Odimba Rita

Digitally Signed by: Content manager’s

DN : CN = Weabmaster’s name

O= University of Nigeria, Nsukka

OU = Innovation Centre

The Role of Total Quality Management (TQM) in the

Performance of Poultry Farms in Enugu State, Nigeria

Faculty of Business Administration

Department of Management

Nwonye Chibueze

PG/MBA/11/60374

i

: Content manager’s Name

Weabmaster’s name

a, Nsukka

The Role of Total Quality Management (TQM) in the

n Enugu State, Nigeria

Business Administration

Management

PG/MBA/11/60374

ii

TITLE

The Role of Total Quality Management (TQM) in the

Performance of Poultry Farms in Enugu State, Nigeria

By

Nwonye Chibueze

PG/MBA/11/60374

Being a Project Presented in

Partial Fulfillment of the Requirements for the

Award of Master of Business Administration (MBA)

In the Department of Management

Faculty of Business Administration

University of Nigeria

Enugu Campus

Supervisor: DR AGBAEZE, E.K

September, 2013

1

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Most Industries/Organizations are facing the kind of challenges

that was not envisaged a few years ago. The competitive environment

has become Global; organizations now have to compete with goods

and services from all over the world and satisfy a more educated and

sophisticated customer base (Nosakhare, 2000:10). What is

satisfactory to the customers today may not be regarded as such

tomorrow as their expectations are continuously changing. Some of

this could be attributed to the consistent breakthrough in science and

technology over the last couple of decades which has led to more

products innovations and consequently high rate of product turn-over.

Information dissemination and management have also been affected

by the overwhelming technological brake through, as things earlier

thought impossible now look ordinary. Communication and

information technology have really transformed the way businesses

are done. These continual wave of technological and environmental

change have turned several organizations into bystanders on the road

to the future, and have made their structures, processes and skills

become progressively less attuned to the ever-changing realities of the

demands and expectations of present day customers. Competition

2

therefore has become one of the most important factors in running a

business in the world economy today (Akinola, 2009:182).

For almost every product or service designed, there are more

than one organization trying to make a sale of similar products and

services. This fierce competitive environment has made

manufacturers to step up their game by trying to reduce their cost of

production and consequently bring down the price of their products.

Price is, of course, one of the major issues in whether a sale is made

or lost. If the cost of production of goods or services results in high

prices, a firm may not be competitive. However, nowadays most

customers are considering other factors before buying a product, one

of these is quality. In fact, a reputation for producing quality products

is becoming a major marketing issue.

Quality has become a concern for most industries;

manufacturing, banking, health care, the service industry.

Nevertheless, quality can be a confusing concept, partly because

people view quality in relation to differing criteria based on their

individual roles in the production- marketing chain. Quality may be

defined as the characteristics of a product or service that bears on its

ability to satisfy the stated and implied needs. Quality obviously has

many different aspects, for instance a restaurant’s customers, base

their perspective of its quality on the taste of the food, the

3

attractiveness of the décor friendliness and promptness of the waiters,

etc (Longenecker, et al, 2003). Although the assessment of quality

stated above is a very good one, it might not apply in other industries.

Observations have shown that the meaning of quality has evolved as

the quality profession has grown and matured. Neither consultants nor

business professionals agree on a universal definition.

A couple of years ago a study was conducted that asked

managers of 86 firms in the eastern United States to define quality;

several dozen of different responses such as: perfection, consistency,

eliminating waste, speed of delivery, compliance with policies and

procedures, providing a good usable product, doing it right the first

time, delighting or pleasing customers, and total customer service and

satisfaction were obtained (Tamini and Sebastianelli, 1996: 34-39).

Thus, it is important to understand the various perspectives from

which quality is viewed in order to fully appreciate the role it plays in

the many parts of a business organization (Seawright and Young,

1996:107). Consequently, quality could also be defined based on

some of the following perspectives:

• Judgemental Criteria – This is a common notion of quality, often

used by consumers, is that it is synonymous with superiority or

excellence.

4

• Product- Based Criteria- This defines quality as a function of a

specific, measurable variable and that difference in quality reflect

differences in quantity of some product attribute, such as in the

number of stitches per inch on a shirt.

• User- Based Criteria – Here definition of quality is based on the

presumption that it is determined by what a customer wants.

Individuals have different wants and needs and, hence, different

quality standards.

• Value- Based criteria – This criteria sees quality to be based on

value; that is, the relationship of usefulness or satisfaction to price.

• Manufacturing- Based Criteria defined quality as the desirable

outcome of engineering and manufacturing practice, or

conformance to specifications.

The diversity of the definitions of quality can be explained by

examining the eight principal quality dimensions defined by Garvin

(1984) which are: performance, features, reliability, conformance,

durability, serviceability, aesthetics, and perceived quality.

However, the official definitions of quality terminology were

standardized in 1978 by the American National Standards Institute

[ANSI) and the American Society for Quality (ASQ) (ANSI/ASQC

A3 (1978). They defined quality (Customer- Driven Quality) as the

totality of features and characteristics of a product or service that

5

bears on its ability to satisfy given needs. This definition draws

heavily on the product- and user-based approaches and is driven by

the need to contribute value to customers and thus to influence

satisfaction and preference (Evans and Lindsay, 1999: 10-15).

Although cost and other considerations cannot be ignored, quality

remains a primary focus of a firm’s operations (Longenecker, et al.,

2003).

Total quality management (TQM) therefore is the commonly

used term for stressing quality within an organization. TQM uses a

systems perspective because it is not a program for one department,

but a responsibility of everyone in the organization. To keep quality

at the desirable levels, all firms employ the concept of quality control.

Quality control (QC) is important not just in the production or

transformation process, but earlier at the design stage and later at the

service stage as well. One of the major roles of the operations

manager is to make sure his or her firm can deliver a quality product

to the right place at the right time at the right price (Heizer and

Render, 199 1:734). Total quality management (TQM) is therefore a

process that involves everyone in the organization focusing on the

customer to continually improve product value. It is the philosophy of

meeting and exceeding customer expectations through a systematic

process that involves both associates and managers at all levels

6

assuming responsibility for continuous improvement in the firm’s

day-to-day merchandising and operating activities. It is a set of tools

and techniques designed to improve a firm’s effectiveness and

efficiency (Lewison, 1997: 241).

Over the previous three decades, the concept of quality has

grown rapidly starting with the descriptions of the quality

management gurus Crosby, Deming, Juran, Feigenbaum, Taguchi,

Ishikawa, Groocock, and others. However, the discipline of TQM has

been witnessing significant contributions in terms of theory

development from many researchers. In spite of the huge amount of

research conducted, TQM is still in the early stages of theory

development (Dale et al., 2001], consequently, there has been a global

attention being given to establish models and quality awards

throughout the world.

As we mentioned earlier, customers are increasingly

demanding high quality products at low prices (Nosakhare, 2000:11).

Considering these uncertain, competitive, and ever-changing and

challenging business environments, companies are required, as never

before, to adopt productive management practices and set competitive

priorities (cost, quality, time and flexibility) to support the demands

of the markets (Krajewski and Ritzman, 1993:47). The poultry

industry like other industries is not left behind in the battle to meet

7

the demands of consumers. In other words, they are required to face a

global business challenges, uncertain environment, critical customers

with high quality service demands (Al-Man sour, 2007). Therefore,

farms, like other organization have been urged to adopt innovative

strategies to ensure its survival and business growth. Consequently,

many farms have adopted the concept of continuous improvement as

a fundamental business strategy, realizing that organizations can

afford to be competitive if it does not continuously improve on its

products/services, processes and people (Nosakhare, 2000:11).

Many researchers and practitioners advocate the positive effect

of TQM practices on organizational efficiency and effectiveness. In

this study we shall attempt to explore the impact of the adoption of

TQM practices on the effectiveness and efficiency of poultry

production, Since the implementation of TQM as mentioned earlier is

a cost added value new managerial concept, no doubt it creates a

suspicion pole for any firm aims to implement this management

paradigm. Therefore a clear distinction between the value added from

TQM implementation and corresponding cost value must be clearly

clarified. The added value of implementation of TQM in the study is

investigated through the impact of adoption of TQM practices on

effectiveness and efficiency.

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1.2 STATEMENT OF PROBLEM

The present day reality has rendered conventional methods of

products/service delivery obsolete. Competition has become so high

in all fronts that for survival organizations will have to be operating at

a high performance. In the words of John Young, President of

Hewlett-Packard: “In order to compete in a global economy, our

products, systems and services must be of a higher quality than our

competition. Increasing Total Quality is our number one priority here

at Hewlett-Packard” (Nosakhare, 2001:12). Nowadays, increased

expectation and demands on the part of customers in every area of

organizational life have taken the centre stage. The rule of the game

today in all industry segments is continuous improvement of

processes, systems and skills. With these in mind, the question

therefore is what is the level of awareness among organizations in

Nigeria on the reinvention requirements to meet up with the needs of

the current business environment?

As mentioned earlier, quality has become a critical factor in

production, however, quality improvement and service delivery is still

seen by many organizations today, not as a way of survival but as

optional extras, this is a common trend in Nigeria. It is therefore

crucial to investigate how the application of Total Quality

9

Management in the Poultry Industry facilitates meeting the demands

of the customers.

The Agricultural sector has been identified as a critical sector

for National development, to this end the Government has been trying

to implement policies to improve Agric production in the country.

Consequently, many Government policies have been enacted that are

aimed toward boosting the sector. The poultry industry as we know is

a major sub- sector in the Agric sector. However our aims might not

be achieve if the right operational practices are not implemented.

Therefore bearing in mind the importance of the poultry industry it is

therefore pertinent to investigate if and how TQM can improve

organizational effectiveness and efficiency, thus organizational

performance.

With the current set-up of democratic cultures and ideals, our

economy will definitely open up to international investment Already,

Nigeria is a signatory to the Trade Agreement under the World Trade

Organization. This agreement has some clauses touching on quality.

For instance, organizations without ISO 9000 series certification will

very soon not be able to export their products to some countries,

especially to Europe and Asia. There is going to be increased foreign

participation in the economy. With this trend, farmers should be

prepared to produce products that will compete at the international

10

stage. There is already a growing incidence of dumping of cheaper

products especially from the Asian countries in the country. The

question therefore is; can successful implementation of Total Quality

Management (TQM) assist farms in Nigeria to position themselves

for the challenges ahead?

1.3 OBJECTIVES OF THE STUDY

The specific objectives of the study include the following:

(1) To examine the effect of Total Quality Management (TQM) on

cost reduction at Phinomar farms Ltd.

(2) To examine the effect of TQM on goal attainment at Phinomar

farms Ltd.

(3) To find out the relationship between TQM and employees’

productivity at Phinomar farms Ltd.

1.4 RESEARCH QUESTIONS

Given the objectives, the study sought to answer the following

questions.

(1) o what extent does Total Quality Management (TQM) affect

cost reduction at Phinomar farms Ltd?

(2) To what extent does TQM affect goal attainment at Phinomar

farms Ltd?

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(3) o what extent does TQM relate to employees’ productivity at

Phinomar farm Ltd?

1.5 ESEARCH HYPOTHESES

In view of the research questions, the following hypotheses were

formulated to be tested.

(1) There is a significant effect of Total Quality Management

(TQM) on cost reduction at Phinomar farms Ltd.

(2) There is a significant positive effect of TQM on goal

attainment at Phinomar farms Ltd.

(3) There is a positive relationship between TQM and employees’

productivity at Phinomar farms Ltd

1.6 SIGNIFICANCE OF STUDY

The study will be beneficial in the following ways.

1. Management: the management will learn better ways of

making TQM work in the farm.

2. Other stakeholders: other stakeholders will understand how

TQM implementation works.

3. Researchers: the findings will serve as a bases and framework

for future researchers to carry out further studies

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1.7 SCOPE OF THE STUDY

For the purpose of this research work on Total Quality

Management, our investigations as earlier mentioned was on the

poultry Industry while using Phinomar Farms Ltd as focal

organization. The study was carried out 2012- 2013.

1.8 LIMITATIONS OF THE STUDY

Significant among the factors that hindered smooth conduct of

this study include:

1. Time: The time available for the completion of this work was

inadequate.

However, the researcher overcame these hurdles and

completed the work.

2. Fund: Inadequate funding particularly hinders the expansion of

this work to accommodate more number of poultry farms.

3. Attitude of the Respondents: Most of the managers find it

difficult giving out information that they consider secret and

this affect researchers. However, the researcher employed

persuasion strategy to overcome this challenge.

4. The structured nature of the questionnaire items: The

structured nature of the questionnaire may allow people to give

13

answers that they may not agree with. However, this was

minimized by the use of open-ended oral interview.

5 The study was also affected by inability of the researcher to

draw conclusion outside the environment-Enugu.

