Effects of Total Quality Management and Supply Chain Management On Organizational Performance A Case Study of Bidco Oil Refinery (K) Ltd Thika, Kenya

TABLE OF CONTENT

DECLARATION ............................................................................................................................. i

APPROVAL .................... : ...... , ....................................................................................................... ii

DEDICATION ....................... :: ...................................................................................................... iii

ACKNOWLEDGEMENTS ........................................................................................................... iv

LIST OF ABBREVIATIONS ......................................................................................................... v

DEFINITION OF TERMS ............................................................................................................ vi

TABLE OF CONTENTLIST OF TABLES ................................................................................. vii

LIST OF TABLES ......................................................................................................................... xi

LIST OF FIGURES ...................................................................................................................... xii

LIST OF FIGURES ...................................................................................................................... xii

ABSTRACT ................................................................................................................................. xiii

CHAPTER ONE ........................................................................................................................... 1

INTRODUCTION ......................................................................................................................... 1

1.1 BACKGROUND OF THE STUDY ......................................................................................... I

1.2 THE CHOICE OF BID CO OIL REFINERY ........................................................................... 3

1.3 STATEMENT OF PROBLEM ................................................................................................. 3

1.4 PURPOSE OF THE STUDY .................................................................................................... 4

1.4.1 RESEARCH OBJECTIVES .................................................................................................. 4

1.5 RESEARCH QUESTIONS ...................................................................................................... 4

1.6.1 GEOGRAPHICAL SCOPE ................................................................................................... 4

1.6.2 CONTENT SCOPE ............................................................................................................... 5

1.7 SIGNIFICANCE OF THE STUDY .......................................................................................... 5

1.8 CONCEPTUAL FRAMEWORK ............................................................................................. 5

1.9 Map representation and photos ................................................................................................. 8

CHAPTER TWO .......................................................................................................................... 9

2·.0 INTRODUCTION ................................................................................................................... 9

2.1 OVERVIEW OF TQM AND SUPPLY CHAIN ...................................................................... 9

2.1.1 TQM ....................................................................................................................................... 9

2.1.2 Supply chain management ................................................................................................... 11

2.1.3 Key feature of flexible supply chain .................................................................................... 13

Vll

2.2 TQM PRINCIPLES ............................................................................................... . ' ' I'

External Customers....................................................................................................... 1 -I

2.\ KEY ELEMENT OF TQM.................................... ......... ...... .................................. 1 r,

2.3. 1 EMPLOYEE INVOLVEMENT ........................... : ............................................................. 16

2.3.2 CUSTOMER FOCUS ........................................................................................................ 1 il

2.3.3 BENCHMARKING ............................................................................................. .

2.3.4 CONTINO US IMPROVEMENT ...................................................................... ..

2.4 Supply chain quality management based on the TQM principles ....... .' ........... : ...... .

2.4.1 Customer focus ................................. : ................................................................. .

2.4.2 Leadership .................................................. , .................. : ..................................... .

2.4.3 Involvement of people ........................................................................................... .

2.4.4 Process management ............................................................................................ .

2.4.5 System management ........................................................................................... .

2.-1.6 Continual improvement ........................................................................................ ..

2.4. 7 Factual approach to decision making ................... : ................................. ..

:2.4.8 i'vlutually beneficial supplier relationships ............................................................ ..

2.5 The Cost oCTQM ....................................................................................................... .

2.6 Factors that have conttibuted to the dewlopment ofTQlvi ........................... ..

2.7 Tools used In TQivi ............................................................. .

2.7.1 Quality assurance ................................................................................................. .

' 2.7.2 Quality control ................................................................................... ..

2.7.3 Quality Circle ................................................................................................. .

2.7.-l Quality standards ..................................................... ..

2.7 ~.1 ISO 9000 Series ............................................. .

2.8 TECHNIQUES FOR QUALITY CONTROL AND RELIABILITY ......... .

2.8.1 INSPECTION ............................................................................................................ .

2.8.2 QUALITY FUNCTION DEPLOYMENT (QFD) ................................. · ..... .

2.8.2.1 BENEFITS OF QFD .................................................................................... .

2.9 FAILURE Iv!ODE ERRIORS ANALYSIS (FMEA) ....................... .

2.91 TYPES OF FMEA ............................................... ..

2.9.1.1 SYSTEM FME/\ ................................... .~ •. .......

VIII

I .

