Post on 07-Feb-2020
THE APPLICATION OF BENCHMARKING AND TOTAL QUALITY
MANAGEMENT (TQM) AS TOOLS IN GAINING COMPETITIVE
ADVANTAGE: A STUDY OF MAY AND BAKER PLC AND UNILEVER
NIGERIA PLC
BY
UDEIGWE GODFREY OKECHUKWU
PG/MBA/07/46621
DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA
ENUGU CAMPUS
NOVEMBER, 2008.
TITLE PAGE
THE APPLICATION OF BENCHAMARKING AND TOTAL QUALITY
MANAGEMENT (TQM) AS TOOLS IN GAINING COMPETITIVE
ADVANTAGE: A STUDY OF MAY AND BAKER PLC AND UNILEVER
NIGERIA PLC.
BY
UDEIGWE, GODFREY OKECHUKWU
(PG/MBA/07/46621)
A PROJECT SUBMITTED IN PARTIAL FULFILMENT OF THE
REQUIREMENTS FOR THE AWARD OF MASTER OF BUSINESS
ADMINISTRATION (MBA) DEGREE IN MANAGEMENT
TO THE
DEPARTMENT OF MANAGEMENT
FACULTY OF BUSINESS ADMINISTRATION
UNIVERSITY OF NIGERIA, ENUGU CAMPUS
NOVEMBER, 2008.
CERTIFICATION
This is to certify that UDEIGWE, GODFREY OKECHUKWU, a Postgraduate
Student of the Department of Management with Registration Number,
PG/MBA/07/46621 has satisfactory completed the requirement for the
course and research work for the post graduate Degree, Master of Business
Administration (MBA) in Management.
The work embodied in this report is to the best of my knowledge
original and has not been submitted in part or full for any other degree of
this or any other university.
…………………………………………..
Udeigwe, Godfrey Okechukwu
(PG/MBA/07/46621)
----------------------------------- ---------------------------- Chief J.A. Ezeh DR. U.J.F. Ewurum Supervisor Head of Department ----------------------- ---------------------- DATE DATE
DEDICATION
TO HIS MAJESTY, THE GOD OF ALL FLESH, ADONAI.
ACKNOWLEDGEMENT
Alas! The unending journey in search of this Golden Fleece christened
“MBA” started precisely six years ago is today a reality! All Glory be to God
Almighty, the creator of all things for seeing me through. I am highly
indebted to all my lecturers, especially my Supervisor, Chief J.A. Ezeh, for
his fatherly inspiration at every stage of this study.
I humbly acknowledge the work of many scholars in the area of my
study as they formed the bedrock of this treatise. My deep appreciation
goes to my colleagues in the Nigerian Air force especially my staff Officers,
Group Captain US Suleiman, Wing Commander I. Abatan, Flight
Lieutenants J. Rerri, S. Yakubu and a host of others, for their financial
support; my Pastor, Reverend Pastor Emeka Success Nnamani for his
prayers and moral support.
And to the memory of my beloved mummy, Lydia and Daddy, Chris
who are not alive to witness this epoch making event, the rest of my
brothers and sisters, in-laws and well wishers, your contribution to my
upbringing is well acknowledged.
Sister Anichunam, Ebere Cynthia typed the manuscript. For all the
remaining errors, I assume responsibility and would welcome any criticism
which will assist me for a better out put in my future endeavours.
UDEIGWE, GODFREY OKECHUKWU
ENUGU
2008.
ABSTRACT
The Application of Benchmarking and Total Quality Management (TQM) as new technology philosophy is one of the contemporary issues in the mind many management scientists and this is focus of this study. In the past, there was often this confusion in the mind of an average consumer in a developing country like Nigeria regarding the choice of the imported product he preferred, whether it is “the made-in-America” or “the made –in- Japan” especially in the area of electronics. But today, the case is different because he would readily prefer “The made –in- Japan” to “the made-in-America” product. Yet, most of the technologies applied in manufacturing the Japanese products originated in America. The secret behind the Japanese success story is anchored on a common management philosophy which the Japanese called “KAIZEN”, or the Total Quality Management (TQM) and this is the subject of this inquiry. Total Quality Management as a management philosophy is the brainchild of American scholars such as W.E. Deming, Joseph Jorum, Philip Cosby, Armgund and a host of others but it was given a practical relevance by the Japanese. Some attempts have been made to define Total Quality Management (TQM). According to Ramsey and Roberts (1992),” TQM is seen as people focused management system that aims at continual increase in customers’ satisfaction at continually lower real cost.” Also, Ewurum (2001) states that the goals of TQM are to integrate all 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. TQM aims at attaining a zero-defect products and Services by “doing the right thing first time and every time”. Another powerful tool supporting this study is the concept of Bench marking. Benchmarking, according to Mc George and Palmer (1997), is defined as “a process of continuous improvement based on the comparison of an organization’s processes or products with those identified as best practices. The best practice comparison is used as a means of establishing achievable goals aimed at obtaining organizational Superiority”. Bench marking does not end at comparing ones organization with that of the benchmark, it identifies the gap between its products and those of the benchmark and attempts to bridge this gap through a well planned strategy.
To achieve adequate courage, this project has been divided into five chapters. Chapter one examines the background of the Study, Statement of the study, significance of the study and definition of terms. Chapter two covers general review of related literatures, theoretical frame work of the study, research questions and statement of hypothesis while chapter three discusses research design and methodology, research approach, sources of data, research instruments and method of investigation. Chapter four continued with analysis of data and data presentation while chapter five concludes the research work with summary of major findings, conclusions and recommendations.
CHAPTER ONE
INTRODUCTION
1.0 BACKGROUND OF THE STUDY
In the past, there was often this confusion in the mind of an average
consumer in a developing country like Nigeria regarding the choice of the
imported product he preferred, whether it is “the made-in-America” or “the
made –in- Japan” especially in the area of electronics. But today, the case
is different because he would readily prefer “The made –in- Japan” to “the
made-in-America” product. Yet, most of the technologies applied in
manufacturing the Japanese products originated in America. The secret
behind the Japanese success story is anchored on a common management
philosophy which the Japanese called “KAIZEN”, or the Total Quality
Management (TQM) and this is the subject of this inquiry. Total Quality
Management as a management philosophy is the brainchild of America
scholars such as W.E. Deming, Joseph Jorum, Philip Cosby, Armgund and a
host of others but it was given a practical relevance by the Japanese.
Some attempts have been made to define Total Quality Management
(TQM). According to Ramsey and Roberts (1992),” TQM is seen as people
focused management system that aims at continual increase in customers’
satisfaction at continually lower real cost.”
Also, Ewurum (2001) states that the goals of TQM are to integrate all 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. TQM aims at attaining a zero-defect products and Services
by “doing the right thing first time and every time”.
Another powerful tool supporting this study is the concept of Bench
marking. Benchmarking, according to Mc George and Palmer (1997), is
defined as “a process of continuous improvement based on the comparison
of an organization’s processes or products with those identified as best
practices. The best practice comparison is used as a means of establishing
achievable goals aimed at obtaining organizational Superiority”. Bench
marking does not end at comparing ones organization with that of the
benchmark, it identifies the gap between its products and those of the
benchmark and attempts to bridge this gap through a well planned
strategy.
1.1.1 THE PROFILE OF MAY AND BAKER NIGERIA PLC.
May and Baker Nigeria PLC Commenced business in 1944 as a
trading company dealing with sales of human pharmaceuticals; laboratory
and photographic chemicals; horticultural and veterinary products. the
company was then incorporated as May and Baker (West Africa), being a
subsidiary of May and Baker Limited, United Kingdom. The company first
settled at 17A Tinubu street Lagos, from where it was relocated to its
present site, 3/5 Sapara street, Industrial Estate, Ikeja, Lagos, where it
built its factory.
With the factory built in 1976, May and Baker commenced local
manufacturing. And it changed its name from May and Baker (West-Africa)
to May and Baker Nigeria Limited the same year. Some of its early
products include Quinnacrinel Anti-malarial); Gonazole (anti-biotic) sonaryl
(sedatives) Ephedrine, Suylphonamides, Nivaquine (anti-malarial) and
Rovaycine (then a veterinary product).
having climbed to pre-eminence on the back of its well-known anti
malarial drugs (The Nivaquine range) and sulphonamides, the company
has since taken leadership position in the biological in the production of
biological (vaccines), onocolgy (cancer drugs), and the Anti-infective drugs;
and it is achieving a steady growth in her share of the Analgesics and anti-
hypertensive drugs market.
The company has undergone some re organization in recent time. In
1992, the company reorganized its business to concentrate on human
pharmaceuticals and human vaccines. Also, in 2001, it diversified into
consumer products with the introduction of lily Table water and in 2006, it
took further leap in the lucrative foods processing business by constructing
an ultra-modern pasta food processing factory in Ota, Ogun State where it
produces Mimmee brand of noodles.
May and Baker Nigeria PLC has Authorized share capital of five
hundred million naira (N500,000,000). It was listed in the Nigerian stock
exchange on November 10, 1994 and has 322 employees on its payroll.
May and Baker Nigeria PLC is 100 percent owned by Nigerians. Its 5-year
turnover results show a steady `rise from N 1.7 Billion in 2003 to N 3.8
Billion in 2007 with a profit after tax of N208.318 million in 2007. The
earning per share stood at 30k in 2007 result.
Nature of Business
May and Baker Nigeria PLC undertakes manufacturing, marketing and
distribution of Human pharmaceuticals, vaccines and sera, medical
diagnostics, food and consumer Health care products. Its range of products
include Lily Table water, Mimmee brand of noodles, Nivaquine (anti-
malarial), Gonazole (anti-biotic), Soneryl (sedative), vaccines, Qncology
(cancer drugs), Easodol (analgesic), 2-2-1 forte brand of chloroquine
sulphate, MalACT brand of Artemisimin combination Therapy (ACT) and
Thiapid.
Research and Development.
In May and Baker, a key objective is to search for and find remedies
for many unresolved local ailment. This is in line with its business
philosophy.
Business Philosophy
In May and Baker, we believe that you ( our customers) are the
reason for our existence and therefore we work hard to meet your needs
by ensuring that we give you Total Quality products.
Mission
To improve the quality of life; through out life, for all lives
Vision
To be among the top ten conglomerates in Nigeria by 2020.
1.1.2 PROFILE OF UNILEVER NIGERIA PLC
Unilever Nigeria Plc was incorporated as lever Brothers Nigeria on the
11th of April, 1923 under the name, Lever Brothers West Africa Ltd. In
1924, the name was changed to the West African Soap Co Ltd, a deliberate
attempt by its parent company, Unilever (Common wealth Holdings) Ltd to
reflect the formers major product and identify its name with its local
market – the British colonies of West Africa. The name was later changed
to Lever Brothers (Nig.) Ltd on 5th December, 1955. The present name,
Unilever Nigeria Plc came into being on 31st May 1973.
The company started with a share capital of N40, 000 wholly owned
and managed by Unilever (Common wealth Holdings) Ltd. In compliance
with Nigeria Enterprises promotion Decree (1972), the company became a
public company on 12th September, 1973 and had its shares listed on the
Nigeria Stock Exchange Market for 40 percent of its shares to Nigerians.
The share structure then became 60 percent to Unilever (Commoncealth
Holdings) Limited and 40 per cent to Nigeria investors. A total of 2,720,
000 of its ordinary share were sold to Nigerians. further implementation of
the Nigeria enterprises promotion decrees of 1977 saw the company
offering 10,200,000 ordinary shares representing 20 percent of the
company’s then equity capital to Nigeria investors, This changed the
company’s share structure to 60 percent for Nigeria investors and 40
percent to Unilever (common wealth holdings) Ltd.
