Implementing QMSImplementing QMS In In LebanonLebanon

Rima Charbaji Rima Charbaji Finance CoordinatorFinance Coordinator

Chelder S.A.L OffShoreChelder S.A.L OffShore

Beirut LebanonBeirut Lebanon

r.charbaji@chelder.comr.charbaji@chelder.com

This study investigates Quality This study investigates Quality Management SystemManagement System

implementation implementation in different organizations in different organizations

in Lebanon in Lebanon

ISO 9000ISO 9000 that was originally put in 1987 that was originally put in 1987 set up set up QMS QMS requirements. requirements.Since it was originated in 1987 Since it was originated in 1987

Having ISO 9000 helped organizations to expand Having ISO 9000 helped organizations to expand locally and internationally locally and internationally

and to demonstrate toand to demonstrate tocustomers that the firm is customers that the firm is

committed to qualitycommitted to quality

Reformation of ISO 9000Reformation of ISO 9000 into other structuresinto other structures

was intended to makewas intended to make the documents easier to usethe documents easier to use

The last version Includes these The last version Includes these sections:sections:

1.Quality Management System 1.Quality Management System

2. Management Responsibility 2. Management Responsibility 3.Resource Management3.Resource Management

4.Product Realization 4.Product Realization 5.Measurement Analysis and 5.Measurement Analysis and ImprovementImprovement

QMSQMSIs the company’s wide effort (Culture) Is the company’s wide effort (Culture)

which involves everyone in the which involves everyone in the organization in order to improveorganization in order to improve

performance performance

The task and duty of QMS lies The task and duty of QMS lies with senior managers who with senior managers who have to be involved from the have to be involved from the beginning of the processbeginning of the process

Since there are a broad variety of quality publications and software tools designed

to help firms understand, implement and become registered to a quality

management system, then it is imperative for a firm to choose  a 3rd party as the accredited registrar

who comes and assesses and issue a certificate if the firm meets the requirements of the

standard. 

Now what about the suitability of these standards

To different countries?

Suitability of ISO to Suitability of ISO to Developing EconomiesDeveloping Economies

Newly Industrialized NationsNewly Industrialized Nations

Developing Countries & Developing Countries & SMESME in Lebanon in Lebanon

Lebanese firms had many Lebanese firms had many questionsquestions than than answeranswer about Quality about QualityThree Three Types of Lebanese Firms: Types of Lebanese Firms: 1. Adopted QMS & Trained Staff 1. Adopted QMS & Trained Staff 2. Didn’t Adopt because they2. Didn’t Adopt because they are not sure if they benefitare not sure if they benefit 3. found themselves having the3. found themselves having the certificate without being preparedcertificate without being prepared

What motivate organizationsWhat motivate organizations

to register for ISO to register for ISO

and seek official documents?and seek official documents?

1. 1. IntrinsicIntrinsic Motives Motives

2. 2. ExtrensicExtrensic Motives Motives

Djebarni and Eltigani Djebarni and Eltigani concluded that implementing concluded that implementing

QM led to better productivity (1996). QM led to better productivity (1996).

Sterman et al.Sterman et al. Believe that Believe that TQM TQM in the long run can increase in the long run can increase

productivity and lower costsproductivity and lower costs ( (1997)1997)

Ahire and Rana believe that TQM Ahire and Rana believe that TQM requires some years before requires some years before

achieving the desired results (1995) achieving the desired results (1995)

&&

Burati et al. believe Burati et al. believe that companies which that companies which

have been implementing have been implementing TQM for more than five TQM for more than five

years made a lot of saving (1991). years made a lot of saving (1991).

Tang and Kam (1999)Tang and Kam (1999)

MotivesMotives for Seeking for Seeking

ISO 9001ISO 9001

1. To improve the firm's quality image1. To improve the firm's quality image

2. To improve the firm's efficiency and 2. To improve the firm's efficiency and managementmanagement

3. To improve the firm's internal and external 3. To improve the firm's internal and external

communicationcommunication

4. To reduce insurance risk4. To reduce insurance risk

5. To resolve the quality problem 5. To resolve the quality problem

6. To meet the internal policy 6. To meet the internal policy

requirement from the parent companyrequirement from the parent company

7. It is mandate from government7. It is mandate from government

8. ISO 9001 is a start for 8. ISO 9001 is a start for

total quality management (TQM)total quality management (TQM)

Tang and Kam (1999)Tang and Kam (1999) motives (Continued) motives (Continued)

