Quality Control As A Means Of Enhancing Productivity In A Production Company

Project and Seminar Material for Business Administration and Management BAM

Quality Control As A Means Of Enhancing Productivity In A Production Company


Abstract


The pervasive influx of low quality product into the market has triggered the turning point for all production companies. Production companies that work towards excellence now inculcate quality in their operations. Given that consumers would always patronize products of companies that guarantee high quality; this research is directed towards determining quality control as a means in Production Company, and how to attain high quality products. This project is divided into five chapters. Chapter one, the introduction gives a descriptive of the effect of quality control, low substandard product, on the market, over the years. Chapter two is the literature review which gives a vivid review of some of the works and writes up of quality control and productivity. Chapter three is the research methodology. It shows the methodology and procedures adopted in collecting data for his work. the primary data used were collected from the cadres of worker in the quality control department of Life Flour Mills Nigeria Ltd. Chapter Four, the data analysis and hypothesis testing. The level of significance used is 0.05 Hypothesis were tested using the chi-square (X2) techniques in order to establish facts relevant to the research. Lastly, chapter five contains the summary of findings, conclusion, implications of findings and recommendations.


Chapter One


Introduction

1.1 Background of the Study

The pressure from globalization has made manufacturing organizations moving towards three major competitive arenas: quality, cost, and responsiveness. Quality is a universal value and has become a global issue. In order to survive and be able to provide customers with good products, manufacturing organizations are required to ensure that their processes are continuously monitored and product quality is improved. Manufacturing organization applies various quality control techniques to improve the quality of the process by reducing its variability. A range of techniques are available to control product or process quality. These include seven statistical process control (SPC) tools, acceptance sampling, quality function deployment (QFD), failure mode and effects analysis (FMEA), six sigma, and design of experiments (DoE). The purpose of this chapter is to present the implementation of quality control in four manufacturing companies and identify the factors that influence the selection of quality control techniques in these companies. The study discusses the reasons for applying quality control techniques, the techniques used, and problems faced by them during the implementation. The paper begins with an overview of quality control and its implementation in organisations. This is followed by the description of four selected companies in this study including their products and company backgrounds. The application of quality control in each company is then presented. The motivating factors for the companies to apply quality control and challenges faced by companies in implementing quality control.Total Quality Management (TQM) is a philosophy and a set of guiding principles that represent the foundation of an excellent organisation and to ensure survival of industrial organisations in the competitive economy of today (Besterfield, 1999). Total Quality Management is a technique that underscores the continuous improvement of product and service quality to satisfy customers and enhance productivity. The emergence of Total Quality Management has been one of the most significant developments in the United State of management practice. The focus on the development of Total Quality Management(TQM ) systems in the U S appears to have begun around 1980 in response to Global competition and stiff rivalry in the U S manufacturing subsector arising from Japan(Easton and Jarrell, 1998). In the last three decades, Total Quality Management has become pervasive and widely accepted in manufacturing, services, government, healthcare and banking subsectors of the developed economies(Fotoponlam and Psomas,2009; Freng et al (2008), Kaplan et al (2010). Al-swadi et al (2012) and Temtime(2003) assert that continuous attention has been given to TQM in the industrialised countries but researchers investigated quality practices in the developing countries in the last ten years. According to Moballeghi and Moghaddam (2011), there is a growing awareness that a well-designed and wellexecuted Total Quality Management process is one of the most effective routes to increase product and service quality, productivity and profitability. However, many organisations are still mired in “quality confusion”. This scenario is a common phenomenon in Nigeria. Quality of products has been identified as one of the critical determinants affecting the performance of most organizations in Nigeria. In response to the poor quality and substandard products in wide circulation alongside the attendant adverse effect on the lives of the citizens and the economy, Nigerian government established the legal and the institutional framework to curb the ugly trend and menace in the country. The Government of Nigeria set up regulatory agencies such as Standard Organisation of Nigeria (SON), National Agency for Food, Drug and Administration Control (NAFDAC), Nigerian Drug and Law Enforcement Agency (NDLEA) and Consumer Protection Council to safeguard the unsuspecting public against unethical practices and improve the quality of goods and services produced by business organizations.