The share capital of the company has risen from N17 million to N100
million at present.
The Company was initially established to serves as the sole distributor of
Unilever soap in the West African Sub-region. While serving this rule, the
company was able to identify a large untapped market capable of
sustaining a plant of economic size, as well as the availability of cheap and
abundant raw material and labour. This offered the advantages of low
production cost and enjoyment of economies of scale through high volume
sales. Hence, the Company established its first factory at Dockyard Road
Apapa, Lagos.
To be able to perform its dual roles of manufacturing and distributorship,
the company appointed some merchant houses as its distributors. Some of
the appointed merchant houses include G.B. Olivant, and John Holt with a
wide trading net work covering the various states of Nigeria.
DIVERSIFICATION
The gains of manufacturing locally with the new plant has been
manifested in the popularity of the key soap brand in Nigeria market and
this has necessitated diversification into the area of Margarine
manufacturing in 1954, toothpaste and toiletries, 1963. By 1971, the
production of squash drinks was added.
Unilever wide range of products include, soapi key and sunlight, Lux,
Astral, Asepso, Detergents: Omo and Surf, Toothpaste:- Pepsodent,
closeup; Edible Oils and Fats; Drunks:- Tree Top and so on.
1.2 STATEMENT OF THE PROBLEM
The world economy has gone through such sophistication in this era
of high technological inventions that organizations are beginning to look for
alternative ways of gaining competitive advantage other than through
technological invention. For instance, in the area of information technology,
Computer manufacturing has passed through phases of Pentiums I, II, III
and IV to Celerium at present, just within a decade such that computers,
manufactured barely five years ago, may become obsolete at present day
usage and this is very worrisome to entrepreneurs, on which way forward.
It is on this hopeless state, that the application of TOTAL Quality
Management (TQM) and Bench marking as a means of gaining competitive
edge becomes relevant and this is the premise of this study.
Total Quality Management (TQM) is a managerial philosophy which is
aim at viewing the issue of quality taking the organization as a whole and
not just thinking of high quality of its products alone. In other words, TQM
believes that various units, sections, and departments within an
organization should share the same concept of quality. It is a strategy for
improving business performance through the commitment of all employees,
from top management down to the bottom line in the process of meeting
up with the Customers’ requirements at the lowest overall costs through
continuous improvement of its products and services, business processes
and the people according to Luwaji (1996).
The world economy order has witnessed so many violent changes
that have placed business organization under press are as never before.
Some of these challenges include.
Collapse of time interval for decisions, planning and action as a
result of high information technology witnessed in all time on-line,
real-time and other processing mode.
Tremendous growth in peoples value awareness and value demands;
Collapse in the conventional boundaries of entrepreneurs leaders and
Managers.
The creation of new intersections, overlapping interconnection and
interactions in business area.
Growing internal disrupting and complexities of modern business
functions and structures;
Increased dislocation and collapse of conventional boundaries of
business management.
The increasing growth and dominance of the intangible values over
tangible values as measurement of performance or success;
The dominance of service providing organizations over the markets
with information, communication and knowledge based services. It is
against this background of highly volatile competitive business
environment that firms are forced to look into alternative ways of
gaining competitive advantage. The tool that has been employed by
many organizations today is the application of the Total Quality
Management (TQM) and Benchmarking. This study is saddled with
the responsibility of examining the extent to which TQM and Bench
marking as a management strategy adopted by May and Baker Plc
and Unilever Nigeria Plc has helped them in gaining competitive
advantage in the manufacturing industry in Nigeria.
1.3 OBJECTIVE OF THE STUDY
This Study is aimed at achieving the following objectives:-
To determine the impact of TQM and Benchmarking in sustaining
superior corporate performance by these organizations.
To establish the relationship if any between the resources of May
and Baker Plc, and Unilever Nigeria Plc in creating and sustaining
their respective competitive advantageous positions.
To determine whether the implementation of TQM and
Benchmarking has lead to the corporate leadership role of these
organizations.
To establish whether the continual application of TQM and
Benchmarking will place these organization in top for a forceseable
future.
To determine some of the problems associated with implementing
TQM and Benchmarking
To establish the future benefits if any, associated in application of
TQM and Benchmarking.
1.4 RESEARCH QUESTIONS
The purpose of this study is to analyze the effect of TQM and
Benchmarking implementation on the corporate performance of May and
Baker Nigeria Plc and Unilever Nigeria Plc. For this purpose, the following
questions will lead the inquiry and these are:
Has the application of TQM and Benching lead May and Baker
Plc and Unilever Nigeria Plc to sustaining superior Corporate
Performance.
Is there and relationship between the resources of May and
Baker Plc and Unilever Nigeria Plc and creation of sustainable
competitor advantage?
Does the implementation of TQM and Benchmarking by these
corporate organization lead to their corporate leadership in the
manufacturing industry in Nigeria?
Will the continual application of TQM and Benchmarking help to
sustain these organizations on top for a force able future?
Are there problems associated with the implementation of TQM
and Benchmarking by these organizations?
What are the future benefits that will accrue to organizations
employing the use of TQM and Benchmarking?
1.5 STATEMENT OF HYPOTHESIS
HYPOTHESIS ONE
Null Hypothesis (Ho:
The application of TQM and Benchmarking by May and Baker Plc and
Unilever Nigeria Plc had led to superior corporate performance.
Alternative Hypothesis (H1):
The application of TQM and Benchmarking by May and Baker Plc and
Unilever Nigeria Plc had led to superior corporate performance.
HYPOTHESIS TWO
Null Hypothesis (HO):
There is no significant relationship between the resources of May and
Baker Plc and Unilever Nigeria Plc and creation of sustainable competitive
advantage .
Alternative Hypothesis, (H1):
There is a significant relationship between the resources of May and
Baker Plc and Unilever Nigeria Plc and the creation of a sustainable
competitive advantage.
HYPOTHESIS THREE
Null Hypothesis, (HO):
There is no significant relationship between the implementation of
TQM and Benchmarking by May and Baker Plc and Unilever Nigeria Plc and
their leadership position in the manufacturing industry in Nigeria.
Alternative Hypothesis, (H1):
There is a significant relationship between the implementation of
TQM and Benchmarking by May and Baker Plc and Unilever Nigeria Plc and
their leadership position in the manufacturing industry in Nigeria.
HYPOTHESIS FOUR
Null Hypothesis (HO):
There is no guarantee that the continual application of TQM and
Benchmarking by May and Baker Plc and Unilever Nigeria Plc will keep
them on top for a force able future.
Alternative Hypothesis (H1):
There is guarantee that the continual application of TQM AND
Benchmarking by May and Baker Plc and Unilever Nigeria
Plc will keep them on top for foreseeable future.
HYPOTHESIS FIVE
Null Hypothesis (HO):
There are no problems associated with implementation of TQM and
Benchmarking by May and Baker Plc and Unilever Nigeria Plc.
Alternative Hypothesis (H1):
There are problems associated with the implementation of TQM and
Benchmarking by May and Baker Plc and Unilever Nigeria Plc.
1.6 SIGNIFICANCE OF THE STUDY
The study will service as independent appraisal of the
Application of Benchmarking and Total Quality Management (TQM)
as tools in gaining competitive advantage particularly May and Baker
Plc and Unilever Nigeria Plc, and also for organizations in competitive
environment in general.
It will also serve as documentation on the performance of key players
in the manufacturing sub-sector of Nigerian economy.
The study as an academic exercise is expected to contribute to
knowledge in the area of this all-important philosophy that has been
applied successfully in advanced world especially in Japan, to gain
superiority in product and service delivery.
Finally, it will serve as guide to researchers in this field of study
in the nearest future and also, as an increase in knowledge to the
general public on the Total Quality Management (TQM) philosophy.
1.7 SCOPE/LIMITATION OF THE STUDY
The research on the benchmarking and Total Quality Management
(TQM) was based on two key players in the manufacturing sub-sector
of the Nigerian economy, May and Baker Plc and Unilever Nigeria Plc
as sample frame for the manufacturing industry. The choice of these
two organizations was based on their accessibility to researcher as
they ever willing to provide the information needed to draw the
research findings.
Some of the constraints which have the limited the researcher
include: scarcity of fund, and the limited time available for this work
to be completed. Equally to mention is the unwillingness of the firms
to disclose what the tempt as security or classified information.
Others are non availability of reliable and timely data on the Nigeria
economy for a comparative study.
CHAPTER TWO
REVIEW OF RELATED LITERATURES
2.1.0 INTRODUCTION.
In discussing the topic, strategy and competitive advantage, Porter
N.E (1985) declared that “a company has competitive advantage whenever
it has an edge over rivals in attracting customers and defending against
competitive forces”. Some of the sources of achieving competitive
advantage may include:-
Having the best made product on the market;
Delivering lower costs than rivals;
Being in a more convenient geographical location;
Achieving proprietary technology;
Feature and styling with more buyer appeal;
shorter lead times in developing and testing new products;
a well known brand name and reputation; and
Providing buyers more value for the more (a combination of good
quality, good service, and acceptable price. Michael E. porter
declared that for a company to succeed in building a competitive
advantage, the company’s strategy must aim at providing buyers with
what they perceive as superior value- a good product at a lower price
or a better product that is worth paying more for.
Many corporate organizations adopt different strategies to
achieve or defend a competitive advantage. The study of application of
total quality management and Benchmarking as the most powerful tools
of gaining competitive advantage in this modern era is the focus of this
chapter.
2.1.1 THE FIVE GENERIC COMPETITIVE STRATEGIES
A company’s competitive strategy consists of the business
approaches and initiatives that, it adopts in attracting customers, dosing
off competitive pressures, and in strengthening of its position in the
market. The aim is to defeat rival companies ethically, and honourably
earn a competitive advantage in the market place, and cultivate a
clientele of loyal customers. Often, the company adopt both offensive
and defensive actions, with emphasis shifting from one to the other
depending on the market conditions in place for a specified period. a
company’s competitive strategy may include short-lived tactical
manoeuvres designed to deal with immediate conditions, as well as
calculated to have lasting impact on the firm’s long-term competitive
capabilities, and market position.
The five generic competitive strategies include:-
1. A low-cost leadership strategy: This is striving to be the overall low
cost provider a product or service that appeals to wide range of
customers;
2. A broad differentiation strategy:- This is seeking to differentiate the
company’s product offering from the rivals’ in ways that will appeal to
a board range of buyers.
3. A best-cost provider strategy:- This seeks to give customers more
value for the money by combining an emphasis on low-cost with an
emphasis on upscale differentiation. The target is to have the best
(lowest) costs and prices relative to producers of products with
comparable quality and features.
4. A focused or market niche strategy based on lower cost:- This is
concentrating one narrower buyer segment and competing rivals on
the basis of lower cost.
5. A focused or market niche strategy based on differentiation:- This is
offering niche members a product or service customized to their
tastes and requirements.
The above strategies can be illustrated below as
Thus:-
TYPE OF COMPETITIVE
Advantage Being Pursued
MA
RK
ET
TA
RG
ET
Overall low
cost leadership
strategy
Broad
differentiate
strategy
Best Cost
Provider Strategy
Focused
differentiation
strategy
Focused
Low-cost
Strategy
A broad range
of buyers
market wide
A particular
buyer segment
or market niche
2.1.2 BASIC OF TOTAL QUALITY MANAGEMENT (TQM)
Total Quality Management (TQM) is founded on a number of basic
and extremely important concepts. The main features of Total Quality
Management (TQM) are:
a) Customer Orientation:
Total Quality embraces more than the external customer. it recognizes that
everyone in a business provides a service. Some services are provided to
external customers and others to internal customers. If the needs of the
external customers are not met he is likely to take his business elsewhere.
