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A QUANTITATIVE CASE STUDY
A QUANTITATIVE CASE STUDY
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A Quantitative Case Study
Introduction
Sustainability awareness and related issues are increasingly becoming the point of concern for organizational managers, mainly in the industrial sector. Increased governmental efforts for sustainability in terms of policies and regulations have forced many organizations to embrace sustainability in order to sustain their competitive advantage in the markets (Kannan et al. 2014, p.195). Currently, organizational managers have prioritized actions related to sustainability in almost every operational sector, and it is becoming part of the administrative objectives. The automobile industry is one of the industries that have embraced the idea of sustainability due to enormous pressure from environmental policies and standards (Kremer et al. 2016, p.2071). The need for sustainability in supplies has increased the level of competition and, consequently, the performance level of most business organizations. Thus, organizational managers should conduct sustainable supplier selection as an effective way of minimizing cost, improving the attention given to the workers, enhancing environmental protection measures, among others. Sustainable supplier selection allows the system of the company to control and develop permanent relationships with the suppliers.
Taking a case of automobile manufacturer “the Renault Group of Iran,” the company has a lot of hurdles in its attempt to comply with the regulations on achieving sustainability due to the dynamic nature of the rules within the last ten years. The conditions for sustainability as the role of human rights care and greening have been considerably tightened within the past decade hence affecting the strategic objectives of the company. It is also noted that sustainability matters have had significant challenges on the entire strategy of the company, competition tactics, and organizational performance. Renault Group has both local and international suppliers, but it has restricted criteria for selecting suppliers in terms of quality, cost, and architectural designs (Renault, 2016). The compare now faces a challenge in selecting sustainable supplier evaluation criteria and the best method of ranking the supplier. Therefore, the company needs to conduct the supplier sustainability evaluation criteria to develop a comprehensive and most suitable model that will help in combating sustainability issues facing the company. This paper seeks to develop a multi-criteria model that is considered most suitable for evaluating sustainable performance and ranking of the suppliers in the Renault Group Company.
Literature Review
Different research studies have been evaluated under different pressures and from a different point of view to achieve a more reliable model for decision-making. The multi-criteria decision-making models (MCDM) are utilized in decision making alongside conflicting, multiple, and criteria approach (Kumar 2017, p.598). It is considered that any car bought by the customer is qualified in terms of price, safety, size, comfort, and design, taking from a personal point of view. In a business organization, the problems associated with MCDM are complex and profound; for example, in continents like Europe, most organizations carry-out self-assessment using the criteria and sub-criteria approach in the European Foundation for Quality Management to establish quality supplier ranking and evaluation models. Most of the industrial organizations such as Renault Group procure departments so as to satisfy the requirements of suppliers (Govindan et al. 2013, p. 69). It is achieved using extensive criteria based on quality administration, financial stability, and after-sale revenues.
There exist several strategies and models that researchers have put forward to help in the ranking and evaluation of suppliers. A research conducted by Ho et al., (2010)indicates that most of the sustainability models applied by businesses generated through DEA, TOPSIS, ANP and other comprehensive models based on MCDM and AI models. Mohammed et al. (2018) and Aouadni, Rebai and Turskis (2017) developed a model based on the TOPSIS criteria to evaluate suppliers and selecting the best performing among them. The close association between cost, quality, and delivery were established as the best evaluation criteria for assessing the suppliers. The outcomes showed that fuzzy models are the most suitable approach to containing uncertainties.
In a quantitative study conducted by Rezaei et al., (2014) on AHP criteria for choosing the best performing supplier in the retail airline sector. The model generated was considered beneficial in two ways; first, it used as a conjunctive screening method and second in the selection of the best supplier. Govindian et al. (2013) postulated that a TOPSIS model applicable in a Fuzzy setting to help in the selection of sustainable suppliers. First, the model assessed the mechanisms and metrics associated with each sustainability attribute. Second, the ranking of the suppliers was made possible through the collection of a set of data. A research conducted by Büyüközkan et al. (2011) led to the proposition of a model to evaluate and rank the sustainability performance of the suppliers based on the ANP criteria in a fuzzy environment. The framework not only evaluates the performance of the suppliers but also sustains the degree of consistency in the assessment.
