TABLE OF CONTENTS
Table of Content
CHAPTER ONE: GENERAL INTRODUCTION
1.1 Background of the Study
1.2 Statement of the Problem
1.3 Research Question
1.4 Objective of the Study
1.5 Hypothesis of the Study
1.6 Significance of the Study
1.7 Scope of the Study
1.8 Definition of Special Terms
CHAPTER TWO: LITERATURE REVIEW
2.1 Historical Background of Total Quality Management
2.2 Principles of Total Quality Management
2.4 Elements of Total Quality Management
2.5 Total Quality Management Tools
2.6 Benefits of Total Quality Management (TQM)
CHAPTER THREE: RESEARCH METHODOLOGY
3.2 Research Design
3.4 Sampling Size and Sampling Techniques
3.5 Data Collection Methods
3.6 Instrument of Data Collection
3.7 Data Analysis Method
3.8 Validity and Reliability of the Instrument
3.9 Limitation of the Methodology
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS 4.1 Introduction
4.2 Section One: Response Rate and Personal Data Analysis
4.3 Section Tow: Analysis of Response to the Questionnaires
and Test Hypothesis
CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION
5.1 Summary of Findings
5.4 Further Areas of Study
1.1 BACKGROUND OF THE STUDY
In real life situation, a perfect competition in the market does not exist, i.e a situation whereby, there are many buyers and sellers that transact business with homogenous commodity in which any contrary action taken by any seller or buyer cannot in anyway influence the market situation. In this market, there is a uniform price and the product of every seller is identical in shape, quality, colour and size.
What exists is an imperfect competition, where there may be heterogeneous commodities; price variation etc examples of this type of market could be monopoly; where there is a single producer or seller of a particular product that has no close substitute. Duopoly; where there are two producers of a particular product. Monopsony, where there is a single buyer of a particular product or commodity. Duopsony; where there are two buyers of a commodity. This happens in the service industry e.g two employers of a pilot are the Nigerian/ national Airline Corporation and the private Airlines. Monopolistic competition; also called oligopoly, it is situation where there are few sellers of similar but differentiated commodities with many buyers. These commodities could be differentiated with brand name, packaging colour, shape etc
Monopolistic competition is the most common market in real life situation. i.e products of close substitute with many buyers, due to this there is a quest for quality.
Before, the 21st century, priority is placed on productivity and high profitability but this century is a century with high demand for quality. The quest for quality is the key for competition in the market. Quality as defined by Juran (1989) means “fitness for use”. It is the ability of a product or service to consistently meet or exceed customers’ expectations. This could be in different dimensions.
Due to high need for quality, a strategy came up called the total quality management (TQM) which is one of the developments that have revolutionized operations and productivity in this modern day. It is being adopted around us in manufacturing industry, banking industry, and service industry. Therefore, there is no doubt that organizations that adopt this strategy becomes successful than those that do not incorporate this technique into their systems.
Total quality management (TQM) is a comprehensive approach to improving competitiveness, effectiveness, efficiency and flexibility through planning, organizing and understanding each activity and involving each individual at each level.
Total quality management (TQM) improves all aspects of the organization, from the top to the lowest person in a company, gearing them or motivating all staffs so as to achieve and deliver the best quality of products to customers.
Total quality management (TQM) establishes the idea of “ do it right in the first instance” by conforming to the standard required by the customers and avoids operational defects. The concept views that quality management is the responsibility of employees at all levels. This is intended to reduce the obligation of the quality control unit. in other words, where the output conforms to the plan, then there may be no need for any control measures. TQM is of the view that quality improvement is a continuous process as determined by the customers, and that quality product achieved in the first instance is a catalyst of cost reduction.
In order to publicly demonstrate quality commitment, many organizations have pursued quality certification i.e Iso 9000 series. This is a series of quality management standard being embraced by organizations around the world. The aim of this series of standards is to prevent faults and errors in the activities of the organizations which may affect the quality of products or services the customers receives.
An international, generic and non competitive quality award model was developed against which a company could assess its progress in areas of quality or prepare an application for a quality award. It is also applicable to a company of any size, in any business and in any country.
For an organization to excel in the contemporary market and environment, it must place its highest priority on the production of quality products and services in addition to placing priority on high productivity and profitability objectives, which as a result will bring about cost reduction.
1.2 STATEMENT OF THE PROBLEM
There are numerous problems existing in this area of study, they include:
Poor technology: the technical know how is scarce and not affordable in order to get good design and effective system to produce quality products or embark on quality management.
Short time horizon: organizations do not invest much time in quality management, they even feel that time used in reaching certification for total quality management could have been used in other projects.
Level of orientation and awareness: the level of awareness and orientation about TQM especially in Nigeria is very low therefore, most of the organizations do not appreciate it.
The traditional view on quality improvement: this can be explained through the concept of “return on quality” this theory supports the idea that quality improvement cost money. Hence, there should be a trade off between the cost of improving quality and the benefits expected from the improved quality product/ service. Thus, firms operate at the optimum quality level that maximize profit and not necessarily at the highest quality.
1.3 RESEARCH QUESTIONS
• What are the factors enhancing total quality management?
• To what extent does total quality management of products really enhance operational efficiency?
• Does attainment of certification mean improved and sustained quality service?
• How can the practice of total quality management (TQM) be improved in Nigeria organizations?
1.4 OBJECTIVES OF THE STUDY
The objectives of the study are to;
Determine the factors enhancing total quality management (TQM)
Determine the impact of total quality management of production in the competitive environment
Verify the commitment of management to improve and sustain quality products after certification.
