Quality Control As Determinant Factor For Effective And Efficient Production

Project and Seminar Material for Business Administration and Management BAM

Quality Control As Determinant Factor For Effective And Efficient Production


Abstract


Quality control is a way of managing to improve effectiveness, efficiency, cohesiveness, flexibility and competiveness of a business as a whole. Quality control plays a key role in achieving the goal of the organization. This study focuses on the good effect of quality control as determinant factor for effective and efficient production in shongai packaging industry limited, where quality is cultures. The research aims at establishing a comprehensive research model to examine how quality control management practices influence different levels of firm’s performance. The results of this study help us understand the influence that quality control variables and productivity, both individually and together, have on profitability. The findings of this research will help companies management to realize that quality controls should never be taken lightly or delegated to those not capable enough to it effective.


Chapter One


1.0 Introduction

1.1 Background Information to the Study

Quality control is a way of managing to improve effectiveness, efficiency, cohesiveness, flexibility and competiveness of a business as a whole. As defined by British Standard Institution, quality control consist of a “management philosophy and company practices which aim to harness the human and material resources of an organization in the most effective way to achieve the objectives of the organization“
At a time when prices are subject to ever increasing pressure, the competitive struggle moves from price competition towards quality, this becoming a competitive factor in the competitive struggle. To meet the increasing demands of the customers, the organizations focus their effort and management strategies to meet these needs through continuous improvement of their product and processes. We are thus witnessing the enrichment of the quality concept which acquires and integrative dimension throughout the entire organization. The process of procurement and management of material resources play a crucial role in ensuring quality, because the quality of the materials supplied determined the quality of final products.

Quality refers to the degree to which a product or service meets customers specifications and needs. Organizations are now focusing on satisfying customers’ needs. The strategy that many organizations have adopted to achieve customer satisfaction involves emphasizing quality products and services; this approach is unsurprising given and services to its consumers Lai,(2002).

Choosing a quality control based management model may be seen as one the internal factors that may differentiate an organization from another and would therefore produce a higher level of performance.

The quality has developed over the last few decades to become a broad management tool as opposed to its initial role of control, quality control management and productivity have become major concerns of business managers seeking to maintain or increase competitive advantages, at present dynamic manufacturing environment, where quality is a tool to substantially improve productivity and customer satisfaction, based on an extensive study of previous research on quality control were identified as critical for successful quality control management implementation, these values of quality control are functioning as litmus paper to test the current quality status of the firms, these values are top management commitment, everybody’s commitment, continuous improvement, focus on customer, focus on process and using a scientific approach for decision making

The role of the sub-process of issuing the technical specification is to determine the level of quality require for the material resources to be supplied. The quality level can be defined by selections of brands or standards or by issuing the technical documentation, in the case of processes with particular characteristics or that have a large influence on the quality characteristics of the finished product, Baily, (2004)
A quality management system aimed primarily human factors, quality treatment not only from a technical perspective but as a complex approach that mentality changed from managers until the last employee.

Quality control management is the interaction of input including individuals, methods, policies and instruments to achieve high production output. It is a management philosophy with a comprehensive set of tools and approaches to the purposes of implementation.

The quality management for improving suppliers, quality of products and services is supplier quality management. This is exemplified by firm-supplier partnership, product quality as the criterion for supplier selection participation in quality audit Zhang, (2009).

Quality control helps to create a culture of trust, participation, quality –mindedness, zeal of continuous patronization and consistence improvement to customers. Yusuf and Aspinwall, (2000).

Importance of quality control also helps the organization on impact of profitability, and there is also consistence enlargement on the standard of the industry for return on investment. Lakhal, (2006)

Quality control is all about fostering a culture that is continuously the real cost of production.

Saad and Peter (2006) conclude that by implementing quality control management, the companies gained in-depth understanding of the key factors associated with the quality supply chain performance practices in Indian automotive industries.

They also showed that quality control management in supply chain is important to improve key factors such as quality, delivery and lead-time.