A survey of some European companies revealed that of every 100
dissatisfied customers;
- 96 percent will not complain
- 90 percent of them will not return in the future
- One unhappy customer will tell nine others.
On the other hand if the needs of an internal customer are not met he may
not be able to meet or continue to meet the needs of the external
customers especially if he is a frontline employee. Either way the business
looses. In total quality organizations, everyone strives to meet the needs of
their customers (internal and external) and then to improve continually, the
efficiency and effectiveness of the services provided. A fundamental
requirement of Total Quality Management (TQM) is the commitment of top
management and a business strategy, which is oriented towards customer
satisfaction.
b) Total Involvement
In non-total quality organizations, quality is regarded as the responsibility
of only Managers, Supervisors or the quality control departments. Total
quality involves everyone and every activity. All employees make a
commitment to getting things right first time, every time-in total quality
companies everyone is committed to quality and understands what is
expected of them. Every department tries to meet the needs of their
customer-the next link in the chain.
c. Continuous Improvement
Everyone has to do things better tomorrow than yesterday and be
committed to prevent rather than detect problem. It means developing a
culture of innovativeness, empowerment and problem solving.
Improvement is not possible or meaningful without measurement and
bench marking, without baselines against the organization can chart its
progress. Deciding what to measure should be influenced by customer
requirements.
d) Teamwork
If total management involves everyone it is logical to expect people to
work together as a team. Teamwork is based on synergy, 2+2 =5. It is
intended to capture a very large number of idea from them implementation
and they consequently see improvements happening quickly.
e) Audit of Processes
Experience and research show that in many companies between 209 and
40 percent of all activities are wasted in resolving problems of fixing their
effects, fire fighting, checking for errors and redoing work. While people
will occasionally make mistakes, the majority occurs because the process
has failed. It is a basic objective of Total Quality Management (TQM) to
design processes that make it difficult for people to make mistakes. This
involves understanding how processes operate, what systems are used,
who does what, when decisions are made.
f) Cost of Quality
The cost quality represents the amount of time and effort that an
organization spends ensuring that products and services are defect-free or
are of high quality, it also refers to what it costs of lost opportunities.
g) Cost of Prevention
This is the cost of all activities undertaken to prevent defects in design and
development, purchasing, labour and all other aspects of beginning,
creating, introducing and selling a product or service.
Examples of cost prevention are:
Time spent on planning activities
Supplier evaluation
Specifications and their review
Process capability studies
Operation training
Preventive maintenance
TQM education programmes
h) Cost of Appraisal
These are costs associated with inspecting, testing and evaluating the
product or service while it is made or before it reaches the customer to
ensure that it conforms to customer. Requirements will include
specifications from customers. Engineering documents, marketing and
other documents that provides information on the right procedures and
processes. Examples of cost of appraisal are:
Prototype inspection and test
Supplier surveillance
Receiving inspection and test
Packaging inspection
Status measurements and reporting
Proof reading memos
i) Cost of Failure
These are the costs of getting it wrong the first time and therefore of
having to repeat it. They are costs that are associated with things that
have been found not to conform to requirements/specifications as well as
the evaluation, disposal and consumer affairs or complaints handling
aspects of such failures.
These costs include all materials and labour involved in all rework. A cost
can also be included for lost customer credibility.
Examples are:
Consumer affairs
Redesign
Engineering change order
Purchasing change order
Corrective action costs
Soap and rejects
Emergency purchases.
j) Quality Function Deployment (QFD)
Quality Function Deployment (QFD) ensures that quality dimensions,
which are important to the customer re, designed into a product or service
an inception and maintained throughout its life cycle.
2.1.3 ORGANIZATIONAL STRUCTURE OF TQM
Structures are necessary tools in organization, structures aid in the
achievement of goals in organizations. They define roles and activities of
employees in an organization. Besides, structure dictates the
communication patterns in every organization.
Structures however have a role to play in the management of TQM in
business organizations. Eugene (1996), stated that there is need for
structures such as the quality council, steering committee, quality
improvement teams, and facilitators at the introduction and development
stages of TQM structure. Certain factors must be examined. Onausi (1997)
outline two basic factors which are:-
1. The TQM organizational structure should mirror and not supercede
the existing organization.
2. All TQM actions are facilitating and should be designed to assist
the normal organization in taking improvement actions. Different
organization adopts different structures. However, for this
purpose, I recommend the structure designed by Onausi (1977).
Fig. 1
SOURCE: Seye Onausi (1997) Getting the TQM Bell Rolling; the Guardian
News paper (Lagos) Tuesday, March 20. The TQM organization-show
committees, TQM co-ordinators. From the diagram above, the process of
installing TQM team (Any member of the staff) this team meet separately
to focus on the process of change. The black dots also provide support for
MANAGEMENT
COMMITTEE
DTL
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DTC
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DEPARTMENTAL
TEAM LEADER
GROUPS
DIVISIONAL MANAGEMENT
TQM
TEAM Facilitators
the process. A central co-ordinator for quality may also chair a meeting of
facilities from time to time. It is the responsibilities of the management
committee and quality steering committee to plan and design the systems
and tools conclusively. TQM organization is not responsible for quality or
quality improvement. It is responsible for managing a facilitative process, a
process that will assist managers and people to take ownership of quality,
and more importantly, a process in grained in each individual.
2.1.4 THE CORE CONCEPT OF TQM
Akpeiyi (1996 p. 5) identifies the following core concepts that are behind
TQM.
1. Achieve quality in everything. People, process and product/service.
2. Do the right thing first every time.
3. Continuously strive for improvement
4. Have visceral commitment and discussion for customers who are
both internal and external.
5. Strengthen the supplier – customer chain.
6. Managers business through team building and teamwork.
7. Flatten hierarchies and have suitable structure.
8. Reduce cost of bad quality by investing substantially in cost of good
quality.
9. Use structured process when solving business problems, which
should be talked proactively.
10. Use total quality tools to general hard facts to Manager business
rather than depend on opinions or whims.
11. Provide quality leadership and motivation to enable all employee
committee to the total quality process.
2.2.0 TOTAL QUALITY MANAGEMENT FOCUS/DRIVERS
The key main drivers of TQM are:
1. Integration
2. Continuous improvement
3. Customer focus
Integration: This is an attempt by the organization to achieve uniform
concept of quality across the whole organization and attain harmonious
inter-dependence and co-operation amongst its various submits and
components. This will help eliminate the dysfunctions associated with
inbreeding, competition and rivalry that occur where empire building and
independent operation of various units.
To achieve integration, TQM proposes the following;
Process thinking and management
Employee involvement
Cross-functional team
Brainstorming
Training and Development
The inverted pyramid
Improvement
This is the belief that no system is beyond improvement. It therefore,
suggests that better ways of doing a particular thing should be evolved.
(KAIZEN) This improvement could be innovative involving large dramatic
changes of small incremental changes.
Customer Focus
Customer as defined by TQM is these people who have the benefit of the
works, activity of actions of another (Mc George and Palmar Kan in
Ewurum 1997). TQM recognizes two set of customer is viz internal
customers and external customer.
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 traditional sense: TQM however, proposes that internal
customers should be treated carefully just as the external customers or
even better. This is because their services will impact greatly on the
output, which will dictate the eventual satisfaction of the external
customers. In this case, the saying that you should treat employees the
same way you want them to treat customers apply.
2.2.1 WHY TOTAL QUALITY MANAGEMENT (TQM)
Joining the Total Quality Management (TQM) train is in the interest of
organizations no matter how they now perceive the performance of their
organizations. Total Quality Management (TQM) is one sure recipe that will
prevent them from becoming obsolete in the business world, this because
with Total Quality Management (TQM) you can count on four facts
a) Customers expect sharply higher levels of service quality
b) Some of the competitors are already working flat out (or getting
ready) to entice the organization’s present customers with higher
perceived value.
c) to the victor goes the spoil.
d) No matter where you currently sit in your industry, if your
organization does not have an aggressive plan to dramatically
improve the service/quality levels, you are already behind and in
serious trouble. You may well be on the way to becoming victims
of the service quality revolution as you cling to the old
management order.
2.2.2 ACHIEVE QUALITY IN EVERY THING
PEOPLE, PROCESSES AND PRODUCTS/SERVICE:
According to Akpeiyi, (1996) p.5) the word total in this
management tool (TQM) underscores the fact that focus of any
organization that aspires to be quality organization must be to achieve a
corporate culture of qualities in everything, it ha or does it people
processes, and products/services. Achieving quality in people call for
quality in recruitment and selection; quality in orientation; quality in
appraisals; quality in promotion and rewards; and quality in human
resources development and management. It also calls quality leadership at
all levels of the organization that can motivate their followers to peek
performance through creating room for innovativeness, inspiring shared
vision and empowerment.
Attaining quality in process means all business process of
administration, information, finance, audit, strategic planning, reception,
telephoning sales, marketing etc. must be capable of delivering to the
customer the right product and service right first time every time at the
lowest overall cost.
A quality products/services (the outcome of any process) is that
which fully meets the customer’s need and expectations.
Therefore, for any organization to be perceived and acknowledge as
a quality organization, it must achieve quality in the three components of
people processes, and product/services. Organization that employs the
TQM tool to achieve excellence will invest always on the necessary time
effort to achieve excellence in their people, excellence in all activities of
their business and excellence in the products and services.
2.2.3 DO THE RIGH THING RIGHT, FIRST TIME AND EVERY THING
TIME
When TQM has become the culture of an organization, the employees in
the organization right things (Akpeiyi 1996 p.6). It is a challenge for an
organization to stop mindless operation. If you are going to produce
quality, you are not allowed to have repetition.
The right things are judge strictly from the perspective of the
customers, and thus only activities that have customers and help to satisfy
the requirements of their customer are considered acceptable this culture
of always determining who the customer for an activity or product or
service is, institutionalized in total quality organization, it will would not
expand its energy and useless activities that can not more it business
forward. Leonard Berry et al, point out this serviced quality. When
management fails to understand customers’ desire for the service, a chain
reaction is likely to follow the wrong type of performance measurements,
the wrong advertising, and so forth. It is though enough to satisfy
customer desire without the added burden of not really knowing what
desires to satisfy.
Having identified the right thing to do, a structured process is used to
ensure that all associated activities are correctly performed, and done right
so that out put (product or service) meets the customer’s requirements
first time and every time by first determining what is the right thing to do,
and doing it rights first time and every time. The TQM tool ensures that
money, time and energy are not expended on correcting error, scrapping
out or re-works.
it is patently obvious, therefore that organization where doing the
right thing right first time every time becomes a culture, substantial
reduction in operating cost and the concomitant effect of high profitability
are the reward. Faithfully adherence and missionary commitment to a
Quality Delivery Process (QDP) is the secret of TQM Organizations. The
quality delivery process (QDP) require every work (from the top
management work group to the work group at the lowest level of the
organization’s hierarchy) to define their mission in business, determine
their outputs and ensure harmony between output and mission, identify
customers for each output, determine customer requirements for each
output, develop specifications for each output, that satisfy the customers
requirements.
Tools used in TQM Process
TQM is philosophy that is aimed at achieving quality in all its ramifications
of a business. Osunaiji: (1996) in his paper Quality Improvement
Techniques, presented at a seminar points to seven (7) tools used in the
TQM process. He further explains that these tools were used by Japanses
and they formed the secrets of their success.
