ABSTRACT
The study examined the impact of total quality management on organizational performance. The study was conducted in HyonNoodles Aba, and Master Noodles Aba, Abia State. The specific objectives are to examine the impact of quality control and assurance on the performance of selected manufacturing firms in Aba, Abia State, to determine factors hindering the effective application of total quality management on selected manufacturing firms in Aba, Abia State, to ascertain the relationship between total quality management and performance of selected manufacturing firms in Aba, Abia State, to ascertain the impact of leadership focus on the performance of selected manufacturing firms in Aba, Abia State. The study adopted descriptive survey design and random sampling technique were also adopted. A population of 100 staff of HyonNoddles and Master Noodles Aba, Abia State, Nigeria were used for the study. Taro yamme formula were used determine a sample of 80 from the population. However, 80 questionnaire were distributed to the respondents but 78 were recouped which form the sample data for analysis. Primary data sourced from distribution of questionnaire to staff of HyonNoodles Aba and Master Noodles Aba, Abia State were used for the study. A test-re-test and alpha were conducted to ensure validity and reliability of the data. The questionnaire was designed using 5 point Likert scale and tested using simple regression model (SPSS). The empirical result revealed ineffective leadership, improper employee training, lack of funding and resource, insubordination of employees, lack of management commitment, ineffective planning, competition, low salary and wages, low status and morale, poor quality assurance have negative and significant effect on TQM application in the manufacturing firms, Aba, total quality management has positive and significant effect on the performance of manufacturing firms in Aba, there is a positive and strong relationship between the relationship between total quality management and performance of firm. It was recommended that management of the studied firm should adopt holistic approach of total quality management to enhanced the performance of the Firms.
TABLE OF CONTENTS
Title Page i
Declaration ii
Dedication iii
Certification iv
Acknowledgement v
Table of Content vi
List of Table vii
Abstract viii
CHAPTER 1: INTRODUCTION
1.1 Background of the Study 1
1.2
Statement of Problem 3
1.3 Objectives of the Study 4
1.4 Research Questions 4
1.5 Research Hypotheses 4
1.6 Significance
of the Study 5
1.7 Scope
of the Study 6
1.8
Limitations of the Study 6
1.9 Profile of the Organization under
Study 6
CHAPTER 2: REVIEW OF RELATED LITERATURE
2.1 Conceptual Framework 7
2.1.1 Introduction to total quality management 7
2.1.2.Total quality management 8
2.1.3 Overall total
quality management
practices 9
2.1.4 Strategic quality planning 10
2.1.4.1 Reasons for total
quality management 11
2.1.5 Principles
of total quality management 11
2.1.6 Leadership 13
2.1.7 Knowledge and process management 13
2.1.8 Training 14
2.1.9. Supplier quality management 15
2.1.10 Customer focus 15
2.1.11 Steps to quality improvement 16
2.1.12 Objectives of the quality management 17
2.1.13 Quality criteria
in production forms 17
2.1.14 Relevancies of total quality
management in an organization 18
2.1.15 Factors
that influence total quality management 19
2.1.15.1 Organizational culture and
value 19
2.1.15.2 Managers personal ambitions
and ethical beliefs 19
2.1.15.3 Poor quality planning 19
2.1.15.4 Impatience of the management 20
2.1.15.5 Lack of motivation 20
2.1.16 Ways
of improving total quality management 20
2.1.17 Effective
quality control measure 20
2.1.18 Effective
leadership 20
2.1.18 Effective
commitment to total quality management 21
2.1.19 Quality
policy 21
2.2 Theoretical framework 21
2.2.1
Theories of total quality management 21
2.2.2 Crosby’s
theory 22
2.2.3 Joseph
Juran theory 22
2.3 Empirical review 22
2.4
Summary of literature review 28
2.4.1 Gap in literature 28
CHAPTER 3:
METHODOLOGY
3.1 Research Design 29
3.2
Sources of Data 29
3.2.1 Primary Source 29
3.2.2 Secondary Sources 29
3.3 Population of Study 29
3.4 Sample Size Determination 29
3.5 Sampling Techniques 30
3.6 Description of Research
Instrument 30
3.7 Validity of the Instrument 30
3.8 Reliability of the Instrument 31
3.9. Method of
Data Analysis 31
CHAPTER
4: DATA PRESENTATION AND ANALYSIS
4.1.