1.9 HISTORIC BACKGROUND OF PHINOMAR FARMS

Fully incorporated in May, 1979, Phinomar Nigeria Limited is

wholly owned by the Ayalogu family, with His Royal Highness, Igwe

I.O.U Ayaolgu as the Chairman and Chief Executive.

It has its Corporate Headquarter located east of the River Niger

at Ngwo, about eight (8) kilometers Northeast of Enugu, the capital

city of Enugu State.

The Igwe (Esaa of Ngwo Assa) started what is known today as

Phinomar Nigeria Limited with a small mud oven or bakery, and

twelve (12) birds as a hobby in 1964. Through the advice of a British

salesman and friend, he was able to increase his stake in both

businesses, but became more pronounced in the poultry area.

The Royal father took so much interest in his poultry business

that he was keeping well over two thousand (2000) laying birds

before the Nigeria civil war broke out in 1967. After the war,

everything was vandalized except the bakery, from where he

managed until the reestablishment of the poultry farm.

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Before 1977, the Old Farm near Girls’ Secondary School, Ngwo had

reached its initial full capacity of fifteen thousand (15,000) layers

with only little space left at the site. He then took the bold decision of

expanding into his then cashew plantation now known as the New

Farm.

Ever since the opening of the two hundred and fifty thousand

(250,000) birds capacity farm in 1978, the pace of development has

never been the same again. This actually informed the incorporation

of the business in May, 1979. It has the Royal Father, his wife and

four of his sons as the Directors of the Company. Today, this capacity

target had since been met and further expansion programmes already

being targeted.

Fortunately, the sons who stakes in the business studied courses

that are most relevant to the business. This obvious advantage has

helped immensely in steadily setting the Company on the fast lane of

growth. That also explains the gradual replacement of the manual

systems in the farm with the electronically automated cage systems.

This, and the up-to-date management techniques employed by its

seasoned operatives has greatly and positively affected the growth

rate of the system.

Today, through determination and hard work, what is known as

Phinomar Nigeria Limited has grown into a group of independent

15

companies, duly registered by the Corporate Affairs Commission.

They are:

1 Phinomar Nigeria Limited

Prior to the formal incorporation of other sister companies in

March, 2007, this used to be the umbrella organization. Presently,

it has the following divisions:

i. Poultry Farm Division

This division houses and takes care of about 180,000 laying

birds, and about 90,000 pullets under full utilization. It services

the table egg and chicken needs of a good percentage of

Nigerians.

ii. Milling & Foods Division

This is the soya seeds processing and extraction unit. Products

like crude soya oil, full fat soya, soya meal, etc are the pride of

this division. It services the internal requirements of the Poultry

Division and that of users scattered in several parts of Nigeria.

iii. Anuka Multi - Purpose Farm Division

As the name implies, this is a mechanized multi-purpose crop

farm. It produces yam, cassava, palm products, maize, garri

processing, etc, in commercial quantities.

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iv. Ugwuomu Farms Division

This is a near replica of Anuka Multi-purpose Farm, except that

this division is more into fisheries, piggery, vegetables and

plantain productions. They satisfy the food needs of the

surrounding local markets.

v. Quality Control Laboratory Unit

Housed within the main factory premises, this laboratory is

well equipped with materials and human expertise to handle

several types of laboratory tests that can meet the test of time

anywhere and any day. In addition to satisfying the laboratory

requirements of the Company, it also offers commercial

laboratory services to desiring clients.

vi. Fishery Division

Having at different times secured the services of consultants in

fishery management and having had some people from the

personnel pool trained in this field, the Company went ahead

and established an ultra modern fish pond with a capacity of

not less than 30 tons of table fish biannually.

Though presently at its experimental stage, there is no doubt

that within a short space of time, this division shall be placing

fresh fish on the tables of many Nigerians.

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vii. Service Department

This constitutes the coordinating department that oversees

the day-to-day routine activities of the Company. It

includes; General Administration, Accounts, Audit,

Transport, Engineering, Security Departments, etc.

2 Wheels and Spindles Limited

Established in 1990 under the canopy of the parent Company-

Phinomar, this outfit was primarily meant to be providing

engineering support services to the parent organization, and

also to be offering specialized engineering services to the

public on commercial basis.

Situated along the Old Nsukka road at 9th Mile Corner, Ngwo,

the above arrangement continued till March, 2007 when the

plant was incorporated as a limited liability company and

possessing an independent status.

As much as expertise and research could presently contain, the

plant offers the following series to its clients:

• Machine Component Spare Parts

• Moulds of Different Shapes

• Vulcanized Rubber Products

• Fabrication and Welding Works

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• Pattern Making

• Casting of Forus and Non-Forus Products, etc

3 Upland Poultry Limited (UPL)

This is an ultra modern 60,000 capacity mechanized outfit for

the brooding of broiler products. Became operational from

May, 2006 under the umbrella of Goodwill Poultry Farm

(GPF), the project was equally incorporated as a limited

Liability Company in March, 2007.

Supported by three giant functional cold rooms, they process

whole broilers and their parts for its teaming distributors who

in turn market them at different parts of the Country.

4 Phinomar Foods Limited (PFL)

An offshoot from the Milling & Foods Division of Phinomar

Nigeria Limited, this outfit went into experimental stage in

1991 following years of research by the laboratory unit

And so, at the 1992 Enugu International Trade Fair, its first

product, SOY POPS (a breakfast cereal for adults and children)

was launched into the market. This was subsequently followed

by the introduction of other children’s delight-SOY CHIPS.

Since then, researches have brought about continuous

improvement of these product lines which has now became

household names in this part of the country.

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Having been categorized and brought under the watchful eyes

of NAFDAC, the products were given a pass mark, and therefore got

registered on 4th February, 2003.

The wind of independence also blew across them, and in

March, 2007, they got registered as a Limited Liability Company with

full independent status accordingly extended unto them.

Meanwhile, the Milling & Foods Division of the Company has

brought succor to the local poultry farmers who now use the protein

rich soya bean products (soya meal and full fat soya) to formulate

animal feeds. So also is the extremely rich crude soya oil being

bought from different commercial cities of the country by vegetable

oil refineries with a view to refining them for human consumption, or

for other purposes.

Interestingly, certain machineries are being set in motion for

the purpose of creating an enabling environment for the exportation

of some of the soya beans products to interested foreign buyers.

Also in the pipeline is a plan by the Company to complete the

already started importation of refining plant for soya oil. When that is

done, the country’s local vegetable oil needs would be considerably

satisfied, and the excess exported to other countries of the world.

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Personnel

In addition to several hundreds of utility workers in its employ,

the Group has permanent staff strength of about 456, excluding the

six (6) Directors. This however includes the twenty one (21)

Management staff and professionals who are experts in their chosen

fields of study, and about fifty eight [58) Technical staff that are

responsible for the different sophisticated equipment

On the whole, discipline, honesty and general commitment to work,

and above all, fear of God almighty has remained the secret of our

success.

Membership of Professional Bodies

1. Member, Nigeria Export Promotion Council (NEPC)

2. Member, Manufacturers Association of Nigeria (MAN)

3. Member, Enugu State Chamber of Commerce, Industries,

Mines And Agriculture (ECCIMA)

4. Member and National Secretary, Poultry Association of Nigeria

(PAN)

Merit Awards

1. First Bank of Nigeria’s ‘BEST FARMER OF THE YEAR

AWARD’ in Eastern Region of Nigeria — 1989

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2. Nigeria Union of Journalists Society Service Award for

Phinomar’s Contributions to ‘FOODS PRODUCTION AND

AGRICULTURAL DEVELOPMENT’ - September, 1991.

3. First Bank of Nigeria’s Centenary Celebration for

‘RECOGNITION OF YEARS PATRONAGE AND

ROYALTY’- 1995.

4. Nigeria Television Authority (NTA) Enugu Merit Award for

‘Excellence in Agricultural development’ — December, 1997.

5. Animal Science Association of Nigeria (ASAN) Industrial

Merit Award for ‘OUTSTANDING CONTRIBUTION TO

THE DEVELOPMENT OF THE NIGERIAN LIVESTOCK

INDUSTRY - September 2000, etc.

22

CHAPTER TWO

REVIEW OF THE RELATED LITERATURE

2.1 HISTORICAL BACKGROUND

The evolution of Total Quality Management concept can be

traced back to the early 1902 when companies in the western world

were engulfed in fierce competition with their Japanese counterparts

who were landing arid selling quality products at prices lower than

what it costs the American and European to produce. The secret that

was discovered laid in quality, since this discovery, every serious

organization and nation has been joining the quality term.

Christopher (1994:23) asserts that TQM is among the new

techniques which modern organizations employ with very good result

to secure and keep their customers satisfied. It is therefore a way of

managing to improve the effectiveness, efficiency, flexibility and

competitiveness of a business as a whole.

Quality Management embraces a lot of procedural and

systematic activities starting from the state of raw materials to point

of selling the finished products of an organization. According to

Martins and Starr, (1998), Quality management can be described as

activities geared towards maintenance of agreed upon set of standards

and specifications. The dimensions of the quality expressed therefore

can be measurable by associating the products with a specific

23

functional class of users, based essentially on the agreed standards.

However in getting standards, a lot of elements must have been put

into consideration.

Total Quality Management (TQM) has evolved from the

quality assurance methods that were first developed around the time

of First World War. The war effort led to large scale manufacturing

efforts that often produced poor quality. To help correct this, quality

inspectors were introduced on the production line, to ensure that the

level of failures due to quality was minimized. After the First World

War, quality inspection became more common place in

manufacturing environments and this led to the introduction of

Statistical Quality Control (SQC), a theory developed by Dr. Edwards

Deming, this quality method provided a statistical method of quality

based on sampling. Where it was not possible to inspect every item, it

was not possible to inspect every item; a sample was tested for

quality. The theory of SQC was based on the notion that a variation in

the production process leads to variation in the end product. If the

variation in the process could be removed, this would lead to a higher

level of quality in the end product.

Furthermore, after World War II, the industrial manufacturers

in Japan produced poor quality items. In a response to this, the

Japanese Union of Scientists and Engineers invited Dr Deming to

24

train engineers in quality processes.’ By the 1950s quality control was

integral part of Japanese manufacturing and was adopted by all levels

of work within an organization.

By the 1970s, the notion of Total Quality was being discussed.

This was seen as companywide quality control that involves all

employees from top management to the workers in quality control. In

the next decade more non Japanese companies were introducing

management procedures that based on the results seen in Japan. The

new wave of quality control became known as Total Quality

Management, which was used to describe the many quality focused

strategies and techniques that became the center of focus for the

quality movement.

2.2 DEFINITION OF TOTAL QUALITY MANAGEMENT

In studying the impact of TQM on productivity and corporate

performance in Nigerian oil industry, several important principles of

this management philosophy that influence its successful

implementation are brought to the fore. These include management

commitment, customer focus and satisfaction employee

empowerment, continuous improvement and organizational culture

and attitudes. Others are teamwork, continuous training, total

25

employee involvement and democratic management style. It is these

concepts of TQM that will constitute major areas of our review of

literature but first, what is TQM?

Total quality management (TQM) is the management

philosophy and company practices that aim to harness the human and

materials resources of an organization in the most effective way to

achieve the objectives of the organization. These objectives include

customer satisfaction, business objectives services to the community

(Dale and Oakland, 2000). The ability to meet customer requirement

is vital within the organization. TQM focus is an improving the

quality of products and services. Moreover, it has succeeded vast

consideration from both oil industry and academic. TQM can be

deemed as an outstanding and long lasting state of the art managerial

tools and concepts enhanced in previous decade. It has had a

prominent impact on several organizations (Pike, and Barnes 2010;

Psychogios, 2007).

According to Hunt (1992) TQM is a way of managing to

improve the effectiveness, efficiency, flexibility and competitiveness

of a business as a whole. Quality management, quality assurance and

quality control are all embodied in TQM, together with all other

management activities. TQM involves whole companies getting

organized, in every department, in every activity, with every single

26

person, at every Level. This involves putting in place processes and

systems which would ensure that every aspect of its activity is aligned

to satisfying customer needs and the organization’s objectives without

waste of effort by releasing the full potential of every person in the

organization (Arora, 2004: Cleary, 2001) for an organization to be

truly effective, every single parts of it must work properly together,

because every person and every activity affects and in turn is affected

by others. It is in this way that Japanese companies have become so

competitive and successful (Oakland, 2000).

Total quality management is a management philosophy that

advocates organization’s long-term commitment to the continuous

improvement of quality, throughout the organization and with the

active participation of all members at all levels, to meet and exceed

customer expectations. This to-management-driven philosophy is

considered a way of organizational life. In a sense, TQM is simply

affective management.

Although the specific programs may vary, there usually is a

careful analysis of customer needs, an assessment of the degree to

which these needs are currently met, and a plan to fill the possible gab

between the current and the desire situation. TQM demands a free

flow of information-vertically, horizontally and diagonally.

