ABSTRACT
Total Quality Management (TQM) has availed to operations management key practices for measuring corporate performance in today's rapidly evolving environment. As a result food industries are adopting TQM practices to manage their operations for competitive advantage as well as improved operational performance. Previous studies have shown the importance of organizational performance, very few empirical examinations have been done on effect of TM on Operational performance. The overall objective of this work was to examine the outcome of the implementation of TQM practices on operational performance of Food and Beverages manufacturing industries in Nairobi. Both Explanatory and Cross sectional study designs were adopted to study the connection between TQM practices implementation and operational performance. The target population comprised large food manufacturing firms in Nairobi which are subdivided into 7 subsectors. A Survey of all the 87 firms was used in the study. Primary data was collected using a questionnaire. The respondents were managers involved in the operations management of the organization. To summarize the data, descriptive statistics such as Mean and Standard deviation were used. Cross tabulation was used to bring out the actual response by the various firms. The data was analyzedwith the help of Statistical Package for Social Sciences (SPSS 20.0). To examine the relationship between TQM implementation and Operational performance, Pearson’s product-moment correlation analysis was used. To examine the effect of TQM implementation on operational performance; multiple regression analysis was used. The results revealed a significant positive relationship between TQM implementation and operational performance. The first, second and fourth null hypothesis were rejected, we fail to reject the third and the fifth null hypothesis. The findings also revealed that among all TQM practices, Top management commitment had the strongest relationship with operational performance. The results also showed that the joint effect of TQM practices operational performance was significant. The researcher recommends replication of the study in different sectors and countries to enhance understanding of the relationship between TQM implementation and operational performance. The study is significant as it will provide the management of Food and beverage firms with information on how to implement total quality management on operational performance.
CHAPTER ONE
INTRODUCTION
Background of the Study
Total Quality Management (TQM)
The principle of Total Quality Management (TQM) target of cutting edge operations management methodologies is to advance execution in manufacturing industries. Giving a higher quality administration with lower expense as a system for making and supporting aggressive position have turned into a vital methodology for some business associations over the world. Thus, quality has turned into a key instrument for measuring corporate performance in today's evolving environment. Selection of Total Quality Management has ended up far-reaching among organizations amid the most recent decades as it has been perceived as a noteworthy wellspring of competitive advantage and overall benefit. It assumes a fundamental part in the improvement of administration operations (Rawashdeh, 2014).
Amid the most recent three decades, Total Quality Management (TQM) has been accepting far- flung acknowledgment by the various parts of the economy, for example, producing and administration government social insurance, banking and training. This TQM wonder is wide coming to give that maybe few would differ that no other administration issue since Frederick Taylor's Scientific Management toward the start of the century has made such a significant effect as what the TQM development has accomplished has even put TQM as achieving a second modern insurgency (Hassan, Mukhtar, Qureshi, & Sharif, 2012).
The fascinating usage of TQM practices will form purchaser loyalty with the organization’s offerings. Quality improves purchaser loyalty through completion; this thusly can produce repeat production and hence guide to the appeal of new clients through affirmative verbal. The informal communication will help in cost diminishment. The alteration in quality will convey about expanded piece of the overall industry and benefit. Total Quality administration is an administration rationality which advocates the delegation of command to the cutting edge personnel. It guarantees the cooperation of everybody in the decision making process through exercises, for instance, quality cycles and co-operation (Kathaara, 2014).
The carrying out of TQM guarantees that each expert in the organization does his job with quality the first run through, as a result enhancing the effectiveness of operation and staying away from some outflow connected with waste. This thus will recommend more regard to customers as far as price and management of quality, accordingly making them satisfied. Usage of TQM further guarantees that organizations alters how they carry out exercises in order to wipe out wastefulness, heighten consumer loyalty in addition to achieve the best practice. TQM help in augmenting the nature of items additionally decreases and sets up a sound generation process. Ceaseless change which is a component of TQM is said to diminish the item process duration accordingly enhancing execution. Various other TQM practices, for instance, preparing, data structure organization, organizations with supplier and so on optimistically affect operational execution. The proficient administration conduct of these practices will enhance success and doubtlessly manipulate the benefit of the firm (Kathaara, 2014).
