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An Approach To TQM Evaluation in Pharma Business
An Approach To TQM Evaluation in Pharma Business
An Approach To TQM Evaluation in Pharma Business
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6 authors, including:
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The research was conducted within the work of two scientific research projects financed by the Ministry of Education, Science and Technological Development of the
Republic of Serbia (project No. 41004 and No. 175036). View project
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Vidosav Majstorovic
Faculty of Mechanical Engineering, University of Belgrade,
Belgrade, Serbia, and
Ljiljana Tasic
Faculty of Pharmacy, University of Belgrade, Belgrade, Serbia
Abstract
Purpose – The purpose of this paper is to explore the good practice (GxP) and standardised
management system integration within total quality management (TQM) paradigm in pharmaceutical
sector in Serbia. Also, the impact of all interested parties on quality management has been assessed.
Design/methodology/approach – The cross-sectional study was performed, including different
stakeholders within the pharmaceutical sector in Serbia: manufacturers, distributors, big pharma
representative offices, as well as national regulatory authority. A survey instrument was developed,
consisted of 16 questions, which were organised into four groups: questions in relation to
implementation of ISO 9001, implementation of good distribution practice/good manufacturing
practice, integration of management systems, and impact on TQM and business excellence. Total
number of participants was 121.
Findings – Standardised management systems (ISO 9001, ISO 14001, OHSAS 18001) support
companies to improve business environment and management sustainability, but this survey
indicated that it was ranked at the lower level then GxP, for pharmaceutical sector in Serbia.
Although pharmaceutical companies has faced many challenges in recent years, the survey revealed
high level of confidence in quality management systems, as well as the necessity of various
management systems integration.
Originality/value – The perception of TQM by the experts in pharmaceutical companies and
regulatory authority is wider than the common TQM definition. From pharmaceutical point of view,
TQM is a holistic approach to long-term success of organisation, oriented to all interested parties, with
focus on a public health. Risk-based approach in new revision of both ISO and GxP will facilitate
integration process towards TQM and business excellence.
Keywords Total quality management, GxP, Pharmaceutical company
Paper type Research paper
1. Introduction
Total quality management (TQM)[1] is an approach to quality management that focuses The TQM Journal
on continuously improving and sustaining quality of products and services by involving Vol. 28 No. 5, 2016
pp. 745-759
management, workforce, suppliers, and customers to meet or exceed customer © Emerald Group Publishing Limited
1754-2731
expectations (Cua et al., 2001). There is no universally accepted definition of TQM. DOI 10.1108/TQM-10-2015-0134
TQM TQM can be viewed as a company-wide, holistic management philosophy that covers
28,5 all the business operations and seeks to continuously improve them, from resource
procurement and acquisition all the way up to the provision of customer support and
after sale service (Kaynak, 2003; Yunis et al., 2003). TQM is universally accepted as one
of the most understood change management programs (Wali et al., 2003) and it is
considered a very important factor for the long-term success of an organisation. Many
746 organisations do not comprehend clearly the concept of TQM, in terms of knowing
what are to be implemented and what area to focus on. The majority of successful
manufacturing companies have embraced TQM and realised its valuable contribution
for achieving manufacturing excellence. Organisations tend to apply TQM in different
approaches and adopt different components of TQM. The application of TQM in actual
practice is usually dependent on what quality award or programme the organisation
aims to achieve. Quality is widely recognised as one of the most important strategies or
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reliability. These systems must be well designed, implemented and controlled, and
adequate personnel and equipment are required in order to meet quality objectives[2].
Implementation of the PQS is not only a regulatory requirement or a marketing move,
but it is a paradigm for the development and improvement of business performance.
There are about 20 pharmaceutical manufacturers in Serbia, most of which have at
least one certificate confirming implementation of QMS model (Marinković et al., 2004).
