International Journal of Research in Entrepreneurship & Business Studies
eISSN-2708-8006, Vol. 2, issue. 3, 2021, pp. 1-14
Continuous Improvement Practices in Manufacturing Companies in the
Sultanate of Oman
Samiya Abdullah Al-Qayoudhi 1 , Shanmuga Pria 2 , Venkata Vara Prasad 3
University of Technology and Applied Sciences, Shinas
Article History: Received on 11 th Apr. 2021 , Revised on 6 th May. 2021 , Published on 4 th Jun. 2021
Abstract
Purpose: The aims of this study were to identify Continuous Improvement (CI) practices prevailing in the
manufacturing companies with regards to Visual Management, Employee Engagement, Leadership, and
Risk Management; t o identify continuous improvement tools that have been adopted by the manufacturing
companies, and to analyze the critical success factors for implementing CI practices in manufacturing
companies.
Design/methodology/approach: For this study, a survey questionnaire was used to collect the CI practices
information from manufacturing companies in Oman. 146 samples were collected from 75 manufacturing
units selected at random from the Public Establishment for Industrial Estate database. The data was analyzed
for reliability, robustness, ranking tests using Statistical Package for Social Statistics (SPSS).
Findings: The majority of the manufacturing firms were using only the CI program for the past five years.
However, there were not substantial cost savings for these businesses. The overall sales increased, while the
average processing time had declined and the product recalls also had increased.
Research limitations/implications: The most important factors identified for the effective implementation
of CI in industrial firms were effective communication, top management encouragement, and employee
involvement, and a conducive organizational atmosphere.
Social implications: Sultanate of Oman like any other GCC countries is undergoing a critical phase in the
economy because of the oil price plunge combined with the ongoing COVID-19 pandemic. The paper will
be of use to academics, researchers, and continuous improvement practitioners.
Originality/Value: So far, very few studies have been conducted in analyzing the factors correlated to CI in
the Omani context and no study was carried out before in exploring the CI application in the Sultanate of
Oman.
Keywords: Continuous Improvement Practices, Critical Success Factors, Visual Management, Employee
Engagement, Leadership, Risk Management, Manufacturing Companies/Industries in Oman.
Introduction
Continuous Improvement (CI) is a quality management concept that was introduced in Japan and has spread
all over the world. CI is one of the pillars of production processes focusing on total quality management
(TQM), lean method of production, and other classic manufacturing models. A collection of activities that
make up a process aimed at improving efficiency is known as Continuous Improvement. These practices
primarily involve the reduction/elimination of unwanted wastage, during production. Lower maintenance
expenses, the long life of the equipment, and low average expansion costs are all the advantages of effective
CI deployment programs in an enterprise. Caffyn (1999) described CI as an approach that focuses on gradual
innovation and includes the whole enterprise. CI can be characterized as a standard process that maximizes
output through detecting and removing waste (Dossenbach, 2006).
CI method, though often correlated with these models, can be applied as a stand-alone initiative that results
in cumulative changes in organizational performance metrics. CI is made up of three things, namely paths,
place, and phase (Bessant and Francis, 1999). The first two are concerned with the organization’s ability to
accumulate skills and their proper time usage. The third component is organizational routine, which decides
how to innovate, learn, and renew.
Atkinson (1994) suggested the following components for change which the management needs to focus
namely commitment of the management, awareness, application, benchmarking, appreciation, and
regeneration. Dabhilkar and Bengtsson (2004) argued that given the committed team of managers, the use of
TQM techniques for efficient problem solving becomes easier and strategy implementation brings out
© Al-Qayoudhi, Pria & Prasad
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International Journal of Research in Entrepreneurship & Business Studies
Vol. 2, issue. 3, 2021, pp. 1-14
https://doi.org/10.47259/ijrebs.231
operations efficiency through continuous improvements. Al-Khawaldeh and Sloan (2007) revealed that
implementation of continuous improvement activities in companies come across problems related to
measuring the performances, financial support, and organizational commitment.
The global market climate is marked by severe competition and increased uncertainty in consumer needs.