Sustainable supplier criteria model is a criterion that assists procurement managers to control and carry out payment of the supplied materials, acquire information on cash inflow and outflow. The evaluation criteria for supplier sustainability are the primary concern for companies like the Renault group that aspires change to green procurement management. SSCM is achieved through minimization and alleviation of the negative impacts that the procurement process has on the environment. It is also achieved through the organization’s sustainability and environmental performance, as indicated by the suppliers.
The research conducted by Govindan et al. (2013) through a survey on the literature review indicated that the environmental sustainability model is the most applied criterion to achieve green supply. Based on social sustainability, a range of criteria from different research findings were evaluated and summarized as long-working hours, human rights, discrimination, information disclosure, health and safety, employment practices and the rights of the company’s stakeholders (Ghadimi et al., 2014; Amindoust et al., 2012; Azadi et al., 2015).
Research by Vahdani et al. (2012) claims that ranking the suppliers is the practice of evaluating their performance using the best supplier evaluation criteria. The outcomes of this process is an independent and objective evaluation of the performance of the supplier and whether they satisfy the conditions of the company in acceptable ways. Additionally, Govindan et al. (2013) asserted that the ranking of the suppliers is based on the supplier evaluation model. Suppliers are ranked based on their satisfaction with the conditions required by the company, for example, in terms of cost, quality, delivery period, green production, and social privileges of the employees. The suppliers are usually ranked by their respective companies from the worst to the best according to the performance level required by the company. Reviewed literature shows that suppliers’ ranking could be realized in the form of rewards or some form of clearance of certification. Ranking of the suppliers is a crucial managerial process that is useful in decision making. Decision –making processes needs the application of different qualitative and quantitative analysis. However, the main aim of the process is to determine the best supplier that is able to fulfill the needs of the company based on the most appropriate criteria. The Decision-making problem is a critical issue for the procurement department, a type of MCDM issue which needs MCDM techniques to achieve an effective solution. The best solution to a decision-making issue is also considered to contribute positively to the performance of the entire supply chain of the company.
Research Methodology
A survey was carried out to assess the credibility and performance of supplier sustainability criteria and the sub-criteria proposed in various research findings. A formal questionnaire was created with the main aim of establishing the most suitable sustainability criteria and sub-criteria in supply chain management. The questionnaire used to entail some open as well as closed questions. The closed questions were aimed at giving the respondent a directive on how to answer specific questions. The open questions aimed to provide the respondent with a room for giving personal opinions about the subject. The questionnaire developed was made up of three major parts, namely: environmental, social, and economic criteria, including the sub-criteria of each category. The environmental category was made up of five main criteria and twenty sub-criteria. The social category was made up of four main criteria and thirteen sub-criteria. The economic category consisted of six main criteria and fifteen sub-criteria. The questionnaire required the interviewees to give a number to every sub-criterion highlighted to evaluate their significance and suitable SSCM. The significance level indicates the magnitude of the perceived significance given to a particular sub-criteria, whereas suitability indicates if the level of suitability in their application or performance. A Likert scale was created with numbers ranging between 1 and 5, with 5 representing the highest score and 1 is the lowest score.
In terms of ranking the suppliers, a qualitative research method was used to analyze the most suitable MCDM model. This method entails a secondary research method whereby information given by other authors, and research expert is applied in the review of the topic. To conduct this type of research, a qualitative method of analysis consisting of four procedures is adopted to make use of the literature review content that was accessed. The four procedures applied in the research methodology can be explained as follows:
Step 1: The extent of the review on this section is restricted to scholarly articles, peer-reviewed journals, educational websites, and other online published works. Academic articles with information on the MCDM model and its application were also utilized. The online search for contents related to the topic was searched using a keyword search strategy. Keywords such as MCDM methods, SSCM methods, supply chain sustainability, and supplier evaluation criteria were used. The application of official databases such as EBSCO, ProQuest allowed for easy access to the required content. The application of method-specific and non-specific terms like MCDM and SCM was also given due consideration.