27

According to Ewurum (2001) the goals of TQM are to be 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.

Okolie (1992:23) define TQM as the management of all aspect

of quality service provided to the customer. He opined that such

management covers quality of goods delivery, price or service and

differs from the traditional quality concept, which center on quality

control and quality assurance.

Levine and Helper (1993:11), defines TQM as a combination

of a set of problem solving tools with a management philosophy of

training, motivating and empowering all levels of the organization to

focus on customer need.

Wruck and Jensen (1994:11) have asserted that TQM provided

a historical unique approach to improving organizational

effectiveness, one that has a solid conceptual foundation and at the

same time offers a strategy of improving performance that takes

account of how people and organization actually operate. TQM

requires that every aspect of the organization material and non-

material is improved to make it relevant to customers need.

28

Juran (1988:12) observes that the philosophy behind the

adoption of the TQM concept by an organization is primarily to

enable it stay in business so that it can promote the stability of the

community, generate products that are useful to customers and

provide a setting for the satisfaction and growth of organization

members.

Rose (1994:12) identified TQM as integrated management

practices that emphasizes among other things continued

improvement, meeting customer’s requirements, reducing network,

long range thinking, increased employee involvement and teamwork,

competitive benchmarking team based problem solving constant

measurement of result and closer relationship with suppliers.

Debo (1996: 17) summed up the TQM concept as a strategy for

improving businesses through the commitment of all employees, from

the top management down to the line, infilling satisfying agreed

customer requirement at the lowest cost through the continuous

improvement of products and services, business process and the

people involved. TQM concept cannot be effective except there is

commitment from employees and management.

According to Ezeh J.A. and Onodugo (2002:184) TQM aims at

attaining a zero-defect products/services by “doing the right thing first

time and every time. Going further, TQM has core elements as:

29

� Customer satisfaction

� Cost reduction via zero-defect product/service

� Continuous improvement of product and organizational

processes.

� Holistic in its approach

Wilkinsom and Wilmot (1995:16) argued that getting

employees to become committed to attaining quality on a highlighted

motivated fashion requires the development of an understanding on

the part of management, that people do not need to be coerced to

perform well and that most people desire achievements,

accomplishments and influence. And the right environment can

challenge them to use their abilities to achieve, accomplish and

influence.

Ishikawa (1985:17) contended that for an organization to

succeed in TQM it must remove all organizational system that create

fear such as punishment for poor performance, appraisal system that

involved the competitive evaluation of employees and merit pay for

this reason, it is believed that the responsibility for developing people

to become committed to total quality rests with the manager. Thus

included understanding and agreeing on the requirement of the job,

knowing how to do the job and why it is being done, having

30

necessary materials tools and information being able to measures

improvement and knowing what to do when things go wrong.

Deming (1986:28) argued that employee’s worth effectiveness

is reviewed as a direct function of the quality of the systems that

managers create. He opined that it is not sufficient to provide clear

direction about hoped for outcomes, in addition management should

train and coach employees to assess, analyzed and improves work

processes.

Total quality management as a philosophy that seeks to

integrate all organizational functions (marketing finance design,

engineering and production, customer service etc) to focus on

meeting customer needs and organizational objectives views an

organization as a collection of processes. It maintains that

organizations must strive to continuously improve these processes by

incorporating the knowledge and experience of workers. The simple

objective TQM is “do the right things, right the first time, every time.

TQM is infinity variable and adaptable. TQM is now becoming

recognized as a generic management tool just as applicable in service

and public sector organizations. TQM is the foundation for activities,

which include:

� Commitment by senior management and all employees

� Meeting customer requirements

31

� Reducing development cycle times

� Just in time/demand flow manufacturing

� Improvement teams

� Reducing product and service cost

� System to facilitate improvement

� Line management ownership

� Employee involvement and empowerment

� Recognition and celebration

� Challenging quantified goals and bench marketing

� Focus on processes/improvement plan

� Specific incorruption in strategies planning

Thus, TQM is a method by which management and employees

can become involved in the continuous improvement of the

production of goods and services. It is a combination of quality and

management. It is a combination of quality and management tools

aimed at increasing business and reducing losses due to wasteful

practice.

As previously mentioned, global economic competition has

increased in the past few decades. According to Brown (2009), “At

the close of the century, the creation of the global market, the

international orientation of management which sweeps national

boundaries, the introduction of new technologies, and shifts toward

32

customer focused strategies, has made the competition stronger than

ever.” There has been greater trade co-operation amongst nations,

which led to a decline in international trade banners. This has

afforded customers all over the world, wider alternatives among

several offers and consequently affecting how organizations make

business decisions. The increasing demand and sophistication of

customers have virtually re-written the rules of competition and

forced organizations to focus on quality. Today, what is competitive

advantage is the ability of products and services to meet or exceed the

needs of customers. This implies that to survive, organizations must

device new management system based on the tenets of Total Quality,

and by offering quality products and services. This will not only

lower costs but also outperform the products and services of

competitors spread across the world. This is the force behind Total

Quality Managements.

When introducing and developing the concepts of TQM the

executives of an organization should ensure that the system will

facilitate and promote continuous quality improvement. The constant

goal of management of all functions and at all level is of an

organization is to strive for quality and its improvement in a balanced

way. Quality improvement is achieved by improving the processes of

an organization. This should be a continuous activity; aiming forever

33

higher levels of process effectiveness and efficiency; level of process

efficiency; efforts should be directed towards constantly seeking

opportunities for improvement; rather than only waiting for a problem

to reveal an opportunity (Crosby, 2000). There are some basic

principles underlying TQM, which we now turn to.

2.2.1 Total Employee Involvement

The first of these principles is that TQM, in contrast to previous

quality management initiatives, involves everyone in an organization.

It is widely accepted that the increase of employees’ participation in

the overall quality strategy brings an increased flow of information

and knowledge, and contributes in the ‘distribution of intelligence” to

the bottom of the organization for resolving problems (Powell, 2000).

As Morgan and Murgatroyd (2005) noted that the total elements of

TQM imply that every organizational member is involved in quality

improvement processes. In addition, Oakland (2000) points out that

TQM is essential a way of organizing and involving the whole

organization; every department, every activity, every single person at

every level.

2.2.2 Continuous Improvement

Global competition for increasingly demanding customers has

necessitated changed acceptable standards. What appears to be best

34

products/services today may be disregarded tomorrow. The drive

towards total excellence has made a very clear direction; though no

definite destination for companies to attain and sustain business

excellence through continuous improvement of product/service

(Ward, 1998:7). Quality improvement is not a task that has an end, as

it is not state. The emphasis is on seeking improvement opportunities,

not just holding the status quo. The focus is on planning prevention

and anticipation (Gilmore, and Carson, 2000). Quality improvement

philosophy of continuous improvement, and provides the necessary

supporting organizational practices. Quality experts like Deming,

Juran, Scholtes and Crosby state that organizations must approach

quality improvement from a long-term perspective (Atkinson, 2000).

2.2.3 Teamwork

Teamwork is an important outcome and a condition for

continuous improvement. Teams are generally viewed as a more

powerful and effective work entities than individuals. Teams

according to Lawler should be catholic, including employees from all

hierarchical, levels, layers and from all the departments of the

enterprise. Hill (2003) states that teams are needed for all

organizations in order to make them work more flexibly and to

develop mutual trust among members. In traditional management

35

approaches each department needs to take care of its own problems.

In a TQM context the whole organization need to care about quality

improvements need cross-functional work groups that will deal with

inter-departmental management problems.

2.2.4 Customer Satisfaction

In a total quality context customer satisfaction is the driving

force for an organization to improve its performance. Juran, (2003)

states that there are two different kinds of customers: the external

customers like clients, government regulatory bodies, the public that

define the quality of the service delivered and internal such as

employees, different departments, that defines the quality of the

processes associated with the delivering of services. Both external

and internal customers have needs. According to Lawler (2001) to

realize customer satisfaction, everyone within the organization should

consider continuous improvement as something normal and urge

organizations to make an inventory of customers’ data, customers’

complaints and benchmarking in order to improve the customer

orientation. However, Lawler (2001) states that, although customer

focus is revered, methods for developing a deeper understanding of

the customers’ situation are not sufficiently integrated into TQM.

36

2.3 Development of TQM

The development of TQM was spurred by the intense

competition ranging between companies of Japan, North America and

Europe in the early 1980s. Japan with no natural resources, was able

to hit at all time high of 11 percent of the world’s Gross National

Product (GNP). This they achieved through the exports of high

quality low price, products to other countries, who could not help but

follow one.

In 1946, and 1949, the union of Japanese Scientists and

Engineers (JUSE) and one quality control research group,

respectively, were established. These bodies were charged with the

responsibility for ensuring improvement in Japanese productivity and

enhancing and training progressed during the 1950s. These were

produced JUSE and Japanese Management Association (JMA) and

also through in-house training developed in the factory (Wiss and

Mark, 1998:4)

This period was however dominated by quality initiatives that

were based on the implementation of Statistical Process Control

(SPC) on the factory floor. Senior management personnel were hardly

involved in the process, while much emphasis was on quality control

methods, which many workers dislike because of their complexity.

37

Quality Management at this point was limited in scope due to the

creation of many specifications and standards.

Following the visit of management experts in 1954, lectures

and seminars were held on how to improve on the existing quality

which was the concern of the whole management structure and that

quality should be an integral part of the management control systems.

The quality control circles were also developed by JUSE during this

period. This idea involves the concept of companywide control

whereby there is a cross functional integration of the quality control

process.

With the success achieved in Japan through the use of what the

company called Wide Quality Control (WQC), various countries

especially those from the West — EU and USA had no option but to

embrace the concept of TQM identical to the Japanese (WQC) if they

want to survive the fierce global competition. Many organizations in

the USA and UK have adopted TQM to their advantage (Rosenberg,

1996:5).

2.4 CONCEPTUAL FRAMEWORK OF TQM

TQM is a management philosophy that seeks to integrate all

organizational functions such as marketing, finance, design,

engineering, production and customer service, to focus on meeting

38

customer needs and organizational objectives. TQM views an

organization as a collection of processes. It maintains that

organizations must stand to continuously improve these processes by

incorporating the knowledge and experiences of workers. The

objective of TQM is “Do the right things, right the first time, every

time.” TQM is infinitely variable and adaptable. TQM is now

becoming recognized as a generic management tool management tool,

just as applicable in serviced and manufacturing organizations. There

are a number of evolutionary stands, with different sectors creating

their own versions from the common ancestors. TQM is the

foundation for activities, which include: commitment by senior

management and all employees, meeting customer requirements,

reducing development cycle times, just in Time/Demand flow,

manufacturing improvement teams, reducing product and service

costs, systems to facilitate improvement line, management ownership

employee involvement and empowerment, recognition and

celebration, challenging quantified goals and benchmarking (Goetch,

2005:2).

TQM is mainly concerned with continuous improvement in all

work from high level strategic planning and decision making to

detailed execution of work elements on the shop floor. It stems from

the belief that mistakes can be avoided and defects can be prevented.

39

It leads to continuously improving results, in all aspects of work, as a

result of continuously improving capabilities; people, process and

technology and machine cap abilities continuous improvement must

deal not only with improving results, but more importantly with

improving capabilities to produce better results in the future(Hiam,

1992:3). The five major areas of focus for capability improvement are

demand generation, supply generation, technology, operations and

people capability. A central principle of TQM is that mistakes may be

made by people, but most of them are identified and adequate

amendments made to improve the process (Ewurum, 2003). This

means that time root cause of such mistakes can be identified and

eliminated, and repetition can be prevented by changing the process.

There are three major mechanism of prevention which includes:

� Preventing mistakes from occurring.

� Where mistakes can’t be absolutely prevented, detecting them

early to prevent them being passed down the value added

chain.

� Where mistakes recur, stopping production until the process

can be corrected, to prevent the production of more defects.

Organizations are usually involved in manufacturing of

products or provision of services that are offered for sale to potential

customers and clients. There are major issues to be considered for the

40

sale of these products or services which include price and quality.

According to Dale, and Oakland (2000) quality is often the major

issue because poor quality can be very expensive for both the

producing firm and the customer. It is therefore imperative for every

organization’s operation manager to ensure that his or her firm

delivers a quality product at the right place, at the right time and at the

right price. Quality is the totality of features and characteristics of a

products or services that bears on its ability to satisfy given needs

(Oakland, 2005). In other words, quality measures how well a product

or serviced meets customer needs. Organizations recognized that to

be competitive in today’s global economy; they must strive for high

levels of quality. As a result, they continued to emphasize methods

for monitoring and maintaining quality. Quality assurance refers to

the entire system of policies, and guidelines established by an

organization to achieve and maintain quality (Wilkinson, et. al, 2009).