These developments have left their indelible imprints on various aspects of the manufacturing industry. Due
to intensified global competitiveness, all businesses are focused on increasing profits through system
simplification and gradual upgrades leveraging new technology. Continuous improvement of production
practices is important for the businesses to face the competition, maintain their stake in the global market and
local market as well (Singh and Singh, 2018).
The Sultanate of Oman like any other GCC countries is undergoing a critical phase in the economy because
of the oil price plunge combined with the ongoing COVID-19 pandemic. The inflation report released on
March 2021 reviews the most inflation rates during the month, and price movement in the various provinces.
The inflation rate in Oman has been recorded at 3.4 percent an increase from 1 percent in 2020. Since oil
prices have gone down and also inflation runs in the economy it is necessary for the manufacturing companies
to adopt ways to reduce cost and improve productivity.
Production drives estimated as the key performance indicators ranked 45 out of 100 in 2018 (World
Economic Forum, 2018). This will be supporting Oman to become one of the top 20 countries by 2030 (Oman
Observer, 2020). Sustainable development of the manufacturing industry in Oman relies mainly on the
increase in net exports. Therefore, the Ministry of Commerce and Industry (MOCI) in Oman has introduced
trade policies accordingly. With the policies targeting the manufacturing sector, import replacements and
export recommendation is necessitated. Manufacturing industries that are competitive in the domestic market
will export more. So, CI practices at this juncture gain a lot of attention. CI helps in refining the production
practice, reducing the cost of production, etc., and make the price reasonable in the local markets and outside
the country.
CI can be achieved through Kaizen techniques which were proven by Japanese experiments. Kaizen is so
popular in the western world. The term refers to a method of incrementally improving the normal method of
working overtime (Chen et al., 2001). Kai denotes transition and Zen denotes goodness. The word is derived
from the Japanese term Gemba Kaizen, which means ‘continuous development and perfection’ (Yanjiang et
al., 2006).
The application or incorporation of CI methods or strategies is dependent on several factors. Fewer
experiments have been performed in the Omani context to investigate the factors associated with CI. So far,
very few studies have been conducted in analyzing the factors correlated to CI in the Omani context and no
study was carried out before in exploring the CI application in the Sultanate of Oman. This is the prime
reason for undertaking the study and this study adds value to manufacturing industries in Oman.
Research Questions
The research questions of the study were:
1. What are the CI practices prevailing in the manufacturing companies with regards to Visual
Management, Employee Engagement, Leadership, and Risk Management?
2. Which continuous improvement tools have been adopted by the manufacturing companies?
3. What are the critical success factors for implementing CI practices in manufacturing companies?
Research Objectives
The objectives of the study were:
1. To identify CI practices prevailing in the manufacturing companies with regards to Visual
Management, Employee Engagement, Leadership, and Risk Management.
2. To identify continuous improvement tools that have been adopted by the manufacturing companies.
3. To analyze the critical success factors for implementing CI practices in the manufacturing
companies
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eISSN-2708-8006, Vol. 2, issue. 3, 2021, pp. 1-14
Review of Literature
Continuous Improvement is an effective strategic instrument for increasing organizational productivity
(Marin-Garcia et al., 2008). Lean is one of the popular best continuous improvement practices (Welo &
Ringen, 2015). CI can be linked to a variety of problems, including organization of improvement teams
(Augsdorfer and Harding, 1995; Dabhilkar and Bengtsson, 2004), the capacity of the improvement team
(Bessant and Francis, 1999; Jabnoun, 2001; Lee, 2004; Abrahamsson and Gerdin, 2006), the association
between CI and TQM (Chapman and Hyland, 1997; Hyland et al., 2000), feedback structures (Delbridge and
Barton, 2002), as well as performance metrics and CI operations’ supporting systems (Bechet, 2000).
Although an efficient quality improvement program is one of the primary conditions for achieving and
maintaining operational performance in a competitive environment, shortcomings in executing effective
continuous improvement plans surpass achievements (Anand et al. , 2009; De Morais et al. , 2012).
Visual Management (VM)
Many organizations face major challenges in providing the right information to the concerned people at the
appropriate moment efficiently so that the best decisions are made for suitable actions (Harris and Harris,
2008; Tezel et al., 2010). VM acknowledges that the concept lets shop floor staff and supervisors understand
manufacturing processes by simply visualizing the importance of their jobs in a responsive manner (Tezel et
al., 2016).
