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IMPACT OF TOTAL QUALITY MANAGEMENT TO THE GROWTH AND SURVIVAL OF AN ORGANISATION

ABSTRACT

This research project focuses on the impact of total quality management in the growth and survival of an organisation. This study is chosen in order to bring into focus the explicit importance and benefits of TQM in any organisation and its likely contributions to organisational profitability. Over the years the topic TQM has been neglected and this accounts for the series of organisational losses example. Poor quality standard, excess cost of holding goods, lack of quality control and assurance.  This project is therefore designed to bring into light those benefits and impact of total quality management with special reference to PZ Plc Aba Abia-State. The fact that the researcher focused on the purchasing department with the view to come up with a formidable and concrete information and techniques to adopt in other to make the TQM concept a success which could lead to the attainment of the organisation objective.

CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND TO THE STUDY

The impact of total quality management in the growth and survival of an organisation. This is an important function of an organization especially the purchasing and supply department or section to relate to the management of an organization, and this has to do with adequate planning and this goes with factors such as quality, reliability and the business environment which the organization is set for. The impact of total quality management also has to do with management as a discipline, which is dynamic and continuously changes both in principle, emanate from the fact that the business environment which is continuously changing. The environment is never static and as such everything in it including management changes according to the dictates of the environment.

In order to adopt to the ever changing environment, management has changed from the classical management theory through the scientific management, behavioural management and the rest, to the motivation theories. The latest of these are management by exception, management by objective, just-in-time and total quality management. The clamour for TQM is an evidence that optimality cannot be attained by half measures or partial application of good policies and well designed plans. For optimality to be attained there must be organization wide and operations wide efficiency and it has to start from the development of the product and the purchases of the raw materials. Therefore, in this project study, the impact of total quality management in the growth and survival of an organization will be ascertained and appraised. The essence of the project is to examine how the TQM principles and concepts can be applied in ht growth of an organization by merging them with the purchasing concept. It examines the effects of such an application of TQM to the organizational efficiency.

1.2 STATEMENT OF PROBLEMS 

The problems associated or involved in TQM include the fact that total quality management as a management concept is new. And as such its method of application are yet undefined. Likewise, limitations to its applicability are yet to be established and its principles are still piled up daily by management experts. The result is:

1. The inability to apply total quality management in the development and production in an organization which lead to low and poor profitability.

2. Non adherence to total quality management creates low productivity.

3. Failure to adopt the total quality management leads to lower organizational competitive ability.

4. Non adherences to total quality management bring about customers dissatisfaction.

1.3 THE OBJECTIVE OF THE STUDY

The main choice or aim of the researcher in this objective of ht study is to investigate and research on the need fro the impact of total quality management in the growth and survival of an organization with reference to (PZ) Aba, the objective of this study is stated below:

1. To examine how the total quality management (TQM) can be applied to the growth of an organization. 

2. To ascertain the effects of such application on the business organization in general and the purchasing department in particular.

3. To establish whether TQM is relevant in furthering the course of supply / delivery.

4. To determine if TQM can help to maximize profit.

5. To discover how TQM can enhance organizational competitive ability.

6. To determine how TQM can help to increase productivity and sales.

1.4 SIGNIFICANCE OF THE STUDY

The research project is significant in many aspects. In the first place, it is significant in the sense that it will help to determine the new concept of total quality management. It will also show how TQM can work hand in hand with the purchasing section to achieve greater organizational efficiency. It is also for the partial fulfilment of the award of Higher National Diploma (HND). It is equally significant because it will outline the various virtues of TQM in comparison with other management concept. It will reveal how TQM can be used to improve the overall organizational concept. This study is significant because it will increase the body of academic knowledge available as a research study. It is also relevant in the sense that it will serve as references to future researchers on issues connected with the present research problem.

1.5 RESEARCH QUESTIONS

The research questions for this project study are:

1. The inability to apply total quality management can it lead to low profitability in an organization?

2. Total quality management if not properly enforce can it lead to lower organizational competitive ability?

3. Total quality management if not adherence can it creates low productivity?

4. Total quality management, can it be able to bring about increase in production volume, thereby increasing the level of profitability?

5. Total quality management, can it be able to impact an organization growth and survival?

1.6 RESEARCH HYPOTHESES

In this research study both the null (Ho) and alternative (HI) hypotheses are made use of as shown below:

HO1: Inability to apply total quality management in an organization does not lead to low profitability.

H1: Inability to apply total quality management in an organization leads to low profitability.

HO2: Failure to enforce the concept of TQM does not lead to lower organizational competitive ability.

H2: Failure to enforce the concept of TQM leads to lower organizational competitive ability. 

H03: Non adherence to total quality management does not create low productivity.

H3: Non adherence to total quality management creates low productivity.

H04: Total quality management may not be able to impact an organizational growth and survival.

H4: Total quality management will really be able to impact an organizational growth and survival.

1.7 SCOPE TO THE STUDY

The researcher did not find it easy to cover many organizations, so the focus was based on Peterson zonchonis (PZ) Aba, Abia state, Nigeria as a case study. The scope will cover the total quality management efficiency, the impact of TQM on organizational efficiency, the principles involved in the TQM concept, the tools used in the total quality management to achieve organizational efficiency, the purpose of TQM and the criticisms levelled against the total quality management.

1.8 LIMITATION OF THE STUDY

There are a lot of obstacles encountered when conducting the research. The most salient of them include:

1. Lack of fund: inadequate fund delayed the take-off of the project. Initially, there was no money for stationery or for trips to libraries to look for materials. 

2. Unavailability of materials: there may not be enough relevant materials in the polytechnic library. 

3. lack of time: the writing of the project concede with time of preparing for the semester examinations. 

4. Distribution and retrieval problems: the distribution of the questionnaires which has to be combined with the lectures was not easy, it was not easy for the researcher to investigate in other companies relevant to the study, but only limited to PZ Aba, Abia state which is the case study.

1.9 DEFINITION OF TERMS

PERFORMANCE: this term denotes to the end result of organization activities. 

OPERATING PROCEDURES: this refers to the pre-determined and approved means of varying out the business of the organization.

DECISION: this is the process of choosing one course of action in the face of many alternatives. 

APPRAISAL: this is the assessment of an organization to ascertain the planned result.

EFFICIENCY: this term denotes to the states of minimizing cost but at the same time minimizing quality and quantity without additional resources.

RESEARCHER: an individual carrying out a research investigation.

QUALITY: this is the totality of features and characteristics of a product or a service that bears on the ability to satisfy a stated given needs.

RIGHT QUALITY: this is the quality which can be purchased at the lowest cost to fulfil the need or satisfy the intended function for which the material is being purchased.

BEST QUALITY: this is the highest quality of the highest grade of a particular item. 

CONFORMANCE: the meeting of specification

RELIABILITY: the probability of failure within a specified time period.

DURABILITY: the life expectancy.

SERVICEABILITY: the maintainability and ease of fixing or easy repairing of the item.

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