Rate of Return Questionnaire distributed to staff of study area 32
4.2.Data Presentation 32
4.3. Testing of Hypothesis 37
4.3. Discussion of Result 44
CHAPTER 5: SUMMARY,
CONCLUSION AND RECOMMENDATIONS
5.1 Summary of Findings 46
5.2. Conclusion 46
5.3 Recommendations 47
5.4 Areas of further Study 47
References
LIST OF
TABLES
Table Page
4.1: Rate
of return questionnaire distributed to staff
of HyonNoddles
Aba and Master Noddles Aba, Abia State
32
4.2: Socioeconomic Characteristics of the
Respondents 32
4.3: Factors hindering the effective application of total quality management
on HyonNoddles Aba and Master Noddles
Aba, State 35
4.4: Impact of quality control and assurance on the
performance of
selected manufacturing firms in Aba,
Abia State 36
4.5: Relationship
between total quality management on the performance
of HyonNoddles Aba and Master Noddles
Aba, Abia State 37
CHAPTER 1
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
The
history of total quality management in business world can be traced to the
mid-1980s. Since 1980, it has been used to resolve problem facing companies and
firms in the country. Total quality management has assisted companies and firms
in the country to enhance customer’s satisfaction and retention in daily basis.
Total quality management is define as strategy used by organization to enhance
organizational product and service renders to customers (Mubaraki, 2016).
It
is also regarded as a combine effort designed by organization to increase
product quality of companies and firms in the country. In this current
competitive market, the demand for quality is emerging as the most single
critical factor for manufacturing companies to survive in the ever-expanding
global market place. In view of the increasing global pressure, customers
demand for superior quality of products and services has also increased
rapidly.
As
a consequence, the global marketplace has become very competitive, as such many
organizations have adopted practices like total quality management (TQM), and
benchmarking in order to satisfy, retain and maintain customers Alvan, Lawal
and Adams, (2015).
Ekweme
and Nkonkwo (2017) opine that the management of manufacturing firms should
adopt total quality management as it generates improved products and services,
satisfies more customers and employees, reduced costs, improved financial
performance, enhances competitive edge, and increases organizational
productivity.
Most
of the organization in Nigeria adopt total quality management to archive high
quality product and enhanced organizational performance, Flynn, Schroeder and
Sakakibara (2014).
Over the years,
total quality management practices have been shown to enhance organizational
performance for both product and service organizations.
As a result total
quality management practice has been developed due to intense important.
Organizations in international trade and faced with global competition have
paid considerable attention to philosophies of total quality management,
procedures, tools and techniques.
According to
Juran (2011), manufacturing firms’ in fierce competition require higher levels
of quality achievement in order to satisfy their customers. The tenets of total
quality management includes continuous product/service improvement, top
management leadership commitment to the goal of customer satisfaction and
retention, employee empowerment, and customer focus.
Total quality
management is defined as constant attainment of customer retention and
satisfaction through an integrated system of tools, techniques and training by
organization.
The important of total quality management cannot overemphasized, some
growing manufacturing organizations use total quality management as a strategic
foundation for generating a competitive advantage and improving firm
performance and customer retention and satisfaction.
One of the major reason total quality management has gained such
prominence is because organizations have known the consequences of poor quality
Ogboro and Obeng, (2010). Furthermore, total quality management practice focus
on a certain set of values and beliefs shared by the organizational members.
The practice of quality management has evolved from being considered as less
price factor on which imperfect competition in the markets is based, to being
considered as a strategic resource of firm
In other words, quality management has gone from being a one-way attribute
of the product to being considered a multi-dimensional construct which has to
be managed and the implementation of which leads to a dynamic capability of
firms (Adam,2015). Total quality management practice provides organisation with
the enable environment necessary for
proper service delivery to
customers in organisation.
In conclusion,
total quality management practice is an organisation-wide long term philosophy
of aimed at improving the quality of the products and services focusing on the
customers’ needs, retention, satisfaction and organizational performance. Hence, this study examine the impact of total
quality management
1.2 STATEMENT OF THE PROBLEM
Although total quality management practice focused on reducing
defects and errors in products and services through the use of measurement,
statistics, and other problem solving tools, organizations began to recognize
that lasting improvement could not be accomplished without significant
attention to the quality of management practices used on a daily basis. It is
therefore a problem when management of some organizations implement total
quality management on an ad hoc basis. They soon realized that this approach
does not generate the much touted benefits of total quality management. In
order words, it is apparent that total quality management must be applied
holistically in order to optimize the benefits of total quality management.
