Total Quality Management And Its Applications In 7-Up Bottling Company

Project and Seminar Material for Business Administration and Management BAM

Total Quality Management And Its Applications In 7-Up Bottling Company


Abstract


This study was carried out on Total Quality Management and its application in 7UP Bottling Company. The study employed a descriptive survey design. The population of the research comprises the staff of 7up Bottling Company (Aba Branch). The sample size constituted fifteen (15) personnel from 7up Bottling Company. The researcher made use of questionnaires and interviews as an instrument for collecting data for the study. The questionnaires were personally delivered to the staff of 7up Bottling Company, Aba and collected personally by the researcher. The researcher used largely qualitative approach in analyzing the data. It was discovered that, management are finding it difficult to raise money in the support of ensuring Total Quality Management (TQM), thus, by organizing seminars and training of employees on how to use quality management methods in order to ensure quality. It was recommended that the management should have seminars or training for the employees on how to use quality management methods (tools) in order to ensure quality and also the employees should be encourage to accept this education and training in the company.


Chapter One


Introduction

This chapter talks about the background of the study, statement of the problem, objectives of the study, the research questions, significance of the study, limitation, scope, and organization of the study.


Background to the Study

Total quality management is defined as the complete commitment to quality in all aspect of the firms operations. Total quality management is a management approach of organization, with the objective of attaining quality, through the full participation of all its members for long term success, customer satisfaction and benefits to the organization and the public. According to (Shankar, 2012). Total quality management (TQM) is the significant approach to improving quality which involves the organizations long term commitment to a sustained improvement of quality, throughout the firm with the active participation of all organizational members to meet and exceed customer’s expectations. (Weihrich and Koontz, 2005) states that total quality management is the constant effort of identifying with and catering for the customer needs from time to time. This is in view of the fact that customer’ needs, desires, and wants changes overtime as changes occur in the external environment of business. TQM embraces the culture of continuous improvement of learning and adaptation to changing customer demands. According to Jones (2011) total quality management is a management technique is concerned with improving the quality of the organizations products and services and therefore directs all efforts to achieving it. NG-Journal of Social Development (2016).

Total Quality Management (TQM) is a management approach that originated in the 1950s and has steadily become more popular since the early 1980s. Total Quality is a description of the culture, attitude and organization of a company that strives to provide customers with products and services that satisfy their needs. The culture requires quality in all aspects of the company’s operations, with processes being done right the first time and defects and waste eradicated from operations. Total Quality Management(TQM) is a huge area of study that includes various principles. Nonetheless, three main principles that resonates are customer focus, continuous improvement and teamwork. TQM emphasizes these three principles to the extent that each principle cannot be used independent of the other. Therefore, in order for TQM to be achieved in any setting, these three principles have to be implemented. However, it is necessary to find out how the integration of these principles affects organizational performance.

Quality Management has seen a lot of evolution through the stages of inspection, quality control, quality assurance and total quality management. Total quality management evolved from quality assurance methods that were first developed around the time of the First World War. The war effort led to large scale manufacturing efforts that often produced poor quality. To help correct this, quality inspectors were introduced on the production line to ensure that the level of failures due to quality was minimized.The new wave of quality control became Total Quality Management, which was used to describe the many quality-focused strategies and techniques that became the center of focus for quality movement.

According to Kenneth Laysons and Brain Farrington (2006) Total Quality Management is an integrative management concept of continually improving the quality of delivered goods and services through the participation of all levels and functions of the organization. They further declare that it is a way of managing an organization, so that every job, every process, is carried out right, first time and every time.  He continues to say that; Continuous improvement must deal not only with improving results, but more importantly with improving capabilities to produce better results in the future. Five major areas of focus for capability improvement are demand generation, supply generation, technology, operations and people capability. It must therefore be the ultimate priority of any company to so as to boost the growth as well as the profitability of the business.

7up Bottling Company of Nigeria, Aba branch is the focus of study because of the fact that 7up Bottling Company, (Aba Branch) Total Quality Management domain, however, has not attracted much attention. As a result, little research has been conducted in this field, especially on Total Quality Management application.


Statement of the Problem

Total Quality Management is an essential aspect in the manufacturing, distribution and trading industries. For a company to remain competitive on a world scale, improvement must be made in both levels of cost and quality. Therefore, the researcher is undertaking this research to assess the application of TQM as one of the tool for organizational development at 7up Bottling Company, Aba branch.


Purpose of the Study

The main objective of the study is to find the application of total quality management in manufacturing firms in Nigeria: with a study of 7up bottling company (Aba branch).

The specific objectives of the study are:

  1. To find out the strategies in ensuring quality.
  2. To determine how 7up uses TQM in their processes.
  3. To obtain the effects of TQM application on overall business performance in 7up Bottling Company.
  4. To determine how the employees relate in a TQM environment.

Research Question

As the research works on the co-ordination of purchasing activities with other functions in 7up Bottling Company of Nigeria (Aba Branch), the following questions will be appropriate for the study.

