Imapct of Total Quality Management and Operational - Uganda Clays Kajjansi
Imapct of Total Quality Management and Operational - Uganda Clays Kajjansi
Imapct of Total Quality Management and Operational - Uganda Clays Kajjansi
BY
BYARUHANGA HASHIM
1163-05084-05585
OCTOBER, 2019
DECLARATION
This research report is my original work and has not been presented for any degree or any other
academic award ii any university or institution of learni g. I am entirely r sponsible for
everything written in this report.
This research report is my original work and has not been presented for any degree or any other
academic award in any university or institution of learning. I am entirely responsible for
everything written in this report.
Signed Date
BYARUHANGA HASHIM
REG. NO: 1 163-05084-05585
APPROVAL
I confirm that the research report is done under my supervision as the university examiner
supervisor.
~
AYASI ASADI ERVISOR]
Date
DEDICATION
First of all, I would like to dedicate this piece of work to my beloved parents and siblings. May
the Almighty Allah bless you all!
III
ACKNOWLEDGEMENT
I wish to extend my greatest gratitude to God Almighty for without Him in my life this
achievement would not have been possible,
My special thanks go to my parents for helping me in my studies and for believing in me.
Special gratitude goes to my dear friends for the moral, financial, emotional and spiritual
support throughout my studies.
I would also like to thank my lecturer and my supervisor Mr. Ayasi. Asadi who guided and
helped me complete this piece of work. Thank you for your patience
I extend my sincere thanks to the management of Kampala International University Uganda for
having organized and offered me the knowledge and skills in the field of course.
My gratitude goes also to friends and classmates. In one or many ways you have contributed to
the fulfillment of this work. Thank you.
Finally, I thank all who contributed directly or indirectly to the completion of this work. Their
actions are an indestructible monument within the bottom of my heart
May the Almighty Allah reward you all!
iv
TABLE OF CONTENTS
Table of Contents
DECLARATION
APPROVAL
DEDICATION
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
LIST OF TABLES
LIST OF FIGURES ix
ABSRACT
CHAPTER ONE i
INTRODUCTION 1
1.1 Background of the Study 1
1.2 Statement of the Problem 2
1.3. General Objective 2
1.3.1 Research Objectives 3
1.4 Research Objectives 3
1.5 Scope of the study 3
1.5.1 Geographical Scope 3
1.5.2 Content scope 3
1.5.3 Time scope 4
1.6 Significance Study 4
1.7 Conceptual Framework 4
CHAPTER TWO 6
LITERATURE REVIEW 6
2.1 Introduction 6
2.2. Key Concepts 6
2.2.1 Total Quality Management 6
2.2.2 Operational Competitiveness 7
V
2.2.3 Total Quality Management and Competitiveness 8
2.3 Theory 9
2.3.1 Resource Based Theory 9
2.4 Total Quality Management Practices 9
2.3 Operational Competitiveness 11
2.4 Relationship Between Total Quality Management and Competitiveness 12
2.5 Summary 13
CHAPTER THREE 15
RESEARCH METHODOLOGY 15
3.1 Introduction 15
3.2 Research Design 15
3.3 Sources of Data 15
3.3.2Secondary sources 16
3.4lnstruments of Data Collection 16
3.4.llnterviews 16
3.4.2 Questionnaires 16
3.5 Sample Size and Selection 16
3.6 Sampling Techniques 17
3.7 Research Procedure 17
3.8 Data Analysis 17
3.9 Limitation 18
CHAPTER FOUR 19
DATA INTERPRETATION AND ANALYSIS OF FINDINGS 19
4.1 Introduction 19
1.2 Background Information 19
4.2.1 Educational Level of the Respondents 19
fable 4.1: Respondents Educational Level 19
~.2.2 Continuous service with the organization 20
[able 4.2: Length of Continuous Service 20
L3 Total Quality Management Practices 20
Eable 4.3: TQM constructs applied in the firm 21
vi
4.3.1 Performance Measures .22
Table 4.4: Performance measures employed in the firm 22
4.3.2 Top Management 23
Table 4.5: Top management commitment 23
4.3.3 Customer focus 24
Table 4. 6: Customer Focus on TQM 24
4.3.4 Employee Involvement 25
Table 4.6: Effect of Employee Involvement 25
4.3.5 Supplier Relationship 26
Table 4.7: Supplier Partnership 26
4.4 Effect of TQM on Organizational Competitiveness 26
4.4.1 Pearson and Spearman’s Correlations 27
Table 4.8: Pearson and Spearman’s Correlation Coefficient 27
CHAPTER FIVE 29
SUMMARY CONCLUSIONS, DISCUSSIONS AND RECOMMENDATIONS 29
5.1 Introduction 29
5.2 Summary 29
5.3 Conclusion on the Study 30
5.4 Recommendation of the Study 30
REFERENCES 32
APPENDICES 34
VII
LIST OF TABLES
VI I I
LIST OF FIGURES
ix
ABSRACT
The aim of the research is to determine the critical factors of total quality management and to
measure their effect on operational performance at Uganda Clays Limited. The study was
guided by three objectives and these included determining the TQM practices used by Uganda
Clays Ltd, establishing the effect of TQM practices on operational Competitiveness at Uganda
Clays Ltd and, establishing the relationship between Total Quality management and operational
competitiveness. The research adopted a descriptive research design. Data was collected using
a self-administered questionnaire that was distributed to 25 senior and middle level managers at
the firm that were selected randomly. It was found that if TQM is implemented well, it
produces a variety of benefits such as meeting the customers~ needs which is key in
manufacturing, improved internal communication and better problem solving. Generally, the
five TQM philosophies that were being researched on had a positive correlation to the
operational performance of the firm. Since, the data in the research was collected from top
managers of the organizations on the basis of their subjective evaluations; objective
performance indicates the findings might have elements of subjectivity considering that they
will be involved in implementation of the TQM philosophy in the firm. The research
implication is that the firm’s senior management must consider their internal strategic
management processes, training and involve other staff, and their own role in championing total
quality approaches to managing organizational performance.