Step 2: The choice of the articles and information to be applied in the study should range within the required time-frame. In this study, the articles and online materials used were produced within the last ten years. The consideration of the content’s year of production helps in ensuring the credibility and relevance of the information provided.
Step 3: Not all online materials accessed by the search engines are relevant to the objectives of the study. Therefore, it is good to select only those that match the objectives of the study. In this study, however, only those that deal with supplier sustainability evaluation on SSCM and MCDM models are considered relevant.
Step 4: This final stage comprises of the review of the ideas and contents provided by research and online articles. Paying attention to every detail provided by the material is essential to ensure the quality, credibility, and suitability of the information reviewed.
The case study of this quantitative research is the Renault Group Company. It is a vehicle automobile manufacturing company based in Iran, although the mother company was located in France. The company’s procurement department was chosen as the sample population for this research study. The reason for choosing this company is; first, because of the accessibility of information concerning the company’s supply chain. Second is because the procurement department conducts all the sourcing operations of the company.
Case study Findings and Analysis
The Renault Group (company) is a France based manufacturer of automobile which was founded by Louis Renault, Fernand Renault, and Marcel Renault in 1899. The company is involved in the manufacture of several types of vehicles ranging from motor cars to trucks and electric rail cars (Renault 2016). Renault formed an alliance in 1999 with Nissan Motor Company, and Renault took over 54% of Nissan’s stock, which is now rated as the fourth largest automobile company. Renault has also formed alliances with many other companies from across the world. Renault’s operations in Iran began more than four decades ago after the production of the first model in 1976. After that, Renault experienced numerous challenges in local production and ultimately stopping its operations until 1990, when a regional manufacturer began manufacturing Renault 5 and Renault 21(Renault 2016). Since Iran’s vehicle industry is an upcoming market, Renault took the step of forming more strong alliances with Iranian electric car makers to take advantage of this market opening and also to transfer modern technology to Iran.
The survey conducted in the form of a questionnaire was directed towards interviewing three top managers of the Renault Group Company. The managers interviewed through this questionnaire include the general manager, corporate managing director, and the procurement manager. The main aim of interviewing the top management is to acquire their views about the relative significance of a particular criterion and the performance of the suppliers with regard to every criterion being tested. After conducting the questionnaire to determine the best supplier sustainability criteria, four managers from the Renault Group in Iran were used as the respondents for evaluating the criteria. Additionally, a weighted mean value was applied for every criterion to help indicate their level of significance and applicability.
Figure 1: Important Sustainable supplier Evaluation Criteria
The results from the data obtained through the questionnaires suggest that organizational managers placed more significance on the economic factors in carrying out suppler evaluation instead of social and environmental factors. It is evident from the results collected that the aspect of economic costs is given the highest score, unlike the green product, which had the lowest score. Under the social factors, workers’ rights were granted the highest score meaning that it possesses a high level of significance among managers. Factors concerned with environmental management had more significance in the list of environmental aspects. Green technology and Eco design were given approximately the same level of significance.
In the analysis of the findings collected for the most suitable sustainable supplier evaluation criteria, it is evident that cost is the most applicable. It was followed by quality, service, delivery, and lastly, the flexibility of the supply chain. Therefore, the best SSCM criteria for the Renault Group in Iran are cost and factors related to social and environmental sustainability are less applicable. However, for Renault Group to focus on Mann-Whitney U-test Criteria to achieve a comprehensive model of evaluating supplier sustainability.
Mann-Whitney U-test
Table 1: The results of the Mann-Whitney U-test for Importance and applicability
Mann-Whitney U-test was utilized to determine if the mean scores of two types of data, that is, significance and applicability, vary. SPSS software was used to carry out this non-parametric test. Because the Mann-Whitney U-test is applied on ranked scores, it is not necessary to two types of data are typically distributed (Olugu et al. 2011, p.570). All the main criteria of the factors (economic, social, and environmental) were evaluated using this test, and the p-value for all the factors was more than 0.05. The outcomes indicate no substantial difference between the mean values of the two types of data.