These tools include:
1. Bench marking
2. Brain storming
3. Histogram
4. Check sheets
5. Pareto Diagram
6. Flow Diagram/charts
7. Cause and Effect Analysis
Benchmarking
This is a continuous process of measuring an organization’s products,
operations and services against those of its competitors. It will establish
targets, priorities, and operations leading to competitive advantage. This
concept (Benchmarking) is based on the ancient Japanese quotation. If you
know your enemy and know yourself, you need not fear the result if a
hundred battles. This measures means striving for the best of the best
practices, those that will lead to superior performance, through measuring
performance, continuous implementing change and emulating the best.
Brainstorming
This is a technique used to generate a large number of ideas quickly,. and
may be used in a variety of situation. Each member of a group in turn, may
be invited to put formed ideas concerning a problem under consideration.
Histogram
This is a technique used to display both attribute and variable data and are
an effective means of letting people who operate a process know the
results of their efforts.
Check Sheets
This is a tool for data gathering, and a logical point to start in most process
control or problem solving efforts. It is particularly useful for recording
direct than opinions about the process.
Pareto Diagram
This measure is used to analyze data to identify the major problems. It is
also used to analyze errors on invoices to customers and industry injury
data.
Flow Chart
The use of this technique ensures a full understanding of the input and
flow of the process. Flow chart/diagram show what people actually do, how
material is handed, how equipment is used, and information flow and lead
to common sense suggestions for waste elimination.
Cause and Effect Analysis
This measures the input that effect quality and identify the possible effect
in the process.
2.2.4 KEY CHARACTERISTICS OF THE TQM STRATEGY
It is obvious, and perhaps relevant to this study, to point out the basic
characteristics of TQM.
According to Akpeiyi 1996, these includes the following:
1. The market in principle “market-in” is major perspective in quality
improvement activities. This involves informing a broad range of
employees how customers use products and services.
2. And educating as many employees as possible on customer desired
product and service features.
3. All-employee, all-development involvement TQM companies have
extended the concept of quality improvement to include business
process. This broadening the scope of participation to include all
staff and department. All staff involvement men that all employees
individually and in teams are trained to engaged in designed and
redesigning their own work processes.
4. Quality’s relationship to costs and productivity. TQM companies
(especially large firms) have seen improved quality as flowing
from elimination of waste and rework in every business process.
This may contrast with the traditional American view of improve
quality as adding more product attributes and or additional
inspectors, thereby leading to added cost.
5. Quality as a silent theme. It is hard to find anyone in an organization
that is against quality, but cost reduction and productivity
improvement often evoke fear of displacement. Conversely, quality
is positive, unifying and constructive.
6. Problem-solving methodology that is usable by workers with
moderate and higher level of education. The methodology is
backed up with training in a variety of problem-solving tools,
including the pareto and cause-and-effect diagrams. Simplify
statistical tools have become widely used among workers in
departments in effective TQM organization.
2.2.5 COMMON ELEMENTS OF TQM
(Akpeiyi 1996) identified the following as the common element of TQM:
Top management commitment and leadership “Quality is made in the
board room, and that in a TQM environment, all employee must strive to:
1) Do the right thing
Do thing right
Do things right
Do things right first time
Do things right, first time, every time
2) Employee involvement and teamwork
3) Customer orientation
- Internal
- External
4) Prevention system not defection-performance standard zero
defect.
5) Quality system management
a) Documentation to ensure consistency for even product or service
b) Procedure to ensure that every product or service pass through
certain recommended system
6) Cost of quality measurements (COQM) – prevention costs, appraisal
cost, and failure costs.
It is against this background that we need to identify the cost associated
with TQM. However, the cost of achieving these goals must be carefully
organization is desirable one.
These costs are a true measure of the quality effort:
1) Prevention Costs
These are costs associated with the design, implementation and
maintenance of the total quality management system. Prevention costs
include:
a) Quality planning: The creation of quality, reliability, and operational,
production, supervision, process control, inspection and other
special plans, etc.
b) Quality Assurance: The creation and maintenance of the quality
system
c) Inspection equipment for use in inspection work.
d) Training Cost: The development, preparation and maintenance of
training programmes for operators, supervisors, staff, and
managers both to achieve and maintain capability.
e) Miscellaneous: Clerical, travel, supply, shipping, communications and
other general office management activities associated with quality.
The resource devoted to prevention give rise to the costs of doing it right
the first time.
2. Appraisal Cost
These costs are associated with the supplier’s and customer’s evaluation of
purchased materials, processes, intermediates, products and service to
assure conformance with the specified – requirements. Appraisal includes:
a) Verification: Checking of incoming material, process set–up, first-off,
running processes, intermediates and final products, services
including product or service performance appraisal against agreed
specifications.
b) Vendor Rating: The assessment and approval of all suppliers, of both
products and services. Appraisal activities result in the costs of
checking it is right.
3 ) Failure Costs
Failure costs can be further split into those resulting from internal and
external failure.
i) Internal Failure Costs: These costs occur when the results of work
fail takes place: Internal failure includes the following:
a) Waste: The activities associated with doing unnecessary work or
holding stocks as the result of errors poor organization, poor
communications, the wrong materials, etc.
b) Scrap: Defective products material or stationery that cannot be
repaired, used or sold.
c) Re-Injection: The re-examination of products or work that have been
rectified.
e) Downgrading: A product that is usable but does not meet
specifications may be downgrade and sold as “second quality” at lower
price.
f) Failure Analysis: The activity required establishing the causes of
internal products or services failure.
ii) External Failure Costs
These costs occur when products or service fail to reach design quality
standards but are not detected until after transfer to the consumer.
External failure includes:
a) Repair and Servicing: Either of retuned product or those in the field.
b) Warranty Claims: Failure products that are placed or services re-
performed under some from of guarantee.
c) Complaints: All work and costs associated with handling and serving
of customer’s complains
d) Return: The handling and investigation of rejected or recalled product
or materials, including transport costs.
e) Loss of Goodwill: The impact on reputation and image, which
impinges directly on future prospects for sales.
External and Internal Failure produce the costs of getting it wrong. Order
re-entry, retyping, unnecessary travel and telephone calls, conflicts, are
just a few examples of the wastage of failure costs often excluded. Even
organization must be aware of the costs of getting it wrong and
management needs to obtain some idea how much failure is costing each
year.
Figure (2.5): Quality awareness and improvement.
Failure
Appraisal
Prevention
Total Quality
Related Costs
Source: British standard 1992 1 pg.24.
The relationship between the quality related costs of prevention, appraisal,
and failure and increasing quality awareness and improvement in the
organization shown in figure (2.5) where the quality awareness is low, the
total quality related costs are high, the failure costs predominating.
2.2.6 TQM PERSPECTIVE OF LEADERSHIP
Leadership is the sum of activities by which a hierarchical superior
voluntarily influences the behaviour of the subordinate in such a way as to
efficiently achieve the organizational objectives (Awujo 1997): (Glueck
1997) sees leadership as basic ingredients in all aspects of organizational
activities. Johnie (1993) defines leadership as the process of directing and
influencing the work related activities of group members.
Leadership is a goal directed actively that must be performed by
managers of organizations. The new philosophy of TQM in organizations
had the view that leadership is a critical factor in the success of TQM
implementation Okolie (1996) leaders must change or transform the
organizations to needs of TQM. Accordingly Dean and Bowen (1994)
argued than total quality and transformational leadership stress the
communication and reinforcement of values and the articulation and
implementation of a vision. Total quality entails alighting of organizational
members with quality values of customer’s focus, continuous improvement
and teamwork.
The theory of transactional leadership however does not apply to total
quality from senior leadership point of view. Total quality has a wide
perceptive of organizations than transactional leadership that focus on
work group levels. Conversely down the hierarchy of the organization
structure, the important of leadership decreases. This is as because total
quality emphasis training and organizational formalization.
Nonetheless, for TQM to lead to customer satisfaction, it is important
that management must improve all aspects of its operations including
customer relations, staff development, compensation, motivation and
recognition, product development, manufacturing processes, credit systems
and all aspects of communication. Management should also effectively and
deliberately encourage creativity, meaningful suggestions, all form, of
feedback including complaints and involve all employees in decisions that
aimed at improving quality. All these will however be possible through the
use of the dynamic leadership approach.
2.3 THE ROLE OF LEADERSHIP IN TQM IMPLEMENTATION
Basically, leadership is known for initiation and implementation of policies
and programmes for the survival of firms. Leaders are dynamic in their
approach to handling organizational activities aimed at achieving the goals
of firm as Leaders are well direct on the firm’s activities. Glueck (1997)
argued the importance of leadership as dynamic function for organizations.
Indeed leaders have a significant role to play in total quality management
implementation. Any new philosophy, culture or orientation must be
handled out in the long run. Paul E.O. Neil (1990) argued that any change
in an organizational culture requires that each organizational group learn
the behaviour norms, values and basic assumptions of the new culture. It
is particularly critical for members of management to learn all facts of the
new culture effectively and efficiently. Management is the one group that
must buy into the need for a culture change actually go through the culture
change, and lead the change efforts of all other groups in the organization.
According to Onanusi (1997) asserted that TQM does require a profound
level of change in the behaviour of management. Managers will not
changes the attitude of employees without changing themselves.
Both management and employees must change to unlock their combined
potential for the ultimate success of the organization. In the same vein,
leaders must implant the philosophy TQM into the organization and also
ensure that the decisions on the implementation of TQM are carried out
throughout the corporation, and then help people to carry them out
through the provision of all needed resources. Leaders must show a great
deal of commitment and also plan and design the process of TQM
implementation in their organization. From the above, leaders have
important role to play in the success of TQM implementation in
organizations.
2.4.1 IMPLEMENTATION OF TOTAL QUALITY MANAGEMENT IN
NIGERIA:
Total quality management as a management philosophy originated many
year ago in Japan. TQM is however a new concept in Nigeria despite its
long history.
Okolie (1996) said that the implementation of TQM is relatively recent in
Nigeria. He further stated that the first taught in Lagos Business School in
April, 1992. And ever since, the subject have gotten much attention in the
business circles, as some companies have started implementing the
programmes while other are planning to do so.
He further asserted that in order to assist companies ensure that their
TQM programmes succeed, the guideline of programmes implementation
need to be followed.This is because TQM usually fails if there has not been
a well-articulated programme for putting it in practice.
According to Okolie (1997), the first problem a company faces when
decision has been made to implement TQM is which model to adopt. This
arises from the fact that the literature is full with different approaches of
implementing TQM by various “gurus”. As a general rule, which ever model
chosen, must be tailored to suit the company size, age, operation,
corporate values and culture and these should be considered before
choosing any model. It is advisable to adopt the TQM approach that best fit
a company’s situation. For examples, a highly technical company
employing many Engineers may find Jurans approach far more appealing
than the idealistic approach by Deming. A firm with a history of
organizational development may find Crosby organizational stage model
culturally more comfortable, while a company where quality awareness will
be a particularly difficult changing could adopt elements of Crosby and
Deming approaches which have strong awareness building focus.
Code line for programme implementation includes:-
a) Top management commitment and leadship
b) Impetus for change
c) Training (All staff in the organization)
d) Programme design
e) Programme implantation
f) Reward and recognition
g) Performance measuremen
h) Resistance to TQM programme
i) Programme goals
Top Level Management Commitment and Leadership
This is an essential requirement of the programme without which the
implementation cannot succeed. The Chief Executive Officer (CEO) of the
company and his senior managers must not only give commitment to the
programme, but must lead in what to do. They must have good
understanding of the principles of TQM and the benefit to the derived
through implementing the programme. The knowledge can be obtained
through reading or by attending TQM awareness seminars.
Impetus for Change: Having gained adequate knowledge about TQM
and being convinced about its benefits, the Chief Executive Officer and the
Senior Executive Officers have the responsibility of answering the question:
Why do we want to change the way we are doing things in the company?
