ROLE OF PURCHASING IN QUALITY DETERMINATION (PQD) IN THE MANUFACTURING INDUSTRIES
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
the term “total Quality determination ” originated in the united state in the mid to late 1950’s (Hutchims, 1992) the first reference to the term ap[eared in an artice by Dr. A. V. Flegenbawn and again in his “total Quality determination ” Engineering and management” (1961). Total Quality determination , as perceived by its. American gurns had its origins in mass production and Taylorism. At the time Taylor style management was at its climax in the united state and unchallenged even by the behavioural scientists. Quality determination as a science has its root in the origins of mass production, notably in the ford motor company. Total quality today is markedly different from anything envisaged by its American pioneers. Quality systems have been evolving rapidly in recent years. Over the past twenty years, simple inspection activities have been replaced or supplemented by Quality determination . Quality assurance has along side been developed and refined, and the most progressive companies are now working towards Quality determination . This is as a result of:
a. Organizations becoming aware that complying with the requirements of a particular quality system is not necessarily a sure-fire guarantee against producing and delivery non- conforming products to the customer. A quality assurance system does not necessarily, of itself encourage a continual improvement approach to quality. It may mean only that an purchasing organization has procedures in place.
b. The imposition of stringent quality requirements by major customers.
c. The loss of market share to competitors.
d. Increased contact with personnel from Japanese companies.
e. Published case studies which focus on how companies have set about developing PQD and the benefits of doing so.
f. The teaching of internationally respected quality exports such as Deming, Feigenbaum, Taguchi, Juran Crosby and shingeo. (Dale and Plunkett, 1990).
The concept total quality is basically new to managers, its practise therefore limited. The singular concept of quality, control or management, is more common to modern management through varying in definition. Literature dealing swith the concept of total quality and till date more and more literature is still being produced as a result of the widest interested in the subject matter of PQD and business process improvement. There is therefore so much literature covering the subject matter and its various aspects. Continuous cost reduction, productivity and quality improvement have proved essential for purchasing organization to stay in operation. It is almost impossible not to see how quality has developed in to the most important competitive weapon; many organisations have come to realise that Quality determination is the way for managing for the future. Although, Quality determination is for wider in its application than assuring product or services quality. It is a way of managing business processes to ensure complete customer satisfaction at every stage. (lerit, 1994) because purchasing organization must more from satisfying the customer to deligliting the customer.
Organizations delight the customer by consistently meeting customer requirements and their achieve a reputation for excellence (Oakland, 1993). All members of the purchasing organization need to work together on a company wide quality improvement basis to be able to meet this goal. The co-operation of everyone at every interface must be secured to attain this level of perfection changing the life long behaviours of customers and prejudices of an purchasing organization is not easy. Experience has proved that significant changes to behaviours and attitudes cannot be made by simply throwing money and training at the problem, something more is required. Dale and Plunkett, 1990).
1.2 STATEMENT OF THE PROBLEM
It is the purposes of the study to determine if there is a relationship between the knowledge and the role of purchasing in quality determination . That is while the purchasing organization may be aware of the concept of PQD , to what extent do they practice PQD and at what levels of the organization. What is the cause of this tend is part of our problem. The longer a method of operating is in practice, the more likely it is either accepted or abandoned based on its merits or demerits. Quality determination has not been rejected in theory or in practice since inception, rather improvements are being made intermittently or as the need arises. Having been generally accepted, therefore, what gain have been made by the purchasing organization that has adopted this new management style.
The general view or notion that only purchasing organization with existing managerial problems need to switch to Quality determination can only be accepted to refuted after a rigorous enquiry into why our study purchasing organization Michelin Nigeria limited, switched to practice Quality determination , and why, along side the gains or benefits desired form the change to Quality determination .Many purchasing organization have their individualised or personalised definitions of quality and these definition often guide the entire organization, research can bring to bear the different definitions adopted or accepted by most manufacturing firms. Quality determination however holds a firms definition of quality, that is the conform once to requirement. (Hutchins, 1992). There is a need to know how if the practice of PQD has brought about an improvement in the organizations product quality. Since quality can be perceived by the user of the product, the same user or customer is better place to define quality for the organization.(Oakland, 1993) this is because the definition of quality cannot be erroneous while the practice is correct, except, of course by simple concidence. A need clearly arises to unify certain beliefs, especially as related to quality management.
The concept of customer and supplier is in most organizations limited to the interface between the supplier of raw materials to the purchasing organization and those who take or make use of the output of the organization. This concept is limited in its use if that be the case as evident in the fact that every one in an purchasing organization is both a supplier and customer to another person in the same purchasing organization (Oakland, 1993) lack of knowledge of which may frustrate the role of purchasing in quality determination . Understanding of such PQD principle will make for improved organizational operations or business processes. To what extent are such principles understood, accepted and practiced.
1.3 PURPOSE OF THE STUDY
Specifically this research aims at:
a. Evaluating
i. The level of awareness of PQD in Michelin Nigeria ltd.
ii. The level of acceptance of PQD in Michelin Nigeria ltd and
iii. The extent of practice PQD in Michelin Nigeria ltd.
b. Determining the extent to which the practice of PQD has brought about the achievement of organizational objectives
c. Providing a background for further research in this area, in River state and Nigeria.