In an attempt to find out the most appropriate MCDM technique for performance evaluation, the first step taken was analyzing the experience of others by studying the existing literature. In essence, literature findings show that mathematical models such as DEA, AHP, and others are only applicable to solving problems with specific sets of data (Vahdani et al. 2012 p. 1417). It implies that they cannot be used in handling qualitative information. AI-generated models which are computer-supported, require in-depth knowledge to operate and resolve the problems. Through the research, it can be noted that MCDM models are not complex in terms of understanding and implementation. The existing on decision-making shows that TOPSIS is one of the best models as an optional choice among other MCDM strategies (Govindane et al. 2013, p.71).
When compared with other MCDM techniques like AHP, DEMATEL, SAW, and ANP, TOPSIS is the easiest and less time-consuming. However, other techniques such as ANP and AHP require extra pairwise correlation matrixes for an optional choice. Because of this limitation, ANP and AHP techniques are less applicable in comparison to TOPSIS as a solution for MCDM problems (Kumar 2017, p.598). Additionally, ELECTRE is perceived as a sophisticated technique when compared to TOPSIS. The application process and results of the ELECTRE technique can be hard to describe in simple terms. Multi-Attribute Utility Theory (MAUT), TOPIS, and Case-Based Reasoning (CBR) have challenges with weighting the data. Even though the TOPSIS method has the limitation of weighting data, the process is not complicated, which easy to apply and program, unlike Case-Based Reasoning (CBR) and Multi-Attribute Utility Theory (MAUT). Generally, the cited literature shows that TOPSIS is the most suitable MCDM method in ranking the suppliers in comparison to other MCDM methods.
Conclusion
A comprehensive study of the SSCM and its sub-criteria for conducting supplier’s performance evaluation was established based on literature. Similarly, the significance and applicability of the criteria used were assessed with regard to the information collected from the managers of the Renault Group of Iran. A set of 15 main criteria and 48 sub-criteria were evaluated alongside their significance and applicability that was assessed by the use of questionnaire-based research. The outcomes of this analysis indicate that the economic criteria are the most suitable criteria for determining the sustainability performance in procurement, followed by environmental and, finally, the social criteria.
The Mann-Whitney U-test is employed by the study to illustrate whether the mean values of the two sets of data, that is, significance and applicability, are related to each other based on the manager’s perception about the company. The findings indicate no substantial variation between the mean values of the two sets of data. Thus, the designed list of SSCM and their respective sub-criteria can be utilized by the Renault Group Company for testing suppliers’ sustainability now and in the future. The Multi-criteria decision-making model (MCDM) is regarded as the most appropriate method for solving complex issues such as the ranking of the suppliers in terms of performance. There are several types of multi-criteria decision-making methods, which include MUIT, Case-based reasoning, ANP, AHP, among others. However, TOPSIS is regarded as the most suitable technique for ranking suppliers. However, more research needs to be conducted to obtain a more comprehensive and yet easy model for evaluating the performance and ranking of the suppliers. The model should be able to incorporate all aspects related to sustainability in the easiest way possible.
References
Amindoust, A., Ahmed, S., Saghafinia, A., & Bahreininejad, A., 2012, Sustainable supplier selection: A ranking model based on fuzzy inference system, Applied Soft Computing, 12(6), 1668-1677.
Aouadni, S., Rebai, A. and Turskis, Z., 2017, The meaningful mixed data TOPSIS (TOPSIS-MMD) method and its application in supplier selection. Studies in Informatics and Control, 26(3), pp.353-363.
Azadi, M., Jafarian, M., Saen, R. F., & Mirhedayatian, S. M.,2015, A new fuzzy DEA model for evaluation of efficiency and effectiveness of suppliers in sustainable supply chain management context, Computers& Operations Research, 54, 274-285
Ghadimi, P., & Heavey, C., 2014, Sustainable supplier selection in medical device industry: Toward sustainable manufacturing, Procedia CIRP, 15, 165-170
Govindan, K., Rajendran, S., Sarkis, J., & Murugesan, P., 2015, Multi criteria decision making approaches for green supplier evaluation and selection: a literature review. Journal of Cleaner Production, 98, 66-83.
Govindan, K., Rajendran, S., Sarkis, J., &Murugesan, P., 2013, Multi criteria decision making approaches for green supplier evaluation and selection: a literature review, Journal of Cleaner Production.