Consequently, the experience of private sectors in implemented
total quality management practice has not always been positive but, failure is
frequently identified as an implementation issue, rather than a failure of the
concept and theory of total quality management practice. Total quality
management practice reflect these concerns by exploring the extent of and
success of implementation, rather than its consequences.
Thus, they argue that most manufacturing firms have been implementing total
quality management practice models without clear evidence on their
effectiveness.
Furthermore,
manufacturing firms tend to lay emphasis on product quantity rather than
quality, and this has always resulted in high level of stock and low turnover
and as such lower profitability. As such, companies have come to realize that
it is more profitable to produce items correctly than to waste resources
producing substandard items that refuse to meet customers’ satisfaction
The
need for this research is necessitated by the fact that some workers in HyonNoddles,
and Master Noodles, Aba are not skilled as a result of lack of training and
development, there is no adherence to requirement, no continuous improvement of
processes, lack of job satisfaction, no periodic evaluation of quality and
product, not understanding the fact that job satisfaction determines
organizational performance. Also, understanding that employees are important
tools to achieving total quality management and organizational performance,
lack of motivation of employees.
Despite the importance of total quality management to organizational
performance in the literature, the topic is not
robust. More attention is paid to other issues such as price, substitute, cost
of materials, etc. In effect, there is a big gap in the existing literature which
this study intends to fill.
With
these problems highlighted, this study choose to research on the impact of
total quality management on organizational performance, a study of selected
manufacturing firms in Aba, Abia State.
1.3 OBJECTIVES OF THE STUDY
The broad objective of the study is
to determine the impact of total quality
management on organizational performance
while the specific objectives are to;
i.
examine the impact of quality control and assurance on the
performance of selected manufacturing firms in Aba, Abia State.
ii.
determine factors
hindering the effective application of
total quality management on selected
manufacturing firms in Aba, Abia State.
iii.
ascertain the
relationship between total quality management and performance of selected manufacturing
firms in Aba, Abia State.
iv.
ascertain the impact of
leadership focus on the performance of selected manufacturing firms in Aba,
Abia State.
1.4 RESEARCH
QUESTIONS
i.
What are the impact of
quality control and assurance on the performance of selected manufacturing
firms in Aba, Abia State.?
ii.
What are the factors
hindering the effective application of total quality management on selected manufacturing firms in Aba, Abia
State.?
iii.
Is there any relationship
between total quality management and performance of selected manufacturing
firms in Aba, Abia State.?
iv.
What are the impact of leadership focus on
the performance of selected manufacturing firms in Aba, Abia State?
1.5
RESEARCH HYPOTHESES
H01: Quality control
and assurance has no significant effect on the performance of selected manufacturing
firms in Aba, Abia State.
H02: Ineffective
leadership, improper employees training, lack of funding and resources,
insubordinate of employees, lack of management commitment, ineffective
planning, competition, low salary and wages, low status and morale and poor
quality assurance have no significant
effect on total quality management of manufacturing firms in Aba, Abia State.
H03: There is no significant relationship
between total quality management and performance of selected manufacturing
firms in Aba, Abia State.
H04: Leadership management has no significant effect on the
performance of selected manufacturing firms in Aba, Abia State
1.6 SIGNIFICANCE OF THE STUDY
The
study evaluates the impact of total quality management on organizational
performance. This study will enable the management of
HyonNoodles and Master Noodles, Aba Abia State and other companies to identify
key constraints militating against total quality management practices which
could be addressed to bring improvement in consumer satisfaction and also
increase organizational performance. The study will also help management of the
firms to identify ineffective total quality management practices that exist in
the company and how to remedy these ineffective practices. This will enable
management to come out with strategies which will help improve quality
performance and eventually lead to meeting standards at both the domestic and
foreign fronts thereby leading to customer satisfaction.