Employee Engagement
Employee engagement is a kind of strategy for the sustainability of the organization in the long run through
mutual commitment between the employees and the organization (Taneja et al., 2015). Employee
engagement entails communicating the value of CI to workers as well as defining mutual objectives that are
shared by all employees. This includes encouraging training, leadership, collaboration, or the establishment
of contact networks to access and disseminate information and expertise (Escrig-Tena, 2004). The pioneer
Lean manufacturing system involved continuous employee participation and engagement (Maskell et al.,
2004) whereas in Kaizen, management keeps improving the standard of the processes for better employee
empowerment, etc., without making more investment (Liker & Hoseus, 2008).
Leadership
In the introduction of continuous process improvement, senior leaders play a vital role (Das et al., 2011;
Soltani, 2005; Venkateswarlu & Nilakant, 2005). According to Rad, (2006), the different approaches to
continuous improvement necessitate the support of the senior management and involvement and the
employees of such organization will least consider such continuous improvement if it is incompatible with
the organization’s culture.
Risk Management (RM)
Risk management of a project is a controlled process that involves the identification of various types of risks
which emerge and responding to such risks (Galli & Kaviani, 2017). In an organization, risk management
involves deciding which risks to be minimized and which risks should be considered (Danciulescu, 2013).
Risk management aims to reduce perils and increase the possibility of good events in an organization (Choi
et al., 2016). Companies should reduce the risk levels that might emerge and risk management will be the
critical success factor to overcome the same (Galli, 2018). Companies use risk management to enhance their
products in comparison to rivals as RM emphasizes the removal of waste and the reduction in costs
(Avanesov, 2009).
From the above review of literature, most of the measurements were drawn. Thus, these instruments utilized
in this study were adopted contextualizing to Omani manufacturing industries. The respondents rated the
measurement items – 20 critical success factors (CSFs) on a scale of 1 to 5 (Likert Scale). Those CSFs were
derived from the above literature of CI as shown in Table 1.
© Al-Qayoudhi, Pria & Prasad
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Vol. 2, issue. 3, 2021, pp. 1-14
https://doi.org/10.47259/ijrebs.231
Table 1 Measurement of Constructs
#
Instruments
Statements
Authors
1
Visual Management
5
Tezel et al. (2016)
Escrig-Tena (2004)
2
Employee
Engagement
5
Das et al. (2011); Soltani (2005);
3
Leadership
5
Talib et al. (2011); Venkateswarlu
& Nilakant (2005); Rad (2006)
4
Risk management
5
Danciulescu (2013)
Research Methodology
Based on the above literature review, a questionnaire was prepared which is meant to provide the basis for
CI practices of the manufacturing companies in Oman. It included the following parts viz.
1. Demographic information
2. Manufacturing companies experience with CI tools and techniques
3. Company success factors
4. Critical success factors for CI implementation in manufacturing companies in Oman.
The survey was sent to 75 manufacturing units selected at random from the Public Establishment for
Industrial Estate database and 146 completed questionnaires were obtained out of 200 questionnaires mailed.
The data was analyzed for reliability, robustness, ranking tests using Statistical Package for Social Statistics
(SPSS).
Findings
Cronbach alpha score was 0.81 passes the minimum requirement (Nunnally, 1960).
