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An Investigation of Total Quality Management Implementation

Status For The Libyan Cement Industry: A Case Study


Rajab Abdullah HOKOMA, Mechanical & Industrial Engineering Department, Al-
Fateh University, Libya,
e-mail: rhokoma@alfateh.edu.ly

Abstract
tenet in managing old-fashioned
Libyan industries have struggled with many manufacturing industries. In the 1990s
difficulties during the past decades due to quality systems such as ISO 9000 started to
many problems. These have created a emerge, and were implemented for the first
strongly negative impact on the productivity time in a number of major companies within
and utilization levels of many industries the country. During that time,
within the country. This paper investigates comprehensive sets of technical standards
the current implementation status of Total were maintained and institutionalized to
Quality Management (TQM) within the develop the standardization of products,
Libyan cement industry. A survey services, and any type of products from the
methodology has been applied using an Libyan industries. Despite the spread of
intensive survey questionnaire to the quality management techniques that has
targeted cement companies working within taken place in many other countries, quality
Libya. Based on the analysis of this survey management and its effective
responses, the results showed that the implementation is just beginning in Libya in
management body within the surveyed the recent years (Hendricks & Singhal 1996;
companies has a modest strategy towards Hokoma et al., 2008a; Hokoma & El-Buzidi,
most of the areas that are considered as 2009). TQM should play an increasingly
being very crucial in the successful important role as companies operating in
implementation of TQM. The paper has also Libya compete in both the domestic and
identified limitations within the investigated global markets (Oakland, 2000; Hokoma et
area and has pointed to areas where senior al., 2006a; Hokoma et al., 2006b; Hokoma
managers within the Libyan cement industry et al., 2008a; Hokoma et al., 2008b). The
should take serious actions in order to emphasis on TQM as a management
achieve effective implementation of TQM philosophy and a new way of managing
throughout the entire operations within their companies to improve their overall
companies. effectiveness and the performance towards
achieving World Class
Keywords: Cement, Investigation, Manufacturing(WCM) status has increased
Implementation, Libya, Questionnaire considerably over the past few decades
(Hokoma et al., 2006b; Hokoma et al.,
Introduction 2008c).
Quality management in Libya was The purpose of this paper is to ascertain the
established during the last twenty years, extent of TQM implementation levels within
where traditional quality control methods the Libyan cement industry in order to
were widely adopted as a basic management
provide an insight to the senior managers financial resources. It must be a corporate
within this industry to take actions towards strategy that integrates planning, operations,
immediate improvements within their and the needs of customers and employees
companies. Furthermore, comparison of (Hokoma et al., 2006b; Hokoma et al.,
these findings with a previous study 2008c).
conducted by the author strengthens the
conclusion of this study. Also, this research Various studies (Hendricks & Singhal 1996;
attempts to investigate and identify key areas Mobbs, 2001; World Report International,
of research to see how effectively and 2004; Abdussalam et al., 2004; Hokoma et
efficiently the surveyed industry being run al., 2007b; Hokoma & El-Buzidi, 2007;
and to provide an insight for future Hokoma et al., 2008d), have been carried
improvements. out for the identification of those elements of
successful quality management systems,
An Overview of TQM from three different areas: commitment from
quality leaders, formal evaluation models
TQM was developed in the early 1980's, and and empirical research. Researchers have
has played a significant role in the identified a number of tools and techniques
companies success worldwide, stressing the for quality improvement that are necessary
mutual co-operation of everyone and for TQM success. Managers need to know
everything within the company and which aspects they must consider to
associated business processes, aiming to successfully develop the TQM systems
produce products that meet the needs and within their companies .
expectations of customers as it allows
companies to obtain a high degree of The Current Status Of The Libyan
differentiation and to reduce costs (Hokoma Cement Industry
et al., 2008b). In spite of its advantages,
problems have also been detected in its As the cement production field is considered
implementation, which should encourage the to be a high level competitive industry,
companies to develop a number of Libya has paid a strong attention on this
components in an integrated way for industry as all the raw materials required to
successful implementation of TQM (Dale, produce the cement are locally available.
(1999). The importance of the cement in the
construction sector as well as for the
TQM is one of several quality-based infrastructure buildings is paramount and
practical approaches that many companies extensively used in most of the projects
use, and has been promoted as an approach within the country borders. This makes the
to management that enables companies to cement industry an extremely important
become customer and quality focused. entity requiring further development and
Commonly quoted core values for TQM are better organisation. (Hokoma et al., 2006c;
“customer focus”, “continuous Hokoma et al., 2007a).
improvement”, “focus on processes”, “focus
on facts”, “participation of all the employees The cement industry in Libya is the sole
within the company”, and “committed domain of three main companies, producing
leadership” (Dale, 1999; Hokoma et al., about 7 Million Tonnes of cement annually
2007a). It is a team approach strategy that from 9 plants around the country. This
integrates and encompasses the goals of the production satisfies most of domestic needs.
company with its human, capital, and However, as evident, the average utilisation
capacity of the cement plants is about 50% and updating the current managerial
(World Report International, 2004; Hokoma activities and manufacturing operations. A
et al., 2007a). After the suspension of the survey questionnaire was developed to
United Nations economic sanctions against collect the needed data. It was designed to
Libya in 2001, there was a general investigate the current implementation status
expectation that a significant increase in of TQM within this industry. The developed
investment would occur in the mineral questionnaire was structured into two main
industry in the country. Libya proposed sections; the first section investigates the
more investment in cement manufacturing demographic information of the targeted
and also is promoting the development of a companies. However, in some questions the
number of mineral deposits, which include respondents were given a choice not to
clay, gypsum, and other materials. This answer the question due to confidentiality
expansion includes investment to upgrade reasons. The targeted people for this survey
almost all the cement plants in the country. were the top and senior mangers who were
Libya is also committed to promoting the working within the targeted companies and
development of a number of mineral involved within their key decision making
deposits, which include all the cement raw processes.
materials, iron, salt, sodium carbonate, and
stone (Hokoma et al., 2007a; Hokoma et al., In its second part, the questionnaire included
2008b). questions concerning the TQM
implementation status along with the applied
The cement industry in Libya has been made strategy towards this implementation as well
a high rank of priority to be upgraded with as the current implementation of each of the
high manufacturing techniques and TQM key elements. Each question was
technologies, as well as to be managed given a multiple-choice answer and the
effectively, requiring application of the most respondents were asked to state on a
recent advances in manufacturing Yes/No/Do Not Know scale to tick on the
technologies and managerial techniques as most appropriate answer based on their
Libya is planning to build large projects in detailed knowledge.
the area of construction including upgrading
the infrastructure, which needs millions of The questionnaire was distributed to the
tons of cement. Also, Libya is starting a new targeted participants, a response rate of
era of urban development nowadays and in about 65% from the overall distributed
the near future that would be the largest questionnaires was achieved.
consumer of the cement within the country Complementary to the questionnaire survey,
(Tughar et al., 2007; Hokoma et al., 2006a; three meetings were carried out between the
Hokoma et al., 2010). author and senior managers working within
the surveyed companies. During these
Research Methodology meetings, information related to the cement
industry was provided, and site visits to two
Considering the importance of the cement plants were additionally carried out in order
industry in construction developments to collect more knowledge and information
around the globe, and more over for Libya is about the working environment within this
planning to develop mega construction industry.
projects during this recent years. This
industry is considered for this research in
order to provide and suggest improvements
Data Analysis and Discussion with the used sample. According to Pallant
(2005), a value of 0.70 or above is
The analysis process started with a reliability considered adequate for the reliability of the
test for the entire survey questionnaire, using entire questionnaire.
the Cronbach’s Alpha Coefficient. The
calculated Cronbach’s Alpha value was The managerial level of the respondents was
found to be 0.91, implying that the investigated and the findings are summarised
questionnaires can be considered as reliable as shown in
management. This modest participation from
Figure 1. The findings show that the top
the top managers could be a result of their
managers responses was only with 9% of the
heavy workload as this situation was clearly
total response rate. The highest response rate
realised throughout the one-to-one
was from the lower management level
interviews, carried out during this survey.
(48.3%) followed by 42.7% from the middle
Figure 1, the managerial position levels of the respondents