The findings and recommendations of the study will throw more
light on total quality management practices as a determining factor for quality
performance and organizational performance as a whole. The research will again,
give impetus to the quest for growth and development by enabling management to
chart a course for growth and development by eliminating the bottlenecks in
their endeavours.
Furthermore, the findings and recommendation will help
policy maker in HyonNoddles and Master Noodles, Aba in area of policy
formulations and implementation as regard to total quality management practice
that will spiked their productivity level of the organization.
To education,
the study will contribute to already existing knowledge on the effect of total
quality management on consumer satisfaction and retention in Nigeria. Finally,
it will go a long way in helping future researches and student who have
interest in studying total quality management on consumer satisfaction, so as
to increase productivity level and to those in academics and business
management researchers, the study will serve as a springboard for further
investigations.
1.7 SCOPE
OF THE STUDY
The study is on the impact of total
quality management on organizational performance. The scope of the study is
limited to selected manufacturing firms in Aba, Abia State. The unit scope is on the employee of selected
manufacturing firms in Aba, Abia State. The content scope is to examine the
relationship between total quality management and customers, it will also
explore factors hindering the effective
application of total quality management
on selected manufacturing firms in Aba, Abia State and to determine the
impact of total quality management on
the performance of selected manufacturing firms in Aba, Abia State?
1.8
LIMITATIONS OF THE STUDY
While carrying out this research, the
researcher encounter the following problems, one
of such was difference form of result
experience form past studies and
gathering of data from the respondents. The project work is also limited by
data constraint as the researcher could not get access to secondary data .In
essence, the work had to rely on primary data generated through the
administration of questionnaire that was issued to staff of
selected manufacturing firms in Aba, Abia
State.
1.9
PROFILE OF THE ORGANIZATION UNDER
STUDY
a.
Master Noodles
Master noodles was first produced in the 1970's with
the classic Chicken Flavoured Noodles. In 1983, Indomie Mi Goreng was
introduced and has since become a favourite. Master noodles s now a household
brand name that everybody loves and has grown up with and has become part of
their staple food. Master noodles is available in 80 countries around the world
including Australia, America, The Netherlands, Germany, Hong Kong, China,
Dubai, Nigeria, and many more.
Master noodles comes in many different varieties, the
most popular is Mi Goreng. It literally means Fried Noodles, but without all
the fuss. It’s ready in an instant for your convenience. Simply cook the
noodles, drain and then add all the seasonings in. Master noodles has since
launched a Mi Goreng range including Barbeque Chicken, Satay, Hot & Spicy
and Rendang Spicy Beef. Master noodles also has a classic flavour, the Special
Chicken, which is best eaten with broth. Whichever Master noodles flavour you
feel like, give them a go and we hope that Master nodded will become your
favourite noodles too.
In 1988 Master noodles was introduced in Nigeria
through import, and in 1995 open its first production factory in Nigeria under
Dufil Prima Foods. Dufil, a joint venture between Salim Group, the Indonesian
conglomerate that owns the Master nodded brand, and Tolaram Group of Singapore,
struggled in its early years. It is the first instant noodles manufacturing
plant in Nigeria and the largest in Africa. Master noodles has grown to become
a household name across the country. Master noodles is produced in Nigeria
since 1995 where it is a popular brand and has the largest instant noodle
manufacturing plant in Africa. Since 2003,
MISSION OF MASTER
NOODLES
·
To continuously innovate, focusing, on
consumer’s need, delivering great brands with unparalleled performance.
·
To deliver quality products which are loved
by consumers
·
To continuously improve our people,
processes and technologies.
·
To contribute to the welfare of the society
and environment in a sustainable manner.
·
To continuously improve stakeholder’s value.
VISION OF MASTER
NOODLES
The leading consumer goods company.
b.
Hyon noodles.
Hyonnoddles is a food industry
focused on bringing the best and healthiest food to you. Their products include
soy milk, iodized salt, wheat flour, tooth paste, magerine, baby diapers and
tablet soap. The company came into being in 2005 with Chief Ogo Emenike as the
Managing Director and Mr. Chijioke Anumoka as the General Manager. The offices
are in many states in Nigeria with the Headquarters at kilometer 13 Aba Ikot
Ekpene road Aba.
The mission statement of the
Hyonnoddles is to supply high quality affordable consumable products to
everyone while their vision statement is to be a nationally renowned
diversified conglomerate.
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