... . I 7

17

IX

I~

' 1 t-:

'I

. .. 21

. 21

. ~-1

\

.. - . '

2.9. I .2 DESIGN FMEA .............................................................................................. 29

2.9.1.3 PROCESS FMEA. ......................... ........ ..... ... ... . .. . .. ....... ... . . . . . ... 29

2.9.1.4 ADVANTAGES OF FMEA .... , ................................................................................ 29

2.9.1.5 DISADVANTAGES OF FMEA ..................................................................................... 29

2.10 CONTRIBUTION OF TQM TO ORGANIZATION .... , ................................................... 29

2.1 I CHALLENGES ENCOUNTERD IN IMPLEMENTING TQM ..................................... 30

CHAPTER THREE ....... : .......................................................................... ~.............. ',I ... ' ..•........•. -

METHODOLOGY..................................................................................................... . ... 3 I

. 3.0 INTRODUCTION ............................................................ ,. . . .... ..... ... . .. ... .. . .. . .. 31 . . . 3.1 RESEARCH DESIGN............................................................... ...... .... .... ..... ..... . ... 3 I

3.2 SAMPLE SIZE AND STUDY POPULATION .............................................................. 3 I

3.3 SAMPLE SELECTION ................................................................... . . ... ~...:

3.4 SAMPLING TECHNIQUES ....................................................... . .. :r:

3.4. I SAMPLE RANDOM TECHNIQUE ................................................ :.............. . ..... 32

3.4.2 PURPOSIVE SAMPLING TECI-INIQUE ........................................................... . ........ 32

3.5 DATA COLLECTION METHOD ..................................................................... .. '" .... _)..:...

3.5. I QUESTIONNAIRES ......................................................................... .

3.5.2 INTERVIEWS .................................................................................... . " ··········· ,)J

3.5.3 DOCUMENTARY REVIEW......................................................................... . .. 33

3.5.-l OBSERVATION ................................................................................... . . .. . " u

3.6 TEC!-INIQUES FOR DATA ANALYSIS ........................................ .

3. 7 LIMIL-\TION OF THE STUDY ....... . ...... ...... ...... .

3.7.I TIME CONSTRAINT ........................................... .

3.7.2 FINANCIAL CONSTRAINT ..................................... ..

CHAPTER ·FOUR ....................................................... ..

PRESENTATION AND ANALYSIS OF FINDINGS...... . ........... .

-1.0. Introduction ............... : .................................................. . i ························ ··············· . -1. I .0 Demographic characteristic ............... _ .......................................... .

-1.8 Hem· is quality assured within the organization° ......... ..

•

IX

. ... ·'·' "

' ' . '

·········· 34

··········· .. 35

. .. 3.)

... 35

.35

.--U

4. 9 Techniques used in controlling quality in Bidco Oil Refinery Limited ........... .' ..................... 44

4.10 Working together to support cross-functional key performance indicators to assure Total

Quality .......... : ....................................................... ~ .................................. c ••••••••• '. •••••••••••• : •••••••••••••• 45

4.11 The benefits ofTQM in the Supply Chain Management.. ................................................... 46

4.12 Challenges encountered when accomplishing TQM ........................................................... 4 7

CHAPTER FIVE ........................................................................................................................ 49

SUMMARY, CONCLUSION AND RECOMIVIEND'ATION ......................................... 49

5.0. Introduction................................................................................................................. .. -J'J

5.1. Summary ...................................................................... :........................................ 49

5.2 Conclusion ........... : ......................... ~ ............................................... , ...........•...

5.3 Recommendation ...................................................................... .

REFERENCES ..................................................................... . ·'

APPENDICES ................................................................................ .

APPENDIX 1 ........................................................................................... .

QUESTIONNAIRE ...................................................................... .

INTERVIEW GUIDE QUESTIONS ........................ , ........................... · ... 5R

DURATION OF THE STUDY............................................. . ................................ ···············59

AI)l)ENDIX 3 ............................................................................................................ . . 60

EST!f'vfATED BUDGET POR THE DISSERTATION ............................ , ........... . . .. ()l)