Table 2 Demographic details of the respondents
Characteristics
Frequency
%
Gender
Male
83
56.8
Female
63
43.2
18-25
13
8.9
26-35
88
60.3
Age
36-45
40
27.4
46-55
4
2.7
56-60
1
0.7
President
6
4.1
Vice President
15
10.3
Designation
Director/Manager
16
11.0
Supervisor/Foreman
39
26.7
Operator/Technician
70
47.9
0-5 years
75
51.4
Experience in 6-10 years
45
30.8
the
Current 11-15 years
15
10.3
Position
16-20 years
9
6.2
21-25 years
2
1.4
Corporate
23
15.8
Quality
12
8.2
Current
Manufacturing
26
17.8
Department
Logistics
7
4.8
Finance
14
9.6
Marketing
6
4.1
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eISSN-2708-8006, Vol. 2, issue. 3, 2021, pp. 1-14
Sales
4
2.7
Regulatory
1
0.7
Others
53
36.3
0-100
39
26.7
101-300
25
17.1
Number
of
Employees
301-500
18
12.3
501-1000
29
19.9
More than 1000
35
24.0
Visual Management only
6
4.1
Employee Engagement only
6
4.1
Risk Management only
28
19.2
CI
Critical
Success Factors
Leadership only
19
13.0
of
the
Employee Engagement &
14
9.6
companies
Leadership
Visual Management, Risk
Management & Leadership
6
4.1
All the four
67
45.9
0-5 years
60
41.1
6-10 years
45
30.8
Duration of the 11-15 years
26
17.8
use of CI tools 16-20 years
7
4.8
and techniques
21-25 years
1
0.7
More than 25 years
1
0.7
Did not use any CI
6
4.1
CI program site Site Specific
50
34.2
/
Corporate Corporate Initiative
82
56.2
initiative
Not applicable
14
9.6
Increased
98
67.1
Average Sales
Constant
37
25.4
Decreased
11
7.5
Decreased
85
58.2
Average Cycle
time
Increased
27
18.5
Not sure
34
23.3
Yes
67
45.9
Products
Recalled
No
48
32.9
Not sure
31
21.2
Aluminium
5
3.5
Steel
4
2.8
Building Materials
10
6.9
Cement
2
1.4
Quick Lime
1
0.7
Ceramic
2
1.4
Chemicals
1
0.7
Electrical Switch Board
4
2.8
Oil & Gas
35
24.5
Type
of
Products
Food
3
2.1
Iron-ore and pellets
2
1.4
Paper
1
0.7
Plastics
1
0.7
Methanol Gas
3
2.1
Propylene
1
0.7
Polymers
1
0.7
Bottles
2
1.4
Sulphuric Acid
3
2.1
Others
65
43.4
Source: Questionnaire
© Al-Qayoudhi, Pria & Prasad
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Table 3 CI Tools & Techniques used by the companies
CI Tools
Frequency
%
Kaizen
40
27.4
Six Sigma
34
23.3
Design Excellence
23
15.7
Lean
26
17.8
TQM
16
11.0
HACCP
7
4.8
30
27.4 %
23.3%
25
20
17.8%
15.7%
15
11%
10
4.8%
5
0
Kaizen
Six Sigma
Design
Lean
TQM
HACCP
Excellence
Figure 1 CI Tools & Techniques used by the companies
Figure 1 shows the various CI tools and techniques used to ensure successful implementation of CI in their
companies and the popular tool among the respondents i.e. Kaizen.
Table 4 Visual Management (VM) Tools used by the companies
Visual Management Tools
Frequency
%
Cross Training
49
33.5
5 S
23
15.7
Control Plans
12
8.2
Failure Mode and Effect Analysis
15
10.3
Standard Operating Procedures
28
19.2
Kanban
9
6.2
Dashboards
10
6.9
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40
33.5%
35
30
25
19.2%
20
15.7%
15
10.3%
8.2%
10
6.2%
6.9%
5
0
Cross
5 S
Control PlansFailure Mode Standard
Kanban
Dashboards
Training
and Effect
Operating
Analysis
Procedures
Figure 2 Visual Management (VM) Tools used by the companies
Figure 2 shows the various VM tools used to ensure successful implementation of CI in their companies and
the popular tool among the respondents i.e. Cross Training.
Table 5 Visual Management (VM) Tools
value
p
Statements
SD
D
N
A
SA
KS
value
1. Top management
supports
the
36
35
42
20
13
implementation
of 24.7%
24.0%
28.7%
13.7% 8.9%
.166
VM
2. VM tools allows
you to detect the
32
40
44
23
7
deviations from the 21.9%
27.4%
30.1%
15.8% 4.8%
.176
standards
3.
