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TRANSCRIPT
Odimba Rita
Digitally Signed by: Content manager’s
DN : CN = Weabmaster’s name
O= University of Nigeria, Nsukka
OU = Innovation Centre
The Role of Total Quality Management (TQM) in the
Performance of Poultry Farms in Enugu State, Nigeria
Faculty of Business Administration
Department of Management
Nwonye Chibueze
PG/MBA/11/60374
i
: Content manager’s Name
Weabmaster’s name
a, Nsukka
The Role of Total Quality Management (TQM) in the
n Enugu State, Nigeria
Business Administration
Management
PG/MBA/11/60374
ii
TITLE
The Role of Total Quality Management (TQM) in the
Performance of Poultry Farms in Enugu State, Nigeria
By
Nwonye Chibueze
PG/MBA/11/60374
Being a Project Presented in
Partial Fulfillment of the Requirements for the
Award of Master of Business Administration (MBA)
In the Department of Management
Faculty of Business Administration
University of Nigeria
Enugu Campus
Supervisor: DR AGBAEZE, E.K
September, 2013
1
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Most Industries/Organizations are facing the kind of challenges
that was not envisaged a few years ago. The competitive environment
has become Global; organizations now have to compete with goods
and services from all over the world and satisfy a more educated and
sophisticated customer base (Nosakhare, 2000:10). What is
satisfactory to the customers today may not be regarded as such
tomorrow as their expectations are continuously changing. Some of
this could be attributed to the consistent breakthrough in science and
technology over the last couple of decades which has led to more
products innovations and consequently high rate of product turn-over.
Information dissemination and management have also been affected
by the overwhelming technological brake through, as things earlier
thought impossible now look ordinary. Communication and
information technology have really transformed the way businesses
are done. These continual wave of technological and environmental
change have turned several organizations into bystanders on the road
to the future, and have made their structures, processes and skills
become progressively less attuned to the ever-changing realities of the
demands and expectations of present day customers. Competition
2
therefore has become one of the most important factors in running a
business in the world economy today (Akinola, 2009:182).
For almost every product or service designed, there are more
than one organization trying to make a sale of similar products and
services. This fierce competitive environment has made
manufacturers to step up their game by trying to reduce their cost of
production and consequently bring down the price of their products.
Price is, of course, one of the major issues in whether a sale is made
or lost. If the cost of production of goods or services results in high
prices, a firm may not be competitive. However, nowadays most
customers are considering other factors before buying a product, one
of these is quality. In fact, a reputation for producing quality products
is becoming a major marketing issue.
Quality has become a concern for most industries;
manufacturing, banking, health care, the service industry.
Nevertheless, quality can be a confusing concept, partly because
people view quality in relation to differing criteria based on their
individual roles in the production- marketing chain. Quality may be
defined as the characteristics of a product or service that bears on its
ability to satisfy the stated and implied needs. Quality obviously has
many different aspects, for instance a restaurant’s customers, base
their perspective of its quality on the taste of the food, the
3
attractiveness of the décor friendliness and promptness of the waiters,
etc (Longenecker, et al, 2003). Although the assessment of quality
stated above is a very good one, it might not apply in other industries.
Observations have shown that the meaning of quality has evolved as
the quality profession has grown and matured. Neither consultants nor
business professionals agree on a universal definition.
A couple of years ago a study was conducted that asked
managers of 86 firms in the eastern United States to define quality;
several dozen of different responses such as: perfection, consistency,
eliminating waste, speed of delivery, compliance with policies and
procedures, providing a good usable product, doing it right the first
time, delighting or pleasing customers, and total customer service and
satisfaction were obtained (Tamini and Sebastianelli, 1996: 34-39).
Thus, it is important to understand the various perspectives from
which quality is viewed in order to fully appreciate the role it plays in
the many parts of a business organization (Seawright and Young,
1996:107). Consequently, quality could also be defined based on
some of the following perspectives:
• Judgemental Criteria – This is a common notion of quality, often
used by consumers, is that it is synonymous with superiority or
excellence.
4
• Product- Based Criteria- This defines quality as a function of a
specific, measurable variable and that difference in quality reflect
differences in quantity of some product attribute, such as in the
number of stitches per inch on a shirt.
• User- Based Criteria – Here definition of quality is based on the
presumption that it is determined by what a customer wants.
Individuals have different wants and needs and, hence, different
quality standards.
• Value- Based criteria – This criteria sees quality to be based on
value; that is, the relationship of usefulness or satisfaction to price.
• Manufacturing- Based Criteria defined quality as the desirable
outcome of engineering and manufacturing practice, or
conformance to specifications.
The diversity of the definitions of quality can be explained by
examining the eight principal quality dimensions defined by Garvin
(1984) which are: performance, features, reliability, conformance,
durability, serviceability, aesthetics, and perceived quality.
However, the official definitions of quality terminology were
standardized in 1978 by the American National Standards Institute
[ANSI) and the American Society for Quality (ASQ) (ANSI/ASQC
A3 (1978). They defined quality (Customer- Driven Quality) as the
totality of features and characteristics of a product or service that
5
bears on its ability to satisfy given needs. This definition draws
heavily on the product- and user-based approaches and is driven by
the need to contribute value to customers and thus to influence
satisfaction and preference (Evans and Lindsay, 1999: 10-15).
Although cost and other considerations cannot be ignored, quality
remains a primary focus of a firm’s operations (Longenecker, et al.,
2003).
Total quality management (TQM) therefore is the commonly
used term for stressing quality within an organization. TQM uses a
systems perspective because it is not a program for one department,
but a responsibility of everyone in the organization. To keep quality
at the desirable levels, all firms employ the concept of quality control.
Quality control (QC) is important not just in the production or
transformation process, but earlier at the design stage and later at the
service stage as well. One of the major roles of the operations
manager is to make sure his or her firm can deliver a quality product
to the right place at the right time at the right price (Heizer and
Render, 199 1:734). Total quality management (TQM) is therefore a
process that involves everyone in the organization focusing on the
customer to continually improve product value. It is the philosophy of
meeting and exceeding customer expectations through a systematic
process that involves both associates and managers at all levels
6
assuming responsibility for continuous improvement in the firm’s
day-to-day merchandising and operating activities. It is a set of tools
and techniques designed to improve a firm’s effectiveness and
efficiency (Lewison, 1997: 241).
Over the previous three decades, the concept of quality has
grown rapidly starting with the descriptions of the quality
management gurus Crosby, Deming, Juran, Feigenbaum, Taguchi,
Ishikawa, Groocock, and others. However, the discipline of TQM has
been witnessing significant contributions in terms of theory
development from many researchers. In spite of the huge amount of
research conducted, TQM is still in the early stages of theory
development (Dale et al., 2001], consequently, there has been a global
attention being given to establish models and quality awards
throughout the world.
As we mentioned earlier, customers are increasingly
demanding high quality products at low prices (Nosakhare, 2000:11).
Considering these uncertain, competitive, and ever-changing and
challenging business environments, companies are required, as never
before, to adopt productive management practices and set competitive
priorities (cost, quality, time and flexibility) to support the demands
of the markets (Krajewski and Ritzman, 1993:47). The poultry
industry like other industries is not left behind in the battle to meet
7
the demands of consumers. In other words, they are required to face a
global business challenges, uncertain environment, critical customers
with high quality service demands (Al-Man sour, 2007). Therefore,
farms, like other organization have been urged to adopt innovative
strategies to ensure its survival and business growth. Consequently,
many farms have adopted the concept of continuous improvement as
a fundamental business strategy, realizing that organizations can
afford to be competitive if it does not continuously improve on its
products/services, processes and people (Nosakhare, 2000:11).
Many researchers and practitioners advocate the positive effect
of TQM practices on organizational efficiency and effectiveness. In
this study we shall attempt to explore the impact of the adoption of
TQM practices on the effectiveness and efficiency of poultry
production, Since the implementation of TQM as mentioned earlier is
a cost added value new managerial concept, no doubt it creates a
suspicion pole for any firm aims to implement this management
paradigm. Therefore a clear distinction between the value added from
TQM implementation and corresponding cost value must be clearly
clarified. The added value of implementation of TQM in the study is
investigated through the impact of adoption of TQM practices on
effectiveness and efficiency.
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1.2 STATEMENT OF PROBLEM
The present day reality has rendered conventional methods of
products/service delivery obsolete. Competition has become so high
in all fronts that for survival organizations will have to be operating at
a high performance. In the words of John Young, President of
Hewlett-Packard: “In order to compete in a global economy, our
products, systems and services must be of a higher quality than our
competition. Increasing Total Quality is our number one priority here
at Hewlett-Packard” (Nosakhare, 2001:12). Nowadays, increased
expectation and demands on the part of customers in every area of
organizational life have taken the centre stage. The rule of the game
today in all industry segments is continuous improvement of
processes, systems and skills. With these in mind, the question
therefore is what is the level of awareness among organizations in
Nigeria on the reinvention requirements to meet up with the needs of
the current business environment?
As mentioned earlier, quality has become a critical factor in
production, however, quality improvement and service delivery is still
seen by many organizations today, not as a way of survival but as
optional extras, this is a common trend in Nigeria. It is therefore
crucial to investigate how the application of Total Quality
9
Management in the Poultry Industry facilitates meeting the demands
of the customers.
The Agricultural sector has been identified as a critical sector
for National development, to this end the Government has been trying
to implement policies to improve Agric production in the country.
Consequently, many Government policies have been enacted that are
aimed toward boosting the sector. The poultry industry as we know is
a major sub- sector in the Agric sector. However our aims might not
be achieve if the right operational practices are not implemented.
Therefore bearing in mind the importance of the poultry industry it is
therefore pertinent to investigate if and how TQM can improve
organizational effectiveness and efficiency, thus organizational
performance.
With the current set-up of democratic cultures and ideals, our
economy will definitely open up to international investment Already,
Nigeria is a signatory to the Trade Agreement under the World Trade
Organization. This agreement has some clauses touching on quality.
For instance, organizations without ISO 9000 series certification will
very soon not be able to export their products to some countries,
especially to Europe and Asia. There is going to be increased foreign
participation in the economy. With this trend, farmers should be
prepared to produce products that will compete at the international
10
stage. There is already a growing incidence of dumping of cheaper
products especially from the Asian countries in the country. The
question therefore is; can successful implementation of Total Quality
Management (TQM) assist farms in Nigeria to position themselves
for the challenges ahead?
1.3 OBJECTIVES OF THE STUDY
The specific objectives of the study include the following:
(1) To examine the effect of Total Quality Management (TQM) on
cost reduction at Phinomar farms Ltd.
(2) To examine the effect of TQM on goal attainment at Phinomar
farms Ltd.
(3) To find out the relationship between TQM and employees’
productivity at Phinomar farms Ltd.
1.4 RESEARCH QUESTIONS
Given the objectives, the study sought to answer the following
questions.
(1) o what extent does Total Quality Management (TQM) affect
cost reduction at Phinomar farms Ltd?
(2) To what extent does TQM affect goal attainment at Phinomar
farms Ltd?
11
(3) o what extent does TQM relate to employees’ productivity at
Phinomar farm Ltd?
1.5 ESEARCH HYPOTHESES
In view of the research questions, the following hypotheses were
formulated to be tested.
(1) There is a significant effect of Total Quality Management
(TQM) on cost reduction at Phinomar farms Ltd.
(2) There is a significant positive effect of TQM on goal
attainment at Phinomar farms Ltd.
(3) There is a positive relationship between TQM and employees’
productivity at Phinomar farms Ltd
1.6 SIGNIFICANCE OF STUDY
The study will be beneficial in the following ways.
1. Management: the management will learn better ways of
making TQM work in the farm.
2. Other stakeholders: other stakeholders will understand how
TQM implementation works.
3. Researchers: the findings will serve as a bases and framework
for future researchers to carry out further studies
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1.7 SCOPE OF THE STUDY
For the purpose of this research work on Total Quality
Management, our investigations as earlier mentioned was on the
poultry Industry while using Phinomar Farms Ltd as focal
organization. The study was carried out 2012- 2013.
1.8 LIMITATIONS OF THE STUDY
Significant among the factors that hindered smooth conduct of
this study include:
1. Time: The time available for the completion of this work was
inadequate.
However, the researcher overcame these hurdles and
completed the work.
2. Fund: Inadequate funding particularly hinders the expansion of
this work to accommodate more number of poultry farms.
3. Attitude of the Respondents: Most of the managers find it
difficult giving out information that they consider secret and
this affect researchers. However, the researcher employed
persuasion strategy to overcome this challenge.
4. The structured nature of the questionnaire items: The
structured nature of the questionnaire may allow people to give
13
answers that they may not agree with. However, this was
minimized by the use of open-ended oral interview.
5 The study was also affected by inability of the researcher to
draw conclusion outside the environment-Enugu.