Measure the inhibiting set of goals in the area of marketing and their impact on quality standards.
Determine the various strategies to enhance quality management.
1.5 HYPOTHESES OF THE STUDY
The hypotheses to be tested for in this study are:
Ho: There is no correlation between total quality management and customer’s satisfaction
Hi: There is correlation between total quality management and customer’s satisfaction
Ho: There is no correlation between total quality management and competitive advantage of an organization.
Hi: There is correlation between total quality management and competitive advantage.
Ho: There is no correlation between attainment of certification and improved quality products.
Hi: There is correlation between attainment of certification and improved quality products
Ho: There is no correlation between total quality management and efficiency of operation
Hi: There is correlation between total quality management and efficiency of operation
1.6 SIGNIFICANCE OF THE STUDY
Total quality management (TQM) is what should be adopted by every business organization in this competitive environment..
The significance of this study to an organization is improved profitability. In case, the coca-cola bottling company apply the recommendation of this study, there is every possibility of increase in its profitability. Also, there will be increased market share, cost savings and customer satisfaction. The increase in market share comes as a result of higher volume in sales, and the increased profitability comes when customers are wiling to pay higher prices for better quality. Quality products will promote the reputation of an organization because people will begin to have a good perception about the product of the organization.
The significance to the public is that, it makes them recognize and value good and quality products. This will reduce unnecessary cost spent by the public or consumers on products of low quality. Rather, they will be given value for their money.
To the government, it makes them give sanctions to products and services of low quality and below standards. It will also help to develop the economy thereby attracting foreign investors and increasing the foreign reserves of the country.
1.7 SCOPE OF THE STUDY
The study will only cover the operations of coca- cola bottling company (Ondo,Oyo states depot).its purpose is to contribute on the subject matter of total quality management (TQM) as a means of increasing production level, profitability, efficiency in the organization.
The choice of coca-cola bottling company was formed because of the fact that, it is one of the fast growing and successful manufacturing company in Nigeria which has gotten a lot of ratings and awards internationally.
1.8 DEFINITION OF SPECIAL TERMS
1.8.1 QUALITY: this is the basic standard that every business organization must strive to meet in order to be successful and also to remain in the business. Quality can be described as the ability of a product or service to satisfy wants consistently, offering value for money, exceeding customers’ expectations.
Different dimensions of quality exist which are:
Conformance to requirements
Service after sale
1.8.2 PRODUCT: This is a transformed raw material. It is the end result of a manufacturing/ production process. It is finished goods that can be offered for sale
1.8.3 COMPETITIVE ENVIRONMENT/ MARKET: It consists of different operators in which every one is striving for survival and acceptability. It is an avenue where every operator wants to do something different and better than his co- operators.
1.8.4 CERTIFICATION: This is an act of certifying in order to declare something formally, especially in writing or in printed document.
1.8.5 SERVICES: This is the transformation of raw materials into intangible goods. This can only be felt.
1.8.6 ISO 9000 SERIES: This is a series of quality management standards embraced by organizations around the world. These standards were established by the international organizations and are becoming recognized standards for evaluating and comparing firms in the global market place. It provides proof that a quality operation system is in place. The main goal of Iso 9000 series/ certification should be, having work processes and operation system in place that enables employers throughout the organization to perform their jobs in a consistently high quality way.
1.8.7 TOTAL QUALITY MANAGEMENT (TQM): This is a long term effort by an organization to change its own management approach towards the production of goods and services that continuously meet agreed customers’ requirements at the lowest cost by releasing the potentials of all employees (Yalokwu 2002)
BRIEF HISTORY OF COCA COLA
In May, 1886, coca cola was invented by Doctor John Pemberton a pharmacist from Atlanta, Georgia. John Pemberton concocted the coca cola formula in a three legged brass Kettle in his backyard. The name was a suggestion given by John Pemberton’s bookkeeper, Frank Robinson.
BIRTH OF COCA COLA
Being a bookkeeper, Frank Robinson also had excellent Penmanship. It was he who first scripted “coca cola’ into the flowing letters which has become the famous logo of today. The soft drink was first sold to the public at the soda fountain in Jacob’s Pharmacy in Atlanta on May 8, 1886. About nine servings of the soft drink were sold each day. Sales for that year added up to a total of about $50. The funny thing was that it cost John Pemberton over $70 in expenses, so the first year of sales were a loss.
Until 1905, the soft drinks, marketed as a tonic contained extracts of cocaine as well as the caffeine rich kola nut.
In 1887, another Atlanta Pharmcist and business man, Asa Candler bought the formula for $2,300. By the late 1890s, Cocacola was one of America’s most popular fountain drinks, largely due to Candler’s aggressive marketing of the product. With Asa candler, now at the helm, the coca cola company increased syrup sales by over 4000% between 1890 and 1900.
ADVERTISING: was an important factor in John Pemberton and Asa Candler’s success and by the turn of the century, the drinks was sold across the united states and Canada. Around the same time, the company began selling syrup to independent bottling companies licensed to sell the drink. Even today, the US soft drink industry is organized on this principle.
Until the 1960’s both small town and big city dwellers enjoyed carbonated beverages at the local SODA FOUNTAIN or ice cream saloon. Often housed in the drug store, the soda fountain counter served as a meeting place for people of all ages. Often combined with lunch counters, the soda fountain declined in popularity as commercial ice cream, bottled soft drinks and fast food restaurants became popular.
On April 23, 1985, the Trade Secret “New Coke” formula was released. Today, products of the coca cola company are consumed at the rate of more than one billion drinks per day.