

Managing performance in quality management

Purpose

The purpose of this paper is to address potential effects of the control element in quality management. First, behavioural theories on how elements of performance management can affect organisational performance are examined. Second, theoretical models on how perceptions of work conditions may impact well-being and performance are considered. Direct and indirect pathways from performance management to productivity/quality are inferred.

Design/methodology/approach

Matched employee-workplace data from an economy-wide survey in Britain and two-level structural equation models are used to test the hypothesised associations.

Findings

The use of practices in workplaces is inconsistent with a unified performance management approach. Distinct outcomes are expected from separate components in performance management and some may be contingent on workplace size. For example, within quality planning, strategy dissemination is positively associated with workplace productivity; targets are negatively associated with perceptions of job demands and positively correlated with job satisfaction, which in turn can increase workplace productivity. With respect to information and analysis: keeping and analysing records, or monitoring employee performance via appraisals that assess training needs, are positively associated with workplace productivity and quality.

Originality/value

This paper illustrates how control in quality management can be effective. Although the merits of performance management are subject to ongoing debate, arguments in the literature have tended to focus on performance appraisal. Analyses of economy-wide data linking performance management practices, within quality management, to employee perceptions of work conditions, well-being and aggregate performance are rare.

Cultural diversity and operational performance: entrepreneurial orientation as a mediator

Purpose

The purpose of this paper is to test the mediating role of entrepreneurial orientation in the nexus between cultural diversity (CD) and firm operational performance (OP).

Design/methodology/approach

The population of the current study is foreign industrial firms listed in the tax directorate of the Kurdistan region of Iraq (KRI). A stratified random sampling technique was applied to select 136 firms in KRI, with a response rate of 57 per cent. Smart-PLS was used to examine the hypothesised relationships in the proposed framework.

Findings

The results indicate that CD is significantly related to a firm’s OP. Entrepreneurial orientation (EO) is, in turn, significantly related to a firm’s OP. Furthermore, the results provide evidence that EO plays a mediating role in the nexus between CD and a firm’s OP.

Originality/value

The study highlights the importance of CD and EO in supporting a firm’s OP. In addition, the findings will provide scholars and managers a deeper understanding of the role of EO as a mediator through which CD enhances a firm’s OP.

Assessing the individual and synergistic effects of quality management practices on operations performance

Purpose

Quality management (QM) practices have long been suggested as a package to improve the quality performance of a company. Yet, empirical studies offered little support of this perspective as only a small set of QM practices were found to be conductive to quality improvement. By taking a new approach, the purpose of this paper is simultaneously evaluate the individual and synergistic effects of several key quality practices on operations performance.

Design/methodology/approach

Survey data were collected and used to test the proposed hypotheses. Hierarchical regression analyses were performed to assess the magnitude of synergistic effects and individual effects.

Findings

It is found in this study that the synergistic effects across QM practices are substantial in enhancing all operations performance dimensions whereas individual effect varies for different performance goals.

Originality/value

This study makes theoretical contributes to the field of QM by providing empirical support of the interdependence assumption of QM practices and resolving the inconsistent findings. Practically, the results suggest that in-depth implementation of various QM practices simultaneously can be highly effective to achieve performance improvement on all accounts. In addition, the positive additional individual effects also open up a firm’s strategic choices of where to focus the resource investment in the adoption process as long as the strategic focus can justify its contribution toward the desired performance goals.

Role of internal and external organizational factors in TQM implementation

Purpose

The purpose of this paper is to provide a conceptual framework for the development of total quality management (TQM) model for service organizations considering both internal and external environmental factors.

Design/methodology/approach

Through an extensive literature search, it is found that despite a large body of knowledge on TQM, there is hardly any research undertaken on the model of service quality including all external and internal factors that can affect the impact of soft and hard TQM factors on organizations performance. So, a systematic literature review has been conducted to extract the relevant journal articles for the study purpose.

Findings

The conceptual model fills this yawning gap and presents a framework of integrated relationships based on several constituent models. These are soft TQM factors, hard TQM factors and organizational performance. Moreover, quality improvement, market benefits, R&D performance and quality performance are used as mediators while industry rivalry and entry barriers are used as moderators between soft and hard TQM and organizational performance. The seven propositions, derived from these elements, highlight the dynamic relationship between above mentioned constructs.

Research limitations/implications

One major limitation is the testing of this model. It has not been tested in any environment or organization to assess its validity. Future research can be done to test the developed hypotheses. Besides three journals, other journals can also be focused in future to get detailed insight into different factors. Impact of IT on organizational processes toward TQM can also be studied in future. More rigorous statistical tests can also be applied to generate more findings with an extension of review time period and selection of more journals.

Practical implications

The model developed in this study can be applied in any service organization with slight modifications to enhance the service quality of organizations by integrating both internal and external aspects for quality improvement. By adopting this framework, organizations can increase their production quality.

Originality/value

This proposed framework will help organizations to effectively implement TQM in their organizations considering internal and external organizational factors.

Contradictions in TQM implementation

Purpose

The purpose of this paper is to confirm the existence of contradictions in total quality management (TQM) implementation among some Ghanaian companies and to provide a framework for balancing these contradictions.

Design/methodology/approach

Closed-ended questionnaires were used as a survey instrument. A sample of 80 managers from 40 Ghanaian multinational companies implementing TQM responded to the questionnaires.

Findings

The results showed that the implementation of TQM comes with inherent contradictions, which may hinder the success of TQM if not checked. Three pairs of contradictions were established in this study, namely “Standardization vs Innovation,” “Manipulation vs Empowerment,” and “Collectivism vs Individualism.” A framework was proposed to balance these contradictions in order to ensure TQM success.

