ABSTRACT
This study examined “IMPACT OF TQM ON THE PERFORMANCES OF AN
ORGANISATION,” 30 questionnaires were administered to the workers of Coca Cola
Nigeria Plc, using chi-square to test the research hypothesis. The findings
revealed that quality control increases product development. It was therefore
recommended that all manufacturing industries should adapt to the basic and
techniques of TQM for them to be able to attained their functional objectives. During
the course of findings, it was revealed that product quality is one crucial
driver of customer loyalty and there is a significant relationship between the
quality terms of durability, reparability and other features and loyalty of its
users. Conclusively it was deduced that
product quality is a strong factor that lead to brand loyalty when customers
judged the product has having very high or high quality in the Coca Cola Nigeria Plc.
TABLE OF CONTENT
Pages
Title Page 1
Abstract 2
Table of Content 3
CHAPTER ONE: INTRODUCTION
1.1 Background of Study 5
1.2 Statement of the Problem 8
1.3 Aims and Objectives of the Study 9
1.4 Research Questions 9
1.5 Research Hypothesis 10
1.6 Scope of the Study 11
1.7 Limitations of the Study 12
1.8 Significance of the Study 12
1.9 Definitions of Terms 13
CHAPTER TWO: LITERATURE
REVIEW
2.0 Introduction 15
2.1 Theoretical and Conceptual Framework 15
2.2 Brief History of Total Quality Management 17
2.3 History of Shell 25
CHAPTER THREE: RESEARCH
METHODOLOGY
3.1 Introduction 28
3.2 Populations of the Study 28
3.3 Research Instrument 28
3.4 Data Analysis 29
3.5 Problems of Data Collection 29
CHAPTER FOUR: DATA ANALYSIS
AND REPRESENTATION
4.1 Introduction 31
4.2 Respondent Characteristics and Classification 31
4.3 Test of Hypothesis 45
CHAPTER FIVE: SUMMARY, CONCLUSIONS
AND RECOMMENDATIONS
5.1 Introduction 49
5.2 Summary of Findings 49
5.3 Conclusions 49
5.4 Recommendations 50
5.5 Suggestions and Findings 51
References 52
Questionnaire 53
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND
OF THE STUDY
Edwards (2010) describe
Total Quality Management (TQM) as a management tool in which its basis is to
reduce the errors produced during the manufacturing or service process,
increases the customer satisfaction, streamline supply chain management and aim
for modernization of equipment and ensure that workers have the highest level
of training.
Olamade (2000) describes
that one of the principal aims of TQM is to limit errors to the barest minimum
during production of a production and service and that TQM is often associated
with the development, deployment and maintenance of organizational systems that
are required for various business processes.
Total quality management
(TQM) has been acknowledged as an important subject in management theory and
practice during the last decades. The use of TQM among many, western
organizations has been relatively high during the 1990s, see for example,
Lawler et al. (2011). However, the relationship between TQM practices and
improved financial performance is discussed frequently in the TQM literature.
Results have been published, which argue that TQM investments result in an
improved financial performance, see, for instance, Shetty (2003), Hendricks and
Singhal (2007), Easton and Jarrell (2008), Handsfield et al. (2008), Samson and
Terziovski (2009), Reed et al. (2000), Allen and Kilmann (2001), Tena et al.
(2001) and Wroistad and Krueger (2001). Bergquist and Ramsing (2009) argue, on
the other hand, that it is difficult to establish a relationship between TQM
and the performance of the company. Results have also been published, presenting
a more negative picture of TQM implementation benefits. Eskildson (2004)
states, based on survey results, that many organizations do not succeed with
their TQM efforts. The two main reasons are here argued to be vague definitions
of TQM and inappropriate implementation. Also, Harari (2003) argues, based on
own experience, that TQM programs are ineffective, and that at best one third
of the TQM programs have achieved significant improvements.
The differentiation among
research conducted, to outline financial benefits of TQM implementation, imply
that the area needs further investigation. The approaches used to determine the
benefits of TQM programs, and to find a relationship between TQM and the
financial performance, also differ between the different studies. One approach
to measure the effects of TQM investment on financial performance is to compare
companies that have received a quality award against companies that have not
received any quality award, see, for example, Hendricks and Singhal (2007). These
two researchers use American companies in order to measure the effects of
successful TQM implementations on financial performance. The approach to study
the performance development of quality award recipients has not been used,
according to extensive literature, on Swedish quality award recipients. Such a
study would be a complement to earlier studies, also considering the facts that
Sweden and the USA have different company cultures and that the award models
are somewhat different.
As many still argue whether
TQM programs are profitable, the purpose of this study is to form an opinion if
companies in Nigeria that successfully have implemented TQM have better
performance development than median branch indices and their stated
competitors.
