A Study of the Implementation of Quality Management Systems (QMS) within the Kuwaiti Manufacturing Industry

Abdullah M.Kh.M Al-Khadher

Submitted in partial fulfillment of the requirement for the award of the degree of Doctor of Philosophy of the University of Portsmouth

December 2015

Abstract

The intended contribution and unifying purpose of this research was to identify the enablers and barriers affecting the implementation of the quality management systems (QMS) within the Kuwaiti industries context.

This was achieved by assessing the current practices adopted by a number of manufacturing firms in Kuwait and then the gaps or areas that need to be filled were measured.

QMS is defined as an organization's responsibilities, processes, procedures, and resources which guid and control an organization with regard to quality in order to constantly improve the effectiveness and efficiency of its performance.

QMS enables businesses to minimise undesired impacts on the processes while maximising the effectiveness and efficiency of these processes that deliver products or service to end-users.

This Ph.D. research focuses on identifying the general state of the manufacturing sector within Kuwaiti Small, Medium, and Large Enterprises (KSMLEs) and analysis links, enablers and barriers related to the implementation of QMS by linking the possible effects of the culture.

The research was carried out using a case study as well as the mixed methods approach involving the use of both quantitive and qualitative research methods.

In the first instance, a single case study organisation involving a large-sized enterprise within the Kuwaiti manufacturing sector was researched into as a pilot study.

This helped in refining both the quantitive survey questionnaire and the qualitative interview questions.

Thereafter, for the quantitative, a total of 192 valid responses out of 308 received data sets involving KSMLEs that include three different levels of management (top, middle and shop floor) were generated using physical and online-surveys, the target participants being managers working in the industrial sector in Kuwait.

The qualitative research design twenty-five interviews involving twenty-five KSMLEs, also at different management levels (six top, six middle and thirteen shop floor managers) in the manufacturing sector in Kuwait.

Findings from this study confirmed that leaders and managers of the manufacturing sector in Kuwait are actively engaged with customers.

However, the lack the process of delegating tasks and empowering of people.

Findings further suggest that firms strategy must focus on appreciating cultural aspects such organizational culture, investing in employees, developing training programmes, and addressing community and social responsibility.

This study contributes to the of Knowledge on QMS and provides a viable framework (model) that was over time developed through an iterative series of revisions, literature review, a case study and expert views.

The new model designed and proposed in this thesis is called the Kuwaiti Quality Culture Model (KQCM).

This model portrays the importance of culture along with other factors in the initiation and the implementation of QMS, particularly in Arabic culture.

Overall findings confirm the researcher expectation that QMS performance (managing people, policy & strategy, partnerships & resources, and culture) is positively associated to commitment and leadership of the top management and those managers at different levels stress on the importance and necessity of internal communication channels.

Moreover, employees' empowerment and relevant processes (people, policy & strategy, partnership & resources, and culture) are crucial in implementing any quality practices.

Furthermore, culture found to be a vital factor as it plays an important role in the implementation of QMS in Kuwait.

Finally, when implemented, the study confirmed that KQCM results (people, customers, and society) would lead to better organisational performance.

?Keywords- Quality management system (QMS), Kuwait quality culture model, Kuwait small medium and Large enterprises, organisation culture, Kuwait manufacturing sector, GCC manufacturing culture, total quality management.

Chapter 1 Introduction

1.1 The Current Scenario

This thesis on the general state of the manufacturing sector within Kuwaiti SmallThe, Medium and Large Enterprises (KSMLEs).

The unifying purpose of this research is to identify the enablers and barriers affecting the implementation of quality management systems (QMS) within Kuwaiti industrial sector.

This chapter provides the general background and the necessity for the research. It identifies gaps in previous research, processes used, the aims and objectives of the research and outlines the chapters.