1.9 HISTORIC BACKGROUND OF PHINOMAR FARMS
Fully incorporated in May, 1979, Phinomar Nigeria Limited is
wholly owned by the Ayalogu family, with His Royal Highness, Igwe
I.O.U Ayaolgu as the Chairman and Chief Executive.
It has its Corporate Headquarter located east of the River Niger
at Ngwo, about eight (8) kilometers Northeast of Enugu, the capital
city of Enugu State.
The Igwe (Esaa of Ngwo Assa) started what is known today as
Phinomar Nigeria Limited with a small mud oven or bakery, and
twelve (12) birds as a hobby in 1964. Through the advice of a British
salesman and friend, he was able to increase his stake in both
businesses, but became more pronounced in the poultry area.
The Royal father took so much interest in his poultry business
that he was keeping well over two thousand (2000) laying birds
before the Nigeria civil war broke out in 1967. After the war,
everything was vandalized except the bakery, from where he
managed until the reestablishment of the poultry farm.
14
Before 1977, the Old Farm near Girls’ Secondary School, Ngwo had
reached its initial full capacity of fifteen thousand (15,000) layers
with only little space left at the site. He then took the bold decision of
expanding into his then cashew plantation now known as the New
Farm.
Ever since the opening of the two hundred and fifty thousand
(250,000) birds capacity farm in 1978, the pace of development has
never been the same again. This actually informed the incorporation
of the business in May, 1979. It has the Royal Father, his wife and
four of his sons as the Directors of the Company. Today, this capacity
target had since been met and further expansion programmes already
being targeted.
Fortunately, the sons who stakes in the business studied courses
that are most relevant to the business. This obvious advantage has
helped immensely in steadily setting the Company on the fast lane of
growth. That also explains the gradual replacement of the manual
systems in the farm with the electronically automated cage systems.
This, and the up-to-date management techniques employed by its
seasoned operatives has greatly and positively affected the growth
rate of the system.
Today, through determination and hard work, what is known as
Phinomar Nigeria Limited has grown into a group of independent
15
companies, duly registered by the Corporate Affairs Commission.
They are:
1 Phinomar Nigeria Limited
Prior to the formal incorporation of other sister companies in
March, 2007, this used to be the umbrella organization. Presently,
it has the following divisions:
i. Poultry Farm Division
This division houses and takes care of about 180,000 laying
birds, and about 90,000 pullets under full utilization. It services
the table egg and chicken needs of a good percentage of
Nigerians.
ii. Milling & Foods Division
This is the soya seeds processing and extraction unit. Products
like crude soya oil, full fat soya, soya meal, etc are the pride of
this division. It services the internal requirements of the Poultry
Division and that of users scattered in several parts of Nigeria.
iii. Anuka Multi - Purpose Farm Division
As the name implies, this is a mechanized multi-purpose crop
farm. It produces yam, cassava, palm products, maize, garri
processing, etc, in commercial quantities.
16
iv. Ugwuomu Farms Division
This is a near replica of Anuka Multi-purpose Farm, except that
this division is more into fisheries, piggery, vegetables and
plantain productions. They satisfy the food needs of the
surrounding local markets.
v. Quality Control Laboratory Unit
Housed within the main factory premises, this laboratory is
well equipped with materials and human expertise to handle
several types of laboratory tests that can meet the test of time
anywhere and any day. In addition to satisfying the laboratory
requirements of the Company, it also offers commercial
laboratory services to desiring clients.
vi. Fishery Division
Having at different times secured the services of consultants in
fishery management and having had some people from the
personnel pool trained in this field, the Company went ahead
and established an ultra modern fish pond with a capacity of
not less than 30 tons of table fish biannually.
Though presently at its experimental stage, there is no doubt
that within a short space of time, this division shall be placing
fresh fish on the tables of many Nigerians.
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vii. Service Department
This constitutes the coordinating department that oversees
the day-to-day routine activities of the Company. It
includes; General Administration, Accounts, Audit,
Transport, Engineering, Security Departments, etc.
2 Wheels and Spindles Limited
Established in 1990 under the canopy of the parent Company-
Phinomar, this outfit was primarily meant to be providing
engineering support services to the parent organization, and
also to be offering specialized engineering services to the
public on commercial basis.
Situated along the Old Nsukka road at 9th Mile Corner, Ngwo,
the above arrangement continued till March, 2007 when the
plant was incorporated as a limited liability company and
possessing an independent status.
As much as expertise and research could presently contain, the
plant offers the following series to its clients:
• Machine Component Spare Parts
• Moulds of Different Shapes
• Vulcanized Rubber Products
• Fabrication and Welding Works
18
• Pattern Making
• Casting of Forus and Non-Forus Products, etc
3 Upland Poultry Limited (UPL)
This is an ultra modern 60,000 capacity mechanized outfit for
the brooding of broiler products. Became operational from
May, 2006 under the umbrella of Goodwill Poultry Farm
(GPF), the project was equally incorporated as a limited
Liability Company in March, 2007.
Supported by three giant functional cold rooms, they process
whole broilers and their parts for its teaming distributors who
in turn market them at different parts of the Country.
4 Phinomar Foods Limited (PFL)
An offshoot from the Milling & Foods Division of Phinomar
Nigeria Limited, this outfit went into experimental stage in
1991 following years of research by the laboratory unit
And so, at the 1992 Enugu International Trade Fair, its first
product, SOY POPS (a breakfast cereal for adults and children)
was launched into the market. This was subsequently followed
by the introduction of other children’s delight-SOY CHIPS.
Since then, researches have brought about continuous
improvement of these product lines which has now became
household names in this part of the country.
19
Having been categorized and brought under the watchful eyes
of NAFDAC, the products were given a pass mark, and therefore got
registered on 4th February, 2003.
The wind of independence also blew across them, and in
March, 2007, they got registered as a Limited Liability Company with
full independent status accordingly extended unto them.
Meanwhile, the Milling & Foods Division of the Company has
brought succor to the local poultry farmers who now use the protein
rich soya bean products (soya meal and full fat soya) to formulate
animal feeds. So also is the extremely rich crude soya oil being
bought from different commercial cities of the country by vegetable
oil refineries with a view to refining them for human consumption, or
for other purposes.
Interestingly, certain machineries are being set in motion for
the purpose of creating an enabling environment for the exportation
of some of the soya beans products to interested foreign buyers.
Also in the pipeline is a plan by the Company to complete the
already started importation of refining plant for soya oil. When that is
done, the country’s local vegetable oil needs would be considerably
satisfied, and the excess exported to other countries of the world.
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Personnel
In addition to several hundreds of utility workers in its employ,
the Group has permanent staff strength of about 456, excluding the
six (6) Directors. This however includes the twenty one (21)
Management staff and professionals who are experts in their chosen
fields of study, and about fifty eight [58) Technical staff that are
responsible for the different sophisticated equipment
On the whole, discipline, honesty and general commitment to work,
and above all, fear of God almighty has remained the secret of our
success.
Membership of Professional Bodies
1. Member, Nigeria Export Promotion Council (NEPC)
2. Member, Manufacturers Association of Nigeria (MAN)
3. Member, Enugu State Chamber of Commerce, Industries,
Mines And Agriculture (ECCIMA)
4. Member and National Secretary, Poultry Association of Nigeria
(PAN)
Merit Awards
1. First Bank of Nigeria’s ‘BEST FARMER OF THE YEAR
AWARD’ in Eastern Region of Nigeria — 1989
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2. Nigeria Union of Journalists Society Service Award for
Phinomar’s Contributions to ‘FOODS PRODUCTION AND
AGRICULTURAL DEVELOPMENT’ - September, 1991.
3. First Bank of Nigeria’s Centenary Celebration for
‘RECOGNITION OF YEARS PATRONAGE AND
ROYALTY’- 1995.
4. Nigeria Television Authority (NTA) Enugu Merit Award for
‘Excellence in Agricultural development’ — December, 1997.
5. Animal Science Association of Nigeria (ASAN) Industrial
Merit Award for ‘OUTSTANDING CONTRIBUTION TO
THE DEVELOPMENT OF THE NIGERIAN LIVESTOCK
INDUSTRY - September 2000, etc.
22
CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
2.1 HISTORICAL BACKGROUND
The evolution of Total Quality Management concept can be
traced back to the early 1902 when companies in the western world
were engulfed in fierce competition with their Japanese counterparts
who were landing arid selling quality products at prices lower than
what it costs the American and European to produce. The secret that
was discovered laid in quality, since this discovery, every serious
organization and nation has been joining the quality term.
Christopher (1994:23) asserts that TQM is among the new
techniques which modern organizations employ with very good result
to secure and keep their customers satisfied. It is therefore a way of
managing to improve the effectiveness, efficiency, flexibility and
competitiveness of a business as a whole.
Quality Management embraces a lot of procedural and
systematic activities starting from the state of raw materials to point
of selling the finished products of an organization. According to
Martins and Starr, (1998), Quality management can be described as
activities geared towards maintenance of agreed upon set of standards
and specifications. The dimensions of the quality expressed therefore
can be measurable by associating the products with a specific
23
functional class of users, based essentially on the agreed standards.
However in getting standards, a lot of elements must have been put
into consideration.
Total Quality Management (TQM) has evolved from the
quality assurance methods that were first developed around the time
of First World War. The war effort led to large scale manufacturing
efforts that often produced poor quality. To help correct this, quality
inspectors were introduced on the production line, to ensure that the
level of failures due to quality was minimized. After the First World
War, quality inspection became more common place in
manufacturing environments and this led to the introduction of
Statistical Quality Control (SQC), a theory developed by Dr. Edwards
Deming, this quality method provided a statistical method of quality
based on sampling. Where it was not possible to inspect every item, it
was not possible to inspect every item; a sample was tested for
quality. The theory of SQC was based on the notion that a variation in
the production process leads to variation in the end product. If the
variation in the process could be removed, this would lead to a higher
level of quality in the end product.
Furthermore, after World War II, the industrial manufacturers
in Japan produced poor quality items. In a response to this, the
Japanese Union of Scientists and Engineers invited Dr Deming to
24
train engineers in quality processes.’ By the 1950s quality control was
integral part of Japanese manufacturing and was adopted by all levels
of work within an organization.
By the 1970s, the notion of Total Quality was being discussed.
This was seen as companywide quality control that involves all
employees from top management to the workers in quality control. In
the next decade more non Japanese companies were introducing
management procedures that based on the results seen in Japan. The
new wave of quality control became known as Total Quality
Management, which was used to describe the many quality focused
strategies and techniques that became the center of focus for the
quality movement.
2.2 DEFINITION OF TOTAL QUALITY MANAGEMENT
In studying the impact of TQM on productivity and corporate
performance in Nigerian oil industry, several important principles of
this management philosophy that influence its successful
implementation are brought to the fore. These include management
commitment, customer focus and satisfaction employee
empowerment, continuous improvement and organizational culture
and attitudes. Others are teamwork, continuous training, total
25
employee involvement and democratic management style. It is these
concepts of TQM that will constitute major areas of our review of
literature but first, what is TQM?
Total quality management (TQM) is the management
philosophy and company practices that aim to harness the human and
materials resources of an organization in the most effective way to
achieve the objectives of the organization. These objectives include
customer satisfaction, business objectives services to the community
(Dale and Oakland, 2000). The ability to meet customer requirement
is vital within the organization. TQM focus is an improving the
quality of products and services. Moreover, it has succeeded vast
consideration from both oil industry and academic. TQM can be
deemed as an outstanding and long lasting state of the art managerial
tools and concepts enhanced in previous decade. It has had a
prominent impact on several organizations (Pike, and Barnes 2010;
Psychogios, 2007).
According to Hunt (1992) TQM is a way of managing to
improve the effectiveness, efficiency, flexibility and competitiveness
of a business as a whole. Quality management, quality assurance and
quality control are all embodied in TQM, together with all other
management activities. TQM involves whole companies getting
organized, in every department, in every activity, with every single
26
person, at every Level. This involves putting in place processes and
systems which would ensure that every aspect of its activity is aligned
to satisfying customer needs and the organization’s objectives without
waste of effort by releasing the full potential of every person in the
organization (Arora, 2004: Cleary, 2001) for an organization to be
truly effective, every single parts of it must work properly together,
because every person and every activity affects and in turn is affected
by others. It is in this way that Japanese companies have become so
competitive and successful (Oakland, 2000).
Total quality management is a management philosophy that
advocates organization’s long-term commitment to the continuous
improvement of quality, throughout the organization and with the
active participation of all members at all levels, to meet and exceed
customer expectations. This to-management-driven philosophy is
considered a way of organizational life. In a sense, TQM is simply
affective management.
Although the specific programs may vary, there usually is a
careful analysis of customer needs, an assessment of the degree to
which these needs are currently met, and a plan to fill the possible gab
between the current and the desire situation. TQM demands a free
flow of information-vertically, horizontally and diagonally.
27
According to Ewurum (2001) the goals of TQM are to be the
parts and processes of an organization in order to achieve continuous
improvements in quality of goods and services along the line dictated
by the customer.