Consequently, the study is to ascertain as to whether product quality improvement policy drives by the government and the adherence of manufacturing firms to TQM practices have impacted on the industrial performance in Nigeria. The art of meeting customers’ specification, which today is termed “quality”. Quality is the symbol of human civilization, and with the progress of human civilization, quality control will play an incomparable role in the business. It can be said that if there is no quality control, there is no economic benefit. In the current world of continually increasing global competition it is imperative for all manufacturing and service organizations to improve the quality of their products. Construction projects are an extremely complex process, involving a wide range. There are plenty of factors affecting the quality of construction, such as design, materials, machinery, construction technology, methods of operation, technical measures, management systems, and so on. Because of the fixed projectlocation, large volume and different location of different projects, the poor control of these factors may produce quality problems. During controlling the whole process of construction, only accord with the required quality standards and user promising requirements, fulfilling quality, time, cost, etc., construction companies could get the best economic effects. Construction companies must adhere to the principle of quality first, and insist on quality standards, with the core of artificial control and prevention, to provide more high quality, safe, suitable, and economic composite products. The production rate of manufacturing organization is linked with many factors, critical among them is higher productivity with minimum defects in their process and products, which is not possible without higher rate of quality. Productivity and quality are two factors to competitive advantage. Without sound productivity no company can think of achieving their goals; higher rate of productivity is rather a main content for improving quality and reducing defects, increasing profitability and decreasing costs. Manufacturing organizations that continuously produce high-quality products and are most productive have lower costs, higher profit margins, and monopolize a larger and larger share of the market. The guidance from recognized productivity and quality leaders provides a general framework for making improvement in quality efforts successful. These are general guidelines, and not rigid rules. Deming (1900-1993) is considered to be the Father of Modern Quality. He advised that to achieve the highest level of performance requires more than a good performance requires more than a good philosophy. The production organization must change its behavior and adopt new ways of doing business. Deming’s approach was amply summed up in his famous 14 points. These lessons have to be creatively adapted to meet the unique situation of each company. Managers must recognize that productivity and quality improvement efforts require major changes in company philosophy, culture, and operating systems. Performance is conceptually defined with respect to its ‘Key Performance Indicators’ (KPI) e.g., lead time, cost, quality, efficiency, effectiveness and dependability, to be a function of independent concepts. This has been explained in this paper as ‘Performance Productivity and Quality’. These changes are difficult and require a major commitment and effort. Production constraints are particularly related to the production processes concerned. The ability to improve productivity and quality has little to do with resources, programs, and techniques, but depends more on attitudes, corporate philosophy, and operating systems of those companies that are interested in these indicators. It is true that government can do a great deal to improve the climate within which enterprise operates, but we cannot wait for government to act to help facilitate productivity improvement.


1.2 Statement of the Problem

The production rate of manufacturing organization is linked with many factors; critical among them is higher productivity with minimum defects in their process and products, which is not possible without higher rate of quality. Productivity and quality are two factors to competitive advantage. Without sound productivity no company can think of achieving their goals; higher rate of productivity is rather a main content for improving quality and reducing defects, increasing profitability and decreasing costs. It is on this premise that the researcher intends to investigate quality control as a means of enhancing productivity in a production company.


1.3 Objective of the Study

The main objective of this study is to ascertain the efficacy of quality control as a means of enhancing productivity in a production company. specific objectives include;

  1. To ascertain the effect of quality control on organizations productivity
  2. To examine the impact of quality control on management efficiency
  3. To examine the relationship between quality control and productivity
  4. To examine the role of total quality management on organizational performance

1.4 Research Hypotheses

The following research hypotheses were formulated to aid the successful completion of the study;

H0: there is no significant relationship between quality control and productivity

H1: there is a significant relationship between quality control and productivity

H0: quality control does not have any significant impact on management efficiency

H2: quality control does have an significant impact on management efficiency


1.5 Significance of the Study

It is believed that at the completion of the study, the findings will be of great importance to the management of manufacturing companies in Nigeria as the study seek to explore the merit of quality control in organizations productivity, the study will also be of great importance to the management of small businesses on the need to implement total quality management in the production process, as this will ensure product quality and organizational efficiency. The study will also be useful to researchers who intend to embark on a study in a similar topic as the study will serve as a reference point to further research. Finally the study will be useful to researchers, academia’s students, teachers, lecturers and the general public as the study will contribute to knowledge on the subject matter and also add to the pool of existing literature.