In considering all these definition; it is very important that it

must include an added emphasis on meeting the customers need to

make meaningful contributions to the concept of total quality

management. Total Quality control consists of operational techniques

and activities aimed at both monitoring a process and eliminating

causes of unsatisfactory performance of relevant stages of quality

loop-spiral in order to result into economic effectiveness (Arora,

41

2007). The burden of quality proof rests not with inspection but with

the market of part: Machinist assembly foreman, vendor. This

message with those from other evolved into a crusade known as Total

quality management (Hill, 2010). Hill goes further to state the vital

definitional frame work for total quality management: Total quality

Management is strategically united to the organizational goals

customer understanding and satisfaction is vital within the

organization.

Employee participation and understanding in continuous

improvement to all level is required within the organization. The

organization is perceived as a series of processes that incorporate

customer-supplier relationship.

2.5 EVOLUTION OF TOTAL QUALITY MANAGEMENT

The development of the quality management process was

pioneered in America, but the first country to take advantage of the

development was Japan. It was reported that after World War II, an

American, W.E. Deming went to Japan to teach quality and the

Japanese Learned it. Deming is out spoken in his quality crusade that

management must accept responsibility for building good systems.

J.M. Juran was also a pioneer in teaching the Japanese how to

improve quality. Like Deming, Juran believed strongly in top

42

management supports and involvement in quality control. He believed

also in team work to raise quality standard. Juran varies from

Deming, by focusing on the customer in an effort to define quality as

fitness for use, not necessarily the written specifications. Crosby’s

traditional view has been with management and employee

commitment great strides can be made in improving quality. He also

believes that in the traditional tradeoff between the cost of improving

quality and the cost of poor quality, the cost of poor quality is

underestimated. The cost of poor quality should include all of the

things that are involved in not doing the job right the first time

(Deming, 1986, Juran, 2000 and Crosby, 1989). In recent years, Total

Quality Management (TQM) has become so popular, that western

countries are following the example of Japan. Organizations and

Government are not only taking lead position in making use of the

concept but all also committing their resources toward spreading the

doctrine. There has been a renewed emphasis on quality due to

increase appreciation of the cost of poor quality to the producer

customer and society. This emphasis on quality therefore has evolved

to such as points that we now have International standard being

developed, for instance, the Japanese Industrial Standard and the

Europe’s ISO 9000 standard (Delbridge, et al, 2004 & Clearly, 2001).

43

2.6 PIONEERS OF TOTAL QUALITY MANAGEMENT

The development of TQM was pioneered by several

management experts, through their writings, seminar, presentation

and workshops. Deming W.E considered to be an influential

American in the field of management, was credited with remarking

Japanese industry after World War II. He listed 14 points popularly

called Deming’s 14 points of management arguing that they are the

basis for the transformation of American industry and the adoption of

the 14 points are imperative for any management that intends to stay

in business and aims to protect investors and jobs. His main points of

emphasis were on quality, leadership, horizontal management,

continuous improvements, employee involvement and training (Stahl,

1999 and Deming, 1999:23).

Joseph Juran was pioneer of the movement. His own idea

quality improvement is by blurring of functions through a cross-

functional integration of organizational processes. His concern was

with processes that spanned at least two of the function of design

production, marketing or financial. He argued further that quality was

too important to be left with specialist quality control department. His

ideas that prevention rather than selection was the key to quality

44

delivery were widely adopted Japanese firms (Stahl, 1999:9 and

Wilkinson, 1998:2).

Kititazawa (2000) was concerned with the prevention of effects

before they occurred while working through the 1930s and 1960s.

Some of his work has to do with the managerial emphasis on systems

and process improvement. This idea was developed during the period

when the concept for zero defects was developed.

Philip Crosby, from 1970s to present day, focused his ideas

around the concept of cost quality. The cost of quality is the cost

incurred as a result of producing poor quality products and services.

He helped managers to understand the importance of quality; that

improved quality can lead to lower costs if the product or service and

the process that generate it are designed correctly, with the customer

in mind. He adopted the idea of zero defects in most of his work

based n the experience he had, working in the Martin Company,

which was involved in the construction of the pre-shipping missiles

for the American government. The company had a light schedule, and

had no option other than urging employees to built right fist time with

no defects (Stahl, 1999:9 and Wilkson, 1998:19). Other experts such

as Feigenbam A.V. in time 1960s and Shewart .W. in the 1930s have

also contributed in several ways to the development of TQM.

45

2.7 PRINCIPLES OF TQM

TQM can be defined as the management of initiatives and

procedures that are aimed at achieving and delivering quality products

and services.

A number of key principles can be identified in defining TQM,

including:

� Executive Management: Top management acts as the main

driver for TQM and creates the environment that ensures its

success.

� Customer Focus: Improvements in quality improves customer

satisfaction.

� Decision Making: Quality decisions are made based

measurements.

� Methodology and Tools: Use of appropriate methodology and

tools ensures that non conformances are identified, measured

and responded to consistently.

� Continuous Improvement: Companies continuously work

towards improving manufacturing and quality procedures.

� Company Culture: The culture of the company aims at

developing employees’ ability to work together to Improve

quality.

46

� Employee Involvement: Employees are encouraged to be pro-

active in identifying and addressing quality related problems.

� Decision Making: Quality decisions are made based on

measurements.

� Methodology and Tools: Use of appropriate methodology and

tools ensures that non conformances are identified, measured

and responded to consistently.

� Continuous Improvement: Companies continuously work

towards improving manufacturing and quality procedures.

� Company Culture: The culture of the company aims at

developing employees’ ability to work together to Improve

quality.

� Employee Involvement: Employees are encouraged to be pro-

active in identifying and addressing quality related problems

(Hill, 1987).

2.7.1 Objectives, Goals and Significance of Total Quality

Management

Objectives

1. Improvement in quality of production and services

2. Waste reduction

3. Cost reduction

47

5. Improvement in productivity

6. Safety improvement

7. Problems solving opportunity

8. Team work

9. Link all levels of management and workers

10. Total employee involvement

Goals

1. Quality products/services

2. Customer satisfaction

3. Cost control

4. Flexibility

5. Lead time

Significance

Using an organization like Phinomar farms for example; in the

years ahead, Phinomar will confront an increasingly complex array of

customer arid market issues. Global competition consumers and joint

ventures partners will place increasing pressure on Phinomar farms on

such issues as quality of products and services cost and response time

in dimensions that will become increasingly varied and complex.

Global business and regional economics are establishing quality

standards, which place business restrictions on non-conformers but

48

competitive advantage on companies who comply with these

standards.

In order to survive and remain profitable, the organization must

continuously challenge there processes, products and services

benchmark and continuously improve along world-class standards.

That is why Total Quality Management is significant at this time

(Medori and Steeple, 2000).

2.8 EFFECTIVE APPROACHES TO APPLICATION OF

TQM

A preliminary step in TQM implementation is to assess the

organization’s current reality. Relevant preconditions have to do with

the organization’s history, its current needs, precipitating events

leading to TQM, and the existing employee quality of working lift. If

the current reality does not include important preconditions, TQM

implementation should be delayed until the organization is in a state

in which TQM is likely to succeed. If an organization has back record

of effective responsiveness to the environment and if it has been able

to successfully change the way it operates when needed. TQM will be

easier to implement. If an organization has been historically reactive

and has no skill in improving its operating systems, there will be both

employee skepticism and a lack of skilled change agents. If this

49

condition prevails, a comprehensive program of management and

leadership development may he instituted. A management audit is a

good assessment tool to identify current levels of organization

functioning and areas in need of change. An organization should be

basically healthy before beginning TQM. If it has significant

problems such as a very unstable funding base, weak communication

systems, lack of managerial skill or poor employee morale, TQM

would not be appropriate. However, a contrail level of stress is

probably desirable to instate TQM.

People need to feel a need for a change, Grant et al (2011)

opines this to be the building blocks which are present in effective

organizational change. These forces include departures from tradition

are crisis organizing event, strategic decisions, and individual prime

movers and action vehicle. Departures from Tradition are activities,

usually at lower levels of the organization, which occur when

entrepreneurs more outside the normal ways of operating to solve a

problem. A crisis, if it is not too disabling, can also help create a

sense of urgency which can mobilize people to act. In the case of

TQM may be such a strategic decision. Such a leader may then

become a prime mover, who takes charge in championing the new

idea and showing others how it will help them get where they want to

go. Finally, action vehicles are needed and mechanisms or structures

50

to enable the change to occur and become institutionalized (Spencer

and Leslie, 1998:5).

2.9 KEY STEPS IN THE TQM PROCESS

1. Program initiation

2. Design and implementation

3. Exploitation of TQ-managed Business.

Fig. 2.1: Stages in the TQM process

Source: Atkinson, P.E (1990:256)

Defining strategies

Scope, scale and

creation

Raising awareness,

understanding

and interest

Planning the charge

programme

Initiation

Implementation

Exploitation

Business redesign

Analysis of

current operation

Integration and

testing

Exploiting the

Management

process

Managing the TQ

Managed business

Containing the

improvement

process

51

2.10 THE CHARACTERISTICS OF TQM

Conformity: Each mid position and/or department shall be regarded

as being a member of a chain of internal customers and suppliers,

finally directed at the external customers, conformity of the

deliverable shall be realized between the elements of this chain. The

practitioners must imbibe the principles in four areas, customer of the

business, the operators of the business, organization of the business

and the culture of doing business as practiced by the workers.

Excellence: Every step in improvement process is measured and

translated to monetary terms. The effect is the difference between

status quo and the aim as well as the realized improvement can be

communicated. These are very facilitating and are designed to assist

the normal organization in taking improvement actions.

Responsibility: This refers to the general approach to the

management of human resources. Industries are switching from

traditional paternalistic or autocratic approach to a more consensus

oriented and more participative way of personnel management. As a

result, motivation and identification in the enterprise seem to improve

it can therefore be regarded that TQM is not obstructed by ideological

argument. It is not responsible for quality or quality improvement but

it is for managers and people to take ownership of quality, and more

52

importantly, a process in which the concept of improvement is

imbibed by each individual (Jablonski, 1992).

2.11 APPROACHES FOR SUCCESSFUL APPLICATION OF

TQM

There are various approaches towards a successful

implementation of the TQM. The two common approaches are

categorized as:

a. The Package Approaches

b. The Taskforce Approach

The Package Approach: This is usually based on the work former

quality gurus; Deming, Juran, Crosby, Conway and several others.

This approach recognizes that changing behavior and attitude require

education, but heavily reliant on videos and workbooks and does not

take sufficient account of the cultural issues of problems with

organizations.

The Taskforce Approach: The taskforce approach provides and is

aimed at specific rather than whole style and attitude of managing the

organization. The importance of education and training in the TQM

process cannot be over emphasized. The consultation’s education

methods and materials should be examined in depth as considerable

53

experience is usually reflected in the. Many consultants rely on

packaged educational methods and workbooks.

2.12 BENEFITS, SHORTCOMINGS AND COST OF TQM

2.12.1 Benefits of TQM

Payoff from TQM has been focused severally by different

writers. The benefits range from long term profitability, high product

quality, low cost, to regained market share. A USA study of 22 TQM

companies that were finalists for the Malcolm Baldrige National

Quality Award in 1988 and 1989 shows increased operating

performance. The firm reported average annual improvements of 5

percent to 12 percent in reliability, outcome delivery, order

processing time, errors or defects, product lead time, inventory

turnover and cost quality as quoted by Stahl M.J (1999:193).

TQM also results in high quality in products and services of

organization, which have embraced it. It as well result in low cost, of

production and operation as quality goes off due to systematic and

process changes costs come down (Stahl, 1999:193). Deming (2004)

also showed how high quality can lead to lower costs. His ideals are

presented in the diagram below:

54

Figure 2.2: The Pervasive Role of Quality

Source: Deming W.E. (1986:120: out of Crises Cambridge

2.12.2 Short-Coming of TQM

The discussions so far have presented TQM a flawless tool for

the achievement of flawlessness. The position with various TQM

experts is that there is no problem with TQM pursuit, but in the

implementation. According to Stahl, (1999:115) TQM failure results

from lack of commitment on the part of management. He also noted

that there have been a number of criticisms against TQM in the

1990s. Some dislike its vocabulary while others content that TQM is

just a fad. However, no matter the vocabulary that may evolve, the

concept of managing systems with cross functional teams to

continuously provide greater value to customers will remain.

Improve

Quality

Cost decreases because of less

rework, fewer mistakes, fewer delays

and better use of massive time.

Productivity

Improves

Provide jobs,

and more jobs

Stay in business

Capture the market with

better quality and lower

prices

55

TQM effort fails in some organization because of the low level of

education and training of management and employees in the use of

TQM tools and techniques (Dahlgaar et al, 2005).