Okolie (1992:23) define TQM as the management of all aspect
of quality service provided to the customer. He opined that such
management covers quality of goods delivery, price or service and
differs from the traditional quality concept, which center on quality
control and quality assurance.
Levine and Helper (1993:11), defines TQM as a combination
of a set of problem solving tools with a management philosophy of
training, motivating and empowering all levels of the organization to
focus on customer need.
Wruck and Jensen (1994:11) have asserted that TQM provided
a historical unique approach to improving organizational
effectiveness, one that has a solid conceptual foundation and at the
same time offers a strategy of improving performance that takes
account of how people and organization actually operate. TQM
requires that every aspect of the organization material and non-
material is improved to make it relevant to customers need.
28
Juran (1988:12) observes that the philosophy behind the
adoption of the TQM concept by an organization is primarily to
enable it stay in business so that it can promote the stability of the
community, generate products that are useful to customers and
provide a setting for the satisfaction and growth of organization
members.
Rose (1994:12) identified TQM as integrated management
practices that emphasizes among other things continued
improvement, meeting customer’s requirements, reducing network,
long range thinking, increased employee involvement and teamwork,
competitive benchmarking team based problem solving constant
measurement of result and closer relationship with suppliers.
Debo (1996: 17) summed up the TQM concept as a strategy for
improving businesses through the commitment of all employees, from
the top management down to the line, infilling satisfying agreed
customer requirement at the lowest cost through the continuous
improvement of products and services, business process and the
people involved. TQM concept cannot be effective except there is
commitment from employees and management.
According to Ezeh J.A. and Onodugo (2002:184) TQM aims at
attaining a zero-defect products/services by “doing the right thing first
time and every time. Going further, TQM has core elements as:
29
� Customer satisfaction
� Cost reduction via zero-defect product/service
� Continuous improvement of product and organizational
processes.
� Holistic in its approach
Wilkinsom and Wilmot (1995:16) argued that getting
employees to become committed to attaining quality on a highlighted
motivated fashion requires the development of an understanding on
the part of management, that people do not need to be coerced to
perform well and that most people desire achievements,
accomplishments and influence. And the right environment can
challenge them to use their abilities to achieve, accomplish and
influence.
Ishikawa (1985:17) contended that for an organization to
succeed in TQM it must remove all organizational system that create
fear such as punishment for poor performance, appraisal system that
involved the competitive evaluation of employees and merit pay for
this reason, it is believed that the responsibility for developing people
to become committed to total quality rests with the manager. Thus
included understanding and agreeing on the requirement of the job,
knowing how to do the job and why it is being done, having
30
necessary materials tools and information being able to measures
improvement and knowing what to do when things go wrong.
Deming (1986:28) argued that employee’s worth effectiveness
is reviewed as a direct function of the quality of the systems that
managers create. He opined that it is not sufficient to provide clear
direction about hoped for outcomes, in addition management should
train and coach employees to assess, analyzed and improves work
processes.
Total quality management as a philosophy that seeks to
integrate all organizational functions (marketing finance design,
engineering and production, customer service etc) to focus on
meeting customer needs and organizational objectives views an
organization as a collection of processes. It maintains that
organizations must strive to continuously improve these processes by
incorporating the knowledge and experience of workers. The simple
objective TQM is “do the right things, right the first time, every time.
TQM is infinity variable and adaptable. TQM is now becoming
recognized as a generic management tool just as applicable in service
and public sector organizations. TQM is the foundation for activities,
which include:
� Commitment by senior management and all employees
� Meeting customer requirements
31
� Reducing development cycle times
� Just in time/demand flow manufacturing
� Improvement teams
� Reducing product and service cost
� System to facilitate improvement
� Line management ownership
� Employee involvement and empowerment
� Recognition and celebration
� Challenging quantified goals and bench marketing
� Focus on processes/improvement plan
� Specific incorruption in strategies planning
Thus, TQM is a method by which management and employees
can become involved in the continuous improvement of the
production of goods and services. It is a combination of quality and
management. It is a combination of quality and management tools
aimed at increasing business and reducing losses due to wasteful
practice.
As previously mentioned, global economic competition has
increased in the past few decades. According to Brown (2009), “At
the close of the century, the creation of the global market, the
international orientation of management which sweeps national
boundaries, the introduction of new technologies, and shifts toward
32
customer focused strategies, has made the competition stronger than
ever.” There has been greater trade co-operation amongst nations,
which led to a decline in international trade banners. This has
afforded customers all over the world, wider alternatives among
several offers and consequently affecting how organizations make
business decisions. The increasing demand and sophistication of
customers have virtually re-written the rules of competition and
forced organizations to focus on quality. Today, what is competitive
advantage is the ability of products and services to meet or exceed the
needs of customers. This implies that to survive, organizations must
device new management system based on the tenets of Total Quality,
and by offering quality products and services. This will not only
lower costs but also outperform the products and services of
competitors spread across the world. This is the force behind Total
Quality Managements.
When introducing and developing the concepts of TQM the
executives of an organization should ensure that the system will
facilitate and promote continuous quality improvement. The constant
goal of management of all functions and at all level is of an
organization is to strive for quality and its improvement in a balanced
way. Quality improvement is achieved by improving the processes of
an organization. This should be a continuous activity; aiming forever
33
higher levels of process effectiveness and efficiency; level of process
efficiency; efforts should be directed towards constantly seeking
opportunities for improvement; rather than only waiting for a problem
to reveal an opportunity (Crosby, 2000). There are some basic
principles underlying TQM, which we now turn to.
2.2.1 Total Employee Involvement
The first of these principles is that TQM, in contrast to previous
quality management initiatives, involves everyone in an organization.
It is widely accepted that the increase of employees’ participation in
the overall quality strategy brings an increased flow of information
and knowledge, and contributes in the ‘distribution of intelligence” to
the bottom of the organization for resolving problems (Powell, 2000).
As Morgan and Murgatroyd (2005) noted that the total elements of
TQM imply that every organizational member is involved in quality
improvement processes. In addition, Oakland (2000) points out that
TQM is essential a way of organizing and involving the whole
organization; every department, every activity, every single person at
every level.
2.2.2 Continuous Improvement
Global competition for increasingly demanding customers has
necessitated changed acceptable standards. What appears to be best
34
products/services today may be disregarded tomorrow. The drive
towards total excellence has made a very clear direction; though no
definite destination for companies to attain and sustain business
excellence through continuous improvement of product/service
(Ward, 1998:7). Quality improvement is not a task that has an end, as
it is not state. The emphasis is on seeking improvement opportunities,
not just holding the status quo. The focus is on planning prevention
and anticipation (Gilmore, and Carson, 2000). Quality improvement
philosophy of continuous improvement, and provides the necessary
supporting organizational practices. Quality experts like Deming,
Juran, Scholtes and Crosby state that organizations must approach
quality improvement from a long-term perspective (Atkinson, 2000).
2.2.3 Teamwork
Teamwork is an important outcome and a condition for
continuous improvement. Teams are generally viewed as a more
powerful and effective work entities than individuals. Teams
according to Lawler should be catholic, including employees from all
hierarchical, levels, layers and from all the departments of the
enterprise. Hill (2003) states that teams are needed for all
organizations in order to make them work more flexibly and to
develop mutual trust among members. In traditional management
35
approaches each department needs to take care of its own problems.
In a TQM context the whole organization need to care about quality
improvements need cross-functional work groups that will deal with
inter-departmental management problems.
2.2.4 Customer Satisfaction
In a total quality context customer satisfaction is the driving
force for an organization to improve its performance. Juran, (2003)
states that there are two different kinds of customers: the external
customers like clients, government regulatory bodies, the public that
define the quality of the service delivered and internal such as
employees, different departments, that defines the quality of the
processes associated with the delivering of services. Both external
and internal customers have needs. According to Lawler (2001) to
realize customer satisfaction, everyone within the organization should
consider continuous improvement as something normal and urge
organizations to make an inventory of customers’ data, customers’
complaints and benchmarking in order to improve the customer
orientation. However, Lawler (2001) states that, although customer
focus is revered, methods for developing a deeper understanding of
the customers’ situation are not sufficiently integrated into TQM.
36
2.3 Development of TQM
The development of TQM was spurred by the intense
competition ranging between companies of Japan, North America and
Europe in the early 1980s. Japan with no natural resources, was able
to hit at all time high of 11 percent of the world’s Gross National
Product (GNP). This they achieved through the exports of high
quality low price, products to other countries, who could not help but
follow one.
In 1946, and 1949, the union of Japanese Scientists and
Engineers (JUSE) and one quality control research group,
respectively, were established. These bodies were charged with the
responsibility for ensuring improvement in Japanese productivity and
enhancing and training progressed during the 1950s. These were
produced JUSE and Japanese Management Association (JMA) and
also through in-house training developed in the factory (Wiss and
Mark, 1998:4)
This period was however dominated by quality initiatives that
were based on the implementation of Statistical Process Control
(SPC) on the factory floor. Senior management personnel were hardly
involved in the process, while much emphasis was on quality control
methods, which many workers dislike because of their complexity.
37
Quality Management at this point was limited in scope due to the
creation of many specifications and standards.
Following the visit of management experts in 1954, lectures
and seminars were held on how to improve on the existing quality
which was the concern of the whole management structure and that
quality should be an integral part of the management control systems.
The quality control circles were also developed by JUSE during this
period. This idea involves the concept of companywide control
whereby there is a cross functional integration of the quality control
process.
With the success achieved in Japan through the use of what the
company called Wide Quality Control (WQC), various countries
especially those from the West — EU and USA had no option but to
embrace the concept of TQM identical to the Japanese (WQC) if they
want to survive the fierce global competition. Many organizations in
the USA and UK have adopted TQM to their advantage (Rosenberg,
1996:5).
2.4 CONCEPTUAL FRAMEWORK OF TQM
TQM is a management philosophy that seeks to integrate all
organizational functions such as marketing, finance, design,
engineering, production and customer service, to focus on meeting
38
customer needs and organizational objectives. TQM views an
organization as a collection of processes. It maintains that
organizations must stand to continuously improve these processes by
incorporating the knowledge and experiences of workers. The
objective of TQM is “Do the right things, right the first time, every
time.” TQM is infinitely variable and adaptable. TQM is now
becoming recognized as a generic management tool management tool,
just as applicable in serviced and manufacturing organizations. There
are a number of evolutionary stands, with different sectors creating
their own versions from the common ancestors. TQM is the
foundation for activities, which include: commitment by senior
management and all employees, meeting customer requirements,
reducing development cycle times, just in Time/Demand flow,
manufacturing improvement teams, reducing product and service
costs, systems to facilitate improvement line, management ownership
employee involvement and empowerment, recognition and
celebration, challenging quantified goals and benchmarking (Goetch,
2005:2).
TQM is mainly concerned with continuous improvement in all
work from high level strategic planning and decision making to
detailed execution of work elements on the shop floor. It stems from
the belief that mistakes can be avoided and defects can be prevented.
39
It leads to continuously improving results, in all aspects of work, as a
result of continuously improving capabilities; people, process and
technology and machine cap abilities continuous improvement must
deal not only with improving results, but more importantly with
improving capabilities to produce better results in the future(Hiam,
1992:3). The five major areas of focus for capability improvement are
demand generation, supply generation, technology, operations and
people capability. A central principle of TQM is that mistakes may be
made by people, but most of them are identified and adequate
amendments made to improve the process (Ewurum, 2003). This
means that time root cause of such mistakes can be identified and
eliminated, and repetition can be prevented by changing the process.
There are three major mechanism of prevention which includes:
� Preventing mistakes from occurring.
� Where mistakes can’t be absolutely prevented, detecting them
early to prevent them being passed down the value added
chain.
� Where mistakes recur, stopping production until the process
can be corrected, to prevent the production of more defects.
Organizations are usually involved in manufacturing of
products or provision of services that are offered for sale to potential
customers and clients. There are major issues to be considered for the
40
sale of these products or services which include price and quality.
According to Dale, and Oakland (2000) quality is often the major
issue because poor quality can be very expensive for both the
producing firm and the customer. It is therefore imperative for every
organization’s operation manager to ensure that his or her firm
delivers a quality product at the right place, at the right time and at the
right price. Quality is the totality of features and characteristics of a
products or services that bears on its ability to satisfy given needs
(Oakland, 2005). In other words, quality measures how well a product
or serviced meets customer needs. Organizations recognized that to
be competitive in today’s global economy; they must strive for high
levels of quality. As a result, they continued to emphasize methods
for monitoring and maintaining quality. Quality assurance refers to
the entire system of policies, and guidelines established by an
organization to achieve and maintain quality (Wilkinson, et. al, 2009).