Nowadays, GxPs, as well as implementation of different standardised management
systems are mandatory for all companies in pharmaceutical supply chain, not only in
manufacturing organisations. Therefore, it is important to consider the role of
regulatory authorities in each country, since the main aim of medicines regulation is
ensuring the safety, efficacy, quality, and rational use of medicines that are available to
the population. The effectiveness of medicines regulation should be judged according
to the extent to which the medicines regulatory authority achieves this aim. One way to
measure medicines regulation effectiveness is by relating the final outcomes of
medicines regulation to various regulatory functions and by developing measures to
capture regulation performance. To accomplish all the regulatory authority’s
objectives, one possible approach is to implement CQI or TQM (Pejović et al., 2016).
Serbian pharmaceutical companies are mostly subsidiaries of global,
multinational companies. Related to the new business model, outsource of some
pharmaceutical manufacturing processes is accepted by Serbian companies. Only
few pharmaceutical plants in Serbia perform the full manufacturing process, from
active pharmaceutical ingredients through bulk to the final products.
Contract manufacturing of pharmaceuticals influences the quality risk (Gray et al.,
2011), so implementation and understanding of pharmaceutical quality standards is a
big challenge for all subjects in pharmaceutical supply chain.
The aim of this paper is the investigation of GxP and standardised management
system integration on TQM paradigm in pharmaceutical sector in Serbia, including the
society prospective.
managers at the pharmaceutical industry and literature should focus on the adoption of
such practices into the pharmaceutical industry. New case studies should be done to
prove the feasibility of such new practices.
Research dealing with the empirical relationships between TQM and the operational
and strategic facets of organisational performance in different service operational
settings has not been forthcoming. Such research is needed to give service managers
the bottom-line justification for implementing TQM.
To assess QMS in pharma business activities in Serbia, this quantitative study has
been designed.
The prospective cross-sectional study was conducted during February and March
2015 on a convenient sample of marketing authorisation holders: five organisations
from pharmaceutical industry (local manufacturers), four organisations from big
pharmaceutical industry (representative offices), and four distribution pharmaceutical
companies. Also, the same questionnaire was sent to Serbian drug regulatory authority
which is assessing marketing authorisation (MA) dossiers and is issuing MA
approvals. The attitude and perception of Drug Agency experts about QMS is very
important, because of their role in the public health and patient safety.
The study was conducted using a specially constructed, anonymous questionnaire
(see the Appendix). The questionnaire is sent to the heads of quality, who were asked to
distribute it to the key personnel in pharmaceutical companies. Total number of
collected questionnaires was 121. The data analysis was performed using SPSS
programme (version 18).
28,5
750
results
TQM
Table I.
Summary of survey
Total Number of answers
Question number Number of answers (1) – Number of answers (2) (3) – middle degree or Number of answers Number of answers (5)
Group (indicator, of fully disagree or fully – tend to disagree or neither positive nor (4) – tend to agree or – fully agree or fully
(construct) item) answers negative answer negative answer negative answer positive answer positive answer
confirm the reliability of a measure. As a rule of thumb, the coefficient should be less
than 0.3 to confirm the existence of a true mean among the sample (Kumar et al., 2009),
which is satisfied for all coefficient of variation values, as presented in Tables I-IV.
Then, the overall model was analysed. The analysis of variance was performed and
showed F-value (for the overall model) of 17.97 at zero significance. Given that the
questionnaire involves the use of multiplicative scale, model reliability was tested using
Cronbach’s α coefficient. The overall Cronbach’s α for the observed 16 items
(indicators) that measure performance of four groups (constructs) was found to be
0.901, which is higher than the required minimal value of 0.7. Finally, the reliability
analysis of constructs used in the model was conducted by calculating their
components of IS are all related, which confirms the homogeneity of the set of
components used to express the construct IS.
