CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

The Nigeria beer and related brewery industry

market is becoming increasingly competitive.

Before now, consumers only had a few local brands

to choose from. In the beer sector, if it was not

a product of Nigeria Breweries Plc, then it had to

be that of their closest competitor, Guinness

Nigeria Plc. Some sectors of the country were not

covered by their limited distribution network.

Today, the picture is quite different; the

consumer is king. The consumer may choose from

several local and imported varieties, in a number

of packaging formats (bottles, PET, Cans, tetra

pack and even kegs), and from any distribution

1

outlet. The proliferation of substitutes from

South East Asian companies and opening up of

hitherto shut borders (occasioned by transition

from military rule to civilian rule), further

deepens the market for the consumer. In addition,

the struggle for mind power with nouveau riche

telecommunication companies exacerbated the

situation. The focus from sellers’ to buyers’

orientated market has forced Nigerian Breweries

Plc to transit from production-oriented to market-

oriented perspective.

Transiting from production orientation to market

orientation goes beyond a few slogans and

rhetoric. It meant a total change from top

management to change in processes in the shop

floor. No other platform could better represent

the change in philosophy than Applicability of

2

Total Quality Management, TQM. The TQM approach

attempts to marry excellence in operations with

needs of the market, while maximizing profits.

This philosophy indeed suited the company

completely as it tried to achieve a win-win

situation with its consumers. Applicability of

Total Quality Management is a management concept

that is practiced in a service delivery or

production organization where there is a need to

improve the quality of products/services and the

general staff attitude, all geared towards

improvement in the organizational performance.

Quality is an important consideration for

executive thinking. There is increased quality

awareness for senior executives who have

recognized that quality is an important strategic

tool for all levels in an organization as opined

3

by Crosby (2007:64). Muo (2010:16) asserts that

TQM requires defining and implementing several

quality factors in any research work. These

quality factors involve top management commitment

and involvement, staff empowerment and culture.

These, taken together constitute the so-called

soft aspects of management. Oakland (2010: 72)

emphasized that top management must accept

responsibility for commitment to quality all

through the organization.

In his opinion, Swanson (2011:33) says that to

manage the organizations quality journey, a

quality council led by the general manager should

be setup and a full time quality manager should be

hired to provide support for the quality council.

To support this statement, Deming (2005:60)

emphasizes that, whenever needed, an external

4

Consultant can be appointed to assist in the

implementation process. Senior managers who are

members of the quality council are responsible for

developing a comprehensive policy, based on clear

vision and clear mission statements, including

quality goals deployed effectively at all levels

of the organization. This unites the effort of all

employees and determines the corporate

expectations. James and James (2010:92) observed

that this comprehensive quality policy should be

communicated effectively to ensure common

understanding of the organization’s expectations

and direction so as to achieve organization-wide

commitment. They also mentioned that at

departmental level, quality committees, headed by

departmental heads, be established to implement

quality policies and achieve organizational goals.

5

These committees should have a direct reporting

relationship with the quality council through

committees’ heads. In order to ensure the

commitment and involvement of everyone in the

organization in the quality improvement, top

management should ensure that all employees are

involved in the preparation, implementation and

evaluation of improvement activities. Welech and

Welech (2011:300) theoretically expressed that

practical assistance, training, recognition and

participation are given to all employees in order

to attain quality goals of the organization.

In any organization, there is always tendency to

marshal the resources effectively to achieve the

desired goals. The aim of any enterprise is to

reach out to as many clienteles as possible in

order to control the market. Increased market

6

share beckons on the management to make pertinent

and prompt polices that impact positively on the

organization. These policies have to take

cognizance of the divergent resources available

which include men, materials, money, machines and

information technology. To take a relevant

decision has never, been quite easy at any time.

McDons (2000:11) notes that a good decision has to

come from experienced and well informed analysis

of the resources available and their uses and

explicabilities.

Often times, and as is usually the case, the

decision of the manager when taken solely without

due consultations with stakeholders boomerangs.

According to MacPeters (2010:89), brainstorming

offers management to learn from all that mater in

their respect fields of operation so that friction

7

would be minimized. As noted by Panyom (2010:181),

brainstorming is the secret that guides the

success of emerging management philosophies in

Japan and South Korea. He noted that it helps

management carry everybody along. He also noted

that the only difference in the Far East model

with the rest of the Western nations is that the

bearer of the responsibility is still the

management in the Western model while it is a

collective responsibility in Japan. Otherwise, he

noted, the modus operandi is the same. Nnamdi

(2010:89), opined that brainstorming has to

operate in the framework of managerial competence

of harnessing the resources of the enterprises to

make valuable contributions to foster the course

of the organization. He noted that everybody has

meaningful input to make. Peterside (2011:112),

8

stated that brainstorming places responsibility on

every worker, especially the affected ones, to

make valuable inputs which management cannot

ignore unless it wants to crash; and for

organizations to survive and grow in today’s

business environment, there is always a tendency

to maximize profit, which calls for a total

overhaul of all the management processes and

functions. Total quality management is called into

play to harness all areas for maximum yield. These

include marketing, production, stores, material

sourcing as well as accounts and records. It is

therefore against this background that the

research wishes to x-ray the applicability of

quality management in AMA Breweries PLC.[

1.2 STATEMENT OF THE PROBLEM

9

Total Quality Management has not been fully

understood by AMA Breweries PLC, 9th Mile Corner

Enugu. Lack of full application and/or

understanding of TQM in AMA Breweries has resulted

to poor policy formulation by management which

greatly affects output. Also management has not

fully applied the aspect of TQM which involves

employees in key decision making and this has

retarded employee’s personal creativity.

Management of AMA Breweries has not duly employed

the technique of TQM that calls for brainstorming

with all stakeholders.

Periodic structural adjustment techniques of TQM

have not been fully implemented in AMA Breweries

Plc which has meant that new information

technology techniques that ease production and

improve productivity have not been implemented.

10

AMA Breweries Plc has always monitored quality at

every stage of brewing and packaging. The market

has become fragmented into small market segments.

This in turn, requires greater emphasis on

branding, packaging and promotions, even as total

quality management has become very popular among

manufacturing companies in Nigeria. This is

occasioned by the shift from production

orientation to market orientation. Though the aim

of the business may differ, the consumer remains

the focal point. Adapting to new consumer demands

in a global market is very crucial for long term

success. But TQM involves more than a mere change

of quality control technique.

Variations in TQM practice and implementations

have a difficult proposition in Nigeria. In

addition, because there are no official guides

11

concerning TQM rollout and because TQM is often

only embraced by the big and wealthy companies,

small organizations and enterprises usually make

little or no effort at adopting TQM as a

philosophy. At best the small organizations only

choose and implement the appealing and attractive

components of TQM. The result is a mountain of

burden of cost with no tangible rewards to show

for it. Thus, TQM is seen as white elephant

project by many in the industry. This belief is

not helped by the litany of failures that is the

hallmark of TQM implementation even for the big

organizations in Nigeria. The inevitable outcome

is that Nigeria companies are not able to compete

in the global market place where the customer is

king. Inevitably, this creates a yearning for an

implementation and best- practice guide for TQM

12

philosophy in Nigeria companies. Nigerian

Breweries, with its international affiliation and

penchant for quality brands presents a very good

platform to study TQM in Nigeria.

Management depends on the inputs from the

respective units to make far reaching and valuable

decisions that would effect changes in the

enterprise. Most often, each department submits

its requisitions to management which may not get

to the extent of involvement and the results

expected. Decisions taken in such circumstances

without adequate inputs by the people involved

often boomerang. The processes in management have

to elicit responses from workers whose inputs are

vital to the impeaching decisions. Management may

decide to consult them or leave them; the later

choice has unfolded influences on the progress of

13

the company. In a manufacturing outfit like

Nigerian Breweries, there are many departments and

each department is made up of very many sections

and units. Each section and unit has unique

functions to perform which requires unique

decisions at each stage. The problem has been that

the intricacies of Total Quality Management are

not adequately studied, so that management in

these organizations still very much relies on the

experience of the manager rather than on

collective inputs of the affected employees. This

often makes management loose cohesiveness of its

workforce, not assess and positively influence

customer complaints very well, not discover

ingenuity of workers, not reward workers according

to their productivities, not better assess the

impact of the policies of government and labour on

14

the company product as well as impacting

favourably on customers.

To these effects, the inevitable consequences of

lack of TQM in manufacturing firms include:

- Poor policy formulation and implementation.

- Inadequate employee involvement.

- Poor structural support techniques for TQM

- Inadequate brainstorming to solving contingent

problems

- Poor application of information communication

technology, etc

1.3 THE OBJECTIVES OF THE STUDY

The main objective of the study is to evaluate the

impact of total quality management in the

breweries industry. The specific objective of the

study includes:

15

1. To identify the nature of positive

correlation between policy formulation and

implementation and TQM at AMA Breweries Plc.

2. To access the extent of significant

relationship between employee involvement and

achievement of TQM practices in AMA Breweries

Plc.

3. To verify how structural support techniques

positively improve TQM Practices at AMA

Breweries.

4. To verify how Brainstorming positively

improves TQM practices at

AMA Breweries Plc.

5. To verify the extent of significant

relationship between information

communications technology and achievement

of TQM results at AMA Breweries Plc.

16

1.4 RESEARCH QUESTIONS

The following research questions are formulated

for the study;

1. What is the nature of correlation between

policy formulation and implementation and Total

Quality management at AMA Breweries?

2. How significant is the relationship between

employee involvement and achievement of TQM

practices in AMA Breweries Plc?

3. To what extent do structural support

techniques positively improve

TQM practices at AMA Breweries Plc?

4. How does Brainstorming improve TQM

practices in AMA Breweries Plc?

5. To what extent is the relationship between

information communications technology and

achievement of TQM results at AMA Breweries Plc.

17

1.5 RESEARCH HYPOTHESES

The following hypotheses are formulated:

H1: There is positive correlation between policy

formulation and

implementation and TQM.

H2: There is significant relationship between

employee involvement and achievement of TQM

practices.

H3: Structural support techniques positively

improve TQM practices.

H4: Brainstorming positively improves TQM

practices.

H5: There is significant relationship between

information communications technology and

achievement of TQM results.

1.6 SIGNIFICANCE OF THE STUDY

18

The study shall benefit the management of Nigerian

Breweries, as well as other manufacturing sectors

in understanding how better to handle challenges

facing the application of TQM. It will help them

relate with their workers better as well as

eliciting positive responses among the customers.

Employees shall benefit as management shall

explore the industrial relations policies that

favour its operations. Besides, ingenuity in the

workforce shall be soon discovered for the good of

the enterprise. The Researcher herself and general

public shall find the work very useful in

assessing better ways of increasing efficiency.

1.7 SCOPE OF THE STUDY

This study was concerned with applicability of TQM

in the brewery industry, specifically, the study

shall limit itself to identifying the nature of

19

positive correlation between policy formulation

and implementation and TQM, the extent of

significant relationship between employee

involvement and achievement of TQM practices, how

structural support techniques positively improve

TQM Practices, how Brainstorming positively

improves TQM practices as well as the extent of

significant relationship between information

communications technology and achievement of TQM

results in AMA Breweries Plc.

1.8 LIMITATIONS OF THE STUDY

The respondents initially felt unease responding

to questionnaire. They thought it was a ploy to

pry into their privacies. However, the Public

Relations Department of AMA Breweries helped in

diffusing the fears of the respondents by assuring

them of the academic nature of the questionnaire.

20

This prolonged the time for the completion of the

study.

References

Chase R. B, Aquilano N.J, Jabobs R.F. (2001).Operations Management for Competitive Advantage, 9/eNew York: John Wiley.

Crosby P.B (2002). Quality is free: The art of making Qualitycertain, New York; Prentice-Hall.

Dale, B.G. (2011). TQM: An overview. In B.G. Dale(Eds;), Managing Quality 3rd ed., Oxford, UK:Blackwell-Business.

Drucker P. (2009). Principles of Management New York:McGraw Hill Books Inc.

James, R. Evans and James, Dean (2010). Applicabilityof Total Quality Management organization, 5e NewJersey: Prentice-Hall Inc.

21

Martin B. and Barthol A. (2009). Management, NewYork: McGraw Hill Books Inc.

McDons J. (2010). Management Techniques in the Industry,New York: McGraw Hill Books Inc.

MacPetas B.M.C. (2001) Managing Change, London:Macmillan Publishers.

