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Impact of Total Quality Management Process at Kgalagadi Breweries in Botswana
Abstract
One of the most dramatic and significant world trends over the past 2 decades has been the rise and sustained growth of international business. Internet has truly elevated the growth of international businesses allowing both goods and services to cross borders to wherever they are needed. Companies such as Coca-Cola and most notably, with regards to this paper Black Label, a popular international brand of beer have crossed the borders to be brewed and sold here.
Its reported that the most significant rise in global markets are the financial markets, forex markets trading more and more billions of pulas transacted each day. It is therefore extremely imperative that for solid, tangible goods such as alcohol and drinks have a solid total quality management process to ensure that products stay the same across the world.
Total Quality Management (TQM) is one of the popular modern management concepts with emphasis on quality in the entire organization and extends from supplier to customer. The main purpose of this study is to assess the adoption of TQM elements in 1S0 9000 certified company in case of KBL. In this study KBL was selected as it has been certified in ISO 9000 Quality management system. The study hopes to analyze the case of KBL and how it has taken its management practices, production process, employee training and other TQM into the fabric of the company and how they have performed because of it.
Introduction
Total Quality Management (TQM) is a long term effort by an organization to change its own management approach towards the production of goods and services that continuously meet customers’ requirements at the lowest cost possible by releasing the potentials of all organizational resources. TQM is about changing the way things are done thereafter. To improve performance continuously at lowest cost, people need to know what to do, how to do it, have the right tools to do it, be able to measure performance and receive feed-back on current levels of achievement.
There are quite a lot of companies that have succeeded in growing the companies big enough to sell to the entire world, one of those companies is Microsoft, whose goods are known to almost everyone the other is Uber, a taxi service company that has gone hugely international but is still a service. Despite the difference in these companies, their services and products have stayed relatively similar across the entire world and this is in particular to the amount of time they haev taken to review thier quality management processes which have ensured that they deliver the same amount of quality across the world. This paper seeks to find out the many ways in which certain Kgalagadi Breweries in Botswana, the home of the country’s brewery, has been affected by thier total quality management process. By including other researches and intervewing the company to find out the challenges they faced in producing international standards worth of produce.
Background of the study
Most researchers if not all, have agreed that growing a business to supply internationally is perhaps the best method of profit making as your product will reach more customers. This has been the case especially with the help of technological advancement in recent years, a lot of companies who would have otherwise remained as small corner stores have found a corner in every country worldwide. Richard Biggs, the founder and CEO of Atlantric LLC published a paper called 10 reasons to go international in which he mentioned for several reasons that not only will it increase sales and profits but it will provide the company with both long term and short term security knowing it has put its eggs in different baskets all over the world (Biggs, 2013). Another author, Dr. Rojer Best mentions that going international will assist in giving the company economies of scale, in many manufacturing industries for instance, going global can help the company achieve greater scales of economy, especially for companies from smaller domestic markets, a very good example being Choppies in Botswana. In other cases, a company may seek to exploit a unique and differentiating advantage (intellectual property), such as a brand, service model, or patented product (Best, 2013).
Companies have however started to grow weary as they continue to grow, having really began with Franchise companies like KFC and MacDonald’s who try to keep their taste the same for consumers to keep buying from the same brand it was in fact essential that the brand stays the same.
Problem statement
Steve Jobs once said Quality is greater than quality, this is the man who created Apple. The reputation of a company can be built solely on its quality products and consistent delivery in produce. Quality is the number one priority for most international companies and brands and they do their best to ensure that they put exceptional TQM processes in place. Companies in Botswana have quite often been accused of bad service, which could mean a number of things but ultimately mean there is a lack of quality management. This could mean check and balances put in places to ensure that quality service is assured all the time, the question is then why is this not happening and if it did, what part does it play in ensuring that production of alcohol in the KBL remains at its best.
Aim of study
To find out the impact of total quality management processes in the brewing of alcohol at Kgalagadi Breweries otherwise known as KBL.
Objectives of the study
- To contribute to the literature by providing empirical evidence from a mixed economy country like Botswana.
- To evaluate how TQM has impacted an organization like KBL.
- Find out how other companies or organizations can instill TQM values in their system in order to perform better.
Research questions
- Are there any correlations between Total Quality management and the success of a company over a long and short term?
- How much impact does Total Quality management actually have on the success of the company?
Hypothesis
- H1: There is a significant relationship between Total Quality management and the success of a company.
- H2: A company that does not practice Total Quality management will not likely succeed compared to one that does.
Significance of study
This study will contribute to the overall knowledge and research on Total Quality management practices and impacts on an organization in Botswana. The difference this paper will bring is also an analysis of TQM in the case of companies in Botswana, KBL specifically and what other companies can take from it. It will assist researchers will the relevance of information with the factual data found on the chosen topic and will also assist with some decision making processes for those who may be requiring the information for such.
Assumptions
It is assumed the study will find all documentation regarding TQM in Botswana.
It is also assumed that TQM is a huge factor to consider if you hope to be successful in business, both long and short term.
Limitations of study
- Lack of relevant information on the topic locally.