In considering all these definition; it is very important that it
must include an added emphasis on meeting the customers need to
make meaningful contributions to the concept of total quality
management. Total Quality control consists of operational techniques
and activities aimed at both monitoring a process and eliminating
causes of unsatisfactory performance of relevant stages of quality
loop-spiral in order to result into economic effectiveness (Arora,
41
2007). The burden of quality proof rests not with inspection but with
the market of part: Machinist assembly foreman, vendor. This
message with those from other evolved into a crusade known as Total
quality management (Hill, 2010). Hill goes further to state the vital
definitional frame work for total quality management: Total quality
Management is strategically united to the organizational goals
customer understanding and satisfaction is vital within the
organization.
Employee participation and understanding in continuous
improvement to all level is required within the organization. The
organization is perceived as a series of processes that incorporate
customer-supplier relationship.
2.5 EVOLUTION OF TOTAL QUALITY MANAGEMENT
The development of the quality management process was
pioneered in America, but the first country to take advantage of the
development was Japan. It was reported that after World War II, an
American, W.E. Deming went to Japan to teach quality and the
Japanese Learned it. Deming is out spoken in his quality crusade that
management must accept responsibility for building good systems.
J.M. Juran was also a pioneer in teaching the Japanese how to
improve quality. Like Deming, Juran believed strongly in top
42
management supports and involvement in quality control. He believed
also in team work to raise quality standard. Juran varies from
Deming, by focusing on the customer in an effort to define quality as
fitness for use, not necessarily the written specifications. Crosby’s
traditional view has been with management and employee
commitment great strides can be made in improving quality. He also
believes that in the traditional tradeoff between the cost of improving
quality and the cost of poor quality, the cost of poor quality is
underestimated. The cost of poor quality should include all of the
things that are involved in not doing the job right the first time
(Deming, 1986, Juran, 2000 and Crosby, 1989). In recent years, Total
Quality Management (TQM) has become so popular, that western
countries are following the example of Japan. Organizations and
Government are not only taking lead position in making use of the
concept but all also committing their resources toward spreading the
doctrine. There has been a renewed emphasis on quality due to
increase appreciation of the cost of poor quality to the producer
customer and society. This emphasis on quality therefore has evolved
to such as points that we now have International standard being
developed, for instance, the Japanese Industrial Standard and the
Europe’s ISO 9000 standard (Delbridge, et al, 2004 & Clearly, 2001).
43
2.6 PIONEERS OF TOTAL QUALITY MANAGEMENT
The development of TQM was pioneered by several
management experts, through their writings, seminar, presentation
and workshops. Deming W.E considered to be an influential
American in the field of management, was credited with remarking
Japanese industry after World War II. He listed 14 points popularly
called Deming’s 14 points of management arguing that they are the
basis for the transformation of American industry and the adoption of
the 14 points are imperative for any management that intends to stay
in business and aims to protect investors and jobs. His main points of
emphasis were on quality, leadership, horizontal management,
continuous improvements, employee involvement and training (Stahl,
1999 and Deming, 1999:23).
Joseph Juran was pioneer of the movement. His own idea
quality improvement is by blurring of functions through a cross-
functional integration of organizational processes. His concern was
with processes that spanned at least two of the function of design
production, marketing or financial. He argued further that quality was
too important to be left with specialist quality control department. His
ideas that prevention rather than selection was the key to quality
44
delivery were widely adopted Japanese firms (Stahl, 1999:9 and
Wilkinson, 1998:2).
Kititazawa (2000) was concerned with the prevention of effects
before they occurred while working through the 1930s and 1960s.
Some of his work has to do with the managerial emphasis on systems
and process improvement. This idea was developed during the period
when the concept for zero defects was developed.
Philip Crosby, from 1970s to present day, focused his ideas
around the concept of cost quality. The cost of quality is the cost
incurred as a result of producing poor quality products and services.
He helped managers to understand the importance of quality; that
improved quality can lead to lower costs if the product or service and
the process that generate it are designed correctly, with the customer
in mind. He adopted the idea of zero defects in most of his work
based n the experience he had, working in the Martin Company,
which was involved in the construction of the pre-shipping missiles
for the American government. The company had a light schedule, and
had no option other than urging employees to built right fist time with
no defects (Stahl, 1999:9 and Wilkson, 1998:19). Other experts such
as Feigenbam A.V. in time 1960s and Shewart .W. in the 1930s have
also contributed in several ways to the development of TQM.
45
2.7 PRINCIPLES OF TQM
TQM can be defined as the management of initiatives and
procedures that are aimed at achieving and delivering quality products
and services.
A number of key principles can be identified in defining TQM,
including:
� Executive Management: Top management acts as the main
driver for TQM and creates the environment that ensures its
success.
� Customer Focus: Improvements in quality improves customer
satisfaction.
� Decision Making: Quality decisions are made based
measurements.
� Methodology and Tools: Use of appropriate methodology and
tools ensures that non conformances are identified, measured
and responded to consistently.
� Continuous Improvement: Companies continuously work
towards improving manufacturing and quality procedures.
� Company Culture: The culture of the company aims at
developing employees’ ability to work together to Improve
quality.
46
� Employee Involvement: Employees are encouraged to be pro-
active in identifying and addressing quality related problems.
� Decision Making: Quality decisions are made based on
measurements.
� Methodology and Tools: Use of appropriate methodology and
tools ensures that non conformances are identified, measured
and responded to consistently.
� Continuous Improvement: Companies continuously work
towards improving manufacturing and quality procedures.
� Company Culture: The culture of the company aims at
developing employees’ ability to work together to Improve
quality.
� Employee Involvement: Employees are encouraged to be pro-
active in identifying and addressing quality related problems
(Hill, 1987).
2.7.1 Objectives, Goals and Significance of Total Quality
Management
Objectives
1. Improvement in quality of production and services
2. Waste reduction
3. Cost reduction
47
5. Improvement in productivity
6. Safety improvement
7. Problems solving opportunity
8. Team work
9. Link all levels of management and workers
10. Total employee involvement
Goals
1. Quality products/services
2. Customer satisfaction
3. Cost control
4. Flexibility
5. Lead time
Significance
Using an organization like Phinomar farms for example; in the
years ahead, Phinomar will confront an increasingly complex array of
customer arid market issues. Global competition consumers and joint
ventures partners will place increasing pressure on Phinomar farms on
such issues as quality of products and services cost and response time
in dimensions that will become increasingly varied and complex.
Global business and regional economics are establishing quality
standards, which place business restrictions on non-conformers but
48
competitive advantage on companies who comply with these
standards.
In order to survive and remain profitable, the organization must
continuously challenge there processes, products and services
benchmark and continuously improve along world-class standards.
That is why Total Quality Management is significant at this time
(Medori and Steeple, 2000).
2.8 EFFECTIVE APPROACHES TO APPLICATION OF
TQM
A preliminary step in TQM implementation is to assess the
organization’s current reality. Relevant preconditions have to do with
the organization’s history, its current needs, precipitating events
leading to TQM, and the existing employee quality of working lift. If
the current reality does not include important preconditions, TQM
implementation should be delayed until the organization is in a state
in which TQM is likely to succeed. If an organization has back record
of effective responsiveness to the environment and if it has been able
to successfully change the way it operates when needed. TQM will be
easier to implement. If an organization has been historically reactive
and has no skill in improving its operating systems, there will be both
employee skepticism and a lack of skilled change agents. If this
49
condition prevails, a comprehensive program of management and
leadership development may he instituted. A management audit is a
good assessment tool to identify current levels of organization
functioning and areas in need of change. An organization should be
basically healthy before beginning TQM. If it has significant
problems such as a very unstable funding base, weak communication
systems, lack of managerial skill or poor employee morale, TQM
would not be appropriate. However, a contrail level of stress is
probably desirable to instate TQM.
People need to feel a need for a change, Grant et al (2011)
opines this to be the building blocks which are present in effective
organizational change. These forces include departures from tradition
are crisis organizing event, strategic decisions, and individual prime
movers and action vehicle. Departures from Tradition are activities,
usually at lower levels of the organization, which occur when
entrepreneurs more outside the normal ways of operating to solve a
problem. A crisis, if it is not too disabling, can also help create a
sense of urgency which can mobilize people to act. In the case of
TQM may be such a strategic decision. Such a leader may then
become a prime mover, who takes charge in championing the new
idea and showing others how it will help them get where they want to
go. Finally, action vehicles are needed and mechanisms or structures
50
to enable the change to occur and become institutionalized (Spencer
and Leslie, 1998:5).
2.9 KEY STEPS IN THE TQM PROCESS
1. Program initiation
2. Design and implementation
3. Exploitation of TQ-managed Business.
Fig. 2.1: Stages in the TQM process
Source: Atkinson, P.E (1990:256)
Defining strategies
Scope, scale and
creation
Raising awareness,
understanding
and interest
Planning the charge
programme
Initiation
Implementation
Exploitation
Business redesign
Analysis of
current operation
Integration and
testing
Exploiting the
Management
process
Managing the TQ
Managed business
Containing the
improvement
process
51
2.10 THE CHARACTERISTICS OF TQM
Conformity: Each mid position and/or department shall be regarded
as being a member of a chain of internal customers and suppliers,
finally directed at the external customers, conformity of the
deliverable shall be realized between the elements of this chain. The
practitioners must imbibe the principles in four areas, customer of the
business, the operators of the business, organization of the business
and the culture of doing business as practiced by the workers.
Excellence: Every step in improvement process is measured and
translated to monetary terms. The effect is the difference between
status quo and the aim as well as the realized improvement can be
communicated. These are very facilitating and are designed to assist
the normal organization in taking improvement actions.
Responsibility: This refers to the general approach to the
management of human resources. Industries are switching from
traditional paternalistic or autocratic approach to a more consensus
oriented and more participative way of personnel management. As a
result, motivation and identification in the enterprise seem to improve
it can therefore be regarded that TQM is not obstructed by ideological
argument. It is not responsible for quality or quality improvement but
it is for managers and people to take ownership of quality, and more
52
importantly, a process in which the concept of improvement is
imbibed by each individual (Jablonski, 1992).
2.11 APPROACHES FOR SUCCESSFUL APPLICATION OF
TQM
There are various approaches towards a successful
implementation of the TQM. The two common approaches are
categorized as:
a. The Package Approaches
b. The Taskforce Approach
The Package Approach: This is usually based on the work former
quality gurus; Deming, Juran, Crosby, Conway and several others.
This approach recognizes that changing behavior and attitude require
education, but heavily reliant on videos and workbooks and does not
take sufficient account of the cultural issues of problems with
organizations.
The Taskforce Approach: The taskforce approach provides and is
aimed at specific rather than whole style and attitude of managing the
organization. The importance of education and training in the TQM
process cannot be over emphasized. The consultation’s education
methods and materials should be examined in depth as considerable
53
experience is usually reflected in the. Many consultants rely on
packaged educational methods and workbooks.
2.12 BENEFITS, SHORTCOMINGS AND COST OF TQM
2.12.1 Benefits of TQM
Payoff from TQM has been focused severally by different
writers. The benefits range from long term profitability, high product
quality, low cost, to regained market share. A USA study of 22 TQM
companies that were finalists for the Malcolm Baldrige National
Quality Award in 1988 and 1989 shows increased operating
performance. The firm reported average annual improvements of 5
percent to 12 percent in reliability, outcome delivery, order
processing time, errors or defects, product lead time, inventory
turnover and cost quality as quoted by Stahl M.J (1999:193).
TQM also results in high quality in products and services of
organization, which have embraced it. It as well result in low cost, of
production and operation as quality goes off due to systematic and
process changes costs come down (Stahl, 1999:193). Deming (2004)
also showed how high quality can lead to lower costs. His ideals are
presented in the diagram below:
54
Figure 2.2: The Pervasive Role of Quality
Source: Deming W.E. (1986:120: out of Crises Cambridge
2.12.2 Short-Coming of TQM
The discussions so far have presented TQM a flawless tool for
the achievement of flawlessness. The position with various TQM
experts is that there is no problem with TQM pursuit, but in the
implementation. According to Stahl, (1999:115) TQM failure results
from lack of commitment on the part of management. He also noted
that there have been a number of criticisms against TQM in the
1990s. Some dislike its vocabulary while others content that TQM is
just a fad. However, no matter the vocabulary that may evolve, the
concept of managing systems with cross functional teams to
continuously provide greater value to customers will remain.
Improve
Quality
Cost decreases because of less
rework, fewer mistakes, fewer delays
and better use of massive time.
Productivity
Improves
Provide jobs,
and more jobs
Stay in business
Capture the market with
better quality and lower
prices
55
TQM effort fails in some organization because of the low level of
education and training of management and employees in the use of
TQM tools and techniques (Dahlgaar et al, 2005).
2.12.3 The Cost of TQM
Many companies believe that the costs of the introduction of
TQM are far greater than the benefits it will produce. However,
researchers across number of industries have costs involved in doing
nothing, i.e. the direct and individual costs of quality problems, are
far greater than the costs of implementing TQM.
