Impact Of Total Quality Management On Production Cost Of An Organization (A Case Study of Nigeria Bottling Company Plc, Kaduna)
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Impact Of Total Quality
Management On Production Cost Of An Organization
(A Case Study of Nigeria
Bottling Company Plc, Kaduna)
Abstract
This
research seek to identify the impact of total quality management on production
cost of an organization in Nigeria bottling company Plc, Kaduna Plant as a case
study. Background of the study create awareness on total quality management as
the hub for customers satisfaction quality become a primary source of global
competitive advantages, and lead indicator for improved profitability. The
statement of problem layered more emphasis on poor quality of product and
personnel and the management behaviors towards the concept of Total Quality
Management. The research work also attempted to identify the methods of quality
control, cost of product, cost components that make up production cost and as
Total Quality Management can reduce cost. The researcher went further to review
related literatures on the project topic such as Evaluation and definition of
Total Quality Management. The traditional vs Total Quality Management
approach, as well as quality and product cost. The research methods use in the
collection of data the justification for using the method as well as the
statistical instrument used is established. These is one research hypothesis
for which the questionnaire is drown and designed, administered to sample size
of 25 respondents of the organization in question.
Table
of contents
Title page. . . . . . . . . .
i
Approval. . . . . . . . . . ii
Declaration . . . . . . . . iii
Dedication. .. . . . . . . . . iv
Acknowledgements . . . . . . . v
Abstract . . . . . . . . . vii
CHAPTER ONE: introduction
1.1 Background
of the study . 1
1.2 statement
of problem 2
1.3 Objective
of the study 3
1.4 significance
of the study 4
1.5 Scope
of the study 4
1.6 Research
Questions 5
1.7 Definitions
of the Terms 5
CHAPER T WO: literature review
2.1 Evaluation
of Total Quality Management 7
2.2 Conceptual
Framework Quality 9
2.3 Cost of
Quality 13
2.4 Quality
Determinants 16
2.5 Dimensions
of Quality 19
2.6 Responsibility
for Quality 20
2.7 Quality
Control 25
2.8 inspection 27
2.9 Cost of
Quality Product 32
CHAPET THREE: Research Methodology
3.1 Area of
the Study 39
3.2 Research
Design 39
3.3 Population of the
Study 39
3.4 Sampling
and sampling Techniques 40
3.5 Instrumentation
for Data Collection 40
3.6 Administration
of the Instruments 40
3.7 Techniques
for Data Analysis 41
CHAPTER FOUR: Data Presentation and Analysis
4.1 Data
Presentation 42
CHAPTER FIVE: summary, conclusion, and
Recommendations
5.1 Summaries of
Procedures 47
5.2 Discussion Findings 48
5.3 Implication of Findings 49
5.4 Conclusions 50
5.5 Recommendations 51
5.6 Suggestion for further Study 53
5.6 Bibliography 54
Appendix
CHAPTER i: Introduction
1.1 Background of the Study
Total
quality management is known as the primary role of management to lead an
organization in its daily operations and maintains it as a viable entity into
the future. Quality has become an important factor in these. Although
ostensibly always. an objective of business is customer in customer terms,
because a specific goal in the late 1980’s provide higher quality are
recognized as a key element for success, most large operations taking that path
have document the success, first they survived the competitors that has set the
higher quality levels and now have regained some of their former market. Total Quality Management is perhaps the
leading management approach that compares employed to improve their product and
services, quality with the aim of improving typical measures of business performance. (e.g profit, increased market share reduced
cost). The Japans have capture more than
30% of the American and electronic markets.
It was achieved by offering higher value products. In response to the boom in the competitor
market, many American firms have implemented require the integration of Human
resources, production engineering store and purchasing marketing, distribution,
and planning is a continuous improvement process; it is much wider than
the traditional quality view of incoming inspection and process control. It means that the entire organization is
working as a team including the cooperate top managers and each an every
employee, it is on innovative way of thinking that affect the culture, the
strategy and technology of company. The
organization needs a holistic approach so that every department in the
organization should come together for cost reduction and improve products,
approach will reduce cost and quality will be achieve for competitive
advantage.
1.2Statement of the Problem
This
Empirical research has identified some general problems that are associated
with Total Quality Management which are listed below. One of the problems is
the failure of organization to understand the importance of material quality
control and often ignore its application. This has led to the receipt of low
quality and substandard lots of materials into the in process, culminating in
poor quality out put and increased cost for these organizations.
The
problem of organization over-relying on suppliers ability as a result of trust
thereby falling to check and/or monitor the incoming materials for any possible
defect or deviations from specification.
Others
are manpower related problems were also observed to be a major barrier for
achieving a Total quality management program. Most organizations lack the
service of specialists to handle materials quality control trained/retrained or
lack of proper supervision due to top management neglect.
Facilitates
related problem in organizations, there are inaccuracies in machineries, tools,
fixtures, measuring instruments etc.
that are required in managing quality and total quality control process which
can be disastrous for decision making as a result of the unreliable outcomes.
The existence of these problems brought about the head for the research work so
as to proffer solutions that are workable at the end.
1.3 Objective
of the Study
The
primary objective of the study is to identify the impact of quality management
on production cost of an organization.
i)
To identify the challenges faced by
manager in implementing Total Quality Management
ii)
To identify the major cost component of Total
Quality Management
iii)
To identify the contribution of Total
Quality Management on material and cost reduction
iv)
To identify the method the Nigeria
Bottling Company used in storage of raw material
v)
To identify the attributes of quality
products
1.4 Significance
of the study
The
study will be of immense benefit to the researcher, the organization under
study in achieving its goal and objective, other researcher, and the general
public. It is sincerely hoped that the result of the study will be applied in
areas that need to be improved in the organization under study. The study will
also widen the horizon of the research on the topic under study and it will
serve as reference to the researchers.
Finally,
the research is a pre-requisite for the award of Higher National Diploma (HND)
in Purchasing and Supply of Kaduna Polytechnic.
1.5 Scope
of the Study
The
research is limited to the Nigerian Bottling Company Kakuri Kaduna Plant, but
the research will look at the entire concept of Total Quality Management as
well as the major cost component of production and finally the application of Total
Quality Management on material cost of production and finished goods cost.
1.6 Research
Questions
i)
What are the challenges faced by manager
in implementing total quality management?
ii)
What are the major cost components of
quality management?
iii)
What are the contribution of quality
management on material and cost reduction?
iv)
What method does the organization used
in storage of raw materials?
v)
What are the attributes of quality
products?
1.7 Definition of Terms
Quality: fitness
for purpose at lowest cost
Management:
the process of planning organizing coordinating directing and controlling.
Effectiveness:
the ability to bring about the intended result in respective of cost
Quality
management: this is the overall management function
that determines and implements quality policy.
Specification:
this is the detailed description of an item.
Scrap:
this is defect, materials or staffs that cannot be repaired or used
Total
Quality management: (TQM) this is a management approach to
an organization centered on quality based on participation of all its members
of the organization and society.
Inspection:
To check incoming materials with specification so as to accept or reject based
on evaluation.
Performance:
performance means doing a job as per specification with efficient use of
resources.
Reliability:
the ability to yield an acceptable outcome consistently.
Materials:
materials are resource used directly or indirectly to produce or incorporate
finish goods.
Purchasing:
the management function of buying the
right materials from the right source, at the right quality, at the right
price, at the right quantity and purpose as economically as possible.
Standard:
A predetermined and accepted way of doing things or the accepted state of
thins.
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