Kuwait is a small but wealthy oil-producing country located on the Arabian Gulf, a strategic location in the Middle East. Its major economic sectors are industries (50.6 %) and services (49.1 % ). Petroleum accounts for nearly half of GDP, 95% of export revenues, and 95% of government income (Kuwait Economy Profile 2014, 2015. Industries include oil, petrochemicals, cement, shipbuilding and repair, water desalination, food processing and construction materials.

The rapidly growing competitiveness in manufacturing industries globally, especially in Asia, has encouraged the government of the Arabian Peninsula Gulf Cooperative Council (GCC) countries not only to strive to continuously improve their productivity and income but also to maximise the quality of their products and services (Manasssah, 2014).

Academics and manufacturing practitioner have emphasised the importance of the manufacturing sector, especially in countries such as the GCC members, whose main source of income is oil (Al-Shammari, 2013).

This reliance on oil income has the potential to significantly endanger their economies; the need for diversification of income is inevitable.

The consequences have been evident recently due to the 2008 worldwide economic crisis that resulted in the price of oil plummeting, reaching its lowest level since 2005 (Mohammadi, 2014).

A quality management system (QMS), one of the quality improvement pillars, is defined as the organisation structure, responsibilities, procedures, processes and resources for implementing quality management (Psomas & Antony, 2015; Vujovic Krivokapic, & Jovanovic, 2010; Magutu, Mbeche, Nyaoga, Nyamwange, Onger, & Ombati, 2010; Bewoor & Pawar, 2010; Aggelogiannopoulos, Drosinos, & Athanasopoulos, 2007) and is an important factor in customer satisfaction and competitive success in today's global manufacturing landscape.

Thus the study aims to investigate the implementation of quality management systems and their effects on the Kuwaiti manufacturing sector.

It is undeniably true that Small, Medium and Large Enterprise (SMLE) manufacturing firms play a vital role in Kuwait's economy.

Some limited research studies carried out in this sector have suggested the positive impact of quality management tools such as tool quality management (TQM) and QMS.

It has also pointed out by many researchers that many SMLEs have been ineffective and struggling to survive.

This situation may have come about as of these SMLEs fail to compete and have no proper quality management systems in place.

In order to compete successfully in the market, many manufacturing organisation in recent years have found solutions to demand of higher efficiency by accepting change and adopting advanced management tools and techniques such as total quality management (TQM), application of lean principle, and activity-based costing to minimise waste and improve processes (Aoife et al., 2015).

Several report suggest a rise in the the number of manufacturing in the Gulf region (Al-Najjar & Jawad, 2011; Hvidt, 2911; Dawoud, 2012; Sturn et al., 2008; Abus & Gibson, 2013; Achoui, 2009; Al-Mubarak & Busher, 2014; Al-Alawi et al., 2007; Alhaqbani, 2013; El-Khasawneh, 2012; Islam &Khadem, 2013; Jaeger et al., 2013; Jarkas & Bitar, 2012; Ramadhan et al., 2013; Reiche, 2010; Talib et al., 2011). The last decade has witnessed a remarkable spread of quality management tools and techniques in the manufacturing and service industries worldwide.

In any business, including the manufacturing sector, the implementation of quality management systems (ISO 9000, QMS, TQM) has many advantages such as continuous improvement, customer satisfaction, reduction of waste and cost, increased financial performance and increasing employees' motivation.

Quality practitioners worldwide have identified the QMS in manufacturing firms and the importance of implementing its tools, techniques, and theories.

Studies have covered the USA (Zhou, 2012; Golicic & Medland, 2007; White et al., 1999), Canada (Stuart & Boyle, 2007), West Europe (Baksd et al., 2011; Bonavia & Marin, 2006; Achsnga et al., 2006; Johansen et al., 2004; Bhassin, 2012), Asia (Wickramasinghe & Wickramasinghe, 2012; Perea et al., 2010; Nordin et al., 2010; Wong et al., 2009; Rose et al., 2011; Ferdousi, 2009; Yang & Yu Yu, 2010; Rahman, 2010; Wong M., 2007; Antony, 2006; Dhandapan et al., 2004; Upadhye et al., 2010) and Australia (Sohal & Egglestone, 1994).

