Sustainable development and process management in the perspective of quality Report

            In this chapter there will be discussion regarding the area of the research, it includes the description of the research background and also the problem area that is why current research is being conducted. Moreover, the main themes that will be discussed in this research are the main themes and the research questions. There will be also focused on the scope of the study, overall structure as well as the summary of the current paper.

        The research will focus on the performance of the small and medium-sized enterprises (SME’s) in Pakistan that they are striving in the market to bring quality through sustainable development and process management. However, modern customers have various options to buy the products in the market, therefore, they focus or desire to get the best at the lower cost. However, the SME’s are considering the quality management techniques in order to sustain a competitive advantage in the market. Companies are using techniques like total quality management (TQM) and obtaining the standards such as ISO 9000 so that there could be a success in the market. There are various strategies that companies are concerned about example, implementation of Six Sigma or other statistical techniques are being used to gain excellence.

Background of the Study of Sustainable development and process management in the perspective of quality

        As the basis of description for the evolution of quality management, four stages are taken into consideration i.e. inspection, control of quality, assurance of quality and management of the quality in an efficient way. The same is suggested by (Dale, 1995). The inspection and control of quality deal with examining the product based on its features. Also, an analysis of the requirements is a part of it. In case the organization tends to assure the quality, it basically makes the strategic plans that help the company to avoid possible troubles. While managing and assuring the quality of a product or a service, the organization takes good care to possibly apply all the principles that can better be used for managing the quality of the product or the service.

        For the management of the quality, process management is considered as an integral part. All the organizations try their best to manage their processes somehow. The organization that adopts some innovative ways for managing its processes becomes the market leader. It makes the organization get a competitive advantage and become the market leader.

        As per the discussion of (Lind, 2001), there is a huge difference between process views i.e. transformation and communicated oriented views for the processes. I talk about the transformational view, then it deals with the outcomes that are produced in the perspective of the customers. Communication oriented view for the process deals with the contractual basis i.e. to establish and fulfill a specified contract between the customer/ supplier and the organization.

        Sustainable development is the one that boosts up the economy without any harm to natural resources. The concept of sustainable development was emerged out in 1987. It was basically evolved to get rid of the outcomes of industrialization as well as the uncontrolled growth of the population. For a development to be called sustainable there is a requirement for the fulfillment of the current generation’s requirements without any harm for future generations’ competence. Also, it is to take care of the environmental factors, social care as well as an effective and positive add on to the economy.

 Problem Statement of Sustainable development and process management in the perspective of quality

The organizations with an employee count ranging between 10 and 199 employees are small and medium enterprises. This is all about an organizational structure which is changed based on various factors that are organizational size, organizational culture and rate of growth that pertains in the industry. Most of the existing organizational strategies are developed with a view to fit too large scale companies. It is not enough to only develop a product and deliver it to the customer. Assurance of its quality is mandatory. It can help to avoid customer complaints. The main motive behind conducting this study is to establish a link of quality of SMEs with the process management and sustainable development.

 Research Questions of the Study of Sustainable development and process management in the perspective of quality

The answers to the following research questions are provided by this research work:

RQ1:

Does sustainable development relate to the quality of SMEs?

RQ2:

Does process management relate to the quality of SMEs?

RQ3:

Do sustainable development and process management relate to the quality of SMEs?

 Objectives of the Study

Following are the main research objectives of the study:

To investigate the association of sustainable development on the quality of SMEs.

To investigate the association of process management on the quality of SMEs.

 Hypotheses of the Study of Sustainable development and process management in the perspective of quality

Following hypotheses are developed for the purpose of conducting this research work.

H1:

There exists a positive relationship between sustainable development and the quality of SMEs.

H2:

There exists a positive relationship between process management and the quality of SMEs.

 Significance of the Study of Sustainable development and process management in the perspective of quality

The theoretical significance of this study implies that this research work significantly contributes to the literature. Also, this research work is supported by varying research theories. If we talk about the practical significance of this study, in the context of Pakistan, then this study can better be used by any organization to formulate the strategies that can better ensure the quality of SMEs by taking into consideration the study variables i.e. sustainable development and process management.