Muo, IK (2011). Understanding Business Communication.Lagos: Impressed Publisher

Morgan, C., & Murgatroyd, S. (2007). Applicability ofTotal Quality Management in the public sector.Buckingham, UK: Open University Press.

Nnamdi E.S. (2004). Managing Industrial Relations in NigeriaAba: Ngwaland Publishers.

Okes D, Westcott R.T, (2011). Certified QualityManager Handbook, 2/e Milwaukee, Wisconsin: ASQQuality Press.

Oakland J.S (2003). Applicability of Total QualityManagement London:

Open Press.

Pedro C.J. (2011). Brainstorming and Quality ControlLondon: Chapman and Hall Inc.

Robbins S. P, (2010). Organizational Bahaviour 1 l/eNew Dehli: Prentice Hall of Indiai4sPvateCompany.

CHAPTER TWO

REVIEW OF RELATED LITERATURE

22

2.1 THE CONCEPT OF TOTAL QUALITY MANAGEMENT

Quality is everyone’s business is an often quoted

cliché, but ‘Everything is everyone’s business,

and so quality often becomes nobody’s business.

The responsibility for quality often becomes

nobody’s business. The responsibility for quality

begins with the determination of the customer’s

quality requirements and continues until the

service or product is accepted by a satisfied

customer. Total Quality Management technique,

developed by Juran, Crosby and others, helps to

define the real purpose of each department, with

the objective of improving performance and

breaking down departmental barriers. It leads to

an understanding and agreement on the key

processes of each group. The department can then

liaise with its immediate ‘suppliers and

23

‘customers’ often internally, to identify

potential or actual problem areas and

simultaneously carry out an analysis of what

proportion of time it spent on the key activities.

This begins the change from departmental to

process management thinking.

Group discussion during the TQM process usually

yields many good ideas for improvement, either

eliminating wasteful activity or improving the

quality of output from the department. Everyone

becomes and should then remain aware of the prime

purpose of the department, and the focus on

efficiency and reducing waste usually carries

through to all work activities. The manager of the

department, who should run the exercise, must

understand the TQM process and why it is necessary

and important. He/she needs to be open-minded

24

towards change, and to encourage department, who

should run to question whether all their

activities add value to the product, service or

business. One of the greatest barriers to

improvement through TQM is the ‘but we’ve always

done it that way response.’

According to Mctolmes (2006:90), the basic steps

of TQM are: 1. From the TQM group 2. Brainstorm to

list all the departmental tasks 3. Agree to the

five main tasks 4. Define the position and role of

the departmental managers at AMA Breweries Plc 5.

Review the main activities, and for each one

identify the ‘customer(s)’ and supplier(s) at AMA

Breweries Plc 6. Consult the customer (s) and

supplier(s) by means of a suitable questionnaire.

This should be very similar to the list of

questions for interrogating any customer-supplier

25

interface 7. Review the customer-supplier survey

results and brainstorm how improvements can be

made in AMA Breweries Plc 8. Prioritize

improvements to list those to be tracked first,

and plan how. 9. Implement the improvement plan,

maintaining encouragement and support in AMA

Breweries Plc 10.

2.2 APPLICATION OF TOTAL QUALITY MANAGEMENT

TQM has proven itself as a way of managing and

continuously improving quality in an organization.

The successful implementation of TQM in Japanese

firms was responsible for success of Japanese

products all over the world and has set the

benchmark of quality for any made in Japanese

product. Suffice it to say that the Japanese

economy benefited greatly from the successful

implementation of TQM.

26

Globally, the benefits of TQM include greater

competition advantage and massive financial

savings. So many terms and slogans have evolved

from the TQM movement, such as first time right,

zero defects, loss reduction, the internal

customer, competitive bench-marking, cost of

quality, team work, self management, self

inspection etc. Behind the word and concepts are

techniques, actions and methods. Instead of

focusing on products and services in isolation,

they are analysed in their internal connection

with business process and the people who do the

work. The winner in this is the organization and

its customers.

Ho (2005:4) notes that TQM is the totally

integrated effort for gaining competitive

advantage by continuously improving every facets

27

of an organization’s activities. Looking at each

word:

Total - Everyone associated with the company is

involved in continuous improvement (including its

customers and suppliers if feasible).

Quality - Customers’ expressed and implied

requirements are fully met Management - Executives

are fully committed. Ho observes further that TQM

has variants of definitions:

1. TQM is described as the mutual cooperation of

everyone in an organization and association

business processes, in order to produce

products and services which meet and hopefully

exceed the needs and expectations of

customers, (Dale, 2004:15).

28

2. TQM is an approach to improve competitiveness,

efficiency and flexibility for the whole

organization, (Oakland, 2006:62).

3. TQM is an evolving system, consisting of

practices, tools and training methods for

managing organizations in a rapidly changing

context. The system provides customer

satisfaction and improves the performances of

organizations by eliminating product defects

and speeding service delivery, Shiba et al.,

2003:91).

4. TQM is a corporate structure that is

characterized by increased customer

satisfaction through continuous improvement

that involves all employees in the

organization, (Dahlgaard et al. 2004:62)

29

5. TQM is a management philosophy that seeks to

integrate all organizational functions

(marketing, finance, design, engineering

production, customer service, etc) to focus on

meeting customer needs and organizational

objectives, (Khurram and Hashmi, 2007:24)

6. TQM is a method by which management and

employees can become involved in the continuous

improvement of the production of goods and

services. It is combination of quality and

management tools aimed at increasing business and

reducing losses due to wasteful practices.

7. TQM is a management approach for an

organization, centered on quality, based on

the participation of all its members and

aiming at long-term successes through customer

satisfaction and benefits to all members of

30

the organization and to society, (ISO -

International Organization for

Standardization)

From the definition and description above we can

sieve the following as the common denominators

i. Customer focus and satisfaction

ii. Improvement in employees’ competence

iii.Leadership and top management commitment

iv. Team work

v. Employee Innovation

vi. Continuous Improvement and Innovation

vii.Quality information and performance

measurement

According to Bergman and Klefsjo (2003:92), TQM

consists of some core values as illustrated in the

figure 2.1.

31

Fig 2.1: TQM seen as a continuously evolving

management system consisting of values, techniques

and tools.

Values Tools

Top management Focus on people

Affinity diagram Isikawa diagram Commitment Tree diagram Design matrix Base decision on facts

Process maps Design matrix Improve continuously

Control charts

Focus on customers Let everybody be committed ISO

9000

TECHNIQUESQuality circles Bench marking

Quality function Development

Employee Self assessment Development Design of experiments

TOTAL Policy development QUALITY Process management MANAGEMENT Supplier partnership

Source: Helisten U and Klefsjo B. (2000)

32

To fully understand and appreciation TQM, one

needs to explore its historical evolution from

quality management.

2.3 TQM: HISTORICAL PERSPEPTIVE

If there is anything the scholars of TQM are

unanimous about it is the history of TQM at AMA

Breweries. According to Garvin (2008:4), most

manufacturing in the eighteenth and nineteenth

centuries was done by artisans and skilled

craftsmen who had no quality control measures.

Formal inspection becomes necessary only with the

rise of mass production and the need for

interchangeable parts. Jigs, fixtures (devices

that position tools or hold parts while they are

being worked on) and gauging systems were

developed to reduce variations in parts produced.

33

According to Garvin (2008:5), inspection

activities were linked more formally to quality in

the early 1920s. Most writers credit the

publication of Shewhart W. A’s Economic Control of

Manufactured Product which was published in 1931

as a watershed for the quality movement. In this

publication a Shewhart W.A introduced the concepts

of statistical Quality

Control.

Thus, Modern quality management can be traced back

to the mid 1 920s in United States of America and

has since had a profound impact on modern business

history (United Nations Industrial Development

Organization UNIDO’s Roadmap to Quality (Vol. 1,

2007:26). In the 1950s, just after World War II,

Japanese companies, dissatisfied with the quality

of their products, looked to the western experts

34

for solution. Two, largely ignored names came to

fore, W. Edwards Deming and Joseph M. Juran. These

men went to Japan to teach them about statistical

quality control which idea had earlier been

propagated by Sterwhart. W.

In just two decades the Japanese were able to turn

to the situation around.

Japanese products became the epitome of quality.

According to Ho S. K, It was not until the 1 980s

that the quality movement returned to America.

Other important contributors to the quality

movement are Crosby, Feigenbaum and Ishikawa.

Collectively these men are known as the quality

gurus. To develop a good insight into TQM, we

ought to explore the teachings of these quality

gurus and the principles they espoused –

35

2.3.1 Deming’s Philosophy

Deming is possibly the most famous of the quality

gurus. Born at the beginning of the Twentieth

century, he obtained his doctorate in mathematical

physics in 1928. According to Abomihed (2001:

p15), Deming’s began teaching statistical quality

control in Japan shortly after World War II.

Deming’s perspective on quality is based on two

definitions; Quality to him is multidimensional,

to produce a product or to deliver a service that

meet the customer’s expectations so as to ensure

customer satisfaction. The sources of his

arguments are

1. That quality must be defined in terms of

customer satisfaction

2. Quality is multidimensional where it is

impossible to define the quality of a product

36

or service in terms of single characteristics

or agent and

3. There are different degrees of quality,

because quality is essentially equated with

customer satisfaction (Deming, 2003:54).

Deming’s quality philosophy centered on reduction

of variation and uncertainly in the manufacturing

process. Similarly inconsistency in services

resulted in frustrated customers and a battered

image for the; company. In Deming’ s view, higher

quality led to higher productivity, which in turn

led to long term competitive advantage.

The Deming chain reaction theory states that

process improvements lead to lower costs due to

less rework, fewer mistakes, delays and snags and

more efficient sure of materials. Lower costs, in

turn, led to productivity improvements. With

37

better quality and lower prices the firm can

achieve a greater market share and remain

competitive and provide more meaningful rewarding

jobs (Deming, 2003:16)

Deming was also an advocate of change management.

He envisioned the “New Climate” (Organizational

culture) which consists of three elements

Joy in work

Innovation

Co-operation

Deming is most popular for his 14 points for

management (Deming, 2000:91) which he suggested as

the best way to help management understand and

implement the necessary transformation. Scholars

refer to it as Deming’s contribution to TQM.

Deming’s 14 Points

38

1. Create constancy of purpose for improvement of

product and services:

He advocated a radical new definition for a

company’s role. To him, money is better made by

staying in business and providing jobs through

innovation, research, constant improvement and

maintenance.

2. Adopt the new philosophy: Management needs to

take leadership for change into leaning

organization.

3. Cease dependence on mass inspection: Eliminate

the need for mass inspection by building

quality into the products.

4. End awarding business on price: Aim at minimum

total cost and aim towards single supplier.

5. Improve constantly and forever the system of

production and service: Improvement is not a

39

one-time effort. Management is obligated to

continually look for ways to reduce waste and

improve quality.

6. Institute Training: Too often, workers leaner

from others who are not also normally trained.

This way mediocrity is enthroned and perpetuated.

7. Institute Leadership: The job of a supervisor

is not to tell people what to do nor to punish

them but to lead. Leading consists of helping

people do a better job and to learn by objective

methods.

8. Drive out fear: Fear often prevent people from

expressing themselves or challenging existing

stereotypes. To assure better quality and

productivity, it is necessary that people feel

secure.

40

9. Break down barriers between departments: Too

often a company’s department or units are

competing with each other or have KPLs that

conflict. They do not work as a team. They can not

come together and foresee and solve problems

together. Improvement in one department may

have deleterious effect on another department.

10. Eliminate slogans, exhortations and numerical

targets for the workforce: Jobs are not done by

hackneyed and slogans, but by a committed

workforce. Let the workers chose their own

slogans.

11. Eliminate numerical quotas or work standards:

Most quotas take into account numbers without

considering quality or method. Employees strive

to achieve quotas even if it hurts the company in

41

other ways. It is better to enthrone

leadership

12. Remove barriers to taking pride in

workmanship: People are willing to do a good job

and are often distressed when they cannot. Too

often, faulty equipment, defective materials and

misguided supervisors, stand in the way of good

performance. These barriers must be removed.

13. Institute a vigorous program of education:

Both management and the workforce will have to be

educated in new knowledge and technology.

14. Take action to accomplish the transformation:

It requires special top management involvement to

carry out the quality mission. Everyone

stakeholder needs to be adequately mobilized to

realize this.