1.6 Scope and Limitation of the Study

The scope of the study covers quality control as a means of enhancing productivity in a production company in Nigeria. In the cause of the study, there were some factors which limited the scope of the study;

a) Availability of Research Material:

The research material available to the researcher is insufficient, thereby limiting the study

b) Time:

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

c) Organizational Privacy:

Limited Access to the selected auditing firm makes it difficult to get all the necessary and required information concerning the activities


1.7 Operational Definition of Terms

Quality Control

Quality control, or QC for short, is a process by which entities review the quality of all factors involved in production. ISO 9000 defines quality control as “A part of quality management focused on fulfilling quality requirements

Total Quality Management

Total quality management consists of organization-wide efforts to install and make a permanent climate in which an organization continuously improves its ability to deliver high-quality products and services to customers

Productivity

Productivity describes various measures of the efficiency of production. A productivity measure is expressed as the ratio of output to inputs used in a production process, i.e. output per unit of input

Production

Production is a process of combining various material inputs and immaterial inputs (plans, know-how) in order to make something for consumption (the output). It is the act of creating output, a good or service which has value and contributes to the utility of individuals


1.8 Organization of the Study

This research work is organized in five chapters, for easy understanding, as follows

  • Chapter one is concern with the introduction, which consist of the (overview, of the study), statement of problem, objectives of the study, research question, significance or the study, research methodology, definition of terms and historical background of the study.
  • Chapter two highlight the theoretical framework on which the study its based, thus the review of related literature.
  • Chapter three deals on the research design and methodology adopted in the study.
  • Chapter four concentrate on the data collection and analysis and presentation of finding.
  • Chapter five gives summary, conclusion, and recommendations made of the study.

Chapter Five


Summary, Conclusion and Recommendation

5.1 Introduction

It is important to ascertain that the objective of this study was to assess quality control as a means of enhancing productivity in a production company in Nigeria

In the preceding chapter, the relevant data collected for this study were presented, critically analyzed and appropriate interpretation given. In this chapter, certain recommendations made which in the opinion of the researcher will be of benefits in addressing the challenges quality control in an organization


5.2 Summary

Competitiveness is the keyword being used in every field of economy. The unique and innovative ideas followed by process of evolution are immediately materialized by smart organizations through quality and productivity tools. At the same time customer is no more buyer of previous century, his demands and expectations are on the rise and he has vast choice of brand name available. The type of industrial revolution brought by yellow race has jeopardized many industrial countries markets. The economy on every product line has become the prime importance factor.

The competition in the market is tremendous and manufacturing organizations have to be very innovative, and thoughtful. These facts have created a great challenge for creator and manufacturer to produce best quality at right time and with minimum cost to be competitive in this aggressive market era. These demands on increase are challenges for productive efficiency of the organization. The high rate of production can only be achieved by increasing the productivity and quality aspects. Various key performance indicators (KPI) are analyzed to improve the work method and achieve excellence through productivity. To improve process of evaluation through quality and productivity tools, it is necessary to eliminate waste by implementing TQM and utilization of resources is essential. Any production unit that is not able to efficiently utilize its resources in creating value for its customers will not survive in the competitive business environment of today.


5.3 Conclusion

The study finds that the motivating factors for these companies to apply quality control come internally from the management and parent company or externally from customer. SPC and acceptance sampling are used widely by the companies. Based on the findings of the study, we concluded that quality control is one of the indispensable elements of Total Quality Management which improves performance of the Brewery industry in Nigeria. It was further concluded that salary of workers alone lacks the capacity to stimulate all category of employees in the brewery industry for total quality management practices and industrial output, and capability studies are left behind from being used in these four industries, due to lack of knowledge in the technique. The selection of quality control technique in these companies is influenced by three factors: ease of use of the technique; ability to measure product specification fulfillment; and ability to improve critical quality and productivity problem.


5.4 Recommendations

In order to ensure good quality and performance in the brewery industry in Nigeria, the following recommendations were proffered. The brewery industry should not rely completely on the increase of salary as the only means of reward for staff motivation but should apply relevant reward mix that is capable of motivating all categories of staff for quality concern and optimum productivity. All stakeholders of quality control should ensure that the expenditure on quality control is justified through proper monitoring, checks and inspection to forestall customer complaints, defective and returned products, loss of good will and ultimately boost productivity of the brewery industry. The management should initiate total quality management drives that crisscross the entire organization on regular basis to attain and sustain high quality standards and meet customer satisfaction.


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