VM
strategy
enables the flow of
31
32
53
21
9
14.4% 6.2%
.201
68.931
.000
information
21.2%
21.9%
36.3%
4. VM facilitates
distribution
of
36
36
45
22
7
responsibilities among 24.7%
24.7%
30.8%
15.0% 4.8%
.176
employees
5. VM leads to
providing the best
32
30
49
26
9
17.8% 6.2%
.193
solution
21.9%
20.5%
33.6%
Null Hypothesis.1 : No relationship exists between the VM tools and the choices of the respondents.
Table 5 shows p-value < 0.05. So null hypothesis 1 got rejected. i.e., it is understood that there exists a
significant relationship between the VM tools and the choices of the respondents. From K-S values of
Kolmogorov-Smirnov test, ‘VM strategy enables the flow of information’ ranked first (0.201); ‘VM leads to
providing the best solution’ ranked second (0.193) and both ‘VM tools allow you to detect the deviations
from the standards’ and ‘VM facilitates the distribution of responsibilities among employees’ ranked third
(0.176).
Table 4 Ways of Employee Engagement used by the companies
Ways of Employee Engagement
Frequency
%
Appreciation & Recognition
54
37.0
Training & Development Programs
22
15.1
Work Schedule Flexibility
12
8.2
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Creating Opportunities outside the workplace
12
8.2
Attending Industry Tradeshows/Virtual Events
12
8.2
with Employees
Encouraging employees to be creative/innovative
12
8.2
Hiring the right people for the right job
22
15.1
40.0%
37.0%
35.0%
30.0%
25.0%
20.0%
15.1%
15.1%
15.0%
10.0%
8.2%
8.2%
8.2%
8.2%
5.0%
0.0%
Appreciation Training &
Work
Creating
Attending Encouraging Hiring Right
&
Development Schedule opportunities Industry employees to people for
Recognition
Programs
Flexibility
outside work trade shows be creative the right job
place
& virtual
and
events with innovative
employees
Figure 3 Ways of Employee Engagement used by the companies
Figure 3 shows the various ways of Employee engagement used to ensure successful implementation of CI
in their companies and the popular means among the respondent companies was Appreciation & Recognition.
Table 6 Employee Engagement
value
p-
Statements
SD
D
N
A
SA
1. The top management
supports employees to
29
29
47
23
18
achieve
continuous 19.9%
19.9%
32.1%
15.8%
12.3%
17.379
.002
improvement
2. The organization
provides professional
31
35
41
26
13
16.621
.002
training
21.2%
24.0%
28.1%
17.8%
8.9%
3.
Organization
atmosphere is full of
25
35
37
30
19
8.207
.084
spirit and cooperation
17.2%
24.0%
25.3%
20.5%
13.0%
4. Your work is always
25
44
29
34
14
meaningful
17.1%
30.1%
19.9%
23.3%
9.6%
18.000
.001
5. Your organization
28
37
32
33
16
encourages creativity
19.2%
25.3%
21.9%
22.6%
11.0%
9.862
.043
The p-value of all the statements in Table 6 was less than .05 except statement NO.3 whose value (.084) was
more than .05. So, eliminating that statement, the analysis was carried out again and the result was as follows:
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Continuous Improvement Practices in Oman Manufacturing Companies
International Journal of Research in Entrepreneurship & Business Studies
eISSN-2708-8006, Vol. 2, issue. 3, 2021, pp. 1-14
© Al-Qayoudhi, Pria & Prasad
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International Journal of Research in Entrepreneurship & Business Studies
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https://doi.org/10.47259/ijrebs.231
Table 7 Employee Engagement
value
p-
Statements
SD
D
N
A
SA
KS
value
1. The top management
supports employees to
29
29
47
23
18
achieve
continuous 19.9% 19.9% 32.1% 15.8% 12.3%
.166
improvement
2. The organization
provides professional
31
35
41
26
13
.176
74.034 .000
training
21.2% 24.0% 28.1% 17.8%
8.9%
4. Your work is always
25
44
29
34
14
meaningful
17.1% 30.1% 19.9% 23.3%
9.6%
.176
5. Your organization
28
37
32
33
16
encourages creativity
19.2% 25.3% 21.9% 22.6% 11.0%
.193
Null Hypothesis 2 : No relationship exists between the VM tools and the choices of the respondents.