The Malcom Bridge National AwardThe Malcom Bridge National Award

In September 1996In September 1996 ISO published the first ISO published the first

of of ISO 14001ISO 14001 That specify the That specify the requirements for requirements for

Environmentally Management Systems Environmentally Management Systems

EMSEMS

Motives for implementing Motives for implementing ISO 14000ISO 14000

1. Place product under “green consumer markets” 1. Place product under “green consumer markets”

2. Enhance 2. Enhance relationship with environmentally relationship with environmentally conscious investors and consumersconscious investors and consumers

3. 3. Because of possible trade restrictionsBecause of possible trade restrictions

Need for the StudyNeed for the Study

Despite the growing interestDespite the growing interest in quality-management system in quality-management system

(QMS),(QMS), little if non empirical little if non empirical

investigations investigations exist on the experience of the exist on the experience of the

Lebanese firmsLebanese firms

Purpose of the studyPurpose of the study

The purpose of this studyThe purpose of this study is to determine is to determine

what are the factors that what are the factors that will be affected by the implementation will be affected by the implementation

of a quality system in the company. of a quality system in the company.

Statement of Research Problem

What is the effect of the duration of QMS implementation in organizations on:

1.Organizational objectives2.Internal and external communication3.Authority4.Error identification 5.Customer perception and corporate image6.Quality7.ROI.

Research HypothesesThis research will help in testing the following research hypotheses:a)The longer the organization has

implemented QMS, the more aware are employees towards organizational goals

b) The longer the organization has implemented QMS, the better the internal communication within the company

c) The longer the organization has implemented QMS, the better the external communication with suppliers

Research Hypotheses (Continued)

d) The longer the organization has d) The longer the organization has implemented QMS, the clearer are each implemented QMS, the clearer are each individual‘s responsibilitiesindividual‘s responsibilitiese) The longer the organization has e) The longer the organization has implemented QMS, the easier it is for implemented QMS, the easier it is for company to identify errors at early stagescompany to identify errors at early stagesf) The longer the organization has f) The longer the organization has implemented QMS, the more positive is implemented QMS, the more positive is the customer’s perception towards the customer’s perception towards company’s imagecompany’s image

Research Hypotheses (Continued

g) The longer the organization has g) The longer the organization has implemented QMS, the more standardized is implemented QMS, the more standardized is the quality of its products &/or servicesthe quality of its products &/or services

h) The longer the organization has h) The longer the organization has implemented QMS, the easier it is for it to implemented QMS, the easier it is for it to measure performancemeasure performance

i) The longer the organization has i) The longer the organization has implemented QMS, the higher are its profitsimplemented QMS, the higher are its profits

j) The longer the organization has j) The longer the organization has implemented QMS, the higher the implemented QMS, the higher the organization’s satisfaction.organization’s satisfaction.

Population of the StudyPopulation of the Study

The target population consistsThe target population consistsof the companies implementingof the companies implementing

QMS in Lebanon.QMS in Lebanon.A list of these companiesA list of these companies

can be found on the internetcan be found on the internetatat www.QMI.comwww.QMI.com

Sample SelectionSample Selection

The sample selected The sample selected is is not representativenot representative of the of the

population.population. It is comprised of It is comprised of 45 45

companiescompanies that the researcher was able to that the researcher was able to

contact contact and get valid responseand get valid response

Sample size is less than 50 companies due to the following limitations:

1. Limited number of companies implementing QMS in Lebanon.

2. Few companies in Lebanon have quality departments with proper records about QMS history.

VariablesThe following variables are believed

to be affected by the number of years QMS had been implemented:

1.“Awareness” refers to employees’ conscience of organizational objectives.

2. “Internal communication” refers to correspondence between individuals within / inside the organization.

3. “External communication” refers to correspondence between the organization and its suppliers.

Variables (Continued)

4. “Authority” refers to individual responsibilities5. “Error identification” refers to mistakes and problems being recognized

6“ .Customer’s perception” is the way customers view the company (

7. “Standardized quality” means that the output is always the same8. “Constant Indicators” are

quantitative figures to measure performance 9. “ROI” refers to the company’s profits

Instrumentation (Questionnaire)Instrumentation (Questionnaire)

A questionnaire was designed for A questionnaire was designed for the purpose of data collection.the purpose of data collection. the questionnaire consisted the questionnaire consisted

of ten questionsof ten questions related to the company and the QMS related to the company and the QMS

implementationimplementation

DATADATA

Descriptive ANALYSISDescriptive ANALYSIS

Major CharacteristicsMajor Characteristics

of the Selected Sample of the Selected Sample

Almost one fourth of firms provide service such as hospitals, one third Almost one fourth of firms provide service such as hospitals, one third provides products such as machinery and the rest provide both such as provides products such as machinery and the rest provide both such as banksbanks..

