IMPACT OF TOTAL QUALITY MANAGEMENT IN NIGERIAN SERVICE INDUSTRIES (A CASE STUDY OF NETCO-DIETMANN COMPANY OIL AND GAS, PORTHARCOURT)

CHAPTER ONE

INTRODUCTION

1. BACKGROUND OF THE STUDY

Total Quality Management (TQM) is defined as a management philosophy of managing business practices that deals with continuous improvement in all aspects of operations (Thompson &Strickland 2008). According to them, there must be hundred percent accuracy on activities performance, involvement and empowerment of employees at all levels, work design based on team, benchmarking and satisfying of customers expectation. Total Quality Management is an integrated process that involves every staff of an organization ranging from managing director to the lowest worker. It is customer driven, and the overall objective is to satisfy his requirements, and know his changing needs. The customers may be those who purchase goods and services (external customers) and workers inside the organization (internal). Workers in the organization must design appropriate strategies to satisfy them, (Jones, George &Hillcharles, 2000) Total Quality Management emphasizes product quality and service improvement, and stresses that all organization function should be directed towards this goals. Total Quality Management is an inseparable aspect of every employee’s performance and responsibility. Total Quality Management emphasizes new improved methods of doing things, and everyone in the organization must embrace change and management must be willing to manage it successfully. All levels of management must be ready to accept and analyze suggestions for quality improvement from those below them.

Total Quality Management aims at commitment to doing things right in the organization and instilling enthusiasm. In organizations that implement TQM every person within the organization has customer or suppliers, some of who may be within and outside the organization. For instance, the director of accounts in an organization is a supplier of services to both staff and outsiders, who are his customers not only when he pay money to them but also when he provides them with relevant financial reports. The director of account is also customer to his subordinates who supply needed information to him to enable him perform his job to meet organizational demand This TQM approach enhance fewer delays, mistakes and bottleneck. (Wheelen& Hunger, 2006; Zickmund, 2008). In order to inculcate the spirit of TQM among employees, the bosses (internal customers) must insist on efficient and timely delivery of services from their subordinate (internal suppliers). The supervisor must explain to their subordinates the standard of performance required of them and create proper working environment to enable them meet requirements. In the same vein, those who deal directly with the customers and suppliers must ensure that goods and services that leave the organization meets customer requirements, while suppliers would be informed of the requirements they have to meet in supplying goods and services. The manufacturers were merely in sellers market.

However, the trend has changed from sellers market, to the buyer’s market. The consumers have become more aware of the variety of products in the market. Thus, customers are the focus of manufacturing such that every organization has to study what customers needs are and satisfy them in order to remain in business by offering products of desired quality. Arora (2009) stated that quality of goods are determined by customers, customers become a key factor that can create competition among organizations and this make firms to focus more on quality to sustain their competitive advantage. This is because effective quality determines the rate of productivity and thus become an important factor in organization and also contributes to the growth of the economy. Meanwhile in the light of increasing complexities and the change from local to global tiers of market places, there have been constant pressures applied on the management to improve competitiveness by lowering operating cost and improving logistics. The customers are becoming increasingly aware of rising standards having access to wide range of products and services to choose from. There is an ever-increasing demand for quality product and/or services and this global revolution and forced organizations to invest substantial resources in adopting and implementing total quality management (TQM) strategies. Total quality management refers to a total commitment to quality.

1.  STATEMENT OF PROBLEM

Over the years, emphasis has always been on production quantity rather over quality but this has always resulted in high level of stock with excessive expenditure on inspection, rework, and warranty repairs which at the end of the day may not be acceptable to the customers. Nowadays companies have come to realize that it is cheaper to produce items correctly than to waste resources by producing substandard items that refuse to meet customers’ satisfaction. This long-term viability of organization, whether in profit or non-profit sectors, makes organisation to depend largely upon how well it understands and how effectively it meets customers’ requirements through the adoption of TQM as the goal of TQM is customer satisfaction (Drury, 2011). TQM is seen as a system of behaviour which includes everyone in an organization and motivates staff at all levels, with an organizational philosophy that “Improvement is a way of life”. However, in practice, many organizations still substitute quality for quantity and effective coordination and motivation of staff is inadequate.

1.   AIMS OF THE STUDY

The major purpose of this study is to examine impact of total quality management in Nigeria service industries. Other general objectives of the study are:

1. To examine if the application of TQM factors in Nigeria has led to significant success in project delivered.

2. To examine the extent quality improvement affects organizational performance.

3. To examine the impact of total quality management on organizational service delivery.

4. To examine the external factors influencing the adoption of Total Quality Management.

5. To examine the relationship between total quality management and organizational performance.

6. To find out whether total quality management contribute to lowering the level of product wastage and increases in customer satisfaction.

1.4 RESEARCH QUESTIONS

1. Has the application of TQM factors in Nigeria led to significant success in project delivered?

2. To what extent does the quality management improvement affects organizational performance?

3. What are the impacts of total quality management on organizational service delivery?

4. What are the external factors influencing the adoption of Total Quality Management?

5. What is the relationship between total quality management and organizational performance?

6. Does total quality management contribute to lowering the level of product wastage and increases in customer satisfaction?

1.5 RESEARCH HYPOTHESES

H₀₁: There is no significant impact of total quality management on organizational service delivery.

H₀₂: There is no significant relationship between total quality management and organizational performance.

1.6 SIGNIFICANCE OF THE STUDY

The study is important because it will make tremendous contribution towards improving the oil and gas sector. It is in the light of the aforementioned that it becomes paramount to carry out this study because it will help in determining the prospects of TQM in the oil and gas sector. This will in no small measure, increase performance in terms of profitability and customer satisfaction and thus contribute to knowledge in the field of quality management. It is hoped that this study will serve as an avenue to managers of oil and gas sectors to have a better understanding on ways of handling the sector for better economic development which will invariably lead to customer satisfaction. The study will also be of immense significance to managers and future researchers who may wish to probe further on the topic.

1.7    SCOPE OF THE STUDY 

The study is based on the association between dietary patterns and obesity as a risk for diabetes among mothers in Owerri West L.G.A.

1.8 LIMITATION OF STUDY

Financial constraint– Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).

Time constraint– The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.

1.8 DEFINITION OF TERMS

TQM: This is an abbreviation for Total Quality Management

TQM Principles: This refers to doing things right the first time, be customer-centred, build term work and staff empowerment.

ZEST: This refers to good service delivery as the special emotional plus that keeps the customer coming back time and time again.