Table 7 shows p-value < 0.05. So the null hypothesis 2 got rejected. i.e., it is understood that there exists a
significant relationship between employee engagement and the choices of the respondents. From K-S values
of Kolmogorov-Smirnov test, ‘Your organization encourages creativity’ ranked first (0.193); both ‘The
organization provides professional training’ and ‘Your work is always meaningful’ ranked second (0.176)
and ‘The top management supports employees to achieve continuous improvement’ ranked third (0.166).
Table 8 Leadership Style adopted by the companies
Leadership Style
Frequency
%
Top Down
37
25.3
Bottom Up
60
41.1
Participative
4
33.6
Table 8 shows the various Leadership style adopted to ensure the successful implementation of CI in their
companies.
Table 9 Leadership Practices
value
p-
Statements
SD
D
N
A
SA
KS
value
1. The organization has
31
27
47
25
16
a kaizen team leader
21.2% 18.5% 32.2% 17.1% 11.0%
.174
2. The top management
supports the change
33
36
33
34
10
.178
journey
22.6% 24.7% 22.6% 23.3%
6.8%
3. The leaders ensure
that every staff job can
27
32
45
29
13
add value to the 18.5% 21.8% 30.8% 19.8%
8.1%
.168
customers
42.667 .001
4. The team leaders
provide
effective
23
41
36
27
18
communication between 15.7% 28.1% 24.7% 18.5% 13.0%
.188
the staff
5. The leaders support
Gemba commitment for
30
33
46
22
15
20.5% 22.6% 31.5% 15.1% 10.3%
.164
continuous
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improvement
achievement
Null Hypothesis.3 : No relationship exists between the Leadership Practices and the choices of the
respondents.
Table 9 shows p-value < 0.05. So the null hypothesis 3 got rejected. i.e., it is understood that there exists a
significant relationship between the Leadership Practices and the choices of the respondents. From K-S
values of Kolmogorov-Smirnov test, ‘The team leaders provide effective communication between the staff’
ranked first (0.188); ‘The top management supports the change journey’ ranked second (0.178) and ‘The
organization has a kaizen team leader’ (0.174).
Table 10 Risk Management Tools adopted by the companies
Risk Management Tools
Frequency
%
HAZOP
41
28.1
Process FMEA
28
19.2
Ishikawa Diagrams
50
34.2
Fault Tree Analysis
27
18.5
40
34.2%
28.1%
30
19.2%
18.5%
20
10
0
HAZOP
Process FMEA
Ishikawa Diagrams
Fault Tree Analysis
Figure 4 Risk Management Tools adopted by the companies
Figure 4 shows the various Risk Management tools used to ensure successful implementation of CI in their
companies and the popular tool among the respondents i.e. Ishikawa Diagrams.
Table 11 Risk Management (RM) Tools
value
p
Statements
SD
D
N
A
SA
KS
value
1. The organization has
25
43
47
20
11
an effective RM team
17.0% 29.5% 32.2% 13.7%
7.6%
.182
2. The RM is applied to
achieve a high level of
26
40
33
31
16
reliability
and 17.8% 27.4% 22.6% 21.2% 11.0%
.190
profitability
3. The risk management
plan allows you to
35
42
37
23
9
55.444 .000
identify and treat the 24.0% 28.7% 25.3% 15.8%
6.2%
.194
risk efficiently
4. The risk management
process eliminates non
21
44
49
21
11
.183
value added activities
14.3% 30.1% 33.6% 14.4%
7.6%
5. The RM plan
23
47
43
19
14
identifies roles and 15.8% 32.2% 29.5% 13.0%
9.5%
.201
© Al-Qayoudhi, Pria & Prasad
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responsibilities towards
risk
Null Hypothesis.4 : No relationship exists between the Leadership Practices and the choices of the
respondents.
Table 11 shows p-value < 0.05. So the null hypothesis 4 got rejected. i.e., it is understood that there exists a
significant relationship between the Risk Management Tools and the choices of the respondents. From the
K-S values of Kolmogorov-Smirnov test, ‘The RM plan identifies roles and responsibilities towards risk’
ranked first (0.201); ‘The risk management plan allows you to identify and treat the risk efficiently’ ranked
second (0.194) and ‘The risk management process eliminates non-value-added activities ranked third (0.183).