Limitations of the Study of Sustainable development and process management in the perspective of quality

Due to the exploratory nature, the study is considered to have some limitations. As the study is carried out for a sample size of 150 members (high authority officials form SMEs), so the results and findings of this research work can only be generalized on a small-scale. Instead of using the current sample size, the problem of results’ generalization can better be tackled. For the primary data collection, it is purely based on the responses of the respondents. It is possible, that the respondents might not have provided the accurate responses which might have affected the reliability of the data. Also, a human being’s perceptions can change over time which highly affects his mood. The other limitations may include wrong data analysis and the interpretation of the outcomes. There is a possibility to use some other variables rather than current study variables i.e. sustainable development and process management.

 Definitions of the Terms   of Sustainable development and process management in the perspective of quality

The dependent variable of the current research is the Quality of SMEs. The independent variables of the current research are sustainable development and process management. Some important definitions of the study variables are given below:

Sustainable development and process management in the perspective of quality

The concept of sustainable development is given by (Hediger, 1999) as “the requirement for such an integrated approach that is away from economic development-related traditional debates as well as discussion related to environmental issues”.

 Process Management in the perspective of quality

The concept of process management is defined by (Zairi, 1997) as “a structured approach for analyzing and continually improving basic organizational activities which include major parts of organizational operations such as manufacturing, marketing, communications, and other major elements”.

 Quality of SMEs of Sustainable development and process management in the perspective of quality

(Hellsten, 2000) & (Klefsjö, 2000) narrated quality management as” a management tool that evolves on a continual basis and contains values as well as techniques”.

Brief introduction of the study topic is given in the current chapter. Also, the statement of the problem, research questions, objectives of the research, study’ hypotheses, study’ significance, study’ limitations, conceptual definitions for the study variables and theoretical framework of the current study are given in the current chapter.

Summary of Sustainable development and process management in the perspective of quality

 CHAPTER: 2

Literature Review of Sustainable development and process management in the perspective of quality

 Introduction of chapter of Sustainable development and process management in the perspective of quality

The variables that are under consideration for this research work are discussed in the current chapter. The data that is about variable’s definitions, the background of the study’ variables for the idea behind all of the study’ variables along with the significance of each variable is given in the current chapter. The association of study variables (either dependent or independent) is also discussed in this chapter. It helped to maintain that what type of relationship is identified by previous research work. Based on these findings, an estimation can be made that what type of association exists between current study’ variables.

 Variables of the study of Sustainable development and process management in the perspective of quality

There are three variables that are under consideration for the current study. The variables include sustainable development and process management as independent variables and quality of SMEs as the dependent variable.

 Sustainable development of Sustainable development and process management in the perspective of quality

The concept of sustainable development which was first evolved in 1987 narrates the sustainable development as a practice for economic growth and development by satisfying the current needs and requirements. It also ensures that the capacities of future generations are not affected. Also, it provides a guarantee for economic growth, positive environmental effects, and social care.

In order to address the main issues (hunger, shelter, and sanitation problems), that are faced by human beings on an extensive level; they are required to be solved on a global level. There is a requirement that it should not harm natural resources. For this purpose, the 2030 agenda is being approved by the United Nations. This agenda basically defines and ensures the goals and objectives of sustainable development. The significant goals of sustainable development include addressing humanity problems with the consideration that all human beings are provided with equal chances to live their lives in a better way.

There are actually 17 inter-linked objectives which include as follows:

Eradication of hunger and poverty.

Provision of access to basic needs i.e. water and food etc.

For sustainable growth, adopting innovation as a practice.

Elimination of inequality from the world.

Taking into consideration the climate changes that heavily affect the environment.

Providing social benefits to create a sustainable environment.

As per (Hediger, 1999),  the criteria for sustainable development from generation to generation should not decrease. It should at least meet a similar level. In this way, it can better help in environmental growth and development. The “best model” that addresses both business excellence, as well as sustainable development, was given by (Edgeman, 2000). The main areas that are discussed in this model include varying considerations that belong to the environment, society, economy, and technology.

