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THE IMPACT OF QUALITY CONTROL TECHNIQUE ON THE PROFITABILITY IN MANUFACTURING ORGANIZATIONS

ABSTRACT

This research work on the impact of quality control techniques on profitability in manufacturing organizations strives to assess the role of quality control in enhancing the profitability of manufacturing organizations. The study argues that the ultimate aim of any manufacturing company is the production of quality goods and services for the satisfaction of its customers and to maximize profit. The study reveals that for any product to survive the competitive nature of the market depends on the value attached to the products by the consumers. Such value may include quality, durability, price, utility and cost of others. It further asserts that printing industries are concerned with/ despite the fact that the printing products are being used by a wide range of customers within the society, there is need for the manufacturers to consider individual optimum benefits, to be abele to accomplish this aim, the quality of the product must be given adequate recognition. One of the major findings was that, the quality control personnel need to be given adequate compensation and recognition to enable them perform creditably well. Their basic functions of supervision is to ensure that standard outputs are produced for the satisfaction of their clients. It is recommended that New Nigeria Newspaper should therefore intensify more effort in their quality control techniques practice to bring their products to the standard of other foreign country predicts so as to enhance their profitability.

CHAPTER ONE

INTRODUCTION

1.1    BACKGROUND TO THE STUDY

The ultimate aim of any manufacturing company is the production of quality goods and services for the satisfaction of its customers and to maximize profit.

The quality production may be checked by the following:

Production

Inspection

Good/term vs defectives.

- Production: Production is a any process or procedure designed as well as organized to transform a set of input components into specified set of output elements.

- Inspection: Why do we inspect? To need out inferior product of course but if I stop with that answer, I will over look most of what I should be doing inspection is done his the production process not only to catch the bad item, but also save wasting further work on them.

- Good/term: The quality of production can be checked by accepting the unit that are good and reject the unit that are defective or present defective production.

The quality of production by good/terms vs defective product is determine as quickly as possible during the production cycle when qualities is shipping so that corrective may be taken before the occurrence of real loss in the form of defective items. A quality control system must include inspection. In the case, however, the basic purpose of such inspection is not isolate good and bad unit, but to play watch dog over the production process there by providing the control required to keep performance within acceptable limits. The consumer reaction, the quality of production is checked from the reaction of consumer of a product if the attitude of consumer is positive then quality is said to be met but if the reaction is negative towards a particular product is said to be me. The effect of the consumer reaction on the organization is that the organization may end up losing t heir customer to their competitors when the reaction is negative and could lead to the collapse of the organization. But when the reaction of consumer is positive it brings about.Increase in the sales of the organization product and also brings good wheel to the organization. In terms of having more customers which of course will make the organization to remain in the market.

The quality of production is determine as quickly as possible during the production cycle, when quality is slipping so that corrective action may be taken before the occurrence of real loss in the form of defective items. A good quality control system must include inspection. In this case, however, the basic purpose of such inspection is not to isolate good and bad units but to play watch dog over the production process there by proceeding the control required to keep performance within acceptable limits. Quality control means different things to different people. Quality control is more than a set of statistical formular and table for acceptance and control. Indeed, it is more than the department unit responsible for quality control to an enlightened. Management it must represent a business investment, which any other investment should show paper returns to justify its existence.

The control of quality is the responsibility of every one in the organization what over is produce by person or machine, the person or the operator doing the work or operation of the machine is the one who can most effectively control quality or make information available so that desired quality control can be attained so that immediate action can be taken. The person who has most influence for good or bad over the worker whether the work is production or administration is the first line supervision. This supervisor becomes the determinant which the total quality control effort revolves. This project will therefore assess the import of quality control on profitability in manufacturing organizations. With emphasis on the printing industry and in particular to new Nigeria Newspaper limited Kaduna.

1.2    HISTORICAL BACKGROUND OF NEW NIGERIA NEWS PAPERS LIMITED

The New Nigeria News paper limited,. Whose hand office is located along Ahmadu Bello Way Kaduna was incorporated and launched by the Northern Regional Government on 23rd October, 1964. The Launching of the company was performed by his Royal Highness Late sin Ahmadu Bellow Raba the sardauna of sokoto. Its original name was Northern Nigeria Newspaper Limited until it was change to now Nigeria Newspaper limited after the creation of state in 1967. The aims of the establishing the company was primarily to print and publish newspapers which will provide means of public enlightment and education for the growing literate population of Nigeria. It was also decided that the company should take over the publication of Gaskiya tafi kwabo which was hither to published in Zaria by Gaskya Corporation Limited.

In Maran 1973, the southern edition of the New Nigeria was inaugurated in  Lagos, the office of the company to start printing simultaneously with the Kaduna Head office to enhance easy transportation wide coverage. When the northern region was split into six states by the creation of 12 states in the federation in July, the ownership and management of the companies publication where transferred to the northern state interim common services agency (ICSA) before the company was fully taken over by the federal government August 1975 and place under the Federal Ministries of Information. At present, the company publishers four Newspapers the New Nigerian the Gaskiya Tafikwabo (a three time a week Hausa publication) the New Nigeria weekly and the Sunday New Nigerian. While the New Nigeria was first published on 1st January 1939, the Sunday New Nigeria was first published on 24th May, 1981, the New Nigeria weekly (Saturday) was first published on the 7th February 1998. The company operates a commercial/ stationeries printing department, which under takes printing job of various types and process high quality exercise books and other stationeries products. In other to consolidate its economic base the company went in to real property development project in 1977 with the construction of imam house (named after the first indigenous editor of Gaskiya Tafi Kwabo) and multistory building known as Nagwamatse housing the bank of the North area office Kaduna. Furthermore, the company has yet built another 13 story building adjacent human house which was leased out to organizations such as national electric power Authority (NEPA) now PHCN and Bank of the North and other housing project to case accommodation within the New Nigerian Newspaper Limited.