The American quality experts, Phil Crosby, wrote that many
companies chose to pay for the poor quality in what; he referred to as
the “price of non-conformance”. The costs are identified in the
Prevention, Appraisal, and Failure (PAF) model.
� Prevention costs are associated with the design,
implementation and maintenance of the TQM system. They
are planned and incurred before actual operation and includes:
• Product Requirements: The specifications for incoming
materials, processes, finished products/services.
• Quality Planning: Creation of plans for quality
reliability, operational, production and inspections.
56
• Training: The development, preparation and
maintenance of processes.
� Appraisal Costs are associated with the vendors and customers
evaluation of purchased materials and services to ensure they
are within specification. They include :-
• Verification: Inspection of incoming materials against
agreed upon specifications.
• Quality Audits: Check that the quality system is
functioning correctly.
• Vendor Evaluation: Assessment and approval of
vendors.
� Failures costs can be split into those resulting from internal
and external failure. Internal failure costs occur when results
fail to reach quality standards and are detected before they are
shipped to the customer. These can include
• Waste: Unnecessary work or holding stocks as a result
of errors, poor organization or communication.
• Swap: Defective product or material that cannot be
repaired, used or sold.
• Rework: Correction of defective material or errors.
57
• Failure Analysis: This is required to establish the causes
of internal product failure.
� External failure costs occur when the products or services fail
to reach quality standards, but are not detected after the
customer receives the item. These can include :-
• Repairs: Servicing of returned products or at the
customer site.
• Warranty Claims: Items are replaced or services re-
performed under warranty.
• Returns: Transportation, investigation and handling of
returned items (De Cock etal, 2007).
2.13 FEATURES OF TOTAL QUALITY MANAGEMENT
Total Quality Management has various features:
1. The major characteristic is the close links, which are forged
between top management and shop floor operations. Operators
are encouraged to take more decision and accept more
responsibility. As a consequence under management are being
reduced or eliminated.
2. It is a process focus that places premium on prevention rather
than inspections.
58
3. It reduces errors, wastes and conflict time and delay in
operations.
4. It is a way of life and never ending journey which involves
being quality driven in all aspects by continuous improvement.
5. It involves the art of preventing problems before they occur
instead of fire -fighting approach to solving problem.
6. Quality goals are the cornerstone of the strategic plan for
achieving profitability, return on investments and market share.
7. Quality permeates all suppliers, employees, customers, input
and outputs.
8. Organization perceived as interdependent, collaboratively link
of internal and external customers.
9. It involves motivation through improvement.
10. Individual and department co-operation through team work
(Scheurmann etal, 1997)
2.14 SECTORIAL APPLICABILITY OF TOTAL QUALITY
MANAGEMENT
According to Juran (1988), the roles of Total Quality
Management could be seen in five (5) diverse sets of fields, these
include:
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• Manufacturing
• Finance Sector
• Human Resources
• Information System
• Service Quality
1. Manufacturing
The role of Total Quality Management in the manufacturing
environment should be to integrate customer’s satisfaction with
the production process e.g. some organizations are making
certain that their products meet customer’s satisfaction through
Quality Function Development (QFD), which involves sending
their personnel to customers to obtain better understanding of
how their products are used. Another example is that others are
moving into external marketing, selling goods, primarily for
their parents companies and making huge sales quotas for the
operation.
2. Finance
The marketing role/challenges in the sector involves basic
market segmentation and product positioning which are
currently introduced by some firms and insurance companies,
while motivating on-going programs. The role is to build a
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cadre of personnel who want to serve customers with a high
level of quality and quality consciousness.
3. Human Resources
Here, human resources personnel agree on the necessity to
utilize marketing approaches with two groups to improve
quality services effectively. This goes to show the way human
resources can market quality and expect complementary effect
on customers’ satisfaction.
4. Information System
Information systems operations, market their process
knowledge to help support Total Quality Management. This
effort will promote the needed marketing and Total Quality
scenery.
5. Service Quality
Service quality management pertains to the Service and
administrative areas of manufacturing companies as well as o
the entire service industry. Its main role is the prevention of
non-conformance in service and administrative activities and
the continual improvement of service operations.
The implementation of Total Quality Management requires a
well define management structure capable of driving the quality
improvement process through the organization.
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2.14 THE CORE VALUES OF TQM
To have a better understanding of TQM, it is appropriate to
unveil its core concepts and examined them critically as follows:
(i) Achieve quality in everything: people, processes, product and
services.
(ii) Do the right things right first time every time.
(iii) Have visceral commitment to, and obsession, for customers
who are both internal and external appeasers.
(iv) Reduce cost of bad quality by investing substantially in cost of
good quality.
(v) Provide quality leadership and motivation to enable all
employees commit to the total quality process.
(i) Achieve Quality in Everything: People, Process, Products
and Services
In other to achieve quality in people, there has to a system in
place which ensures quality in recruitment, selection,
appraisals, promotion, rewards and quality in human resources
development and management. It also calls for quality
leadership at all levels of the organization that can motivate
their followers to peak performance through creating room for
innovativeness, inspiring shared vision and employment.
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Attaining quality in process means all business processes of
administration, Information, finance audit, strategic planning,
reception, telephoning, sales, marketing etc must be capable of
delivering to customer the right product and services right first
time every time, at a faster, better and overall lowest cost.
A quality product/service i.e. the outcome of any process is that
which fully meets the customer needs and expectations.
However, the organizations that make a disciplined habit of
achieving excellence in the three components achieve rewards
of profitability, motivated and loyal employees, over satisfied
stakeholders, and the impact of this is on both growth earnings
and profitability as a whole in the organization.
(ii) Do the Right Things Right Time Every time
The right things are judged strictly from the perspective of the
customer. Thus, only activities that have customer
requirements to satisfy are considered acceptable.
Faithful adherence and commitment to the mission of quality
delivering process (QDP) is the secret of TQM organizations.
The quality delivery process requires every work done (from
top) management down to the lowest running of the
organization’s hierarchy) to define their mission in business,
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determine their outputs and ensure harmony between output
and mission, identify customers for each output; determine
customer requirements for each output; develop specification
for each output that satisfy the customers requirement; and
establish a. work process, including the identification of inputs,
capable of customer’s requirements at the lowest overall cost.
When the above is implemented and become a culture within
the organization, wastes or expensive repeated works are
totally eliminated or at least minimized; and continuous
improvement becomes a norm. This is great for the customer
who perceives the organization as one that always delivers the
right product right first time and very good for the organization
that is constantly finding innovation methods for improving its
process while delighting the customer.
(iii) Have Visceral Obsession for Customers
Total quality management organizations (TQM) seek that a
casual relationship exists between the employees and
customers. This in turn will promote the growth in external
customer loyalty, and therefore the fortunes of the business.
The American society for quality control states this fact “the
frontline providers of service treat customers in much the same
way that they, as employees, are treated by their employers”.
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Thus TQM organizations usually conduct external customer
and employee surveys, face to face discussions, focus groups,
and advisory panel market research liberally to listen to their
customers.
The TQM tool enables organizations to recognize that the
employee is the internal customer of management and
organizational excellence can only be achieved if the internal
customers are treated well.
(iv) Reduce Cost of Bad Quality by Investing Substantially in
Cost of Good Quality
The Cost of quality (COQ) is the cost of activities additional to
a basic work process used in a business and they include:
(i) The cost of activities which are designed to ensure
conformance to agreed customer requirements-cost of
commence or cost of good quality.
(ii) The cost of activities which result from failure to conform to
agreed customer requirements-cost of bad or poor quality and
(iii) Cost of lost opportunities-cost of lost sales, activities, with
quality as cost of good quality, include; strategic planning,
market research, standard living procedure, preventive
maintenance, quality and process audits, workers-oriented
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programme, competitive and key process, benchmarking,
quality measurement and feedback systems (Hill1987).
While those which can be classified as cost of bad quality
include: employee turnover, excess marketing costs, excess
services or product feature, lost customers and market share,
absenteeism, re-work, excess. Managerial and professional
staff, excess overtime, law suits, unproductive meetings and
lateness. In other words, the cost of quality model in a TQM
package is aimed at raising the level of awareness of
organizations to the various categories of cost of poor quality,
so that they can recognize that quality is not at abstract and
therefore focus on investing the cost of quality to drive out bad
cost of quality.
(v) Provide Quality Leadership and Motivation to enable all
Employees follow to the Total Quality Process
Traditionally, managers have been figure of authority that
welded the big stick, and perhaps encouraged compliance
through fear. In a TQM environment, the above mentioned
style of leadership is inappropriate; Employees cannot be
coerced to innovation, or think of improvement or self measure
their performance.
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Although we have various styles of leadership, but we shall
consider the one pioneered by Kenneth Blanchard, an American
management guru: the directing is a blend of high directive and low
supportive behavior. The coaching style is a blend of high directive
and high supportive behavior; the supporting style is a blend of high
supportive and low directive behavior and delegation style is a blend
of low supportive and low directive behavior.
2.15 ADVANTAGES OF TOTAL QUALITY MANAGEMENT
(TQM)
Organizations that have achieved high level of organizational
excellence bring in their external customers into their planning
process; this way those that matter most and those activities can
contribute to the achievement higher quality achievement in the
organization.
Additionally, prevention is rather better than cure by doing the
things right first time every time, reliability, promptness and
production of products and services which give the customers value
for money. This in effect would eliminate waste and extravagance,
raise quality of goods and services for customer satisfaction at
unprecedented levels at the lowest overall cost (Jura, 1988).
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Additionally, employee morale and productivity will soar,
because everybody is given a sense of belonging and a good sense of
leadership is also expected, because employees have been known to
be motivated for quality through using decision first time, every time,
using organizational structures that are lean and fit to enhance
communication and customer responsiveness, investing substantially
in good cost of quality, using a structured process of solving problems
so as to arrive at the right solution first time every time: managing
business on hard facts rather than on personal fancies clearly, on
organization, with such positive records will be on a winning streak,
and the inner and external customers will perceive and acknowledge
the organizational excellence and profitability.
TQM emphasizes strategic quality planning; employees at all
levels participate in a bottom up-bottom process to evolve a sound
long-term plan which defines the organization’s mission, values, arid
strategic direction. Also TQM identifies key cross- functional process
which impact on external customers, scans the business environment
to discern opportunities and threats, and contains clear performance
objectives for superior quality achievement.
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2.16 REASONS WHY SOME MANAGEMENT WOULD
OPPOSE TQM
Most versions of TQM philosophy stress three (3) core
principles as follows:
(i) All employees can contribute effectively to improvement. It
follows that management have both an economic incentive and
even a moral imperative to provide all employees with the
opportunity to contribute. This requires the provision of time,
training, access to information, and (most important) the
possibility of implementation. A further corollary is that team
work must be the primary mode of management, because the
co-operation of others is essential to share information and to
implement improvements.
(ii) The ultimate goal of the organizations efforts is customer
satisfaction. Even profit is to be mostly function of, and
therefore subordinate to, the requirement, to please customers
with products, services and hindered every aspect of their
interaction with the company. It follows from this that
management or managers are expected to put the customers
interest first in all situations, even (in some views, especially)
when these appear to conflict with other business priorities.
These is a kind of Macho customer focus culture which
69
reserves heroic status, from those who have acted
disproportionately and reasonably on their customer’s behalf,
such as the legendary Nord Strain’s employee who accepted
the return to defective times, knowing full well that Nord
Strains’ has never sold times.
(iii) Process is at least as importance as results. This represents a
subtle and powerful extension of the idea that consistent results
depend on consistent process- the independence is elevated to
equivalence. On this view it is the managers responsibility to
behave as a student he cannot simply achieve the right answer
(result) but must demonstrate the supporting data and
“calculation” (process) and in line with the first principle noted
above, process inevitably means team work, which means in
practice that he must not only demonstrate the “calculation” but
achieve consensus. However, this is all the good since
implementation, will be facilitated and organizational
capabilities will be enhanced.
(iv) Having achieved their status through experience, education;
technical and or leadership skill managers have reason to
believe that they have more to contribute in their area of
responsibility than any of their subordinates or any team
composed of their subordinates. Similarly, by virtue of their
70
functional, specialization, this situation holds true for their peer
group and even for their less specialized superiors (Ward,
1998).
Also because managers usually have broader and faster to more
sources of formation, they naturally believe that they are better
informed than others, they may accept that their values have distanced
them from the Gemba (where the action is) by this they do not
perceive this as a significant limitation. The common response to this
argument is very grudging, partial acceptance coupled with an
imputation of the motives. Even though managers do have more
ability to contribute in some cases, but they certainly do not know
everything (especially what’s really going on in Gemba) and besides
they should share their knowledge and so increase everyone’s ability.