42

Deming last contribution to the quality movement

was contained in his system of profound knowledge

(Deming, 2003:21). Profound knowledge encompasses

four interrelated dimensions.

• Appreciation of a system

The emphasis here is to understand relationship

between functions and activities. The strategic

aim of the company is for all stakeholders

(employees, shareholders, customers, suppliers and

the environment) to win. While it may be easier to

optimize sub-systems, this may not necessarily

lead to optimization of the entire system.

One major source of sub-optimization is short term

measures like

1. The monthly or quarterly results. Companies

often make them look good by, deferring

repairs/maintenance, payments, orders of

43

materials etc which end up hurting the

company.

2. Ship out everything on hand towards the end of

a financial year even if it does not meet

quality standards

3. Investing pension funds immediately

Knowledge of Statistics

This includes knowledge about variation, process

capability, control charts, interactions and loss

functions. All these needs to be understood to

accomplish effective leadership, teamwork and so

on. There are two causes of variation; special and

common. Special causes of variation in a product,

process or service are those which prevent its

performance from remaining constant. These special

44

causes are often easily assigned, change of

operator, shift or procedure. They can also easily

be eliminated. Common causes on the other hand

those due to design, or the operation of the

process or system which appear after special

causes have been eliminated. These require

management action to be eliminated.

Deming identified two kinds of mistakes

Error 1: To react to any fault, complaint,

mistake, breakdown, accident, shortage as if it

comes from special causes when in fact it comes

from the random variation due to common causes

Error 2: To attribute to common causes any fault,

complaint, mistake, breakdown, accident, shortage

when it comes from special causes

Theory of Knowledge

45

The underlying theory and knowledge must be

understood before success can be effectively

copied. Operational objectives put meaning into

concepts. We need to know precisely what procedure

to use in order to measure or judge something, and

we need and unambiguous decision-rule to tell us

how to act on the result obtained.

Knowledge of Psychology

The science of human interaction must be

understood by management.

Extrinsic motivations must not be allowed to

smother intrinsic motivations. There must be the

desire to learn irrespective of age and position.

2.3.3 Joseph M. Juran’s Philosophy

Joseph Juran was born in the US about 1904. He

started out as an engineer in 1924. Like Deming,

46

Juran went over to Japan in the early 105 Os, just

after World War II. There, he conducted seminars

for top and middle- level executives. His lectures

had a strong managerial flavour and focused on

planning and organizational targets for

improvement. He emphasized that quality control

should be conducted as an integral part of

managerial control.

Juran believed that main quality problems were due

to management rather than workers. The attainment

of quality requires activities in all functions of

a firm. Firm-wide assessment of quality, supplier

quality management, using statistical methods,

quality information system and competitive bench-

marking are essential to quality improvement.

Juran’s approach is emphasis on tams (QC circles

and self managing teams) and project work which

47

can promote quality improvement, improve

communication between management and employee co-

ordination and improvement coordination among

employees. Juran also emphasized the importance of

top management commitment and empowerment,

participation, recognition and rewards (Juran and

Gryna, 2001: 126-128).

It is very important to understand customer needs.

This requirement applies to all involved in

marketing, design, manufacture, and services.

Identifying customer needs requires more vigorous

analysis and understanding to ensure products

specification. Thus, market research is essential

for identifying customer needs. In order to ensure

design quality, he proposed the use of techniques

including quality function deployment,

48

experimental design, reliability engineering and

concurrent engineering.

Juran (2010:30) developed the idea of Quality

Triology: quality planning, quality improvement,

and Quality control. In his view, approach to

managing quality, consists of: the sporadic

problem is detected and acted upon by the process

of quality control. The chronic problem requires a

different process, namely, quality improvement;

such problems are traceable to an inadequate

quality planning process. Juran’s defined

universal sequence of activities for the three

quality processes are listed in table 2.1

Table 2.1: Juran’s Universal Process for Managing

Quality

Quality Planning Quality Control Quality Improvement

49

Establish quality

goals

Identify

customers

Discover customer

needs

Develop product

features

Develop process

features

Establish process

control

Transfer to

operations

Choose control

subjects

Choose units of

measure

Set goals

Create a sensor

Measure actual

performance

Interpret the

difference

Take action on the

difference

Prove the need

Identify projects

Organize project

teams

Diagnose the causes

Provide the

remedies, prove

remedies are

effective

Deal with resistance

to change

Control to hold the

gains

Source: Juran on planning for quality (2007).

Another major contribution of Juran was his four

broad categories for quality costs. The four

quality costs are:

Internal failure costs (scrap, rework, failure

analysis etc), associated with defects found

prior to transfer of products to the customer.

50

External failure costs (warrantee charges,

complaint adjustment, returned material,

allowances etc) associated with defects found

after product is shipped to the customer.

Appraisal cost (incoming, in-process and final

inspection and testing, product quality

audits, equipment calibration costs etc),

incurred in determining the degree of

conformance to quality requirements.

Prevention costs (quality planning, new

product review, quality audits, supplier

quality evaluation training, etc), incurred in

keeping failure and appraisal costs to a

minimum.

2.3.4 Philip Crosby’s Approach

Philip Crosby was born in 1026, began his quality

career as a reliability engineer. He participated

51

in the Martin missile experience that led to the

zero defects movement and later he worked in

quality management for ITT. Crosby’s name is name

is best known in relations to the concepts of Do

it Right First and zero Defects. Crosby defines

quality as conformance to the requirements which

the company itself has established for its

products based directly on its customer’s needs.

Crosby (2007:4) identified a number of important

principles and practices for successful quality

improvement program, which include, for example,

management participation, management

responsibility for quality, employee recognition,

education, reduction of cost of quality

(prevention costs, appraisal costs and failure

costs), emphasis on prevention rather than after-

the-event inspection, doing things right the first

52

time and zero defects. Crosby presented the

quality management maturity grid, which can be

used by firms to evaluate their quality management

maturity. The five stages are:

Uncertainty

Awakening

Enlightenment

Wisdom and

Certainty

These stages can be used to assess progress in a

number of measurement categories such as

management understanding and attitude, quality

organization status, problem handling, cost of

quality as percentage of sales and summation of

sales quality posture.

53

Crosby (2002:41) offers a 14 step program that can

guide firms in pursuing quality improvement. They

are

1. Management commitment: Management stance on

quality should be made clear.

2. Quality improvement team: To facilitate

quality improvement program

3. Quality measurement: To monitor non-

conformance problems in a way that permits

objective evaluation and correction actions.

4. Cost of Quality: To define components of cost

of quality, explain its use as a management

tool.

5. Quality Awareness: To provide a method of

raising the personal concern felt by all

personnel in the company toward the

54

conformance of the product or service and the

quality reputation of the company.

6. Corrective Action: To provide a systematic

method of resolving forever the problems that

are identical through previous action steps.

7. Zero defects Planning: To investigate the

various activities that must be conducted in

preparation for formally launching the zero

defects program

8. Supervisor Training: To define supervisor

training in order to actively carry out their

part of quality improvement program.

9. Zero defects day: To create an event that will

make all employees realize, through a personal

experience that there has been a change.

10. Goal setting: To turn pledges and commitments

into actions by encouraging individuals to

55

establish improvement goals for themselves and

their groups

11. Error causal removal: To give the individual

employee a method of communicating with

management the situation that makes it

difficult for the employee to meet the pledge

to improve.

12. Recognition: To appreciate those who

participate

13. Quality councils: To bring together the

professional people for planned communication

on a regular basis

14. Do it again: To emphasize that the quality

improvement cycle never ends

2.3.5 Armand Feigenbuam’s Approach

Feigenbaum (2004:64), defines Total Quality

Control as an effective system for integrating the

56

quality development, quality maintenance and

quality-improvement efforts of the various groups

in a firm so as to enable, marketing, engineering,

production, and services at the most economical

levels which allow for full customer satisfaction.

He goes on to state that effective quality

management consists of four main stages:

Setting quality standards

Appraising conformance to those standards

Acting when standards are not met

Planning for improvement in these standards.

Feigenbaum established 9 fundamental factors

affecting quality viz Markets, money, management,

men, motivation, materials, machines and

mechanization, modern information methods and

mounting product requirements (Feigenbaum

2002:59). These however, can be reduced to two

57

broad categories; (1) Technological factors

(including processes) and (2) Human factors.

Feigenbaum emphasized that the human factors were

far more significant. He considered top management

commitment, employee participation, supplier

quality management, information system,

evaluation, evaluation, communication, use of

quality costs, and use of statistical technology

to be essential component of TQC. He posited that

effective employee training and education should

focus on the following three main aspects: Quality

attitude, quality knowledge and quality skills.

2.3.6 Kaoru Ishikawa’s Approach

Professor Ishikawa was born in 1915 and by 1939

had graduated from the Engineering Department of

Tokyo University. Ishikawa is best known as a

pioneer of the quality Circle movement in Japan.

58

According to Ishikawa (2005:123), quality

management extends beyond the product; it

encompasses after-sales-service, the quality of

management, the quality of individuals and the

firm itself. Ishikawa advocate employee

participation as the key to the successful

implementation of TQM. Quality circles, he stated,

was an important vehicle in achieving this. He has

been associated with the development and advocacy

of universal education in the seven QC tools. The

tools are

Pareto charts

Cause and effect diagram (Ishikawa diagram)

Stratification chart

Scatter diagram

Check sheets and

Histogram

59

Control chart

Ishikawa (1985) goes on to state that the

assessment of customer requirements serve as a

tool to foster cross-functional cooperation,

selecting supplier should be on the basis of

quality rather than solely on price; cross-

functional teams are effective ways for

identifying and solving quality problems.

Ishikawa’s concept of TQM contains the following

six fundamental principles;

Quality first not short-term profit first.

Customer orientation not producer orientation

The next step is your customer-breaking down

the barrier of

sectionalism

Using facts and Data to make presentations-

utilization of statistical methods

60

Respect for humanity as a management

philosophy, full participatory management

Cross-functional management

2.4 BRAINSTORMING AS A TOTAL QUALITY MANAGEMENT

TECHNIQUE

According to Jones (2002:43-45), teams have a

number of roles to play as a component in a

process of continuous improvement Teams can: Aid

the commitment of people to the principle of TQM

Provide an additional means of communicator

between individuals, management and their direct

reports, across functions with customers and

suppliers Provide the means and opportunity for

people to participate in decision making about how

the business operates. Improve relationships,

develop trust and facilitate co-operative

activity. Help to develop people and encourage

61

leadership traits. Build collective responsibility

and develop a sense of ownership. Develop problem

solving skills Facilitate awareness of improvement

potential, leading to behaviour and attitude

change. Help to facilitate a change in management

style and culture. Solve problem. Facilitate

awareness of improvement potential, leading to

behaviour and attitude change Help to facilitate a

change in management style and culture Imbibe a

sense of accomplishment Improve the adoption of

new products to the production line. Improve the

adoption of new products to the production line.

Improve morale. Improve operating effectiveness as

people work in a common direction through

interaction and synergy. The American Society for

Quality Control (ASQC) (1993) commissioned the

Gallup Organization to assess employee attitudes

62

on teamwork, empowerment and quality improvement.

The survey of 1,293 adults focused on a variety of

topics: including, extent of participation in

quality teams, employee feelings of empowerment,

and effects of technology and teamwork on

empowerment.

Types of Teams

According to McDonnes (2004:69), in the superior

performing organization teamwork is second nature.

For example, the senior management work together

as an effective team, managers of the various

operating and functional units act as a team,

people from different functions co-operate in the

team activities which are needed in Unilever

simultaneous engineering, benchmarking, supplier

development, quality management series

registration and internal audits. In addition to

63

teamwork within functions it is common to find

teams working together across the business.

In some cases (e.g. Crosby methodology 1979) teams

are hierarchal in nature- a corrective action team

is formed on a directive from a quality

improvement team. Unless effective team working

and cohesion is seen at the top of an

organization, it is unlikely that the managers

will be able to encourage their employees to work

effectively in teams. The superior performing

organizations use a variety of ways to facilitate

teambuilding. Improve relations and reinforce the

teamwork ethic. For example Dale and Huke (1996:

125) writing about their experiences in Hong Kong

give examples such as carnivals, team

competitions, social and recreational activities,

and entry into the dragon boat race competition.

