IMPACT OF TOTAL QUALITY MANAGEMENT ON CORPORATE PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY (NBC)

IMPACT OF TOTAL QUALITY MANAGEMENT ON CORPORATE PRODUCTIVITY IN NIGERIAN BOTTLING COMPANY (NBC)

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ABSTRACT

From the structure of this research work topic is Total Quality Management as a means of enhancing organizational success in Nigerian Bottling Company, Uyo. This start  with a brief background of the study that introduce the subject matter, also statement of the problem is also highlighted which is the reason why the researcher undertook the study to exploit such problems and come up with solutions, the objective of the study is discuss to see how total quality is important in the organization, in chapter two which is aimed in discussing the main body of the study which is review of literature. It consists of quality, quality determinants, the benefit of total quality management to the organization, and the challenges of total quality management, the researcher also employs the use of research methodology to collect data from sample size of 80, in Nigerian Bottling Company, the research work adopt is survey method of research using questionnaire designed with likert rating scale to gather and analyzed the data. The data were presented, analyzed and tested in chapter four of the project in conclusion and recommended some ways to improve on quality in the organization.

CHAPTER ONE

INTRODUCTION

1.1            HISTORY

The Nigerian Bottling Company Plc (NBC), which is part of Coca-Cola HBC, was incorporated in November 1951 to bottle and sell carbonated non-alcoholic beverages. The company has the sole franchise to bottle Coca-Cola products in Nigeria. Production of Coca-Cola began in 1953 at a bottling facility in Lagos, and new plants at Kano, Port Harcourt and Ibadan were opened shortly afterwards including Uyo.

NBC became a public company in 1972 with its shares listed on the Nigerian Stock Exchange. NBC generates its own power and is self-sufficient in carbon dioxide and water production. It has 16 bottling facilities around the country, and it uses 82 distribution warehouses and 200,000 distribution outlets. The company's head office is on the Lagos mainland at Ebute-Metta NBC employs over 7,000 people, making it the largest employer in the non-oil private sector in Nigeria. . Today, the company is part of the Coca-Cola Hellenic Bottling company (CCHBC), one of Coca-Cola Company’s largest anchor bottlers worldwide. CCHBC operates in 28 countries, serving 540 million consumers and selling over 1.3 billion unit cases of beverage annually.

BOARD & MANAGEMENT

The company is governed by a stable nine member board of directors comprising of very prominent individual who have excelled in different fields of endeavor within and outside Nigeria. The Board is headed by Ambassador Olusegun Apata while the management team is led by Mr. Ronald Ebelt, an expatriate professional.

FINANCING STRUCTURE

The authorized share capital of the company is N750 million made up of 1.5 billion ordinary shares of 50k per share out of which 1.308 ordinary shares of 50k each or N654, 367 million is issued and fully paid. The share capital of the company grew from N487 million in 2003 to the present amount in the FYE 2006 through several scrip issues. Majority of the shares is held by foreign investors comprising of Molino Soft Drinks S.A (55.81%) and CCHBC Services Ltd (10.62%), thus only 33.59% is available to the public. Shareholders fund has increased from N19.31 billion in 2003 to N22.81 billion in 2007 representing a compounded annual growth rate (CAGR) of 4%.

1.2      BACKGROUND OF THE STUDY

From the creation of the earth by God, total and effective management was require from man to keep and control the activities and regulation of his creation, yet problem still came up. Today in business world including all aspect of live Total quality management which can be defined as a strategy for improving business performance through the commitment of all employees to fully satisfying agreed customer requirements at the lowest cost through the continuous improvement of products and services, business processes and the people involved.

Total quality management is concerned with the management of all aspects of quality services provided to the customer

Deleforge (2000). These involve quality of goods delivery price of services, quality of promotion and merchandising. The importance quality to an organization cannot be overemphasized because of it attribute to the fact that quality determines to a large extent, productivity, customer satisfaction, profit and other key performance element to an organization.

Total Quality Management (TQM) is one of the approaches used to enforce quality in the system and process of an organization as a concept; it sees the participation of all and sundry. Organization in the pursuit of quality so as to ensure customer satisfaction and organizational and societal benefit. The rationale behind the total quality management (TQM) concept is that, since a major objective of most corporate organizations (especially the profit concerns) is to gain and maintain competitive advantage every key elements that has a direct bearing on the achievements of that goal is to be accorded priority attention, among these elements is a quality as it is central to the organization’s competitiveness.