TABLE.1 1:Type of the Company

TypeTypeFrequencyFrequencyPercentagePercentage

ProductProduct161635.635.6

ServiceService121226.726.7

BothBoth171737.837.8

TotalTotal4545100.0100.0

Type of company

Product

Service

Both

Finance Coordinator -r.charbaji@chelder.com

Prepared by: Rima Charbaji

the Type of Lebanese Firm

A Graphical Representation of

TABLE.2Years of Establishment

Number of YearsNumber of YearsFrequencyFrequencyPercentagePercentage

55 years or lessyears or less6613.313.3

66 – – 1010 yearsyears121226.726.7

1111 – – 1515 yearsyears7715.615.6

1616 years or moreyears or more202044.444.4

TotalTotal4545100.0100.0

2020 Out of 45 firms (44.4 %) had been in the market for more than Out of 45 firms (44.4 %) had been in the market for more than 16 years. Most of them 86.7% had been in the market for more 16 years. Most of them 86.7% had been in the market for more

than 5 yearsthan 5 years..

1940.00 1960.00 1980.00 2000.00

Year of establishment

0

5

10

15

20

Fre

qu

ency

13

1

7

11

18

4Mean = 1985.4222Std. Dev. = 14.79018N = 45

Finance Coordinator- r.charbaji@chelder.com

Prepared by: Rima Charbaji- 15th Dec 2004

Year of Establishment

A Graphical Representation of

Firms in Lebanon as a developing country are small and Firms in Lebanon as a developing country are small and Medium enterprises. Almost half of the firms have less Medium enterprises. Almost half of the firms have less

than 100 employeesthan 100 employees

TABLE. 3Number of Employees

Number of EmployeesNumber of EmployeesFrequencyFrequencyPercentagePercentage

00 – – 2020112.22.2

2121 – – 5050336.76.7

5151 – – 75758817.817.8

7676 – – 1001009920.020.0

101101 or moreor more242453.353.3

TotalTotal4545100.0100.0

Nb of employees

53.3%20.0%

17.8%

6.7%

2.2%

101 - and above76 - under 100

51 - under 75

21 - under 50

0 - under 20

Most of the firms (two thirds) have been implementing Most of the firms (two thirds) have been implementing QMS for 4 years or lessQMS for 4 years or less

TABLE .4Number of years in implementing QMS

Number of YearsNumber of YearsFrequencyFrequencyPercentagePercentage

22 or lessor less111124.424.4

33 – – 44191942.242.2

55 or moreor more151533.333.3

TotalTotal4545100.0100.0

Number of QMS years of Implementation

33.3%

42.2%

24.4%3.00

2.00

1.00

Two thirds of the firms agree and strongly agree that Two thirds of the firms agree and strongly agree that Implementing Implementing

QMS raised employees’ awareness towards QMS raised employees’ awareness towards

organizational objectivesorganizational objectives

TABLE.5

Employees' awareness

3 6.7 6.7 6.7

11 24.4 24.4 31.1

14 31.1 31.1 62.2

14 31.1 31.1 93.3

3 6.7 6.7 100.0

45 100.0 100.0

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

More than 90 percent of the firms agree and strongly agree that More than 90 percent of the firms agree and strongly agree that

Implementing Implementing QMS QMS Improved communication between different Improved communication between different

departments and functionsdepartments and functions TABLE.6

Communication between departments

4 8.9 8.9 8.9

17 37.8 37.8 46.7

15 33.3 33.3 80.0

9 20.0 20.0 100.0

45 100.0 100.0

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Almost half of the firms agree and strongly agree that Almost half of the firms agree and strongly agree that Implementing Implementing

QMS QMS Enhanced relationships between the organization and its Enhanced relationships between the organization and its

supplierssuppliers TABLE.7

Relationship with suppliers

1 2.2 2.2 2.2

1 2.2 2.2 4.4

5 11.1 11.1 15.6

16 35.6 35.6 51.1

15 33.3 33.3 84.4

7 15.6 15.6 100.0

45 100.0 100.0

Strongly Disagree

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Almost 87% of the firms agree and strongly agree that Almost 87% of the firms agree and strongly agree that

Implementing Implementing QMS QMS Clearly defined each member’s Clearly defined each member’s

responsibilities within the organizational structureresponsibilities within the organizational structure TABLE.8