2.12.3 The Cost of TQM

Many companies believe that the costs of the introduction of

TQM are far greater than the benefits it will produce. However,

researchers across number of industries have costs involved in doing

nothing, i.e. the direct and individual costs of quality problems, are

far greater than the costs of implementing TQM.

The American quality experts, Phil Crosby, wrote that many

companies chose to pay for the poor quality in what; he referred to as

the “price of non-conformance”. The costs are identified in the

Prevention, Appraisal, and Failure (PAF) model.

� Prevention costs are associated with the design,

implementation and maintenance of the TQM system. They

are planned and incurred before actual operation and includes:

• Product Requirements: The specifications for incoming

materials, processes, finished products/services.

• Quality Planning: Creation of plans for quality

reliability, operational, production and inspections.

56

• Training: The development, preparation and

maintenance of processes.

� Appraisal Costs are associated with the vendors and customers

evaluation of purchased materials and services to ensure they

are within specification. They include :-

• Verification: Inspection of incoming materials against

agreed upon specifications.

• Quality Audits: Check that the quality system is

functioning correctly.

• Vendor Evaluation: Assessment and approval of

vendors.

� Failures costs can be split into those resulting from internal

and external failure. Internal failure costs occur when results

fail to reach quality standards and are detected before they are

shipped to the customer. These can include

• Waste: Unnecessary work or holding stocks as a result

of errors, poor organization or communication.

• Swap: Defective product or material that cannot be

repaired, used or sold.

• Rework: Correction of defective material or errors.

57

• Failure Analysis: This is required to establish the causes

of internal product failure.

� External failure costs occur when the products or services fail

to reach quality standards, but are not detected after the

customer receives the item. These can include :-

• Repairs: Servicing of returned products or at the

customer site.

• Warranty Claims: Items are replaced or services re-

performed under warranty.

• Returns: Transportation, investigation and handling of

returned items (De Cock etal, 2007).

2.13 FEATURES OF TOTAL QUALITY MANAGEMENT

Total Quality Management has various features:

1. The major characteristic is the close links, which are forged

between top management and shop floor operations. Operators

are encouraged to take more decision and accept more

responsibility. As a consequence under management are being

reduced or eliminated.

2. It is a process focus that places premium on prevention rather

than inspections.

58

3. It reduces errors, wastes and conflict time and delay in

operations.

4. It is a way of life and never ending journey which involves

being quality driven in all aspects by continuous improvement.

5. It involves the art of preventing problems before they occur

instead of fire -fighting approach to solving problem.

6. Quality goals are the cornerstone of the strategic plan for

achieving profitability, return on investments and market share.

7. Quality permeates all suppliers, employees, customers, input

and outputs.

8. Organization perceived as interdependent, collaboratively link

of internal and external customers.

9. It involves motivation through improvement.

10. Individual and department co-operation through team work

(Scheurmann etal, 1997)

2.14 SECTORIAL APPLICABILITY OF TOTAL QUALITY

MANAGEMENT

According to Juran (1988), the roles of Total Quality

Management could be seen in five (5) diverse sets of fields, these

include:

59

• Manufacturing

• Finance Sector

• Human Resources

• Information System

• Service Quality

1. Manufacturing

The role of Total Quality Management in the manufacturing

environment should be to integrate customer’s satisfaction with

the production process e.g. some organizations are making

certain that their products meet customer’s satisfaction through

Quality Function Development (QFD), which involves sending

their personnel to customers to obtain better understanding of

how their products are used. Another example is that others are

moving into external marketing, selling goods, primarily for

their parents companies and making huge sales quotas for the

operation.

2. Finance

The marketing role/challenges in the sector involves basic

market segmentation and product positioning which are

currently introduced by some firms and insurance companies,

while motivating on-going programs. The role is to build a

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cadre of personnel who want to serve customers with a high

level of quality and quality consciousness.

3. Human Resources

Here, human resources personnel agree on the necessity to

utilize marketing approaches with two groups to improve

quality services effectively. This goes to show the way human

resources can market quality and expect complementary effect

on customers’ satisfaction.

4. Information System

Information systems operations, market their process

knowledge to help support Total Quality Management. This

effort will promote the needed marketing and Total Quality

scenery.

5. Service Quality

Service quality management pertains to the Service and

administrative areas of manufacturing companies as well as o

the entire service industry. Its main role is the prevention of

non-conformance in service and administrative activities and

the continual improvement of service operations.

The implementation of Total Quality Management requires a

well define management structure capable of driving the quality

improvement process through the organization.

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2.14 THE CORE VALUES OF TQM

To have a better understanding of TQM, it is appropriate to

unveil its core concepts and examined them critically as follows:

(i) Achieve quality in everything: people, processes, product and

services.

(ii) Do the right things right first time every time.

(iii) Have visceral commitment to, and obsession, for customers

who are both internal and external appeasers.

(iv) Reduce cost of bad quality by investing substantially in cost of

good quality.

(v) Provide quality leadership and motivation to enable all

employees commit to the total quality process.

(i) Achieve Quality in Everything: People, Process, Products

and Services

In other to achieve quality in people, there has to a system in

place which ensures quality in recruitment, selection,

appraisals, promotion, rewards and quality in human resources

development and management. It also calls for quality

leadership at all levels of the organization that can motivate

their followers to peak performance through creating room for

innovativeness, inspiring shared vision and employment.

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Attaining quality in process means all business processes of

administration, Information, finance audit, strategic planning,

reception, telephoning, sales, marketing etc must be capable of

delivering to customer the right product and services right first

time every time, at a faster, better and overall lowest cost.

A quality product/service i.e. the outcome of any process is that

which fully meets the customer needs and expectations.

However, the organizations that make a disciplined habit of

achieving excellence in the three components achieve rewards

of profitability, motivated and loyal employees, over satisfied

stakeholders, and the impact of this is on both growth earnings

and profitability as a whole in the organization.

(ii) Do the Right Things Right Time Every time

The right things are judged strictly from the perspective of the

customer. Thus, only activities that have customer

requirements to satisfy are considered acceptable.

Faithful adherence and commitment to the mission of quality

delivering process (QDP) is the secret of TQM organizations.

The quality delivery process requires every work done (from

top) management down to the lowest running of the

organization’s hierarchy) to define their mission in business,

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determine their outputs and ensure harmony between output

and mission, identify customers for each output; determine

customer requirements for each output; develop specification

for each output that satisfy the customers requirement; and

establish a. work process, including the identification of inputs,

capable of customer’s requirements at the lowest overall cost.

When the above is implemented and become a culture within

the organization, wastes or expensive repeated works are

totally eliminated or at least minimized; and continuous

improvement becomes a norm. This is great for the customer

who perceives the organization as one that always delivers the

right product right first time and very good for the organization

that is constantly finding innovation methods for improving its

process while delighting the customer.

(iii) Have Visceral Obsession for Customers

Total quality management organizations (TQM) seek that a

casual relationship exists between the employees and

customers. This in turn will promote the growth in external

customer loyalty, and therefore the fortunes of the business.

The American society for quality control states this fact “the

frontline providers of service treat customers in much the same

way that they, as employees, are treated by their employers”.

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Thus TQM organizations usually conduct external customer

and employee surveys, face to face discussions, focus groups,

and advisory panel market research liberally to listen to their

customers.

The TQM tool enables organizations to recognize that the

employee is the internal customer of management and

organizational excellence can only be achieved if the internal

customers are treated well.

(iv) Reduce Cost of Bad Quality by Investing Substantially in

Cost of Good Quality

The Cost of quality (COQ) is the cost of activities additional to

a basic work process used in a business and they include:

(i) The cost of activities which are designed to ensure

conformance to agreed customer requirements-cost of

commence or cost of good quality.

(ii) The cost of activities which result from failure to conform to

agreed customer requirements-cost of bad or poor quality and

(iii) Cost of lost opportunities-cost of lost sales, activities, with

quality as cost of good quality, include; strategic planning,

market research, standard living procedure, preventive

maintenance, quality and process audits, workers-oriented

65

programme, competitive and key process, benchmarking,

quality measurement and feedback systems (Hill1987).

While those which can be classified as cost of bad quality

include: employee turnover, excess marketing costs, excess

services or product feature, lost customers and market share,

absenteeism, re-work, excess. Managerial and professional

staff, excess overtime, law suits, unproductive meetings and

lateness. In other words, the cost of quality model in a TQM

package is aimed at raising the level of awareness of

organizations to the various categories of cost of poor quality,

so that they can recognize that quality is not at abstract and

therefore focus on investing the cost of quality to drive out bad

cost of quality.

(v) Provide Quality Leadership and Motivation to enable all

Employees follow to the Total Quality Process

Traditionally, managers have been figure of authority that

welded the big stick, and perhaps encouraged compliance

through fear. In a TQM environment, the above mentioned

style of leadership is inappropriate; Employees cannot be

coerced to innovation, or think of improvement or self measure

their performance.

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Although we have various styles of leadership, but we shall

consider the one pioneered by Kenneth Blanchard, an American

management guru: the directing is a blend of high directive and low

supportive behavior. The coaching style is a blend of high directive

and high supportive behavior; the supporting style is a blend of high

supportive and low directive behavior and delegation style is a blend

of low supportive and low directive behavior.

2.15 ADVANTAGES OF TOTAL QUALITY MANAGEMENT

(TQM)

Organizations that have achieved high level of organizational

excellence bring in their external customers into their planning

process; this way those that matter most and those activities can

contribute to the achievement higher quality achievement in the

organization.

Additionally, prevention is rather better than cure by doing the

things right first time every time, reliability, promptness and

production of products and services which give the customers value

for money. This in effect would eliminate waste and extravagance,

raise quality of goods and services for customer satisfaction at

unprecedented levels at the lowest overall cost (Jura, 1988).

67

Additionally, employee morale and productivity will soar,

because everybody is given a sense of belonging and a good sense of

leadership is also expected, because employees have been known to

be motivated for quality through using decision first time, every time,

using organizational structures that are lean and fit to enhance

communication and customer responsiveness, investing substantially

in good cost of quality, using a structured process of solving problems

so as to arrive at the right solution first time every time: managing

business on hard facts rather than on personal fancies clearly, on

organization, with such positive records will be on a winning streak,

and the inner and external customers will perceive and acknowledge

the organizational excellence and profitability.

TQM emphasizes strategic quality planning; employees at all

levels participate in a bottom up-bottom process to evolve a sound

long-term plan which defines the organization’s mission, values, arid

strategic direction. Also TQM identifies key cross- functional process

which impact on external customers, scans the business environment

to discern opportunities and threats, and contains clear performance

objectives for superior quality achievement.

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2.16 REASONS WHY SOME MANAGEMENT WOULD

OPPOSE TQM

Most versions of TQM philosophy stress three (3) core

principles as follows:

(i) All employees can contribute effectively to improvement. It

follows that management have both an economic incentive and

even a moral imperative to provide all employees with the

opportunity to contribute. This requires the provision of time,

training, access to information, and (most important) the

possibility of implementation. A further corollary is that team

work must be the primary mode of management, because the

co-operation of others is essential to share information and to

implement improvements.

(ii) The ultimate goal of the organizations efforts is customer

satisfaction. Even profit is to be mostly function of, and

therefore subordinate to, the requirement, to please customers

with products, services and hindered every aspect of their

interaction with the company. It follows from this that

management or managers are expected to put the customers

interest first in all situations, even (in some views, especially)

when these appear to conflict with other business priorities.

These is a kind of Macho customer focus culture which

69

reserves heroic status, from those who have acted

disproportionately and reasonably on their customer’s behalf,

such as the legendary Nord Strain’s employee who accepted

the return to defective times, knowing full well that Nord

Strains’ has never sold times.

(iii) Process is at least as importance as results. This represents a

subtle and powerful extension of the idea that consistent results

depend on consistent process- the independence is elevated to

equivalence. On this view it is the managers responsibility to

behave as a student he cannot simply achieve the right answer

(result) but must demonstrate the supporting data and

“calculation” (process) and in line with the first principle noted

above, process inevitably means team work, which means in

practice that he must not only demonstrate the “calculation” but

achieve consensus. However, this is all the good since

implementation, will be facilitated and organizational

capabilities will be enhanced.

(iv) Having achieved their status through experience, education;

technical and or leadership skill managers have reason to

believe that they have more to contribute in their area of

responsibility than any of their subordinates or any team

composed of their subordinates. Similarly, by virtue of their

70

functional, specialization, this situation holds true for their peer

group and even for their less specialized superiors (Ward,

1998).

Also because managers usually have broader and faster to more

sources of formation, they naturally believe that they are better

informed than others, they may accept that their values have distanced

them from the Gemba (where the action is) by this they do not

perceive this as a significant limitation. The common response to this

argument is very grudging, partial acceptance coupled with an

imputation of the motives. Even though managers do have more

ability to contribute in some cases, but they certainly do not know

everything (especially what’s really going on in Gemba) and besides

they should share their knowledge and so increase everyone’s ability.