x
CHAPTER ONE
INTRODUCTION
1.1 Background of the Study
As a result of increasing global competition, the manufacturing industry, like all other
industries, has to continuously change in order for businesses to remain productive and
efficient. A growing number of businesses are going multinational to strategically position
themselves in global markets and worldwide manufacturing operations. Changing business
conditions have prompted manufacturers to design equipment to accommodate new products
without expensive retooling (Koh and Gunesekaran, 2006). The planned flexibility realized
through agile manufacturing allows manufacturers to change their focus and enable them to
adapt to different market segments. Flexible manufacturing systems techniques are being
utilized and are enabling companies to offer lower costs, faster turnaround time and quality that
meet or exceed customer expectations (Powell, 2004). He further points that, a firm needs to
identify improvement opportunities in product quality, material handling, product design time.
manufacturing setups, factory and office overhead. Integration and standardization can
facilitate these improvements.
One of these approaches that have been developed to improve firm’s processes and therefore
increase flexibility is the total quality management (TQM). A wide range of management
issues, techniques and approaches have been brought together under the general banner of Total
quality management. These factors include process management, quality system, statistical
quality control, teamwork, quality policy, zero defect, training and education, planning
measurement of quality cost and benchmark management (Salaheldin, 2009). The
implementation of TQM is accomplished through a set of practices that supports the TQM
philosophy (Dean & Bowen. 1994). TQM philosophy dictates that the practices function as an
interdependent system that can combine with other organizational assets to generate
competitive advantage. As Schendel (2004) pointed out, competitiveness is based not on
individual assets or practices that can be easily duplicated, but on the combination of a series of
assets that he labelled “compound assets.”
1
Manufacturing firms that exhibit strong emphasis on structural control of procedures,
operations, and work activities have been found to exhibit a stronger relationship between their
TQM implementation and financial performance (Lillrank, 2008). This finding supports
observations made by Powell (2005) that continuous improvement can effectively be integrated
into an organization via job descriptions and other administrative procedures. By standardizing
the use of specific TQM tools and techniques within an organization’s formal procedures, it
appears that hospitals can continuously improve effectiveness and efficiency (Shortell et al.,
2005). It appears that organizations that provide employees access to key information and
empower them to adapt their processes to environmental changes are better able to use TQM
for competitiveness.
To gain the full potential of TQM, manufacturing firms like Uganda Clays Limited (UCL) must
implement all the practices to the greatest extent possible. Proper implementation of TQM in
manufacturing firms is a critical determinant in enhancing organizational performance (Shortell
et al., 2005). However, Haim (2003) notes that there has been little in the way of independent
measurement of TQM practices and their impact as a source of a firms competitive advantage.
Construction sector in Uganda is expanding at an increasing rate and is becoming intensely
competitive with the entry of potential players into the market. As such, every organization
needs to adopt some strategies which will enable it to have a competitive edge over the others
and improve its performance. As competition intensifies, many firms continue to seek
profitable ways in which to differentiate themselves from competitors and adoption of TQM
practices is one of the methods. This current research will seek to establish the effect of TQM
as a source of operational competitiveness at Uganda Clays Limited.
The main aim of the study was to establish the effect of Total Quality Management on
Operational Competitiveness at Uganda Clays Limited
2
1.3.1 Research Objectives
1) What are the determinants of TQM practices used by Uganda Clays Ltd?
2) What is the effect of TQM practices on operational Competitiveness at Uganda Clays
Ltd.?
3) What is the relationship between Total Quality management and operational
competitiveness at Uganda Clays Ltd?
1.5 Scope of the study
Uganda Clays is leading manufacturer of quality baked clay building products in Uganda. It
uses state of the art kilns to currently provide the building materials in a brick-red color. The
company’s products are categorized into roofing tiles, bricks, maxpans, quarry floor tiles and
others. UCL is located 14KMs along Entebbe Road in Kajjansi- Wakiso District and operates
with plants in Kajjansi and Kamonkoli (eastern Uganda).
The study aimed at establishing the effect of Total Quality Management on Operational
Competitiveness at Uganda Clays Limited and specifically determined the TQM practices,
effect of TQM practices and established the relationship between TQM and operational
competitiveness.
3
1.5.3 Time scope
This study was conducted within a timeframe of 3 months ranging from June to August 2019
and covered a period of one year (i.e. from January-December, 2018), the period when the
industry experience significant quality complaints from clients especially regarding the quality
of tiles on the market.
This study will be of value to the management of the Uganda Clays Limited in decision making
processes as to how to adapt to TQM practices as a strategy in offering quality service/products
to consumers.
This study will benefit the Government through policy formulation. This study will aid the
board members in enacting policy’s that will govern quality operations at the industry level.
Scholars: This study is expected to increase body of knowledge to the scholars as it will assist
future scholars, researchers and practitioners in the area of manufacturing and pharmaceutical
industry best practices and TQM adoption as they will be able to find materials besides areas
where they can advance their research on the related subjects.
