THE EFFECT OF PRODUCT QUALITY CONTROL ON CUSTOMER’S SATISFACTION

(A CASE STUDY OF CADBURY NIG. PLC)

ABSTRACT

This research study examined the effects and possible solutions of product quality control as it affects the ordinary customer using Cadbury Nig. Plc as a case study. The research study was aimed at evaluating the product quality and customer satisfaction on the growth and profitability which the organization achieves. Also, the effectiveness of product control on customer satisfaction was also addressed, and analyzed respectively. This information was analyzed with the aid of SPSS v 18.0 on different tables and simple random sampling technique was used. The study is limited by time, which is the school calendar year, coupled with the cost involved in conducting such enormous task. The findings of the study reveal that there are several quality control checks and balance which should be put in place for thorough and in depth satisfaction of the final customer. It also posits generally three processes to achieve quality at a standard rate, these include: inspection of incoming Raw materials, inspection of work in progress and the final inspection of incoming raw materials. Interpersonal relationship amongst consumer’s using a definite product also contribute to innovation and better quality of a product through purchasing. The study recommended that management should control and maintain equipment used for production in the organization.

TABLE OF CONTENTS

                                                                                                                             PAGES

Title Page………………………………………………………………………………..              i          

Certification……………………………………………………………………………               ii

Dedication………………………………………………………………………………              iii

Acknowledgement………………………………………………………………….              v

Abstract …………………………………………………………………………………              vi

Table of Content…………………………………………………………………….               vii

CHAPTER ONE

1.1      Background of the Study………………………………………………              1

1.2      Statement of the problems……………………………………………              2

1.3      Purpose of the study…………………………………………………….              3

1.4      Research Questions………………………………………………………               4

1.5      Research Hypothesis…………………………………………………….               4

1.6      Significance of the study……………………………………………….              5

1.7      Scope of the study………………………………………………………..              5

1.8      Limitation of the study…………………………………………………                5

1.9      Definition of the terms…………………………………………………               6

References……………………………………………………………………………..              8

CHAPTER TWO

2.0      Introduction …………………………………………………………………              9

2.1      Conceptual Framework…………………………………………………              11

2.2      Production Management and Corporate Policy………………                        18

2.3      Models in Production Management and its uses.………….               20

2.4      Production, Process Design……………………………………………             22

2.5      Quality control and strategy………………………………………….              23

2.6      Requirements for Production control.………………………….               27

2.7      Total Quality Control…………………………………………………….              27

2.8      Quality control application……………………………………………              29

2.9      Strategy Consideration…………………………………………………               30

2.10   Determination of methods of inspection.……………………                 31

2.11   Summary of Chapter…………………………………………………….              33                   References……………………………………………………………………               34

CHAPTER THREE

3.0      Introduction…………………………………………………………………               37

3.1      Research Design……………………………………………………………              37

3.2      Population of the study and sample size………………………                37

3.3      Sampling Techniques……………………………………………………               38

3.4      Types of Source of Data……………………………………………….               38

3.5      Method of Data Collection……………………………………………               38

3.6      Data Analysis Techniques……………………………………………..               39

References……………………………………………………………………               40

CHAPTER FOUR

4.1      Introduction…………………………………………………………………..                        41

4.2      Analysis of Research Questions……………………………………                41

4.3      Testing of Hypothesis………………………………………………….                 52

4.4      Correlation Analysis Interpretation…………………………….                 55

CHAPTER FIVE

5.1      Introduction…………………………………………………………………               57

5.2      Summary of Findings……………………………………………………               57

5.3      Conclusion……………………………………………………………………               58

5.4      Recommendation…………………………………………………………               59

5.5      Suggested Areas for Further Study………………………………                59

Bibliography…………………………………………………………………               60

Appendix………………………………………………………………………              62

CHAPTER ONE

INTRODUCTION

1.1      BACKGROUND OF THE STUDY

According to Fagbohungbe (2009) definesproduction as the “process of designing, operating and controlling a productive system capable of transforming physical resources and human talent into needed goods and services”.

Although, some prefer the label production/operations management, the more global term of production used here is to emphasize that production system generates intangible services as well as tangible goods.

Lawal (2007) states at least four reasons why it is important that you know something about production management, production is a core organizational function. The production function commands the flow of resources through the organization. Society depends heavily on the output of productive organizations and the production function is tied to many serious societal components.

A typical operation or production manager views organizations as productive systems, complete with inputs, a transformation process and output. The transformation process consists of interrelated parts, each depends on the other. Among the important parts of productive systems are these activities listed below, (Enikanselu, and Oyende, 2009)

Product design, production planning, production scheduling, production control, purchasing and material management inventory control, work flow layout and production or out put forecasting and quality control.

Together, these activities let managers carry out their economic function of transforming resources into useful goods and services.