Impetus for change can be internal (Low profitability, high cost, lack of
quality culture, etc) or external (stiff Competition, poor customer service).
The answer to this question is crucial in setting the programme goals and
must be provided.
Programme Goals:
With the impetus for change Clear, the top management now proceed to
defined the goals of the programme. That is, what is the TQM programme
aimed at achieving? Many TQM initiatives fail because companies have no
clear goals and as such cannot obtain measurable benefits as the
programme progress. Once the goal has chosen, it becomes easy to set
performance measures to monitor improvement.
Trainings: Training is an essential requirement of the TQM
implementation programme. TQM awareness training will be giving to all
staff in the organisation. The aim the awareness training will be to bring
out the principles of TQM, the benefit, and the organisation’s reasons for
adopting the programme.
programme Design:
It is usually advisable to implement TQM principle in phases, starting
initially with Quality Improvement Teams (QIT) and expanding later to
value Analysis (VA), Quality Policy Development (QPD) and finally to
Quality in Daily Work (QDW). This phase approach allow for better
understanding in the organization.
Programme Implementation
For a successful implementation of TQM, there must be a structure for the
management of the programme. It is advisable to incorporate the
management of TQM into the organizational structure of the university.
Reward and Recognition
As part of the employee buy-in policy, it is usual to establish a reward and
recognition system aimed at showing gratitude to employees that have
made outstanding contributions continuous improvement programme.
Some firm adopt rewards such as free medical expenses, free furniture,
refurbishing loan with 10% discount, free course, training, seminars, while
other emphasize more on recognizing employee. Organisation must
therefore adopt a system that best suits their corporate culture, values,
and employees expectations.
Performance Measurement
The successful implementation of the quality improvement process is
usually based on the practice of “Management by Measurement”. This is
carried out by first establishing performance measurements or standard
that is correlated to the desire and result and by regularly reviewing the
actual measurement.
Resistance to TQM Programme
The central principles of TQM to challenge a long- held set of management
beliefs and practices and will not, therefore, be quickly accepted by all the
employees in any university. Resistance to change is inevitable, but it
needs not bed a barrier. Experience has shown that even in universities
where there is clear commitment and leadership of the TQM programme by
the top management resistance does occur from the middle management
or the junior workers (Eugene 1996) with adequate education and
incentives, the initial resistance is usually broken.
The most effective way to introduce change is to identify the reason why
people resist change.
The cost common reasons for the resistance change include:
(Nwachukwu (1988):
1) Training and environment
2) Habit
3) Fear of the unknown
4) Personal attitude
5) Financial reasons
6) Psychological reasons
How to introduce change (Nwachukwu 1988). Change is not something to
be introduced very regularly. There is to be felt need before a real
organization change is embarked upon. The following conditions are
necessary:-
1. Communication
2. The change must be useful
3. Empathic consideration
4. Employee participation
5. Timing
6. Change should be gradual
7. Give positive reinforcement
One of the most effective ways of initiating changes and obtaining
complete acceptance, is to show the employees what is in there for them.
Once an organization has decided complement a change, the following
steps are suggested to aid in carrying it out. There are most expeditious
ways of carrying it out.
1) Empirical-Rational
2) Normative-Re-educative
3) Application of Power.
Okolie (1996) equally opines that, there is no one “best way to implement
TQM. A structural approach where the top management must carefully
match their unique organizational environment to a customize TQM
programme, is the recommended rout. It is usually difficult for firms to
implement TQM without the guidance of quality expert. He equally stated (
in his study on TQM implementation in Nigeria) that the current position
TQM implementation in Nigeria is encouraging considering the fact that it is
relatively new in the country.
Although Uba (1997) admitted that the potential of TQM is yet to be
harnessed for the achievement of corporate goals and national visionary.
One of the reasons for the above is placed on the level of managerial
commitment to this new philosophy.
2.3.1 USING TQM AS AN INSTRUMENT OF CHANGE:
Okolie (1996) in his paper presented at the seminar, stated that TQM
change must start from top to bottom and must ensure zero defect. We
should not accept failure and faults in our system but to find solution
anytime it occurred. Employee’s empowerment, employee must also be
taken as owner of the business so that they could contribute to the success
of the organization and have a belief that if it failed he/she would be out of
job. He further stated that TQM demanded leadership be example and
could not be implemented by one person. Management must take
employees as their customer moving them and giving what they need.
TQM is based at prevention, aim at zero defect and constant drive to
reduce waste. Focus on identification of internal and external customer and
how best satisfy them.
It is against this background that he listed the culture in TQM, which are
had to build.
a) Quality awareness in all and not to be delegated
b) Organization must choose standards in what they are doing.
c) Organization should in themselves promote quality and the Chief
Executive must lead the quality movement.
d) We must go and meet the customers to find out what they want.
e) Quality must be continuous achieve high standard.
f) There must be inter-units goals and management reward on
recognition system, which leads to healthy completion.
2.4 BENEFITS OF TQM IN ORGANIZATION
TQM has being gaining significant development of corporate organization in
recent times. TQM has lead to the growth and development of Japanese
companies in particular and the world in general. According to Nnedu
(1996) the successful implementation of TQM can transform transactions
into relations, products into services centralized management into
decentralize management, individual performance into team work, in word
focused management into outward (customer) focused management, slow
to change administration to quick to change administration.
According to Oakland (1993), the benefits accruing to the successful
implementation of TQM in an organization can be measured on a number
of dimensions:
1) Stakeholders (business measure) increased market share/reduce
loss in market share increase profit.
2) Customers, more contact with and recognition by external
customers, increase in customer relations, better understanding of
their requirements reduce complaints, lost orders, better claims,
good-will, etc
3) Output/product/services: increase in productivity/performance less
defects, errors, returns, repair (costs).
4) Suppliers: Better liason and partnership with external suppliers.
They have better understanding of requirements and cause less problem.
Reduction in total costs of dealing with suppliers.
5) Inputs: Fewer returns to suppliers, defects errors.
6) Inside organization clears leadership
7) Clearer strategy and development improvement in internal process.
a) Reduction in scrap, reworks, time, etc.
b) Better understanding of process
c) Better internal communications
d) More rapid innovation-greater scope
e) Better/quicker decisions, base on teamwork.
f) More productive/smoother operations and systems
g) Better scheduling of resources
h) Better conditions.
8) People: Happier/more contented or fulfilled staff. Improved “industrial
relations” moral/ attitudes. Release of employee energy into the business
more participation from people in all process, including innovation.
More term work and facilitation of management of change. Chukwuigwe
(1997) also presented the benefit of TQM in flowchart diagram as it relate
to increase in profitability
It is against this background that we can now say that TQM is a vital
philosophy that should be implemented in all organization, in present
times.
IMPROVED QUALITY
IMPROVED REPUTATION
HIGHER PRICE MARKET MORE MARKET SHARE
INCREASED PROFITABILITY
PREVENTING PROBLEMS REDUCE DEFECT
LOWER MANUFACTURING COST LOWER SERVICE COST
INCREASE PROFITABILITY
Despite the above-mentioned benefits of implementing TQM in
organization, this concept, if fully implemented. Would face some short
comings (Olian and Ryles 1991).
1) Quality improvement will obviously lead to increase in the price of
product/service.
2) It is hard work, takes a long time, needs to be driven by the
strategy through the whole business, relies on top and middle
management commitment, and enthusiastic practical champions.
3) Quality improvement programme is expensive to monitor to bring
success as soon as possible.
4) It will lead to high administrative costs because of additional
training and allocation of resources.
According to Onodugo Ezeh 920020, the following benefits are derivable
from the concepts of TQM:
i) Waste Minimization: It can be seen the concept proposes zero-
defect as a way of cost minimization.
ii) Retention of Loyalty: Ostensibly, TQM is driver by customer
satisfaction. The inevitable aftermath is that they will retain
even add more, to their market size or oriental profile,
iii) The practice of QTM fosters the spirit of togetherness and
unity
iv) The kaizen philosophy, which under the line of practice of
TQM will engender booster in technological advancement.
v) It help organization members to see organization from
holistic perspective and thus minimize the dysfunction
associated with departmental rivalry and empire building.
MAJOR OBJECTIVES OF TQM IN THE NIGERIAN CONTEXT
According to E.U.L Imaga (2000 p. 193), the objectives of TQM in the
Nigerian context are:
- To encourage good product(s) and services quality
consistency in both production and service industries of
the economy.
- To orientate employees’ attitude through total quality
management training and on-the job work-study
improvement in the areas of corporate management
and corporate planning.
- To reduce drastically production material cost, staff time
losses, overlap of job descriptions, inefficient controls
and inefficient supervisory techniques.
Key contributions of TQM to the Nation’s Industries:
TQM services contribute immensely in the following ways:
- Practical services to improve the nation a industries in response to the
concern of the Standard Organization Nigeria (SON) and the Executive arm
of the Government about the sub-standard quality of most products and
services offered to consumers by most manufactures and Business Services
Industries.
2.4.2 APPLICATION OF TQM IN CONSULTANCY SERVICES
According to E.U.L. Imaga (2000, pg.193) the uniqueness of this
emergent-technical and industrial management consulting service lies in its
focus on production process. Quality Monitoring and Industrial Services
System Management.
- It is a practical service at shop-floor site with the
immediate management operators of the manufacturing
and service Industries.
- It embraces the full application of Total Quality
Management innovation in Business Management.
- It ensures practical assessment of the problems of
production process and quality systems. This is
achieved through the application of work-study
techniques based on International Standard
Organization requirements for quality systems
management.
2.4.3 PROBLEMS OF IMPLEMENTING TQM
According to Okolie (1996) some of the problems experienced by TQM
practitioners includes: Lack of top management commitment and
leadership, lack of programme focus, inadequate preparation, resistance
during integration, lack of team work, loss of quality champion, non-
implementation of solutions, no evolution of results, no clear plans to
sustain the programme, failure in the ability to tackle the important issues,
staff struggling owing to lack of direction, lack of effective communication,
etc.
Oakland (1993) also identified some problems that may arise in the
implementation of TQM in an organization. These includes: Narrow based
training, failure to provide incentives by recognition, the application of
measurement of administrative practices, loss of focus, loss of credibility,
resistance to change lack of all employee commitment to quality, and lack
of adequate focus on the customer satisfication/requirements.
However, Chukwuigwe ( 1977) in his paper presented at Delta Hostels
Ltd, Port-Harcourt, on the topic, Total quality management, stated some of
the solutions to obstacle associated with TQM implementation. These
includes: Education focus on employee about quality, communication,
participation facilitation, support, training, recognition, evaluation of result
based on recognition, performance, putting clear the mechanics of TAM,
adequate commitment by top and middle management, etc.
2.4.4 STEPS TO IMPLEMENTING TQM IN ORGANIZATION
(Onodugo/J.A. Ezeh 2002)
To formulate a TQM policy
Define and determine quality: This entails determination
of quality standards, plan for quality, yardsticks for
measuring quality and determining the cost of quality.
People management and integration plan should be made
to integrate all employees of the quality plan and ensure
that every one understands how his/her work links with
that of the process design, control and improvement
should be carefully worked out.
There should be a plan for resources generation,
utilization and conservation.