1.7 Conceptual Framework
A conceptual framework can be defined as a set of broad ideas and principles taken from
relevant fields of enquiry and used to structure a subsequent presentation (Reichel and Rarney,
1987). The schematic diagrams below will not only guide the study but will also show the
interrelationship among the key variables in the study as illustrated in Fig. 2.1.
4
Fig.2.1 Conceptual Framework
TOM Practices
Committed leadership to
OPERATIONAL COMPETETIVENES
Conversion cost
Material Usage variance
Scrap factor
Quality issues
D ~ and Development
I
T
Independent variables
5
CHAPTER TWO
LITERATURE REVIEW
2.1 Introduction
The chapter provides information from publications on topics related to the research problem. It
examines what various scholars and authors have said about total quality management. The
chapter covers: theoretical foundation of total quality management, total quality management
practices, organizational competitiveness and total quality management and competitiveness,
summary and conceptual framework
Total Quality Management (TQM) is the art and science of managing the whole to achieve
excellence and is based on six basic principles which are known to be its pillars. TQM is the
culture of an organization committed to customer satisfaction through continuous
improvement. This culture varies from one country to another and between different industries,
but has certain essential principles, which can be implemented to secure greater market share,
increased profits, and reduced costs (Kanji & Wallace, 2000). A review of extant literature on
TQM and continuous improvement programs identifies 12 common aspects: Committed
leadership, adoption and communication of TQM, closer customer relationships,
benchmarking, increased training, open organization, employee empowerment, zero defects
mentality, flexible manufacturing, process improvement, and measurement (Kaynak, 2003).
Today customers are demanding quality in products, services and in life. They have become
increasingly discerning and have started looking for options more in tune with their basic
needs, requirements and self esteem. In fact, they are prepared to pay a premium for a quality
product or service (Lilirank, 2008). One of the approaches that seem to provide the solution to
the aforesaid challenges is the management philosophy of total quality management. The role
Df TQM is widely recognized as being a critical determinant in the success and survival of both
iianufacturing and service organizations in today’s competitive environment, TQM is also seen
6
as a source of competitiveness, innovation, change and new organizational culture (Kanji &
Wallace, 2000). Any decline in customer satisfaction due to poor service quality would be a
serious cause of organizational failure.
The atmosphere of high global competition demands a higher level of capacity to maintain or
increase steadily the performance of the business. Vos (2005) considered that the managers or
owners of management skills are very limited, by which it must be improved so that companies
are able to successfully implement business strategies that will improve their competitiveness,
However, there are several disagreements about the competitiveness measurement, due the
used indexes and interpretations have generated polemic. Salaheldin (2009) believes that
competitiveness can be measured through seven indexes: nature of competitiveness, capacity
for innovation, the brand extension, restriction of the regulations of the environment, quality in
the education of mathematics and science, quality in the education system, a~nd ease of access
to credit. Powell (2004), who did not specify how the performance measurement should only
have eight rates for their calculation: physical infrastructure, human capital, efficiency of goods
market and work, efficiency of financial market, technological development, opening and
market size, sophistication of business, and innovation, thereby reducing its application. The
competitive performance of companies in global consumer markets therefore will be
7
determined by their capacity to deal simultaneously with the competition factors of price,
quality, delivery time, flexibility and innovation (Pandora, 2009). Simply said, competitiveness
at the enterprise level may be nothing more than applying the concept of continuous
improvement to the parameters that determine the competition factors of the company.
8
time improved process efficiency, which arises from experience curve effects and learning, also
reduces costs.
2.3 Theory
Total Quality Management (TQM) is the art and science of managing the whole to achieve
excellence and is based on six basic principles which are known to be its pillars. TQM is the
9
culture of an organization committed to customer satisfaction through continuous
improvement. This culture varies from one country to another and between different industries,
but has certain essential principles, which can be implemented to secure greater market share,
increased profits, and reduced costs (Kanji & Wallace, 2000). A review of extant literature on
TQM and continuous improvement programs identifies 12 common aspects: Committed
leadership, adoption and communication of TQM, closer customer relationships,
benchmarking, increased training, open organization, employee empowerment, zero defects
mentality, flexible manufacturing, process improvement, and measurement (Kaynak, 2003).
Anthony et al, (1989) described 11 TQM practices; management commitment, role of the
quality department, Training and education, employee involvement, continuous improvement,
supplier partnership, product! service design, quality policies, quality data and reporting,
communication to improve quality, and customer satisfaction orientation. Suresh chandar et al,
(2002) expanded the practices even further and came out with 12 major practices comprising of
top management commitment and visionary leadership, human resource management, technical
system, information and analysis system, benchmarking, continuous improvement, customer
focus, employee satisfaction, union intervention, social responsibility, service scopes and
service culture. Brah et al, (2000) in their study on TQM and business performance in
Singapore service sector has come out with 11 constructs of TQM implementation, which are
top management support, customer focus, employee involvement, employee training, employee
empowerment, supplier quality management, process improvement, service design, quality
improvement rewards, benchmarking and cleanliness and organization. Based on the above
literature, the research will select on the following six main practices of TQM implementation
for this study. All practices are selected due to their usefulness and relevance to the service and
manufacturing organizations. Customer focus and continuous improvement are among the
principles of quality that has been most written about. Brah et al, (2000) have identified that top
management commitment, customer focus, employee empowerment and employee
involvement are among the critical aspects of TQM that can determine the success of TQM
programs in the service environment. They are: management support and commitment.
employee involvement, employee empowerment, information and communication, customer
10
focus and continuous improvement. This study adapts Reliability, Assurance, Empathy,
Tangibility and Responsiveness as determining TQM in manufacturing firms.
