ABSTRACT

Quality is an important concern for management for three basic reasons: competition, productivity and costs. Once an organization makes a decision to enhance the quality of its products and services, there are a number of areas to be addressed. This study examined how total quality management can be advanced as a tool to improving the productivity of the manufacturing industry Champion Brewery Plc was selected for the study.  To achieve this objective, extensive literature review was carried out and primary data was gathered using a likert scale questionnaire format administered to fifty-six management and staff of Champion Brewery Plc.  Hypotheses were postulated to test the significance of the research problem. Data analysis was done using Pearson Moment Product correlation coefficient which provide the alternate hypothesis significant in the hypothesis tested.  Findings show that total quality management has been implemented in the manufacturing industry like champion brewery, but the implementation is partial, that is, it is not operational in all the departments in champion brewery and the employees do not fully understand the principles and application of total quality management.  Further, it shows that total quality management can be very instrumental in improving the productivity of the manufacturing industries and ensuring that customers satisfaction is guaranteed in conclusion, the study recommended among others a full and immediate installation of the principles of total quality management formation of the quality circles and the creation of a department that ensures that quality is upheld as a standard and implemented in all departments, division and section of Champion Breweries Plc.

CHAPTER ONE

BACKGROUND OF THE STUDY

1.1    INTRODUCTION

Quality is an important concern for management for three basic reasons: competition, productivity and cost. Competition quality has become one of the most competitive points in business today. Ford, Chrysler and General Motors each argues, for example, that its cars are higher in quality than the cars of the others. IBM, Apple and DEC stress the quality of their products as well. Indeed, it seems that virtually every American business has adopted quality as a major point of competition. Thus, a business that fails to keep pace may find itself falling behind not only foreign competition but also other American firms.

          Productivity managers have come to recognize that quality and productivity are related. In days gone by many thought that productivity and quality were inversely related – that is, management could increase output (productivity) only by decreasing quality. Managers today have learned the hard way that such an assumption is virtually always wrong. If a firm installs a meaningful quality enhancement program, three things are likely to result, first, the number of defects is likely to decrease, causing fewer returns from customers. Second, because the number of defects goes down, resources (materials and people) dedicated to reworking flawed output will be decreased. Third, because making operative employees responsible for quality reduces the need for quality inspectors, the organization is able to produce more units with fewer resources – with a positive effect on productivity.

          Cost improved quality lowers cost. Poor quality results in higher returns from customers, high warranty costs, and lawsuits from customers injured by faulty products. Future sales are lost because of disgruntled customers. An organization with quality problems often has to increase inspection expenses just to catch defective products.

          A modern Nigeria cannot exist without the manufacturing and service industry. In the recent past, this industry has experienced tremendous growth and undergone great changes. The discreet service used at one time or another includes routine manufacturing transaction.  These products are manufactured are from distinct sectors of the industry.

The new competition brought about success for some and spectacular failures for others.  Eventually, manufacturing industry came to realize that the only and best way to differentiate themselves from others was personal customer service delivery.

Customers now perceive that they have the right to demand good services, since they pay for it.  Similarly, due to the recent recession experienced in the country, few manufacturers listen constructively to complaints or even encourage staff to make suggestions as to how to improve production of some products to customers.  However, until recently many manufacturing industries workers belief that all the lessons of quality management only have practical application in the manufacturing industry. It is further disappointing that some of the few industries that claim to focus on quality management are sincerely not implementing it as they fall short of the greater objective of total quality management, and forgetting that total quality management does not happen by accident but a managed systematic process which involve people, system and supporting tools and techniques.

This research is designed to ascertain the relationship between total quality management and productivity in Champion Breweries Nigeria Plc.