Process Mangement in the perspective of quality

In the recent era, the concept of process management has gained equal importance when it comes for discussion of quality assurance. According to (Davenport, 1993) and (Harrington, 1991), the process is initiated by an input. The outcomes of the process are defined as the output. If we just talk about the process then it’s a sequence of steps that are undertaken in order to achieve an already defined objective and set goal. Process management is about the stream line of the organizational processes with the organizational goals and objectives. If we discuss business process management then it specifically relates to the automation tools and usage of ERP systems to achieve the company’s objectives in such a manner that it increases the customer count for the company for long terms. Also, it makes the company earn profits and goodwill for the firm. For SMEs, it is a big challenge because they have fewer resources and finances than large scale companies. Based on these limitations, they have to focus more on the issues being faced during the management of their processes by using their limited number of employees that ranges from 10 to 199 employees.

Some of the key features of the business process management are given below:

Flexible processes can be designed.

Repetitive steps can be removed easily.

The organizations work more efficiently by using management processes for their businesses.

Quick implementation of laws and regulations.

Increased employees’ productivity makes them more satisfied and happy with their job.

Better use of technology and customizations increase the customer count.

The unhandled exceptional situations can be tackled more easily through this business process management.

Continuous improvement in the business processes.

Quick and efficient management of the people and the processes.

The gap between technology and business processes is covered.

(Armistead, 1999) discussed that, in order to implement the concept of business process management, the main parameters are responsiveness improvement, intimidation from the competitors along with the desire for improving the quality. The common characteristics of these business management processes include:

Performing an investigation to enquire about the external market.

To get know-how about organizational processes, a process framework is designed.

Considering the involvement of process owners.

Defining the criteria, that will measure the efficiency and the effectiveness.

Taking into consideration the planning as well as training about the business processes.

Make desired changes to the organizational infrastructure as well as the processes.

Quality of SMEs of Sustainable development and process management in the perspective of quality

Most of the times the concept of quality is linked with having some specific and desired features. The term quality is a versatile body. It can better be described in a number of ways. As per (Garvin, 1988) there exist eight parameters for quality identification. These are as follows:

Performance

Stability

Consistency

Aesthetics

Serviceability

Characteristics

Apparent quality

conformance to standards

As far as quality assurance is concerned, it narrates that in order to meet the customers’ expectations several processes are used. These processes tend to check for and ensure the quality of the production. To get and deliver the product while having the desired features and quality, a number of processes are used and arranged in an efficient manner. In the market, this strategy is defined as “ zero defect strategy”. Some of the important features of quality assurance include the following:

Possible reduction to the costs

The amount of re-work is almost eliminated

The employees feel them more determined and motivated

‘Us & them’ hurdles are broken down between the higher and the lower level management

The organization better becomes able to achieve a competitive advantage in the market by ensuring the quality of its products.

Some of the practices to ensure the quality may also include that the employees consider themselves that they are the customers and then the products they develop meets the requirements of the quality assurance. Also, by benchmarking an industry trend, an organization better becomes able to provide quality products in the market. Internal benchmarking can also be used as a tool to meet quality requirements. In this type of benchmarking, a department takes another department and its trends as standards. Quality consideration serves as a parameter that ensures to increase the number of customers, a company's profitability as well as goodwill in the market. Not only the customers but also the employees become satisfied when their organization follows some quality standards by streamlining its processes.

For SMEs (small and medium enterprises) a definition is provided by (Bolton, 1971). According to him, an SME contains the following:

Employees’ count is less than 200 employees

The market share is less as compared to large scale companies

The owners of SMEs tend to manage their company by themselves, it makes them formulate the organizational strategies by themselves.

As the SMEs are not part of any large scale company, so they are free in taking the organizational decisions.

The process of decision making is not formal and structured.

The number of competitors that are faced by SMEs is a large sum.

SMEs possess a limited number of resources to compete in the market and get a competitive advantage through cost reduction as well a quality control.

The decision-makers are actually the stakeholders of SMEs. They do possess a lot of self-interest.

As compared to large companies, employees’ turnover is also a determinant for SMEs.

Summary of Sustainable development and process management in the perspective of quality

In the current chapter, the study variables (sustainable development, process management and quality of SMEs) is discussed in detail. It is tried to establish a link between these variables.  Chapter 3 of the current study include a discussion on the research methodology, research approach, research design, population of the study, sample size, data reliability and consistency, data collection method and data analysis tool.