64

Project Teams

As discussed earlier why senior executive should

become involved in the drive to improve originates

at the top of an organization. If senior

management identifies the main problems facing the

organization, key improvement issues can be

developed which are then allocated amongst their

membership for consideration as a one-off project.

The project owner selects employees to constitute

a team which will consider the improvement issue.

The owner can either lead the team personally or

act as ‘foster parent’ ‘sponsor’ or ‘guardian

angel’ to the team. Through participation in

project teams, managers better understand the

problem solving process and become more sensitive

to the problems faced by other types of teams. The

65

senior management project team is one example of

this type of team, but there are others.

2.5 QUALITY CONTROL TECHNIQUES

Quality Circle (QCs) when operated in the

classical manner, have characteristic which are

different from other methods of teamwork. They

have been the subject of many books (Huchins 1985,

Mohr and Mohnr 1983 and Robson 1984) and the focus

of much research (Bradley and Hill 1983, Hayward

et al. 1985 and Hill 1986) almost to the exclusion

of research on other types of team activity.

However, QCs, in the classical sense, have not

been too ‘successful’ in Western organizations.

Hayward et al 1985) indicates that this is because

they were introduced at a time in the West when

organization did not fully understand the

principles and practices of TQM. A vast amount of

66

experience was however acquired in the operation

of QCs, much of which has been well documented. It

is suggested that any organization wishing to

develop effective team work and resolve some of

the issue which arise in the operation of teams

should consult the written wisdom on QCs. There

they will find many clues on facilitation, problem

solving skills, organization of meetings and

maintaining the momentum.

2.6 TOTAL QUALITY MANAGEMENT AS ORGANIZED PROBLEM

SOLVING TECHNIQAUES

People work in chains of activities that

collectively form business processes. TQM focused

organizations seek to improve the process of

delivering a service or product than individual or

67

departmental performance or competence. Processes

consist of a chain of customer/supplier

relationships. System failure- when the link in

the chain breaks- when the flow of work is

disturbed. We have all learnt to live with and

accept failures. System failures have become a

standard because we view each step or function of

our activities and not the total process.

Competitive Benchmarking

Comparing one company’s performance with that of

another is a reflex of TQM. Reilly (2006:14)

argues for competitive benchmarking as a

continuous management process that helps firms

assess their competitive capability and

themselves, and to use that knowledge in designing

a practical plan to achieve superiority in the

market place. It also helps firms to strive to be

68

better than the best competitor. The measurement

takes places along the three components of total

quality programme products and services, business

processes and procedures and people. The idea is

to benchmark performance, not only with ones

direct competitors but with other firms as well to

discover best practices and bring such practices

back to ones own company. When done correctly,

competitive benchmarking produces the hard facts

needed to plan and execute effective business

strategies that fully satisfy agreed customers

requirement.

2.7 TOTAL QUALITY MANAGEMENT AS PERFORMANCE

APPRAISAL TECHNIQUES

Relevance of an appraisal process

Folunso (2006:36), noted that any organization

needs to consider the relevance of an appraisal

69

process to its short-and medium-term outlook. For

organizations in deep trouble the introduction of

an appraisal process is unlikely to be a top

priority. If the organization has unacceptably

high staff turnover, the causes need to be

understood before judging whether appraisal will

help. Organization undergoing major changes in

reporting relationships need to settle a little

before appraisal can contribute. However, when

some stability emerges, the introduction of

appraisal can help appraiser and appraise develop

mutual understanding of each other’s roles and

establish a foundation for high performance. The

introduction of appraisal. For the process to have

a chance of operating, there needs to be a

‘critical mass’ of people, particularly at middle-

management level, who agree that the introduction

70

of appraisal will take the organization forward,

even if they agree for different reasons.

2.8 TEAMWORK DYNAMICS AS DECISION SPRINGBOARD

IN TOTAL QUALITY MANAGEMENT

In DPA everybody is involved in the process of

quality management from the managing director down

the ranks of management to the junior office

clerk, the laborer and janitorial staff. Everybody

in the company is responsible for producing

quality goods and services and cutting the cost of

quality. This comprehensive approach to total

quality can capture the creativity and energy of

the entire work force. Usually, this is done in

teams. People are given some total quality

training in the natural work groups and then

unleashed in quality improvement teams.

2.8.1 The Objectives of TQM

71

Total quality management has five objectives but

in the course of this study, emphasis will be laid

on its importance towards employee motivation

which has been considered an important tool for

increased productivity in Nigeria organization.

These objectives include the following:

2.8.2 The Obsession with Quality

The first objective of TQM is to create an

obsession with quality in an organization. This

obsession is created among employees of all kinds

in all areas. Indeed, everything is affected,

inputs, activities, processes, structures,

procedure, relationship, result, everything. At

this stage, it becomes necessary to give a broad

explanation of what is meant by the word quality.

At the heart of TQM is the conviction that it is

possible to achieve defect free work most of the

72

time. This assertion has been framed in different

ways by different authorities of quality

management. According to Edward Deming (1986)

quality could be interpreted in terms of

reliability, and as conformance to specification.

Juran (1990) however disagrees with this

interpretation. He defines quality as ‘fitness for

use or purpose’ and argues for that definition

instead of conformance to specification. In

Crosby’s view quality was defined in terms of zero

defects. He talks about the possibility of doing

things right the first time and all the time. TQM

can only help an organization to create an

obsession with quality first by radically

redefining the meaning of quality and secondly by

enabling an organization to put in place and

sustain a continuous quality improvement. Under

73

TQM, all employees come to understand that quality

means consistently providing defect free products

and services in a way that fully meets or exceeds

the stated’ agreed requirement of he customer.

2.9 FAILURE MODE AND EFFECTS ANALYSIS (FMEA) AS A

PROCESS OF TOTAL QUALITY MANAGEMENT

The technique of FMEA is a systematic and

analytical quality planning tool for identifying

at the product, service and process design stage,

what potentially could be wrong either with a

product during its manufacture or end-use by the

customer or with the provision of service. The use

of FMEA is a powerful aid to advanced quality

planning of new products and services. Its

effective use should lead to a reduction in

defects during the production of initial samples

and in volume production. Customer complaints,

74

failure in the filed, performance-related

deficiencies, warranty claim, improved customer

satisfaction and confidence as products and

services are produced from robust and liable

production and delivery methods.

According to Juran (2001:98), there are two

categories of EMEA: design and process. Design

FMEA assesses what could, if not corrected, go

wrong with the product in service and during

manufacturing as a consequence of a weakness in

the design. Design FMEA also assists in the

identification or confirmation of critical

characteristics. Process FMEA is mainly the design

FMEA also assists in the identification or

confirmation of critical characteristic. Process

FMEA is mainly concerned with the reasons for

potential failure during manufacturing and in

75

service as a result of non-compliance with the

original design intent, or failure to achieve the

design specification.

2.10QUALITY FUNCTION DEPLOYMENT (QFD) AS QUALITY

PROOF IN TOTAL QUALITY MANAGEMENT.

The QFD methodology was developed in Japan at Kobe

Shipyard, at Mitsubishi Heavy Industries. It arose

out of a need to achieve simultaneously a

competitive advantage in Quality Cost and Delivery

(QCD). All the leading companies in Japan use QFD.

It is based on the philosophy that the voice of

the customer’s drives all company operations.

According to Tokyalk (2004:90), the technique

seeks to identify those features of a product or

service which satisfy the real needs and

requirements of customers (market or customer

required quality). This Analysis also takes into

76

account discussions with the people who actually

use the product, to obtain data on issues such as:

What they feel about existing products? What

bothers them? What features should new products

have? What is required to satisfy their needs,

expectations, thinking and ideas? It is usual to

express the customer’s needs in their original

words and then translate these needs into the

technical language of the organization.

The superior performing companies are using QFD to

identify product and service features (including

additional features) which customers will find

attractive, and help to charm and delight them. In

this way differentiating quality characteristics,

features and/or technical advantages can be

established between the organization and its

competition. These requirements, features and

77

specifications are then translated into design

requirements and then deployed through each phase

in the ‘manufacturing’ style to ensure that what

is delivered to the customer truly reflects

his/her wants or needs. It provides the mechanism

to target selected areas where improvement would

enhance competitive advantages. QFD is a

systematic procedure to help build-in quality in

the upstream processes and in the early stages of

new product development. In this way it helps to

avoid problems in the downstream production and

delivery processes and shortens the new

product/service development time. It promotes pro-

active rather than re-active development. QFD

employs a step-by-step approach from customer

needs and expectation through the four planning

phases of: (1) Product planning (2) Product

78

development (3) Process planning (4) Production

planning through to manufactured products and

delivered services.

In endeavoring to meet the objective of delighting

the customer, conflicting issues often arise and

some trade-offs are made in a logical manner.

Translating customer objectives and wants (termed

a what) into product or service design how (i.e.

the produce planning and design concept-phase 1)

this voice of the customer’ is the starting point

for QFD and drives the process.

2.10.1 TQM Concept and Working Framework

Having examined the contribution of the quality

Gurus and the various quality awards, it is now

appropriate to explore this labyrinth called TQM.

Over time the frontiers of TQM has continued to

expand, like a vortex, sucking-up new systems and

79

developing new constructs. Perhaps the ambiguity

in TQM lies in the scope of meaning. Hansen J.

(2003) quoting Helisten and Klefsjo (2000) see TQM

as a management system in continuous change

consisting of values, methodologies and tools.

This model is based on eleven TQM should be

committed to establishing a firm that sees quality

as the first primary goal (Dale, 2007:62).

2.10.2 Supplier Quality Management

Suppliers are major stakeholders in a business and

thus are an important link in its drive towards

TQM. This construct includes all management

initiative aimed at the suppliers to help improve

and sustain quality:

Partnership with suppliers

Supplier selection criteria

Participation in supplier development

80

Supplier performance evaluation

Supplier quality Audits

Supplier Communication Vision and plan

Statement

Vision statement is a detailed visualization of

the desired future state of the overall business

and serves as the target for which all strategies,

goal and standards are established. Corporate

vision is the high level or distant expectations,

goals and aspirations of an organization (Onukogu

2004:25).

This construct compasses all efforts at the

strategic level to embed TQM into the organization

Vision Statement

Quality policy

Overall business performance plan.

Product quality Goal

81

Quality improvement plan

Formation of vision and plan

2.10.3 Evaluation

According to Onukogu (2004:93) strategy deals with

the choice of actions taken in order to achieve

the set objectives defined within the corporate

policies domain. The three levels of strategy

hierarchy: corporate, business and departmental

must be taken into account. Other areas include

Evaluation of strategy

Evaluation of overall business performance

Evaluation of Department’s performance

Evaluation of Employee performance

Quality Audits

Bench-marking

Quality costs

Information systems

82

2.10.4 Process control and Improvement

This construct examines all the activities taken

to control or improve quality in the company; it

includes the following

Shop floor control

Process capability (the extent of the measure

of a firm’s production systems ability to meet

design specifications)

Equipment maintenance innovation

Inventory management

Inspection

Use of Quality tools

2.10.5 Product Design

This involves all effort and activities at the

design stage (e.g. assembly plant layout) aimed at

controlling and improving quality. This construct

includes the following concurrent engineering

83

(corporate relationships throughout process design

stage)

Reliability engineering

Designing for manufacturability

Design of experiments

Quality function deployment

Value Engineering (aimed at reducing

unnecessary cost before producing product or

service)

Computer aided design

2.10.6 Quality System Improvement

This is aimed at the improvement of the quality

system. It examines those activities done to

improve the quality systems and includes

Quality manual

Quality system Procedures

Work Instructions

84

ISO 9000 Certification

2.10.7 Employee Participation

This is aimed at measuring the participation of

employees in quality management. The others

include

Cross-functional teams

Quality control (QC) circle

Within Functional team (team whose aim is to

solve or investigate problems/opportunities

within the same department and is normally

disbanded after the risk is complete).

