Total Quality Management in SABIC

Document Type:Essay

Subject Area:Management

Document 1

The firm is based in Riyadh, Saudi Arabia ("SABIC - Home", 2018). The firm is a global leader in diversified chemicals with over thirty-five thousand staffs globally, operating in more than fifty countries. The company has interests in over 15 companies ranging from full ownership to noteworthy partial contribution and several innovation hubs across America, Europe, Middle East, as well as Asia. In 2013, SABIC was number four globally in chemical production ("SABIC - Home", 2018). Today, the firm is the world’s largest manufacturer of polyetherimide, polyphenylene, polycarbonate, granular urea, and methyl tert-butyl ether. There were several reports of delays by North American plastics processors. There was a delay between the communication of receiving supply mainly in North America and Europe in the automotive sector (Al-Turki, 2011).

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As a result, SABIC lost some of their customers as many firms chose to look for other suppliers (A. Al-Muha, 2014). Up to date, the organization still encounters similar problems with other production plants such as in Alabama. Besides, the firm faces issues such as a lack of raw materials for example acrylic causes problems with cost increment, generation, and delivery. Strong economies like China profoundly consume these resins at a very high rate; in this manner, taking care of their demand represents a huge challenge (Burns, 2010; Al-Turki, 2011). Other than the shortage, the supply resulting cost increment influences numerous different items from these business sectors. In any case, not every one of the issues SABIC experiences are inner Additionally, depending on different providers for a few of its raw materials demonstrates a test when such conveyances are postponed.

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Mitigating the Challenges In spite of demanding situations with the newly implemented system, the enterprise resource planning (ERP) has empowered SABIC to satisfy an immense market as it may obtain and prepare several orders and deliveries from different parts of the world without any limits (A. ” It solves the human resource problem with a lot of ease. Gradually, the firm has invested in being able to have a constant supply of raw materials to reduce the dependence on overseas entities to a minimal. Seldom do its daily dealings are affected anymore by different supplier problems. They have got also taken into consideration in venturing into clinical equipment which includes syringes which makes them even more popular (Burns, 2010). Currently, the firm tops at number one as the largest and most profitable firm in the center East, making earnings of as much as $5 billion and has accumulated assets worth near $90 billion SABIC’s splendid answers to its evolving issues are obviously bearing result and could likely hold to achieve this (Al-Turki, 2011).

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