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IMPACT OF PRODUCT
QUALITY ON SALES VOLUME IN ORGANIZATIONS
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF
THE STUDY
Process industries in general face a continuous drive to
improve their operations. This drive is enforced by global competition,
(environmental) regulation and consumer demands (e.g. Mittal (2001)). A
contribution to the improvement of the operations can be achieved by
implementing an improved control strategy in the process aiming at increased
productivity and flexibility in operations (Trystram and Courtois (2003) and
decrease of product loss, increase of product quality and its regularity. Also
more cost efficient operation is an important motivation for the implementation
of a new control strategy. Currently, in process operations one usually
measures the different process variables, such as temperature, humidity,
pressure and flows, quite frequently. This allows for tight control of these
process variables. The set points are determined off-line in advance and are
usually constant, or, at best, manually adjusted as conditions change out of
the normal. In contrast, quality variables, which are the key indictors for the
performance of the overall process, are measured off-line, if measured at all,
but are usually rather slow. Thus their use in control applications introduces
time delays and periods where the process is not operating on specifications
(Chen et al. (2003).
However, improvement of process operations with respect to
product quality requirements can only be achieved by combining knowledge about
both the product and the process, as e.g. for drying operation is concluded by
Kerkhof (2000). This motivates the development of a control methodology that
can be used to determine the most appropriate control strategy for a specific
process operation. Although its results may be used to improve process
operations in other industries, this thesis focuses on food processing and then
especially on the class of climate controlled operations.
If a product fulfils the customer’s expectations, the
customer will be pleased and consider that the product is of acceptable or even
high quality. If his or her expectations are not fulfilled, the customer will
consider that the product is of low quality. This means that the quality of a
product may be defined as “its ability to fulfil the customer’s needs and
expectations”. Quality needs to be defined firstly in terms of parameters or
characteristics, which vary from product to product. For example, for a
mechanical or electronic product these are performance, reliability, safety and
appearance. For pharmaceutical products, parameters such as physical and
chemical characteristics, medicinal effect, toxicity, taste and shelf life may
be important. For a food product they will include taste, nutritional
properties, texture, shelf life and so on.
Indeed, it is of these above that Crittal-Hope has quality
control department to carryout full responsibility of quality control of the
organization products. Quality means different thing to different people, in a
layman term, quality entails some degree of excellence or superiority.
Excellence or superiority is a relative word whereby what is qualified as
excellence by one may not be excellence to another person. Control takes the
form of meeting standard quality according to specification. The process
through which we establish and meet standard is simply "control” when such
process is established and applied to problems of product quality and product
standardization, then it is called quality control.
1.2 THE STATEMENT OF
THE PROBLEM
The study focused to find out the problems of product quality
in manufacturing firm particular Crittal Hope Limited Kaduna as a case study.
This is important because product quality may be seen as its kinds types
features, property and degree of its goodness or excellence. However lot
problems are faced by most by most manufacturing organization including
Crittal-Hope Kaduna, in their products. these problems includes:- meeting the
required standard, one of the problems is that the products are not meeting required standard,
if a company’s products are satisfy the customers requirement then it is necessary
to establish a standard for the functional and appearance aspect of their
product as well as their durability requirement. This aspect is essentially the
general requirement for setting up a quality control department in order to
ensure that standards are strictly maintained. Problems of meeting products
specification, often times, product fail to meet the specification required by
customers because of assignable causes like; defective materials used, improper
setting of equipment, operational errors, manpower etc. it is not worthy of
mention that it cost the some amount to produce products units problems of
variation in quality of product. That product by mass production method on
machine repeatedly, produces with unconsciously varying quality of the products
because of lack of proper quality control in place. Emphasis should therefore,
be on prevention rather then error detection. Consequently, the attainment of
suitable quality depends upon appropriate human performance or behaviour when
the product is being manufactured. It is a pity however that in the fact of
economic depressions likes our society managers in manufacturing organization
go to any length to compromise standard for their personnel and selfish
interest. To ameliorate this vice, a quality control manager should be
adequately remunerated so that he can perform his functions efficiently.
1.3 THE OBJECTIVES
OF THE STUDY
This study is aimed at examining the impact Product Quality
on organizational productivity. The specific objectives are;
1. To
appraise the role of quality product management techniques in boosting sales
volume
2. To examine
the usefulness of the importance of quality control.
3. To
understand the various production control problems.
4. To understand the impact of pricing on
quality product.
1.4 STATEMENT OF
HYPOTHESIS
The following hypothesis is formulated:
Ho: Product Quality
has no significant impact on organizational productivity.
Hi: Product Quality
has significant impact on organizational productivity
1.5 SIGNIFICANCE OF
THE STUDY
The significance of this study cannot be overemphasized; the
findings will be significant to individual customers of Crittal-Hope as it will
enable the management to improve on their quality control thereby leading to
high profitability.
The study will serves as a reference for further research
work by student and other academicians.
It is in partial fulfillment of the requirement for the award
of Higher National Diploma (HND) in Production and Operations Management and to
expand the understanding of the writer's knowledge regarding research study.
1.6 SCOPE OF THE
STUDY
The study is to examine the impact of product quality on
organizational productivity. The research shall be limited to only.
Crittal-Hope Limited, Kaduna particular the production department of the
organization. However note should be made where necessary with others soft
drinks manufacturing companies or department within the sector.
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