The analysis of inter-item correlation revealed that the highest correlation is
between the items, i.e. indicators IS4 and IS5 (correlation coefficient is 0.682), followed
by the correlation between the indicators IS2 and IS3 (correlation coefficient is 0.649),
correlation between IS1 and IS3 (correlation coefficient is 0.607), and correlation
between IS1 and IS2 (correlation coefficient is 0.549). The other correlations,
i.e. correlations between indicators that are not listed above are significantly lower
(the corresponding correlation coefficients are between 0.118 and 0.197). The reason for
the low correlation can be described by the fact that respondents did not link ISO 9001
directly to GxP, although PQS (GMP part) suggested connection of these standards[3].
Answers about GxP in pharma business (GP) are presented in Table III.
The reliability analysis for the construct GP resulted in a rather high Cronbach’s
α value (α ¼ 0.821), confirming the homogeneity of the set of indicators used to
present the construct GP (in other words, the indicators GP1, GP2, GP3, GP4, and GP5
are all related).
The inter-item correlation matrix showed that the highest correlation is between the
indicators GP2 and GP3 (correlation coefficient is 0.708), GP1 and GP5 (correlation
coefficient is 0.694), GP3 and GP4 (correlation coefficient is 0.605), GP1 and GP4
(correlation coefficient is 0.542), and GP4 and GP5 (correlation coefficient is 0.507). The
other correlations not mentioned above are lower, with correlation coefficients between
0.256 and 0.446. Key personnel in pharmaceutical companies are traditionally well
trained according GMP guidelines. Recently, GDP became mandatory standard, so
high correlation among the answers in this section is expected.
Although pharmaceutical companies are phased with different standardised
management systems (ISO 14001, OHSAS 18001, ISO 27001, etc.), integration models
are not widely adopted (Bekčić et al., 2013).
Answers about GxP in integration of management systems (IM) in pharmaceutical
business are presented in Table IV. For the IM construct, the reliability analysis
showed the Cronbach’s α that equals the threshold point of 0.7. Therefore,
the homogeneity of the set IM1, IM2 and IM3 that is used to present the construct
IM is acceptable.
The inter-item correlation analysis showed that the correlation between the
indicators IM1 and IM2 (correlation coefficient 0.478) is higher than the
correlation between IM1 and IM3 (correlation coefficient 0.392) and the correlation
between IM2 and IM3 (correlation coefficient 0.382). However, all three TQM
correlations are relatively low in comparison to the correlations between indicators evaluation
for other three constructs IS, GP, and BE. Reason of these low correlations
can be found in respondents’ insufficient and non-homogenous knowledge of
in pharma
management systems integration. Standardised management systems in their new business
versions are approaching each other, and development of an integration model will be
the new phase of PQS. 753
The highest mean value (4.53) was noticed for the answers in the group
BE (Table V).
The considered three indicators BE1, BE2, and BE3 that are used to depict the
construct BE are related (Cronbach’s α ¼ 0.815), which means that they measure the
same concept.
The analysis of correlation between indicators of the construct BE showed that the
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highest correlation is between BE2 and BE3 (correlation coefficient is 0.639), followed
by the correlation between BE1 and BE2 (correlation coefficient 0.587), that is slightly
higher that the correlation between BE1 and BE3 (correlation coefficient 0.561). These
results confirm the fact that implementation of quality standards enables better
product positioning. Quality of pharmaceuticals is complementary to the patient safety,
so implementation of quality standards is the main predictor of the appropriate quality
of healthcare.
The perception of TQM by experts in pharmaceutical companies and regulatory
authority is wider than the common TQM definition. From the pharmaceutical point of
view, TQM is a holistic approach to long-term success of organisation, oriented to all
interested parties, and focused on public health. Our study showed that mandatory
quality standards (GxP) were well accepted and implemented, while voluntary (ISO)
standards were not recognised and integrated enough in a quality organisation
structure and policies.
The specificity of our finding was that implementation of GxP was realised using
tools and predictor of implementation of ISO standards and TQM. As long as the GMP
and GDP are mandatory, we assume that the regulatory authority will be crucial link
for the customer focus. This observation may correlate with the quality culture of the
developing countries.