1.2 STATEMENT OF THE PROBLEM
Although there are many
success stories of TQM implementation and its benefits, the real impact of TQM
cannot be disregarded (Crosby, 1979; Juran, 1988; FQI, 1990,1991; Number of and
Abrams, 1994; Rarnberg, 1994; Hill and Wilkinson, 1995 Mann and Kehoe, 1995;
Ross, 1999; Evan and Lindsay, 2001). A number of failures have also been
reported (e.g. Eskildson, 1995a; Harari, 1993), for example, Eskildson (1995)
argues that TQM does not provide either a cure-all nor is it a single key to
organizational success. He provides several examples one of which was the
bankruptcy of the Wallace Company (one of the winners of the MBNQA) after
receiving an award. The bankruptcy of the MBNQA winner to the unsustainable
loss resulted from the high spending on quality (Hill, 1993). Therefore, the
collapse of the company may indicate an ineffectiveness of the management
system.
So also TQM implementation
requires radical change to traditional management practices. For instance,
traditional management paradigm stresses authorisationism. Therefore, even
though managers may support the principle of employee participation and input,
they are uneasy about giving up their authority (McConnell, 1995). The
development of an effective work team may be problematic in organizational
cultures where human resource systems emphasise individual performance reviews
and compensation (Weidman, 1993). Despite the criticism, neither academics nor
practitioners dispute the fact that the quality movement has been the most
influential of all
1.3 AIMS AND OBJECTIVES OF THE STUDY
The aims and objectives of
the study are as follows:
-
To determine whether innovation has effect on productivity
-
To determine whether quality control has effect on product
development.
-
To evaluate whether scope of work has effect on customer
satisfaction.
1.4 RESEARCH QUESTIONS
·
The research questions for the study are as follows;
·
Does productivity has effect on new innovation?
·
What is the effect of quality control on product development?
·
Does scope of work has effect on customer satisfaction?
1.5 RESEARCH HYPOTHESIS
Three research
hypotheses are to be carried out during the course of study which is as
follows;
1.
Null hypothesis (HO)
Productivity does not have effect on new innovation.
Alternative Hypothesis (H1)
Productivity has effect on new innovation.
2.
Null Hypothesis (HO)
Quality control
does not enhance product development.
Alternative Hypothesis (H1)
Quality control
enhances product development.
3. Null Hypothesis
(H0)
Scope of work does not
increases customer satisfaction.
Alternative Hypothesis (H1)
Scope of work
does help to increases customer satisfaction.
1.6 SCOPE OF THE STUDY
This study was carried out
in various sub-departments in top quality management department located at
Marina, Lagos with their various top quality managers, customer’s managers and
their management team.
Every organizations and
manufacturing company cannot do without employing the efficient techniques and
approaches of total quality management, thus that TQM helps the organization in
achieving their basic and corporate goals and objectives. The approaches of TQM
meets not only consumers specification but other quality and functionality
expectation in terms of weight, reliability, size, maintainability and
operating cost effectiveness, moreover its approaches is to reduce errors
produced during the manufacturing processes increases productivity, improve
customers satisfaction enhances profitability and increases sales turnover.
As we have observed
according to Edwards W. (1990) TQM enhances performance superiority and
continuous improvement of quality of products and services.
1.7 LIMITATION OF THE STUDY
A need for Total Quality
Management (TQM) normally arises where there is a marked deviation from the
actual quality performance and standard.
Therefore some of the
constraints engaged in the course of the research work are financial
constraints, lack of data on the use of Total Quality Management (TQM)
techniques, unwillingness of the respondents to complete questionnaire logically
and inability of the respondents to return questionnaire on time duly
completed.
1.8 SIGNIFICANCE OF THE STUDY
A need for Total Quality
Management (TQM) normally arises where there is a marked deviation from the
actual Quality performance and standard. The need for the study is to ensure
that errors are limited with an organization in order to render a quality
services to the customers and a society at large; ensure that consumers
specification and functional requirements expectation are met; to maintain
operating cost efficiently and to reduce the errors are limited with an
organization in order to render a quality services to the customers and a
society at large; ensure that consumers specification and functional
requirements expectation are met; to maintain operating cost efficiently and to
reduce the errors produced during manufacturing and modernization of equipments
to ensure workers have the highest level of training.
1.9 DEFINITION OF TERMS
TQM (Total Quality
Management): This is a management technique to reduce the errors produced
during the manufacturing or service process thus deals with quality prevention
and correction.
Organizational performance:
This is a rapid change in an organization to achieve the basic goals and
objective such as customer’s satisfaction, productivity, sales turnover,
profitability etc
Quality: This deals with
character and attribute of a product and service that makes the product or
service: different form each other,
Risk: This refers to as a
degree of uncertainty from a specific outcome
Productivity: This refers to
as the improvement in the level of production.
Cost: This refers to the
amount of money needed to produce a product thus price to be paid. It can also
be describe as something of value.
Profitability: This is the
ability of a company to earn a profit it result the final result of business
organization
Customers’ satisfaction:
this refers to as a degree to which customers expectations of a service or
product
Innovations” This can be
describe as an incremental emergent or radical and revolutionary charges in
thinking product process or organization
Sales turnover: This can be
describe as a total amount sold within a specified period usually a year
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