IMPACT OF TOTAL QUALITY MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY (A CASE STUDY OF AMA BREWERY, 9TH MILE CORNER, ENUGU)

IMPACT OF TOTAL QUALITY MANAGEMENT ON ORGANIZATIONAL PRODUCTIVITY (A CASE STUDY OF AMA BREWERY, 9TH MILE CORNER, ENUGU)

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TABLE OF CONTENTS

TITLE........................................................................................................................................................... i

DECLARATION............................................................................................................................. ii

CERTIFICATION........................................................................................................................ iii

DEDICATION.................................................................................................................................. iv

ACKNOWLEDGEMENT..................................................................................................... v

TABLE OF CONTENTS................................................................................................... vii

ABSTRACT........................................................................................................................................ x

CHAPTER ONE

INTRODUCTION

1.1    Background of the Study................................................................................... 1

1.2    Statement of the Problem................................................................................. 6

1.3Objectives of the Study.............................................................................................. 8

1.4    Research Questions............................................................................................... 9

1.5    Research Hypotheses.......................................................................................... 9

1.6Significant of the Study........................................................................................... 11

1.7Scope of the Study....................................................................................................... 12

1.8Limitation of the Study.............................................................................................. 12

1.9Definitions of Terms.................................................................................................... 13


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CHAPTER TWO

LITERATURE REVIEW

2.1    The Concept of Total Quality Management............................. 17

2.2Some contributions of TQM............................................................................... 19

2.3Customer Focus and Satisfaction.............................................................. 24

2.4Principles of TQM.......................................................................................................... 27

2.5Tools for TQM.................................................................................................................... 28

2.6Benefits of TQM to Organizations.............................................................. 32

2.7Implementation of TQM Programme in an

Organization.................................................................................................................. 33

CHAPTER THREE

RESEARCH METHODOLOGY

3.1    Research Design..................................................................................................... 34

3.2    Area of Study................................................................................................................ 35

3.3Population of Study..................................................................................................... 36

3.4Sample and Sample Procedures................................................................ 36

3.5Instrument of Data Collection........................................................................... 37

3.6Validity and Reliability of the Study........................................................... 38

3.7Method of Data Collection................................................................................... 38

3.8Method of Data Analysis....................................................................................... 39


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CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

4.1    Data Presentation................................................................................................... 41

4.2Presentation and Analysis................................................................................... 42

CHAPTER FIVE

SUMMARY          OF            FINDINGS,           CONCLUSION          AND

RECOMMENDATIONS

5.1    Summary of Findings.......................................................................................... 57

5.2    Conclusion....................................................................................................................... 58

5.3    Recommendation.................................................................................................... 59

BIBLIOGRAPHY....................................................................................................... 60

APPENDIX...................................................................................................................... 62


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ABSTRACT

This study is an attempt to examine the Impact of Total Quality Management (TQM) on organizational productivity, A Case Study of Ama Brewery, 9th mile Enugu. The research further focuses on the approach adopted by organizations that has implemented the concept and the rate of success achieved. These is a prove that effective TQM implementation can improve their competitive abilities and provide strategic advantages in the market place. The effects of not participating in TQM implementation by all management levels, challenges disrupting the TQM implement in an organization and failure to organize frequent employee training have been a big problem. This research work tries to ascertain the impact of TQM implementation in the organization, level of management involvement, challenges disrupting the implementation, impact of employee training and TQM principles application to goal attainment. It is through the questionnaire method and oral interview that data are collected from aforementioned organization. References were made to journals, related books, internet and magazines when writing this project. The aforementioned organization agreed that TQM have impact in organizational productivity. It is not all management levels in Ama Brewery contribute in TQM implementation. The failure to organize frequent employee training have been a major setbacks to their organization, while some management challenges disrupt TQM implementation in the organization. They should engage in frequent employee training inorder to increase the level of individual and organizational competence. All management levels should join hands in TQM implementation so that quality will be attained. Researches can be made for further informations on all related textbooks from foreign country.


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CHAPTER ONE

INTRODUCTION

1.1       BACKGROUND OF THE STUDY

Total Quality Management (TQM) has become a world-wide topic in the twenty-first century. Having its roots partly in the USA and partly in Japan, it was primarily adopted by some Japanese companies in the decades immediately after world war II with the greater successes of Japanese companies during the 1980s.

Companies all over the world found that it was necessary to have good quality management practices in order to stay competitive (Lagrosen, 2002). Total Quality Management is an enhancement of the traditional way of doing business. It is a proven technique to guarantee survival in world competition. Only by changing the actions of management will the culture and actions of an entire organization be transformed. Total quality management (TQM) as a management approach of an organization is centred on quality based on the participation of all its members and aiming at long term success. This is achieved through


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customer satisfaction and benefits to all members of the organization and society.

In other words, TQM is a philosophy for managing an organization in a way, which enables it to meet stakeholders need and expectations efficiently and effectively without compromising ethical values (ISO, 8404, 1994). TQM has been widely implemented throughout the world. Many firms have arrived at the conclusion that effective TQM implementation can improve their competitive abilities and provide strategic advantages in the market place. (Anderson, Fornell & Lehmann, 1994) several studies have shown that the adoption of TQM practices can allow firms to compete globally (Easton, 1993), (Ernst and Young, 1996; Womack & Roos, 1990). Several researchers also reported that TQM implementation has led to improvements in quality, productivity and competitiveness in only 20 - 30% of the firms that have implemented it (Benson, 1993). According to a survey of manufacturing firms in Georgia, the benefits of TQM are improved quality, employee participation, teamwork, working relationship, customer

satisfaction, employee, satisfaction, productivity, communication, profitability and


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market share (Dale, Zairi, Vanfder Wiele & Williams, 2000).

A study conducted by Rategan (1992) indicated that a 90% improvement rate in employee relations, operating procedures, customer satisfaction, and financial performance is achieved due to TQM implementation. However, Burrows (1992) reported a 95% failure rate for initiated TQM implementation programs; Eskildson (1994), Tomow and Wiley (1991) reported that TQM implementation has uncertain or even negative effects on performance. Longenecker and Scazzero (1993) indicated that achieving high product quality and pursuing successful TQM implementation are highly dependent on top management support.

Total quality management is seen as a holistic approach to managing project. It includes continuous improvement, training and re-training of staff, customers satisfaction, top management support, defect-free product at first attempt, elimination of rework, cost effectiveness etc.

Haris and McCaffer (2002) stated that total quality management consists of all activities that managers perform to improve their quality and policy such as quality planning,


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