Discussions
Average Sales
About the company average sales, the majority of the respondents (67.1%) declared that the average sales
had increased over the past three financial years (2017-2020) whereas 25.3% of the respondents reported that
the average sales were constant over the past three financial years. 7.5% of the respondents reported that their
company’s average sales had decreased over the past three financial years.
Decrease in Average Cycle Time
The majority of the respondents (58.2%) reported that the average cycle time decreased at their site, whereas
23.3% of the respondents were unsure of the same. 18.5% of the respondents disagreed that average cycle
time decreased at their site.
Recalling of Product in Site (Including Voluntarily)
A majority of 45.9% respondents agreed that their site recalled the product in the last financial year (2018 -
2019) whereas 32.9% of the respondents were against the fact that their site recalled the product and 21.2%
were unsure of the fact that their site recalled the product.
Preferred Critical Success Factors of the Companies
Among the VM tools, the respondents preferred ‘VM strategy enables the flow of information’ followed by
‘VM leads to providing the best solution’, and ‘VM tools allow you to detect the deviations from the
standards’ and ‘VM facilitates the distribution of responsibilities among employees’ ranked third.
Among the employee engagement factors, the respondents chose ‘Organization encourages creativity’
followed by both ‘The organization provides professional training’, ‘Your work is always meaningful’, ‘VM
tools allow you to detect the deviations from the standards’, and ‘The top management supports employees
to achieve continuous improvement’.
Among the leadership practices, the respondents selected ‘The team leaders provide effective communication
between the staff’ followed by ‘The top management supports the change journey’. ‘VM tools allow you to
detect the deviations from the standards’, and ‘The organization has a kaizen team leader’.
Among the risk management tools, the respondents selected ‘The RM plan identifies roles and
responsibilities towards risk’ followed by ‘The risk management plan allows you to identify and treat the risk
efficiently’, and ‘The risk management process eliminates non-value-added activities’.
Savings of the companies due to continuous improvement projects
35.6% of respondents have recorded that their company has received more than OMR 1,00,000 annual
savings from continuous improvement projects, 32.4% have recorded that their company has received less
than OMR 10,000 annual savings from continuous improvement projects, 21.9 percent respondents have
recorded that their company has received savings between OMR 10,001 – OMR 25,000 and 11percent
respondents have recorded that their company has received savings between OMR 50,001 – OMR 1,00,000
in the financial year 2018-2019.
Conclusion
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International Journal of Research in Entrepreneurship & Business Studies
eISSN-2708-8006, Vol. 2, issue. 3, 2021, pp. 1-14
The overall sales have risen, while the average processing time has declined and also the product recalls have
risen. The majority of the manufacturing firms were using only the CI program for the past five years.
However, since these projects took an average of 7 years to execute, there were not substantial cost savings
for these businesses. The overall sales increased, while the average processing time had declined and the
product recalls also had increased.
It was observed that VM strategy enables the flow of information and provides the best solutions in detecting
deviations from the standards. It was also observed that the top management supports employees to achieve
continuous improvement through effective communication. The important risk management tools were risk
management plans to identify and treat the risk efficiently. Therefore, the most important factors for the
effective implementation of CI in industrial firms were effective communication, top management
encouragement, and employee involvement, and a conducive organizational atmosphere.
This study identified the use of CI tools through the survey from the managers of the production units in the
manufacturing industry. All critical success factors assessed in this study influenced the company’s decision
to implement CI. These critical success factors, combined with the continuous improvement realized by
manufacturing companies, strongly suggested that the continuous improvement tools are an integral
component of business strategy. Organization atmosphere, Top management, Effective communication, and
Organization creativity are the important critical success factor in CI implementation. The results of this
study were similar to the results of the study by Antony et al. (2015) in which similar two factors were found
to be influential in small and medium-sized manufacturing enterprises in the UK. Verification of these results
with a larger, more representative sample of the Omani manufacturing industry is recommended.
Acknowledgment
The research was carried out with funding from The Research Council, Oman (TRC) – Ministry of Higher
Education Research & Innovation of the Sultanate of Oman under the Block Funding Program vide No.
TRC/BFP/SHCT/01/2019.
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