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QCs
Problems, success factors and implementation
benefits of QCs implementation:
a case of QASCO
87
Salaheldin Ismail Salaheldin
Department of Management and Economics,
College of Business and Economics, Qatar University, Doha, Qatar
Abstract
Purpose – The purpose of this paper is to attempt to: explore the problems that the production division
of Qatar Steel Company (QASCO) typically encounter in implementing QCs, identify the critical success
factors promoting QCs implementation and discern the real benefits of QCs implementation.
Design/methodology/approach – Data for this study were collected using a self-administered
questionnaire that was distributed to 400 QCs members within the five departments (i.e.
Manufacturing, Maintenance, Direct Reduction, Material Control and Technical departments) which
comprised the production division of QASCO. Of the 400 questionnaires posted, a total of 197 were
returned and used for the analysis.
Findings – The results of the study indicated that lack of support from top management was
reported as the biggest problem impeding the implementation, and also commitment and support from
top management were reported as the most important success factor of QCs implementation in the five
departments. More importantly, the findings indicated that QCs implementation has created an
atmosphere of cooperation within QASCO and produced many positive results including improving
quality, increasing productivity, and improving the management style.
Research limitations/implications – The sample is restricted to only a single division, i.e. the
production division of QASCO, so it would be strongly recommended that data be gathered from
various divisions of QASCO, i.e. replications of this study are required to generalize its findings.
Studying the deriving and inhibiting forces to QCs implementation in practice remains a task that
requires further attention from researchers, whatever their motivations.
Practical implications – The findings are important and relevant to all the departments in QASCO.
The study hopes to create more awareness among management and employees of the strategic
importance of QCs to operational processes. More importantly, the benefits attained would be a
motivating factor for managers to use QCs.
Originality/value – The research provides empirical insights to the growing body of knowledge on
QCs implementation. Most of QCs research has been done in developed countries. The study presents
the successful adoption and implementation of QCs in a manufacturing firm in a developing country of
the Middle East where published research results on the successful use of QCs have been rather scarce.
Keywords Quality circles, Critical success factors, Qatar
Paper type Research paper
Introduction
The current competitive environment and globalization of business have created new
challenges that can affect and alter manufacturing environment. Therefore, adopting
and implementing new management techniques and approaches is a strategic option
for manufacturing companies that might help them survive under global competition.
The TQM Journal
One of the most popular management techniques adopted by organizations around the Vol. 21 No. 1, 2009
world has been the Continuous Improvement (CI) which is thought to play an pp. 87-100
q Emerald Group Publishing Limited
important role in maintaining a company’s competitiveness. CI generally takes account 1754-2731
of the activities performed under the names of Statistical Quality Control (SQC), DOI 10.1108/17542730910924772
TQM Quality Circles (QCs), Quality Improvement Team (QIT), Six Sigma, etc. The significance
of QCs as one of the most effective means to Continuous Improvement cannot be over
21,1 emphasized (Zailani, 1998). Accordingly, more has been written about QCs technique
than any other technique about Japanese management during the past three decades.
There is a consensus among academics and practitioners that QCs implementation
leads to increasing productivity, improving product quality, narrowing the gap
88 between workers and administration, enhancing worker pride, allowing subordinates
to air their concerns about working conditions and instilling a spirit of democracy. The
results are a mutual trust and respect, an atmosphere of cooperation and the
attainment of a proud, productive, and profitable organization (Zailani, 1998; Goh,
2000; Canel and Kadipasaoglu, 2002).
However, review of the literature indicated that there are very few case studies
which explore and illustrate, in detail, how QC is implemented and used in
manufacturing firms whether in developed or less developed countries (Al-Khatib and
Radi, 2003; Salaheldin and Zain, 2007). In particular, there have not been any reported
studies of success in the use of QCs in any of the Gulf Cooperation Council (GCC)
countries. Responding to this need, the current study fills this gap and contributes to
the extant literature by reporting a success story of the effective use of the technique in
the State of Qatar, a member of the GCC countries. From previous research in this area
done in the Far East, USA and Japan, manufacturing firms in less developed countries
may not be in a position to benefit from their findings since they were based on a
different manufacturing environment.
Considering the literature findings, the following research questions are addressed
in this study:
RQ1. Do quality circles work equally well as in the Japanese, USA and Western
companies?
RQ2. If so, how can QCs be implemented successfully in Qatar?
To answer the aforementioned questions, this study attempts to explore the problems
that the production division of Qatar Steel Company (QASCO) typically encounters in
implementing QCs, to identify the critical success factors promoting QCs
implementation in the production division of QASCO and to discern the real benefits
of QCs implementation.
After this introduction, the profile of QASCO is presented followed by the review of
the literature pertaining to our study. Next, we present the contribution of this study to
current knowledge. This is followed by the research methodology. Next, we present the
data analysis and hypotheses testing. Finally, we provide conclusion, implications and
limitations and directions for future research.