Otherwise, they are just trying to preserve their own status; for TQM
advocates that settles the matter. But many managers do not accept
that the knowledge they have acquired over years of experience is so
readily transferable and they resent the accusation that they value
their place in the hierarchy and the hierarchy itself are in some way
illegitimate, derived not from merit but from the appropriation of
knowledge that is the rightful entitlement of all employees. Finally, at
the practical level they believe that involving others in areas of their
own expertise will at best delay matters and at worst produce sub
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optional result. (the cliché about the lunatics takings over the asylum”
may escape the tips of the less politically careful) as one senior
manager asked in complete the wrong decision”. Not everything is a
process (in the TQM sense of the word).The most important things-
insight, instinct, talent and creativity-do not benefit from process
improvement efforts. This argument draws a distinction between
explicative activities such as manufacturing, purchasing and creative
activities such as design and strategy sophisticated manager a degree
of fuzziness at the boundaries but nonetheless maintain that in certain
situations the just right feelings” should dictate direction and that
there are meaningful contributions beyond the reach of data and
analysis. These managers are not only managers but managers’
contributions are justified in resisting efforts to systematic, the truly
important aspects of their work and the associated participation of
other employees therein.
2.17 The Quality intervention process
There are some principles that guide any organizational
intervention intended to improve quality.
1. Management commitment
� Plan (drive, direct)
� Do (deploy, support, and participate)
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� Act (recognizes, communicate, revise)
2. Focus on work processes. The quality of products and services
depends most of all on the processes by which they are
designed and produced, management must train and coach
employees to asses, analyze and improve work processes.
3. Customer focus:
� Supplier partnership
� Service relationship with internal customers
� Never compromise quality
� Customer driven standard
4. Employee empowerment
� Training
� Suggestion scheme
� Measurement and recognition
� Excellence team
5. Continuous improvement
� Systematic measurement
� Excellence team
� Cross-functional process management
� Attain, maintain, improve standards
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Akpeiye (1996:28) observes that the core concepts are:
• Achieve quality in everything: processes, products/services
• Do the right things at the right time continuously striving for
improvement
• Manage business through team building and team working
• Strengthen the supplier-customer chain
• Flatten hierarchies and table structures.
• Reduce cost of bad quality by investing substantially in cost of
good quality
• Investing substantially in cost of good quality
• Use total quality tools to generate hard facts to manage
business rather than depend on opinions or whims.
• Provide quality leadership and motivation to enable all
employees commits themselves to the total quality process.
On his part, MacDonald (1992:31) identified four different principles
of TQM.
� The process chain: That is work should not be isolated within
the department fortresses but should be divided into series of
activities or process. Each link must be equally strong, getting
it right first time at each stage.
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� Recognizing the internal customers and suppliers: A
fundamental objective of TQM is to ensure that everyone
realizes that they are in a customer supplier relationship.
� Communication: The traditional communication system of
directing information downward only should be changed. The
direction should be two ways that is upward and downward.
� Brining joy to work: It is believed that most of the problems in
the organization are caused by the system and not the people
and management should concentrate on measuring the system.
They should ensure that the system works and set objectives for
people that create trust and collaboration.
2.18 TQM FOCUS/DRIVERS
According to Eze (2000) the key drivers of TQM are:
� Integration
� Continuous improvement
� Customer focus
1. Integration: It is an attempt by the organization to achieve
uniform concept of quality across the whole organization and
attain harmonious interdependence and co-operation amongst
its various submits and components. This to achieve
integration, TQM proposes the following:
75
� Process thinking and management
� Employee involvement
� Cross-functional team
� Brain storming
� Training and development the inverted pyramid
2. Continuous Improvement: This is the belief that no system is
beyond improvement. This improvement could be innovative-
involving large dramatic changes of small incremental changes.
3. Customer focus: Here, we have internal customers and
external customers.
Internal customers comprise suppliers, organizational employees and
the marketer/dispenser of the products/services. These are the people
whose activities bear on the overall quality of the organization’s
output. They are the customers of the process.
External customers are those who benefit from the end
products of the organization. These are the people who are regarded
as the true customer in the traditionally sense. TQM however,
proposes that internal customers should be treated carefully just as the
external customer or even better, that is employees should be treated
the same way you want them to treat customers.
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The concept of productivity is also increasingly linked with
quality-of output, input and the process itself. An element of key
importance in the quality of the workforce, its management and its
working condition, and it has been generally recognized that rising
productivity and improving quality of working life do tend to go hand
in hand.
The benefits of TQM implementation cannot be overemphasized; it
enhances productivity. It touches on all aspects of an organization and
these include:
� Better employee relations
� Corporative regulation of efforts
� Increased probability, frequency and consistency of making
good products and services.
� Higher potential profitability
� Dynamic integration of activities into an effective total system.
� Uniformity and consistency of quality objectives
� Specification of the interrelationships of subsystem
� Systematic solutions of quality problem in a organization.
Banks that applies TQM in the discharge of its services to the
customers benefits a lot in the following areas.
• Waste minimization
• A greatly improved product and services
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• TQM provides the best opportunity to increase profit.
• Help in retaining customers as well as adding more customers
to their market size.
• It fosters the spirit of togetherness and unity
• It sustain, competitive advantage
• It motivate work force
• It eliminates much hassle and frustration involved in
management.
• The practice of TQM will engender boost in technological
advancement.
• It helps organization members to see originations from holistic
perspective and thus minimize the dysfunctions associated with
departmental rivalry and empire building.
2.19 TOOLS OF TOTAL QUALITY MANAGEMENT (TQM)
The first TQM tool is the Statistical Process Control (SPC).
SPC is a statistical method through which managers can control the
production or the service delivery process, in order to make shifts
attempting to improve it. The basic objective of SPC is to reduce
variation which is inherent in many processes. SPC is one of the most
well- known management methods.
78
The second technical aspect of TQM is the ISO 9000 series.
The international standards organization (ISO) 9000 is perhaps the
most popular quality improvement system. It is an international set of
documents widely known as standard written by a worldwide
organizations known as the ISO. This set of standard ensures that a
company has a specific quality improvement policy, which makes it
more competitive in the market. This aspect of competitiveness is one
that makes ISO 9000 very popular among Nigerian oil firms
(Oakland, 2005).
Histograms are useful TQM tools. Histograms graphically
demonstrate the relative number of occurrences of a wide range of
events (Psychogios, 2005). The most important causes are shown on
the diagram and correcting actions take place. The tree diagram,
which is also known as systematic diagram method (Dale, 2005), is a
tool through which someone can arrange targets, problems, or
customer is needs in a specific order.
The fifth technique is critical path analysis (CPA). The tool is
associated with managing projects. It is related to TQM because
project management is critical to the implementation of quality
programs within an organization. CPA seeks to establish through the
use of a network of arrows or nodes, a logical order of activities in
terms of time and importance for the completion of a project.
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Benchmarking is a tool of TQM used to learn the best practice within
and outside the industry. It is relevant in that it can help the firm find
ways to improve processes and systems. It may involve comparing
company’s financial and operating performances of various internal
departments against each other. It enables organization to focus on the
changes in management capability on areas where it yields the best
through improving quality, productivity and customer satisfaction.
2.20 THE DEMING PRINCIPLES FOR TOTAL QUALITY
MANAGEMENT
Total quality management system relates not just to the
technical quality of the products, but more to the quality of
performance of every function in the company. This recognizes that
the quality and cost of a product, and the level of service provided,
depend on its design, the lead times, the process reliability, the choice
of materials and the effectiveness the supporting functions such as
suppliers and administrative staff. What distinguishes a total quality
company from a traditional one is the way in which its people think
and act; the value that such people place on quality of performance in
every activity, and what they do to improve the quality of their work.
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This attitude can be described as a culture, which defines how people
at work share with each other and how they do things on a daily basis.
The principles that govern the implementation of a total quality
system, and which have proved effective over numerous applications,
were originally laid down by Dr. W.S. Deming and developed by
others such as Dr. J.M. Duran and Dr. K. Ishikawa. These Principles
are as follows:
� Innovate in all areas including training, and provide resource to
assist. Maintain an innovative and vigorous training pogramme.
� Learn the “zero-defect” philosophy and the need for continued
improvement.
� Do not rely on mast inspection for quality. Put quality
prevention on-line via SPC.
� Reduce the number of suppliers and develop them for
continuous improvement of service as well as cost.
� Use statistical techniques to identify resource of water and cure
both sysc1n faults and, local faults at source.
� Ensure that organizational and management systems support
innovation and continuous improvement.
� Provide supervision with on-line techniques for problem
identification and problem solution via their teams.
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CHAPTER THREE
RESEARCH METHODOLOGY
3.1 RESEARCH DESIGN
In view of Agbaeze (2004) in Agu,(2011:24), research design
is simply a map or plan of action showing what and how the
researcher will carry out the step-by-step procedure for accomplishing
the research task. For the purpose of this work survey design will be
adopted.
3.2 SOURCES OF DATA
The data to be used for this research work will be obtained
from two sources namely; primary and secondary sources.
3.2.1 Primary Sources
In collecting primary data for the work, structured
questionnaire and oral interview will be used. By way of validating
and authenticating the data obtained from the secondary sources, the
researcher conducted a personal (oral) interview on the staff of
Phenomar farms.
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3.2.2 Secondary Sources
The secondary sources will involved the use of existing
researches for the purpose of contributing their quota to the problem
under study. Specifically, the materials to be used for extracting
secondary data for this study include journals, news bulletins, and
internet.
3.3 INSTRUMENTS FOR DATA COLLECTION
The instruments for data collection in this research work
include structured questionnaire and oral interview schedule.
3.4 POPULATION OF THE STUDY
The population of study is made up of 456 employees of
Phinomar Farms Ltd. This comprises the management and technical
staff of the poultry farm.
3.5 SAMPLE SIZE DETERMINATION
The formula adopted in determining the sample size for this
study is that pro-pounded by Taro Yamane (1964). The mathematical
formula is given as:
n = N
1 + N(e)2
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Where;
N = sample size
N = population size
E = maximum acceptable margin error (0.05)
Thus, applying this formula in determining the sample size for this
study, we substitute as follows:
n = 456
1 + 456(0.05)2
n = 456
1 + 456(0.0025)
n = 456
1 + 1.14
n = 456
2.14
n = 213
3.6 RELIABILITY AND VALIDITY OF RESEARCH
INSTRUMENT
3.6.1 Reliability of Research Instrument
The reliability of the instrument was determined by a pilot
study. Test-retest was done using twenty (20) questionnaires
administered to employees of Akiota works ltd. All the questionnaires
distributed were completed and returned. Using Karl Pearson product
84
moment correlation coefficient, the items of the survey was found to
consistent because the correlation coefficient (r) was found to be
high, (r = 0.64).
Computation of Products Moment Correlation (r)
Average
Response
X
Average
Response
Y
XY X2
Y2
1 2 3 6 4 9
2 4 5 20 16 25
3 4 3 12 16 9
4 4 5 20 16 5
5 5 4 20 25 16
6 4 4 16 16 16
7 5 5 25 25 25
8 4 5 20 16 25
9 3 3 9 9 9
10 5 5 25 25 25
11 4 4 16 16 16
12 4 5 20 16 25
13 5 4 20 25 16
14 4 4 16 16 16
15 5 4 20 25 16
16 2 3 6 4 9
17 4 3 12 16 9
18 4 5 20 16 25
19 5 4 20 25 16
20 4 4 16 16 16
81 82 339 343 348
Correlation coefficient(r) = ± Sxy
SxSy
Where Sxy = ∑ xy = (xy) (∑y)
n n n
85
Sx = ∑x2 – (∑X)
2
n n
Sy = ∑Y2 - (∑Y)
2
n n
Sxy = 339 - = 16.95 (4.05 x 4) = 16.65
Sx = 343 - = 17.1 – 16. = 0.7
= 0.837
Sy = 348 - = 17.4 – 16.81 = 0.59
= 0.768
0.345 = 0.636
0.643
r = 0.64
3.6.2 Validity of measurement
To ascertain the validity of the instrument, it was subjected to
panel of examiners comprising of seven management experts who
examined the items and made sure they were in line with the
objectives of the study. The structure and language of the
questionnaire was modified in the light of their corrections. The
instrument was structured in such a way as to minimize the effect of
errors like inconsistency and ambiguity.
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20
82
20
81
20
2
81
20
2
86
3.7 TOOLS FOR DATA ANALYSIS
Data obtained in a research work can be treated with any
technique depending largely on the objective and nature of the study
and data obtained. In this study, tables and percentages, Z-test, chi-
square and correlation statistical tools were employed for analysis.
Biographical information was analyzed with percentages, hypotheses
I was analyzed using Z-test, hypothesis II analyzed with chi-square
statistical tool, while hypothesis III was analyzed using Pearson’s
correlation.
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CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
The focus of this chapter is on the presentation and analysis of
data generated through interviews and questionnaires administered to
the respondents. Tables were used in presenting the data generated;
the descriptive statistics of simple percentages was used to analyze
the biographical information and responses to questions in the
questionnaire, while correlational analysis and chi-square statistical
test were used to test the hypotheses.