  1. What are the strategies 7up Bottling Company use in ensuring quality?
  2. How do7up Bottling Company use TQM in their processes?
  3. What are the effects of TQM application on overall business performance in 7up Bottling Company of Nigeria?
  4. How do the employees of 7up Bottling Company relate in a TQM environment?

Significance of the Study

The results will help 7up ensure a continuous improvement and high quality standards in its operations. Furthermore, as an academic research project, it could be used as the basis for further academic research into the operations of 7up Bottling Company.


Scope of the Study

More data could have been gathered by spreading the study to cover a wider scope but due to the constraints mentioned earlier which hindered the research work, specific area was chosen. In view of that, the researcher restricted the scope of the study to only information provided by the management of 7up Bottling Company, Aba Branch.


Limitation of the Study

Collection of data was the major limitation encountered in the study. This is because most heads of functional departments were reluctant to reveal basic information needed for the study. There was this suspicion that information given will be handed over to other manufacturing companies. Information is generally viewed as very confidential and as a result of that, enough data was not gathered for the study. It is believed that might adversely affect conclusion drawn.

Also, the manager of the company or any other relevant staff capable of providing us the requisite information was not available during the time of visit.

Moreover, time constraints also affected the study in a way. The fact is that, the research is being combined with academic work and this affected the study to some extent.


Organization of the Study

The structure of the study is as follows;

  • Chapter one deals with the general overview of the study. This comprises introduction, statement of the problem, objectives of the study, research question, significance of the study, limitation, delimitations of the study and organization of the study.
  • Chapter two also deals with the review of related literature in the area of study. It discusses the theoretical and empirical framework of other research such as definitions of Total Quality Management, Effects of Total Quality Management, strategies in ensuring Total Quality Management and Total Quality Management Process.
  • Chapter three covers the research methodology. This chapter discusses the research methods used to collect data for the study. It focuses on the research design, population and sampling, data collection instrument, data collection procedures and data analysis.
  • Chapter Four cover the results of the study. The data obtained through the administration of the research instruments are analyzed and discuss in this chapter. The analysis is in the form of frequencies and percentages, which were captured in tables, graphs and charts.
  • Chapter five provides the summary, conclusion, recommendation and suggestion for further research. It embraces the summary, conclusion, recommendations and suggestion for further research which suit the application of Total Quality Management (TQM) in 7up Company Limited, Aba Branch.

Chapter Five


Summary, Conclusions, Recommendations and Suggestions for Further Research

Introduction

The purpose of the study was to ascertain the application of Total Quality Management (TQM) at 7up Bottling Company, Aba branch. This chapter contains the summary, conclusion, recommendations and suggestions for further research made by the researcher.


Summary

In the field of total quality management, much research dealing with the concept of TQM has been conducted. Different researchers have adopted different definitions of TQM and concerning the effects of TQM application, different researchers have different findings. A number of researchers concluded that TQM application has effects on firms’ business performance.

After the literature related to TQM application in 7up Bottling Company of Nigeria (Aba Branch) was studied, it became evident that no large-scale research dealing with the effects of TQM application on firms’ overall business performance had been systematically conducted. The lack of sufficient guidelines to assist firms’ TQM application has led to a number of unsuccessful TQM applications in 7up Bottling Company – Aba.

Generally, it was discovered that, management are finding it difficult to raise money in the support of ensuring Total Quality Management (TQM), thus, by organizing seminars and training of employees on how to use quality management methods in order to ensure quality.


Conclusion

After the analysis of the data from the questions and other interviews conducted, the following conclusions were drawn.

7up Company is using all the requirements of ISO 9001:2000 and is verily certified by it. It is operating using the right procedures and keeping a good control over them to ensure that customer requirements are met properly and wastage is minimum hence involving all the stakeholders in the decision making and continually improving the company’s performance and the instruments or tools for ensuring TQM application and overall business performance are reliable and valid, and can be used by other companies in TQM application on overall business performance.

Secondly, TQM application has positive effects on employee satisfaction, product quality, customer satisfaction, and the profit margin of the organization. Also the researcher discovered that 7up Bottling Company of Nigeria – Aba encounters problems with the acquisition of logistics and training of personnel to be more equip and knowledge about the application of quality.


Recommendation

Based on the finding of the research work, it seems that 7up has an efficient and productive quality management system. However, the following suggestions and recommendations are made in order to improve upon the application of Total Quality Management (TQM) in 7up Bottling Company by the managements in both the short and long term.

The 7up Company has high uncertainty about the usage of raw materials, which is used to create their products. This may not be an issue at present but with raw material supplies becoming increasingly scarce there could be pressure to use more recyclable materials.

Firstly, the company faces criticism of health and safety and packaging obligations, which can affect the social image of the company. Therefore, the use of continuous improvement is significant concept within the quality management system and the business should look to find the most recyclable packaging available and also for the organization to be sure of satisfying its customers, a good character, honest and trustworthy Personnel well verse with the principles and techniques in ensuring quality should be recruited and employed.

Secondly, management should have seminars or training for the employees on how to use quality management methods (tools) in order to ensure quality and also the employees should be encourage to accept this education and training in the company.