Ho, W., Xu, X., & Dey, P. K., 2010, Multi-criteria decision-making approaches for supplier evaluation and selection: A literature review, European Journal of Operational Research, 202(1), 16-24.
Kannan, D., Govindan, K., &Rajendran, S., 2015, Fuzzy Axiomatic Design approach based green supplier selection: a case study from Singapore, Journal of Cleaner Production, 96, 194-208.
Kremer, G.E., Haapala, K., Murat, A., Chinnam, R.B., Kim, K.Y., Monplaisir, L. and Lei, T., 2016, Directions for instilling economic and environmental sustainability across product supply chains, Journal of Cleaner Production, 112, pp.2066-2078.
Kumar, A., Sah, B., Singh, A.R., Deng, Y., He, X., Kumar, P. and Bansal, R.C., 2017, A review of multi criteria decision making (MCDM) towards sustainable renewable energy development, Renewable and Sustainable Energy Reviews, 69, pp.596-609.
Mohammed, A., Harris, I., Soroka, A., Naim, M.M. and Ramjaun, T., 2018, January, Evaluating green and resilient supplier performance: AHP-fuzzy Topsis decision-making approach. In ICORES (pp. 209-216).
Olugu, E. U., Wong, K. Y., &Shaharoun, A. M., 2011, Development of key performance measures for the automobile green supply chain, resources, conservation and recycling, 55(6), 567-579
Renault group in Iran web, 2016, WWW.Renault.co.ir.
Rezaei, J., Fahim, P. B., & Tavasszy, L., 2014, Supplier selection in the airline retail industry using a funnel methodology: conjunctive screening method and fuzzy AHP, Expert Systems with Applications, 41(18), 8165-8179.
Vahdani, B., Iranmanesh, S., Mousavi, S. M., & Abdollah zade, M., 2012, A locally linear neuro-fuzzy model for supplier selection in cosmetics industry, Applied mathematical modelling, 36(10), 4714-4727
Big-Auto-Drive
Big Auto DriveECON/GM 561University of PhoenixBig Auto DriveAbstract
The automotive industry is a major force in the global market; it produces more than 60 million cars every year (Industry Week Magazine). Doe to the present financial crisis, the automotive industry sees their sales growth have reduced drastically over the years. Two major contributing factors are new entry into the market and high unemployment rates in countries such as Canada. With the never-ending global economic crisis, emphasis has been laid for stronger economic policies to improve standards of living from the slowdown in productivity growth. Predicting economic futures accurately is essential to ensure that individual organizations choose the best business alternatives.
Introduction
Big Drive Auto is a dealership company in Canada; they sell various cars and trucks from different manufacturers around the world. The company also provides a full maintenance services, sells parts for repairs and does a significant business in motor oil, coolant, and replacement tires. Management of Big Drive Auto is also scanning the macroeconomic environment for signals that will help it better plan its business (UOPM, 2012). The objective of this paper is to evaluate macroeconomic measures of Canada against which Big Drive must use to compare its own sales and price data. The paper will also evaluate any relationship between the two, and graphs will be used to explain the existing relationships. Suggestions will be made about how Big Drive Auto could use these relationships to better plan its operations (UOPM, 2012).
Evaluating Market Size of Canada
The Automotive Industry in Canada is a major contributor of the country’s manufacturing GDP (12%) and mark up of 24 % of manufacturing trade (Canada’s Automotive Industry, 2007). As the third major exporter of automotive products in the world, the country produces both light and heavy duty vehicles and also manufactures wide varieties of automotive parts and systems. The industry can also boast of an advance vehicle network system capable of supplying replacement parts and accessories and a top of the class distribution system (Canada’s Automotive Industry, 2003). The industry is also integrated into NAFTA, giving it free trade among the other two members the United States and Mexico. Canada is globally competitive with positive trade balance, the automobile industry is a major contributor to the Canadian economy, employing over half a million people (Canada’s Automotive Industry, 2003). This makes Canada a lucrative market for Big Auto Drive to conduct it business operations. The table below show the number of cars produces in Canada in 2011.