Table 4.1: Questionnaire Distribution
Number
Distributed
% Number
Returned
% Not
Returned
%
213 100 210 98.6 3 1.4
Source: Field Survey, 2013.
The table 4.1 shows number of questionnaire administered. It
shows that out of 213 copies of the questionnaire distributed, 210
were returned while 3 copies were not returned. This indicates a high
response rate of 98.6%.
4.2 Sex Distribution
Option Respondents Percentage
Male 100 47.62
Female 110 52.38
Total 210 100
Source: Field survey, 2013.
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From table 4.2, 100(47.62%) out of the 210 respondents are
male while, 110(52.38%) are female. This shows that there are more
males working at Phinomar Farms, than females.
Table 4.3: Marital status of Respondents
Option Respondents Percentage
Single 110 52.38
Married 60 28.57
Widowed 35 16.66
Divorced 5 2.38
Total 210 100
Source: Field survey, 2013.
Table 4.3 shows that 52.38% of the respondents are singles,
28.57% are married, 16.66% are widows while, 2.38% are divorced.
This shows that there are more singles than all other categories in the
poultry farm.
Table 4.4: Educational Qualification
Option Respondents Percentage
OND/NCE 130 61.91
B.Sc/HND 70 33.33
M.Sc/MBA 10 4.76
P.hD - -
Total 210 100
Source: Field survey, 2013.
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The table shows that 61.91% hold OND/NCE, 33.33% of the
respondents hold B.Sc/HND, 4.76% hold M.Sc/MBA while none has
PhD. This shows that there are more holders of lower academic
qualifications in the poultry farm.
Table 4.5: Years of Experience.
Option Respondents Percentage
2 years or less 34 16.19
3-5 years 66 31.42
6-10 Years 110 52.38
Total 210 100
Source: Field survey, 2013.
Table 4.5 shows that 16.19% of the respondents have been in
the industry for less than two years, 31.42% have been in the industry
between 3-5years while 52.38% have been in the industry between 6-
10 years.
Table 4.6: Respondent’s Age
Option Respondent’s Percentage
20-30 years 140 66.67
31-40 years 50 23.81
41-50 years 20 9.52
Total 210 100
Source: Field survey, 2012.
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Table 4.6 presents the age of the respondents, 66.67% are
between 20 – 30 years, 23.81% are between 31 – 40 years, and 9.52%
are between 41 – 50 years. This shows that there are more youths in
the poultry farm.
4.2 QUESTIONNAIRE ANALYSIS
Table 4.7: Implementation of TQM and reduction of scraps
Option Number Percentage
Strongly Agree 130 61.91
Agree 76 36.19
Undecided 2 0.95
Disagree 2 0.95
Strongly Disagree - -
Total 210 100
Source: Field Survey, 2013
The question was designed to examine the effect of TQM on
the reduction of wastes at Phinomar Farms ltd. The response shows
that 130 (61.91%) respondents strongly agreed that TQM
implementation reduces wastes, 76 (36.19%) respondents agreed,
while 2 (0.95%) respondents were undecided. However, 2(0.95%)
respondents disagreed and no respondent strongly disagreed that
TQM reduces the quantity of wastes at Phinomar Farms Ltd.
91
Table 4.8: TQM and reduction in the frequency of materials
purchase
Option Number Percentage
Strongly Agree 136 64.76
Agree 70 33.33
Undecided - -
Disagree 4 1.91
Strongly Disagree - -
Total 210 100
Source: Field Survey, 2013
Table 4. Shows that 136 (64.76%) respondents strongly agreed
that TQM reduces the frequency of materials purchase, 70 (33.33%)
respondents agree and no respondent was undecided. A total of four
(1.91%) respondents disagreed that TQM reduces the frequency of
materials purchase and no respondents strongly disagreed.
Table 4.9: Quality management and reduction of unit cost of
items
Option Number Percentage
Strongly Agree 86 40.95
Agree 120 57.15
Undecided 2 0.95
Disagree - -
Strongly Disagree 2 0.95
Total 210 100
Source: Field Survey, 2013.
Table 4.9 shows that 86 (40.97%) respondents strongly agreed
that quality management reduces unit cost of products, 120 (57.15%)
92
respondents agreed and 2 (0.95%) respondents were undecided.
However, no respondent disagreed while 2 (0.95%) strongly
disagreed that quality management reduces unit cost of products.
Table 4.10: Quality management and reduction in idle time
Option Number Percentage
Strongly Agree 70 33.33
Agree 75 35.72
Undecided 20 9.53
Disagree 35 16.65
Strongly Disagree 10 4.77
Total 210 100
Source: Field Survey, 2013
The question was designed to find out the effect TQM on idle
time reduction. The responses show that 70 (33.33%) respondents
strongly agreed that quality management reduces idle time,
75(35.72%) respondents agreed while 20(9.53%) were undecided.
Thirty five (16.65%) respondents disagreed and ten (4.77%)
respondents strongly disagreed that TQM reduces idle time,
respectively.
93
Table 4.11: Quality management and increment in number of
goods produced
Option Number Percentage
Strongly Agree 180 85.72
Agree 28 13.33
Undecided 2 0.95
Disagree - -
Strongly Disagree - -
Total 210 100
Source: Field Survey, 2013
Table 4.11 shows that 180(85.72%) out of 210 respondents
strongly agreed that quality management brigs about increment in
quantity of products produced, 28(13.33%) respondents agreed while
2 (0.95%) respondents were undecided.
Table 4.12: Quality management and expansion of customer base
Option Number Percentage
Strongly Agree 78 37.15
Agree 67 31.90
Undecided 33 15.71
Disagree 20 9.53
Strongly Disagree 12 5.71
Total 210 100
Source: Field Survey, 2013
94
Table 4.12 shows that 78 (37.15%) respondents strongly agreed
quality management expands customer base, 67 (31.90%) agreed
while 33(15.71%) were undecided. It also shows that 20(9.53%) and
12 (571%) respondents disagreed and strongly disagreed, respectively
that quality management expands customer base.
Table 4.13: TQM and improvement of employees’ morale
Option Number Percentage
Strongly Agree 70 33.33
Agree 75 35.72
Undecided 20 9.53
Disagree 35 16.65
Strongly Disagree 10 4.77
Total 210 100
Source: Field Survey, 2013
Table 4.13 shows that 70(33.33%) respondents proper
application of TQM brings about improvement on employees’ moral,
75(35.72%) agreed while 20(9.53%) respondents were undecided.
However, 35(16.65%) and 10 (4.77%) respondents disagreed and
strongly disagreed, respectively that application of TQM brings about
improvement on employees’ moral.
95
Table 4.14: TQM and improvement in the work process
Option Number Percentage
Strongly Agree 55 26.19
Agree 88 41.90
Undecided 15 7.14
Disagree 30 14.29
Strongly Disagree 22 10.48
Total 210 100
Source: Field Survey, 2013
The question was designed to examine the effect of TQM on
work process; it was found that 26.19% of the respondents strongly
agreed that TQM increases the efficiency of the work process,
41.90% agreed and 7.14% were undecided. While 14.29% disagreed,
10.48% strongly disagreed that TQM improves on the work process
at Phinomar Farms Ltd.
Table 4.15: TQM and increment in employees’ commitment
Option Number Percentage
Strongly Agree 78 37.15
Agree 67 31.90
Undecided 33 15.71
Disagree 20 9.53
Strongly Disagree 12 5.71
Total 210 100
Source: field survey, 2013
96
The question was designed to examine the effect of TQM on
employees’ commitment; it was found that 37.15% of the respondents
strongly agreed that TQM increases the employees’ commitment,
31.90% agreed and 15.71% were undecided. While 9.53% disagreed,
5.71% strongly disagreed that TQM improves on the employees’
commitment at Phinomar Farms Ltd.
Table 4.16: TQM and improvement in the quality of products
Option Number Percentage
Strongly Agree 130 61.90
Agree 76 36.19
Undecided 2 0.95
Disagree 2 0.95
Strongly Disagree - -
Total 210 100
Source; Field Survey, 2013
Table 4.16 shows that 130(61.90%) respondents strongly
agreed that TQM brings about improvement on the quality of
products, 76(36.19%) respondents agreed and 2 (0.95%) respondents
were undecided. However, 2(0.95%) respondents disagreed, no
respondents strongly disagreed that TQM brings about improvement
in the quality of products.
97
Table 4.17: TQM and improvement of total organizational output
Option Number Percentage
Strongly Agree 185 88.10
Agree 25 11.90
Undecided - -
Disagree - -
Strongly Disagree - -
Total 210 100
Source: Field Survey, 2013.
Table 4.17 shows that 185 (88.10%) respondents strongly
agreed that TQM brings about improvement in total organizational
output and 25(11.90%) respondents agreed.
4.3 TEST OF HYPOTHESES
To test the hypothesis stated in chapter one, Z-Test statistics,
Chi-square and Pearson correlation coefficient were employed, aided
by computer Microsoft special package for social sciences (SPSS)
Hypothesis one: TQM has significant positive effect on cost
reduction at Phinormah Farm Ltd.
98
Table 4.18:Descriptive Statistics
N Mean Std. Deviation Minimum Maximum
The effect of TQM
on cost reduction
210 4.5245 .54918 1.67 5.00
Table 4.18 displays the descriptive statistics of TQM and cost
reduction. It had a mean score of 4.5245 and standard deviation of
5.4918.
Table 4.19: One-Sample Kolmogorov-Smirnov Test
The effect of TQM on
cost reduction
N 210
Normal
Parametersa,,b
Mean 4.5245
Std. Deviation .54918
Most Extreme
Differences
Absolute .224
Positive .193
Negative -.224
Kolmogorov-Smirnov Z 3.239
Asymp. Sig. (2-tailed) .000
a. Test distribution is Normal.
b. Calculated from data.
99
Decision Rule
Decision rule is to accept the alternate hypothesis if the
computed Z- Test value is greater than tabulated Z-Test value
otherwise reject the null hypothesis.
Decision
Since the Z-test computed Zc= 3.239 is greater than Z-test table
value Zt=1.96, the null hypothesis is rejected and the alternate
hypothesis is accepted. Thus, we conclude that Total Quality
Management reduces cost of operation in Phinorma poultry.
Hypothesis two: TQM has significant positive effect on goal
attainment at Phinomah farms Ltd.
Table 4.20:Descriptive Statistics
N Mean
Std.
Deviation Minimum Maximum
The effect of TQM
on goal attainment.
210 4.5245 .54918 1.67 5.00
100
The effect of TQM on goal attainment.
Observed N Expected N Residual
1.67 2 35.0 -33.0
2.67 2 35.0 -33.0
4.00 70 35.0 35.0
4.33 6 35.0 -29.0
4.67 44 35.0 9.0
5.00 86 35.0 51.0
Total 210
4.21:Test Statistics
The effect of TQM on goal attainment.
Chi-Square 197.886a
Df 5
Asymp. Sig. .000
a. 0 cells (.0%) have expected frequencies less than 5. The
minimum expected cell frequency is 35.0.
Decision rule
101
The decision rule is to accept the alternate hypothesis if the
computed Chi-square value is greater than tabulated Chi-Square value
otherwise reject the null hypothesis.
Decision
Since the Pearson Chi-Square computed Xc2 =197.886 is
greater than Chi-Square table value Xc2=3.84, the alternate hypothesis
is accepted and null hypothesis is rejected. Thus, we conclude that
there is a significant effect of Total Quality Management on
organizational goal attainment at Phinorma poultry industry.
Hypothesis three: There is a significant positive relationship
between TQM and employees’ productivity.
Table 4.22: Correlations
Total Quality
Management Productivity
Total Quality
Management
Pearson Correlation 1 .721**
Sig. (2-tailed) .000
N 210 210
Productivity Pearson Correlation .721**
1
Sig. (2-tailed) .000
N 210 210
102
Table 4.22: Correlations
Total Quality
Management Productivity
Total Quality
Management
Pearson Correlation 1 .721**
Sig. (2-tailed) .000
N 210 210
Productivity Pearson Correlation .721**
1
Sig. (2-tailed) .000
N 210 210
**. Correlation is significant at the 0.01 level (2-tailed).
Table 4.22 shows the correlation co-efficient significance values of number
of cases for the various study. The result in the correlation table shows that
there is a significant relationship between TQM and employees’
productivity (r= 0.721). the correlation coefficient shows strong
relationship between TQM and productivity.
103
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings
Based on the statistical analysis, the following were found:
(1) Total Quality Management reduces cost of operation in
Phinomar Farms Ltd. (The Z-test computed Zc = 3.239 is
greater than Z-test table value Zt=1.96).
(2) There is a significant effect of Total Quality Management on
organizational goal attainment at Phinomar Farms Ltd ( Chi-
Square computed Xc2 =197.886 is greater than Chi-Square table
value Xc2=3.84).
(3) There was a significant positive relationship between Total
Quality Management and Organizational productivity (r =
0.721).
