Libyan enterprises, including the “Melllitah Oil and Gas,” operate under a common set of business rules that are supported by specific plans developed by organizational management. To implement the mentioned business principles successfully, companies resort to various Health, Safety, Environment, Quality, and Industrial Security Policies (HSEQS) to help them to build up a quality management system (“Mellitah Oil and Gas B.V.”). The given system covers a broad variety of processes that are primarily focused on fulfilling customers’ needs and enhancing the overall level of clients’ satisfaction. A notable fact about the QMS is that it is always aligned with a strategic business direction determined by ISO 9001 standards. Meeting the given standards arrives as a critical task to achieve for Libyan companies operating in the sector.
The Effect of Total Quality Management (TQM) on the Performance of Libyan Oil Companies
Total Quality Management is an essential constituent of the Libyan Oil and Gas Companies’ (LOGCs) operation. Whenever organizations face the necessity to retain competitiveness, it is crucial for them to study how TQM “implementation is related to strategic variables and can make a contribution to strategic process” (Gutierrez-Gutierrez et al. 43). It often occurs that companies located in developing economies need to switch from a bureaucratic form of management to a proactive, value-added, and more efficient business model. The advantage of effective quality strategies, in this case, is that they assist in making this transition less troublesome.
The findings made by Gutierrez-Gutierrez et al. indicate that addressing critical quality factors (CQFs) increases the opportunity for success in the Libyan oil and gas sector (52). 40 out of 42 surveyed companies consider such CQFs as process control and top management commitment to be the key reasons of their financial growth. The example of “Mellitah Oil and Gas” shows that the consideration of risks leads to more efficient health, safety, and environmental management, which results in reduced accidents and emission level (“Mellitah Oil and Gas B.V.”).
The Motives for Obtaining an ISO 9001 Certified Quality Management System
Companies that serve the Libyan market sector are highly interested in obtaining the given quality management system. As O’Donnell points out, “if implemented rigorously, ISO 9001 could deliver increased efficiency and improved business process” (1). For many organizations certification is a matter of principle, which could foster better trade relations with foreign countries. To enter the European market, a company based in Libya must first be added to the Approved Vendors List; only then it receives the right to export oil and gas. With regards to this fact, the vast majority of corporations consider marketing awards as a more significant type of motivation compared to temporal business benefits. In addition, certification might serve as a tool to improve the company’s performance through the reduction of wastes and control of production. In its turn, a higher quality of produce would allow manufacturers to benefit from increased demand on their products. Also, strict adherence to occupational health and safety standards would serve as an additional stimulus for employees to work with devotion and maximum quality input.
As referred to the market competitiveness of Libyan firms, ISO 9001 standards provide a support mechanism that enables continual improvement of companies’ performance. On the example of “Melllitah Oil and Gas,” one sees that the quality control department is highly “concerned with monitoring and advising on the performance of the quality management system” (“Mellitah Oil and Gas B.V.”). Therefore, the organization pays maximum attention to providing training and improving employees’ working skills on an ongoing basis. The company operation analysis is usually made on the basis of statistical reports and personal interviews.
ISO 45001 Standards for Health and Safety
This year, the International Organization for Standardization announced the publication of a new ISO 45001 occupational health and safety (OH&S) standard. For corporations serving the Libyan oil and gas market, this event is of paramount significance as it allows enterprises to strengthen their working assets and improve employer-employee relations. The standard specifies requirements for OH&S management with the key directive to prevent injuries and health conditions (Gutierrez-Gutierrez et al. 61). Concerning its implementation area, ISO 45001 was planned to be applicable to any company regardless of its size or a sphere it operates in. This model enables organizations to successfully integrate such an aspect of safety and health as workers’ wellbeing. The given purpose is mainly achieved through the use of innovative approaches to business management.
As to the innovations that the standard is praised for, ISO 45001 provides the improvement of an organization’s performance by establishing a systematic process, which considers possible risks and assists in finding the needed solutions. It also takes into account the risks associated with the activity of OH&S itself. By evaluating the effectiveness of a company’s operation, the model enables workers to participate in health and safety system implementation and take actions to raise the staff’s awareness of the issue (Gutierrez-Gutierrez et al. 62). When used together, these measures help managers to reduce the cost of incidents, the overall downtime, and the disruptive effect these incidents have. Also, the reduction of insurance cost leads companies to significant economy in extrabudgetary expenses.
Suggestions for Developing and Implementing Quality Management Systems in Libyan Oil and Gas Companies
For Libyan oil and gas corporations that wish to integrate the QMS into their infrastructure, it is critical to resort to ISO 9001 as an essential component of the proper exercise of a business strategy. With this model being applied management staff could easily monitor the process of production, detect discrepancies, and take response measures immediately. Moreover, the given regulations would strictly define occupational health, safety, and emission norms to match the international standards. However, prior to starting the model implementation, the four major aspects of business should be considered: leadership, employee relations, supplier and customer relations, and product and process management (Sawalim 93). As soon as this phase is completed, organizations need to start introducing training and ISO 9001 awareness programs to their employees. The next step would require preparing documentation and providing an internal quality audit. Finally, the last stage involves the implementation of a developed quality management system.
Conclusion
For Libyan oil and gas corporations to stay competitive on a global scale, a strict consideration of the ISO 9001 norms is required. These norms are supported by the recently introduced ISO 45001 standards. By following the occupational health and safety regulations, companies operating in the sector not only improve their supplier-customer relations but also expand business assets through entering the European market. As the example of “Melllitah Oil and Gas” shows, compliance with the given standards carries beneficial outcomes for companies’ operation.
Works Cited
“Mellitah Oil and Gas B.V.” Mellitah Oil and Gas, 2018. Web.
Gutierrez-Gutierrez, Leopoldo J., et al. “The Role of Human Resource-Related Quality Management Practices in New Product Development: A Dynamic Capability Perspective.” International Journal of Operations & Production Management, vol. 38, no. 1, 2018, pp. 43-66.
O’Donnell, Vincent. “Quality Management Systems That Serve the Subsea Oil & Gas Industries.” Open Science Journal, vol. 1, no. 3, 2016, pp. 1-22.
Sawalim, Khalil MH. Appraising Project Performance and Total Quality Management (TQM) Practices in the Libyan Oil and Gas Sector. Dissertation, Liverpool John Moores University, 2014.