QASCO profile
Qatar Steel Company (QASCO) is a wholly-owned subsidiary of Industries Qatar (a
Qatari shareholding company) and is the first integrated steel plant in the whole
Arabian Gulf. The company was established on 14 December 1974, but steel
production at the plant started only in 1978. The mill is located in Mesaieed Industrial
City, 45 kilometers south of Doha, the capital of Qatar (Salaheldin and Zain, 2007).
The integrated plant consists primarily of four units: Direct Reduction, Electric Arc
Furnace, Continuous Casting, and Rolling Mill. Other auxiliaries include the Material
Receiving/Handling, Main Power Substation, Quality Control Centre, Maintenance
Shops, and other facilities as sea/fresh water, compressed air, natural gas and a clinic.
The whole plant including its administrative offices occupies a land area of QCs
707,000 sq.m. Adjacent to the land is a further land area of 375,000 sq.m reserved for
future development and expansion of the plant. implementation
With its latest production technology and equipment, the plant generates an annual
production of 1.2 million tons of molten steel and 740,000 tons of rolled iron per year.
The plant employed a total workforce of approximately 1,250 employees comprising 12
different nationalities. With the exception of the office staff, the mill is run on a 89
three-shift system. Since the start of its first production, the company has undergone
rapid growth and expansion and has achieved many milestones, certifications and
awards.
Over the years, QASCO has gained a reputation as a manufacturer of first class
products. Its product quality is tailored in accordance with international standards. For
example, in addition to getting ISO 9002 certification in 1992, the product and
management quality of the company has been endorsed by the UK-based Certificate
Authority for Reinforcing Steels (CARES), an authority which is accredited by the
United Kingdom Accreditation Service (UKAS) to ISO Guide 65 (product certification)
and ISO Guide 62 (quality management systems certification using ISO 9001 (www.
qasco.com.qa/, 14 October 2006). The product is supported by an effective and reliable
delivery and after sales service. Its proximity to the Gulf Cooperation Council (GCC)
countries enables it to supply a sizeable portion of the region’s requirements, as well as
Qatar’s own domestic need.
Research methodology
Survey instrument
The survey instrument used in this study was largely derived from the literature
review. These include the adoption of questions from successful studies previously
conducted in related field of study such as: Hill (1997); Pinnington and Hammersley
(1997); Canel and Kadipasaoglu (2002); Zetie (2006). The questionnaire distributed
contained eight questions in four different categories as follows:
(1) Questions 1-5 – preliminary information on the respondent (i.e. title, work
experience, experience on QCs, specialization and QCs meetings).
(2) Question 6 – data on the critical factors promoting QCs implementation.
(3) Question 7 – data on QCs implementation problems.
(4) Question 8 – data on the benefits have been achieved.
The sample
Data for this study were collected using a self-administered questionnaire that was
distributed to 400 QCs members within the five departments (i.e. Manufacturing,
Maintenance, Direct Reduction, Material Control and Technical departments) which
comprised the production division of QASCO. The study focused on the production
division, since it has been a leader in implementing QCs in Qatar. Although one could
claim that a focus on one division may make the results less generalizable, we ensured
a high level of internal consistency.
It was requested that the questionnaire be completed by QCs members i.e. workers
and their mangers participating in the QCs implementation. Of the 400 questionnaires
distributed, a total of 203 questionnaires were returned after two follow-up. About 6
questionnaires were unusable because they had missing values. The overall response
rate was thus 49.25 per cent (197/400), which was considered satisfactory for
subsequent analysis. Care was taken to include the five departments which comprised
the production division in the sample. Consequently, the final usable sample was
drawn from all the departments as follows: 43 members from manufacturing
department, 34 from maintenance department, 38 from direct reduction department, 49
from material control department and 33 from technical department.
A majority of the respondents were workers (74 per cent), and approximately 26
per cent were managers. With respect to years of working with QCs programs,
approximately 72.3 per cent of the sample had used QCs programs for more than
ten years, and 27.7 per cent had used it for less than ten years. In terms of working
years in the production division 60.56 per cent of the respondents had worked for
more than 15 years, 28.14 per cent had worked in it between 10 and 15 years and QCs
22.40 per cent had worked for less than 10 years. Finally, a majority of the
respondents indicated that they had met voluntarily under the leadership of their
implementation
supervisor on a regular basis, usually for about one hour every month or week (93.3
per cent), and the rest of the respondents (6.7 per cent) had met on a daily basis or
when there was a problem.
91
Reliability and validity of the instrument
The instrument was examined by Cronbach’s alpha which is a widely accepted index
to indicate the reliability of the instruments. These coefficients are represented for each
of the constructs in (Table I). All scales have reliability coefficients ranging from 0.83
to 0.91, which exceed the cut-off level of 0.60 set for basic research (Nunnally, 1978),
and all the alpha values indicate that the study’s instrument is reliable. Moreover, the
questionnaire was pre-tested to ensure that the wording and sequencing of questions
were appropriate and it was also validated (face validity) by 24 QCs members in the
production division of the QASCO.
