CHAPTER ONE
INTRODUCTION
1.1
BACKGROUND OF
THE STUDY
Quality in the
twenty fist century has endured from a narrow focus on control to one that
permeates all aspects of modern business enterprises. Quality is a requirement
to compete successfully in today’s global market. It is providing product and
services to meet the negotiable needs of internal and external customers.
Quality for the customer means meeting customer’s expectations and exceeding
them.
Operationally,
it means reducing errors, waste, rework and scarps. According to George and
James (1996), organization quality means ignoring and satisfying internal and
external customers and cultural. It means being quality driven in all aspects
of one’s job, preventing problems instead of crises management, continuous
process improvement and problem solving everyone being a custodian of his or
her job process and a quality manager. (Wheelen and Hunger, 2004), total quality
management is a business philosophy that embodies the belief that management
process must focus on integrating the idea of consumer drive quality throughout
an organization (Zirund, 1994). It emphasizes continuous improvement of service
delivery and product quality managers improve durability and enhance services
with additional features as the services mature in age. They also strive to
speed up delivery and improve others services, in other to keep their products
competitive.
TOPIC:
TOTAL QUALITY
MANAGEMENT AS A CORPORATE STRATEGY
FOR
ORGANIZATIONAL GROWTH
(A CASE STUDY OF
KIA MOTOR MANUFACTURING COMPANY LAGOS)
The philosophy
underlying total quality management strategy is to see consumers and clients as
the vital key to organizational success. Organization with total quality
management strategy see their business through the eyes of their consumers and
clients and the measure their organizations performance against consumer or
client expectations, not through the organizations expectation. Therefore, a
Nigerian organization that employs total quality management (TQM) strategy must
evaluate its operations through the eyes of its consumers and clients.
Total quality
concept emphasizes the recognition and attention to quality attainment right
from the ideation stage of a production or service. Through the procurement and
processing of raw material into finished or semi -finished goods to the
distribution and consusmptional stage.
According to Obi
(2000), total quality management today conveys a total company wide effort that
includes all employee’s suppliers and customers and seeks continuously to improve
the quality of products and process to meet the needs and expectation of
customers.
This means
therefore, that product or service quality assurance requires more than meeting
consumers or client’s minimum standards. The level of service quality, is the
degree to which a product or service is equal to or greater than consumers or
client expectations (Aluko, M. et al, 2004).
Ironically, while
some professional managers steering the organizations are known for
popularizing the ills of government policies by hiding wider the shade of SAP,
SFEM, CBN certificates as the major obstacles hindering their growth, a few
however, have able to cope with challenges by adapting measures that turns
around their firms one of the strategies adopted by these firms is Total
Quality Management.
For an
organization to be effective, management must take critical study of their
business environment, the customer is said to be king of the market and believe
in quality, therefore, all measures or strategies of satisfying them must be
adopted as they determine what they want, when, how and where they want it. One
tent of this management philosophy, which many organization have adopted as
fundamental business strategy is the concept of continuum improvement, no
organization can afford to be competitive if it does not continuously improve
on its product/services process and people.
It is a company-wide integrated quality
approach in supply customers focused on product and service.
Quality management style process management,
organization structure and organizational culture to achieve the common value
and commitment to the quality.
According to Obi (2000), total quality
management is a total company wide effort that includes all employees,
suppliers and customers, which seems continually processed to meet the needs
and expectations of the customers at the lowest overall cost.
It is a way of
managing of organization such that they guarantee the quality of work received
by the external customer. Total means that the quality applies to all levels,
all employees, all functions, all approaches, all inputs, all outputs, all
suppliers and all customers, quality refers to the ability of a product or
service to consistently meet or exceed customer’s expectations.
According to
Imaga (2000), corporate planning and strategic business policy are the starter
of total quality management concept. Total quality management is both a route
to philosophy of performance. Performance in an organization means providing
product and services that have good quality to a high degree as routed to
excellence.
Total quality
management is a conscious formalized and systemized process of seeking,
achieving and sustaining continuous improvement in the quality of activities
structure, process and hence the results of an organization to the purpose of
satisfying the organization customers and consequently in proving the overall
performance of the organization.
1.2 STATEMENT OF THE PROBLEM
All
scientific and social scientific research is necessitated by a perceived
problem (Nzelibe and Uogu, 1996). As such the quest and desire of the
researcher to study on this topics. “The application to total quality
management as a tool for customer satisfaction (a case study of Kia motor
limited). The necessity of total quality management in Nigeria business
organizations stems from the fact that foreign companies have continued to
dominate the local market in virtually all sections of the economy. Except for
those sector that are under complete government control. The problems
associated with the Nigerian companies in relation to total quality management
are quite enormous and these can be put as follows;
First,
the Nigeria managers have seemingly failed to explore total quality management
for their organization. They have rather gotten struck in the endless pursuit
of what does not work for them any longer, the “blind” pursuit of profit
stability and growth.
Second,
the Nigeria companies are evidently lacking behind in the global international
market competition, thus, they are last losing ground, with some of them going
out business completely.
Third,
they have failed to appreciate that change is necessary and that a change from
the above stated pursuit to the pursuit of a consumer (custom) focus strategy
is a long over due strategy decision that has been tipped to guarantee the
ultimate realization of the organization goals.
