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International Conference on Trends in Mechanical and (ICTMIE'2011) Bangkok Dec., 2011

Total Management in Industry of Pakistan: A Case of Cement Industry

M. Noman Malik and Huma Hayat Khan

new era of discussion and research in respective means. Abstract—In Asian countries, the principle of Total Quality Pakistan has been exporting cement to Sudan, Central Management (TQM) and the respective code of conduct to Asian States, Switzerland, Middle East, Egypt, India, implement are still yet to be matured. The gap between philosophies, Afghanistan, South Africa, and many more which increases which have been there for the last three to four decades, and the importance of Quality standards in their production. But practically implanting it creates a lot of interest of researchers to develop and designed instruments for this. Especially, in Pakistan there is a need to study their practices and having check and underlying principle of TQM is on initial level where awareness and balance of their quality standards by some procedures which a chunk of implementation is under process and specifically in fact explores the research areas. Cement industries in Pakistan’s cement industry started exporting and increased their Pakistan are currently operating at their maximum capacity compatibility gradually with international standard. The point here is which is one of the important factors for taking this research. to discuss to validate the instrument which assures the TQM in the In anticipation of a study carried out by Saraph et al. organization as well as industry. The main purpose of this research paper is to study the working methods of cement companies by (1989), and I. N. Josph et al. (1999) no comprehensive considering TQM as important part in their organization. The data measure was identified and established as tool for assessment obtained from a survey is very useful in calculating total quality of total quality practices and their measures for organizations. management of the cement companies. By references, the result of We used the same tool by customizing the operating elements this research can also be applicable to other organizations with minor used in the above authors research according to Pakistani changes depending on culture and per requirement of organizations environment. Saraph et al. (1989) and I. N. Josph et al. (1999) to be more professional in industry. considered their study to be preliminary and postulate future

work in different organizations and industries of different Keywords—Total (TQM), Cement Industry (CI). geographical regions which becomes basis for our research work upon which we endeavor to authenticate the instrument I. INTRODUCTION used to measure quality management implementation in business industry (specifically cement industry in this study) EW era of machines, tools and intelligent labor changed of Pakistan. Nthe dimensions of manufacturing which pass on the dimensions of human acts, from handicraft to high tech, in II. LITERATURE REVIEW fact very common and applicable to industrial production, in which transformation process used to generate finished goods TQM has been used successfully in variety of on a large scale. The stem of manufacturing and trade is based organizations, including manufacturing based organizations. on the fabrication, processing, or preparation of products from Total Quality Management has various descriptions including raw materials and commodities. Major industries include the gurus of TQM like Deming, , Crosby, Ishikawa, Juran and cement, fertilizer, edible oil, sugar, textile, steel, tobacco, Feigenbaum defined the concept in different variations. chemicals, machinery and food processing with all the quality According to Deming, quality is a continuous quality standards approaching the sense of Total Quality improvement process in the direction of conventional degree Management. of regularity and steadiness. Deming elaborate 14 principles Pakistan's cement industry in progress and exporting of quality management to improve productivity and cement in the year 2001 and it has increased its compatibility performance of the organization. Juran (1995) noted that gradually, as noteworthy enhancement has been taking place where as the 20th century became famous for world with every passing day. Cement industry's installed capability productivity, the 21st century would become well recognized had dramatically increased for last five years which opens a as the “century for quality.” Juran defined quality as “fitness for use.” M. Noman Malik is Lecturer in department of Management Sciences and TQM used for achieving excellence in production and working with the National University of Modern Languages, Islamabad, overall organizational performance (Jabnoun and Sedrani, Pakistan (+923315500094; e-mail: [email protected]). 2005). TQM also generates excellence within their practices Huma Hayat Khan, is Lecturer and working with the National University of Modern Languages, Islamabad, Pakistan (+923315500093; e-mail: and organizations are more likely to get success (Lakhe and [email protected]). Mohanty, 1994).

128 International Conference on Trends in Mechanical and Industrial Engineering (ICTMIE'2011) Bangkok Dec., 2011

TQM can be defined as holistic management philosophy quality department (RQD) the original number of item is 7, in endeavour continuous improvement in major concerned areas quality information system (QIS) the original number of item of an organization to deliver goods in line with customers, is 4 but 1 item is deleted, in technology utilization needs or requirements (Demirbag et al., 2006). Top (TEC),operating procedures (OPP) and training (TRG) the management is always very important stakeholder for the original number of items are 4,4 and 5.so the total original improvement in organization. (Karuppusami and number of items are 79 and deleted number of items are 6.the Gandhinathan). M.S.Owlia and E.M.Aspinwall (1996) final number of items are 73. initially emphasized area was infrastructure of quality dimension and its consequent description were identified. IV. FINDINGS Dr. Kamran moosa, CEO of PIQC has conducted survey A factor analysis performed on all 79 items by of industrial (2003) of 20 most renowned companies in Pakistan and he and academic professional items quantify the level of observed the quality standards and their practices which operating elements of TQM in business units for find out the specify the importance of total quality approach in the essential factors of the TQM process. Factor analysis with an manufactured organizations. assortment of revolution generated ten underlying factors. The TQM factors have an important impact on a range of items were arranged according to the Indian authors [3]. performance measures and practices crosswise countries. TABLE I These are the top most important factors which must be kept CONSISTENCY ANALYSIS OF TEN FACORS OF TQM in mind while implementing the TQM approach in an organization i.e management commitment and leadership, employee involvement, information and analysis, training, supplier management, strategic planning, customer focus, human resource management, product and service design, process management, teamwork, process control, continuous improvement, employee empowerment, , benchmarking, social responsibility, and employee satisfaction.

