Total quality management in the supply chain of a petrochemical organisation

Abstract: The objective was to investigate the extent of the use of total quality management (TQM) practices in a supply chain of a petrochemical organisation. TQM is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. The study was carried out in the petrochemical industry, which is of economic significance to the country. An existing TQM questionnaire was used and a total of 200 employees were targeted. The questionnaire had a seven-factor structure with acceptable Cronbach Alpha co-efficients. Overall, there was a significant number of employees who agree that total quality management is not practiced within their work areas and leading to a high number of quality related customer complaints. Management and employees are encouraged to be visibly involved in the development of a TQM transformation. TQM requires support from management, long-term strategic decision-making and motivated personnel

Total quality management in the supply chain of a petrochemical organisation

Abstract: The objective was to investigate the extent of the use of total quality management (TQM) practices in a supply chain of a petrochemical organisation. TQM is a method by which management and employees can become involved in the continuous improvement of the production of goods and services. It is a combination of quality and management tools aimed at increasing business and reducing losses due to wasteful practices. The study was carried out in the petrochemical industry, which is of economic significance to the country. An existing TQM questionnaire was used and a total of 200 employees were targeted. The questionnaire had a seven-factor structure with acceptable Cronbach Alpha co-efficients. Overall, there was a significant number of employees who agree that total quality management is not practiced within their work areas and leading to a high number of quality related customer complaints. Management and employees are encouraged to be visibly involved in the development of a TQM transformation. TQM requires support from management, long-term strategic decision-making and motivated personnel

Challenges Affecting Performance of Supply Chain Systems in the Petroleum Industries in Kenya

The purpose of this study was to establish the challenges affecting performance of supply chain systems in the petroleum industries in Kenya. The study was used to exam several parameters that affected’ Supply chain performance in Kenya resulting to often oil shortages. This has been occasioned by globalization which was intensifying competition and increased the mobility of high skilled personnel yet oil companies depend on the staff for success and sustainability. Specifically, the objectives of the study was to establish whether how these factors; level of skills, information and communication technology has effect on supply chain systems, This is a conceptual paper and the methodology used is analytical data after collection from the sample size targeted by the researcher in which in depth literature review is done to highlight how companies can incorporate performance of supply chain tools in their supply chains systems. The study was conducted using a survey design. A census of all the registered 73 oil companies was conducted. Data was collected by use of instruments. This involved both structured and semi-structured questions.  Data was analyzed mainly by use of descriptive and inferential statistic such as mean and standard deviation. This was more than the generally recommended sample size of 100 cases for statistical data analysis (Kothari, 2011). Inferential statistics including correlation, multiple regressions enter method and multiple regressions (Stepwise) for moderation analysis. Qualitative and Quantitative data was put into categories based on themes that was aligned to thesis objectives and was integrated in the findings. Keywords? Supply chain systems, level of skills, information communication and technolog

Key characteristics for designing a supply chain performance measurement system

Purpose The purpose of this paper is to conduct a review of the literature that gives insight into design elements for constructing a supply chain performance measurement (SCPM) system. Design/methodology/approach A systematic review of published research on SCPM systems and frameworks over the last two decades was conducted with the purpose of categorising key functions of SCPM systems by providing an insight into the design, functionality, implementation and practical implications of SCPM systems. Findings The review revealed a set of functions governing the SCPM system that have not been fully explored in previous research: the process focus, prioritisation, integration and causality functions of a SCPM system. A relationship between two or more functions can be created to include more functionality based on the needs of the company to create a comprehensive performance measurement system. Research limitations/implications The paper concludes with a conceptual framework to guide future research in the area of designing a SCPM system and define the main aspects that should be considered when developing a SCPM system. Practical implications The paper brings a new dimension to the SCPM research by identifying the main functions of SCPM systems that could benefit practitioners to set up a SCPM system relevant to its intended function. The paper presents multiple potential stages of merging different functions in one SCPM system. Based on the company’s needs and context, the functionality of the SCPM system can be designed at four levels creating ten possible scenarios when designing a company’s SCPM system. Originality/value The paper integrated the literature and findings of 269 research papers of the last two decades, upon which a conceptual framework was developed as a guide for constructing an effective SCPM system

