Impact Of Total Quality Management On Production Cost Of An Organization

Impact Of Total Quality Management On Production Cost Of An Organization
(A Case Study of Nigeria Bottling Company Plc, Kaduna)


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This research seek to identify the impact of total quality management on production cost of an organization in Nigeria bottling company Plc, Kaduna Plant as a case study. Background of the study create awareness on total quality management as the hub for customers satisfaction quality become a primary source of global competitive advantages, and lead indicator for improved profitability. The statement of problem layered more emphasis on poor quality of product and personnel and the management behaviors towards the concept of Total Quality Management. The research work also attempted to identify the methods of quality control, cost of product, cost components that make up production cost and as Total Quality Management can reduce cost. The researcher went further to review related literatures on the project topic such as Evaluation and definition of Total Quality Management. The traditional vs Total Quality Management approach, as well as quality and product cost. The research methods use in the collection of data the justification for using the method as well as the statistical instrument used is established. These is one research hypothesis for which the questionnaire is drown and designed, administered to sample size of 25 respondents of the organization in question.












Table of contents

CHAPTER ONE: introduction

1.1     Background of the study .                                                           1

1.2     statement of problem                                                                   2

1.3     Objective of the study                                                                  3

1.4     significance of the study                                                              4

1.5     Scope of the study                                                                       4

1.6     Research Questions                                                                      5

1.7     Definitions of the Terms                                                              5

CHAPER T WO: literature review

2.1     Evaluation of Total Quality Management                                     7

2.2     Conceptual Framework Quality                                                   9

2.3     Cost of Quality                                                                            13

2.4     Quality Determinants                                                                   16

2.5     Dimensions of Quality                                                                 19

2.6     Responsibility for Quality                                                            20

2.7     Quality Control                                                                            25

2.8     inspection                                                                                    27

2.9     Cost of Quality Product                                                               32

CHAPET THREE: Research Methodology

3.1     Area of the Study                                                                        39

3.2     Research Design                                                                          39

3.3     Population of the Study                                                             39

3.4     Sampling and sampling Techniques                                             40

3.5     Instrumentation for Data Collection                                             40

3.6     Administration of the Instruments                                               40

3.7     Techniques for Data Analysis                                                      41

CHAPTER FOUR: Data Presentation and Analysis

4.1     Data Presentation                                                                         42

CHAPTER FIVE: summary, conclusion, and Recommendations

5.1     Summaries of Procedures                                                           47                                                                                                                                                                                                                                                                    5.2     Discussion Findings                                                                    48

5.3     Implication of Findings                                                               49

5.4     Conclusions                                                                                 50

5.5     Recommendations                                                                       51

5.6     Suggestion for further Study                                                       53

5.6     Bibliography                                                                                54



CHAPTER i: Introduction

1.1     Background of the Study

Total quality management is known as the primary role of management to lead an organization in its daily operations and maintains it as a viable entity into the future. Quality has become an important factor in these. Although ostensibly always. an objective of business is customer in customer terms, because a specific goal in the late 1980’s provide higher quality are recognized as a key element for success, most large operations taking that path have document the success, first they survived the competitors that has set the higher quality levels and now have regained some of their former market. Total Quality Management is perhaps the leading management approach that compares employed to improve their product and services, quality with the aim of improving typical measures of business performance. (e.g profit, increased market share reduced cost). The Japans have capture more than 30% of the American and electronic markets. It was achieved by offering higher value products. In response to the boom in the competitor market, many American firms have implemented require the integration of Human resources, production engineering store and purchasing marketing, distribution, and planning is a continuous improvement process; it is much wider than the traditional quality view of incoming inspection and process control. It means that the entire organization is working as a team including the cooperate top managers and each an every employee, it is on innovative way of thinking that affect the culture, the strategy and technology of company. The organization needs a holistic approach so that every department in the organization should come together for cost reduction and improve products, approach will reduce cost and quality will be achieve for competitive advantage.



1.2 Statement of the Problem

This Empirical research has identified some general problems that are associated with Total Quality Management which are listed below. One of the problems is the failure of organization to understand the importance of material quality control and often ignore its application. This has led to the receipt of low quality and substandard lots of materials into the in process, culminating in poor quality out put and increased cost for these organizations.

The problem of organization over-relying on suppliers ability as a result of trust thereby falling to check and/or monitor the incoming materials for any possible defect or deviations from specification.

Others are manpower related problems were also observed to be a major barrier for achieving a Total quality management program. Most organizations lack the service of specialists to handle materials quality control trained/retrained or lack of proper supervision due to top management neglect.

Facilitates related problem in organizations, there are inaccuracies in machineries, tools, fixtures, measuring instruments etc. that are required in managing quality and total quality control process which can be disastrous for decision making as a result of the unreliable outcomes. The existence of these problems brought about the head for

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