ASSESSMENT OF QUALITY MANAGEMENT PRACTICES ON OPERATIONAL PERFORMANCE OF FOAMS AND PAINTS MANUFACTURING INDUSTRY IN ILESA, OSUN STATE

Abstract

This study assessed the effect of quality management practices, the extent of operational performance and the relationship between quality management practices and operational performance of two foam and paint companies in Ilesa. It also examined the effect of these practices on the profitability of the firms. These two firms are the only currently existing Foams and Paints manufacturing firms in Ilesa, Osun State, Nigeria that constitute the Study Area. The study employed questionnaire technique to elicit information from a sample size of 199 respondents out of the total 266 population of the Study Area. The collected data from 84.92% returned questionnaire were analyzed using descriptive and inferential statistics. Descriptive statistics employed include frequency, weighted average and relative importance index. Inferential statistics used were correlation and multi-linear regression analysis. Result obtained showed that the total quality management practices have a positive effect on continuous improvement, customer focus, top management commitment, operating environment and organizational capacity. All total quality management indicators improve the operational performance of Foam and Paints Manufacturing Firms in the industry. Findings from this study show that total quality management affects customer satisfaction. Multi-linear regression analysis shows that there was positive correlation coefficient (r) = 0.824 and coefficient of determination (r2) = 0.679 between total quality management practices and operational performance in Paint and Foam industry in Ilesa, Osun State, Nigeria. The ANOVA test produced an F-value of 68.60 which is significant at P ≤ 0.01. The result reveals that continuous improvement, customer focus, top management commitment, operating environment and organizational capacity have positive coefficient. Significant differences (p ≤ 0.05) were recorded for all total quality management practices indicators except customer focus. This study recommends that all manufacturing firms especially those in Paint and Foam industry should adopt the quality management practices to improve their operational performance (profitability) and customers’ satisfaction since there is a positive relationship between quality management practices and operational performance (profitability).