ABSTRACT
This study is designed to determine the
effect of Total Quality Management (TQM) on manufacturing sector’s performance
in Nigeria, using Cadbury Nigeria Plc, As A Case Study. This topic came into
existence as a result of enhances the quality of goods and services that will
enhances consumer patronage and reduce competitive disadvantage.
Ineffective quality management system
of operation has been creating challenges to the operations of most Nigerian
manufacturing firms. The objective of this study is to determine wether Total
Quality Management have effetc on the known wether the organization has increase
in sales in other to achieve its Total Quality Management (TQM) and also enable
to determine organizaitonal outputs on return on the investment in an
organization.
The hypothesis formulated is to
research on the relationship between training or development and employee
skill, relationship between Total Quality Management and organizational
performance and relationship between Total Quality Management and career
propsects.
A survey research design is used for
this research of which selected samples are drawn for the intensive study of
the characteristics of the population.
A total number of (100) one hundred
respondents have been selected from the population of the study in which (68)
sixty eight respondents completed and returned theirs.
The finding reveals that Total Quality
Management (TQM) play an important role in an organization performance using
Cadbury Nigeria Plc as a case study.
It is therefore recommeded that
organization should concencentrate on and put in place an effective method of developing
quality of management in manufacturing sectors that would improve and develop
the organization in other to adapt to the dynamic changes in its enviroment and
thereby meets its goals.
TABLE OF
CONTENT
CONTENT S PAGES
Title
i
Certification ii
Dedication iii
Acknowledgement iv
Table of
content v
CHAPTER ONE
INTRODUCTION
1.1 Background of the study 1
– 4
1.2 Statement of the problem 4
- 6
1.3 Objectives of study 7
1.4 Significance of study 8
1.5 Research questions 8 – 9 1.6 Research hypotheses 9
1.7 Methodology 9
– 10
1.8
Limitation of work 10
1.9 Definition of terms 10 – 13
CHAPTER
TWO
LITERATURE
REVIEW
2.0 Theoretical framework and models 14 – 18
2.1 Implementation of total quality management
[TQM]
programme 18
– 22
2.2 Characteristics of TQM strategy/policy 22 - 56
2.3 Quality in theory and practice 25 – 29
2.4 Summary of total quality management [TQM] 30 – 33
2.5 Historical background of Cadbury’s Nigeria
plc 33 – 36
CHAPTER THREE
RESEARCH
METHODOLOGY
3.0 Introduction 37
3.1 Restatement of research questions 38
3.2 Research hypotheses 38
3.3 Research design 39
3.4 Characteristics of the study 39 -
40
3.5 Sample and sampling techniques 40
3.6 Research instrument and instrumentation[data
collection instrument] 40
3.7 Validation of research instruments 40 – 41
3.8 Method of data analysis 41
– 42
3.9 Limitation of research method used 42
CHAPTER FOUR
DATA ANALYSIS
AND INTERPRETATION
4.0 Introduction 43
4.1 Analysis of section A 44– 61
4.2 Significant Test 62
–63
4.3 Hypothesis one result 63
– 65
4.4 Conclusion of the analysis 65
CHAPTER FIVE
SUMMARY,
RECOMMENDATION AND CONCLUSION
5.0 Introdution 66
– 67
5.1 Conclusion 68
– 70
5.2 Recommendation 70 – 71
Bibliography 72
– 73
Questionnaire 74
– 78
CHAPTER ONE
INTRODUCTION
1.1
Background
of the study
The
success of any organization is completely determined by the quality of
services that they produce, especially in competitive market place, this
therefore bring the relevance of the ideology and practice of Total Quality
Management(TQM) into place. Most organizations still believes that the
traditional quality control techniques and the way they have always been is
still the best and resolve their quality problems, but this however is wrong.
Employing move inspectors developing correction repairs and re-work teams
doesn’t promote quality. Traditionally, quality has been seen as the
responsibility of quality control (QC) department and it has still not been
recognized in some organization that many quality problems originate in the
marketing , sales service and administrative areas.
Total Quality Management (TQM) is move
than shifting the responsibility of problems from the customer to the produces.
It requires an approach, which must first be implemented if the rewards are to
be realized. Today’s business environment is such that managers must plan to
maintain a hold on market share. If definitions are needed, Total Quality
Management (TQM) is an approach to improving the competitiveness and
flexibility of the whole organization.