50.0%

40.0%
Percent rate of the respondents

30.0%

20.0%

10.0%

0.0%
Top management Middle Management Lower Manaagement

Q3-The position level of the respondents

implementing TQM within the surveyed


TQM Implementation Status
industry with a response rate of 15.8%.
The current implementation levels of TQM Surprisingly, the complexity of
within the Libyan cement industry has been implementing TQM has not been mentioned
investigated in order to ascertain its current as an obstacle by any of the respondents.
status, the findings shows that the TQM
implementation status is found to be within The Implementation Status of TQM Key
the range of 39.4% of the total respondents. Elements
The reasons being pointed as obstacles for Further investigation was applied to indicate
not implementing TQM within the the implementation levels of the TQM key
companies that indicated themselves as non- elements within all the surveyed companies.
implementers of TQM (60.6%) are the lack The findings obtained from the analysed
of familiarity with TQM practices (51.6%) data are presented in Table I, which shows
and The lack of top management support that about 80% of the respondents indicate
which found to be within a rang of 32.6% of that their companies are focussing on
the total respondents of non-implementers of implementing internal and external
TQM. The need for formal approval is communication networks. The finding also
pointed as an important obstacle of not
shows that ISO practices are found to be In summarizing these findings, the extent of
implemented within a range of about 87%., the implementation levels of the TQM key
whereas the category of implementing elements within the surveyed industry is
Statistical Process Control practices was found to be modest and in most cases
found the third highest with a percentage indicates to poor situation even within those
rate of about 53.3%, followed by companies who have partially implemented
implementing cost analysis methodology these key elements. This reflects the
which found to be implemented with a range previous results that the TQM
of 46.7. The implementation of QFD, implementation levels within the
FMEA, Experimental and Taguchui investigated industry stands at the modest
Methods and Benchmarking, were all found levels, even within the companies that stated
to be implemented at very poor levels, themselves as TQM implementers.
fluctuating between 0% to about 20% of the
respondents.