Competitiveness is evidently a decisive factor for survival in the business world. To achieve it
requires setting priorities, which can be defined as a set of options of varying importance that a
firm needs to have to compete in the market over a determined time frame (Santos et al., 2009).
According to Davis (2001), besides costs, quality and flexibility, fast delivery and good service
are competitive priorities. Delivery is related to the speed factor, because it entails supplying
products quickly, while service involves the way products are delivered and accompanied after
sales. He also points to another priority, consisting of offering products that do not harm the
environment and that are produced by processes with the same characteristic. A combined
analysis of various authors in the business administration area shows an emphasis on the
following factors that determine competitiveness: quality, cost, flexibility and reliability, or
dependability (Kaynak, 2003). Machado-da-Sjlva and Barbosa (2002) believe that
implementing successful knowledge management creates a flexible competitiveness that is hard
11
to imitate, because it goes beyond the limits of physical resources, which are rigid and easy to
imitate, and extends to an exclusive aspect of the organization that it difficult for others to
appropriate. Therefore, the firm acquires competitiveness by means of the relationship of
knowledge with the ability to innovate and to configure a flexible structure capable of reacting
favorably to the frequent changes in its environment. The study of competitiveness factors is
important to achieve the most suitable method for developing products and processes, with the
use of the best practices and at the lowest possible costs, to make high quality products and get
them to market quickly so as to satisfy consumers~ needs. Mastery of the critical factors is
indispensable for an organization to perform better and thus meet its goals. Assessments and
accreditations may not be the sole solution to such challenges as these mainly focuses on inputs
and outputs of the system in contrast to TQM principles which are based on a holistic approach.
It is believed by many that the application of TQM may help overcome such challenges by
improving staff morale, increasing efficiency and meeting the expectations of all stakeholders
in a society.
After considering the relationship between TQM and firm performance in a sample of U.S.
firms, Powell (2005, p. 31) concluded that ~‘the empirical results suggested that TQM can
result to competitiveness.” Given that TQM is a strategy, it has been providing a unifying
framework that brings a range of “good management practices” to bear simultaneously. There
is agreement among Crosby, Deming, Feigenbaum, Ishikawa and Juran that the purpose of
quality management is to reduce costs and improve customer satisfaction. These ideas fit
closely with the market-based view of competitive advantage arising from a superior cost
structure or being able to differentiate products in a way that adds value for customers; through
reduced rework/scrap and savings that emerge from improving product quality and by
producing products that better satisfy the requirements of customers.
Reed et al. (2006) argued that TQM content includes four main components generating a
narket advantage, enhancing product design efficiency, boosting product reliability, and
ncreasing process efficiency and they deduced that a fit is required among the orientation of
12
the firm, the firms environment, and the four main components of TQM to improve firm
performance. They gave an example that firms with a customer orientation operating in
environments with high levels of uncertainty should focus on creating a market advantage and
on product design efficiency to improve revenues and reduce costs, respectively. For firms with
an operations orientation in an environment with low uncertainty, a concentration on product
reliability and process efficiency will produce improved revenues and reduced costs,
respectively. A market advantage arises from being market-driven (Day, 2000) which provides
the potential for product differentiation through better identification of the needs of customers
and the ability to anticipate competitors’ product offerings. Likewise, firms that can offer
products with a higher reliability than those offered by competitors are, in effect, differentiating
their product offerings to customers (Douglas and Judge, 2001). Better product design
efficiency reduces costs by eliminating parts that do not add value which, in turn, makes
products easier to produce and consequently reduce the costs. Hence it can therefore again
conclude that TQM has the potential to generate competitiveness.
Rose and Ito (2006) point that the creation of knowledge through TQM-linked activities helps
in the deployment of distinctive competencies that is at the heart of the organization. TQM
allows for both the company’s adaptation to its environment and thç deployment of leadership
abilities through the articulation and communication of a shared vision (Webley & Cartwright,
2006).TQM contributes to the enhancement of know-how through human resources policies
that encourage employee creativity and breaks down the organization’s frontiers and favours
the setting up of associate relationships with both clients and suppliers. Youssefet al., (2006) in
addition point that
TQM favours a reduction in the variability of processes and in lead times, and also promote the
decentralization of the decision-making process, and the use of techniques such as quality
function deployment, which allow for customer, needs to be incorporated into design
specifications. In addition, TQM contributes to the improvement of the company’s reputation,
through the good relationships maintained with clients, suppliers and amongst the employees
themselves, and through the generation of high expectations in the attainment of good
performance.
2.5 Summary
The chapter has addressed whether the capabilities generated by TQM are related to
competitiveness both in literature and empirical reviews. The main intent of this is to explore
the relationship between TQM and competitiveness, whether the claims in the TQM literature
that the strategy can produce a sustainable competitiveness are justified. From the studies, it is
evident that there exists evidence to show that TQM can generate a cost or differentiation-based
13
competitiveness. Using concepts from resource-based theory and systems theory, it has been
shown how the process of TQM has the potential to create sustainability of competitiveness.
The individual components of the strategy’s process embody tacitness and are a complex
system, thus producing the causal ambiguity that can protect a TQM-based advantage from
imitation. The components of TQM that were discussed and are thought to be a source of
competitive advantage include leadership, customers, employees, suppliers and continuous
improvement.
14
CHAPTER THREE
RESEARCH METHODOLOGy
3.1 Introduction
This chapter presents the research methodology that was used to carry out the study. The
chapter describes the proposed research design, the target population, data collection
instruments and the techniques for data analysis.
