Globalization of the industries is now having its own definition for today’s business environment. Various noteworthy strategies shifts are changing the playing areas of the businesses. Due to globalization and modernization of technology, it is now easy to gain knowledge about the competition technology and products. It is due to high speed of communications and product differentiation as it is no longer a key competitive advantage of most industries. This assignment will provide a discussion about the quality programs adopted and associated by a middle-east organization, namely Saudi Aramco.
Overview of Saudi Aramco
Saudi Aramco was founded more than 8 periods ago and the corporation has been on the precedence list of all ambitious specialists who want to have a name of them. Saudi Aramco is a foremost business in the oil and natural gas production and is conducting numerous quality databases in the method of proportional and complete quality arrangement ("Flexitallic Middle East receives Saudi Aramco and SABIC approvals", 2014). The company is headquartered in Dhahran and is owned by the country’s government. The business is known to create over 12.7 million barrels of oil per day, which make it as the major oil and Gas Company in the world. The corporation has been doing huge capital spending on pioneer skill and in receiving fresh talent from different nations. Saudi Aramco’s net value has been projected around US$ 10 trillion, which makes it as the world’s most valuable company (Gitlow, 2008). The company has been the largest crude oil reserves. The company possesses functions and progresses all energy possessions based in Saudi Arabia.
Reason to select the quality program for Saudi Aramco
The main reason to select Saudi Aramco quality program is due to a reason that the company considers several qualitative amenities such as control, monitoring, and assurance of quality (Aguinis, Joo, & Gottfredson, 2012). The company also deliberates various ethics such as TQM and six-sigma, which attend as the yardstick for the superiority of their control (Gitlow, 2008). Another reason to conduct a study on the quality program of the company is due to a reason that Saudi Aramco is preserving the world’s biggest resources of natural gas and the corporation is also among the top manufacturers ("Saudi Aramco selects GE for Shaybah expansion", 2010). The company has expanded globally and its maneuvers are functioned by several joint undertakings in Japan, US, Egypt, UK, United Arab Emirates, Netherlands and China.
Means in which quality program improve the business’s functioning
The administration of the association is safeguarded that all the resources are obtained for capital projects and working amenities that are in full sustenance with the appropriate values and specifications (Aguinis, Joo, & Gottfredson, 2012). The company by using its knowledgeable engineer’s implements its services across all of Saudi Aramco supply chain to develop a leading quality culture among the company’s approved suppliers. The quality monitoring and control unit of Saudi Aramco consists of dedicated employees who review all the engineering necessities before the initiation of material fabrication.
The fundamental processing unit of Saudi Aramco has enhanced the propane retrieval from its gas train that is depending on the Six Sigma means (Grossman, 2010). The production division implemented the procedure which is conventionally employed as process-improvement tool throughput such as transportation, addressing lower propane content and inventory management. The procedure adopted by the company strictly follows the framework of defining, measuring, analyzing, improving and controlling (Ray & Das, 2010). The department examines its quality issues by statistical analysis of the current performance and quantification of propane losses. It also contains a planned gathering to classify the root cause of the difficulties.
The quality administration services of Saudi Aramco works with dealers to build products that assemble the world class values and international codes that Saudi Arabia demands. Some of the services provided by the company are:
Quality assurance: The management continuously visits to the plants that supply constituents to Saudi Aramco and carry out reviews to make sure that the company is acquiring the right superiority systems (Yeo, Stubbs, & Barrett, 2016).
Quality monitoring: This is done for the obedience of business’s stipulations and purchase order circumstances, whether by contractors or joint ventures.
Quality control: Along with physical inspection, the management of the company also verifies test certification that proves adherence to the company’s standards.
Six Sigma, which is an established statistical tools, acts as a lens over which hidden difficulties of an business can be recognized, and the root causes of the problems can be discovered. The method provides the metrics necessary to decrease the inconsistency in procedure performance to permit on-going development in effectiveness and industrial and business operations (Basu, 2004). Six-Sigma is functional to the oil and gas industry to advance the manufacture, increase dependability and to diminish the costs while running the safe operations.
Deming’s point is about creating a constancy of purpose toward the enhancement and development of the product or service, by having an aim to become competitive and to stay in business (Yeo, Stubbs, & Barrett, 2016). This strategy is about building a strong relationship of loyalty and trust with a single supplier for any one particular item. It must be done by every company to reduce the initial cost of raw material. It is about eliminating the performance targets, and bulk cause of low quality.
Lean Six Sigma can be applied to the overall process of oil and gas industry, such as upstream process, midstream process, downstream process, management processes, and enabling processes (Curseu, 2015). The operation of six-sigma can benefit Saudi Aramco to upsurge its efficiency. The application of the strategy can authorize the corporation to exactly measure the time expended on direct and indirect undertakings and to find the root cause of low efficiency. It can also help the organization by reducing the overall costs (Stiglitz, 2010). It helps in understanding the procedures with a vision to enhancement which is also the best way to reduce costs in any occupational. In addition to this, the method of Six Sigma can also enhance the market share of the company. It also aids in increasing the competitive advantage over the competitors. By implementing Sis Sigma tools, company can reduce its waste and can increase the employee satisfaction level (Gitlow, 2008). If Saudi Aramco effectively implements the TQM process, it can reduce the cost and can earn higher revenue for it. It will also help the organization by nourishing a modest advantage, increasing the customer gratification, increasing consciousness about the quality and enlightening the operation process.
The study investigated the barriers and benefits of quality programs in Saudi Aramco. It has been found in the study that quality program tools help an association to categorize, investigate, and assessing the qualitative and quantitative information that is pertinent to their businesses. It also dispatched that Six-Sigma is a tactic taken by the executives in order to guarantee the achievement of the association by sustaining the requirements of the consumers. The study also reveals that the implementation of six-sigma can help Saudi Aramco to increase its productivity. The implementation of the strategy can empower the company to exactly measure the time spent on direct and indirect happenings and to find the root cause of low efficiency.
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