Russian manufacturing industry - gaining competitiveness through organisational excellence: a study of quality practices, leadership and cultural differences
2010-12-08T15:02:49Z (GMT) by
During and after perestroika in Russia, the number of state grders gradually decreased, which resulted in the scaling down of production volumes, employee layoffs and a wave of imported goods which made a few Russian industrial sectors redundant. The August 1998 crisis was a turning point for the Russian industry. It shattered a speculative sector of the Russian economy, dramatically decreased import and created psychological and economical background for the development of the Russian manufacturing industries. Because of the weak rouble, export increased and with it came the pressure from foreign partners to improve quality. From this point an interest in quality systems based on ISO 9000 started to grow. But in the environment of increasing globalisation and expectations of joining WTO, in 1-2 years, the issues of effectiveness in management and improving quality are not only issues of expansion, but more of survival in the domestic market. In order to survive, Russian manufacturing companies need to improve the competitiveness of their products both in the world and domestic markets. One approach to improving industrial competitiveness that has received considerable emphasis in all Western economies during the last 25 years or so can be referred to broadly as the quality movement. This movement started with a focus on the implementation of quality management systems (the ISO 9000 standards, previously BS 5750), followed by the influence of the Japanese total quality management (TQM) practices, leading finally to the present-day emphasis on organisational and business excellence. This project discusses the applicability of the Western quality practices in Russian manufacturing companies, including their suitability to the Russian national culture. Potential limitations for implementation of these 'practices are given along with the recommendations for their adaptation 'to the Russian economic environment. The research methodology has been constructed to achieve set research objectives. The recommendations made are a result of an analysis of a comprehensive literature review and three surveys carried out in St Petersburg manufacturing companies.