Table I, The implementation level of the TQM key elements


Implementation (%)
TQM Key Element
Y N D
Implementing any ISO Practices or their Equivalent 86.7 13.3 00.0
Implementing Quality Function Deployment (QFD) 6.7 46.7 46.6
Implementing Failure Modes & Effect Analysis (FMEA) 00.0 66.7 33.3
Implementing any Experimental or Taguchui Methods 00.0 86.7 13.3
Implementing Statistical Process Control (SPC) practices 53.3 33.3 13.3
Implementing any Benchmarking 20.0 66.7 13.3
Implementing Cost Analysis Methodology 46.7 20.0 33.3
Implementing internal and external communication 80.0 13.3 6.7
networks
Key: Y= Yes; N=No; D= Do Not Know
the relationship between the current
The Relationship Between The TQM implementation status of TQM and the level
Implementation Status and The Level of of practicing the investigated TQM key-
Top Management Commitment levels elements. The direction and the magnitude
of the linear correlation can be quantified
The relationship between TQM with the Correlation Coefficient (r), which
implementation status and the level of may range from -1.00 to +1.00. According to
practicing the TQM key elements within the Cohen (1988) and Pallant (2005), the
surveyed industry was assessed using the Correlation Coefficient (r) with a negative
Spearman Correlation Test, which measures value represents a negative correlation,
indicating that as one variable increases, the
other variable decreases, while a positive other one also increases. The value of 0.00
value represents a positive correlation, represents no correlation.
indicating that as one variable increases, the
Table II, The relationship between TQM implementation status and the top management
commitment levels

Category (r)
Commitment to implementing TQM 0.62
Hold clear visionary goals for TQM 0.68

Share the vision of fulfilling TQM implementation with all the employees 0.88

Develop a detailed implementation plan for TQM 0.29


Identify the necessary Champions for the implementation 0.15
Ensure the necessary resources to implement TQM 0.16
Ensure a clear definition of TQM to all the employees 0.28
Commit to increase the customer satisfaction 0.41

This study is the most recent to investigate


The findings from this correlation test are the TQM implementation status within the
shown in Table II, showing that all the Libyan cement industry. It makes a
investigated categories are within positive contribution by providing an insight into
Correlation Coefficient values, which what extent the TQM practices are being
indicate to a fact that practicing these implemented within this industry. It pointed
categories increases, the implementation that if TQM is to be succeed in Libyan
level of TQM within these companies companies, the organisational cultures have
increases too. The Table also shows that the to change towards a more flexible and
highest Correlation Coefficient values are customer-oriented one. There is a need to
with sharing the vision of fulfilling the total have dynamism in the business where the
TQM implementation with all the related environment is safe to take risks. People
employees; holding clear visionary goals for have to feel that they belong, and the levels
TQM; and the commitment to implementing of morale, trust and participation should be
TQM. Whereas, ensuring the necessary high. Building teamwork, opportunities for
resources for the implantation and growth, and development and decentralised
identifying the necessary Champions for the decisions are important factors for the
implementing TQM are the only two effective TQM implementation. However,
categories that falls within very poor levels. this survey also indicates that managers
Conclusions within the Libyan cement industry express a
clear desire to move towards the
management styles that are required for
effective TQM implementation.
Comparing these results with previous Acknowledgment
findings obtained from research conducted The author is very grateful to Eng.
by the author two years ago (Hokoma et al., Abdussalam Amnider, Director of Housing
2008b), it can be seen that both studies Department, Housing and Infrastructure
focused on the same problem within the Board (HIB), Libya, and Eng. Mansor
same industry through different aspects, both ESBIGA, General Commercial Manager,
obtained similar results, arising the lack of Ahlia Cement Company, Libya, for their
familiarity with new techniques and assistance during this survey.
technologies within the surveyed companies
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Author’s Biography

Dr. Rajab Abdullah HOKOMA began his


career in Industrial Engineering in 1990,
after his graduation from Industrial
Engineering, University of Garyounis,
Libya, he received his Master’s Degree in
Enterprise Management at Warsaw
University of Technology, Poland. Mr.
Hokoma was awarded his PhD and Post-
Doc. in the area of Manufacturing and
Quality Planning & Control from The
University of Bradford, England (UK) in
2007 and 2008 respectively. Presently, his
duties and research at Al-Fateh University
and The Academy of Post-Graduate Studies
(Libya) are in the area of Manufacturing and
Quality Planning & Control, JIT, MRPII,
TQM, SCM, Operations Management,
Industrial Engineering, Maintenance

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