LITERATURE REVIEW OF TOTAL QUALITY MANAGEMENT AS A CORPORATE STRATEGY FOR ORGANIZATIONAL GROWTH

CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1       INTRODUCTIONS
Change is the only constant thing in life, therefore, the environment in which organizations operate is dynamic and such environmental dynamic make organizations evolve changes in order to survive, change another management philosophy of adaptation is also part of organization strategy. Managers must therefore strategize their environment for opportunities to stay afloat.



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Corporate strategies are more often than not worked out to meet the challenges that beset organization. Always devising strategies that will give organizations differential edge is necessary. The definition and scope of corporate strategy is being revised to the changing nature of corporate competitiveness, even as the issue of the discussions on strategy and competitiveness (Belohlau, 2002) there is, however, no gainsaying  the fact that quality revolution has long been embraced in the manufacturing and production companies, but the reverse is the case in the service companies. Reichheld, and Sasser(2003) asserted that the quality  revolution is just coming  into services, nothing that in recent years, despite their good intentions, few service company executives have been able to follow through in their commitment to satisfy customers.

According to them, while the manufactures begin in the 1980’s to unravel the cost implications of scrap keeps and rework and farmed adopted “quality” as the most profitable way to run a business, services companies soon realized their own kind of scrap head customers who will come back. Discovering that this too has a cost, many service companies now strive for “zero defections” keeping every customer in the company profitable serve. However, an operational style has been strategized by business managers. The total  quality management (TQM) strategy  which is no more than “Engineering” out from the start, the prospects or possibilities of disharmonies  of internal conflicts and waste and tackled, thus, creating  a product process that runs clean and smoothly. The first thing to get right in the service industry is the human capital, the right people, the right management.

2.2       CONCEPTUAL FRAMEWORK OF THE STUDY
The manufacturing sectors have defined total quality management in many ways.
According to Stevenson and William (1936), define total quality management as the ability of a product or service to consistently meet or exceed customer consistent expectation. They also defined total quality management (TQM) as a philosophy about quality that is intended to involve every on in an organization in quest for quality, with customer satisfaction as the driving force.
He described quality management in terms of a trilogy that consist of quality planning quality control and quality improvement. According to Juran (1986), quality planning is necessary to establish processes capable of meeting quality standards, that quality control is necessary in order to know when corrective action is needed and that quality improvement will help to find better ways of doing  things.

The essence of Juran’s massage is the commitment of management to continuous improvement.

According to Solanke (1996), total quality  management  is meeting customer’s requirement,  requirement that have been discussed and agreed  between the  customer and the supplier. It could be supplier of goods or supplier or services. She also defined total quality management as practicing a philosophy of prevention rather than  correction.
According to Iyayi (1994), defines total quality management as both a route to philosophy of excellence. He said that excellence in an organization means providing products and services that have good qualities to a high degree.

According to Arene (1995), total quality management is a comprehensive effort involving  everyone in an organization to meet customers’ need and continuously  improving product and services.
According to Gath (1996), defines total  quality  as a strategic commitment by top management  to change its whole approach  to business to make quality a guiding factor in everything  it does, while Deiming (2000) argues that quality should be aimed at the needs to the customer, present and future.
Feigenbaum defines quality as a tool composite products and service characteristics of marketing, engineering manufacturer and maintenance through which the product and service in use will meet expectation of the customer.

2.3       HISTORICAL BACKGROUND OF THE STUDY
Kia auto Nigeria ltd was incorporated in 1977 as a private limited liability company. It was established in pursuant to a joint venture agreement between the Federal Government and the Diamler-Benz AG of Germany carries on the business of manufacturing, assembly, importation and sale of CKD sets fore Mercedes Benz commercial vehicles. Agricultural  tractors and cars as well as spare parts.

These companies started production in early  1980’s with two basic model-IGN and in first year the company produced a total  of 795 vehicles, at present, the models of trucks produced are MEL 711, L1418, MB308 sprinter van and actrs 20315, while thee model of buses are MBO 140, MBO 800, MBO 141SN, MED1721 and MBO 400.
Apart from the trucks, buses and cars the company also produce utility vehicles such as MBL 418 troop carrier, MEL 24DB water tanker hire bed trailer, refuse collection disposal vehicle, mobile clinic spatic tank emptier, ambulance etc.
 The company provides spare parts and also engaged in the repair of vehicles. Kia has its corporate headquarter at Lekki express way, Lagos. It has a factor size of 330,000 square meter.