It
can be said to be the way of planning, organizing and understanding each
activity involving each individual at each level. Total Quality Management
(TQM) is also a way of riding peoples lives of wasted effort by involving
everyone in the process of improvement, increasing the effectiveness of work so
that results are achieved in less time.
The
methods and techniques used in Total Quality Management (TQM) can be placed
through any organization. They are equally in Marketing, health care, education
and hospitality industries. The impact of Total Quality Management (TQM) on an
organization is first to ensure that the management adopts a strategic overview
of quality. The approach must focus on developing a problem prevention
mentality, but it is easy to underestimate the effort that is required to
change approaches.
Many people will need to undergo a
complete change of mind to their institution, which rushes into the inspection
mode to solve quality problems. The correct mind set may be achieved by working
at the sorts of barriers that exists in the key arrears. Staffs will need to be
trained and shown how to relocate their time and energy to studying their
process in teams, searching for cause to problems and correcting the causes,
not the symptoms for once and for all. This will require of management a
positive initiative to promote the night first time approach to work
situations. Through process improvement teams, which will need to be set up,
these actions will reduce naturally the inspection-rejection syndrome.
If things are done correctly first
time around, the usual problems that create the need for inspection for failure
will disappear.
Total Quality Management (TQM) strategy
is a business management strategy that sees the organizational customers and
create as the key to organizational success. However, some Nigerian Companies
define quality by engineering standards. Effective Total Quality Management
(TQM) Strategy entails that the product quality must go beyond acceptability
for a given price range. It must involve every staff in the organization and in
every department. It express the conviction that in order to improve quality,
the organization must regularly conduct surveys most from its customers
(Internal and External customers) to evaluate its quality improvement
programmes and strategies. Total Quality Management (TQM) strategist in Nigeria
organization should measure performance against customers standard not
determined by the company’s quality engineers. However, Nigerian firms that do
not practice Total Quality Management (TQM) might experience internal and
external loss of faith by the organizations senior staffs on each other and low
morale.
Finally, the
ideology of Total Quality Management (TQM), emphasis on the improvement of
product quality and service delivery. Managers improve durability and enhance a
product passes through its lifecycle managers also strive to speed delivery and
improve other services to keep their brands (products) competitive.
1.2 Statement Of The Problem
It is unlikely that all Nigerian firms
will behave so differently towards their clients and customers that they will
survive in a competitive business today, and that they must incorporate that
listening into their strategies planning processes through TQM concepts and strategies.
Customer satisfactions are linked
closely to product and service quality. Therefore, quality improvement programs
normally increase profitability.
The well known profit impact of
marketing studies show a high correlation between relative product quality and
profitability.
Nigerian firms today have no choice but
to adopt TQM. If they want to stay In business, let alone be profitable Quality
is best assurance of customer, strongest defense against competition and the
only path to sustained company growth and earnings.
Aim at defect free: if really is
possible to achieve defect free work most of the time
-
Prevention culture most be created most
poor quality can be avoided through design, structure processes and trained
people.
-
Total by quality approach is essential
-
All business function must be
involved in quality improvement.
-
Quality is free, it pays for
itself.
1.3
Objectives
Of Study
Total Quality Management (TQM) is a
business tool. As such it is about achievement and progress if they are not captured on regular basis, it becomes very difficult
to maintain to the motivation and the desire to achieve higher standards.
This study have the following as some of its objectives:
(i)
To determine whether TQM have effect on
the profitability on an organization.
(ii)
To find out whether the organization has
increase in sales in other to achieve its TQM objectives.
(iii)
To examine whether TQM have effect on an
organizational outputs.
(iv)
To ascertain whether TQM have effect on
return on equity.
(v)
To determine whether TQM have effect on
return on investments in an organization.
NOTE: Many Poor business
performances can be traced back to poor implementation of Total Quality Management (TQM). In many
instances, TQM implementation has lacked strategy focus and was introduced as a
bolt on to unchanged business performance and only be established if they are
implemented.
1.4
Significance
Of Study
Total Quality Management (TQM) requires
considerable survey research, Zikmud 94.
