IMPACT OF TOTAL QUALITY MANAGEMENT ON PRODUCTION COST OF AN ORGANIZATION

IMPACT OF TOTAL QUALITY MANAGEMENT ON PRODUCTION COST OF AN ORGANIZATION

CHAPTER i: Introduction

1.1     Background of the Study

Total quality management is known as the primary role of management to lead an organization in its daily operations and maintains it as a viable entity into the future. Quality has become an important factor in these. Although ostensibly always. an objective of business is customer in customer terms, because a specific goal in the late 1980’s provide higher quality are recognized as a key element for success, most large operations taking that path have document the success, first they survived the competitors that has set the higher quality levels and now have regained some of their former market.  Total Quality Management is perhaps the leading management approach that compares employed to improve their product and services, quality with the aim of improving typical measures of business performance.  (e.g profit, increased market share reduced cost).  The Japans have capture more than 30% of the American and electronic markets.  It was achieved by offering higher value products.  In response to the boom in the competitor market, many American firms have implemented require the integration of Human resources, production engineering store and purchasing marketing, distribution, and planning is a continuous improvement process; it is much wider than the traditional quality view of incoming inspection and process control.  It means that the entire organization is working as a team including the cooperate top managers and each an every employee, it is on innovative way of thinking that affect the culture, the strategy and technology of company.  The organization needs a holistic approach so that every department in the organization should come together for cost reduction and improve products, approach will reduce cost and quality will be achieve for competitive advantage.

1.2Statement of the Problem

This Empirical research has identified some general problems that are associated with Total Quality Management which are listed below. One of the problems is the failure of organization to understand the importance of material quality control and often ignore its application. This has led to the receipt of low quality and substandard lots of materials into the in process, culminating in poor quality out put and increased cost for these organizations.

The problem of organization over-relying on suppliers ability as a result of trust thereby falling to check and/or monitor the incoming materials for any possible defect or deviations from specification. Others are manpower related problems were also observed to be a major barrier for achieving a Total quality management program. Most organizations lack the service of specialists to handle materials quality control trained/retrained or lack of proper supervision due to top management neglect.

Facilitates related problem in organizations, there are inaccuracies in machineries, tools, fixtures, measuring  instruments etc. that are required in managing quality and total quality control process which can be disastrous for decision making as a result of the unreliable outcomes. The existence of these problems brought about the head for the research work so as to proffer solutions that are workable at the end.

IMPACT OF TOTAL QUALITY MANAGEMENT ON PRODUCTION COST OF AN ORGANIZATION