III. METHODOLGY To anticipate analytically the practice of TQM via this tool, we have taken 3 cement companies which are very renown in Pakistan. One of the most important reason for taking these organizations are the geographically dispersion as they are from different regions of Pakistan. A questionnaire After the factor analysis, the internal uniformity technique based on 10 critical factors taken out by the Saraph in 1989 was used to estimate the trustworthiness of each factor. The and I. N. Joseph, C. Rajendran and T. J. Kamalanabahan work questionnaire adopted from research work of authors (I. N. in 1999 which indicates the quality management as a Joseph, C. Rajendran and T. J. Kamalanabahan, 1999) and comprehensive measure of integrated TQM implementation finally designed, composed and articulated by the academician was presented to the organizations which are composed as and professionals in this study was anticipated to endow with follows. These items were recommended by the panel which business organizations of Pakistan with information on the consists of industrial and academic professional for the decisive factors of TQM. development of the measurement instrument of TQM. Finally, 73 items emerged out of the analysis after the During the screening process of questionnaire, a lot of dropping of 6 items. The items which materialize from the suggestions and critical observation is presented for the trustworthiness of the study which shows significance of appropriateness of this instrument which then converged in wide-ranging measure of TQM implementation in Pakistani the following way. 79 items were taken out from 111 cement Industrial organizations. Finally, 73 items emerged out questionnaire presented in authors (I. N. Joseph, C. Rajendran of the analysis after the dropping of 6 items. The items which and T. J. Kamalanabahan, 1999) work to articulate as a materialize from the trustworthiness of the study which shows questionnaire thus developed by the experts and practitioners. significance of wide-ranging measure of TQM In organizational commitment (OC) the original number of implementation in Pakistani cement Industrial organizations. item is 16 but 1 item is deleted, in human resources The scale used for this survey is: management (HRM) the original number of item is 13, in 1=Excellent, 2=Good, 3=Mandatory, 4=Satisfied, supplier integration (SI) the original number of item is 8 but 1 5=Dissatisfied. item is deleted, in quality policy (QP) the original number of Each respondent were asked to rate the performance with item is 10 but 2 items are deleted, in product design (PD) the respect to quality of the organization unit against establish original number of item is 8 but 1 item is deleted, in role of factors. These performances were arranged to get a single value of quality performance against each factor for three

129 International Conference on Trends in Mechanical and Industrial Engineering (ICTMIE'2011) Bangkok Dec., 2011 companies. And then comparison did for each factor for three different an industry which generates the validity concerns for companies in cement industry for further improvement and this tool as well as practice of TQM. respective total quality strength. Thus comparison and correlation among critical factors point out that the ten ACKNOWLEDGMENT measures of quality management, considered together, have a We are very grateful to the referees for the priceless high degree of criterion-related validity. proposition and productive remarks for respective Now the above tool is useful to have perfect determinants organizations and we also encourage the students who for TQM factors scoring. Scores of factors are mean values of participated in this research for survey conduction, without respondents according to the scale and at the end TQM them it can’t be possible. implementation contain mean of the means respectively. The scores are discussed under table 2. REFERENCES By understanding the above data, we can have comparison [1] Saraph, J. V., Benson, G. and Schroeder, R. G., 1989, An instrument for among critical factors of TQM which helps a lot to evaluate measuring the critical factors of quality management. Decision Sciences, the level of TQM from the ten factors of TQM which are 20, 810- 829. common to Pakistan as well as in India. By this course of [2] Jabnoun, N., & Sedrani, K. 2005. TQM, Culture and Performance in UAE Manufacturing firms, Quality Management Journal, 12(4), 8-20. action management of the organizations will put more [3] Deming,W. E., 1982, Quality, Productivity and Competitive Position emphasis on the lacking areas and will standardized the work (Cambridge, MA: MIT Centre for advanced Engineering) by following improvement strategies. Such organizations [4] Deming, W. E., 1986, Out of Crisis (Cambridge, MA: MIT Centre for Advanced Engineering). could help other industrial organizations to asses the [5] Crosby, P. B., 1979, Quality is Free (New York: McGraw-Hill). fruitfulness of critical factors within their business line and get [6] Ishikawa, K., 1985. What is Total Quality the Japanese Way some assessment criteria against their quality practices. So by (Englewood-Clifs: Prentice Hall). [7] Juran, J.M., 1986, The quality trilogy. Quality Progress, 9(8), 19- 24. adopting the standardized procedure, continuous improvement [8] Juran, J.M. and Gryna, F.M., 1980, Quality Planning and Analysis (New of quality can be approached. York: McGraw- Hill).