2.4       REVIEWS ACCORDING TO THE OBJECTIVES OF THE STUDY
Total quality management- is an integrated organizational approach in delighting customers both internal and external by meeting their expectations all the time through everyone involved within the organization working on continuous improvement in all products, services and process along with structural  mythology.
2.4.1               THE APPROACHES OF KIA MOTORS TO TOTAL QUALITY MANAGEMENT
Approaches adopted by Kia motors total quality management are as follows:
a.      Quality policy and mission statement has been definite, clear and easily understood by the whole  organization also written and documented and provide rallying point, uniting people towards achievement of total quality management goals has been communicated properly  to one and all in the organization.
b.       Strategic framework for implementing total quality management identified and assessed the degree of commitment, key interests and listed down the long-term changes required as defined in the objective of organization. TQM identified resources available and  developed understanding of organizational systems with quality system specifying system specifying  top management commitment through quality policies, awareness and participative wok environment by emphasis  on customer oriented value, encouraging quality commitment design action plans develop specific about future identified key-issues and constraints on implementation, develop strategies for implementing, identifying, allocating management, execute plans, build momentum for change implement and monitor measure benefits in terms of increased customer satisfaction review and reward.
c.      TQM, have increased productivity and eliminates waste, reduce non-conformance, optimize costs, increases the profitability, enrich potential employee’s life and help the industry top meet its societal obligation (Solanke, 1996).


2.4.2   WHAT ARE THE FACTORS AFFECTING TOTAL QUALITY MANAGEMENT ON THE PRODUCT PERFORMANCE OF KIA MOTOR
1.         Performance measure:  an indicator used to objectively measure the degree to which a company has successfully implemented a TQM system.
2.         Operate quality control- a production strategy designed to ensure product quality that involves one employee or a small group of employees responsible for all aspects of making a product and ensuring product quality.
3. Operating cost- cost associated with the management a dunning of company. Companies seek to increase profit by decreasing         operating cost.
4.         Product quality: the central aspect of a product that is            determined by the consumer and includes attributes such as safety, reliability, serviceability, at tractability of product      quality is constantly changing consumer demands.

2.4.3                 THE DEVELOPMENT PROCESS OF TOTAL QUALITY MANAGEMENT
ISO 9000 is the beginning of journey towards total quality management ISO 9001, 9002 and 9003 tools for total quality management business process re-engineering (BPR) benchmarking, empowerment, mapping and integrating customer expectation into various quality processes. Training for TQM fundamentals of TQM taught from top to bottom and development quality depends on product quality.
Employee’s involvement participation and teamwork (Iyayi, 1994).




2.4.4 WHAT ARE THE EXTENTS TO WHICH KIA MOTORS HAVE ACHIEVED     THEIR TOTAL QUALITY MANAGEMENT OBJECTIVE?  
They (Kia motors) achievements are as follows;
i.                       Customers satisfaction, leadership quality policy, organizational structure, training for total quality management, quality cost suppliers, selection and developing employees involvement quality circles recognition and reward.
ii.                    Product quality productivity
iii.                  They also have achieved effective customer’s feedback and employee feedback mechanism.

TOPIC 1: 
TOTAL QUALITY MANAGEMENT AS A CORPORATE STRATEGY FOR ORGANIZATIONAL GROWTH (A CASE STUDY OF KIA MOTOR MANUFACTURING COMPANY LAGOS)

TOPIC 2:
IMPACT OF  TOTAL QUALITY MANAGEMENT ON PERFORMANCE OF NIGERIA BREWERY INDUSTRY


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REFERENCE
1.      Juran, J.C. (19860, Quality planning and Analysis; New York: McGraw Hill.
2.      Solanke (1996), Total quality management as meeting customer’s requirement.
3.      Iyayi (1994), Vision for Integrated Development: Total quality management another building Block for the Economic future of Nigeria Lagos. Mac dignition  ltd.
4.      Arena (1995), Business Administration quality and Analysis.New York McGraw Hill.
5.      Maga, E. U.L. (2000), A Manual of Corporate planning  and strategic  Business policy major Objective of Total Quality Management in Nigeria.
6.      Belohlaw, J. (2002). Quality, strategy and competitiveness California management review, special issues: T.Q.M., spring, vol 25 No 3.
7.      Derning, W.C. (2000). Out of crisis, New York: MIT Press.
8.      Gathis, G.F. (1996). Total quality management: A total management: Houston: Tris Publishers. 
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