1.2 Statement of the Problem

Quality control is the process of inspecting products to ensure that they meet the required quality standards. Those method checks the quality of completed products that faulty. Quality inspectors measures or test every products, simple from each batch, or random samples, as appropriate to produced. The main objective of quality control is to ensure that the business is achieving the standards it sets for itself. In almost every business operation, it is not possible to achieve perfection. For example there will always be some variation in terms of materials used, production skills applied, reliability of finished product etc. With quality control, inspection is intended to prevent faulty products researching the customer. This approach means having specially trained inspectors, rather than every individual being responsible for his or her own work. Furthermore, it is thought that inspectors may be better placed to find widespread problems across an organization.

A major problem is that individuals are not necessarily encouraged to take responsibility for the quality of their own work. Rejected production is expensive for a firm as it has incurred the full costs of production but cannot be sold as the manufacturer does not want its name associated with substandard product. Some rejected product can be re-worked, but in many industries it has to be scrapped –either way reject incur more costs.

A quality control approach can be highly effective at preventing defective products from reaching the customer. However, if defect levels are very high, the company’s profitability will suffer unless steps are taken to tackle the root causes of the failures.

The product confronting this research is to appraise quality control as determinant factor for effective and efficient production.


1.3 Significance / Justification of the Study

This study will take an in-depth look at the part being played by quality control in achieving the goal of the organization. The findings of this study will help companies management to realize that quality control should never be taken lightly or delegated to those not capable enough to it effective. It also helps to create a culture of trust, participation, zeal of continuous, patronization and consistence improvement to customers


1.4 Objectives of the Study

  1. To determine how business performance can be improved through quality control management.
  2. To motivate workers to do things right, at the appropriate time
  3. To improve the profitability of the firm
  4. To increase revenues and reduce costs.

1.5 Scope of the Study

The research focuses on the good effect of quality control as determinant factor for effective and efficient production in shongai packaging industry limited, where quality is cultures.


1.6 Research Questions

  1. How can quality control improve business performances?
  2. How can quality control motivate the workers to do things right at the appropriate time?
  3. How does quality control improve the profits of the firm?
  4. How can quality control increase revenues and reduce costs?

1.7 Research Hypotheses

  1. HO. Quality control does not improve business performance
    Hi. Quality control improves business performance
  2. Ho. Quality control does not motivate the workers to do the right things
    Hi. Quality control motivate the workers to do things right.
  3. Ho. Quality control does not improve profits of the firm
    Hi. Quality control improve profits of the firm.
  4. Ho. Quality control does not increase revenues and reduce costs
    Hi. Quality control increase revenues and reduce costs

1.8 Limitations to the Study

The limitations encountered by the project researchers are emphasized below:

Finance:

Funds had been the major problem encountered by the project researcher, because, raising funds is a pre-requisite task.

Time:

The inevitable progression into the future with the passing of present event into the past is known as Time. Therefore, time had been one of the major limitation encountered by the investigators of the study.

Gathering Information:

Before researcher can conduct a research, information must be gathered accurately


1.9 Operational Definition of Terms

Quality Control:

Include general methods such as accuracy checks on data acquisition and calculations and the use of approved standardized procedures for emission calculations, measurement, estimating uncertainties, achieving information and reporting higher tier, quality controls activities include technical reviews of source categories, activities and emission factors data and methods. It is also a system of routine technical activities, to measure and control the quality of the inventory as it is being developed. The quality control system is design to provide routine and consistent checks to ensure data integrity correctness and completeness, identify and address errors and omissions, document and archive inventory materials and record all quality control activities.

Efficiency:

Is determined by the amount of time and energy , that is, resource that are necessary to obtain certain result in other to meet our daily production quota, we commit a specific machine that uses up energy, make operators and maintenance personnel available, and provide raw materials. For example, if we are able to meet our daily production with less energy and fewer operators, we have operated more efficiently.