The research design adopted was descriptive research design. According to Cooper and
Schindler (2000), a descriptive research design is concerned with finding out the; who, what,
where, when and how much. Furthermore, a research design is structured, has investigative
questions and part of formal studies. The design will be appropriate because the main interest
will be to explore the viable relationship and describe how the factors support matters under
investigation.
Descriptive design method provides quantitative data from the chosen population. This design
will provide further insight into research problem by describing the variables of interest. Best
and Kahn (2002) asserts that descriptive design involves describing, recording, analyzing and
interpreting condition that exists. The advantage of this method is that it is quite easy to plan
and execute and it enables the gathering of data on a variety of issues related to the concept.
The major sources of information/data to be used by the researcher will primarily comprise
secondary and primary sources depending on ease, accessibility and availability.
15
relatively simple and straightforward approach to the study of attitudes, values, beliefs and
motives (Robson, 2002). All the items in the questionnaire were measured with a five-point
Likert scale ranging from disagree (1) to strongly agree (5) to ensure consistency and the ease
of data computation (Brah and Lim, 2006).
3.3.2Secondary sources
The information was obtained from textbooks, magazines, journal articles and library search for
relevant literature. This helped in enriching the researcher with relevant knowledge and
provided wide array information required for this study.
3.4.llntervjews
Both structured and unstructured interviews were employed. The structured interview helped in
directing the researcher and keeping him focused on the subject. The unstructured interviews
also helped in soliciting for more in-depth information.
3.4.2 Questionnaires
The questionnaire was administered through “drop and pick later” method to the manufacturing
company. The structured questionnaire was used to collect data on the total quality practices
and competitiveness of Uganda Clays Ltd. The questionnaires consisted of both open and
closed ended questions designed to elicit specific responses for qualitative and quantitative
analysis respectively. There was follow-up to ensure that questionnaires are collected on time
and assistance to the respondents having difficulties in completing the questionnaires.
The respondent of this study consisted of the company employees of all levels who work in
both production and commercial departments. The company is divided into supply chain which
comprises factory, Engineering, Quality and Assurance, Research and Development,
16
Procurement and Logistics which are branded as the Manufacturing team. There is Finance
team, Marketing team, Sales team and finally the Human Resource team which are branded as
the commercial team. According to Uganda Clays Limited there are 200 employees in the
manufacturing department alone and 50 staff in commercial department.
From the list of the employees in each cadre, a systematic sampling procedure was used where
every 10th staff member in the list was picked to form the sample respondents. From this
sampling design, 25 respondents were selected. Based on the nature of the study, the
respondents were expected to be familiar with quality practices and to be involved in the
process of operational performance evaluation. The researcher purposively sampled
respondents with sufficient understanding of the discipline of quality management on
operational competitiveness.
The data collected was analyzed using descriptive statistics including percentages, mean and
standard deviation and presented using tables, pie chart etc. A mean of 3 or above was to
indicate the extent to which the total quality management practice influence the
competitiveness of the company. A standard deviation of 1 or above was an indication that
there is a high variation among the respondents on the extent to which the variable influence
competitiveness of the company. A Pearson correlation analysis was done to establish the
relationship existing between different independent variables. Once the data was collected, the
questionnaires were edited for accuracy, consistency and completeness. However, before final
17
analysis is performed, the data was cleaned to eliminate discrepancies and thereafter, classified
on the basis of similarity and then tabulated. The responses were then coded into a numerical
form to facilitate statistical analysis.
3.9 Limitation
The study is subject to some methodological limitations. First, it is suggested that the size and
nature of the sample must be enhanced to ensure variability and control for possible extraneous
variation. While the sample is restricted to only a single firm and a single industry, it would be
recommended that data should be gathered from various sectors and industries in Uganda. In
addition since, the data in this research was collected from top managers of the organizations
on the basis of their subjective evaluations, objective performance indicators should also be
employed in the analysis. Further, the study did not account for certain behavioral factors —
related to emp1oyees~ and managers’ characteristics, attitudes, and experience levels — as well
as organizational factors — such as structure, size, and business nature — that play a moderating
role in the relationships highlighted in this study.
18
CHAPTER FOUR
DATA INTERPRETATION AND ANALYSIS OF FINDINGS
4.1 Introduction
The research objective was to establish the relationship between total quality management and
operational competitiveness at Uganda Clays Limited. This chapter interprets and analyses the
findings of the study with regard to the research objective. The analysis is presented in mean
and standard deviations while the findings are presented in frequency distributions and tables.
4.2 Background Information
The demographic information considered in this study included the respondent’s level of
education and the period that they had worked at Uganda Clays Limited. This information is
necessary because the respondents~ competence of answering the questions ably will be
dependent on their level of education and also the period in which they will have worked in the
organization. A total of 25 questionnaires were issued out. The completed questionnaires were
edited for completeness and consistency. Of all the questionnaires distributed 19 were fully
filled and collected back. The returned questionnaires~ represented 76% response rate which
was deemed to be adequate in the realization of the research objectives.
The respondents were asked to indicate their highest level of education. The competence of a
respondent is assumed to have a direct relationship with ones education level, ceteris paribus.
and it will be expected that those respondents that will have attained higher education level and
worked in the organization for more years will be in a better position to give the correct
answers to the questions asked. The results are provided in table 4.1 over leaf.
19
Source: Primary data, 2019
From the table above it is found that all the respondents had tertiary college qualification which
in this case is a diploma (3 9%), university education (3 5%) while those respondents with a post
graduate qualification were 26%. From the results, the respondents were deemed to be
competent enough to answer according the researchers questions.