The six GCC countries are located on the Arabain Peninsula of West Asia Kuwait, Saudi Arabia, Bahrain, Qatar, Oman and United Arab Emirates (UAE), represent the largest Group economy in the Middle East (ME) region and collectively rank seventeenth in the world economy (Abu Hussin 2010).

According to the World Bank (World Bank Group, 2011), the gross national income (GNI) per capita ranking of GCC countries ranked as a mean of the total six countries, is 23rd in the world.

These figures reflect the importance of this region for developing countries in terms of wealth and impact on the global economy.

Yet, there are enormous incentives (reduced utility bills, industrial loans with minimal interests etc.), which should allow these countries to pull ahead of other ME (see chapter 2 for a full discussion).

With oil price instability, most of the oil-producing countries, such Kuwait, Saudi Arabia and the UAE, have chosen manufacturing of products and goods as a long-term choice to achieve diversification of income (Mady, 2009).

There is growing appreciation in the GCC countries that the manufacturing sector can also play an important role in the development process of the region's economies.

This is reflected in the increased number of manufacturing companies established in recent years, and organisations' willingness to implement some aspect of quality management systems with the aim of higher efficiency

If this trend continues, productivity and quality enhancement can be realised by accepting change and adopting advanced management tools and techniques such as quality management principles of the International Standards Organisation (ISO) 9000, total quality management (TQM), zero defect, six sigma, quality function deployment (QFD), lean principles and acceptance sampling, activity-based costing to genuinely eliminate waste, achieving customer satisfaction and improve processes (Kumar & Antony, 2008).

It is clear that the development and implementation of QMS plays a vital role in attracting business to the region and help them stay competitive in the market.Despite this, the quality management system is not well developed in the GCC region.

This thesis aims to investigate the implementation of quality management systems and their effects on the manufacturing sector of Kuwait.

1.2 Rationale for the current research study

Several works suggest that QMS is effective in the area of manufacturing (Zhang, 2005; Psomas & Atony, 2015; Ahuja, 2012; Garza-Reyes et al., 2011; Amba &Abulla, 2014).

However, most of the research has focused on reviewing the literature rather than contributing to the development of functional QMS as best practices.

According to Deming, product quality is the one aspect that keeps any company competitive in the market by increasing sales (Deming W., 2000). The number of companies' adopting QMS in Kuwait is particularly low.

As other Gulf states have invested heavily in non-oil infrastructure and launched a number of ventures to encourage private sector involvement, Kuwait's policies, according to a local newspaper (Orabi & Al-Shami 2013), seem more relaxed, stuck in a time warp even, focusing on a cradle-to-grave welfare system which favours less entrepreneurial spirit or initiative.

It is possible that Kuwait's strong financial position, primarily driven by its substantial oil income, is the cause of the slow growth in the non-oil sector.

From 2013 to the time of writing (2015), the manufacturing sector has grown by 28% (against a target of 100%) and the 'other service' sector rose 14%. Key sectors, such as transportation, construction, communication, and finance, which dominated by the private sector, collectively grew 6% last year (2014), compared to only 1% growth in 2011 and contraction in the years before according to the local newspaper (Orabi & Al-Shami, 2013).

Kuwaitis represent 73% of the public sector workforce, and changes are afoot to reduce the number of expatriates and replace them with 19,000 Kuwaiti nationals who are on the waiting list for employment at the Civil Service Commission even though early in 2014 a government official noted that the country's public sector employs three times more people than needed (Hussain, 2014).

The demands for a multiplicity of sources of income were discussed in the Kuwaiti parliament's first session of second meeting in February 2014.

Many members of parliament (MPs) expressed their resentment in the form of interrogations of the government's role in supporting and promoting manufacturing industries in Kuwait, as a result of the government's latest report concerning manufacturing in the country's central budget which in turn, will affect the next generation's financial reserves in the near future, and requested restructuring of the manufacturing sector (Abo Alraish, 2014).