Hypotheses
Thus, in order to shed light on the perception of QCs members and their managers
concerning QCs implementation in the five departments which comprise the
production division of QASCO, the following hypotheses were set up:
H1. There is no significant difference between workers and their managers
participating in QCs programs in the production division concerning the
critical factors promoting QCs implementation.
H2. There is no significant difference between workers and their managers
participating in QCs programs in the production division concerning the
problems of QCs implementation.
H3. There is no significant difference between workers and their managers
participating in QCs programs in the production division concerning the
benefits obtained from QCs implementation.
H4. There is no significant difference among QCs members in the five
departments concerning the critical factors promoting QCs implementation.
H5. There is no significant difference among QCs members in the five
departments concerning the problems of QCs implementation.
H6. There is no significant difference among QCs members in the five
departments concerning the benefits obtained from QCs implementation.
On the contrary, Table III suggests that support from middle and first line managers is
not a major factor (SD 1.51) in promoting QCs implementation. This may stem back
from the fact that QCs programs at QASCO are embraced as a strategic approach for
improving quality and increasing productivity to remain competitive in the market
place, rather than as a technique in isolation or as a special activity or quick prelude to
TQM (Goh, 2000).
QCs increased self-confidence for both workers and staff 4.7 0.15
Staff are better motivated in QCs departments 4.4 0.35
Customers are happier at QCs departments 3.8 0.68
QCs improved product quality 4.8 0.11
QCs saved time on operational matters 4.2 0.57
QCs increased staff satisfaction 4.5 0.23
QCs increased productivity 4.9 0.08
QCs increased empowerment 3.1 2.63
QCs reduced the number of errors in the department 3.5 0.23
QCs improved the work environment 4.3 0.48
QCs increased the work accountability 4.0 0.98
QCs improved organizational climate 3.9 0.07
QCs improved the work integrity 4.6 0.22
QCs improved the management style 3.6 0.81
QCs improved staff awareness of organizational goals 4.1 0.69
Table IV.
QCs implementing Notes: aBased on a Likert scale: 1 ¼ “strongly disagree”; 5 ¼ “strongly agree”; bthe standard
benefits deviation is used in order to state the degree of consistency
Hypotheses testing QCs
H1. It appears from Table V that there are no significant differences between workers
and their mangers participating in QCs programs concerning the critical factors
implementation
promoting QCs implementation (i.e. H1 is supported). This result is supported by prior
research that have noted that QCs programs can only flourish in an organization where
management is open to genuine two-way communication with the workers, where
there is a reasonably good level of industrial relations, and where there is a total 95
organizational commitment towards quality and productivity (Zailani, 1998).
H2. The results indicate that real differences exist between workers and their
managers participating in QCs programs with respect to two implementation problems
i.e. lack of clear goals for QCs effort and delay in responding to QCs recommendations
(H2 is relatively supported). Using Mann-Whitney and T-test to find out if these
differences are statistically significant or not showed the following findings:
.
The findings indicate that there are some respondents who pointed out that lack
of clear goals for QCs effort was not one of the problems that hinder the
implementation of QCs in the production division. This may stem from the fact
that the majority of QCs at QASCO meet on a regular basis whether or not there
is a specific goal for such a meeting i.e. some of QCs members felt that QCs were
running out of clear goals.
.
It appears from Table VI that delay in responding to QCs recommendations was
not regarded as one of the problems that impede QCs implementation based the
points of view of some of respondents. That is not surprising, because some QCs
members realize that the role of QCs is consultancy i.e. top management can take
into account their recommendations or ignore them.
H3. The results of Mann-Whitney and T-test in Table VII support H3, that there is a
consensus between workers and their managers that all benefits, except for one,
mentioned below have been achieved.
There is a significant difference between workers and their managers concerning the
impact of QCs implementation on improving the management style i.e. developing a more
participative style of management and increasing the departmental interaction. This
result is supported by the results of Zailani (1998), where she found that there was little
doubt that QCs programs have made a significant impact on the management styles and
organizational climate of many companies in Malaysia. However, it is important to bear in
mind that one of the major tasks of top management is to influence the setting of
organizational values and develop suitable management styles to improve the firm’s
performance.
the increased readiness of the QC members to overcome future quality problems and
the possibility of advancement in the organization, increased productivity, increased
job satisfaction and increased employees involvement, (Dean and Bowen,1994;
Olberding, 1998; Zailani, 1998; and Konidari and Abernot, 2006).
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Corresponding author
Salaheldin Ismail Salaheldin can be contacted at: salahialy@qu.edu.qa