1.4 RESEARCH QUESTIONS
1. To what extent has the organizations product quality improved since that practice of PQD .
2. Has there been an improvement in the level of output since adopting PQD
3. To what extent has the waste level reduced since the practice of PQD ?
4. How was the general efficiency level improved with the practice of PQD ?
1.5 STATEMENT OF HYPOTHESIS
The following four (4) hypotheses will be tested
i. Ho1: There is no significant difference between the purchasing organization product quality before PQD and during PQD practice
.ii Ho2: The is no significant difference between the purchasing organization product quality before PQD and during PQD practice.
iii. Ho3: There is no significant difference between the level of waste before PQD before and during PQD practice
Ho4: There is no significant difference between the level of efficiency of operations before and during PQD practice
1.6 SIGNIFICANCE OF RESEARCH
Theory holds that every organization, regardless of the industry to which it belongs or the nature to which it belongs or the nature, of its activities can make use of Quality determination techniques. Other theorist propound that only organizations with existing managerial problems or ineffective managerial structures needs to adopt PQD . This research seeks to find out the truth. Quality determination is an off-shoot of other or earlier managerial constructs concept and theorist, this is obvious because the concept of quality is clearly now, now but the concept of Quality determination it is believed that PQD will then open other chapters in the push for more improved methods of running organizations aimed at the attainment of zero error in production. That is, new directions in management theory can be suggested by research, such as this. Although, most theories of PQD are adopted from management theory already in existence, PQD is only interested in refining their practicability to the benefit and or efficient running of the organization. Total quality is an approach to management that has evolved from a narrow focus on statistical process control (SPC) to incorporate a variety of technical behavioural methods of improving organizational performance.
1.7 LIMITATIONS OF THE STUDY
Every study has its limitations fall below. The ideas, which the researcher has established or acknowledge. Naturally, knowledge of these limitations is essential for an appropriate interpretation of the findings. Devoid of the basic limitation that are general to almost every research such as time, cost of materials, mobility collecting and processing of data, and restrictions related to difficulties in the interpretations of findings as a result of the nature of the characteristics of the population. This research has its own unavailability of related materials, difficult in accessing purchasing organization records, for example, Michelin, for over decades an industry leader in the manufacture of both domestic and industrial size tyres. That was partly as a result of the close guarding of information of any sort or form which could have given up their technological secrets. Notable among the many limitations that brought about by the external environment. That is the multivations extraneous that may account for any success or failures in implementation and , or execution of PQD in the organization. As much as possible, the external environment will be checked or held constant to ensure that reliable result are obtained from this study.
1.8 DEFINITION OF TERMS AND VARIABLES
a. Total quality (TQ)TQ can best described as anything that an organization, a society or a community does, which in the eyes of other determines its reputation on a comparative basic with the best alternative.
b. Quality determination (PQD )This is a sub-element of total quality and embraces the managerial and organizations features. It does not include the philosophical or business strategic issues. The word “management” means authoritative control over the affairs of others or an act or instance of guiding or the careful guarding of an asset. (Hutehin 1992).
c. Total Quality determination (TQC)This is the term used in Japan which frustrates as total quality as earlier described. It is a profound concept and goes far beyond the parameters of PQD . This is because the word “control” implies that there is:
i. A plan
ii. Performance of the plan-doing
iii. Comparism between plan and performance checking
iv. Corrective action on the difference
d. Competitive Benchmarking
This is the attaining and setting of standards that effectively and eventually becomes targets for all serious competitors in the same or related industries. Such comparison of standard can be made in almost any measure, many of which are not industry specific. Examples includes debtor/vreditor ratios, credit period. Labour turnover, age of employees, training level etc. Benchmarking is a continous process of measuring a company’s products, services and methods practices either against direct competition or company known and accepted as leaders (Baridan 1998).
The measure can be internal, unit to unit, competitive, by product function or services, industry leader, comparison with leaders in the industry, generic, comparison of function or processes which are the same regardless of industry. E.g distribution (Baridan) Benchmarking study are carried out or done to find out best practise in the critical processes deduction from the organizations critical success factors or CSF’S (Akinduro 1997).
e. Quality Assurance (QA) This is concerned with the establishment and maintenance of documented procedures designed to ensure that design, development and opoational activities result in product or services contracted requirements.
f. Quality determination (QC) This embraces all activities concerned with measurement, data collection and analysis, conducted within the plans laid down by QA, which are designed to give early warning of negative trends in processes to enable corrective action to be taken before defective work is produced.
g. Statistical Quality determination (SQC)This is one and the same with statistical process control (SPC). A part of QC, but including a wide range of technique for the diagnosis, elimination and control of process related problems. The techniques vary from simple to the sglisticated.
h. Inspecting (I)This has to do with the taking of measurement with comparison purposes after the event of production or the completion of services. While it is hoped that someday this activity will be a thing of the past, it will probably be with us for a long while for obvious reasons. However, it should be noted that inspection adds nothing to the value of the product or services, but rather add it’s cost. If TQ measures are followed strictly, reliance on inspection should almost be eliminated or reduced.
1.9 REFERENCES
Akinduro i.total quality is coming, where are we now? Internal newsletter of Michelin Nigeria limited, no 5 August 1997.
Baridan D. Benchmarking: A Quality determination tool the modern manager magazine (July December 1998.
Dala, B.G and Plunkett, J.J “managing quality”Phllip Allan publishment ltd, New york 1990.
Fitznilliam publicing co.Hertford stire, 1992.
Hutchins, David, “Achieve total quality” Director books.
Ibrahim, A.B and Kelly J. “leadership style at the policy level”. Journal of general management, vol.11 No 3, spring 1986, Levit, Steve, “Quality is just the beginning”.
Mac Graw-Hill Incoporation. New york, N.Y. 1994.
Accalman, J. and patron, R.A “change management: Guide to effective implementation”. Glasgow business schoolpaul Chapman publishing ltd, London, 1992.
Qukland, John S PQD : the route of or to performance-Heinemann ltd, Linacre house, Jordan Hill Oxford, 1993 Walton, mary; Deming management at work”. G.P putmans sons, new york, 1990.