This is the duration of continuous service that the respondents had worked at Uganda Clays
limited. The result is represented in table 4.2 below.
Table 4.2: Length of Continuous Service
The findings above indicates that majority of the respondents (52.6%) had been working in the
organization for a period more than 10 years while 47.4% had been in the organization for less
than 10 years. On the basis of the same finding more than 73% of the respondents had worked
in the firm for more than 5 years and this means that they will be conversant with the
operational practices in the firm.
The respondents were requested to indicate the extent to which various TQM practices are
being employed in the firm. The range was ,,very low extent (1)~ to very great extent (5). The
scores of very low extent/low extent have been taken to present a variable which had a mean
score of 0 to 2.5 on the continuous Likert scale; (0~ M.E <2.4). On the other hand scores of 3.5
to 4.8 on the continuous Likert was taken to be great extent and very great extent. On the
question of whether the firm had adopted total quality management practice in its operations,
20
all the respondents answered to the affirmative that indeed TQM practices are being employed
at Uganda Clays Limited. This finding would assist the researcher to determine how the effect
of the TQM practices on the operational competitiveness.
There are different critical success factors of TQM practices and the researcher sought to
establish the extent to which different TQM practices are employed at the firm, From the
findings, management of the manufacturing process was found to be a popular practice across
the firms departments (mean=4.3684) as well as the having a committed leadership
(mean=4.2842) and the organizations focus being directed to meeting the customer expectation
and needs (mean=4.0737). However, analysis of information (meaw=3.1053) and the strategic
planning (mean=3.5474) was found to have a low commonality in the organization. This could
be due to the position that the strategic planning task is ordinarily undertaken by the senior
management team without much involvement of the middle and low level staff.
The higher level of standard deviation (SD=0.97526) shows that there was much variation in
the answers provided the respondents. This finding is consistent to one by Reed et al. (2000)
who observed that the two components of TQM (process and content) interact with each other,
21
and it is this interaction that generates the desired operational performance in the organization.
They argued that the content component contributes to competitive advantage, while the
process component generates sustainable advantage since the operations of the firm will need
to be sustainable to guarantee the going concern of the firm. This finding therefore conforms to
the resource based view (RBV) of the firm, and considers TQM elements as either a source of
differentiation/cost leadership advantage, or a generator of barriers to imitation given their
inherent complexity and tacitness. The researcher also investigated individual 5 elements of
total quality management and their results follows.
Performance measures
From the findings in the table above, the firm ensures there is continuous improvement of its
products through the adoption of better processing system (mean=4.2 105) was found to be
common process being undertaken by the firm with a lower standard deviation (mean=3 .7316),
22
it means that there was congruence among the respondents. The ability of the firm to produce
its products within the budgets was also found to be effective TQM practice in the firm. Mann
(2002) pointed that TQM is not only a management tool for producing quality products and
services, but also a process that leads to increased productivity and a more favourable
competitive position. As quality improves there will be less wastage or rework and customer
satisfaction will also be enhanced. As Crossby (2007) opined, TQM requires an organization
culture where all individuals are concerned with quality, want to produce quality products, and
where they can freely question practices that do not produce quality. This therefore requires
operations that are flexible enough to adapt to market requirements. Better product design
efficiency reduces costs by eliminating parts that do not add value which, in turn, makes
products easier to produce.
The top management’s ability to create a vision and promote change is at the heart of successful
TQM implementation. Top management of a firm needs transformational leadership skills and
therefore has the potential to create barriers to imitation. The results on the top management
effect on TQM implementation is presented in table 4.5 below.
Statement
Top management clearly understands the fundamental spirits and
principles of quality management
The departmental heads accept responsibility for quality of goods
Top management of the company has objectives for quality
performance
The company’s plan always incorporates external customers, suppliers
and other stakeholders
Data is analyzed using computer for managers to make decisions
Overall Mean
Source: Primary data, 2019
23
The findings show that top management clearly understands the fundamental spirits and
principles of quality management (mean=4.33 16) and the top management of the company
having objectives for quality performance (4.0368). However the employment of computers to
analyze all the TQM practices application in the firm was found to have a lower mean. The
ability of the firm to incorporates external customers, suppliers and other stakeholders views in
the manufacturing process had a higher variation (SD=l .268 14). As Downton (2003) noted, the
commitment of top leadership in the organization should not be viewed simply as an emotion,
but it should be considered as a desire to satisfy a personal need, from the freedom and
opportunity to take action, and from making investments and sacrifices that will ultimately
produce a profit to the firm.
The role of customers in the firm’s management of quality was also explored and the results are
presented in table 4.6 below.
Table 4. 6: Customer Focus on TQM
24
customer complaints and always strive to have positive engagement with Key Accounts (KA),
key distributors (KD) and traditional market has helped the firm differentiate its operations
with that of competitors and consequently achieve the necessary operational competitiveness.
4.3.4 Employee Involvement
The results show that the firm’s employees are proactive champions of quality management
system, such that they all believe in the need of embracing the tenets of TQM. In recognition of
the same, the firm provides necessary feedback on the TQM process to the employees so that a
sense of ownership to the process is achieved. This feedback increases the teamwork on
employees since to address an emerging challenge, various groups of staff will be required to
come together and address the issue at hand.