Furthermore, reports supportinWuntry's funds, estimated at over 3 billion Kuwaiti dinars (equivalent to more than 6 billion pound sterling), abroad for investment, had offered more support to the sector.

The state Bureau Audit (an official government organisation that monitors performance as well as sector productivity) report for the financial year 2014 also suggests that the Public Authority of Industry (PAI) did not properly fulfill its remit which also contributed to the constraint of growth in the sector.

The Kuwait Public Authority for Industry (PAI), established in 1997 as part of the government's efforts to strive for diversification, is responsible for manufacturing activities in Kuwait and is linked with the Ministry of Commerce and Industry (MCI) whose minister is the chairman of the PAI board of directors.

Within PAI there are two main departments, quality assurance (QA) and the technical office.

The purpose of QA is to ensure manufacturing enterprises meet government standards in order to achieve the authority's unifying of developing the manufacturing sector in Kuwait.

However, it (PAI) was not achieving its objective as the aforementioned report reveal.

The Kuwaiti government is yet to establish a center for manufacturing quality, an idea suggested by many manufacturing practitioners in 2013 but so far thwarted by the seemingly endless bureaucracy involved (Orabi T., 2013).

ALmutairi (2014) report that only 6.5% of planned government works have been completed and many projects shelved, mainly because the extensive layers of government bureaucracy delayed funds being issued by the government.

Al-Ajmi (2015) writes that one of the issues was PAI's lack of vision as it had not planned for any new industries and service cities since the middle of 2006.

Specialists and practitioners have rubbed salt in the wound by accusing PAI of being the main reason investors and decision-makers chose not to invest in the manufacturing sector; API refute this, alleging that it is corruption by market leaders that has prevented new investor from starting their own manufacturing businesses.

The above statements clearly show the importance of and challenges facing the manufacturing sector in Kuwait.

Any effort to improve the existing framework by implementing QMS is implicitly justified.

It should also be noted that there are no pre-existing suitable models which could be used to address the current issues facing the Kuwaiti manufacturing sector.

The Kuwaiti manufacturing sector is going through a period of recession and instability exacerbated by the security unrest that has hit the region recently, despite the 28% growth. Manufacturing, as a tool of the government's vision in terms of diversification, has struggled to contribute significantly to the government's annual budget.

Many issues have been linked to this failure, one of which was the lack of resources and support provided by the government and of any tangible quality standards that could improve Kuwait's manufacturing sector such as plant allocation or government incentives (Al-Dasoqi, 2015).

The introduction of QMS, as a philosophy or system with the use of a conceptual model, will certainly serve the manufacturing industries in Kuwait.

This can be argued as there is no evidence of systems and/or models adopted by manufacturing enterprises which have proved successful other than in the petrochemical sector.

1.3 Research aims and objectives

The aims and objectives of this study are to examine the state of the manufacturing sector, and the links, obstacles, and enablers related to the implementation of quality management systems (QMS) in Kuwait.

The GCC region as a whole is experiencing rapid growth due to the effects of globalisation, in particular, manufacturing growth, and its countries are being forced to adapt to this changing competitive environment (Salaheldin, 2009a) in order to survive.

Currently, Kuwait is lagging behind Saudi Arabia, the UAE, Qatar, and Oman in adjusting to this; the power of oil production and reserves will not last forever and the need for diversification is imminent.

This could be achieved through reducing production costs and increasing output capacity while maintaining the quality of products and charging reasonable prices.

The economic vulnerabilities created by rapid globalisation necessitate the use of new techniques, tools, and philosophies that are already employed elsewhere in the world (Hokoma et al., 2010).

I also anticipate that the findings may be applicable to the other GCC countries which share both government and cultural traits.

1.3.1 Aims

This research aims to identify the general situation of the Kuwaiti manufacturing sector and identify and analyse links, enablers and barriers related to the implementation of quality management systems in the Kuwaiti Small Medium and Large Enterprise manufacturing sector as well as investigating the possible effects of culture.