Information communication

Employee suggestion

Improvement employee commitment

Job rotation

Worker’s congress

85

Trade union

2.10.8 Recognition and reward

Measure how well instituted the recognition and

reward programs are in a firm. The constituent

are:

Recognition and reward programs

Working environment improvement

Salary promotion

Bonus Scheme

Position Promotion

Moral Awards: (Used to recognize the quality

performance of employees or teams, usually in

the form of thank you notes etc)

Penalty

2.10.9 Education and Training

Is a measure of education and training initiative

to foster quality management? It should include:

86

Education and training plan

Team learning

Quality awareness education

Training for quality management Knowledge

Job training

Formal education promotion

2.10.10 Customer Focus

This is a measure of how customer-focused a firm’s

drive for quality management. This construct

includes the following

Customer complaint information

Market investigation

Customer satisfaction survey

Quality warranty

Customer service

Customer information system

87

2.11SUMMARY OF THE REVIEW OF RELATED LITERATURE

What introducing TQM in organization the major

preoccupation is whether lower level employees

would support the process and how the anticipated

resistance would be overcome, According to Iyayi

(1994), 80 percent of resistance to TQM comes from

20 percent of employees located in management

levels. The most important challenge therefore

that TQM pose for any organization in our

environment is overcoming management resistance

not to change but to TQM The commitment to quality

cannot be really taken seriously by employees and

indeed by other managers where a single manager

allows the integrity of operations to be

compromised. The integrity of operations is

compromised when a manager engages in double

standards. It is compromised when; a manager puts

88

pressure on the system to let him or her get away

with things that are obviously wrong. The

integrity of operations is compromised when a

manager does not lead by example and fails to see

himself as the standard by which the quality of

operations is judged. It is compromised when, as a

management team, we build into the environment

work conditions that indicate contempt for lower

level employees.

The TQM gurus provide different dimensions and

flavours to the TQM concept. It must be emphasized

that what we know today as TQM has evolved from

the ideas of these gurus. The common themes in

their ideas is outlined below:

1. It is management’s responsibility to provide

commitment, leadership, empowerment,

encouragement and support to technical and human

89

processes. It is top management’s

responsibility to determine the environment and

framework of operation within a firm. It is

imperative that management foster the

participation of employees in quality

improvement, and develops a quality culture by

changing perception and attitude towards

quality.

2. The strategy, policy and firm-wide evaluation

activities are emphasized

3. The importance of employee education and

training is emphasized in changing employees’

beliefs, behaviour and attitude; enhancing

employees abilities in carrying out their

duties

4. Employees should be rewarded and recognized

for their quality improvement efforts

90

5. It is imperative to control the processes and

improve quality systems and product design. The

emphasis is on prevention of quality defects not

on inspection after the event.

6. Quality is a systematic firm-wide activity

from suppliers to customers. All functional

activities such as marketing, design, engineering,

purchasing, manufacturing, inspection,

installation and services must be involved in

quality improvement efforts.

2.11.1 Quality Management Awards

To underscore the importance of quality

management, several countries have set up

national awards to be given to businesses that

excel in quality management. The essence of

this here is that it highlights the mission

critical areas of quality management and helps us

91

to further narrow the scope and concept of TQM.

While these awards may not explicitly be called

TQM awards it is obvious that the award

criteria are modeled after TQM.

2.11.2 USA’s Malcolm Baldrige National Quality

Award (MBNQA)

The Baidrige Award is given by the president of

the United States to businesses - manufacturing

and service, small and large and to education and

healthcare organizations that apply and are

adjusted to be outstanding in seven areas:

Leadership, strategic planning, customer and

market focus, information and analysis, human

resource focus, process management and business

results (http :/www.

quality.nist.gov/Foundation.htm). The Award is

named after a US secretary of Commencer in 1981-

92

1987, who was a strong proponent of quality

management as a veritable tool to the country’s

prosperity and long-term strength. He died

suddenly after a Rodeo accident. Congress

established the Award program 1987 to recognize

U.S organizations for their achievements in

quality and performance and to raise awareness

about the importance of quality and performance

excellence as a competitive edge. Figure 2.2 shows

a system perspective for the Baldrige criteria for

performance excellence Framework.

93

Fig 2.2 Baidrige Criteria for Performance Excellence

Framework

Organizational profileEnvironment, relationships and Challenges

4Measurement, Analysis and knowledge management

94

1Leadership

2Strategic Planning

5Workforce focus

7Result

3Customer and market

6ProcessManagement

Source: Baidrige Criteria for Performance Excellence

Framework (2009)

A system Perspective measurement and analysis

management

The Baldrige criteria fit quite well with the

Deming philosophy of quality. There is a strong

emphasis on the non-procedural aspects of quality

such as leadership. Human resource management,

including employee wellbeing and morale, as well

as customer satisfaction.

Table 2.2: 2008 Criteria for Performance

Excellence-item listing

S/

N

Malcolm Balrige Award Requirement

(2007)

Max. Val Evaluati

on

1 Leadership (120)

Senior Leadership 70

95

Government and social Responsibility 502 Strategic Planning (85)

Strategic Development

Strategy Deployment

40

453 Customer and Market (85)

Customer and market knowledge

Customer relations and satisfaction

40

454 Measurement, Analysis and Knowledge

Management

Measurement, Analysis and improvement

of organizational performance

Measurement of information, Information

Technology, and Knowledge

45

45

5 Work force focus (85)

Work force engagement

Work force environment

35

506 Process management (85)

Product and service outcomes

Work Process management and Improvement

35

507 Result (450)

Product and service outcomes

Customer Focused outcomes

Financial and market outcomes

Work focused outcomes

Process Effectiveness outcomes

Leadership outcomes

100

70

70

70

70

708 Total 1000

Source: http:/www.quality.nist.gov/Foundation.htm.

96

2.11.3 The Deming Prize

The Deming prize was established by the Board of

Directors of the Japanese Union of Scientists and

Engineers, JUSE in 1951 to companies with

outstanding TQM. The prize is given for the

overall performance of the company. In fact the

Deming Prize has been described as the best known

prize with the longest history. The Deming Prize

has proved an effective instrument for spreading

TQM philosophy throughout the Japanese industries.

There are 10 primary elements in the Deming

Application Prize (2001:112), as well as

checklists that are used to evaluate the

performance of senior executives. These items are

listed in table 2.3

97

Table 2.3 Deming Application Prize 10 Primary Elements.

S/N Elements1 Policy

-Quality and quality control policies and their place in

overall business management

-Clarity of policies (target and priority measures)

-Methods and processes for establishing policies;;

Relationship of policies to long-an short term plans

Commitment (deployment) of policies and grasp and

management of achieving policies

Executives and managers leadership2 Organization

- Appropriateness of organizational structure for quality

control and status of

98

employee involvement

- Clarity of authority and responsibility

- Status of interdepartmental coordination

- Status of committees and project team activities

- Relationship with associated companies (group

companies, vendors,

contractors, sales companies etc.)3 Information

-Appropriateness of collection and communication external

information

-Appropriateness of collecting and communicating internal

information

-Status of applying statistical techniques to data

analysis

-Appropriateness of information retention

-Status of utilizing information

-Status of utilizing computers for data processing4 Standardization

-Appropriateness of system of standards

-Procedure for establishing, revising and abolishing

standards

-Actual performance in establishing, revising and

abolishing standards

-Contents of standards

-Status of utilizing and adhering to standards

-Status of systematically developing, accumulating,

handling down and utilizing technologies.5 Human Resources

-Education and training plans and their development and

99

results utilization

-Status of quality consciousness, consciousness in

managing jobs and understanding of quality control

-Status of supporting and motivating self development and

self realization

-Status of understanding and utilizing statistical

concepts and methods

-Status of QC circle development and improvement

suggestions

-Status of supporting the development of human resources

in associated companies6 Quality Assurance

-Status of managing the quality assurance activities

system

-Status of quality control diagnosis

-Status of new products and technology development

(including quality analysis, quality deployment and

design review activities.

-Status of process control

-Status of process analysis and process improvement

(including process

capability studies)

-Status of process analysis and process improvement

(including process capability studies)

-Status of inspection, quality evaluation and quality

audit

-Status of managing production equipment, measuring

instrument and vendors

-Status of packaging, storage, transportation sales and

100

service activities

-Grasping and responding to product usage, disposal

recovery and recycling

-Status of quality assurance

-Grasping of the status of customer satisfaction Status

of assuring reliability, safety, product liability and

environmental

Protection

7 Maintenance

-Rotation of management (PDCA) cycle control activities

-Methods of determining control items and their levels

-In-control situation (status of utilizing control charts

and other tools)

-Status of taking temporary and permanent measures

-Status of operation management systems for cost,

quality, delivery etc.

-Relationship of quality assurance system to other

operating management

Systems

8 Improvement

-Methods of selecting themes (important activities,

problems and priority

issues)

-Linkage of analytical methods and intrinsic technology

-Status of utilizing statistical methods for analysis

-Utilization of analysis results

-Status of confirming improvement results and

transferring them to

101

maintenance/control activities

-Contribution of QC circle activities9 Effects

-Tangible effects (such as quality, delivery, cost,

profit, safety and

environment)

-Intangible effects

Methods for measuring and grasping effects

Customer satisfaction and employee satisfaction

Influence on associated companies

Influence on local and international communities10 Future Plans

-Status of grasping current situation

-Future plans for improving problems

-Projection of changes in social environment and customer

requirement and

future plans based on these projected changes

-Relationships among management philosophy, vision and

long-term plans

-continuity of quality control activities

Concreteness of future plans

Source: http://www.deming.org

2.11.4 The European Foundation for Quality

Management Award

102

The European Quality Award EQA was launched during

the 1991 European Foundation for Quality

Management (EFQM) meeting in Paris. The aim of the

EFQM and of the award is specially geared to

encourage the development of ATQM. The award aims

to recognize organizations who are paying

exceptional attention to total quality, and to

encourage others to follow then like the Japanese

Deming prize Award and the US Mancolm Baldrige

Award (1995; 232). As shown in fig 2.3 the EQA is

divided into two parts; and strategy, resources

and processes. These five aspects steer the

business and facilitate the transformation of

inputs to outputs. The output results are people

satisfaction, customer satisfaction, impact on

society and business results the measure of the

level of output attained by AMA Breweries Plc.

103

Fig 2.3: EFQM Business Excellence Model

Enablers Results

Innovation and learning

Source: http://www.eog.org

2.12 NIGERIA BREWERIES PLC

2.12.1 Brief Historical Background

Nigeria Breweries has its history firmly rooted in

colonial background. First was the formation of

United African Company in 1977 by British

imperialist, George Goldie Taubman. This later

104

Leadership

People

Policy &Strategy

Partnership &

Processes

KeyPerformanceResults

Peopleresult

Customerresult

Societyresult

became the Royal Niger Company after it was

granted a royal charter in 1886. Lever brothers (a

subsidiary of Unilever conglomerate) took over the

shares of the Royal Niger Company in 1921

(Ogunbiyi, 2007: 39). In 1929, feuding British

Africa and Eastern Trade Corporation and French

Compagnie du Niger Francais came together to form

the United African Company UAC, which emerged as

the dominant trading company of the region.

(Ogunbiyi, 2007:40). Heineken, a Dutch brewing

company, was exporting beer to West African

through UAC, but companies were looking for

opportunities to establish a brewery in Nigeria.

According to Ogunbiyi, in the book, 60 years of

wining in Nigeria,

105

“So it was that on 16 November, 1946, UAC and Heineken signed a

contract for the incorporation of Nigeria Breweries Limited in the capital

city of Lagos, with a share capital of £300, 000.”

2.12.2 A Breweries Giant is born

While UAC was responsible for the commercial and

administrative management of the new company,

Heineken was to provide technical control. In June

21 1949, the first Nigeria brewed bottle of beer

rolled off the bottling line in Iganmu. The beer

was called star beer. By 1954 the company reached

the first one million carton units mark and had

captured about 20% of the beer market in Nigeria.

From that time the company has never looked back.

It started producing star in Aba brewery in May

1975. By 1960 the capital base of the company had

106

increased to £1,500,000:00. Kaduna brewery was

commissioned in 1964 and Heineken as a brand was

first produced in 1965. The franchise to produce

Heineken locally lasted for only ten years due to

change in government policy. The civil war years

of 1967 to 1970 brought immense challenge to the

brewery but with its able and dynamic leadership

it emerged from the civil were unscathed. Gulder

as a brand was born immediately after war, 1970.

Its launch was accompanied by expansions in the

existing breweries of Lagos Aba and Kaduna. By

1976 another major brand, this time in the soft

drink category was born. The brand was called

Maltina. Ibadan brewery was commissioned in 1982

to reduce the pressure on the existing breweries

which were stretched to the limits at that time.

Ibadan brewery was the most modern brewery in

107

Africa at the time it was built. This modern

brewery in Africa at the time it was built. This

honour was then passed on to AMA brewery with a

capacity of three million sector liters. AMA was

to produce fifty percent of the company’s total

production.