Consequently, employee’s involvement in the problem solving stage of a TQM process was
found to be an integral part of the organizations strategy. This finding is consistent with the
finding of Eisenhardt & Tabrizi, (2005) who pointed that teams are appropriate when there is a
need for the coordination of activities, where work needs to be creative, or where major
25
breakthroughs in performance are required. Further, to providing an innovative approach to
solving production problems, cross-functional teams also can help reduce product development
times.
4.3.5 Supplier Relationship
The choice of suppliers and how businesses are effectively integrated to obtaining proper
complementary skills from the suppliers is an important issue. Strategic sourcing by a firm
should consist of strategic outsourcing and supplier capability analysis. The results on the
supplier relationship as a factor in the TQM principle is provided in table 4.7 below.
Table 4.7: Supplier Partnership
OverallMean~41O4~—~-
Source: Primary data, 2019
From the table above, it is found that the firm places more prominence in developing a longer
term relationship with suppliers (mean=4.421 1) who are expected to provide the necessary
long-term competitiveness. In order to improve on their services the company addresses
customer complaints as a method to initiate improvements in current processes. As Kaufman
(2002), noted better relationships between retailers and their suppliers also improve prospects
of new product acceptance Retailers take risks in placing untried products on the shelves. The
risks take several forms. The retailer’s reputation is at stake if the product does not perform
well, and consumers may hold the retailer responsible for selling substandard products.
For quantitative analysis the study used two methods. At first, correlation is used to measure
the degree of association between TQM practices and operational performance of the firm.
Since TQM practices are numerous, the study identified the crucial factors associated the
practice. Pearson and Spearman correlations are calculated for all variables used in the study
starting with the Pearson’s correlation results.
26
4.4.1 Pearson and Spearman’s Correlations
Table 4.8 below shows the Pearson and Spearman’s correlation coefficient generated from the
data. Consistent with Shin and Soenen (1998), the spearmans rank correlation coefficients are
on the upper right triangle while the Pearson product moment correlation coefficients are on the
lower left triangle. Pearson’s Correlation analysis is used for data to establish the relationship
between variables such as those between employment of the TQM practices and operational
performance of the firm.
Table 4.8: Pearson and Spearman’s Correlation Coefficient
I OP~PM TMC CF ‘ El SR
Correlation
Correlation
27
The results show that there is a positive relationship between a firm Operation performance
(OP) and the finns process management (PM), top management commitment (TMC), customer
focus (CF), employee involvement (EI)and supplier relationship. However, a strong association
is realized by effective management of the firms~ processes. The adoption of an efficient
process in the firm is dependent by a strong top management involvement and this shows that
the top management leadership is a critical factor in ensuring the success of a TQM process in a
firm.
These results indicated that the level of TQM implementation is positively and significantly
related to both perceived operational performance of the firm. It appears that the degree to
which the entire TQM philosophy is implemented with therefore determine how the firms
operational performance will be supporting the achievement of the firms goal. This position is
consistent with that of (Kaynak, 2003). Further, there is an association, though not strong,
between implementation of TQM practices and some of the non-financial measures such as
market share growth and supplier relationship and this finding is inconsistent with the one
made by Samson and Terziovski (1999) found support for the relationship between some non
financial measures (i.e. export growth, market share growth, innovation growth, cost of quality,
etc.) and implementation of TQM practices.
28
CHAPTER FIVE
SUMMARY CONCLUSIONS, DISCUSSIONS AND RECOMMENDATIONS
5.1 Introduction
This chapter presents a summary of the key findings of the study as well as the conclusions,
limitations of the study, and recommendations for further research.
5.2 Summary
The main intent of this research was to establish the total quality management and operational
competitiveness at Uganda Clays limited. The finding of this study is that TQM is both a
driving force to competitive strategy selection and an important resource to achieving improved
operational performance. It was found that if TQM is implemented properly, it produces a
variety of benefits such meeting the customers’ needs, improved internal communication, scrap
level reduction, changeover losses, better problem solving bottom line positive returns on
investments. It was also found that the success of a TQM program increases when its
implementation is cascaded down the entire employees cadre since it requires the reformation
of the corporate culture and the permeation of the new business philosophy in the organization.
These results indicated that the level of TQM implementation is positively and significantly
related to both perceived operational performance of the firm. It appears that the degree to
which the entire TQM philosophy is implemented with therefore determine how the firms
operational performance will be supporting the achievement of the firms goal. Based on the
study’s findings, the most important factor was found to be the role of top management. This is
because the success of TQM applications hinges on strong leadership that must be initiated by
the top management. Quality improvement plans proposed by several scholars strongly
emphasize the commitment of top management. The top management of the organization is
directly responsible for determining an appropriate organization culture, vision, and quality
policy which will in turn affect the operations performance of the firm. Generally, the study
found that the five TQM philosophies that were being researched on had a positive correlation
to the operational performance of the firm.
29
5.3 Conclusion on the Study
The globalization trend being witnessed has made organizations to come up with strategies of
how to achieve their objectives efficiently and the adoption of different operational
philosophies has been embraced as one of the strategies. This study suggests the importance of
incorporating TQM programs into the strategy choice process in order to continuously improve
operations, customer relations, and overall performance. The finding indicate that financial
performance measures such as revenue, net profits, and profit to revenue ratio are partially
explained by the implementation of TQM practices. On the other hand, TQM practices provide
a better explanation on financial performance through non-financial performance criteria such
as market development and market orientation. The most important TQM practice was found
to be the top leadership management. Hence, companies should be suggested to develop formal
reward and recognition systems to encourage top leadership involvement and participation,
support teamwork and provide feedback to the employees.