Production by source Total number of Automobile produced
Car 801,039
Light truck 445,868
Medium/Heavy Load truck 63,811
Total 1,301,718
Source: Ward’s AutoInfoBank Economic Trends
Economic growth can be measured as (a) an increase in real GDP over time or (b) an increase in real GDP per capita over time (McConnell & Brue, 2004). The Global meltdown has influenced the Automotive Industry in Canada in the last couple of years. The sales of new automobiles dropped significantly over the years creating loss in total revenues for manufacturers and dealers as well. Economic growth in Canada has been restrained by large drops in auto assemblies. The recent volatility of auto production in Canada is in marked contrast with the United States. Auto output in Canada tumbled 23% in December, about two-thirds due to customers changing car models and one-third to weaker sales in the United States (Statistics Canada, 2010).
Competitive Market
Foreign competition held down wages and price hikes in the automobiles industries, because it falls under oligopoly market structure, anti-competitive cooperation may exist is this market. Developing a strong advertising campaign is an important part of the competition and will give Big Auto Drive a competitive edge over its competitors.
Macroeconomic Measures of Canada GDP against Big Drive Auto
Coordination of macroeconomic policies is a frequent issue for the leading industrial economies. This is vital, because even when country like Canada has experienced remarkable economic growth over time, high unemployment or inflation has sometimes been a problem. The primary measure of the economy’s performance is its annual total output of goods and services or, as it is called, its aggregate output also known as GDP (McConnell & Brue, 2004).
The GDP of Canada and Big Drive Auto business activities have a correlation. The Canadian GDP has a steady growth from 1998 to 2007; the graph bellowing will illustrate this information.
When comparing Big Auto Drive sales of vehicle during the same period to Canadian GDP, there is an increase in the number of automobile sold during the same time period. The graph below illustrates the sales of vehicle for the company.
Sales increase from 139 units sold in 1998 to 163 in 2007 correlates to the Canadian GDP during the same 10 year period. Although there has been a total increase during this period, there was a decline in units sold from 1999 to 2001 and a very small yearly decrease from 2003 to 2006. Big Drive Auto should price the products based on the current average prices of competing products.
Whilst Canada experienced GDP growth from 1998 to 2007, the country experienced a change in annual GDP during the period from 1998 to 2007, which correlates closely with the BDA vehicle price index. As a result of the fluctuation in vehicle price index and the annual GDP change, it can be assumed that this is the reason for the BDA decline in vehicle sales during the two periods between 1998 and 2007. The graph below explains:
Economists believe that the immediate causes of cyclical changes in the level of real output is the changes in the level of total spending (McConnell and Brue, 2004). If the country’s GDP decreases, it causes the unemployment rate to increase. From the GDP based on purchasing-power-parity (PPP), there is slight rise and fall, which is contrary to the Canadian GDP that is steadily rising from 1998 to 2007. To measure economic growth in Canada, an increase in real GDP and the real GDP per capital must occur over some time period (McConnell & Brue, 2004). Growth in the auto industry would therefore result in an increase in the real GDP over time. Consumers in Canada will purchase less with the increase in incomes coming from the increasing in GDP. With an effective market strategy, the company was able to sell more automobiles to its customers from 1998 and 2007.
Inflation
The current state of the Canadian economy requires businesses to do extensive research before setting prices for their products. When evaluating the macroeconomic measures of Canada and the company’s outputs and prices, the following factors must be considered: the Consumer Price Index can be used to measure the company’s prices as compare to Canada, so that the company can sell its products at that level where it will generate economic profits.
Since 2000, Canada CPI was stable; it was after the start of the economic crisis in 2007, that the index starts to fluctuate. In correlation with the core consumer price index, the vehicle price index is another source that will provide adequate information on pricing for the sale of the various automobile the company has in stock. Comparable to the core consumer price index, automobile prices were stable over the past decade. Decreases between 2000, and 2003, were followed by very mild increases.
The graph below depicts the core consumer price index for 2000 to 2010.
The rate of inflation, interest rates, and unemployment rates are determinants of the economic climate in Canada and play a role in pricing of consumer products. Keeping up with economic indicators will be influential in planning for the company’s success in the long run.