Otherwise, they are just trying to preserve their own status; for TQM

advocates that settles the matter. But many managers do not accept

that the knowledge they have acquired over years of experience is so

readily transferable and they resent the accusation that they value

their place in the hierarchy and the hierarchy itself are in some way

illegitimate, derived not from merit but from the appropriation of

knowledge that is the rightful entitlement of all employees. Finally, at

the practical level they believe that involving others in areas of their

own expertise will at best delay matters and at worst produce sub

71

optional result. (the cliché about the lunatics takings over the asylum”

may escape the tips of the less politically careful) as one senior

manager asked in complete the wrong decision”. Not everything is a

process (in the TQM sense of the word).The most important things-

insight, instinct, talent and creativity-do not benefit from process

improvement efforts. This argument draws a distinction between

explicative activities such as manufacturing, purchasing and creative

activities such as design and strategy sophisticated manager a degree

of fuzziness at the boundaries but nonetheless maintain that in certain

situations the just right feelings” should dictate direction and that

there are meaningful contributions beyond the reach of data and

analysis. These managers are not only managers but managers’

contributions are justified in resisting efforts to systematic, the truly

important aspects of their work and the associated participation of

other employees therein.

2.17 The Quality intervention process

There are some principles that guide any organizational

intervention intended to improve quality.

1. Management commitment

� Plan (drive, direct)

� Do (deploy, support, and participate)

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� Act (recognizes, communicate, revise)

2. Focus on work processes. The quality of products and services

depends most of all on the processes by which they are

designed and produced, management must train and coach

employees to asses, analyze and improve work processes.

3. Customer focus:

� Supplier partnership

� Service relationship with internal customers

� Never compromise quality

� Customer driven standard

4. Employee empowerment

� Training

� Suggestion scheme

� Measurement and recognition

� Excellence team

5. Continuous improvement

� Systematic measurement

� Excellence team

� Cross-functional process management

� Attain, maintain, improve standards

73

Akpeiye (1996:28) observes that the core concepts are:

• Achieve quality in everything: processes, products/services

• Do the right things at the right time continuously striving for

improvement

• Manage business through team building and team working

• Strengthen the supplier-customer chain

• Flatten hierarchies and table structures.

• Reduce cost of bad quality by investing substantially in cost of

good quality

• Investing substantially in cost of good quality

• Use total quality tools to generate hard facts to manage

business rather than depend on opinions or whims.

• Provide quality leadership and motivation to enable all

employees commits themselves to the total quality process.

On his part, MacDonald (1992:31) identified four different principles

of TQM.

� The process chain: That is work should not be isolated within

the department fortresses but should be divided into series of

activities or process. Each link must be equally strong, getting

it right first time at each stage.

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� Recognizing the internal customers and suppliers: A

fundamental objective of TQM is to ensure that everyone

realizes that they are in a customer supplier relationship.

� Communication: The traditional communication system of

directing information downward only should be changed. The

direction should be two ways that is upward and downward.

� Brining joy to work: It is believed that most of the problems in

the organization are caused by the system and not the people

and management should concentrate on measuring the system.

They should ensure that the system works and set objectives for

people that create trust and collaboration.

2.18 TQM FOCUS/DRIVERS

According to Eze (2000) the key drivers of TQM are:

� Integration

� Continuous improvement

� Customer focus

1. Integration: It is an attempt by the organization to achieve

uniform concept of quality across the whole organization and

attain harmonious interdependence and co-operation amongst

its various submits and components. This to achieve

integration, TQM proposes the following:

75

� Process thinking and management

� Employee involvement

� Cross-functional team

� Brain storming

� Training and development the inverted pyramid

2. Continuous Improvement: This is the belief that no system is

beyond improvement. This improvement could be innovative-

involving large dramatic changes of small incremental changes.

3. Customer focus: Here, we have internal customers and

external customers.

Internal customers comprise suppliers, organizational employees and

the marketer/dispenser of the products/services. These are the people

whose activities bear on the overall quality of the organization’s

output. They are the customers of the process.

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 traditionally sense. TQM however,

proposes that internal customers should be treated carefully just as the

external customer or even better, that is employees should be treated

the same way you want them to treat customers.

76

The concept of productivity is also increasingly linked with

quality-of output, input and the process itself. An element of key

importance in the quality of the workforce, its management and its

working condition, and it has been generally recognized that rising

productivity and improving quality of working life do tend to go hand

in hand.

The benefits of TQM implementation cannot be overemphasized; it

enhances productivity. It touches on all aspects of an organization and

these include:

� Better employee relations

� Corporative regulation of efforts

� Increased probability, frequency and consistency of making

good products and services.

� Higher potential profitability

� Dynamic integration of activities into an effective total system.

� Uniformity and consistency of quality objectives

� Specification of the interrelationships of subsystem

� Systematic solutions of quality problem in a organization.

Banks that applies TQM in the discharge of its services to the

customers benefits a lot in the following areas.

• Waste minimization

• A greatly improved product and services

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• TQM provides the best opportunity to increase profit.

• Help in retaining customers as well as adding more customers

to their market size.

• It fosters the spirit of togetherness and unity

• It sustain, competitive advantage

• It motivate work force

• It eliminates much hassle and frustration involved in

management.

• The practice of TQM will engender boost in technological

advancement.

• It helps organization members to see originations from holistic

perspective and thus minimize the dysfunctions associated with

departmental rivalry and empire building.

2.19 TOOLS OF TOTAL QUALITY MANAGEMENT (TQM)

The first TQM tool is the Statistical Process Control (SPC).

SPC is a statistical method through which managers can control the

production or the service delivery process, in order to make shifts

attempting to improve it. The basic objective of SPC is to reduce

variation which is inherent in many processes. SPC is one of the most

well- known management methods.

78

The second technical aspect of TQM is the ISO 9000 series.

The international standards organization (ISO) 9000 is perhaps the

most popular quality improvement system. It is an international set of

documents widely known as standard written by a worldwide

organizations known as the ISO. This set of standard ensures that a

company has a specific quality improvement policy, which makes it

more competitive in the market. This aspect of competitiveness is one

that makes ISO 9000 very popular among Nigerian oil firms

(Oakland, 2005).

Histograms are useful TQM tools. Histograms graphically

demonstrate the relative number of occurrences of a wide range of

events (Psychogios, 2005). The most important causes are shown on

the diagram and correcting actions take place. The tree diagram,

which is also known as systematic diagram method (Dale, 2005), is a

tool through which someone can arrange targets, problems, or

customer is needs in a specific order.

The fifth technique is critical path analysis (CPA). The tool is

associated with managing projects. It is related to TQM because

project management is critical to the implementation of quality

programs within an organization. CPA seeks to establish through the

use of a network of arrows or nodes, a logical order of activities in

terms of time and importance for the completion of a project.

79

Benchmarking is a tool of TQM used to learn the best practice within

and outside the industry. It is relevant in that it can help the firm find

ways to improve processes and systems. It may involve comparing

company’s financial and operating performances of various internal

departments against each other. It enables organization to focus on the

changes in management capability on areas where it yields the best

through improving quality, productivity and customer satisfaction.

2.20 THE DEMING PRINCIPLES FOR TOTAL QUALITY

MANAGEMENT

Total quality management system relates not just to the

technical quality of the products, but more to the quality of

performance of every function in the company. This recognizes that

the quality and cost of a product, and the level of service provided,

depend on its design, the lead times, the process reliability, the choice

of materials and the effectiveness the supporting functions such as

suppliers and administrative staff. What distinguishes a total quality

company from a traditional one is the way in which its people think

and act; the value that such people place on quality of performance in

every activity, and what they do to improve the quality of their work.

80

This attitude can be described as a culture, which defines how people

at work share with each other and how they do things on a daily basis.

The principles that govern the implementation of a total quality

system, and which have proved effective over numerous applications,

were originally laid down by Dr. W.S. Deming and developed by

others such as Dr. J.M. Duran and Dr. K. Ishikawa. These Principles

are as follows:

� Innovate in all areas including training, and provide resource to

assist. Maintain an innovative and vigorous training pogramme.

� Learn the “zero-defect” philosophy and the need for continued

improvement.

� Do not rely on mast inspection for quality. Put quality

prevention on-line via SPC.

� Reduce the number of suppliers and develop them for

continuous improvement of service as well as cost.

� Use statistical techniques to identify resource of water and cure

both sysc1n faults and, local faults at source.

� Ensure that organizational and management systems support

innovation and continuous improvement.

� Provide supervision with on-line techniques for problem

identification and problem solution via their teams.

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CHAPTER THREE

RESEARCH METHODOLOGY

3.1 RESEARCH DESIGN

In view of Agbaeze (2004) in Agu,(2011:24), research design

is simply a map or plan of action showing what and how the

researcher will carry out the step-by-step procedure for accomplishing

the research task. For the purpose of this work survey design will be

adopted.

3.2 SOURCES OF DATA

The data to be used for this research work will be obtained

from two sources namely; primary and secondary sources.

3.2.1 Primary Sources

In collecting primary data for the work, structured

questionnaire and oral interview will be used. By way of validating

and authenticating the data obtained from the secondary sources, the

researcher conducted a personal (oral) interview on the staff of

Phenomar farms.

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3.2.2 Secondary Sources

The secondary sources will involved the use of existing

researches for the purpose of contributing their quota to the problem

under study. Specifically, the materials to be used for extracting

secondary data for this study include journals, news bulletins, and

internet.

3.3 INSTRUMENTS FOR DATA COLLECTION

The instruments for data collection in this research work

include structured questionnaire and oral interview schedule.

3.4 POPULATION OF THE STUDY

The population of study is made up of 456 employees of

Phinomar Farms Ltd. This comprises the management and technical

staff of the poultry farm.

3.5 SAMPLE SIZE DETERMINATION

The formula adopted in determining the sample size for this

study is that pro-pounded by Taro Yamane (1964). The mathematical

formula is given as:

n = N

1 + N(e)2

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Where;

N = sample size

N = population size

E = maximum acceptable margin error (0.05)

Thus, applying this formula in determining the sample size for this

study, we substitute as follows:

n = 456

1 + 456(0.05)2

n = 456

1 + 456(0.0025)

n = 456

1 + 1.14

n = 456

2.14

n = 213

3.6 RELIABILITY AND VALIDITY OF RESEARCH

INSTRUMENT

3.6.1 Reliability of Research Instrument

The reliability of the instrument was determined by a pilot

study. Test-retest was done using twenty (20) questionnaires

administered to employees of Akiota works ltd. All the questionnaires

distributed were completed and returned. Using Karl Pearson product

84

moment correlation coefficient, the items of the survey was found to

consistent because the correlation coefficient (r) was found to be

high, (r = 0.64).

Computation of Products Moment Correlation (r)

Average

Response

X

Average

Response

Y

XY X2

Y2

1 2 3 6 4 9

2 4 5 20 16 25

3 4 3 12 16 9

4 4 5 20 16 5

5 5 4 20 25 16

6 4 4 16 16 16

7 5 5 25 25 25

8 4 5 20 16 25

9 3 3 9 9 9

10 5 5 25 25 25

11 4 4 16 16 16

12 4 5 20 16 25

13 5 4 20 25 16

14 4 4 16 16 16

15 5 4 20 25 16

16 2 3 6 4 9

17 4 3 12 16 9

18 4 5 20 16 25

19 5 4 20 25 16

20 4 4 16 16 16

81 82 339 343 348

Correlation coefficient(r) = ± Sxy

SxSy

Where Sxy = ∑ xy = (xy) (∑y)

n n n

85

Sx = ∑x2 – (∑X)

2

n n

Sy = ∑Y2 - (∑Y)

2

n n

Sxy = 339 - = 16.95 (4.05 x 4) = 16.65

Sx = 343 - = 17.1 – 16. = 0.7

= 0.837

Sy = 348 - = 17.4 – 16.81 = 0.59

= 0.768

0.345 = 0.636

0.643

r = 0.64

3.6.2 Validity of measurement

To ascertain the validity of the instrument, it was subjected to

panel of examiners comprising of seven management experts who

examined the items and made sure they were in line with the

objectives of the study. The structure and language of the

questionnaire was modified in the light of their corrections. The

instrument was structured in such a way as to minimize the effect of

errors like inconsistency and ambiguity.

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20

82

20

81

20

2

81

20

2

86

3.7 TOOLS FOR DATA ANALYSIS

Data obtained in a research work can be treated with any

technique depending largely on the objective and nature of the study

and data obtained. In this study, tables and percentages, Z-test, chi-

square and correlation statistical tools were employed for analysis.

Biographical information was analyzed with percentages, hypotheses

I was analyzed using Z-test, hypothesis II analyzed with chi-square

statistical tool, while hypothesis III was analyzed using Pearson’s

correlation.