It express the convictions that in order to improve quality, the organization
must regularly conducts survey’s to evaluate quality improvement and
exploration stage during which organizational management makes a commitment on
total quality assurance and business researchers explore the needs and belief
of external and internal customer. Thus, this study is significantly designed
and carried out in order to enlighten products promoters of products about the
importance and relevance of high quality products since it increases sales and
organizational productivity and also to prove that only high quality product
succeed and that this can only be attained through the practice of Total
Quality Management (TQM).
1.5 Research Questions
The following questions constitute some
of the research questions for the study.
(i)
Does TQM have effect on the
profitability of an organization?
(ii)
To what extent does an organization
increase in sales in other to achieve its TQM objectives?
(iii)
Does TQM have effect on an organizations
outputs?
(iv)
To what extent does TQM have effect on
organization return on equity?
(v)
Does TQM have effect on return on
investments in an organization?
1.6
Research
Hypotheses
In order to facilitate this study, the
researches intend to use these hypotheses for the study.
HO:
Total Quality
Management does not have effect on organizational output.
HI: TQM
has effect on organizational output.
HO: There
is no significant relationship between the adoption of TQM strategy and return
on investment in an organization.
HI: There is significant
relationship between the adoption of TQM strategy and return on investment in
an organization.
1.7 Methodology
The methods being used would be based on
primary data and secondary data.
Primary
data involves the things that are seen physically i.e.
Fresh data that taken from interviews, fresh data with the help of
questionnaires that are freshly taken or seen.
Secondary
data involves the help of textbooks from different
authors, journals taken from libraries and the ones extracted from the internet.
And the use of information people used and its being re-used openly and
legally.
1.8 Limitation Of Work
This study is being designed and
structured to cover all aspects of Total
Quality Management (TQM) and its effects on sales of product in an organization,
which would be Cadbury Nigeria Plc, Agindigbi in Ikeja, Lagos State, Nigeria.
1.9 Definition Of Terms
Total: Means
everybody in the organization is involved in the final product or services.
Quality:
This
is often used to signify excellence of a product or service. In some companies
the word may be used to indicate that a pieces of metal conforms to certain
physical dimension characteristics often set down in the form of a particular
tight specification. If we are to define
quality
in a way that is useful in its management, then we must recognize the need to
include in the assessment of quality the true requirement of the customer, the
need and expectations.
Quality
therefore is said to be meeting the customer’s requirement.
Management: This
concept does not have any universally accepted definition; however, there are
two (2) prospective to it. They are:
Firstly,
it can be defined as the efficient and optimum utilization of available
resources (human and material) in order to achieve predetermined objectives. It
entails the performance of certain functions like controlling, coordinating,
staffing, planning, directly etc.
Secondly,
the concept of management refers to certain individuals who are in-charge of
the administration and control of an organization they take charge of policy
formulation and maintenance of the overall affairs to the organization.
There
are three (3) basic levels of management namely:
1. Top Level Management: This level of
management is in charge of formulating the corporate policies of an
organization. E.g. CEO’s of companies.
2. Middle Level Management: This level of
management is in charge of interpreting the corporate policies formulated by
the top level management personnel(s).
3. Low Level Management: This level of management is in charge of
enforcing and implementing the corporate policies of an organization that have
developed and interpreted by both the top and middle level management before
given them to perform. E.g. Head of Depart (H.O.D).
Total
Quality Management (TQM): This is a system approach to
Management that aim to enhance value to customers and clients by designing and
continually improving organizational process and system. We have seen that it
involves the entire organization all the functions including external
organization and suppliers several facts of TQM have been reviewed including:
·
Recognizing customer and discovering
their needs.
·
Setting standards that are consistent
with customers requirement.
·
Controlling process, including systems
and improving their capability.
·
Empowerment of people at all levels in
the organization to act for quality improvement.
Finally, the core of TQM must be the
customer supplier both internally and externally and the fact that at each
interface, there are process which converts inputs to outputs.
Sales:
This
is simply the process of selling goods and services produced to customers.
Product:
This simply refers to nature that a marketer
is selling out to society. The product can either be inform of goods and
services and also be tangible and intangible.
Product
Sales: This simply refers to the process through which an
organization engages in the selling of their goods services to their customers
directly or indirectly.
Furthermore, sales
potentials are qualitative estimates of the maximum possible sales
opportunities present in particular market segments open to a specified company
selling a good or services during a period. The estimate for sales potential
indicates how much period a company could sell it as all the necessary and
desire to sue them.
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