Conclusion
As the global economy toys with a double recession, austerity measures bites hard, the impact is on the consumer, managing business operation through this financial meltdown will help the company meet its goals. Demand for car and trucks have a tendency to to be interest rate sensitive, making the automobile industry one of the leading indicators of business cycles (www.forex-brokerage-firms.com).To earned economic profits and have a competitive edge in the industry, the company must develop a strategic plan that will make the company stand out and position itself for any of the possible economic business cycles. Big Auto Drive must implement a strategic control plan that will help track their strategies as it is being implemented, this will help the company detect various problems or changes in its underlying premises, and make necessary adjustments (Pearce and Robinson, 2011).
References:
Gerber, J. (2008). International Economics (4th ed.). Boston: Pearson.
McConnell, C. R. & Brue, S. L. (2005). Economics: Principles, problems, and policies. New York: McGraw Hill/Irwin
University of Phoenix material Big Auto Drive (2012)
http://www.ic.gc.ca/eic/site/auto-auto.nsf/eng/am02360.html
http://www.academon.com/Essay-Competition-in-the-Automobile-Industry/27288
https://www.bea.gov/scb/account_articles/international/1097srv/maintext.htm
http://www.statcan.gc.ca/daily-quotidien/080522/dq080522c-eng.htm
A Quality Healthcare Organization
A Quality Healthcare Organization
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A Quality Healthcare Organization
A healthcare organization exists as a center that offers health services, for instance, surgical operations, diseases diagnosis as well as treatment plus patients’ recovery. Also, research, training and teaching assignments are some of the other services that can be performed. A good healthcare organization is, therefore, the one that upholds and maintains that these services are of high quality. Quality has developed to be a progressively major part of individuals’ lives as they are always searching for quality products and services. Therefore, this increased need for quality has led to some organizations and firms in the world to regard quality as an indispensable element of any provision besides the production process. Quality in an organization exists as a strategic differentiator implement aimed at sustaining competitive benefit (Gilligan & Lowe, 2018). The method of cultivating quality by improving the structures and processes typically results to waste reduction, rework plus delays, advanced market share, lower costs and a good image of the organization. Also, there is a production level and profit improvement. Thus, it very imperative to outline, measure and also progress the quality of the healthcare services.
Quality in healthcare develops as a result of excellent cooperation amongst the patient together with the healthcare workers in a conducive and supportive environment. There are some factors which usually tends to affect the quality of the healthcare service. They include personal factors between the healthcare service providers, for example, a professional doctor or a nurse and the patient. However, there exist several ways by which the healthcare quality can be improved. Some of these ways include; having a visionary and effective leadership starting from top administration going downwards, appropriate planning, obtainability of resources and operative controlling of the available resources (Perera & Peiró 2012, p.752). Moreover, there are employees and the processes and lastly cooperation and collaboration among the healthcare service providers.
However, the quality of healthcare service tends to be somehow challenging to define and measure compared to some other sector. Distinctive healthcare industry features, for instance, intangibility, and simultaneity and also heterogeneity makes it problematic to identify and measure quality. This is because the healthcare service exists as an intangible product and thus it cannot be physically viewed, touched, measured or even felt like the manufactured goods. The quality of healthcare service typically depends on the service process as well as client and service provider interactions. There are also some quality healthcare aspects like consistency, accuracy, and timeliness that are tough to measure beyond an appropriate valuation especially by the customer. Subsequently, it is habitually difficult to reproduce consistent healthcare services. The reason is that these services can differ between the customers, producers, places and the activities taking place in the healthcare setting. This heterogeneity happens typically due to the different professionals, for example, the nurses and physicians delivering the amenities to the patients with diverse variable need (Nelson & Staggers, 2016). For an effective healthcare organization, the required attributes can be grouped into five distinct categories: competence, empathy, environment, efficacy, and effectiveness.
Quality healthcare comprises characteristics like accessibility, availability, acceptability competency, reliability, equity comprehensiveness among others. When there exists any effort to define, measure and also to improve healthcare quality, the different healthcare stakeholders’ perceptions, priorities, and desires have to be considered. Therefore, this depicts that quality matters a lot in the healthcare organization.