1.3    STATEMENT OF THE PROBLEM

The quality of a product may be defined in terms of its kind, types, characters and degree of goodness or excellence. If the company’s product is to satisfy the customer requirement than it is necessary for the company to establish standards for the product function and appearance aspect of its product. This implies the need for a general requirement for setting up a quality control department to ensure that the standard are adhered to quality control sometimes fails to meet the required specification because of some  unassignable causes, defective materials improper setting of equipment, operation errors, manpower and many other unassignable causes. Because it cost the same amount of money to produce good units, emphasis should be on prevention rather than error defection. Thus, the attainment of suitable quality department appropriate human performance when the product is being made consequently conflict crisis between the quality control personnel and promotion personnel. When this happens it is the responsibility of the manager to resolve the conflict.

In the face of economic depression in our present society man is corrupt and can go to any length to compose standard for his own benefits. There is need for quality control officials to be adequately remunerated so that they would perform their function effectively. Another factor to be considered that which is militating against quality control is time particularly in printing industries where emphasis is majority on mass production. How eve, time limitation must never be compromised for quality control, its desire is to meet the over all objective of satisfying customer’s needs profitability.

1.4    OBJECTIVE OF THE STUDY

Against the background of the enumerated of the organization, the following are the objective of the study.

1. To examine the process of quality control technique in printing industries in particular to New Nigeria, Newspaper Limited.

2. To also highlight it importance inreducing the cost of correcting effective product in printing industries in particular to the New Nigeria Newspaper.

3. To also determine the impact of quality control techniques on profitability in printing industries in particular the New Nigeria Newspaper Limited.

4. To preset impartial fulfillment of the requirements for the award of Higher National Diploma in productions and operation management.

1.5    STATEMENT OF HYPOTHESIS

The following hypothesis are put forward to guide, the researcher in this study:

i.  Ho: Quality control techniques is not significant impact on the profitability of an organization.

ii. Hi: Quality control techniques is significant impact on the profitability of an organization.

1.6    SIGNIFICANCE OF THE STUDY

Considering the importance of quality control techniques in the organization, it is necessary that the dimension or other attributes to be controlled should be defined as clearly as possible.

Being a tradition that a final year student must written project or research work of this nature as fulfillment for the award of Higher National Diploma in production and operations management. The study is undertaken for t he purpose of exercising the term quality control technique, its role how effective, efficient to the over all achievement of the organizational goals and objective. And also it is certain that the finding of this study would be of benefit to the organization as a whole especially to the production department and future researchers.

a.   FUTURE RESEARCHERS:

Future researcher will find this project work useful and interesting w hen making research on a related toic or when user is needed for review on this particular topic. This project work will service as foundation that will case further research.

B.  TO THE PRODUCTION OPERATION MANAGER

That quality control techniques enhances profit and that all activities in the production process that bring about defective job should be avoided for them to maintain quality.

1.7    SCOPE OF THE STUDY

The major scope of t his study has to do with aspect of quality control techniques on the profitability. With a case study of New Nigeria Newspaper company limited Kaduna. This research work is directly concerned with quality control technique on the profitability in many facturing organization, especially I quality control department. Therefore, the prime scope of this research is to access the quality control technique on the profitability in manufacturing organization in the effectives of New Nigeria Newspaper Company Limited Kaduna.

1.8    LIMITATIONS OF THE STUDY

To undertake research work of these nature is by no means on easy task, the researcher encounter a number of problems in the course of gathering materials, analyzing them etc the major limiting factors encountered include the following:

1. Limited information provided by the management of the company studied no company would be willing to divulge information on its operation as it relates to quality control technique. The researcher has been able to convince management of the need for such vital information to the educational development of the nation as this would serve as part of their contribution to such development.

2. Time: time has also been a limited factor in the sense that despite the fact that the research work is an important aspect of the academic programme of the poly technique available to meet other academic commitment which are equally important.

1.9    DEFINITION OF TERMS

i.  Technique According to David Dorfman (2011) is defined technique as a way of carrying out a particular task, especially the execution or performance of manufacturing work or a scientific procedure.

Technique can be described as ability in a particular field.

A technique is a systematic procedure formular or routine by which a task is accomplished.

ii. Quality control techniques: Quality control techniques According to Juran (1974:448) is a regulatory technique through which we measure actual quality performance compared with standard and act on the differences.

Deming, W.E (1976:26) quality control technique as a function or collection of duty which must be performed through out an organization in order to achieve its quality objectives.

iii. Specification: Is the description of an item ordered by an organization that a description given must confirm to. Is the statement providing description list of characteristics or requirement laid down for materials component or process service.

iv. Reliability: These are products or services that have all characteristics expected of them. In terms of functional performance taste. It can be defined as the profitability of a product performing its purpose adequately for an intended period or under a given operating condition.

In this definition four elements are being stressed upon job probability adequate performance, time and operating. To achieve reliability, a product must be properly designed for its function. There must also be a follow up to ensure that the quality of materials (printing paper ink etc) and workmanship is consistent with desired reliability

v. Durability: This measures the projected use available form the product over its operating cycle before its deteriorates (in terms of information).

Quality control: Is the function of collection of duties which must be performed throughout the organization in order to achieve its quality objectives.

In printing industries which major objectives is to produce books Newspaper in general which has to do with feeding the public with vital information, may not be irrelevant to lay emphasis on quality control in the determination of its goals and objectives.

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