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CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

The focus of this chapter is on the presentation and analysis of

data generated through interviews and questionnaires administered to

the respondents. Tables were used in presenting the data generated;

the descriptive statistics of simple percentages was used to analyze

the biographical information and responses to questions in the

questionnaire, while correlational analysis and chi-square statistical

test were used to test the hypotheses.

Table 4.1: Questionnaire Distribution

Number

Distributed

% Number

Returned

% Not

Returned

%

213 100 210 98.6 3 1.4

Source: Field Survey, 2013.

The table 4.1 shows number of questionnaire administered. It

shows that out of 213 copies of the questionnaire distributed, 210

were returned while 3 copies were not returned. This indicates a high

response rate of 98.6%.

4.2 Sex Distribution

Option Respondents Percentage

Male 100 47.62

Female 110 52.38

Total 210 100

Source: Field survey, 2013.

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From table 4.2, 100(47.62%) out of the 210 respondents are

male while, 110(52.38%) are female. This shows that there are more

males working at Phinomar Farms, than females.

Table 4.3: Marital status of Respondents

Option Respondents Percentage

Single 110 52.38

Married 60 28.57

Widowed 35 16.66

Divorced 5 2.38

Total 210 100

Source: Field survey, 2013.

Table 4.3 shows that 52.38% of the respondents are singles,

28.57% are married, 16.66% are widows while, 2.38% are divorced.

This shows that there are more singles than all other categories in the

poultry farm.

Table 4.4: Educational Qualification

Option Respondents Percentage

OND/NCE 130 61.91

B.Sc/HND 70 33.33

M.Sc/MBA 10 4.76

P.hD - -

Total 210 100

Source: Field survey, 2013.

89

The table shows that 61.91% hold OND/NCE, 33.33% of the

respondents hold B.Sc/HND, 4.76% hold M.Sc/MBA while none has

PhD. This shows that there are more holders of lower academic

qualifications in the poultry farm.

Table 4.5: Years of Experience.

Option Respondents Percentage

2 years or less 34 16.19

3-5 years 66 31.42

6-10 Years 110 52.38

Total 210 100

Source: Field survey, 2013.

Table 4.5 shows that 16.19% of the respondents have been in

the industry for less than two years, 31.42% have been in the industry

between 3-5years while 52.38% have been in the industry between 6-

10 years.

Table 4.6: Respondent’s Age

Option Respondent’s Percentage

20-30 years 140 66.67

31-40 years 50 23.81

41-50 years 20 9.52

Total 210 100

Source: Field survey, 2012.

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Table 4.6 presents the age of the respondents, 66.67% are

between 20 – 30 years, 23.81% are between 31 – 40 years, and 9.52%

are between 41 – 50 years. This shows that there are more youths in

the poultry farm.

4.2 QUESTIONNAIRE ANALYSIS

Table 4.7: Implementation of TQM and reduction of scraps

Option Number Percentage

Strongly Agree 130 61.91

Agree 76 36.19

Undecided 2 0.95

Disagree 2 0.95

Strongly Disagree - -

Total 210 100

Source: Field Survey, 2013

The question was designed to examine the effect of TQM on

the reduction of wastes at Phinomar Farms ltd. The response shows

that 130 (61.91%) respondents strongly agreed that TQM

implementation reduces wastes, 76 (36.19%) respondents agreed,

while 2 (0.95%) respondents were undecided. However, 2(0.95%)

respondents disagreed and no respondent strongly disagreed that

TQM reduces the quantity of wastes at Phinomar Farms Ltd.

91

Table 4.8: TQM and reduction in the frequency of materials

purchase

Option Number Percentage

Strongly Agree 136 64.76

Agree 70 33.33

Undecided - -

Disagree 4 1.91

Strongly Disagree - -

Total 210 100

Source: Field Survey, 2013

Table 4. Shows that 136 (64.76%) respondents strongly agreed

that TQM reduces the frequency of materials purchase, 70 (33.33%)

respondents agree and no respondent was undecided. A total of four

(1.91%) respondents disagreed that TQM reduces the frequency of

materials purchase and no respondents strongly disagreed.

Table 4.9: Quality management and reduction of unit cost of

items

Option Number Percentage

Strongly Agree 86 40.95

Agree 120 57.15

Undecided 2 0.95

Disagree - -

Strongly Disagree 2 0.95

Total 210 100

Source: Field Survey, 2013.

Table 4.9 shows that 86 (40.97%) respondents strongly agreed

that quality management reduces unit cost of products, 120 (57.15%)

92

respondents agreed and 2 (0.95%) respondents were undecided.

However, no respondent disagreed while 2 (0.95%) strongly

disagreed that quality management reduces unit cost of products.

Table 4.10: Quality management and reduction in idle time

Option Number Percentage

Strongly Agree 70 33.33

Agree 75 35.72

Undecided 20 9.53

Disagree 35 16.65

Strongly Disagree 10 4.77

Total 210 100

Source: Field Survey, 2013

The question was designed to find out the effect TQM on idle

time reduction. The responses show that 70 (33.33%) respondents

strongly agreed that quality management reduces idle time,

75(35.72%) respondents agreed while 20(9.53%) were undecided.

Thirty five (16.65%) respondents disagreed and ten (4.77%)

respondents strongly disagreed that TQM reduces idle time,

respectively.

93

Table 4.11: Quality management and increment in number of

goods produced

Option Number Percentage

Strongly Agree 180 85.72

Agree 28 13.33

Undecided 2 0.95

Disagree - -

Strongly Disagree - -

Total 210 100

Source: Field Survey, 2013

Table 4.11 shows that 180(85.72%) out of 210 respondents

strongly agreed that quality management brigs about increment in

quantity of products produced, 28(13.33%) respondents agreed while

2 (0.95%) respondents were undecided.

Table 4.12: Quality management and expansion of customer base

Option Number Percentage

Strongly Agree 78 37.15

Agree 67 31.90

Undecided 33 15.71

Disagree 20 9.53

Strongly Disagree 12 5.71

Total 210 100

Source: Field Survey, 2013

94

Table 4.12 shows that 78 (37.15%) respondents strongly agreed

quality management expands customer base, 67 (31.90%) agreed

while 33(15.71%) were undecided. It also shows that 20(9.53%) and

12 (571%) respondents disagreed and strongly disagreed, respectively

that quality management expands customer base.

Table 4.13: TQM and improvement of employees’ morale

Option Number Percentage

Strongly Agree 70 33.33

Agree 75 35.72

Undecided 20 9.53

Disagree 35 16.65

Strongly Disagree 10 4.77

Total 210 100

Source: Field Survey, 2013

Table 4.13 shows that 70(33.33%) respondents proper

application of TQM brings about improvement on employees’ moral,

75(35.72%) agreed while 20(9.53%) respondents were undecided.

However, 35(16.65%) and 10 (4.77%) respondents disagreed and

strongly disagreed, respectively that application of TQM brings about

improvement on employees’ moral.

95

Table 4.14: TQM and improvement in the work process

Option Number Percentage

Strongly Agree 55 26.19

Agree 88 41.90

Undecided 15 7.14

Disagree 30 14.29

Strongly Disagree 22 10.48

Total 210 100

Source: Field Survey, 2013

The question was designed to examine the effect of TQM on

work process; it was found that 26.19% of the respondents strongly

agreed that TQM increases the efficiency of the work process,

41.90% agreed and 7.14% were undecided. While 14.29% disagreed,

10.48% strongly disagreed that TQM improves on the work process

at Phinomar Farms Ltd.

Table 4.15: TQM and increment in employees’ commitment

Option Number Percentage

Strongly Agree 78 37.15

Agree 67 31.90

Undecided 33 15.71

Disagree 20 9.53

Strongly Disagree 12 5.71

Total 210 100

Source: field survey, 2013

96

The question was designed to examine the effect of TQM on

employees’ commitment; it was found that 37.15% of the respondents

strongly agreed that TQM increases the employees’ commitment,

31.90% agreed and 15.71% were undecided. While 9.53% disagreed,

5.71% strongly disagreed that TQM improves on the employees’

commitment at Phinomar Farms Ltd.

Table 4.16: TQM and improvement in the quality of products

Option Number Percentage

Strongly Agree 130 61.90

Agree 76 36.19

Undecided 2 0.95

Disagree 2 0.95

Strongly Disagree - -

Total 210 100

Source; Field Survey, 2013

Table 4.16 shows that 130(61.90%) respondents strongly

agreed that TQM brings about improvement on the quality of

products, 76(36.19%) respondents agreed and 2 (0.95%) respondents

were undecided. However, 2(0.95%) respondents disagreed, no

respondents strongly disagreed that TQM brings about improvement

in the quality of products.

97

Table 4.17: TQM and improvement of total organizational output

Option Number Percentage

Strongly Agree 185 88.10

Agree 25 11.90

Undecided - -

Disagree - -

Strongly Disagree - -

Total 210 100

Source: Field Survey, 2013.

Table 4.17 shows that 185 (88.10%) respondents strongly

agreed that TQM brings about improvement in total organizational

output and 25(11.90%) respondents agreed.

4.3 TEST OF HYPOTHESES

To test the hypothesis stated in chapter one, Z-Test statistics,

Chi-square and Pearson correlation coefficient were employed, aided

by computer Microsoft special package for social sciences (SPSS)

Hypothesis one: TQM has significant positive effect on cost

reduction at Phinormah Farm Ltd.

98

Table 4.18:Descriptive Statistics

N Mean Std. Deviation Minimum Maximum

The effect of TQM

on cost reduction

210 4.5245 .54918 1.67 5.00

Table 4.18 displays the descriptive statistics of TQM and cost

reduction. It had a mean score of 4.5245 and standard deviation of

5.4918.

Table 4.19: One-Sample Kolmogorov-Smirnov Test

The effect of TQM on

cost reduction

N 210

Normal

Parametersa,,b

Mean 4.5245

Std. Deviation .54918

Most Extreme

Differences

Absolute .224

Positive .193

Negative -.224

Kolmogorov-Smirnov Z 3.239

Asymp. Sig. (2-tailed) .000

a. Test distribution is Normal.

b. Calculated from data.

99

Decision Rule

Decision rule is to accept the alternate hypothesis if the

computed Z- Test value is greater than tabulated Z-Test value

otherwise reject the null hypothesis.

Decision

Since the Z-test computed Zc= 3.239 is greater than Z-test table

value Zt=1.96, the null hypothesis is rejected and the alternate

hypothesis is accepted. Thus, we conclude that Total Quality

Management reduces cost of operation in Phinorma poultry.

Hypothesis two: TQM has significant positive effect on goal

attainment at Phinomah farms Ltd.

Table 4.20:Descriptive Statistics

N Mean

Std.

Deviation Minimum Maximum

The effect of TQM

on goal attainment.

210 4.5245 .54918 1.67 5.00

100

The effect of TQM on goal attainment.

Observed N Expected N Residual

1.67 2 35.0 -33.0

2.67 2 35.0 -33.0

4.00 70 35.0 35.0

4.33 6 35.0 -29.0

4.67 44 35.0 9.0

5.00 86 35.0 51.0

Total 210

4.21:Test Statistics

The effect of TQM on goal attainment.

Chi-Square 197.886a

Df 5

Asymp. Sig. .000

a. 0 cells (.0%) have expected frequencies less than 5. The

minimum expected cell frequency is 35.0.

Decision rule

101

The decision rule is to accept the alternate hypothesis if the

computed Chi-square value is greater than tabulated Chi-Square value

otherwise reject the null hypothesis.

Decision

Since the Pearson Chi-Square computed Xc2 =197.886 is

greater than Chi-Square table value Xc2=3.84, the alternate hypothesis

is accepted and null hypothesis is rejected. Thus, we conclude that

there is a significant effect of Total Quality Management on

organizational goal attainment at Phinorma poultry industry.

Hypothesis three: There is a significant positive relationship

between TQM and employees’ productivity.

Table 4.22: Correlations

Total Quality

Management Productivity

Total Quality

Management

Pearson Correlation 1 .721**

Sig. (2-tailed) .000

N 210 210

Productivity Pearson Correlation .721**

1

Sig. (2-tailed) .000

N 210 210

102

Table 4.22: Correlations

Total Quality

Management Productivity

Total Quality

Management

Pearson Correlation 1 .721**

Sig. (2-tailed) .000

N 210 210

Productivity Pearson Correlation .721**

1

Sig. (2-tailed) .000

N 210 210

**. Correlation is significant at the 0.01 level (2-tailed).

Table 4.22 shows the correlation co-efficient significance values of number

of cases for the various study. The result in the correlation table shows that

there is a significant relationship between TQM and employees’

productivity (r= 0.721). the correlation coefficient shows strong

relationship between TQM and productivity.

103

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings

Based on the statistical analysis, the following were found:

(1) Total Quality Management reduces cost of operation in

Phinomar Farms Ltd. (The Z-test computed Zc = 3.239 is

greater than Z-test table value Zt=1.96).