Performance measurement framework for the oil and gas supply chain

Purpose There is evidence in the literature suggesting the usage of performance measurement framework (PMF) has a positive impact on organisational performance. This is in line with resource based view (RBV) theory, which argues attaining competitive advantage through internal resources and capabilities. In this regard, PMF can be viewed as a “resource” that can be explored in enabling organisational performance. This paper is aimed at developing PMF for the oil and gas supply chain (SC) as a resource and strategic capability. Design/methodology/approach Drawing on RBV theory, a questionnaire survey was designed based on prior literature review and exploratory interview with five SC experts. Following this, the questionnaires were distributed to 550 companies in the UK and 120 companies in Malaysia, which resulted in 15% overall response rate. Findings This study presents the prevalence of performance measures (PM) for the oil and gas industry based on the level of importance. It also reveals the impact of the usage of PMF on overall organisational performance. In addition, it identifies the challenges in managing SC performance and factors to be considered in choosing PM. Originality/value This study identifies the challenges in managing SC performance and establishes distinctive factors to consider when choosing PM in the oil and gas SC

Gestão da performance na cadeia de abastecimento lean: desenvolvimento de uma framework baseada no balanced scorecard

Dissertação para obtenção do Grau de Mestre em Engenharia e Gestão IndustrialPara manterem a competitividade, num ambiente cada vez mais volátil e imprevisível, as organizações procuram a melhoria contínua nas cadeias de abastecimento em que estão inseridas. O objetivo passa por aperfeiçoar os seus processos de gestão e melhorar a sua performance. O paradigma lean ligado à cadeia de abastecimento reflete-se numa estratégia baseada na redução de custos e tempos, no sentido de melhorar a eficácia e eficiência. A nível operacional, a cadeia de abastecimento lean tem como objetivo melhorar os processos de toda a cadeia de abastecimento, procurando a simplificação, reduzindo o desperdício e atividades que não agregam valor. Da revisão da literatura constatou-se que existem diversos trabalhos sobre a gestão da performance na cadeia de abastecimento, no entanto, quando se trata da cadeia de abastecimento lean, verifica-se que o tema está pouco explorado, em particular no que diz respeito a estudos realizados em Pequenas e Médias Empresas. Assim, é objetivo desta dissertação abordar a integração dos conceitos associados à cadeia de abastecimento lean com a gestão da sua performance. Com base na revisão da literatura, foram identificadas 88 medidas de performance aplicáveis num contexto lean. Com o propósito de construir um sistema de gestão da performance lean, as diferentes medidas foram integradas nas perspectivas do Balanced Scorecard. A escolha do Balanced Scorecard como sistema de gestão da performance serviu de inspiração para o desenvolvimento de uma framework constituída por sete fases consecutivas. Com carácter iterativo, a aplicação da framework tem como objetivos: (i) fomentar a aplicação de uma abordagem lean na gestão da performance das organizações; (ii) avaliar o grau lean das organizações. Por fim, procedeu-se à aplicação desta framework numa pequena empresa portuguesa do sector alimentar, sob a forma de caso de estudo, com os objetivos de avaliar o grau lean da organização e a consciencialização da gestão para as práticas lean

Performance measurement framework for the oil and gas supply chain

This study examines performance measurement in the oil and gas industry. The aim is to identify the prevalence of performance measures and to provide evidence of the potential impact in the usage of performance measures on organisational performance. The study investigates the links between organisational strategies, choice of performance measures, and organisational performance. The resource-based view (RBV) theory and Miles and Snow's organisational fit theory were, respectively, used to explain the research and as the basis for analysis of results. The organisational fit theory states that organisation's approach to competition can be classified into four main strategies. These strategies will influence the way they manage their organisations and lead to different performance outcomes. This may include the way they measure their supply chain performance. The resource-based view suggests that organisations can achieve superior performance through internal resources and competencies. Based on this theory, performance measurement framework is viewed as one of the important organisations’ resources. A literature review on supply chain performance measurement was carried out to identify performance measures that are relevant to the oil and gas industry. This resulted in an initial list of measures based on the review. Exploratory interviews were then conducted to confirm the measures, understand the contextual definitions of the measures, and to find out from practitioners what additional measures they consider important beyond those obtained from the literature. This resulted in a broader set of performance measures, which were then validated through a self-administered questionnaire survey. A total of 550 questionnaires were sent out to UK companies whilst 120 to Malaysian companies. A total of 100 responses were received from both countries, which accounts to 15% response rates. The outcomes of the survey clarify the prevalence of performance measures in the industry according to the level of importance. Correlation and regression analyses indicate that there is a link between the choice of performance measures and organisations’ strategies. Also, the results indicate a link between choice of performance measures and the actual performance of the organisations, suggesting that performance measures are critical resources of organisations used to support competitiveness in line with resource-based view theory. In addition, this study identifies the most influential strategy and performance measures in enhancing organisations’ performance within the oil and gas industry