1.3.2 Objectives

The main objectives include:

* Understanding quality management systems (QMS), their theory and philosophy through an in-depth review of relevant literature;

*Identification of the general state of the manufacturing sector (SMLEs) in Kuwait and use of the literature as the basis to develop a QMS implementation model more suited to the Middle East context, and especially to Kuwait;

* Understanding and analysis of different barriers and enablers to implementation of QMS in the manufacturing sector;

* Development of a QMS model suited to the manufacturing sector of Kuwait by exploring the possible effects of culture.

1.4 Research Questions

This study has research questions which were answered using a quantitative and qualitative mixed method approach.

From the above aims and overarching research questions arise:

1- Why is QMS implementation in the manufacturing sector (SMLEs) of Kuwait important?

2- Can the proposed model serve more effectively than the European Foundation Quality Model (EFQM) in implementing QMS in the Kuwaiti manufacturing sector?

3- Is the proposed QMS model suitable for use in the manufacturing sector?

1.5 Research Hypothesis

Unlike the research questions, research hypotheses are either accepted or rejected using only numerical examination (quantitative method approach).

Hypotheses are a necessary part of research; authors need hypotheses to compare with the data collected and establish whether their ideas are correct or not (Hilbon & Mangel, 1997). The following are the author's research hypotheses:

1- QMS performance is positively associated to commitment and leadership of top management.

2- Communication between top management and bottom management is important.

3- Employees' empowerment and relevant processes are crucial to successfully implementing any quality practices.

4- Culture plays an important role in the implementation of QMS in Kuwait.

5- The KQCM model will lead to greater organizational performance.

1.6 Research Methodology

Many researchers have emphasised the benefits of combining qualitative and quantitive approaches (Brewer & Hunter, 1989; Morse, 1991; Sandelowski, 1996; Tashskkor & Teddlie, 1998; Sandelwski, 2000; Adock & Collier, 2001; Erzberger & Kelle, 2003; Maxwell & Loomis 2003; Polit & Beck, 2004).

This research study utilises the mixed method approach outlined by Benz and Newman and further developed by Lund (Newman & Benz, 1998; Lund, 2012), which includes combining qualitative (case studies, semi-structured interviews, and observation) with quantitive (survey questionnaire) methods. This offers many benefits including:

1- [Greater ability] to answer certain complex research questions than qualitative or quantitative in isolation.

2- Qualitative and quantitative results may relate to different objects or phenomena but may be complementary to each other in mixed methods research.

3- Mixed methods research may provide more valid inferences. If the results from quite different strategies such as qualitative and quantitative once meet, the validity of the corresponding inferences and conclusions will increase more than with convergence within each strategy.

4- In mixed methods research, qualitative and quantitative results may be divergent or contradictory, which can lead to extra reflection, revised hypothesis, and further research. Therefore, provided the data are collected and analysed correctly, such divergence can generate new theoretical insights. (Lund, 2012,p 157)

Another benefit of this method is the increase in the credibility and validity of the research; by collecting data from multiple sources subsequent analyses are strengthened.

The following steps were followed by the researcher while carrying out the research:

1- The literature review was used to understand the theory, concept, and philosophy of QMS. The main aim of the literature review is to review the works that have been already conducted on QMS and identify the enablers of and barriers to, as well as critical success factors in implementing QMS.

2- Selection of research philosophy: there are tow philosophes used to conduct research which are fundamentally different and competing:

a- Logical positivism which uses quantitative and experimental methods;

b- Phenomenological scientific enquiry which uses qualitative and naturalistic approaches.

Based on the positive and negative of both approaches (discussed in chapter 4) the phenomenological approach is used in this research.