(2) There is a significant effect of Total Quality Management on

organizational goal attainment at Phinomar Farms Ltd ( Chi-

Square computed Xc2 =197.886 is greater than Chi-Square table

value Xc2=3.84).

(3) There was a significant positive relationship between Total

Quality Management and Organizational productivity (r =

0.721).

5.2 CONCLUSION

TQM is a comprehensive system approach that works

horizontally across Phinomar Farms Ltd, involving all departments

and employees and extending backward and forward to include both

suppliers and clients/customers.

104

The transformation to a TQM programme depends on the

extent to which institutions successfully implement certain quality

management practices. Increased production, reduced wastes, lower

inventory levels, reduced lead times, higher flexibility and increased

employee satisfaction are among the benefits of a successful TQM

programme. What is critical is a thorough understanding of the

barriers that can impede an effective quality transformation. There is

ample evidence that quality management systems improve

institutional performance if properly implemented. The basic

principles of TQM are intended to achieve continuous organizational

improvement through the participation and commitment of workers

throughout a company. TQM focuses all the resources of an

organization upon meeting the needs of customers (both internal and

external), using statistical tools and techniques to measure results and

aid decision making. Therefore, it is important that the management

of Phinomar Farm Ltd continues to review, periodically, its process of

operation to ensure consistency.

5.3 RECOMMENDATIONS

Based on the findings of this study, the following

recommendations were made:

105

1. To ensure increased benefits of TQM, Phinomar farm’s

management should strike to be customer focused.

2. There should be continuous evaluation and re-evaluation of

process of operation.

3. Phinomar farms should develop a process that incorporates

quality during production, rather than a process that attempts to

achieve quality through inspection after resources have already

been consumed to produce the good or services.

4. There should be increased receptiveness to feedback to

improve on quality.

5. There should be an improved employee’s empowerment and

compensation

6. Fact-based decision making is also advocated.

5.4 SUGGESTIONS FOR FURTHER STUDIES

Given the nature of this study, the following are suggested for

investigation.

(1) The role of TQM in the performance of Nigerian Universities.

(2) An appraisal of the barriers to effective implementation of

TQM principles in the Nigerian environment.

106

BIBLIOGRAPHY

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the 'Beyond' Myth." Journal of Management Studies 34, (5).

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Center for Advanced Engineering Study.

Goetsch, David L., and Stanley D (1995). Implementing Total

Quality. Upper Saddle River, N.J.: Prentice-Hall.

Hall, Robert (1987). Attaining Manufacturing Excellence. Burr

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109

APPENDIX I

Department of Management,

Faculty of Business Administration,

University of Nigeria,

Enugu Campus.

-------------------------------------

-------------------------------------

-------------------------------------

Dear Respondents,

RE: THE ROLE TOTAL QUALITY MANAGEMENT IN THE

PERFORMANCE OF POULTRY INDUSTRY: A STUDY OF

PHINOMAR FARMS NIG. LTD.

I write to solicit your assistance in filling this questionnaire

designed to address the above stated topic. The research is carried out

in partial fulfillment of the requirement for the award of a Master of

Business Administration (MBA) in management.

The response will be treated in confidence and shall be used for

the stated purposes only.

Yours faithfully,

Nwonye Chibueze.

(Researcher)

110

QUESTIONNAIRE

SECTION A: BIOGRAPHICAL INFORMATION

Please tick accordingly [√]

1. Sex:

a. Male [ ]

b. Female [ ]

2. Marital Status

a. Single [ ]

b. Married [ ]

c. Widowed [ ]

d. Divorced [ ]

3. Education Qualification

a. WASC/GCE [ ]

b. HND/NCE [ ]

c. HND/B.Sc [ ]

d. M.Sc/MBA [ ]

e. P.hD [ ]

4. Year of Experience

a. 0-3 years [ ]

b. 3- 5 years [ ]

c. 6 – 10 years [ ]

d. 11years and above [ ]

5. Age of Respondents

a. 20 – 30 year [ ]

b. 31 – 40 years [ ]

c. 41 - 50 years [ ]

111

SECTION B

Note: Tick (√) in the option that matches your opinion.

QUESTIONNAIRE

Str

on

gly

Ag

ree

Ag

ree

Neu

tra

l

Dis

ag

ree

Str

on

gly

dis

ag

ree

6. Implementation of TQM principles

reduces scraps

7. TQM reduces frequency of materials

purchase.

8. Quality management reduces unit cost

of items.

9. Quality management reduces idle time.

10 TQM brings about increment in

number of good produced.

11 Quality management brings about

expansion of customer base.

12 QM improves employees’ morale.

13. TQM improves on the work process.

14. TQM bring about increment in

employees’

15. TQM help to improve the quality of

products.

16. Quality management determines total

organization output

112

DECLARATION

I, Nwonye Chibueze, a student in the Department of Management

with Registration No. PG/MBA/11/60374, state that the work

embodied in the project is original and has not been submitted in any

other University.

_____________________________

Nwonye Chibueze

PG/M.Sc/11/60374

113

APPROVAL

The dissertation titled The Role of Total Quality Management

(TQM) in the Performance of Poultry Farms in Enugu State, Nigeria

has been approved by the Department of Management, Faculty of

Business Administration University of Nigeria, Enugu Campus,

Enugu for the award of Master’s of Science (M.Sc) in management.

…………………………… ………………………

Dr Agbaeze, E.K Date

(Supervisor)

…………………………. …………..……………

Dr. O.C. Ugbam Date

Head of Department

114

DEDICATION

This work is dedicated to Chimeremma, my little princess.

115

ACKNOWLEDGEMENTS

I wish to first of all acknowledge my parents, Late Igwe and

Lolo I.O.M Nwonye for giving me birth. My gratitude also goes to

the love of my life, Uche who encouraged me to complete this

program.

This work would not have been finished without the super

guidance of my Project Supervisor, Dr. E.K. Agbaeze, I am indebted

to you.

I also appreciate all the lecturers in the Department of

Management in particular and Faculty of Business Administration in

general. The immediate past Dean of the Faculty, Professor U.J.F.

Ewurum, Dean of the Faculty, Dr. Geraldine Ugwuona, Prof. Johnny

Eluka, Dr. C.A Ezigbo, Dr. I.N. Mba, Dr. Ann Agbo, Dr. V.A

Onodugo and Dr. B.I. Chukwu. I am indeed very grateful to all.

I also thank all the non-academic staff in the Department for

their co-operation and understanding shown through out the duration

of the programme.

To my Lord and personal Saviour, Jesus Christ, all Glory and

Praise to You my God. Lord lam in awe of you.

116

TABLE OF CONTENTS

DECLARATION . . . . . . . ii

APPROVAL . . . . . . . iii

DEDICATION . . . . . . . iv

ACKNOWLEDGEMENTS . . . . . v

TABLE OF CONTENTS . . . . . . vi

LIST OF TABLES . . . . . . . x

LIST OF FIGURES . . . . . . xii

ABSTRACT . . . . . . . xiii

CHAPTER ONE

INTRODUCTION

1.1 Background of the Study . . . . . 1

1.2 Statement of the Problem . . . . 8

1.3 Objectives of the Study . . . . . 10

1.4 Research Questions . . . . . 10

1.5 Research Hypotheses . . . . . 11

1.6 Significance of the Study . . . . 11

1.7 Scope of the Study . . . . . 12

1.8 Limitation of the Study . . . . . 12

1.9 Historical Background of the Organizations

Under Study . . . . . . 13

117

CHAPTER TWO

REVIEW OF THE RELATED LITERATURE

2.1 Historical Background . . . . . 22

2.2 Definition of Total Quality Management . . 24

2.2.1 Total Employee Involvement . . . . 33

2.2.2 Continuous Improvement . . . . . 33

2.2.3 Teamwork . . . . . . . 34

2.2.4 Customer Satisfaction . . . . . 35

2.3 Development of TQM . . . . . 36

2.4 Conceptual Framework of TQM . . .. . 37

2.5 Evolution of Total Quality Management . . 41

2.6 Pioneers of Total Quality Management . . . 43

2.7 Principles of TQM . . . . . . 43

2.7.1 Objectives, Goals and Significance of

Total Quality Management . . . . 46

2.8 Effective Approaches to Application of TQM . 48

2.9 Key Steps in the TQM Process . . . . 50

2.10 The Characteristics of TQM . . . . 51

2.11 Approaches for Successful Application of TQM . 51

2.12 Benefits, Shortcomings and Cost of TQM . . 53

2.12.1 Benefits of TQM . . . . . . 53

2.12.2 Short-Coming of TQM . . . . . 54

118

2.12.3 The Cost of TQM . . . . . 55

2.13 Features of Total Quality Management 57

2.14 Sectorial Applicability of Total Quality

Management . . . . . . 58

2.14 The Core Values of TQM . . . . . 61

2.15 Advantages of Total Quality Management

(TQM) . . . . . . . 66

2.16 Reasons Why Some Management Would

Oppose TQM . . . . . . 68

2.17 The Quality intervention process . . . 71

2.18 TQM Focus/Drivers . . . . . 74

2.19 Tools of Total Quality Management (TQM) . . 77

2.21 The Deming Principles for total Quality

Management . . . . . . 79

CHAPTER THREE

RESEARCH METHODOLOGY

3.1 Research Design . . . . . . 81

3.2 Sources of Data . . . . . . 81

3.2.1 Primary Sources . . . . . . 81

3.2.2 Secondary Sources . . . . . 82

119

3.3 Instruments for Data Collection . . . 82

3.4 Population of the Study . . . . . 82

3.5 Sample Size Determination . . . . 82

3.6 Reliability and Validity of Research Instrument . 83

3.6.1 Reliability of Research Instrument . . . 83

3.6.2 Validity of measurement . . . . . 85

3.7 Tools for Data Analysis . . . . . 86

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

4.1 Presentation of Data . . . . . 87

4.2 Questionnaire Analysis . . . . . 90

4.3 Test of Hypotheses . . . . . 97

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMENDATIONS

5.1 Summary of Findings . . . . . 103

5.2 Conclusion . . . . . . . 103

5.3 Recommendations . . . . . 104

5.4 Suggestions for Further Studies . . . 105

BIBLIOGRAPHY . . . . . . . 106

APPENDIX . . . . . . . 109

120

LIST OF TABLES

Table 4.1: Questionnaire Distribution . . . . 87

Table 4.2 Sex Distribution . . . . . 87

Table 4.3: Marital status of Respondents . . . 88

Table 4.4: Educational Qualification . . . . 88

Table 4.5: Years of Experience . . . . . 89

Table 4.6: Respondent’s Age . . . . . 89

Table 4.7: Implementation of TQM and reduction

of scraps . . . . . . 90

Table 4.8: TQM and reduction in the frequency

of materials purchase . . . . 91

Table 4.9: Quality management and reduction of unit

cost of items . . . . . 91

Table 4.10: Quality management and reduction in

idle time . . . . . . 92

Table 4.11: Quality management and increment in

number of goods produced . . . 93

Table 4.12: Quality management and expansion of

customer base . . . . . 93

Table 4.13: TQM and improvement of employees’

morale . . . . . . 94

121

Table 4.14: TQM and improvement in the work

process . . . . . . 95

Table 4.15: TQM and increment in employees’

commitment . . . . . 95

Table 4.16: TQM and improvement in the quality of

products . . . . . . 96

Table 4.17: TQM and improvement of total organizational

output . . . . . . 97

Table 4.19: One-Sample Kolmogorov-Smirnov Test . 98

Table 4.20: Descriptive Statistics . . . . 99

4.21:Test Statistics . . . . . . 100

Table 4.22: Correlations . . . . . . 102

122

LIST OF FIGURES

Fig. 2.1: Stages in the TQM process . . . . 50

Figure 2.2: The Pervasive Role of Quality . . . 54

123

ABSTRACT

In recent times management experts have been advocating Total

Quality Management as a management principle that must be adopted

by every organisation that intends to survive today’s hyper

competitive business environment. Total quality management (TQM)

has been described as a set of tools and techniques designed to

improve a firm’s effectiveness and efficiency. TQM is based on the

philosophy of meeting and exceeding customer expectations through

a systematic process that involves staff at all levels assuming

responsibility for continuous improvement in the firm’s daily

operational activities. It is therefore a process that involves everyone

in the organization working towards product improvements to meet

the continually changing demands of the customer. This study

therefore is an investigation into the role of TQM in the performance

of the poultry industry in Enugu State using Phinomar Farms Ltd as a

case study. This study was carried out using structured questionnaires

that was applied on 213 staff of the organisation, having determined

the sample size using the Yaro Yamane technique. In this study,

percentages, Z-test, chi-square and Pearson’s correlation were

employed as statistical tools for data analysis. The results of these

analyses indicate that TQM reduces operational costs, facilitates the

attainment of organisational objectives and improves productivity.