2.12.3 Brand Portfolio

The company currently has the following products

in its port folio

1. Star beer

2. Gulder beer

3. Gulder Max

4. Heineken beer

5. Legend ale beer

6. Amstel malta

7. Maltina

8. Fayrouz

108

The first two, Star, Gulder are lager beers and

come in 60c1 bottles. Heiniken lager comes in 60c1

bottles and 33c1 bottles. Legend on the other hand

is a dark ale beer that comes in 33c1 bottles.

Maltina is also a soft drink that comes in 33c1

bottles.

2.12.4 Locations

Nigeria breweries have its breweries strategically

distributed in Nigeria. Headquarters is located in

Lagos which also serves as offices for the

directors of the company. The breweries and their

locations are shown in

Table 2.4: Nigeria Breweries Locations

Brewery

Location

Address Installed

Capacity

109

Lagos

Brewery

3 Abebe Village Rd

Iganmu Lagos

2.7 million

HectolitersAba Brewery #3 Factory Road Aba 1.2 million

HectolitersKaduna

Brewery

5 Kachia Road Kaduna 1.8 million

HectolitersIbadan

Brewery

Old Ife Road Ibadan 2.4 million

HectolitersAMA Brewery Amaeke-Ngwo Road 3 million

Hectorliters

Source: Nigeria Breweries Plc Annual Report (2011)

2.12.5 Organizational Chart

The company has a thirteen-man board of directors,

comprising a non- Executive Chairman, Managing

Director and Chief Executive, five executive

directors and six non-executive directors. The

executive management chart is shown in fig 2.5

110

Figure 2.5 Executive Management Chart

Source: Nigeria Breweries Plc Year Book (2011)

Fig 2.6: Organizational Chart of Brewery

Department of NB Plc

Each Brewery location is headed by a Brewery

manager, who reports to the supply chain Director.

The organizational Chart for a Brewery is shown

below in fig 2.6

111

MD/CEO

SalesDirect

Marketing

SupplyChain

Directo

HumanResource

Finance Direc

BreweryManager

Source: Nigeria Breweries Plc Year Book (2011)

112

Packaging

Finance

Logistics

HumanResource

Brewing Manager

Engineering

Technology

CorporateAffairs

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118

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

3.1 RESEARCH DESIGN

The design of the study was the survey research

design. As a survey research study, the primary

source of data collection was used through the

administration of questionnaires as well as the

oral interview to elicit the necessary data from

the respondents. The percentage method of data

analysis will also used to analyze the responses

of the respondents. While the hypotheses

formulated in chapter one were tested using the

sample proportion statistics.

119

3.2 POPULATION OF THE STUDY

The population of the study included the

management and staff of Nigerian Breweries Plc, 9th

Mile corner. There are a total of two thousand,

four hundred and forty-six (2,446) including

permanent and casual staff of the company.

3.3 SOURCE OF DATA COLLECTION

The two main sources of data used in this research

study were primary sources and secondary sources.

Primary Sources: The primary sources included the

questionnaire and personal interviews. The

questionnaire contained 27 well structured close

ended questions. The close ended questions

permitted the respondents to choose options which

best suit their opinion to the questions raised.

120

Secondary Sources: This includes data collected

from relevant text books, journals, newspapers,

magazines, published facts and internet.

3.4 SAMPLE SIZE DETERMINATION AND DISTRIBUTION

The sample size is three hundred and forty-three.

It was got from the population using Yameni’s

Statiscal Distribution Formula (1964:57)

N = N 1 + Ne2

Where N = Population

n = Sample Size

e = Allowable Sampling error taken at

5%

2446 = 3431 + 2446 (0.05) (0.05)

We then allocated the sample size to each of the

population stratum, using this formula stated.

121

Senior managers = 27 x 343 = 4

2446 1

Middle managers = 300 x 343 = 42

2446 1

Junior staff = 2119 x 343 = 2972446 1

Total 343

The respondent in each company shall be: managers,

supervisors, factory workers and field workers

(marketers).

3.5 RELIABILITY OF THE STUDY

The questionnaire will be tested for consistency

by using Test and Re-test technique. In this

method, the respondents were given the

questionnaire twice, without their knowledge, in

two separate intervals. Any inconsistent

respondent from the same person to one particular

122

questionnaire is discarded. This method is also

called split half method because it splits the

questionnaire into two batches. Pilot study was

conducted to determine the authenticity of the

research instrument by asking some twenty retired

staff of Ama Breweries whether the study was worth

carrying out. Twelve, representing 60% of success

in the population (p), said it was, with 8

dissenting, representing 40% of population failure

(q).

3.6 VALIDATION OF RESEARCH INSTRUMENT

The questionnaire was given to specialists in Data

Analysis as well as in Measurement and Evaluation

who perused them and made valuable contributions

123

that informed re-writing of many to suit what is

intended.

Finally, the supervisor them before they were

distributed.

3.7 METHOD OF ADMINISTRATION OF RESEARCH INSTRUMENT

A copy of the questionnaire was given to each of

the respondents. They were constructed both

structurally and unstructurally to give variety of

responses to the respondents. In the structured

questionnaire, the respondents are given options

to choose from, while they are not given in the

unstructured one.

Table 3.1: Questionnaire response rateSource: Field Survey, February, 2012

Respondents Distributed

Returned

%Returned

Senior Managers 20 15 75.00Middle Managers 80 65 76.00Junior Staffs 243 220 90.53Total 343 300 87.00124

3.8 AREA OF THE STUDY

The study was carried out at AMA Breweries Plc at

Ninth Mile Corner Enugu the manufacturing site of

the firm. Ninth Mile Corner is in Udi local

government area of Enugu. The position of Ninth

Mile is a high commercial verve center linking the

South East with the Northern part of the country.

3.9 METHOD OF DATA ANALYSIS

The data collected from the study was analyzed

using Percentage Distribution Formula thus:

r x 100n 1

r = number of variable response to each

questionnaire

n = total number of responses to each

questionnaire

125

In testing the hypotheses formulated for the

study, the sample proportion statistics was used:

Ps - ppq n

Ps = proportion of success in the sample

relevant questionnaire

p = proportion of success in the population

from pilot study

= 0.60

Q = 1 – p = proportion of failure in the

population from pilot study

= 0.40

n = observable sample size = number of respondents

to each relevant questionnaire. (See Appendix 11)

DECISION CRITERION

126

To accept any hypothesis, the rule was:

Do not reject Ho (null hypothesis), if and only

if, Table Value (TV) is greater than Calculated

Value (CV), Reject otherwise.

The table value was taken at 5% level of

significance. The table is shown below from normal

table.

Level of

significance 5%

One tail Two tail

Table value 1.645 1.96

The graph for the critical region is shown below.

127

Do not

Reject HO reject HO

Reject HO

2.5% 2.5%

Questionnaire was distributed to 343 respondents,

out of which 300 returned, representing a response

rate of 87%. The response rate table is given

below.

128

CHAPTER FOUR

PRESENTATION, ANALYSIS AND INTERPRETATION OF DATA

4.1 Introduction

In this chapter, data for this study were analyzed

and presented based on the research questions and

hypotheses that guided the study. Frequency tables

and percentages were used in the presentation.

Each table contains information on the responses

to the research questions. However, the

presentation commenced with the background

information of the respondents.

4.2 Background Information of the Respondents

129

Table 4.1 shows the distribution of length of

service of the respondents in the study area – AMA

Breweries Plc.

Table 4.1 Length of Service of Respondents

Number of years No of

Respondents

Percentage

0 – 5 40 13.336 – 15 178 59.3316 – 25 75 25.00

25 and above 7 2.33Total 300 100.00

Source: Field Study June 2012

Table 4.1 shows that forty (40) respondents

representing 13.3% have served the company between

0 – 5 years, one hundred and seventy eight (178)

respondents representing 59.3% have served the

company between 6 – 15 years, seventy five (75)

respondents representing 25.0% have served the

company between 16 – 25 years, while the balance

130

of seven (7) respondents representing 2.3% have

served the company between 25 and above. The

implication of this is that greater proportion of

the respondents have requisite experience and

knowledge to give a reliable response.

On the other hand, table 4.2 shows the age range

of the respondents:

Table 4.2 Age Range of Respondents

Age Range No of

Respondents

Percentage

0 – 20 50 16.6721 – 29 79 26.3330 – 39 100 33.3340 and above 71 23.67Total 300 100Source: Field Study June 2012

The analysis in table 4.2 shows the age range of

the respondents. One hundred (100) representing

131

33.33% of the respondents are within the age

bracket of 30 – 39years; seventy nine (79)

representing 26.33% of the respondents are within

the age bracket of 21 – 29 years; seventy one (71)

representing 23.67% of the respondents are 40

years and above, while fifty (50) representing

16.67% of the respondents are within the age

bracket of 0 – 20 years. The implication of this

is that greater proportion of the respondents have

requisite knowledge to give a reliable response.

Table 4.3 shows the distributions highest

educational qualifications of respondents in the

study area – AMA Breweries Plc.

Table 4.3 Highest Educational Qualifications of

Respondents

Qualification No of

Respondents

Percentage

132

FSLC 15 5.00O’ LEVEL 90 30.001ST DEGREE 150 50.00HIGHER DEGREE 25 8.33OTHERS 20 6.67Total 300

100.00Source: Field Study June 2012

The analysis from table 4.3 shows that fifteen

(15) representing 5% of the respondents have First

School Leaving Certificate, Ninety (90)

representing 30% have O’ Level. Those with first

Degree or its equivalent were one hundred and

fifty (150) which represent 50% of the

respondents. Twenty five (25) representing 8.33%

of the respondents have other higher degrees,

while the balance of twenty (20) representing

6.67% of the respondents have other qualifications

other than the ones mentioned above. The

133

implication of this is that greater proportion of

the respondents have requisite knowledge and

academic qualification to give a reliable

response.

Table 4.4 Shows the Sex Distribution of

Respondents in the study area – AMA Breweries

Table 4.4 Sex Distribution of Respondents

Sex No of

Respondents

Percentage

MALE 220 73.33FEMALE 80 26.67Total 300

100.00Source: Field Study June 2012

The analysis in table 4.4 shows that two hundred

and twenty (220) representing 73.33% of the

respondents are male, while the balance of eighty

(80) representing 26.67% of the respondents are

134

female. The implication of this is that as greater

number of the respondents are male, the result may

be gender biased.

4.3 Nature of Correlation between Policy

Formulation and implementation and TQM in

AMA Breweries.

Table 4.5 shows the distribution of awareness of

TQM of the respondents in the study area – AMA

Breweries Plc.

Table 4.5 Whether the Respondents are Aware of

TQM

Response No of

Respondents

Percentage

YES 180 60.00NO 120 40.00

135

Total 300 100.00

Source: Field Study June 2012

The analysis in table 4.5 shows that one hundred

and eighty (180) representing 60% of the

respondents actually understand what TQM is all

about, while the balance of one hundred and twenty

(120) representing 40% of the respondents are

either not aware of TQM or have slight

understanding of what it is all about. The

implication of this is that in spite the fact that

greater number of the respondents are aware of

TQM, a good number of the staff are not aware, and

this good for the firm at all.

136

Table 4.6 shows the distribution of response to

whether TQM is the concern of every department in

the study area – AMA Breweries Plc.

Table 4.6 Whether TQM Concerns Every Department

Response No of

Respondents

Percentage

QUALITY CONTROL 0 0.00

PRODUCTION 0 0.00

MARKETING 0 0.00

ALL DEPARTMENTS 300 100.00

Total 300

100.00

Source: Field Study June 2012

The analysis in table 4.6 shows that all the

respondents confirmed that there is no special

department that handles TQM, as every department

in the company ensures that TQM is achieved. The

137

implication of this is that TQM is seen as

everybody’s business.

Table 4.7 shows the distribution of how

organizations policies attract TQM in the study

area – AMA Breweries Plc.

Table 4.7 How organization’s policies attract TQM

Response No. of

Respondents

% Response

VERY HIGH 63 21HIGH 44 14.67AVERAGE 40 13.33LOW 27 9

138

VERY LOW 116 38.67NONE 10 3.33Total 300 100

Source: Field Study June 2012

Analysis in table 4.7 shows that sixty three (63)

representing 21% of the respondents rated the

effect the implementation of TQM very high, forty

four (44) representing 14.67% of the respondents

rated it as high, forty (40) representing 13.33%

of the respondents rated it as average, twenty

seven (27) representing 9% of the respondents

rated it as low, one hundred and sixteen rated it

as very low, while the balance of ten (10)

representing 3.33% of the respondents responded

none. The implication of this is that there

significant correlation between formulation and

implementation of TQM at AMA Breweries.