The TQM process is a system with interactive components, and committing to just one part of
the system is unlikely to produce the desired effects. Thus, TQM is more than supplier
orientation or leadership but instead it is all of them together, and successful implementation
means that effort and perseverance are required to find the right balance for each organization.
Consequently, because of the internal tacitness and complexity, attempted imitation of what
other firms have done to be successful as far as implementation of TQM is concerned might not
be tenable.
The research findings highlight the role of the management on business planning, the need for
employee involvement in TQM and focus on the customer. This implies that senior
management must consider their internal strategic management processes, training and
involvement of their staff, and their own role in championing total quality approaches to
managing organisational performance. It was also found that different firms have adopted
different forms of quality management programs but the results are immediate. Consequently, it
30
managers need to know that quality management improve performance and that the results are
not in the short term but instead mid-term to the long term operations of the firm.
31
REFERENCES
Amit, R., and Schoemaker, P. J. H. (1993), Strategic assets and organizational rent.
Strategic ManagementJournaj’, 14, 33-46.
Barney, J.B. (1991), “Firm resources and sustained competitive advantage”, Journal of
Management, Vol. 17 No. 1, pp. 99-120.
Brah, S., Tee, S. and Rao, B. (2000), “Relationship between TQM and performance of
Singapore companies”, International Journal of Quality & Reliability Management,
Vol. 19 No. 4, pp. 356-79.
Djankov, S., and Hoekman, B. (2011), “Conditions for Competition and Multilateral
Surveillance”, The World Economy, Vol.21, pp.1109-28.
Douglas, T.J. and Judge, W.Q. (2001), “Total quality management implementation and
competitive advantage: the role of structural control and exploration”, Academy of
Management Journal, Vol. 44 No. 1, pp. 158-69.
Eisenhardt, K.M. and Martin, J.A. (2000), “Dynamic capabilities: what are they?”, Strategic
Management Journal, Vol.21 Nos 10/11, pp. 1105-1121.
Kanji, G.K. and Wallace, W. (2000), “Business excellence through customer satisfaction”,
Total Quality Management, Vol. 11 No. 7, pp. 979-98
Kaynak, H. (2003), “The relationship between total quality management practices and
theireffects on firm performance”, Journal of Operations Management, Vol. 21, pp.
405-35
Koh, S.C.L. and Gunesekaran, A. (2006), “A knowledge management approach for
managinguncertainty in manufacturing”, Industrial Management & Data Systems, Vol.
106 No. 4,pp. 439-59.
Mahmood, A. and Harrison, F. E. (2001), “Comparative versus Competitive Advantage, and
Competitiveness in Developing Countries”, Socio- economic Development in the 21st
Century, New Delhi: Deep and Deep Publications Pvt. Ltd.
Pandora (2009), ‘Quality management as a competitiveness tool”, Delft, Technical University
Deffi.
32
Porter, M., Ketels, C., and Delgado, M. (2006), “The microeconomjc foundations of prosperity:
findings from the business competitiveness index’, The Global Competitiveness Report
2006-200 7, World Economic Forum.
Porter, M.E. (1990), Competitive Strategy, London: Collier Macmillan Publishers.
Reed, R., Lemak, DJ. and Montgomery, J.C. (2006), “Beyond process: TQM content and
firmperformance”, Academy ofManagement Review, Vol. 21 No. 1, pp. 173-202.
Salaheldin, S.I. (2009), “Critical success factors for TQM implementation and their impact
onperformance of SMEs”, International Journal of Productivity and
PerformanceManagement, Vol. 58 No. 3, pp. 215-237.
Santos, M., Kennerley, M., V., Gray, D. and Neely, A. (2009), “Towards a definition of a
business performance management system”, International Journal of Operations &
Production Management, Vol. 27 No. 8, pp. 784-801.
Sureshchandar, G., C. Lin, C. and Chang, S. (2002), A conceptual model for total
qualitymanagement in service organizations. Total Quality Management &
BusinessExcellence, 12(3): 343-363.
Tippins, M.J., and Sohi, R.S. (2003), “IT Competency and Firm Performance: IS
Organizational Learning a Missing Link?,” Strategic Management Journal (24), pp.
745-761.
33
APPENDICES
APPENDIX I: Questionnaire
Please give answers in the spaces provided and tick (~J ) in the box that matches your response
to the questions where applicable.
Section A: Demographic Information
1. What is your gender?
a) Male I 1 b) Female _____
Employee involvement
Training
..
Process management
Customer focus
~-----
Strategic planning
~------
--~-
34
Information and analysis
Process management
6. To what extent has the following total quality management practices influenced the
performance of your company? Use 1) Strongly disagree; 2) Disagree; 3) Moderate extent;
4) Agree; 5) Strongly Agree
Performance measures 1 2 3 4
1 The company ensures there is continuous Improvement of its products
2 The company meets customer specifications
3 The company ensures there is timely delivery
4 Products are produced within budgets
Top management commitment 1 2 3 4 5
1 Top management clearly understands the fundamental spirits and principles of
quality management
2 The departmental heads accept responsibility for quality of goods
3 Top management of the company has objectives for quality performance — —
other stakeholders
5 Data is analyzed using computer for managers to make decisions
Customer Focus 1 2 3 4 5
Supplier Relationship 1 2 3 4
35
Suppliers work closely with the company in product development
Use of customer complaints as a method to initiate improvements in current
processes
7. To what extent has the adoption of total quality management practices by your company
resulted in the following competitiveness measures? 5) Greater extent; 4) Great extent; 3)
Moderate extent; 2) Low extent; 1) Very low extent
36