The concept of TQM views that, to achieve and sustain competitive advantage. A firm has to be at the best (optimum productivity) and on the other hand, the expectation of customers has to be met or satisfied. For the reasons quality which is true fundamental element in the productivity index assessment has therefore become and remain a business of all within the firm as it has direct linkages to both productivity and customers satisfaction problem surrounding the status of a company’s competitiveness cannot be in connected with it product performance that how well a product deliver to expectation, largely determines how competitive the company become.

1.3     STATEMENT OF THE PROBLEMS

The continued effort of firm to grow and improve their performance, both internally and in the market place is constantly being challenged by a number of fundamental issues, for firm to perform credibly important key elements of its internally processes has to be looked into in relation to its market role and relevance, crucial among these basic is the subject of quality.

Quality represents a key component of the productivity index and even so the external performance or position of the firm in the market place.

The problems or challenges associated to quality for a firm to continue to be complex one. The question of these hastens firm fared in regard to quality is almost answer immediately by assessment of the revealing each firms position in the market place that begin to come to tire is how these firm see quality, has quality been properly defined as expressed in their processes and output? In what aspects are the firms’ internal processes adding the achievement of quality and which are the areas in which they are lacking? What is the extent of their measuring to customers, requirements and expectation? The concept of total quality management (TQM) is an approach intended to inculcate a total quality orientation at all levels of the firm where quality is intended to achieve first and always how has this concept fared in the firms, in terms of applicability? Are the strategies, technology and culture and also training and development of organizational members of the organization duly impacted by the concept? What is the productivity assessment of the firm saying in regard to output on quality and firms competitiveness? A proper look and review of the perception, processes and applications of quality and the TQM concept would help to revise specific problems area as related to the subject in the firms and further suggest relevant approaches to solve them.

1.4     OBJECTIVES OF THE STUDY

The objectives are as follows:

i)                   To identify the need for total quality management in an organization.

ii)                To identify the extent to which total quality management is being applied in the organization

iii)              To identify how total quality management control reduce cost of product and services

iv)              To identify best strategies of the TQM concept that ensures quality, productivity and competitive advantage for firm.

1.5Significance of the study

This research will be of much significance to address the following problem.

Setting up a standard of quality measurement system in the organization which has really affect the operation of the organization, and also lack of effective leadership of the organizational members, which can be attributed to total quality management in the organization.

This research work will also go a long way to help the organization the research work is carried out for them to compete globally in the market; it will also be of immense contribution to future researcher the similar study.

1.6Research Questions

i)                   What are the needs for total quality management in the organization?

ii)                What are the extents to which total quality can be applied in the organization?

iii)              How can total quality management control reduce cost of production and service?

iv)              What are the best strategies that total quality management concept that ensures quality productivity and competitive advantage?

1.7Scope of the study

The scope of the study is concerned about the impact of total quality management on corporate productivity in Nigerian Bottling Company UYO, which is limited to what is happening in the Nigerian Bottling Company plc, UYO, from 2004 to 2015.

1.8Limitation of the study

In carrying out this research, the researcher is facing some problem and they are as follow:

One of the limitation face by the researcher is the time constraint, being the most serious and precious assets, coupled with the fact that it waits for no one, the researcher had no time owning to the fact that there are other numerous task and obligations to meet.

Another problem face by the researcher is finance the work was limited due to lack of enough money that will have enable me to do a more thorough job there, was limited to the level that the resources at my disposal permits.

Another problem face by the researcher is getting attention of the people the researcher intended to sample. When trying to ask question in the organization you are carrying out your research some people will not give you attention when you are trying to ask them question they don’t answer you.

1.9Definition of terms

Management: this is the art of coordinating the element of factors of production toward the achievement of the purpose of and objective through the use of human labour, materials and machines.

Total quality: this is performance superiority in delaying customers.

Quality management: this is a management approach which advocates the integration of quality into organization’s strategy business plan.

Quality: this is an act of confirming to the client requirements. Quality is the ability to meet the requirement of customers, now and in the future at a lower over all cost.

Total: this means the summation or association of everybody with the company and its operations activities produces or services.

Quality control and assurance: this h


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