5.2 CONCLUSION
TQM is a comprehensive system approach that works
horizontally across Phinomar Farms Ltd, involving all departments
and employees and extending backward and forward to include both
suppliers and clients/customers.
104
The transformation to a TQM programme depends on the
extent to which institutions successfully implement certain quality
management practices. Increased production, reduced wastes, lower
inventory levels, reduced lead times, higher flexibility and increased
employee satisfaction are among the benefits of a successful TQM
programme. What is critical is a thorough understanding of the
barriers that can impede an effective quality transformation. There is
ample evidence that quality management systems improve
institutional performance if properly implemented. The basic
principles of TQM are intended to achieve continuous organizational
improvement through the participation and commitment of workers
throughout a company. TQM focuses all the resources of an
organization upon meeting the needs of customers (both internal and
external), using statistical tools and techniques to measure results and
aid decision making. Therefore, it is important that the management
of Phinomar Farm Ltd continues to review, periodically, its process of
operation to ensure consistency.
5.3 RECOMMENDATIONS
Based on the findings of this study, the following
recommendations were made:
105
1. To ensure increased benefits of TQM, Phinomar farm’s
management should strike to be customer focused.
2. There should be continuous evaluation and re-evaluation of
process of operation.
3. Phinomar farms should develop a process that incorporates
quality during production, rather than a process that attempts to
achieve quality through inspection after resources have already
been consumed to produce the good or services.
4. There should be increased receptiveness to feedback to
improve on quality.
5. There should be an improved employee’s empowerment and
compensation
6. Fact-based decision making is also advocated.
5.4 SUGGESTIONS FOR FURTHER STUDIES
Given the nature of this study, the following are suggested for
investigation.
(1) The role of TQM in the performance of Nigerian Universities.
(2) An appraisal of the barriers to effective implementation of
TQM principles in the Nigerian environment.
106
BIBLIOGRAPHY
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De Cock, Christian, and Ian Hipkin (1997). "TQM and BPR: Beyond
the 'Beyond' Myth." Journal of Management Studies 34, (5).
Deming, W. E (1982). Out of the Crisis. Cambridge, MA: MIT
Center for Advanced Engineering Study.
Goetsch, David L., and Stanley D (1995). Implementing Total
Quality. Upper Saddle River, N.J.: Prentice-Hall.
Hall, Robert (1987). Attaining Manufacturing Excellence. Burr
Ridge, Ill.: Dow-Jones Irwin.
Hiam, A (1992) Closing the Quality Gap: Lessons from America's
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Spencer, Michael S., and Leslie K. Duclos. (1998)"TQM Stresses
MIS: The Ache of Continuous Change." Mid-American
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109
APPENDIX I
Department of Management,
Faculty of Business Administration,
University of Nigeria,
Enugu Campus.
-------------------------------------
-------------------------------------
-------------------------------------
Dear Respondents,
RE: THE ROLE TOTAL QUALITY MANAGEMENT IN THE
PERFORMANCE OF POULTRY INDUSTRY: A STUDY OF
PHINOMAR FARMS NIG. LTD.
I write to solicit your assistance in filling this questionnaire
designed to address the above stated topic. The research is carried out
in partial fulfillment of the requirement for the award of a Master of
Business Administration (MBA) in management.
The response will be treated in confidence and shall be used for
the stated purposes only.
Yours faithfully,
Nwonye Chibueze.
(Researcher)
110
QUESTIONNAIRE
SECTION A: BIOGRAPHICAL INFORMATION
Please tick accordingly [√]
1. Sex:
a. Male [ ]
b. Female [ ]
2. Marital Status
a. Single [ ]
b. Married [ ]
c. Widowed [ ]
d. Divorced [ ]
3. Education Qualification
a. WASC/GCE [ ]
b. HND/NCE [ ]
c. HND/B.Sc [ ]
d. M.Sc/MBA [ ]
e. P.hD [ ]
4. Year of Experience
a. 0-3 years [ ]
b. 3- 5 years [ ]
c. 6 – 10 years [ ]
d. 11years and above [ ]
5. Age of Respondents
a. 20 – 30 year [ ]
b. 31 – 40 years [ ]
c. 41 - 50 years [ ]
111
SECTION B
Note: Tick (√) in the option that matches your opinion.
QUESTIONNAIRE
Str
on
gly
Ag
ree
Ag
ree
Neu
tra
l
Dis
ag
ree
Str
on
gly
dis
ag
ree
6. Implementation of TQM principles
reduces scraps
7. TQM reduces frequency of materials
purchase.
8. Quality management reduces unit cost
of items.
9. Quality management reduces idle time.
10 TQM brings about increment in
number of good produced.
11 Quality management brings about
expansion of customer base.
12 QM improves employees’ morale.
13. TQM improves on the work process.
14. TQM bring about increment in
employees’
15. TQM help to improve the quality of
products.
16. Quality management determines total
organization output
112
DECLARATION
I, Nwonye Chibueze, a student in the Department of Management
with Registration No. PG/MBA/11/60374, state that the work
embodied in the project is original and has not been submitted in any
other University.
_____________________________
Nwonye Chibueze
PG/M.Sc/11/60374
113
APPROVAL
The dissertation titled The Role of Total Quality Management
(TQM) in the Performance of Poultry Farms in Enugu State, Nigeria
has been approved by the Department of Management, Faculty of
Business Administration University of Nigeria, Enugu Campus,
Enugu for the award of Master’s of Science (M.Sc) in management.
…………………………… ………………………
Dr Agbaeze, E.K Date
(Supervisor)
…………………………. …………..……………
Dr. O.C. Ugbam Date
Head of Department
115
ACKNOWLEDGEMENTS
I wish to first of all acknowledge my parents, Late Igwe and
Lolo I.O.M Nwonye for giving me birth. My gratitude also goes to
the love of my life, Uche who encouraged me to complete this
program.
This work would not have been finished without the super
guidance of my Project Supervisor, Dr. E.K. Agbaeze, I am indebted
to you.
I also appreciate all the lecturers in the Department of
Management in particular and Faculty of Business Administration in
general. The immediate past Dean of the Faculty, Professor U.J.F.
Ewurum, Dean of the Faculty, Dr. Geraldine Ugwuona, Prof. Johnny
Eluka, Dr. C.A Ezigbo, Dr. I.N. Mba, Dr. Ann Agbo, Dr. V.A
Onodugo and Dr. B.I. Chukwu. I am indeed very grateful to all.
I also thank all the non-academic staff in the Department for
their co-operation and understanding shown through out the duration
of the programme.
To my Lord and personal Saviour, Jesus Christ, all Glory and
Praise to You my God. Lord lam in awe of you.
116
TABLE OF CONTENTS
DECLARATION . . . . . . . ii
APPROVAL . . . . . . . iii
DEDICATION . . . . . . . iv
ACKNOWLEDGEMENTS . . . . . v
TABLE OF CONTENTS . . . . . . vi
LIST OF TABLES . . . . . . . x
LIST OF FIGURES . . . . . . xii
ABSTRACT . . . . . . . xiii
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study . . . . . 1
1.2 Statement of the Problem . . . . 8
1.3 Objectives of the Study . . . . . 10
1.4 Research Questions . . . . . 10
1.5 Research Hypotheses . . . . . 11
1.6 Significance of the Study . . . . 11
1.7 Scope of the Study . . . . . 12
1.8 Limitation of the Study . . . . . 12
1.9 Historical Background of the Organizations
Under Study . . . . . . 13
117
CHAPTER TWO
REVIEW OF THE RELATED LITERATURE
2.1 Historical Background . . . . . 22
2.2 Definition of Total Quality Management . . 24
2.2.1 Total Employee Involvement . . . . 33
2.2.2 Continuous Improvement . . . . . 33
2.2.3 Teamwork . . . . . . . 34
2.2.4 Customer Satisfaction . . . . . 35
2.3 Development of TQM . . . . . 36
2.4 Conceptual Framework of TQM . . .. . 37
2.5 Evolution of Total Quality Management . . 41
2.6 Pioneers of Total Quality Management . . . 43
2.7 Principles of TQM . . . . . . 43
2.7.1 Objectives, Goals and Significance of
Total Quality Management . . . . 46
2.8 Effective Approaches to Application of TQM . 48
2.9 Key Steps in the TQM Process . . . . 50
2.10 The Characteristics of TQM . . . . 51
2.11 Approaches for Successful Application of TQM . 51
2.12 Benefits, Shortcomings and Cost of TQM . . 53
2.12.1 Benefits of TQM . . . . . . 53
2.12.2 Short-Coming of TQM . . . . . 54
118
2.12.3 The Cost of TQM . . . . . 55
2.13 Features of Total Quality Management 57
2.14 Sectorial Applicability of Total Quality
Management . . . . . . 58
2.14 The Core Values of TQM . . . . . 61
2.15 Advantages of Total Quality Management
(TQM) . . . . . . . 66
2.16 Reasons Why Some Management Would
Oppose TQM . . . . . . 68
2.17 The Quality intervention process . . . 71
2.18 TQM Focus/Drivers . . . . . 74
2.19 Tools of Total Quality Management (TQM) . . 77
2.21 The Deming Principles for total Quality
Management . . . . . . 79
CHAPTER THREE
RESEARCH METHODOLOGY
3.1 Research Design . . . . . . 81
3.2 Sources of Data . . . . . . 81
3.2.1 Primary Sources . . . . . . 81
3.2.2 Secondary Sources . . . . . 82
119
3.3 Instruments for Data Collection . . . 82
3.4 Population of the Study . . . . . 82
3.5 Sample Size Determination . . . . 82
3.6 Reliability and Validity of Research Instrument . 83
3.6.1 Reliability of Research Instrument . . . 83
3.6.2 Validity of measurement . . . . . 85
3.7 Tools for Data Analysis . . . . . 86
CHAPTER FOUR
PRESENTATION AND ANALYSIS OF DATA
4.1 Presentation of Data . . . . . 87
4.2 Questionnaire Analysis . . . . . 90
4.3 Test of Hypotheses . . . . . 97
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND
RECOMMENDATIONS
5.1 Summary of Findings . . . . . 103
5.2 Conclusion . . . . . . . 103
5.3 Recommendations . . . . . 104
5.4 Suggestions for Further Studies . . . 105
BIBLIOGRAPHY . . . . . . . 106
APPENDIX . . . . . . . 109
120
LIST OF TABLES
Table 4.1: Questionnaire Distribution . . . . 87
Table 4.2 Sex Distribution . . . . . 87
Table 4.3: Marital status of Respondents . . . 88
Table 4.4: Educational Qualification . . . . 88
Table 4.5: Years of Experience . . . . . 89
Table 4.6: Respondent’s Age . . . . . 89
Table 4.7: Implementation of TQM and reduction
of scraps . . . . . . 90
Table 4.8: TQM and reduction in the frequency
of materials purchase . . . . 91
Table 4.9: Quality management and reduction of unit
cost of items . . . . . 91
Table 4.10: Quality management and reduction in
idle time . . . . . . 92
Table 4.11: Quality management and increment in
number of goods produced . . . 93
Table 4.12: Quality management and expansion of
customer base . . . . . 93
Table 4.13: TQM and improvement of employees’
morale . . . . . . 94
121
Table 4.14: TQM and improvement in the work
process . . . . . . 95
Table 4.15: TQM and increment in employees’
commitment . . . . . 95
Table 4.16: TQM and improvement in the quality of
products . . . . . . 96
Table 4.17: TQM and improvement of total organizational
output . . . . . . 97
Table 4.19: One-Sample Kolmogorov-Smirnov Test . 98
Table 4.20: Descriptive Statistics . . . . 99
4.21:Test Statistics . . . . . . 100
Table 4.22: Correlations . . . . . . 102
122
LIST OF FIGURES
Fig. 2.1: Stages in the TQM process . . . . 50
Figure 2.2: The Pervasive Role of Quality . . . 54
123
ABSTRACT
In recent times management experts have been advocating Total
Quality Management as a management principle that must be adopted
by every organisation that intends to survive today’s hyper
competitive business environment. Total quality management (TQM)
has been described as a set of tools and techniques designed to
improve a firm’s effectiveness and efficiency. TQM is based on the
philosophy of meeting and exceeding customer expectations through
a systematic process that involves staff at all levels assuming
responsibility for continuous improvement in the firm’s daily
operational activities. It is therefore a process that involves everyone
in the organization working towards product improvements to meet
the continually changing demands of the customer. This study
therefore is an investigation into the role of TQM in the performance
of the poultry industry in Enugu State using Phinomar Farms Ltd as a
case study. This study was carried out using structured questionnaires
that was applied on 213 staff of the organisation, having determined
the sample size using the Yaro Yamane technique. In this study,
percentages, Z-test, chi-square and Pearson’s correlation were
employed as statistical tools for data analysis. The results of these
analyses indicate that TQM reduces operational costs, facilitates the
attainment of organisational objectives and improves productivity.