EXPLORING THE APPLICATION OF TOTAL QUALITY MANAGEMENT IN THE LIBYAN OIL AND GAS COMPANIES: POTENTIAL, OBSTACLES AND SOLUTIONS

Abstract

Abstract:
Currently, there is worldwide interest in and focus on the implementation and effectiveness of quality management initiatives in industrial organisations with the objective of enhancing effectiveness and efficiency. Total Quality Management (TQM) is a quality management model, which, as the literature over the years has shown, can have a transforming impact on an industry that is in a state of substantial structural change and facing increased competition by raising performance. Therefore, there is no doubt that TQM has received a great deal of attention from practitioners, academics and researchers over the last two decades across the world especially in developing countries, including Libya.
The petro-chemical companies constitute the main industrial structure in Libya as oil and gas is the main source of income in the country. However, they are facing a number of challenges including increasing competition and quality level. In order to remain competitive, Libyan petro-chemical companies need to successfully and effectively employ quality management initiatives such as TQM, which can enable and empower the entire workforce, improve competitive position and raise performance.
This study, hence, aims to explore and analyse the implementation level of TQM within Libyan oil and gas organisations by exploring the causes of failure in the effective implementation of TQM in order to identify the barriers that exist and act to hinder the effective adoption and implementation of TQM. In addition, this study aims to highlight factors that will assist the Libyan petro-chemical organisations to continue to effectively implement TQM successfully and to explain the proper method of TQM application.
To achieve these aims, quantitative and qualitative methods in triangulation form were adopted: an extensive questionnaire was utilized to elicit the opinions, attitudes and perceptions of 120 participants (managerial categories) from fully-owned Libyan petroleum companies regarding TQM-related issues. In addition, 20 one-to-one semi-structured interviews within the participating Libyan petroleum organisations were used to identify top managers’ opinions and perceptions concerning the issues related to quality initiatives with particular attention being paid to TQM.
The findings of this study suggest that the actual implementation levels of TQM practices were found to be in the early stages in the Libyan petro-chemical organisations. In addition, the analysis identified 15 pertinent factors, which act as barriers that are most frequently faced by the surveyed companies including Arabian Gulf Oil Company (AGOCO), Ras Lanuf Oil and Gas Processing Company (RASCO) and Sirte Oil Company (SOC). These identified obstacles through empirical analysis of the primary data are: ‘lack of awareness and understanding of TQM’, ‘lack of information and communication’, ‘the problem of employee resistance to change’, ‘insufficient management style’, ‘the absence of real teamwork’, ‘lack of internal and external customer satisfaction, unsatisfactory measurement and evaluation’, ‘insufficient organisational culture’, ‘the absence of continuous improvement and innovation culture’, ‘lack of resources and requirements of TQM’, ‘inadequacy of top management and leadership commitment’, ‘insufficient employee training, development and education’, ‘the absence of quality strategic planning, lack of employee involvement and empowerment, and lastly lack of government support.
As the findings indicate, this study concludes that the implementation of TQM is still an underdeveloped area in Libya