RESEARCHER’S VIEW ABOUT TQM
CHAIN REACTION
TQM
IMPROVED QUALITY
COSTS DECREASE WITH LESS REWORK, FEWER MISTAKES, FEWER
DELAYS AND BETTER USE OF TM AND MATERIAL IMPROVED
QUALITY
IMPROVED PRODUCTIVITY
CAPTURE THE MARKET WITH BETTER QUALITY AND
LOWER PRICE
INCREASED PROFITABILITY
STAY IN BUSINESS
PROVIDE MORE JOB
ECONOMIC DEVELOPMENT OF THE NATION
REFERENCES
Adewole E. (1977): Total Quality Management Guardian, May 18. Agunbiade D.B. (1996): Principle and Practice of Total Quality Management, Federal Office of Statistics First National Seminar on TQM, Lagos. Akpeiyi J.J. (1996): Total Quality Management – A Tool for Organizational Excellence, Management in Nigeria, Vol. 32, No. 1. Awujo A.C. (1977): Element Of Management, 2nd Edition, Owerri, Nigeria, Oliverson Industrial Publishing House. Baridam D.M. (1997): Benchmarking: A Total Quality Management Tool Paper Presented by Nigeria Institute of Management, Delta Hotels Ltd., Port- Harcourt. Chukwuigwe N. (1997): Total Quality Management Paper Presented by the Nigerian Institute of Management at Delta Hotel Ltd., Port-Harcourt. Debo L. (1996): Implementing Total Quality Management Business Concord, Vol. A No. 2. Imaga E.U.L. And Nnendu E.E.I (1996): Business Policy and Practice, Port-Harcourt, Jerson Services Ltd. Nwachukeu C.C. (1988): Management Theory and Practice Africana Publisher Ltd. Osunaiji O. (1996): Quality Vehicle for Achieving National Revitalization Falderal Office of Statistics, First National Seminar on Total Quality Management, Lagos.
Oakland J.S. (1993): Total Quality Management, Tokyo Toronto: Butter worth Heinemann. Okolie E. (1996): Implementing Total Quality Management, Federal Office of Statistics, First National Seminar on TotalQuality Management, Lagos. Onanusi S. (1997): Getting the Total Quality Management Ball Rolling, Guardian, March 20. Onodugo V.A. And Ezeh J.A. (2000): Business Policy and Strategic Management Issues And Trend, Enugu Kingsman Publishers. Osanaye A.P. (1996): Quality Improvement Technique: Federal Office of Statistics Proceeding On First National Seminar on Total Quality Management, Lagos.
2.5 NATURE AND MEANING OF TQM AND BENCHEMARKING
Any organization basically competes on its reputation – for all, quality
is the most important of these competitive weapons for the following
reasons:-
(1) Once a-organisaton acquires a poor regulation for quality, it takes
long time to change it;
(2) Populations, good or bad ca-quickly become a national issues, and
(3) The management of the competitive weapons, such as a quality,
can be learned like any other skill, and used to turn round a poor
reputation over time.
What is then “Quality”?
Quality is used to signify excellence of a product or service”. It is simply
meeting the customer requirements and this has been described in
different words as this
Fitness for purpose or use –Juran
The totality of features and characteristics of a product or service
that bear on its ability to satisfy stated or implied need –B5 4778
(150 8402, 1986) Quality vocabulary
Quality should be aimed at the needs of customer, present and
future –Deming.
Conformance to requirements – Crosby.
it is clear that part of acceptability of a product or service will
depend on its ability to function satisfactorily over a period of time, and it
is this aspect of performance that is referred to as being reliable.
Reliability is the ability of the product or service to continue to meet the
customers requirement, but this should not be confused with the meaning
of quality; Reliability definition of quality captures the functional
characteristics of products or services but the full meaning of quality
definition of a product or service is more associated with satisfaction in
ownership than some functional property. This is true of many items, from
antiquities to certain items of clothing. Persons acquire executive cars,
certain bank account or cards or special reservation to meet the
requirements for status symbols. The requirements are of paramount
importance in the assessment of the quality of any product or service.
The meaning of Total Quality Management (TQM) can best be
captured by examining some of the definitions by different authors. The
definition contained in BS EN 18 8402 (1995);
TQM is a management of an organization centered on quality, based
on the participation of all its members and aiming at long-term success
through customer satisfaction, and benefits to all members of the
organization and to society. This means that TQM is the mutual co-
operation of everyone in an organization and associated business
processes to produce products and services which meet the needs and
expectation of customers. TQM is both a philosophy and a set of guiding
principles for managing an organization (Eke, 2005).
In the words of Ezeh and Onodugo (2002), TQM was evolved to
correct three areas of defect or misconceptions in quality concept and
these are:-
1. Products are perceived to be a high quality if it meets certain
specified design characteristics and features. TQM came to shift
the emphasis from thus design specification to customers’ tastes
and preferences.
2. The traditional approach to quality control is that of
products/service inspection which detects the defective product
and rework or correct them. This approach only detects poor
quality products without preventing a repeat of the same mistake.
TQM philosophy does not allow room for mistakes, defectives and
poor quality products.
3. The responsibility for quality of products has always being hinged
on the quality assurance department or speed across various
departments in fragment. This approach gives a worn-eye – view
and a departmentalized perspective to quality in organizations in a
traditional setting. TQM believes that quality should be seen as an
organizations wide affair and therefore, various units, sections,
and departments within an organization should share the same
concept of quality.
Ramsey and Roberts, (1992), define TQM as a people focused
management systems that aims at continual increase in customer
satisfaction at continually lower real cost; while Ewurum (2001) describes
the goal of TQM are to integrate all 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. The aim of
TQM is to attain a zero-defect product services by “ doing the right things
first time and every time” Time core elements of TQM from these
definitions are summarized as :-
Customer satisfaction
Cost reduction via zero-defect product
Continuous improvement of product and organizational
processes
Holistic in its approach.
BENCHMARKING:
Reider, (2000) posits that banking on what has worked in the past
and your own internal Onija board is ineffective substitutes, for objective
internal appraisal and external comparison and analysis – which is called
Benchmarking. Benchmarking can be defined as a process for analyzing
internal operations and activities to identifies areas for positive
improvement and the establishment a performance standard upon which
the activity can be measured. This is aimed at improving each identified
activity so that it can be at its best form. The best practice is not always
measured in terms of the least costs, but may reflect what stakeholders
value as expected levels of performance.
ATTRIBUTES OF BENCHMARKING/PERFORMANCE
MEASUREMENTS:-
A well tested benchmark should possess the following attributes:-
Forward looking: considers present as well as expected future
conditions
Holistic: Includes the needs of all stakeholders as well as those
internal functions.
Participative: developed and considering all stakeholders who might
be affected by the benchmark
Quality-focused:- considers the aspects of customer service and
quality considerations
Stakeholder driven:- focuses on needs of one or more stakeholders
as appropriate
Clear communication of goals and objectives:- all affected
stakeholders know exactly what results are expected from the
successful accomplishment of the benchmark
Identification of best practices and result: Clear description of desired
best practices and result to be accomplished through the successful
implementation of the best practice
Ability to change to achieve best practice: is the organization in the
position to implement the necessary changes easily and effectively?
Part of programme of continuous improvement: is the desired
benchmark and best practice part of a programme of continuous
improvement rather than a stand-alone benchmark?
Internal and competitive excellence: Is the benchmark or
performance measure part of a programme of internal operational
and competitive excellence on an ongoing basis?
AREAS TO WATCH OUT FOR BENCHMARKING
In answer to where should the benchmarking processes centre on –
the products or the processes? Ezeh and Onodugo (2002) posits that
products are inevitable ends of a process. Hence, the kind of products
received is a function of the processes applied to produce it, and therefore,
a good product simply is the outcome of a superior process applied to
produce it, they recommended that if the process is benchmarked, the end
product will naturally result in the desired picture.
Areas to watch out for benchmarking include:
(1) Within the organization:- inter-departmental or subunits
comparison are to be carried out within the organization so as to
discover the unit or department that stand out in excellence
performance appraisal. Where such unit or department is
identified, it could be used as a benchmark to improve the
performance of other non-performing units or departments. This is
referred to as internal benchmarking.
(2) Externally- There should be a close look at the industry to choose
a benchmark among the firm’s competitors. The aim should be to
identifier The highest performer among the competitors, and set it
as a benchmark.
(3) Benchmark can be choosing a business organization in an entirely
different industry. This is breaking industrial boundaries to search
out for the best practice any where to which they can benchmark.
This is called GENERIC benchmarking. A good feature of this type
of benchmarking is that it offers limitless opportunity for
innovation and creativity. It helps to breakdown traditional
boundaries to offer insight and creativity into organizational
performance. The Three types of benchmarking are illustrated
below.
Generic
Competitive
Internal benchmarking
Ease of data
Collection
Relevance
Transferability
Difficulty
Applicability
Cost
Time
Creativity
Cost
Opportunity for
Improvement
Difficulty
Time
SOURCE: MCGORGE AND PALMER (1997)
Note that the arrows in the table indicate that as one moves from
internal benchmarking through competitive to generic, one spends more
time, experiences more difficulties and enjoys more opportunities for
improvement. It also attracts cost and enhances opportunity for
creativity. The reverse is the case when one moves from generic
benchmarking to internal benchmarking:
CHAPTER THREE
RESEARCH DESIGN AND METHODOLOGY
3.0 INTRODUCTION
Research methodology refers to the various ways, method or
systems which have been adopted by a researcher to assemble materials
or data on the area of his investigation as well as those analytical tools
employed in analyzing the data collected for the research. This chapter
examines the method adopted in carrying out this research and the
research design. In discussing the methods of study, explanations are
based on the research approach employed, research strategy used, sources
of data and instruments of data collections, data analysis and method of
investigation.
The immediate concern of this chapter is to ensure that the research
work is conducted within the frame of the research questions which were
earlier discussed.
3.1 RESEARCH DESIGN
Taylor, (1988) defined Research design as the basic plan which
guides the data collection and analysis phases of the research project. It is
the frame work which specifies the type of information to be collected, the
sources of data and the data collection procedure.
In essence, research design refers to the plan, structure and strategy
of investigation adopted by the researcher so as to obtain answers to
research questions. This research design had been planned to cover the
overall scheme which outlines the purpose of the research work. The
structure of the research design shows.
(a) The interrelationship of variables;
(b) How objectives are attained;
(c) The problems encountered; and
(d) How such problems were tackled by the researcher
Statistical method of descriptive research is employed in this study.
The study is designed to describe the variable in the model used. In order
to be effective and reliable, a descriptive study is embarked upon through
fact gathering to determine the intricacies of the research problem at hand.
The facts gathered after due consideration had been given the intricacies,
are used to prove or disprove the functional and casual model of the
system under consideration which in this case is “The application of
Benchmarking and Total Quality Management (TQM) as tools in gaining
competitive Advantage; A case study of Unilever Nigeria Plc and May and
Baker Plc.
Adequate measure is however ensured on steps taken in the
collection of data and after which was analyzed to avoid unnecessary data
(and the resultant waste of financial and human resources) and because
“…. facts do not lead any where”. Indeed, facts as facts are the
commonest, cheapest and most useless of all commodities. Anyone with
questionnaires can gather thousands of facts in a day and probably not
find much use of them. What makes facts practical and valuable is glue of
explanation and understanding, the framework of the theory, the tie-rod of
conjecture. Only when facts can be flashed to a skeletal theory, do they
become meaningful in the solution of problem.
Descriptive statistical sampling method is employed in this study for
the following reasons:-
The objective of this study as stated earlier on is to appraise the
application of Benchmarking and TQM as tools in gaining competitive
advantages; A study of May and Baker Plc and Unilever Nigeria Plc;
To highlight the problems of adoption of this strategy (if any) and the
ways of effecting improvement and development;
The study will serve as a guide and planning technique for other
corporate organizations performance; the size of the universe under
study, (i.e. population) is very large and this makes it imperative for
the use of samples; and
The very large sampling frame demands generalization about the
population units rather than a canvas of the total units themselves
because statistical sampling method …. involved. The standards of
few factors in large number of cases.