1.2    STATEMENT OF THE PROBLEM

The manufacturing industry is a very essential industry to the growth of the Nigerian economy and all business operations rely on it to function effectively. Owing to the vital role the industry plays in the nation’s economy, the recent problems experienced in the industry creates room for fear and worry, as some of the manufacturing industries were close to liquidation as signaled by the bailout strategy that was adopted by the central bank to reposition them on the path of productivity.  The manufacturing stated that one of the major problems that affected the productivity of the failing manufacturing industries was the problem of poor quality management. The ineffective quality system was evident in the weak management of the industries that resulted in poor assets management, poor corporate governance and inadequate control system, high rate of employee turnover and gross undercapitalization of the manufacturing industries.  The problems he stated have been a long lingering issue that have defiled all attempt to resolve them by the industry.

Worrisome as it may seem, total quality management tools have been advanced as one of the tool for salvaging these challenges, and it is for this reason that this study is designed to discover if total quality management tool is adopted in the industry, to what extent is their application and its impact in achieving the desired level of productivity.

1.3    OBJECTIVE OF THE STUDY

1.      To investigate if total quality management have been implemented in the manufacturing industry Champion Breweries and to what extent.

2.      To examine the performance of Champion Breweries generally and to see the areas that the use of total quality management will help improve their productivity.

3.      To investigate how total quality management will be instrumental to effective service delivery in Champion Breweries.

4.      To examine the impact of total quality management on customer satisfaction.

1.4    RESEARCH QUESTION

1.      Have total quality management been implemented in the Champion Breweries.

2.      What impact will the implementation have on the industry’s productivity?

3.      Is total quality management fully or partly implemented in

4.      What impact will the implementation have on the industry’s productivity?

1.5    RESEARCH HYPOTHESES

HO:    Total quality management have not been implemented in manufacturing industry.

Ho:    Total quality management has not made any significant impact on the overall productivity of the champion breweries industry.

HO:    There is no significant relationship between the implementation of total quality management and customer’s satisfaction.

HO:    Total quality management has not made any significant impact on the following services of the manufacturing industry champion breweries., the long queue, response to customer’s enquires and complaints; dispatch of customers statements and advice.

1.6    SIGNIFICANCE OF THE STUDY

In light of the frequent problems that befalls the manufacturing industry in Nigeria, this research work is set to provide a necessary guide for policy makers to enable them monitor, control and effectively make policies that will positive on the industry and prevent it from collapse.

It would enable management of organizations to create an environment in which quality of product and service is the vision and concern of not only the management but also their staff.  Customers, the public and private sector, small and medium scale enterprises and employees will also benefit from the findings of this research, as the findings will enable them know their right, how to demand for it and how the employees can be satisfied in their place of work.

The manufacturing industry/champion breweries sector and stakeholders in the industry will also benefit from this research, as the research findings and recommendations if applied will present a strong and reliable financial institution, which will reflect in their profits and general performance of the champion breweries in executing capital projects.

Further, the government will be relieved of frequently having to bail out some of the manufacturing industries from liquidation and the funds could be used to carry out other national developmental project for the benefit of the nation.

Finally, this research work will serve to add to the existing body of intellectual and empirical knowledge and can be used as source of bibliographical references in future.  

1.7    SCOPE OF THE STUDY

Total means that everyone in the organization that is involved in the finish product or service to the customer. The researcher is only interested in the impact of total quality management on the efficiency, effectiveness and productivity of the champion breweries industry in relation to customer services relationship and marketing of the company’s products.

1.8    LIMITATION OF THE STUDY

          The study was limited to Champion Breweries Plc in Uyo.

The following limitations were encountered in the course of this study:

i.             Financial constraints, the researcher was not able to visit all the departments as production/packaging department was out of bound to confirm their opinion of all the departments used for this study.

ii.            Ample time was not given as the researcher had to contend with lectures from other courses during the period of this study. A research of this kind demands adequate time for the production of an exhaustive result by the researcher.

iii.           Access to information and data within champion breweries, questionnaires will be administered to only relevant management staff, senior staff and junior staff of the champion breweries

1.9    DEFINITION OF TERMS

COQ:                   Cost of Quality – Cost of activities additional to the basic work process used in business.

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