Thirdly, there should be a document stating the quality policy of the organization which addresses each of the requirements of ISO 9000. In broad terms the role of each functional department in implementing quality management should be clearly defined.

Lastly, Supplier’s, employees and other stakeholder in the company should be involved in the activities engage in ensuring quality.


Suggestion for Further Research

In a case study such as this, recommendations for future research would address the issues generated from this study. Based on these findings, future research may start from a relatively higher level of knowledge.

First, a replication of this study would be helpful in reexamining the validity of its findings for which the researcher was not able to investigate. Further empirical studies using larger sample sizes, greater geographical diversity, and firm type diversity would be helpful in validating specific parts of the theoretical models proposed in this study.
Second, subsequent research needs to be engaged in the development of more valid and reliable operational definitions for the proposed constructs, overcoming the limitations posed by the data source used in this study.

Thus more categories should be developed in order to score the responses for strategic business performance. The data of employee and customer satisfaction would be obtained from employees and customers, respectively, rather than from respondents.

Also, more structured interviews should be conducted in different kinds of manufacturing firms in Nigeria, in order to continuously improve the TQM application model. Thus, model could better meet the requirements of different Nigerian industries.

Moreover, an in-depth case study should be conducted in a Nigerian manufacturing firm to gain more insight into using this TQM application model in practice.

Finally, the influence of external environment should be studied in order to explore how external environment affects firms’ TQM application in Nigeria.


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Frequently Asked Questions


What is the Total Quality Management System?

Definition and explanation: The total quality management (TQM) is a management system which is based on the assumption that every employee of a company must promote quality of company’s products and/or services by maintaining maximum efficiency possible in the operations of that company.

What is a practical example of implementation of Total Quality Management?

A practical example of implementation of total quality management is in Exxon Mobil – an American multinational oil and gas company.

What is a TQM?

TQM is a very well-mannered and precise approach towards the management of a company. The approach refers to a systematic ongoing procedure which is adopted to identify and eradicate any kind of deficiencies and errors in the supply chain and management of a company.

What are the disadvantages of Total Quality Management System?

Some of the notable disadvantages of total quality management (TQM) system are listed below: The implementation of the TQM approach is costly and time consuming. This is because its implementation requires trained, competent and capable employees.

What are the strategies of Total Quality Management?

Total Quality Management (TQM) Implementation Strategies. Strategy 1: The TQM element approach. The TQM element approach takes key business processes and/or organizational units and uses the tools of TQM to foster improvements. This method was widely used in the early 1980s as companies tried to implement parts of TQM as they learned them.

What is TQM implementation strategy?

Total Quality Management (TQM) Implementation Strategies. The TQM element approach takes key business processes and/or organizational units and uses the tools of TQM to foster improvements. This method was widely used in the early 1980s as companies tried to implement parts of TQM as they learned them.

What are the disadvantages of Total Quality Management System?

Some of the notable disadvantages of total quality management (TQM) system are listed below: The implementation of the TQM approach is costly and time consuming. This is because its implementation requires trained, competent and capable employees.

What is an example of TQM?

Examples of Total Quality Management System Strategies Imprints of TQM concepts can be found in modern approaches to quality management, such as the Malcolm Baldrige National Quality Award (MBNQA) criteria, ISO 9001, Six Sigma and lean manufacturing, as well as the examples below. Total Quality Management (TQM) Implementation Strategies

What are the advantages and disadvantages of TQM?

What are the advantages and disadvantages of TQM? TQM leads to better products manufactured at lower cost. The focus on using high quality information to improve processes reduces waste and saves time, leading to reduced expenses that can be passed along to clients in the form of lower prices.

Which are the companies using TQM?

Quality management began in manufacturing, and TQM, like it’s subsequent methodologies, adapted well to finance, healthcare, and other fields. Some of the landmark companies to adopt TQM include Toyota, Ford, and Philips Semiconductors. Worldwide, countries such as Germany, France, the UK, and Turkey established TQM standards.

What does TQM stand for?

Total quality management (TQM) is the continual process of detecting and reducing or eliminating errors in manufacturing, streamlining supply chain management, improving the customer experience, and ensuring that employees are up to speed with training.

What is the difference between TQM and traditional management?

“Organizational structure provides the guidelines for the system of reporting that drives an organization”. TQM views organizational structure as one unit whereas traditional management takes it as different units putting their efforts to achieve their respective goals.

What are the advantages and disadvantages of TQM?

What are the advantages and disadvantages of TQM? TQM leads to better products manufactured at lower cost. The focus on using high quality information to improve processes reduces waste and saves time, leading to reduced expenses that can be passed along to clients in the form of lower prices.

What are the advantages and disadvantages of quality control?

Quality management system is an overall organization management system that incudes provided collective plans, events and activities in order to ensure products, …show more content… The direct advantages are; enhanced customer satisfaction, improved quality of products and services, staff satisfaction, more commitment towards organization, improved relationship with suppliers and improved corporate image. 

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