Business Admin. and Management | THE EFFECT OF TOTAL QUALITY MANAGEMENT IN ENHANCING THE PROFITABILITY OF BUSINES...

THE EFFECT OF TOTAL QUALITY MANAGEMENT IN ENHANCING THE PROFITABILITY OF BUSINESS ORGANIZATION

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CHAPTER ONE

1.1      BACKGROUND OF STUDY

Total quality management can be defined as a strategy for improving business performance through the commitment of all employees to fully satisfying agreed customer requirements at the lowest cost through the continuous improvement of products and services, business processes and the people involved.

Deleforge (2000) also pointed out that total quality management is concerned with the management of all aspects of quality services provided to the customer. This includes quality of goods delivery price of services, quality of promotion and merchandising. The importance quality to an organization cannot be overemphasized because of it attribute to the fact that quality determines to a large extent, productivity, customer satisfaction, profit and other key performance element to an organization.

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

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

1.2    Statement of the Problems

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

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

The problems or challenges associated to quality for a firms to continues to be complex one. The question of these hastens firm fared in regard to quality is almost answer immediately by assessment of the revealing each firms position in the market place that begin to come to tire is how these firm see quality, has quality been properly defined as expressed in their processes and output? In what aspects are the firms internal processes adding the achievement of quality and which are the area in which they are lacking? What is the extent of their measuring to customers, requirements and expectation?    The ever-increasing globalization makes organizations more complex and competitive to gain more market shares to keep up their business growth and development. For this, cultural changing is essential for successful enhancement of implemented TQM practices in this rapid changing global business.

         Basically, the way to establishing excellence in innovative companies (as the highest form of quality achieved in business) is characterized by the following attributes: the tendency to action, satisfaction of customers, autonomy and entrepreneurship, achievement of desired level of productivity, relying human resources, active involvement (in solving problems) with the encouragement of key values; direct participation, the application of simple organizational forms, implementation lean-thinking approach in staff engagement, and finally, developing the ability to resolve many contradictions in business (Nikolic and Nastasic, 2010).

         The concept of organizational culture is fast gaining attention in recent times to meet the environmental changes that plagues manufacturing firms in competing in the global market. The important questions that need to be answered are: how does team work orientation lead to continuous improvement of products and services of organization, especially manufacturing firms? To what extent does innovation (innovative ideas) help a firm in gaining competitive advantage, or how do reward systems increase the productivity of firms? These unanswered questions have left a huge gap in literature concerning organizational culture in manufacturing firms.

         Dynamism in business environment requires organizations to adopt a result oriented management system to achieve a sustainable competitive advantage in the market place. This calls for the deployment of all the relevant strategy that would lead to proper implementation of TQM practices in Ashaka cement LTD. This study is aimed to ascertain if there is any relationship between the variables that make up organizational culture and what firms can do in order to achieve the business goals.

1.3        Objectives of the study

The objectives are as follows:

i)              To identify the need for total quality management in enhancing the profitability of Ashaka cement LTD.

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

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

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

1.4        Significance of the study

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

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

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

1.5        Research Questions

i)              What are the needs for total quality management in Ashaka cement LTD?

ii)            What are the extents to which total quality can be applied in Ashaka cement LTD?

iii)          How can total quality management control reduce cost of production and service in Ashaka cement LTD?

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

1.6        Scope of the study

The scope of the study is concerned about the impact of total quality management on corporate productivity in Ashaka cement LTD, which is limited to what is happening in the Ashaka cement LTD., Gombe State.

1.7        Limitation of the study

In carrying out this research, the researcher faced some challenges such as: The time constraint, being the most serious and precious assets, coupled with the fact that it waits for no one, the researcher had no time owning to the fact that there are other numerous task and obligations to meet.

Another problem faced by the researcher is finance. The work was limited due to lack of enough money that will have enable the researcher do a more thorough job.

Another problem faced by the researcher is getting attention of the people the researcher intended to sample.

1.8        Definition of terms

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

Total quality: this is performance superiority in delaying customers.

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

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

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

Quality control and assurance: this has the primary concern that all product and services are offered and given appropriate quality standards.

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