V.CONCLUSION

Research developed ample evidence about empirically based tool for measuring the TQM implementation in business unit in Pakistan. The 10 decisive factors with a total of 79 operating system elements of quality management used to assess the implementation of TQM in organizations. The Relevancy of items used in this study can have comparison to with Saraph et al’s (1989) and the modified study in India by

Joseph et al’s (1999). This study in pioneer in his nature as this is first time that research conducted here in Pakistan specifically in Cement Industry to measure the critical factors of TQM. The findings of this study shows extent and intensity of mapping the TQM practice in the valuable organization of Pakistan specifically in Cement industry. Result also reveals the importance of critical areas where organizations must have to be careful for practices and improvement plans. The managers may utilize this tool for identifying, recognize, compare and evaluate TQM practices within their organization.

VI. LIMITIATION The major limitation of this study is the small sample size due to the larger questionnaire as instrument. And this study only applied in Cement industry organizations where as it can be further extended to multiple organizations as well as multiple industries.

VII. FUTURE WORK

The research study conducted here in Pakistan postulate a new ear for future research in multiple organizations with relatively larger sample size. It can be further extended in

130 International Conference on Trends in Mechanical and Industrial Engineering (ICTMIE'2011) Bangkok Dec., 2011

TABLE II TQM PROFILE OF CEMENT INDUSTRY OF PAKISTAN

No. OC HRM SI QP PD RQD QIS TEC OPP TRG TQMI

1 2.00 2.31 3.13 1.40 2.13 2.71 2 2.75 1.75 2.00 2.22

2 1.63 1.77 2.75 1.60 1.88 1.86 0.75 1.5 1.75 1.60 1.71

3 2.19 2.69 3.50 1.80 1.50 2.71 1.5 2.5 1.75 1.60 2.17

4 2.13 2.38 3.13 1.90 2.13 2.86 1.75 2.75 1.75 1.80 2.26

5 1.75 2.38 2.63 1.60 2.13 2.71 1.75 2.75 1.75 1.60 2.10

6 2.06 2.15 2.75 1.20 1.50 2.71 1 2.25 1.75 1.80 1.92

7 2.13 2.15 3.00 1.20 2.13 2.29 1.75 2.75 2 1.80 2.12

8 2.06 2.31 2.88 1.50 1.63 2.29 1.5 2.75 2 2.00 2.09

9 2.06 2.15 3.25 1.80 2.13 2.43 1.5 2.5 2 1.80 2.16

10 2.19 2.77 2.88 1.60 2.00 3.00 2.25 2 2 2.00 2.27

11 2.06 2.62 3.00 2.10 2.25 2.57 1.75 2.5 2 2.00 2.28

12 2.38 2.23 2.75 1.40 2.13 2.86 2.25 2.25 2.25 2.40 2.29

13 1.75 2.08 3.38 1.60 2.75 2.43 1.75 2.25 2.25 1.80 2.20

14 2.31 2.46 3.13 2.00 2.00 2.43 1.5 2.5 2.25 1.40 2.20

15 1.81 2.46 3.00 2.00 1.75 2.43 0.75 3 2 2.20 2.14

16 2.38 2.15 3.13 1.70 2.63 3.29 1.75 2.75 2 1.60 2.34

17 2.00 2.23 3.25 1.60 2.13 2.57 1.5 2 2 1.80 2.11

18 2.25 2.00 3.88 1.30 1.88 2.29 1.5 2 2.25 1.60 2.09

19 2.25 2.62 3.00 1.80 2.13 2.71 2 2.5 1.75 2.20 2.30

20 2.38 2.69 2.63 1.60 2.63 3.29 1.25 2.75 2.75 1.60 2.36

21 2.38 2.31 3.00 1.90 1.88 2.29 1.5 2.5 2.25 1.80 2.18

22 2.56 2.62 3.13 1.40 2.00 2.57 1.75 2.5 2.25 2.40 2.32

23 2.56 2.46 3.50 1.70 2.13 2.14 1.75 1.5 2.25 1.60 2.16

24 2.25 2.00 3.88 1.80 2.13 2.71 2 2.75 2.75 2.00 2.43

25 2.25 2.00 3.63 2.30 2.13 3.14 1.5 3 2.25 2.00 2.42

26 2.25 2.00 2.38 1.90 2.38 3.00 2 2.5 2.75 2.00 2.32

27 2.19 2.23 3.00 1.40 2.88 2.43 1.25 2 2.25 1.60 2.12

28 2.19 2.77 3.38 2.30 2.38 2.43 2.25 2 2.25 2.00 2.39

29 2.06 2.62 3.50 1.60 2.13 2.43 2.25 2.25 3 1.60 2.34

30 1.88 2.31 2.50 1.40 1.75 2.57 0.75 1.75 2.25 2.00 1.92

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