The statistical method ceases to identify individual case and focuses
instead on classes, averages, percentages, regressions, measures of
dispersion and more sophisticated statistical procedures. If a statistical
standard were to be purely descriptive, that is, if objectives were to be
present, the situation existing at a particular time, the design of the study
sample would tend to be cross-section of the universe under study.
This research design is carefully prepared to ensure minimum bias in
the collection of data needed, and to ensure the removal of errors to which
the interpretation in the next chapter is subjected.
3.2 RESEARCH APPROACH
The research approach adopted in this study is “the Ground theory
Approach” (Glasar and Strauss, 1968). Since the researcher aims at
deducing all his results from the data collected, the Ground theory
approach is most suitable. Moreover, the school of thought in favour of this
approach, opined that the knowledge sought for in any research is
“grounded” in the data, the researcher is able to collect. And as such, the
findings of the researcher emerge from analysis of the results achieved.
By this approach, questionnaires were sent out and personal
interviews conducted in areas where detailed answers are required. The
questions contained in the questionnaire is framed in such a way that
answers given are sufficient in “acceptance’ or “rejection” of the
hypothetical statements.
The questionnaire is divided into two sections. Section A is concerned
with the personal details of the respondent while section B seeks to obtain
the Opinion of the respondent on “the application of Benchmarking and
TQM as tools in gaining completive advantage.”
The ground theory approach encourages the use of research
questions, although the statement of prior hypotheses, have been
employed. Therefore, this study could be regarded as exploratory work
combined with prior set of hypotheses.
3.3 RESEARCH STRATEGIES
The success of every research work rest largely on the quality of the
sampling and great care are needed at every stage in the development of
suitable sample for this reason, case study method was employed as
opposed to the survey method.
According to Ahiazu (1981), “A case study involves the study of one
group at a point in time, and arriving at conclusion in relation to the
situation of one group” while the survey method is one in which “a
representative sample of the population is studied and the results
generalized. Seltize et al (1959) have argued that the case study approach
provides Situating insight, which Adoku (1985) in his research on “workers
participation”, further explained to be an in-depth, far-reaching and
intensive analysis of what prevails in the work place.
Due to the limitations of this research as earlier discussed in chapter
one, the research could not be carried out in all the corporate organizations
in Nigeria. Hence, the stratification of May and Baker Plc and Unilever
Nigeria Plc were chosen as the sample.
Osuala (1983) said that one of the cogs in the wheel of progress of
research work in Nigeria is the difficulty encountered in data collection; as
institutions and individuals are not always dispose at giving away
information. The choice of the May and Baker Plc and Unilever Plc was
informed on the approachability of these British origin firms and
convenience so as to conserve scarce resources and limited fund available
to the researcher. And also, their head offices are located in one town
Lagos.
3.4 SOURCES OF DATA
The data for the study are drawn from two main sources which are
the primary data source and the secondary data source.
3.4.1 PRIMARY DATA
The primary data were obtained from questionnaires administered,
which contained questions of the study for which responses were obtained
from the selected respected respondents from the sample frame, May and
Baker Plc and Unilever Plc.
3.4.2 SECONDARY DATA
The source of secondary data for this study include previous work
(published and unpublished) relating to Total Quality Management and
Benchmarking, topical issues on the subject matter by various scholars
which are found in journals, dailies, textbooks and magazines
3.5 POPULATION OF THE STUDY
The population of this study include all the corporate organizations in
Nigeria in the competitive market environment aspiring to gain competitive
advantage, but using May and Baker Plc and Unilever Plc as Sample frame.
3.6 SAMPLE SIZE
This can be statistically determined to obtain the number of
questionnaires to be distributed.
n = N 1+N (e)2
Where n = Sample size
N = Population of Study
e = Acceptable margin of error;
given as 0.10
Given that N, the population of study is 99 persons,
and e = 0.01,
n, the sample size is determined as below
n = N 1+ N (e)2 n = 99 99 1+99 (0.10)2 = 1+99 (0.01) = 99 = 49.75 50 copies of questionnaires 1.99
3.7 RESEARCH INSTRUMENTS/METHOD OF DATA ANALYSIS
These refer to the tools for information data gathering.
Questionnaires/Schedules and personal interviews were employed to
sample groups and individual opinion: In order to establish the reliability of
most of the questionnaires responses graphs and pie chart, histogrammes
and Chi square test statistics were used.
The use of questionnaires as a tool for information gathering and
data collection in the research work was borne out of the advantages
offered by this method and these include:-
(a) Individuals and groups of people’s knowledge, beliefs, intentions
and motivation on the subject matter of this study;
(b) Questionnaires are useful in confirming the objectivity of
information collected on research; and
(c) It saves time, effort and costs.
The table bellow shows the distribution of questionnaires sent out
and returned.
Table 3.7 percentage distribution of questioners
Length of
service
No of copies
sent out
% of copies
sent out
No of copies
returned
% of copies
returned
Under 5
years
24 48 23 46
5-10 15 30 14 28
11-15 8 16 8 16
16 – 20 2 4 2 4
21 years
and above
1 2 1 2
50 100 48 96
SOURCE: PRIMARY DATA
The above table is simple and self explanatory. It can be seen that
48 out of the 50 copies of the questionnaires distributed, representing 96%
of the total number were actually returned.
REFERENCES
Adoku, N.N (1985): Workers Participation in Nigeria Organizations. Unpublished MBA Thesis of the Rivers State University of Sciences and Technology, Port Harcourt. Ahiazu, A.I (1981): Culture and Job Regulations: Unpublished P.H.D Thesis of University of Aston, Birmingham. Boyo et al (1972): Marketing Research Test and Cases. Richard D. Irwn Inc, Illinois. Glasar, B.G (1968): The Discovery of Grounded Theory Adline Press London. Osuala I (1983) Proger P. (1980): Dictionary of Contemporary English. The English Language Book Society. London. Robert Feaber (1964): Marketing Research. Et Al Ronald Press London Selltize Etal (1959): Research Methods in Social Regulations. The Ward and Winston Publishers New York. Taylor, J.R. (1988): Marketing Research. An Applied Approach Macgraw Hill Inc. Japan. Zaltman, G And Burga P.C.(1983): Marketing Research Fundamental A.D Dynamics. Mac Graw. Hill Inc. Japan.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1 DATA PRESENTATION
Data collected were grouped into personal data variables, which
formed the part A of the questionnaires and length of service. While part B,
comprises research questions on the application of TQM and Benchmarking
as tools in gaining competitive advantage.
Tables are used in the interpretation of raw data (primary data)
obtained from the sample. Questionnaires responses are also analyzed in
this chapter.
4.2 ANALYSIS OF DATA
The table below represents analysis of data on personal detail of
respondents.
TABLE 4.2.1
A, PERSONAL DETAIL No of % of
1. Sex male responses responses 23 46 Female 25 50 Total 48 96 2. Age 16-35 23 46 36-45 12 24 46 and above 13 26 Total 48 96 Highest 3. Educational A. WASC/GCE; ND, NCE 10 20 Qualification B. HND, BSc 27 54 C. PGD, NBA, MSc, Phd 8 16 D. Others Specify 3 6 Total 48 96 4. Status Top Management 15 30 Middle ,, 13 26 Lower ,, 20 40 Total 48 96
SOURCE: PRIMARY DATA
The table above fully express the differences in perception of the
respondents. For instance, on sex: 23 which represents 46% out of 50
persons in the sample from each establishment are males while, 25,
representing 50% are female respondents.
On Age: 23 which represents 46% out persons are between the ages
of 16 to 35 years, 12 (24%) are between the 36-45 years and 13 (26%)
are 46 years and above.
The average age of personnel in each of the establishment is
computed as following:
TABLE 4.2.1 MEAN AGES OF PERSONNEL
Age Mid-point Frequency
years X F Fx
16-35 25.5 35 892.5
36-45 40.5 7 283.5
46 and above 50 6 300
Total 48 1476
Mean, X = fx = 1476 Σf 48 = 30.75 years = 31 years (approx)
The mean age of 31 years shows personnel canvassed for their opinion on
the topic are working adults who can make a policy statement of
significance.
Also, the mean length of service of the workers in two corporate
organizations is calculated as below:
4.2.3 MEAN LENGTH OF SERVICE OF PERSONNEL
Length of Service x f fx
under 5 years 2.5 15 37.5
5-10 years 7.5 4 30.0
11-15 years 13 6 78.0
16-20 years 18 18 324.0
21 years and above 25.5 5 127.5
Total 48 597.0
SOURCE: PRIMARY DATA
Mean, X = fx = 597.0 = 12.43 years Σf 48.0 12years approx
An average working age of 12 years shows that the respondents are
men and women of wealth of experience on the job and in the society.
TABLE 4.2.4 AWARENESS OF TQM
OPINION NO OF RESPONSES % OF RESPONSE
Yes 46 92
No 2 4
48 96
Source: Response question No 8
from the table, 92% of the respondents accepted the fact that they are
aware of the concept of TQM and Benchmarking.
TABLE 4.2.5 INTRODUCTION OF TQM AND BENCHMARKING
OPINION NO OF RESPONSES % OF RESPONSES
Yes 45 90
No 3 6
48 96
Source: Responses question No 9.
from the above table, it is clear that 90 of the respondents affirm that the
concept has been introduced into their organization while only 6 percent
claimed ignorance.
4.3 DATA ANALYSIS
Statistical Test Technique Employed: - The statistical technique
employed is analyzing the data gathered in this research study is the Chi-
square distribution denoted by X2
The formula for the Chi square is as thus
X2 = Σ (0-E)2
E
Where, O = observed frequency
E = expected frequency
Σ = Summation
X2 = Chi Square
The degree of freedom (df) is given by
df = (m -1 ) (n-1)
Where m = Number of Row
n = Number of Columns
And for the purpose of this test, our degree of freedom.
df = (m-1) (n-1)
= (2-1) (3-1)
= 1 x 2
df = 2
Discussion:
I have chosen Chi-Square as the test Statistic for analyzing data in
this study because Chi square is usually employed when the test of
independence of variable of the sample data are sought, although apparent
difference may exist due to the fluctuations of random sampling (sampling
errors) as well as difference between variables.
4.4 TEST OF HYPOTHESIS
ASSUMPTIONS:
The following assumptions are adopted throughout the test of
hypothesis.
(a) 1% Level of significance, x = 0.01
(b) Degree of freedom: Since we have a 2x3 contingency table, the
degree of freedom,
df = (2-1) (3-1) = 2
(c) Critical Value: At degree of freedom, of 2, The Chi square
X2(0.01) is read from the table as
X2 0.01 at 2, = 9.210
(d) The Expected frequency (E) is calculated
E = Column total x Row total
Over all total
(e) The Null Hypothesis, denoted by H0 and the Alternative Hypothesis
is denoted by HA
]
DECISION RULE
In testing the Null hypothesis H0, the decision rule is to Accept
the Null hypothesis if the Chi-square Calculated is less than the critical
value Chi-square read from the table. And to Reject the Null hypothesis if
the X2 calculated is greater than the Chi square derived from the table.
Reject H0 if X2 calculated < X2 0.01 at 2 = 9.210
Accept H0 if X2 calculated > X2 0.01 at = 9.210
4.4.1 HYPOTHESIS ONE
H0: The application of TQM and Benchmarking by May and Baker Plc
and Unilever Nigeria Plc has not lead to superior corporate performance.