- Certain data required to complete this study may be regarded as very sensitive and will not qualify for scholastic purposes.
- Lack of funds to ensure good quality data is collected to complete this project.
- Lack of time to ensure that quality data is carried through.
- Lack of professional support from those who have advanced economics knowledge as this is not a very significant study.
Methodoly
Introduction
Research methodology is a systematic way to solve a problem. It is a science of studying how research is to be carried out. Essentially, the procedures by which researchers go about their work of describing, explaining and predicting phenomena are called research methodology. It is also defined as the study of methods by which knowledge is gained.
The chapter intends to provide an in depth description of research methodology. It covers research methods, research design, population sample, data collection, questionnaires, data analysis procedures and ethical considerations.
The research will be based primarily on primary data which has been collected from various stakeholders from KBL via interviews and questionnaires.
Research design
The research design that will be carried out in this project is one of experimental design whereby the writer will try to see just how much impact TQM has on the success of the company taking into account all its organizational processes. This research will use a qualitative method of research in order to reach its conclusion by providing open ended interview questions and analyzing documents on the subject which have numerical information. With this design, the researcher collects information and data based on the topic from the responses of these questionnaires and interviews.
Target population and sample
Kgalagadi Breweries Limited, otherwise known as KBL, are the largest brewers of alcohol in Botswana and produce different brands of beer both local and international.
Research instrument
This research is an assessment of Total Quality Management and how KBL has used such practices and methods to produce high quality products all the time. As mentioned before, open ended interview questions will be provided to not only give a consistent feedback from interviewees at the KBL but so they have the comfort of adding onto whatever we may have missed in asking.
Procedure of data collection
Information will be collected from reports, researches, books and all the information relating to the topic as well as questionnaires and interviews.
Procedure of data processing
Data collected from text books and reports will then be summarized to that which the researcher only needs. The data captured will be processed and presented in the form of quantitative data so as the express the numerical figures of the market attractiveness and difficulties in market entry for international companies.
Qualitative data will also be collected from the interviews and used to express the under-lying reasons, as to why some of these factors may have been difficult to overcome of how they companies did overcome them.
Data analysis
The use of graphs and tables will come into play as the researcher tries to demonstrate
Informed consent
I will request and try to obtain legal permission to conduct the study and try to get assistance from course coordinators in order to complete this project. Detailed letter in the Appendix.
Privacy and confidentiality
The researcher wants to assure all readers that all information found on here is fully compliant with those who have assisted in its write up and they have been fully agreeable in all information given. The research has gone the extra mile of removing all names and locations of those who may have contributed to this research for their safety and privacy of opinions.
Ethical considerations
- Prevent against falsifying data.
- Protect the integrity of other researchers and persons associated with this research.
- Beneficence- maximize possible benefits, minimize possible harms.
- Justice – on individual and social level.
- Try to remain unbiased.
2.1 Literature review
Creelman, in one of the oldest papers written on Total Quality management in relation to our paper and or industry tries to describe the efforts made by Newcastle Breweries to improve its competitiveness by implementing TQM models and practices in order to achieve superior customer satisfaction. The research enquires information from the company through its introduction of a “quality customer package” outlining the range of services available to the customer; the creation of time for open forum discussions; involvement of all employees; and the implementation of its quality council, quality improvement teams and suggestion box schemes that are all intended to improve not only customer care but to provide excellent service and to learn their customers better (Creelman, 1992)
The second study was aimed at evaluating Total Quality Management as a business technique in manufacturing industries with particular emphasis on the brewing sector – A case study of National Breweries plc in Nigeria and also to analyze the effectiveness of the quality management techniques currently used. This research is very similar to the one we want to take on and should provide a good base to share notes with. The aim of the study was to examine total quality management (TQM) as a business technique for continuous quality improvement by finding out the extent to which TQM is being used at national breweries plc. By evaluating management commitment and work culture which reflects people’s beliefs, attitudes, values and philosophy. (Gideon, 2012)
The third study we considered to make it to this paper hoped to examine the Impact of Total Quality Management on organizational productivity, A Case Study of Ama Brewery, another brewery in Nigeria. The research further focuses on the approach adopted by organizations that has implemented the concept and the rate of success achieved. These is a proof that effective TQM implementation can improve their competitive abilities and provide strategic advantages in the market place. The effects of not participating in TQM implementation by all management levels, challenges disrupting the TQM implement in an organization and failure to organize frequent employee training have been a big problem. The research work tried to ascertain the impact of TQM implementation in the organization, level of management involvement, challenges disrupting the implementation, impact of employee training and TQM principles application to goal attainment. It is through the questionnaire method and oral interview that data are collected from the aforementioned organization, also very much similar to what our own research hopes to end. The aforementioned organization agreed that TQM have impact in organizational productivity. It is not all management levels in Ama Brewery contribute in TQM implementation. The failure to organize frequent employee training have been a major setback to their organization, while some management challenges disrupt TQM implementation in the organization. They should engage in frequent employee training in order to increase the level of individual and organizational competence. All management levels should join hands in TQM implementation so that quality will be attained (Alimot, 2012)
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