Application of TQM can lessen the aggregate expense of generation through single sourcing. The expense for this situation is lessened by constraining the quantity of suppliers utilized by the organization and furnishing them with important preparing and innovation. The effective working of an function will then rely on upon how fit the suppliers get together with the desires of the organization. This is the reason the TQM standard underlines the totality of value in all features which incorporates the suppliers. The total quality methodology makes a coordinated technique for focusing so as to examine operation the procedures of creation on consumer loyalty. Consequently, it requires that quality incorporated with every one of the procedures to be effective in the general operation (Kathaara, 2014).
Operational Performance(OP)
According to Truong (2014) Operational performance is defined as the capability of a corporation in dropping managing costs, bid succession time – meet bids, getting better unprocessed material well-organized use and delivery capacity. Operational execution can be defined as the practice of enumerating the competence and usefulness of things. Effectiveness denotes the degree to which client needs are met, whereas competence is a assess to how cost- effectively to firms’ assets are applied when providing client satisfaction. Fruitful implementation of TQM will construct customer loyalty with the organization offerings, ensures that organization's change how they perform practices to wipe out inefficiency, improve purchaserfulfilment and achieve the best practice (Kathaara, 2014). TQM help in improving the way of things are done besides diminishing the scrap, repeat process and the prerequisite for bolster stock by setting up an enduring work process. TQM enhance agents ‘gettingready, information structure organization, relationship with customers’ Authoritative execution can be measured in two critical estimations: operational execution and general legitimate execution. By operational performance of an organization can be depicted similarly as inside operations of the relationship, for instance, made progress versatility, improved movement execution, cost and waste decline and productivity change (Irfan, Kee, & Awan, 2012).
Operational performance is connected with errorlimits of the organization's error plant to make and pass on things to customers while operational execution relates to organization's capacities to extra adequately make and pass on things and organizations that satisfy their customers (Kabergey & Richu, 2015). Operational performance insinuates the quantifiable parts of the after-effects of an organization's methodology, for instance, immovable quality, era process term, and stock turns. Operational performance along these lines impacts business execution measures, for instance, profitability index and customer satisfaction (Blackmon, 1997).
Food and Beverages companies in Kenya
Food and beverages manufacturing is the largest sector comprising of 147 members, who constitute 23.43% of total KAM membership, the sub- sectors in this constitutes; Alcoholic beverages& spirits, Bakers& millers, Cocoa, Chocolate and Sugar confectionery, Dairy products, Juices/water/ Carbonated soft drinks, Slaughtering, preparation and preservation of meat, Tobacco and Vegetable oils. Alcoholic Beverages & Spirits is involved in distilling, rectifying and blending of alcoholic liquors such as whiskey, brandy, malt, beers among many others. While Bakers and Millers are involved in milling grains, producing products such as flour, seal and stock dry feeds, preparation of breakfast foods among many others. In addition cocoa, chocolate and sugar confectionary is involved in manufacture of cocoa and chocolate powder from beans and all types of sugar confectionery. We also have dairy products industries which are involved in the manufacture of creamery, processed butter, powdered and fresh milk among many others (Kenya Association of Manufacturers, 2014).
In addition there are Juices/ Waters/Carbonated Soft drink industries which are involved in the manufacture of non-alcoholic beverages such as soft drinks and mineral water among others. Another sub category is Slaughtering, preparation and preservation of meat which does processing and packaging of meat, sausages and edible animal products. Another sub sector is Tobacco industry which manufactures tobacco products such as cigarettes, cigars, snuffs among others. Lastly in the sector we have Vegetable Oils industry which is involved in the production of vegetable oils, the refining and hydrogenation of oils, fats and margarine among many others (Kenya Association of Manufacturers, 2014).
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Item Type: Kenyan Topic | Size: 74 pages | Chapters: 1-5
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