 CHAPTER: 3

Research Methodology on Sustainable development and process management in the perspective of quality

 Introduction of Sustainable development and process management in the perspective of quality

This chapter provides the proposed methodology that will be used in the research design of this paper. However, in this chapter, there will be a discussion on the population and sample, instrument and tools for data analysis, the data collection procedures. The proposed study will focus to use the primary and secondary data so that better analysis and results can be interpreted (Goodwin, 2012). Consequently, both the secondary and primary data are used so that the best approach can be considered. For secondary research, there will be a collection of primary research. There will be the analysis or interpretation of the primary data, as it is the information gathered prior. Moreover, for the primary data of this study, there will be involved in gathering the fresh data from the five SMEs in Pakistan, research will involve the 150 respondents for a better analysis of companies.

 Description of Research Design Sustainable development and process management in the perspective of quality

 Population of the Study of Sustainable development and process management in the perspective of quality

The population of the current study will involve the five SMEs from Pakistan, which include Ginning Technology Up-Gradation, Computer-Aided Design Centre, Fruit Processing Facility, Apple Treatment Plant in Balochistan, Fish Processing Facility in Gwadar.

 Sample of the Study of Sustainable development and process management in the perspective of quality

The sample of the current study will focus on the financial data or analysis of the SMEs which include Ginning Technology Up-Gradation, Computer-Aided Design Centre, Fruit Processing Facility, Apple Treatment Plant in Balochistan, and Fish Processing Facility in Gwadar. These SMEs are registered.

However, for the primary analysis of the research, questionnaires will be filled by the management of the company, so that there could be better analysis that how much company is gaining through considering the aspects related to sustainable development and process management in order to bring the quality.

 Data Collection Sustainable development and process management in the perspective of quality

As discussed earlier, for the data collection procedure there will be the use of the primary and secondary data techniques; in case of the secondary data collection, annual reports and balance sheet analysis will be concerned. For the primary data collection, the questionnaires will be filled by the 150 members (from the management) of the company that how the implementation of the sustainable development and process management in the perspective of bringing quality is concerned with these SMEs.

 SPSS Models of Sustainable development and process management in the perspective of quality

Reliability or internal consistency

Bernbach alpha test

Regression test

Co-relation test

 Data Analysis of Sustainable development and process management in the perspective of quality

Statistical analysis will be performed by SPSS software. In order to check the reliability or internal consistency of the variables; the Bernbach alpha test will be used. Moreover, to check the positive and negative relationship between the variables regression test will also be performed. Other than regression and Bernbach alpha test; co-relation test will be applied in order to check the strength of the relationship among the proposed variables (Verma, 2012).

References of Sustainable development and process management in the perspective of quality

Armistead, C. J.-P. (1999). Strategic business process management for organizational effectiveness. Long Range Planning, 32 (1), 96-106.

Bolton, J. (1971). Small Firms - Report of the Committee of Inquiry on Small Firms. Her Majesty's Stationery Office, London.

Dale, B. &. (1995). Quality Costing. Chapman & Hall, London.

Davenport, T. (1993). Process Innovation. Boston, MA.

Edgeman, R. (2000). BEST Business Excellence: An Expanded View. Measuring Business Excellence. 4 (4), 15-17.

Garvin, D. (1988). Managing Quality. The Free Press, New York.

Goodwin, J. (2012). SAGE Secondary Data Analysis. SAGE.

Harrington, H. (1991). Business Process Improvement - The Breakthrough Strategy for Total Quality, Productivity, and Competitiveness.

Hediger, W. (1999). Reconciling "weak" and "strong" sustainability. International Journal of Social Economics, 26, 1120-1143.

Hellsten, U. &. (2000). TQM as a management system consisting of values, techniques, and tools. The TQM Magazine, 12 (4), 238-244.

Klefsjö, B. (2000). TQM as a management system consisting of values, techniques, and tools. The TQM Magazine, 12 (4), 238-244.

Lind, E. (2001). Fairness Heuristic Theory: Justice Judgments as Pivotal Cognitions in Organizational Relations. 56-88.

Verma, J. (2012). Data Analysis in Management with SPSS Software. Springer Science & Business Media.

Zairi, M. (1997). Business process management: a boundaryless approach to modern competitiveness. Business Process Management Journal , 3 (1), 64-80.