3- Selection of data collection methods: the following steps were used to collect data

* A confidential case study was conducted to implement the quantitative results and to support the pilot study, as well as helping to finalise the shape of the proposed model, KQCM;

* Semi-structured face-to-face interview as the main method; these included 25 interviews with managers from different levels within Kuwaiti Small, Medium and Large Manufacturing Enterprises (KSMLEs);

* Development of a (confidential) survey questionnaire which was sent to 308 KSMLEs: 192 responses were received, a response rate of 63%. The questionnaire was developed to answer the Research Questions (RQs) in order to collect precise and reliable data and avoid any biases that might incur;

* Analysis of data collected was done by using statistical software (SPSS) in order to ascertain the reliability and validity of the research instrument (the survey questionnaire).

This approach, the author believes, will ultimately increase the validity and impact of the research.

1.7 Expected contribution and originality

This research is expected to contribute significantly to the body of knowledge on QMS. The following point summarises the significance of this contribution:

* Most research studies have been conducted on organisations that have already implemented quality practices; therefore, finding barriers, enablers and critical success factors were recognised and analysed based on their existence within those organisations. However, this research will tackle the research gap by studying manufacturing firms in Kuwait who have not yet implemented quality practices and are their planning or wish to implement a quality management system;

* Earlier research has not covered QMS or QIs in Kuwait or the GCC region. The geographical area has been studied, but not in relation to QMS/QIs and QMS/QIs have been studied, but not in this area;

* There is no evidence of research studies in the Middle East, GCC or Kuwait which have considered the cultural dimension when implementing QMS. This research intends to propose a quality culture model which the author believes will best serve manufacturing enterprises Kuwait;

* The methodology of this research is unique with respect to other studies conducted in the same region, due to the fact that the researcher used a mixed methods approach (qualitative & quantitative), i.e. he started his research by testing the situation and identifying the population of his study, then conducting a case study to act as a pilot study. A survey questionnaire was then developed for three different levels of management (top, middle and shop floor) and interviews were conducted with manufacturing firms' representatives holding positions similar to the aforementioned managerial levels in order to compare the findings from the literature review with those from the case study, survey questionnaire and interviews. This allowed the author to revisit his questionnaire and identify any bias or weaknesses of his literature review and add/amend survey questions accordingly.

* SMEs have been investigated the most by other researchers; however, studies to date have been not included large enterprises which the author considers should be included as the geographical size of the study area is small. The study, therefore, includes all four manufacturing classifications namely, small Enterprises (SEs), Medium Enterprises (MEs), Small and Medium Enterprises (SMEs), and Small, Medium, and Large Enterprises (SMLEs);

* Last but not least, since Kuwait is an oil-dependent country, this study will contribute to the diversification plan created by the Kuwaiti government to increase sources of income. The author believes that helping manufacturing industries to successfully implement quality management systems, tools techniques, practices and models will increase their productivity, performance, and sales which, in turn, will benefit the economy of Kuwait and sustain prosperity.

1.8 Research implication

This study can offer a useful insight to KSMLEs who are intending to implement quality tools, techniques, and theories within their organisations as it outlines.

a) the enablers for implementing such quality system

b) the barriers that deter their implementation.

c) the critical success factors in terms of utilising them.

In addition, it can also be applied beyond the context of Kuwait, for example in other Gulf Cooperation Council (GCC) countries, since there are similarities between the six nations in terms of government structure and especially culture which is the researcher's fundamental subject in this study.

The Kuwait Quality Culture Model (KQCM) can be used a guideline for successfully implementing any quality model concerning KSMLES and can also be used by government officials to set standards based on academic, as well as prsctical, evidence.

1.9 Research limitations

Sources of information about QMS and its barriers and enablers in the region, especially Kuwait, are very limited.

Furthermore, many respondents and interviewees were reluctant to share information about their firms as most KSMLEs are family-owned and they were inherently wary of disclosing information that could be seen as useful to their competitors; the majority of them lacked the background to appreciate that this study could help them compete and prosper.

1.10 Thesis Outline

This thesis consists of 7 chapters. A brief overview of each follows:

Chapter 1 outlines the current scenario, the rationale for the research, and states the research aim and objective. The chapter presents the research questions and hypotheses, outlines the thesis and addresses the implications and limitations of the research.