1.2      STATEMENT OF THE PROBLEMS

Most organization have nothing to do with company product policies, which could not be visualized as determinants of the product that could be produced, the goals of the organization have not attained the optimum product line.The changes available resources as well as dynamics of the market conditions. In achieving optimum in product competition, certain variables such as composition of product line, dynamism of product attributes are considerations, the selection and design of the particular products and services offered. It was finalized through assessment of interaction between the original concepts, estimated costs of operation, equipment configurations and alternative job or work crew designs. Capacity planning decisions that also determines the location for warehouse and branches and a growth plan, a supply, storage and logistic system (Afewape 2007)

The mature overall system design was rendered in terms of designs for the modular branches. The component of the design included workflow layout and architectural plans. A labour staffing plan that specified just how each operation is to be carried out, including labour time standards, a materials flow plan and layout and, the central warehouse design including storage layout and logistics supply system, the production operation layout, equipment specification, a schedule for the acquisition of property and the building of branches, and a complete financial analysis (Sanyaolu, 2005).

In analyzing what was done and how it was done, it appears that we employed an interactive design process, involving design and redesign to take to account of various interactions. We employed long-range planning concepts, prediction and forecasting techniques, layout planning, equipment justification techniques, behavioural work concepts, product and service analysis and waiting line methods and concepts (Karimu, 2000).

For an organization to be successful, the conception of the process and facilities product design had to represent an integrated view of the conversion process for the system as a whole. In reviewing the longer-term operation decisions, we must realize that they are very significant to the future of the organization.

The decision set against the basic approach to supply distribution and operations for some time to come and committing the majority of the available capital of the enterprise. The key decision that set the design of the productive system are: The design of the product/service bundle to be offered finalized through an interactive process.

1.3      PURPOSE OF THE STUDY

·        To examine the effectiveness of product control on customer satisfaction.

·        To determine the efficient and effective competitive advantage on                                                                                     Customer interest.

·        To assess new product control development programmes on customer satisfaction

·        To evaluate the product quality and customer satisfaction on the growth and profitability which the organization achieves.

1.4   RESEARCH QUESTIONS

·        What is the effectiveness of product control on customer satisfaction?

·        Does efficient and effective competitive advantage affect customer interest?

·        Does new product control development programmes have impact on customer satisfaction?

·        Does product quality and customer satisfaction affect the growth and profitability which the organization achieves?

1.5   RESEARCH HYPOTHESES

Hypothesis 1

Ho: Product quality control will not affect customers’ satisfaction.

Hi: Product quality control may affect customers’ satisfaction.

Hypothesis 2

Ho:     Product quality control has no significant impact on customers’ satisfaction

Hi:       Product quality control has significant impact on customer satisfaction.

1.6      SIGNIFICANCE OF THE STUDY

The significance of the study is to ensure that organization create better image for the customer. The study will help the organization in ways of controlling their activities in respect to high product standard. Customer satisfaction with performance measure of the company is another significance of the study.

Hence, the product quality and customer satisfaction survey would give a comparison test to validate programme performance measures with an organization. This study will also be useful to students who patronize the product or service, and the organization about the relevance of product quality control tools as inducing factors to consumer patronage of product and the importance of quality control in everyday activities on campus.

1.7      SCOPE OF STUDY

The scope of this study is limited to CADBURY NIG. PLC.  in order to find out the relationship between product quality control and customer satisfaction. The staff of the company will be used as a study population.

1.8      LIMITATION OF THE STUDY

The research work will be limited to CADBURY NIG. PLC.Especially,the production, sales & marketing, Research and Development and human capital department. The limitations of this study include: Time constraints, Mobility, Financial Constraints and Non-Flexibility of respondents.

1.9      DEFINITION OF TERMS

Pricing: Is the financial bargaining of the product. It can be said to be financial rate at which the product sales in the open market.

Market Segregation: This allows for a market to be segregated by different product variations so that consumer’s are open to different choice in the market area.

Manufacturing Date: This is the printing or label placed on a product for identification and notification of a particular product manufacturing date. It also carries other details like expiry date, and so on.

Target Consumer: These are individuals, organization or societies who are in need of various products.

Marketing Strategy: Is the basic approach that the business unit uses to achieve its objectives and it consists of broad decision on target market/consumers.

Shopping Product: Are items from which buyers are willing to put forth considerable effort in planning and making the purchase.

Impulse Goods: Are low price items that are routinely purchases on a specific trip to a store.

Products: An asset of tangible and intangible attributed including packaging, color, price, which the buyers may accept as offering want-satisfaction.

Packaging: Is the process of designing and producing the container or wrapper for a meeting the prospect face.

Brand: Is a name symbol or special design or some combination of these elements that is intended to identify one product from competing ones.

Labeling: Is the part of a product that carries verbal information about the product or the seller.

Warranty: Is to give buyers some assurance that they will be compensated in case the product does not perform up to reasonable expectation.

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