CHAPTER
ONE
INTRODUCTION
1.1 Background to the Study
Total
quality management is known as the primary role of management to lead an
organization in its daily operations and maintains it as a viable entity into
the future. Quality has become an important factor in these. Although
ostensibly always. an objective of business is customer in customer terms,
because a specific goal in the late 1980’s provide higher quality are
recognized as a key element for success, most large operations taking that path
have document the success, first they survived the competitors that has set the
higher quality levels and now have regained some of their former market. Total Quality Management is perhaps the
leading management approach that compares employed to improve their product and
services, quality with the aim of improving typical measures of business
performance. (e.g profit, increased
market share reduced cost) Oakland (2010). The Japans have capture more than
30% of the American and electronic markets.
It was achieved by offering higher value products. In response to the boom in the competitor
market, many American firms have implemented require the integration of Human
resources, production engineering store and purchasing marketing, distribution,
and planning is a continuous improvement process; it is much wider than
the traditional quality view of incoming inspection and process control. It
means that the entire organization is working as a team including the cooperate
top managers and each an every employee, it is on innovative way of thinking
that affect the culture, the strategy and technology of company. Lender, Johnson, Flynn and Fearon
(2006). The organization needs a holistic approach so
that every department in the organization should come together for cost
reduction and improve products, approach will reduce cost and quality will be
achieve for competitive advantage.
1.2 Statement
of the Problem
This
Empirical research has identified some general problems that are associated
with Total Quality Management which are listed below. Lender, Johnson, Flynn and Fearon
(2006) depicts that One of the problems is the failure of
organization to understand the importance of material quality control and often
ignore its application. This has led to the receipt of low quality and
substandard lots of materials into the in process, culminating in poor quality
out put and increased cost for these organizations.
The
problem of organization over-relying on suppliers ability as a result of trust
thereby falling to check and/or monitor the incoming materials for any possible
defect or deviations from specification.
Others
are manpower related problems were also observed to be a major barrier for
achieving a Total quality management program. Most organizations lack the
service of specialists to handle materials quality control trained/retrained or
lack of proper supervision due to top management neglect.
Facilitates
related problem in organizations, there are inaccuracies in machineries, tools,
fixtures, measuring instruments etc.
that are required in managing quality and total quality control process which
can be disastrous for decision making as a result of the unreliable outcomes.
The existence of these problems brought about the head for the research work so
as to proffer solutions that are workable at the end.
1.3 Objective
of the Study
The
primary objective of the study is to identify the impact of quality management
on production cost of an organization.
i)
To identify the challenges faced by
manager in implementing Total Quality Management
ii)
To identify the major cost component of
Total Quality Management
iii)
To identify the contribution of Total
Quality Management on material and cost reduction
iv)
To identify the method the Nigeria
Bottling Company used in storage of raw material
v)
To identify the attributes of quality
products
1.4 Significance
of the study
The
study will be of immense benefit to the researcher, the organization under
study in achieving its goal and objective, other researcher, and the general
public. It is sincerely hoped that the result of the study will be applied in
areas that need to be improved in the organization under study. The study will
also widen the horizon of the research on the topic under study and it will
serve as reference to the researchers.
1.5 Research
Questions
i) What are the challenges faced by manager
in implementing total quality management?
ii)
What are the major cost components of
quality management?
iii)
What are the contribution of quality
management on material and cost reduction?
iv)
What method does the organization used
in storage of raw materials?
v)
What are the attributes of quality
products?
1.6 Scope
of the Study
The
research is limited to Nigerian Bottling Company Kakuri Kaduna Plant, the
research will look at the entire concept of Total Quality Management as well as
the major cost component of production and finally the application of Total
Quality Management on material cost of production and finished goods cost. The
research will cover the period of 2010-2014
1.7 Definition of Terms
Quality: Fitness
for purpose at lowest cost
Management:
the process of planning organizing coordinating directing and controlling.
Effectiveness:
the ability to bring about the intended result in respective of cost
Quality
management: this is the overall management function
that determines and implements quality policy.
Specification:
this is the detailed description of an item.
Scrap:
this is defect, materials or staffs that cannot be repaired or used
Total
Quality management: (TQM) this is a management approach to
an organization centered on quality based on participation of all its members
of the organization and society.
Inspection:
To check incoming materials with specification so as to accept or reject based
on evaluation.
Performance:
performance means doing a job as per specification with efficient use of
resources.
Reliability:
the ability to yield an acceptable outcome consistently.
Materials:
materials are resource used directly or indirectly to produce or incorporate
finish goods.
Purchasing:
the management functions of buying the right materials from the right source,
at the right quality, at the right price, at the right quantity and purpose as
economically as possible.
Standard:
A predetermined and accepted way of doing things or the accepted state of things.
1.8 Outline
of the Chapter
This
study is organized into five chapters. Chapter one is the introduction which
gives the background of the study. It also give the statement of the problem,
Research question, objective of the study, significant of the study, scope of
the study and plan of the study, the chapter in addition gives the definition
of key terms. Chapter two presents relevant, comprehensive and related
literature review that will be done to familiarize oneself with previous work
already done in this particular research field. Chapter three, deals with
research methodology. It deals with the introduction of the chapter, population
size and sample, source of data techniques of data analysis. Chapter four,
deals with data presentation analysis and interpretation, introduction of the
chapter, presentation of data, analysis of data, major findings and summary of
the chapter. Finally, chapter five contains summary, recommendation and
conclusion based on finding of the study