139

Table 4.8 shows the distribution of whether TQM is

everybody’s business in the study area – AMA

Breweries Plc.

Table 4.8 Whether TQM is everybody’s Business in

the firm

Response No of

Respondents

Percentage

SPECIFIC OFFICERS - 0.00EVERY EMPLOYEE - 0.00BOTH 300 100.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.8 shows that all the

respondents confirmed that the business of TQM is

not left only for special officer saddled with the

responsibility of handling TQM, as everybody in

the company ensures that TQM is achieved. The

140

implication of this is that TQM is seen as

everybody’s business.

Table 4.9 Shows whether TQM Practice in the firm

Change Often

Response No of

Respondents

Percentage

YES 200 66.67NO 40 13.33NOT SURE 60 20.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.9 shows that two hundred

(200) representing 66.67% of the respondents agree

that TQM practice in the firm changes very often,

forty (40) representing 13.33% disagree, while the

balance of sixty (60) representing 20% of the

respondents were undecided. The implication of

141

this is that majority of the respondents could

actually identify changes in TQM practice in the

firm.

Table 4.10 shows the distribution of whether TQM

practice emphasizes process and quality service

delivery in the study area – AMA Breweries Plc.

Table 4.10 Whether TQM Practice Emphasizes Process

Speed and Quality Service Delivery in the AMA

Breweries.

Response No of

Respondents

Percentage

YES 300 100.00NO - 0.00NOT SURE - 0.00Total 300

100.00Source: Field Study June 2012

142

The analysis in table 4.10 shows that all the

respondents confirmed that TQM practice in the AMA

Breweries emphasizes process speed and quality

service delivery. The implication of this is that

TQM practice in AMA Breweries is comprehensive.

Table 4.11 Analysis How Government Policies Affect

TQM at AMA Breweries Plc.

Rate No of

Respondents

Percentage

GREATLY 200 67.67MODERATELY 90 30.00LITTLE 10 3.33NONE - 0.00Total 300

100.00Source: Field Study June 2012

143

Analysis in table 4.11 shows that two hundred

(200) representing 67.67% of the respondents

believed that government policies affect the

implementation of TQM greatly, ninety (90)

representing 30% of the respondents said

government policies affects it moderate, while the

balance of ten (10) representing 3.33% of the

respondents said it only little effects on it. The

implication of this is that greater percentage of

the staff of AMA Breweries understand the impact

of government policies on TQM practice in the

firm.

4.4 Relationship Between Employee Involvement and

Achievement of TQM Practice in AMA Breweries.

144

Table 4.12 shows how TQM involves a selling Point

for the Products of AMA Breweries.

Response No of

Respondents

Percentage

YES - 100.00NO 300 0.00NOT SURE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.12 shows that all the

respondents confirmed that TQM practice in the AMA

Breweries does not involves a selling Point for

the products of AMA Breweries. The implication of

this is that TQM practice in AMA Breweries is

comprehensive.

Table 4.13 shows whether respondents are members

of the TQM Department/Committee of the AMA

Breweries.

145

Response No of

Respondents

Percentage

YES 30 10.00NO 270 90.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.13 shows that two hundred

and seventy (270) representing 90% of the

respondents are not members/staff TQM

department/committee of the AMA Breweries while

the balance of thirty (30) representing 10% of the

respondents are members/staff TQM

department/committee of the AMA Breweries

emphasizes process speed and quality service

delivery. The implication of this is that TQM

practice in AMA Breweries is comprehensive.

146

Table 4.14 shows whether Employees are allowed to

make input in the Improvement process of TQM

in the AMA Breweries.

Response No of

Respondents

Percentage

YES 300 100.00NO - 0.00NOT SURE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.14 shows that all the

respondents confirmed that employees in AMA

Breweries are allowed to make input in the

improvement process of TQM in the organization.

The implication of this is that TQM practice in

AMA Breweries is comprehensive.

147

Table 4.15 Shows how Societal Value and Culture

Affect TQM at AMA Breweries Plc.

Rate No of

Respondents

Percentage

GREATLY 200 67.67MODERATELY 90 30.00LITTLE 10 3.33NONE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.15 shows that two hundred

(200) representing 67.67% of the respondents

believed that societal value and culture affect

the implementation of TQM greatly, ninety (90)

representing 30% of the respondents said societal

value and culture affects it moderate, while the

balance of ten (10) representing 3.33% of the

respondents said it only little effects on it. The

148

implication of this is that greater percentage of

the staff of AMA Breweries understand the impact

of societal value and culture on TQM practice in

the firm. Also, the people’s value and culture has

a lot to do with their perception of quality.

Table 4.16 Shows the rate of Application of TQM to

Customer Service and Customer Satisfaction

at AMA Breweries Plc.

Rate No of

Respondents

Percentage

VERY IMPORTANT 200 67.67IMPORTANT 90 30.00AVERAGELY IMPORTANT 10 3.33NOT IMPORTANT - 0.00Total 300

100.00Source: Field Study June 2012

149

The analysis in table 4.16 shows that two hundred

(200) representing 67.67% of the respondents

believed that government policies affect the

implementation of TQM greatly, ninety (90)

representing 30% of the respondents said

government policies affects it moderate, while the

balance of ten (10) representing 3.33% of the

respondents said it only little effects on it. The

implication of this is that greater percentage of

the staff of AMA Breweries understand the impact

of government policies on TQM practice in the

firm.

150

Table 4.17 Shows the relationship between Employee

Involvement and Achievement of TQM Practices in

AMA Breweries

Variable No. of

Respondent

% Response

VERY HIGH 204 68.

00HIGH 33 11.00MODERATE 30 10.00LOW 10 3.33VERY LOW 11 3.67NONE 12 4.00Total 300 100Source: Field Study June 2012

The analysis in table 4.17 shows that two hundred

and seventy (204) representing 68% of the

respondents believed that the relationship between

employee involvement and achievement of TQM

practice in AMA Breweries is very highly, thirty

three (33) representing 11% of the respondents

151

said it is highly, thirty (30) representing 30% of

the respondents said it is moderate. Those who

described it as low, very low and of no effect

were 10, 11 and 12 respectively. The implication

of this is that entire staff understand the

relationship between employee involvement and

achievement of TQM practice in AMA Breweries.

4.5 How Structural Support Techniques Improve

TQM Practice in AMA Breweries.

Table 4.18 Shows the effect of Structural Support

Programme on TQM practice in AMA Breweries

Plc.

Rate No of

Respondents

Percentage

VERY HIGHLY 197 65.67HIGHLY 94 31.33MODERATELY 9 03.00LITTLE - 0.00NONE - 0.00Total 300

152

100.00Source: Field Study June 2012

The analysis in table 4.18 shows that one hundred

and ninety seven (197) representing 65.67% of the

respondents believed that organizational policies

affect the implementation of TQM very highly,

ninety four (94) representing 31.33% of the

respondents rated the effect as highly, while the

balance of thirty (9) representing 3% of the

respondents said it affects it moderately. The

implication of this is that structural support

programmes of the company have significant effect

on TQM practice in AMA Breweries.

153

Table 4.19 Shows the relationship Between

Quality Control and TQM in AMA Breweries

Plc.

Rate No of

Respondents

Percentage

VERY POSITIVE 270 90.00POSITIVE 30 10.00AVERAGE - 0.00LITTLE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.19 shows that two hundred

and seventy (270) representing 90% of the

respondents believed that there is very strong

positive relationship between quality control and

TQM, while the balance of thirty (30) representing

10% of the respondents said the relationship is

just positive. The implication of this is that the

154

quality control process of the company has strong

impact on its overall TQM.

Table 4.20 Shows the effect of TQM on

Profitability in AMA Breweries Plc.

Rate No of

Respondents

Percentage

VERY GREAT 250 83.33GREAT 30 10.00AVERAGE 20 6.67LITTLE - 0.00NONE - 0.00Total 300

100.00Source: Field Study June 2012

155

The analysis in table 2.20 shows that two hundred

and fifty (250) representing 83.33% of the

respondents believed TQM has a very great effect

on the company’s profitability, thirty (30)

representing 10% of the respondents said it has a

great effect on profitability, while the balance

of twenty (20) representing 6.67% of the

respondents said its effects is on the average.

The implication of this is that TQM is recognized

as having very significant effect on the

organizations profitability.

Table 4.21 Shows the impact of Public Relation on

TQM at AMA Breweries Plc.

156

Rate No of

Respondents

Percentage

VERY GREAT 270 90.00GREAT 30 10.00MODERATELY - 0.00LITTLE - 0.00NONE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.21 shows that two hundred

and seventy (270) representing 90% of the

respondents believed that public relations have

very great impact on TQM, while the balance of

thirty (30) representing 10% of the respondents

said it affects it just great. The implication of

this is that public relations of the company

affect her TQM practice.

157

4.6 How Brainstorming Improve TQM Practice in AMA

Breweries.

Table 4.22 Shows the effects of Brainstorming on

TQM practices in AMA breweries

Variable No. of

Respondents

% Response

Very positive 224 64.06Positive 6

7

22.33

Average

9

3.00

Negative

-

-

None -

158

-Total 300 100Source: Field Study June 2012

The analysis in table 4.22 shows that two hundred

and twenty four (224) representing 64.06% of the

respondents the effect of brainstorming on TQM

very positive, sixty seven (67) representing

22.33% of the respondents rate it as just

positive, while the balance of nine (9)

representing 3% of the respondents rated it as

moderate. The implication of this is that

brainstorming is identified as having significant

positive impact of on TQM in AMA Breweries.

159

Table 4.23 Shows the effect of Departmental

Purpose Assessment on TQM in AMA Breweries

Plc.

Rate No of

Respondents

Percentage

VERY HIGH 240 80.00HIGH 40 13.33ACERAGE 20 6.67LITTLE - 0.00NONE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.23 shows that two hundred

and forty (240) representing 80% of the

respondents the effect of departmental purpose

analysis on TQM as very highly, forty (40)

representing 13.33% of the respondents rated it as

high, while the balance of twenty (20)

representing 6.67% of the respondents rated it as

160

average. The implication of this is that

departmental purpose analysis has very positive

effect on TQM in AMA Breweries.

Table 4.24 Shows how Benchmarking affect TQM in

AMA Breweries Plc.

Rate No of

Respondents

Percentage

VERY GREATLY 270 90.00GREATLY 30 10.00MODERATELY - 0.00NEGATIVE - 0.00Total 300

100.00Source: Field Study June 2012

161

The analysis in table 2.24 shows that two hundred

and seventy (270) representing 90% of the

respondents rated the effect of benchmarking on

TQM as very high, while the balance of thirty (30)

representing 10% of the respondents rated it as

just high. The implication of this is that

benchmarking is identified as having strong effect

on TQM.

4.7 Relationship Between Information Communication

Technology and Achievement of TQM Result at

AMA Breweries.

162

Table 4.25 Relationship Between Information

Technology and TQM at AMA Breweries Plc.

Rate No of

Respondents

Percentage

VERY HIGH 206 68.67HIGH 73 24.33AVERAGE 18 6.00LOW 3 1.00VERY LOW - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 4.25 shows that two hundred

and six (206) representing 68.67% of the

respondents rated in relationship between

Information Technology and TQM in AMA Breweries as

very high, seventy three (73) representing 24.33%

of the respondents rated it high, eighteen (18)

representing 6% of the respondents rated it as

163

average, while the balance of three (3)

representing 1% of the respondents rated it as

low. The implication of this is that information

technology has significant impact on TQM practice

in AMA Breweries.

Table 4.26 Shows how TQM affect Data Processing

and Analysis at AMA Breweries Plc.

Rate No of

Respondents

Percentage

VERY GREATLY 180 60.00GREATLY 90 30.00AVERAGELY 30 10.00LITTLE - 0.00VERY LITTLE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table 2.26 shows that one hundred

and eighty (180) representing 60% of the

164

respondents rated the effect of TQM on data

processing and analysis as very high, ninety (90)

representing 30% of the respondent rated it as

high, while the balance of thirty (30)

representing 10% of the respondents rated it as

average. The implication of this is that TQM has

very significant effect on data processing and

analysis in AMA Breweries.