4. Conclusion
Earlier this year, in Serbia there were major changes and difficulties in the
pharmaceutical business, due to price erosion of medicines and loss of privileges of
domestic producers. Many pharmaceutical companies have reduced their operations
and lay off many workers. At the same time, demands and requirements about quality
management standards are increasing. Implementation of GxP is now mandatory not
only in pharmaceutical industry but also in other pharmaceutical organisations in
pharmaceutical supply chain.
Glossary
Rana, T.M., Salaria, M.R., Herani, G.M. and Qureshi, M.A. (2009), “Role of quality management in
pharmaceutical development: evidence from Islamabad and Lahore”, Indus Journal of
Management & Social Sciences, Vol. 3 No. 2, pp. 99-109.
Salaheldin, S.I. (2009), “Critical success factors for TQM implementation and their impact on
performance of SMEs”, International Journal of Productivity and Performance
Management, Vol. 58 No. 3, pp. 215-237.
Sharma, M. and Kodali, R. (2008), “TQM implementation elements for manufacturing excellence”,
The TQM Journal, Vol. 20 No. 6, pp. 599-621.
Singh, S.B. and Dhalla, R.S. (2010), “Effect of total quality management on performance of Indian
pharmaceutical industries”, Proceedings of the 2010 International Conference on Industrial
Engineering and Operations Management, Dhaka, 9-10 January, available at: www.iieom.
org/paper/165%20Sudhanshu_TQM.pdf (accessed 14 June 2015).
Wali, A.A., Deshmukh, S.G. and Gupta, A.D. (2003), “Critical success factors of TQM: a select
study of Indian organizations”, Production Planning & Control, Vol. 14 No. 1, pp. 3-14.
Yunis, M., Jung, J. and Chen, S. (2003), “TQM, strategy, and performance: a firm-level analysis”,
International Journal of Quality & Reliability Management, Vol. 30 No. 6, pp. 690-714.
Zakuan, N.M., Yusof, S.M., Laosirihongthong, T. and Shaharoun, A.M. (2010), “Proposed
relationship of TQM and organisational performance using structured equation modeling”,
Total Quality Management, Vol. 21 No. 4, pp. 185-203.
Further reading
Agus, A., Krishnan, S.K. and Kadir, S.L.S.A. (2000), “The structural impact of TQM on financial
performance relative to competitors through customer satisfaction: a study of Malaysian
manufacturing companies”, Total Quality Management, Vol. 11 Nos 4-6, pp. 808-819.
El Shenawy, E., Baker, T. and Lemak, D.J. (2007), “A meta-analysis of the effect of TQM on
competitive advantage”, International Journal of Quality & Reliability Management, Vol. 24
No. 5, pp. 442-471.
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Appendix
evaluation
business
in pharma
TQM
757
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758
TQM
About the authors TQM
Valentina Marinkovic, BSc, MSc, PhD, Pharm Spec, built her professional career in two directions – evaluation
academic and work in practice. She acquired title of an Associate Professor at the Faculty of
Technology in Leskovac, University of Nis, and she established their practical experience in the in pharma
pharmaceutical and chemical industries. She has published more than 130 publications in scientific business
and professional literature. She is theVice-President of the Untied Association for Quality in Serbia
( JUSK) since 2009 year. Nowadays, she is an Assistant Professor of Pharmacy, University of
Belgrade, Department of Social Pharmacy and Pharmaceutical Legislation. Valentina Marinkovic is 759
the corresponding author and can be contacted at: vanja.marinkovic63@gmail.com
Stana Bekcic was born in Belgrade. She holds Bsc, and Msc at the Faculty of Technology,
Major: Biochemical Engineering and Biotechnology in Belgrade. Specialist in Biotechnology since
2004 she is on PhD programme at the Faculty of Pharmacy in Belgrade. She is a Member of the
Untied Association for Quality in Serbia ( JUSK) since 2011. Her professional and research career
began and developed over 17 years in Institute of Virology, Vaccines and Sera, “Torlak”, Belgrade
and had the leadership on QA positions more than nine years. She is a Quality Assurance Manager
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