The healthcare organization must make some continual adjustments towards maintaining optimum functionality. Thus to define the areas in which these adjustments are required, some methods can be applied. One effective way that has portrayed to be effective in the healthcare setting is SWOT analysis. The technique is also applicable in other organizations. SWOT analysis consents the assessment of the healthcare organization from an unbiased perspective through a detailed discussion of the healthcare organization’s strength’s, flaws, threats and also the opportunities. SWOT analysis involves many steps, especially in the healthcare setting. The first step encompasses the compilation and valuation of crucial data, and this might include the society’s health status, the current state of medical technology or the healthcare sources funding. After composing and analyzing the suitable data, the competences of the organization are assessed.
The second step involves organizing the collected data into some four categories; strengths, weaknesses, threats and also opportunities. The internal factors of the healthcare organization are strengths and weaknesses while the threats and the opportunities are typically regarded as the external factors. The SWOT analysis third step in the healthcare organization entails creating a SWOT matrix for each business preference that is put under consideration. The fourth and the last step comprises of incorporating the derived analysis into the policymaking process. This is quite significant as it controls which preference will best suit the complete strategic blueprint of the healthcare organization. The factors that have contributed towards an exceptional healthcare performance are the strengths (Gretzky, 2010). These factors include well-trained medical personnel, state-of-the-art equipment, healthcare informatics investments, and high medical services. The factors that typically affect the healthcare quality or tend to increase the healthcare costs are termed as weaknesses. Examples of the weaknesses include outdated healthcare amenities, poor management and training, inadequate financial resources and inappropriate use of the healthcare informatics.
In the healthcare organizations, the obtainable new business initiatives are regarded as opportunities. Some of these opportunities include increased funding for better healthcare services provision, establishments of new healthcare programs and partnerships with diverse healthcare organizations. The threats are observed as the factors could affect negatively, the running of the healthcare organization. Some of the threats examples include political and economic insecurity and amplified demand for costly medical technology. Therefore while conducting a healthcare SWOT analysis, it is always noble to be realistic, avoid complexity, analyze the plans rationally and attain change.
Most of the data collected in the healthcare organization are in the raw format, and thus there is a great need for the data to be summarized, structured, and it also needs to be analyzed to develop some information from them conveniently. Also, each data set requires to be presented in a certain way depending on what way it will be used (Ginter et al., 2018). There are numerous ways in which this data can be presented for example as text, graphical form and in tabular form. It is essential always to plan the way in which to present the data before processing it.
When planning a healthcare project, it is vital to always start on the right foot as it can lead to tangible impact going down the line. The healthcare organization leaders, for example, the CEO ought to begin by recognizing well the sectors that the project might affect and thus guarantee that those sections are well and equally represented amongst the crucial stakeholders. Therefore, the organizations must certify that the project team possesses the accurate resources to act as a liaison amid the project team associates, the stakeholders, and the end users. Also, proper training of the workforce in the organization which is among the strategies of improving quality is encouraged. The following are the groups to consider when identifying stakeholders for effective running of the organization’s project; financial stakeholders, medical leaders, the end users (clinicians), the patients, vendors an also the billing plus audit functions (Gilligan & Lowe, 2018). Therefore as a leader, to ensure that there are smoothing and effective running in the healthcare organization the project team must refer, involve and partner with these groups. This is significant as it will help to solve the challenges that might arise in the organization. Also, it will assist in avoiding workflow disruptions and the budgetary concerns in the healthcare organization will be addressed.
References
Gilligan, C., & Lowe, R. (2018). Marketing and Healthcare Organizations. CRC Press.
Ginter, P. M., Duncan, W. J., & Swayne, L. E. (2018). The strategic management of health care organizations. John Wiley & Sons.
Gretzky, W. (2010). Strategic planning and SWOT analysis. JP Harrison, Essentials of Strategic Planning in Health Care, 97.
Nelson, R., & Staggers, N. (2016). Health Informatics-E-Book: An Interprofessional Approach. Elsevier Health Sciences.
Perera, F. D. P. R., & Peiró, M. (2012). Strategic planning in healthcare organizations. Revista Española de Cardiología (English Edition), 65(8), 749-754.