Table 4.27 Show how Partnering is affected by TQM

at AMA Breweries Plc.

Rate No of

Respondents

Percentage

VERY HIGHLY 240 80.00

165

HIGHLY 60 20.00MODERATELY - 0.00LITTLE - 0.00NONE - 0.00Total 300

100.00Source: Field Study June 2012

The analysis in table shows that two hundred and

forty (240) representing 80% of the respondents

rated the effect of partnering on TQM as very

high, while the balance of sixty (60) representing

20% of the respondents rated it as high. The

implication of this is that TQM has a significant

effect on partnering in AMA Breweries.

166

4.8 Hypotheses Testing

H1: There is positive correlation between policy

formulation and implementation and TQM

This is tested from responses in table 3:

Table 4.28: Correlation between policy formulation

and implementation and TQM

Variable No. of

Respondents

% Response

VERY HIGH 63 21.00HIGH 44 14.67AVERAGE 40 13.33LOW 27 9.00VERY LOW 116 38.67NONE 10 3.33Total 300 100 Source: Field survey, February, 2012

Ps = 63 + 166 = 229 = 0.65

167

300 300

p = 0.60, q = 0.40, n = 300

Z = Ps-p = 0.65-0.60 =2.07

pq 0.60 X 0.40 n

300

Table value = 1.96

Decision

Since 1.96 is not grater than 2.07 H01 is rejected.

This means that there is positive correlation

between policy formulation and implementation and

TQM. (See Appendix 11)

H2: There is significant relationship between

employee involvement and achievement of TQM

practices.

This is tested from responses from table 4:

Table 4: Relationship between employee involvement

and achievement of TQM practices in AMA breweries

168

Variable No. of

Respondent

% Response

VERY HIGH 204 68

.00HIGH 33 11.00MODERATE 30 10.00LOW 10 3.33VERY LOW 11 3.67NONE 12 4.00Total 300 100Source: Field Survey, February, 2012

Ps = 0.6471, P = 0.60, q = 0.40, n = 298

Z = Ps-p = 0.6471-0.60 pq 0.6 x 0.4 n 298

= 1.77

Table value = 1.645

Decision Rule:

Since 1.645 is not greater than 1.77, H02 is

rejected. This means than there is significant

169

relationship between employee involvement and

achievement of TQM practices.

H3: Structural support techniques positively

improve TQM practices.

This is tested from responses in table 5:

Table 5: Effects of structural support techniques on TQMpractices in AMA breweries

Variable No. of

Respondents

% Response

VERY HIGH 19

7

64.37

HIGH

94

31.33

AVERAGE

9

3.00

LOW -

-

NONE -

-

Total 30

0

100

Source: Field Survey, February, 2012

170

Ps = 0.6437,

p = 0.60, q = 0.40, n = 295

Z = Ps-p = 0.6437-0.60pq 0.60 x 0.40n 295

= 1.66

Table value = 1.645

Decision:

Since 1.645 is not greater than 1.66, HO3 is

rejected. This means that Structural support

techniques positively improve TQM practices.

H4: Brainstorming positively improves TQM

practices.

This is tested from responses in table 6:

Table 6: Effects of brainstorming on TQM practices in AMA

breweries

171

Variable No. of

Respondents

% Response

VERY POSITIVE 224 64.06POSITIVE 6

7

22.33

AVERAGE

9

3.00

NEGATIVE

-

-

NONE

-

-

Total 300 100Source: Field Survey, February, 2012

Ps = 0.6406,

P = 0.60, q = 0.40, n = 296

Z = Ps-p = 0.6406 – 0.60pq 0.60 x 0.40n 296

= 1.54

Table value = 1.645

172

Decision:

Since 1.645 is greater than 1.54, HO4 is not

rejected. This means that Brainstorming positively

improves TQM practices.

H5: There is significant relationship between

information communications technology and

achievement of TQM results.

This is tested from responses in table 7:

Table 7: Relationship between information

communications technology and achievement ofTQM results

Variable No. of

Respondents

% Response

VERY HIGH 206 65.33HIGH 73 24.33AVERAGE 18 6.00LOW

3

1.00

VERY LOW -

173

-NONE - -Total 300 100

Source: Field Survey, February, 2012

Ps = 0.6533, p = 0.60, q = 0.40, n = 297

Z = Ps-p = 0.6533 – 0.60pq 0.60 x 0.40n 297

= 2.03

Table value = 1.96

Decision:

Since 1.96 is not greater than 2.03, HO5 is

rejected. This means that there is significant

relationship between information communications

technology and achievement of TQM results.

174

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND

RECOMMANDATIONS

5.1 Summary of Findings

Total quality management is an indispensable

factor in any industrial setting or establishment

if appreciable progress is expected. Hence, Crosby

(2007:64) described it as an important strategic

tool for all levels in an organization. This

175

implies that all levels of the organization,

ranging from policy formulation and implementation

to establishment of different units/departments of

the organization, must be recognized as having

roles to play in total quality management and

progress of the organization. This is in agreement

with the findings of this study that (1) there is

positive correlation between policy formulation

and implementation on one hand and total quality

management on the other hand, and (2) structural

support techniques greatly improves total quality

management practices.

This study also found that there is significant

relationship between employees’ involvement and

brainstorming and achievement of good total

quality management practices. This is in agreement

with the views of Welch and Welch (2011:300), who

176

posited that practical assistance, training,

recognition and participation given to all

employees help to attain quality goals of any

organization.

The recognition and participation are also what

MacPeters (2010:89) meant when he said that

brainstorming offers management the opportunity to

learn from all in their respective fields of

operation to minimize frictions. This exchange or

cross-fertilization of ideas among workers in

brainstorming sessions is usually beneficial to

the company involved. Thus, many learn from each

other, put such valuable ideas into practice and

thus improve the fortunes of the company

positively and reduce frictions among workers.

Minimization of friction also maximizes success,

and this is the secret that guides success in

177

emerging management philosophies (Panyon,

2010:181). This is certain because group

discussions during total quality management

process usually yield many good ideas for

improvement by either eliminating wasteful

activities or improving the quality of output from

each department. Thus, this study discovered that

there was significant relationship between

information communications technology and

achievement of excellent total quality management

results. If this is the same with other

departments of any organization, a success story

must be told about the organization.

5.2 Conclusion

Total Quality Management practices have deep roots

in employees and breweries service delivery. In

178

deed, there are sufficient and strong findings to

believe that Nigerian Breweries Plc – the owner of

AMA breweries, is a quality service driven

company. This finding is indeed good and necessary

information to individuals and corporate

organizations like Nigerian Breweries Plc. Given

the fast changing environment in the company and

other companies, there is no substitute to service

quality practice.

5.3 Recommendations

On the basis of the findings of this research, the

following recommendations are made there from:

(a) The management of Nigerian Breweries Plc and

other similar organizations should create more

awareness of the specific structures that will

support total quality management practices in

Nigerian industries.

179

(b) The policies concerning quality practices

should be documented and published for

employees and other stakeholders for their

education, knowledge and appreciation.

(c) That all employees and department model of TQM

practices should be sustained through the

formal assigning of roles and responsibilities

of total quality operations. Some managers and

structures should be visible and accountable.

(d) Employees’ awareness creation for TQM

practices should be sustained at the tempo of

multiple and complex changes in customers’

needs and expectations.

(e) Employee input in quality improvement should

be encouraged so as to evoke the total

commitment of employees in the operational end

of total service delivery.

180

(f) There should be a clear distinction and

separation between business processes re-

engineering from TQM practices to avoid BPR

swallowing TQM objectives and ambitions.

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185

APPENDIX ONE

QUESTONNAIRE

INTRODUCTION

Dear Respondent,

A research work is being done on the topic. “The

applicability of Total quality Management in

Nigerian Breweries Industry. A Case Study of Ama

Breweries. TQM, as a technique of efficiency in

the manufacturing sector, is evaluated by the

186

Questionnaires constructed to address the issue

raised. They are for academic documentations only

and not prying unnecessarily into your privacy. So

respond to the best of your knowledge, being rest

assured that any divulged information would be

treated with utmost confidentially.

Yours faithfully,

Name: Ogbodo Veronica Amaka

Reg. No: ESUT/PG/MBA/09/11152

Department: Business Administration

Faculty: Management Sciences

Section B Personal Data

1. How long have you worked in AMA Breweries?

187

a. 0-5 b. 6-15 c.

16-25 d. 25 and above

2. Age bracket less than

a. 20 b. 21 – 29 c. 30

– 39 d. 40 and above

3. Highest education acquired (a) FSLC

(b)O’level

(c) Diploma (d) 1st degree

Others

4. Sex: (a) Male (b) Female:

5. Are you aware of TQM Practice?

A) Yes (B) No

6. If yes, in one above, which department handle

TQM related issues in your organization?

(a) Quality Control Department

(b) Production Department

(c) Marketing Department

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(d) All Departments handle TQM

Section C: Questionnaire Proper

Please kindly tick in the box, the one that is

appropriate answer to the question.

Research Question One:

What is the nature of positive correlation

between policy formulation and Implementation

and Total Quality management at AMA Breweries?

This is addressed by the following questions:

7. How do organizational policies affect TQM?

(a)Very highly (b)

Highly (c) Moderately

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(d) Little (e) None

8. In your opinion, is TQM the business of the

following?

(a) Special officers are responsible for TQM

(b) Every employee of the organization

9. Do the TQM practice in your organization

change often?

A) Yes (B) No

10. Do the TQM practice emphasize process speed

and quality service delivery in your

organization?

A) Yes (B) No

11. What impact does Government policies make on

TQM?

(a) Great (b) Moderate

(c) Little (e) None

Research Question Two:

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How significant is the relationship between

employee involvement and achievement of TQM

practices in AMA Breweries?

This is addressed by the following questions:

12. Is total quality involvement a selling point

for the products of the organization?

A) Yes (B) No

13. Are employees’ members of TQM

department/committee in your organization?

A) Yes (B) No

14. Are employees allowed to make input in the

improvement processes of TQM in your

organization?

A) Yes (B) No

15. How do societal values and culture affect TQM?

Greatly…….. Moderately ….. Little ……

None……

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16. How do you rate the application of TQM for

customer services and customer satisfaction?

(a) Very important (c) Important

(b) (c) Average important

(d) Not important

Research Question Three:

To what extent do Structural support techniques

positively improve TQM practices at AMA Breweries?

This is addressed by the following questions:

17. How can you access the effect of structural

support programme on TQM practice in AMA

Breweries?

(a) Very High ……... (b) High………..….(c)

Average ……………

(d) Low ………….. (e) None………………….

18. What is the relationship between quality

control and TQM?

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(a) Very positive ……….(b) Positive ……..… (c)

Average……….

(d). Negative ……. (e) None…….

19. What relationship has TQM on profitability?

(a) Very great………. (b) Great ………..…

(c) Average………….

(d) Little……………. (e)None……………….…

20. What impact does public relations make on

TQM?

(a) Very great ………..… (b) Great..

……...(c) Moderate …….…

(d) Little ………….….. (e) None………….….

Research Question Four:

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How does Brainstorming positively improve TQM

practices in AMA

Breweries Plc?

This is addressed by the following questions:

21. How would you rate the effect of brainstorming

on TQM?

a) Very Positive ….….. (b) Positive……. …. c)

Average.………. . d) Little ………. . e) None

…………….

22. How would you rate the effect of Departmental

purpose Analysis as tool of TQM?

a) Very High ….….….. (b) High.……. ….. c)

Average.….……. . d) Little ………. . e) None

…………….

23. How does Benchmarking affect TQM?

(a) Very greatly …... (b) Greatly

…….. (c) Averagely ……..

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(d) Little ……. (e) None………..

Research Question Five:

To what extent is the significant relationship

between information communications technology and

achievement of TQM results at AMA Breweries.

This is addressed by the following questions:

25. What relationship does Information Technology

bear on TQM?

(a) Very high ….. (b) High …... (c)

Average….. (d) Low …….

(e) Very low..

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26. How does TQM affect data processing and

analysis?

(a) Very greatly….... (b) Greatly ……. (c)

Averagely ……...

(d) Little …... (e) Very little……..

27. How is Partnering affected by TQM?

(a)Very Highly ……….. (b) Highly …...

….. (c) Moderately …….… (d) Little ………..… (e)

None ……………

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