Research limitations/implications

The study used all the 40 ISO certified firms in Ghana, but this number is quite small relative to ISO certified firms worldwide. Further, the study was done in Ghana and, for these reasons, generalization to the rest of the world is limited.

Practical implications

The proposed framework when applied by managers to balance the contradictions will achieve success in TQM implementation.

Originality/value

Previous studies have talked about the existence of the contradictions. This paper proposes a framework to balance the existing contradictions. This framework is new and has never been proposed in the literature to minimize the adverse effects of these contradictions on a firm’s profit generation.

The impact of quality management practices on performance: an empirical study

Purpose

The purpose of this paper is to explore the relationship between quality management (QM) and performance, specifically how the infrastructure and core QM practices affect quality and business performance, in Indian manufacturing organizations.

Design/methodology/approach

In this study, the empirical data were drawn from 262 manufacturing organizations in India. The research model was tested using the structural equation modeling technique.

Findings

The findings of the empirical study revealed that infrastructure QM practices have a positive effect on core QM practices and indirectly on quality performance, whereas, core QM practices have a positive effect on quality performance. Also, quality performance has a positive effect on business performance.

Research limitations/implications

This study considered QM from two dimensions (infrastructure and core quality practices), the study further contributes to the understanding of the different roles played by diverse QM dimensions in determining business performance in terms of increased return on investment, shareholder and stakeholder value.

Practical implications

The study showed that infrastructure quality practices support the application of core quality practices. Therefore, managers must develop and maintain their organization’s quality system and sufficient resources need to be allocated to both types of practices in order to achieve the superior business performance.

Originality/value

This study considers both total quality management and Six Sigma practices for defining a new set of infrastructure and core QM practices in Indian manufacturing organizations.

Productivity, quality and business performance: an empirical study

Purpose

The purpose of this paper is to empirically investigate linkage among productivity, quality, and business performance in home-based brassware units in India.

Design/methodology/approach

This study involved action research of home-based brassware units applying procedures for three-stage least-squares (3SLS) regression analysis, with data obtained through questionnaire survey based on convenience sampling.

Findings

This study has supported the established belief that quality leads to productivity, and subsequently productivity leads to better business performance for home-based brassware units in India. The consistent and logical result of this study using 3SLS regression analysis has provided empirical understanding of the appropriate linkage among productivity, quality, and business performance.

Research limitations/implications

This study has limitations of findings, as it studied the home-based brassware units in the Indian context only.

Practical implications

This study implies that marketable home-based brassware products are to be produced by taking into account boundaries of production within the framework of goals and value created by motivation and dependability for monitoring the business performance. Identifying an appropriate linkage among productivity, quality, and business performance may project a holistic evaluation of the policy development related to home-based brassware units.

Originality/value

This is an original study to test empirical linkages among productivity, quality, and business performance using 3SLS regression analysis particularly for home-based brassware units in India.

The impact of TQM practices on organizational learning case study: automobile part manufacturing and suppliers of Iran

Purpose

The purpose of this paper is to determine the correlations between TQM and organizational learning in the context of automobile part manufacturing and suppliers of Iran.

Design/methodology/approach

A research project is carried out in 191 automobile part manufacturing and suppliers plants, using the questionnaire method. Confirmatory Factor Analysis (CFA) is applied to assess the measurement instrument reliability and validity. The correlations between latent constructs are examined through Partial Least Squares (PLS) method.

Findings

Findings indicate that, both, the core and infrastructure aspects of QM practices have significant positive effect on organizational learning. At the lower levels, HRM and information and analysis contribute to enhancement of the organizational learning.

Research limitations/implications

It is recommended that a more complete construct be designed for measuring the organizational learning. Some contextual factors such as culture need to be noticed in future researches.

Practical implications

in this article some beneficial insights are addressed to assist managers in recognizing the organizational problems which weaken the organizational learning.

Originality/value

This study contributes to the TQM advance, organizational learning research literature and provides better foundations for organizational learning improvement through TQM practices in the Middle East. By investigating the correlations between infrastructure and core QM practices and organizational learning, this study fills the current gap in this field.

Infrastructure and core quality practices in Indian manufacturing organizations

Purpose

– The purpose of this paper is to develop and validate a scale for infrastructure and core practices, including total quality management (TQM) and Six Sigma practices, in the Indian manufacturing organizations.

Design/methodology/approach

– In this study, a psychometric systematic scale development procedure has been adopted and executed, which includes three phases. Phase 1 includes item generation and selection through expert opinion. In Phase 2, scale refinement using item analysis, exploratory factor analysis, confirmatory factor analysis (CFA), and convergent and discriminant validity have been carried out. Finally, in Phase 3, scale validation through the replication of CFA and nomological validity assessment has been conducted. Also, a higher order measurement and structural model has been used to assess predictive validity of infrastructure and core practices.

Findings

– The findings of the empirical study resulted in a 45-item scale that measures Infrastructure practices (top management commitment, workforce management, supplier relationship, customer relationship management, Six Sigma role structure) and core practices (process management, product/service design, quality information and analysis, Six Sigma metric, Six Sigma structure), considering both TQM and Six Sigma practices. Also, the higher order predictive validity assessment model suggested that core practices have a higher impact on quality performance than infrastructure practices.

Research limitations/implications

– This study considered TQM and Six Sigma practices for defining infrastructure and core practices. However, future studies may include other quality tools in infrastructure and core quality practices such as Lean, Kaizen, and others in the measurement model to get more concrete results.

Practical implications

– This reliable and valid scale will help managers measure the level of QM in order to enhance business performance.

Originality/value

– This study symbolizes a first-time attempt for developing a validated tool to measure infrastructure and core practices in the Indian manufacturing organizations.