HA: The application of TQM and Benchmarking by May and Baker Plc
and Unilever Nigeria performance.
tested with questions (8) – (12), decision based on question (10)
responses as shown beow:
Table 4.4.1 Observed frequencies and Expected frequencies of the sample
result.
Response Top
management
Middle
management
Lower
management
Total
responses
% of
response
Yes 10 (9.0) 8 (7.5) 6 (7.5) 24 50%
No 8 (9.0) 7 (7.5) 9 (7.5) 24 50%
Total 18 15 15 48 100
SOURCE: PRIMARY DATA
The expected frequencies are in bracket
Chi square calculation for hypothesis 1
O E O-E (O – E)2 (O – E)2
E
10.0 9.0 1.0 1.00 0.11
8.0 7.5 0.5 0.25 0.03
6.0 7.5 -1.5 0.25 0. 03
8.0 9.0 -0.5 1.00 0.11
7.0 7.5 -0.5 0.25 0.03
9.0 7.5 -1.5 2.25 0.30
x2 = Σ (O-E)2 = 0.88
Decision 0.88 < 9.210,
... We reject H0 and accept the HA: that the application of TQM and
Benchmarking by May and Baker and Unilever Nigeria Plc had led to their
superior corporate performances.
4.4.2 HYPOTHESIS 2
HO: There is no significant relationship between the resources of May and
Baker Plc and Unilever Nigeria Plc and the creation of a sustainable
competitive advantage.
HA: There is a significant relationship between the resources of May and
Baker Plc and Unilever Nigeria Plc and the creation of a sustainable
competitive advantage
Tested with questions (13) and (14) and decision based on question (14)
responses
Table 4.4.2 Observed frequencies and expected frequencies of the sample
result
Respons
e
Top
managemen
t
Middle
managemen
t
Lowe
managemen
t
Total
response
s
% of
response
s
Yes 14 (14.25) 12 (11.0) 12 (12.67) 38 79
No 4 93.75) 2 (2.92) 4 (3.33) 10 21
Total 18 14 16 48 100
SOURCE: PRIMARY DATA
The expected frequencies are in bracket.
The Chi square Calculation for hypothesis 2.
O E O – E (O - E)2 (O – E)2
E
14.0 14.25 - 0.25 0.0625 0.00
12.0 11.08 0.92 0.08464 0.08
12.0 12.67 -0.67 0.4489 0.04
4.0 3.75 0.25 0.0625 0.02
2.0 2.29 -0.71 0.8464 0.29
4.0 3.33 0.67 0.4489 0.13
X2 = 0.56
DECISION: 0.56 < 9. 210
: We reject H0 and conclude that there is significant relationship
between the resources of May and Baker Plc and Unilever Nigeria Plc and
the creation of a sustainable competitive Advantage
4.4.3 HYPOTHESIS THREE
H0: There is no significant relationship between the implementation of
TQM and Benchmarking by May and Baker Plc and Unilever Nigeria Plc and
their leadership position in the manufacturing industry Nigeria
Tested with question (15) and (16) and decision based on question (16)
responses as shown below:
Table 4.43 observed frequencies and expected frequencies of the
sample result.
Response
s
Top
managemen
t
Middle
managemen
t
Lower
managemen
t
Total
response
s
%
response
s
Yes 11 (10.3)* 15 (14.5) 15 (16.2) 41 85
No 1 (1.7) 2 (2.5) 2 (2.8) 7 25
Total 12 17 19 40 100
SOURCE: PRIMARY DATA
* The expected frequencies are in bracket
Chi square calculation or hypothesis three
O E O – E (O – E)2 (O – E)2
E
11 10.3 0.7 0.25 0.02
15 14.5 0.5 0.25 0.02
15 16.2 - 1.2 1.44 0.09
1 1.7 - 0.7 0.49 0.30
2 2.5 - 0.5 0.25 0.10
4 2.8 1.2 1.44 0.50
X2 = Σ ( 0 – E)2 = 1.06
E
DECISION: 1.06 < 9. 210
... We reject H0 and accept HA: That there is significant relationship
between implementation of TQM and Benchmarking by May and Baker Plc
and Unilever Nigeria Plc another leadership position in manufacturing
industry Nigeria.
4.4.4 HYPOTHESIS FOUR
H0: There is no guarantee that the continual application of TQM
and Benchmarking by Plc will keep them on top for a foreseeable future
time.
HA: There is a guarantee that the continual application of TQM and
Benchmarking by May and Baker Plc and Unilever Nigeria Plc will keep
them on top for a foreseeable future time.
Tested with question (17) – (19) and decision based on responses to
Question (17) as shown below:-
Table 4.4.4 Observed and expected frequencies of the sample result
Response
s
Top
managemen
t
Middle
managemen
t
Lower
managemen
t
Total
response
s
% of
response
s
Yes 10 (10.29)* 15 (13.46) 13 (14.25) 38 79
No 3 (2.71) 2 (3.54) 5 (3.73) 10 21
Total 13 17 18 48 100
SOURCE: PRIMARY DATA
* The expected frequencies are in bracket.
Chi square calculation for Hypothesis FOUR
O E O – E (O –E)2 (O – E)2
E 10 10.29 - 0.29 0.084 0.01 15 13.46 1.54 2.3716 0.18 13 14.25 - 1.25 1.5625 0.11 3 2.71 0.29 0.0841 0.03 2 3.54 - 1.54 2.3716 0.67 5 3.75 1.25 1.5625 0.42 X2 = Σ (O –E)2 = E 1.42 DECISION 1.42 < 9. 210
. .. WE reject H0 and conclude that there is a guarantee that the continual
application TQM and Benchmarking by May and Baker Plc and Unilever
Nigeria plc will keep them on top for a foreseeable future time.
CHAPTER FIVE
SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATIONS
5.1 SUMMARY OF FINDIDNGS:
The purpose of this chapter is to present a summary of major
findings on the subject matter of this study, the whole exercise is aimed at
finding out the extent to which the application of Total Quality
Management (TQM) and Benchmarking by May and Baker Plc and Unilever
Nigeria plc has helped them to gain competitive advantage in the
manufacturing sub-sector of Nigeria. The study also looked into the extent
at which the application of the philosophy of TQM and Benchmarking has
helped these organizations to improve their corporate performance in
product and services delivery, the effect on their workforce and some
problems associated with the implementation of the programme. Equally,
the future application of this concept for sustainable performance was
examine and finally, the universal application by organizations struggling to
gain competitive edge was equally considered.
The followings represent the summary of the findings for this study:-
(1) Though the concept of TQM and Benchmarking is relatively new, it
has gained widely acceptance.
(2) With TQM, organizations are not only interested in quality of its
finished products alone, but quality, as defined in all its operations
by every member of the organization.
(3) TQM and Benchmarking is seeking a zero defect on their final
output and cost reduction as well.
(4) Like every other programme carried out by man, there are some
problems associated with the implementation of the total quality
management and Benchmarking policy in every organization.
(5) The study also found out that there are a lot of motivational
factors associated with adoption of this concept as the employees
affirm their commitment to the policy.
(6) There seems to be a congruence between the top performance of
these organizations and their application of the TQM and
Benchmarking Strategy.
The enumerated findings cannot be said to be exhaustive bearing in
mind the limitation of this study as earlier stated as a major constraint and
equally, is based on analysis of my primary and secondary data which is
capable of appreciable level of errors.
5 .2 CONCLUSION:
After a careful analysis of the findings of this study, one can easily
see that the fantastic performances of these organizations, are traceable to
their adoption of TQM and Benchmarking strategy.
The Total Quality Management and Benchmarking is a
comprehensive approach to quality search and it insists on continual
improvement. That is to say that there is no term as the best quality”.
The high motivation of their employees also has to do with this
philosophy as every one has a feeling of contribution to the organization’s
performance.
The use of TQM and Benchmarking can indeed be effective tool to
gaining competitive advantage.
It requires huge support of the organizations resources both man and
material especially the top management, for the implementation of this
policy to be effective.
5.3 RECOMENDATIONS
One bail out option to organizations in competing environment is the
quick adoption of the TQM and Benchmarking strategy, hence I strongly
recommend it to other players in Nigeria economy.
Other prescriptions include:
Organizations should attract competent calibre of employees as this
will form the fulcrum of all other strategies;
More resources should be committed to training and development of
its manpower needs;
And they should build a flexible and more response organizational
structure which can easily adapt to changing economic climate.
BIBLIOGRAPHY
TEXT BOOKS:
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Macgrawhill Inc. Japan.
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JOURNALS
Blendel T. (1993): Benchmarking for Competitive Situation: Financial
Times Pitman Publishing London.
CAM And CAJE (1994): “Computer and Benchmarking” Financial Times, Pitman
Publishers, London.
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Association Times (AMA). New York.
Department of Management,
Faculty of Business Administration University of Nigeria Enugu Campus 2nd October, 2008.
Dear Respondent,
I am a post graduate of student of the above mentioned university
and I am researching on the topic: “The application of benchmarking and
total quality management (TQM) as tools in gaining competitive and
advantage: A study of May and Baker Plc and Unilever Nigeria Plc.
Attached is a questionnaire which I oblige you to complete for me to
enable me achieve the research findings.
I consider your response very important to achieving my aims and I
promise to treat it confidentially and to use it solely for an academic
exercise.
Thank you for your co-operation.
Yours faithfully,
UDEIGWE, GODFREY O.
QUESTIONNAIRE
The application of benchmarking and total quality management (TQM) as tools in gaining competitive and advantage: a study of may and baker plc and unilever Nigeria plc.
SECTION A
PERSONAL DATA:
1. Which level of the management do you belong to? (a) Top
(b) Middle (c) Lower
2. How long have you worked in the company?
Under 5years 5-10 years 11-15 years
16-20 years 21 years and above
3. What is your highest Educational Qualification?
WASC/GCE/ND/NCE HND/BSc/BA/B.ED
PGD/MSC/MBA/MPA/PHD Others Specify
4. Which is your Age bracket?
16-35 years 36-45 years
46 years and above
5. What is your marital status?
Single Married Divorced
6. Sex: Male Female
SECTION B
Please Mark (X) in box that best satisfies your response
7. Benchmarking and Total Quality Management (TQM) is a management
philosophy which seeks to integrate all parts and processes of an organization in
order to achieve a continuous improvement in quality of goods and services along
the line dictated by the customer. Do you agree with this statement?
Yes No
8. Do you believe that the application of Benchmarking and TQM can be used
as tools to gaining competitive advantage? Yes No
9. Is this philosophy presently being practised in your company?
Yes No
10. Do you think that implementation of Benchmarking and TQM by your
organization has contributed to their improved corporate performance in the
recent years? Yes No
11. Has the strategy increased your customers’ satisfaction both in product and
services presently? Yes No
12. Are all the personnel in support of the policy of Benchmarking and TQM
since its introduction? Yes No
13. Can you say that the application TQM and Benchmarking is responsible for
your company’s fantastic performance for the past two years?
Yes No
14. Do you think that the resources of your organization enabled the easy
introduction of the TQM and Benchmarking strategy in creating a
sustainable competitive advantage?
Yes No
15. Prior to implementation of TQM and Benchmarking your firm was not
maintaining any leadership position, is it true? Yes No
16. The implementation of TQM and Benchmarking by your organization has
earned her the leadership position in the industry today?
Yes No
17. The continual application of TQM and Benchmarking will guarantee your
organization to remain on top in the years ahead, do you believe it?
Yes No
18. Is it obvious that the in introduction of TQM and benchmarking has led to
zero defect and cost savings? Yes No
19. Do you recommend the philosophy of TQM and Benchmarking to all
organizations? Yes No
20. Are there still areas for improvement where the TQM and Benchmarking is
lacking in your organization? Yes No