Members' tasks

6 13.3 13.3 13.3

12 26.7 26.7 40.0

17 37.8 37.8 77.8

10 22.2 22.2 100.0

45 100.0 100.0

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Again, almost 80% of the firms agree and strongly agree that Again, almost 80% of the firms agree and strongly agree that

Implementing Implementing QMS QMS Helped identify errors at their earliest stageHelped identify errors at their earliest stage TABLE.9

Errors

2 4.4 4.4 4.4

6 13.3 13.3 17.8

10 22.2 22.2 40.0

19 42.2 42.2 82.2

8 17.8 17.8 100.0

45 100.0 100.0

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

More than 90% of the firms agree and strongly agree More than 90% of the firms agree and strongly agree

that that Implementing Implementing QMS had aQMS had a major impact on major impact on

customers’ perception towards the company’s imagecustomers’ perception towards the company’s image TABLE.10

Customer perception

1 2.2 2.2 2.2

2 4.4 4.4 6.7

13 28.9 28.9 35.6

16 35.6 35.6 71.1

13 28.9 28.9 100.0

45 100.0 100.0

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

More than 90% of the firms agree and strongly agree that More than 90% of the firms agree and strongly agree that

Implementing Implementing QMS QMS Standardized the quality of our products Standardized the quality of our products

&/or services&/or services TABLE.11

Standardized quality

4 8.9 8.9 8.9

10 22.2 22.2 31.1

15 33.3 33.3 64.4

16 35.6 35.6 100.0

45 100.0 100.0

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Two thirds (66.7 %) of the firms agree and strongly agree that Two thirds (66.7 %) of the firms agree and strongly agree that

Implementing Implementing QMS QMS Set indicators to measure performanceSet indicators to measure performance TABLE.12

Indicators to measure performance

3 6.7 6.7 6.7

12 26.7 26.7 33.3

14 31.1 31.1 64.4

9 20.0 20.0 84.4

7 15.6 15.6 100.0

45 100.0 100.0

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Two thirds (64.4 %) of the firms agree and strongly agree that Two thirds (64.4 %) of the firms agree and strongly agree that

Implementing Implementing QMS QMS Substantially increased the Substantially increased the

organization’s profitsorganization’s profits TABLE.13

Organization's profits

2 4.4 4.4 4.4

3 6.7 6.7 11.1

11 24.4 24.4 35.6

15 33.3 33.3 68.9

14 31.1 31.1 100.0

45 100.0 100.0

Highly Disagree

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

75.6 percent of the firms agree and strongly agree that they are 75.6 percent of the firms agree and strongly agree that they are

satisfied with satisfied with Implementing Implementing QMS QMS and would advise other and would advise other

companies to implement QMScompanies to implement QMS TABLE.14

Organization's satisfaction

1 2.2 2.2 2.2

3 6.7 6.7 8.9

7 15.6 15.6 24.4

11 24.4 24.4 48.9

18 40.0 40.0 88.9

5 11.1 11.1 100.0

45 100.0 100.0

Highly Disagree

Mildly Disagree

Neutral

Mildly Agree

Highly Agree

Strongly agree

Total

ValidFrequency Percent Valid Percent

CumulativePercent

Testing Research Hypotheses

Chi Square test shows that: The longer the organization has

implemented QMS, the better the external communication with

suppliers

Chi Square test shows that:The longer the organization has

implemented QMS ,the clearer are each individual‘s

responsibilities

Chi Square test shows that:The longer the organization has implemented QMS ,

the easier it is for it to set indicators to measure performance

Chi Square test shows that:The longer the organization has

implemented QMS, the higher the organization’s satisfaction.

ConclusionConclusionThis research tried to fulfill an This research tried to fulfill an

identified information need and identified information need and to offer practical help to to offer practical help to

companies starting out the companies starting out the implementation of TQM and ISO in implementation of TQM and ISO in

LebanonLebanon

It became evident in this research that It became evident in this research that implementing QMS will help implementing QMS will help organizations to make individual’s organizations to make individual’s responsibility clearer and it had a major responsibility clearer and it had a major positive impact on the company's positive impact on the company's satisfaction in addition to its external satisfaction in addition to its external communication with suppliers and the communication with suppliers and the ability to set indicators to measure ability to set indicators to measure performanceperformance

Thank youThank you

ISO is superior to TQMISO is superior to TQM

Deming’s 14 pointDeming’s 14 point

Greatest CompanyGreatest Company

Definition of QMSDefinition of QMS

Getting RegisteredGetting Registered