Effectiveness:

Is determined by comparing what a process or installation can reduce with what they actually produce; therefore, effectiveness does not tell anything about the efficiency, the amount of resources that have to be committed to obtain that output, if we are successful in manufacturing more good product in the same time period, effectiveness will increase, A valuable discussion could be whether good product should be seen at good product with customer demand to prevent our production.

Productivity:

Describes various measures of the efficiency of production, A productivity measure is express as the ratio of output to input used in a production process, that is output per unit of output. Productivity is computed by dividing average output per period by the total costs incurred or resources (capital, energy, material, personnel) consumed in that period. Productivity is a critical determinant of cost efficiently, Is also a crucial factor in production performance of firms and nations.


Chapter Five


5.0 Conclusion and Recommendations

5.1 Conclusion

The researcher has endeavored in the research work to specify the impact of quality control management on business performance, production performance, organization outputs, and customer satisfaction. This study contribute to the prior quality control management interaction by establishing a comprehensive research models to examine how quality control management practices influence different levels of firm’s performance. Looking at the experience of industries which have implemented quality control management successfully, there is little doubt that the quality control culture if applied correctly, yield significantly better results in all the performance categories of financial results, customer satisfaction, employee satisfaction organization outputs, and production performance. Quality control also provides a long term sustainable competitive advantage in an increasingly competitive global market, Quality control is the harbinger of a paradigm shift from a reactive culture to a proactive one with the overriding emphasis on delighting the customers.

The results help us understanding the influence that Quality control variables and productivity, both individually and together, have on profitability. The effects of profitability and productivity can help an organization respond with an appropriate management strategy. In other words, higher level quality control implementation leads to greater productivity and ultimately, greater profitability quality measurement benchmarking, supplier relations, employee focus and training all contribute strongly to the implementation of quality control. The research also shows that low quality means high cost, and companies without continuous improvement philosophies may not improve their business performance in long-term, since the basement of continuous improvement is quality control management, thinking toward improvement of business performance without quality control management and related change practices are challenging and awkward. Hence, from the paper it has been concluded that quality control practices improve overall performance by;

  1. Reducing operation cost and increasing resource utilization by eliminating problems at their source before they cause big damages in the business process
  2. Motivating workers to do things right first time, and
  3. Increasing employee skills, capability and productivity with providing necessary training and education.

The problems facing quality control management were then described and the researcher summarized that whenever these problems are solved, then and only then would quality control management be able to meet expected role in organization. The researcher then conclude that if part or all the recommendation put forward to the company are carried out, the problems and wrong attitude toward quality control would be things of past.

Finally, the researchers hopes that with effective and efficient implementation of quality control, managers will be able to gain customer’s satisfaction, increase degree of market control and improve financial performance of the company.


5.2 Recommendations

After through study of quality control as determinant factor for effective and efficient production, it is good to give reasonable and useful recommendation based on the findings of the researchers, it is believed that the recommendation would help Shongai Packaging Industry Limited in enlighten them more on the roles played by quality control, others scholars would also find these recommendation very useful

The following recommendations are considered to be suitable for effective implementation of quality control to all industries in Nigeria.

  1. That quality must be reflected not just in company’s product or idea, but in every company’s activities.
  2. That quality should required total staff commitment. Quality can be delivered by companies in which all staff are committed to quality, motivate and train employees to deliver quality.
  3. That there should be continuous improvement of quality. The company should embrace the concept of continuous improvement of everyone in the organization.
  4. That effort should be geared towards improving quality by learning ways to do right things. Doing things right the first time reduces the causes of savage, repair and redesign including losses in customer and client goodwill.
  5. That reward and other incentives for a well performance employee are readily available as these will boost employee’s working moral towards quality output.
  6. That effort should be made to ensure that an effective quality control is regularly done in the appropriate manner more often than their competitor to create quality awareness in consumer’s
  7. Lastly, that effort should be made to ensure that superior and high quality products are provided as this can improve customer’s satisfaction, create competitive advantages and retain further dominance of the market, improvement of customer’s satisfaction can be transformed into better financial performance for the company.

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