Fourth,
due to lack of knowledge of the prospects of total quality management, lack of
adequate finance or engagement of experienced personnel in total quality
management process or lackadaisical attitude on the part of the organization
concerning total quality management, the total quality management impact in the
Nigeria industries which Kia motors
limited industry is part of problematic hence, the weak or poor service
delivery of the industry in the actualization of its desired goals and
objectives.
1.3 OBJECTIVES OF THE STUDY
The
following are the objectives of the study. Basically, the major objective of
this study is the total quality management as a corporate strategy for growth
as a tool for customer satisfaction (a case study of Kia motors limited).
In
the light of the foregoing the study will examine the following critical
issues.
1. To examine the approaches o Kia motors to
total quality management.
2.
To identify the factors affecting total quality management on the product
performance of Kia motors.
3.
To examine the development process of total quality management by Kia motors.
4.
To ascertain the extent to which Kia motors have achieved their total quality
management objectives.
1.4
RESEARCH QUESTIONS
From
the nature of the research study, overview and problem, statement, it is
necessary to ask the following questions.
1.
What
are the approaches to total quality management by Kia motors?
2.
What
are the factors affecting total quality management on product performance of
Kia motors?
3.
What
are the development processes of Kia motor total quality management?
4.
To
what extent has Kia motors achieved their total quality management objectives?
1.5RESEARCH
HYPOTHESES
The hypotheses
formulated for this study are stated.
Ho: There are no
development processes of Kia motors to total quality management.
Hi: There are
development processes of Kia motors to total quality management.
Ho: There are no
factors that affects total quality
management on product performance.
Hi: There are
factors that affects total quality management on product performance.
Ho: There are no
approaches to total quality management by Kia motors
Hi: There are
approaches to total quality management by Kia motors.
Ho: The extent
to which Kia motors achieved its total quality objectives is not high.
Hi: The extent
to which Kia motors achieved its total quality objectives is high.
1.6
SIGNIFICANCE OF
THE STUDY
Strategy
management is currently gaining ground in management thinking at the same time
establishing a successful corporate strategy is central to effective management
in the light of the growing competitive and even turbulent business
environment.
Therefore, the
study attempts to identify the underpinnings of successful management in
Nigeria’s. production sector in relation to quality management strategy.
It investigates the extents to which the
strategy has help Kia motors Nigeria limited, to achieve substantial success.
It is envisaged
that apart from leading to a more wide production system well positioned to
contribute to the growth of the rational economy; mangers in their sectors can
benefit immensely from the research findings.
Furthermore, the
study is crucial as to pinpointing the strength and weakness evident in
implementing the total management strategy among Nigerian firms.
This will enable
firms to possibly fine-tune their total quality management programs towards
better results. It is also hoped that the study will encourage further research
on total quality management practices in Nigeria production industry in
particular and on ways to manage successful in general.
1.7
SCOPE OF THE
STUDY
In pursuance of
this objective of the study which is on
the total quality management strategies used by some companies to gain
competitive edge and enhance their service delivery for survival, particular
attention is paid to only Kia motors Nigeria limited Lagos.
Attempt will be
made to examine the extent to which total quality management has impacted to
customer services at kia motors Nigerian limited Lagos.
1.8
LIMITATIONS OF
THE STUDY
There has not
been any serious meaningful academic endeavor mostly in the field of research,
without some military factors or constraints.
To that extent,
lack of financial resources, inadequate research materials (material death) and
time constraint constituted the most serious limitations of this work.
In addition,
secrecy and confidentiality of information mostly as it relates to the
production industry operations, had effect the course of this research as most
of the officials approached were reluctant and way of disclosing information on
performance (profit margin, turnover). Consumer satisfaction etc.
1.9
DEFINITION OF TERMS
1.
Quality: in this study,
the term quality includes special features, conformity, durability, reliability
and performance of the products. In the case of motors vehicle like truck,
buses, cars and spare parts are considered.
2.
Adulteration: this means
manipulating the physical and chemical contents of something by some other
person other than the producer.
3.
Customers:
it is consists of both internal and external customer is anyone who is
influenced by profess or anyone who uses what is produce.
4.
Product: this refers to
the output of a process which include goods and services.
5.
Competitive
edge:
competitive edge is defined as levity, and advantage over rivals in the quest
for and use of scare resources.
6.
Total quality
management strategy:
these are forms or methods or techniques by which consumer (customer)
satisfaction and improvement can be attached through service deliveries, which
in turn help the implementer achieve their set out goals and objectives.
REFERENCES
George
and Jone(1996), Understanding of Managing Organization Behaviour Addison Wesly
Publishing Company Inc. USA
Obi
(2002), Management Basic Theories and Practices, Oba Cheedal Global Prints Ltd.
Imaga
(2002), AMnual of Corporate Planning and Strategic Business Police Corporate Starter
and Total Quality Management Concept.
Solanke
(1996), Total Quality Management as Meeting Customers Requirement.
Aluko,
Met al (2004). Business Policy and Strategy (3rded) Lagos: Longman
Plc.
Wheelen,
T.L and Hunger, J.D. (2004). Strategies Management and Business Policy (9thed)
UK Person Prentice Hall.
Zikund,
W.G.(1994). Business Research Methods, Orlands: Dryden Press Limited