ABSTRACT
The dynamic nature of changes in the environment has made organisations, big or small the world over, to turn to “quality” to help them cope with competitive challenges, as they affect tastes and aspirations of consumers. Most organisations have therefore adopted Total Quality Management (TQM) as a way of providing quality products and services to their customers. The Nigeria power sector has been associated with poor quality performance. Therefore, the research examined the prospects of TQM in Nigeria power sector. In a nutshell the research sets out to examine the prospects of TQM in PHCN in relation to the attitude of top management, its applicability in the Nigeria power sector. The survey and descriptive methods were adopted. Three hundred and twelve randomly selected personnel from a population of 1408 participated in the study, as well as four hundred customers were randomly selected from a population of 268,091. The instrument of data collection labeled Total Quality Management Applicability Inventory (TQMAI) was built on a Likert Scale system. Findings indicate that no difference exists between the PHCN staff and customers in their understanding of the relationship between top management support for quality and prospects of TQM. Also the study found that the culture of PHCN does not favour the application of TQM. The study confirms the need for cultural shift/change in order to facilitate the application of the tenets of TQM, and reaping of benefits they may accrue. Conclusively, the Nigeria power sector should initiate a company wide awareness of TQM through seminar and workshop.
CHAPTER ONE INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The dynamic nature of changes in the environment, particularly as they affect the tastes and aspirations of consumers, underscore the need to respond effectively to challenges posed by the changes. On the account of deregulation of our economy, competition has become a major challenge which chief executives must meet effectively in order to remain in business. Most managers agree that if an organisation is to be successful, it must change continually in response to significant development, such as customer needs, technological breakthroughs and government regulations (Eke,
2001:44).
Globalization of market and operations forces organisations to think over their quality problems and in turn their overall organisational competitiveness. In order to be successful in this global market, organisations should dedicate themselves to improving productivity and
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quality in a timely and collaborative manner (Dobyns and Crawford,
1994:102).
Almaraz (1994:141) indicates that productivity and quality are integral components of organisational strategies. Designing and developing suitable strategies, techniques, tools and models for improving productivity and quality have become an essential function of researchers and practitioners in a networked global economy. To this end, organisations have undergone numerous changes over the years in terms of implementing new operational strategies, methods and technologies.
In recent times, the concept of customer services has risen to the centre stage of modern business. As a result of this development, the management vocabulary is now replete with all kinds of technologies which are used to describe one and the same thing, customer service. Among these terminologies are customer satisfaction, customer care, customer relations, etc. (Nwosu, 1996:36).
To achieve world class customer service, Total Quality Management (TQM) techniques, supported by management commitment and good organisation will provide objective means of improving quality and hence the overall organisational competitiveness (Christopher, 1994:49).
Total quality management is among the new techniques which modern organisations now employ with very good result to secure and keep their customers permanently satisfied. It is therefore a way of managing to improve the effectiveness, efficiency, flexibility and competitiveness of a business as a whole (Christopher, 1994:23).
Benson and Savaph (1991:107) assert that TQM involves the whole organisation, getting organized in every department, in every activity with every single person at every level. This involves putting in place, process and system which will ensure that every aspect of its activity is aligned to satisfying customer needs and the organisation’s objectives. Thus for an organisation to be fully effective, every single part of it must work properly together because every person and every activity affect and in turn is affected by others.
Dobyns and Crawford (1994:94) expatiate further that TQM involves deep understanding of three basic components, namely; the system, the process and the philosophy from which the organisation is extracted.
The process here approximates to the necessary economic transformation from an underdeveloped economy to a modern industrial state. It also involves the uplifting of the basic quality of life of its people through
modern processes of production. It involves still, the harnessing of the human and material resources for the goal of fitting into the system above.
The third component of TQM, the philosophy involves the identification of goals which have been partially addressed under the process as well as the means of attaining the goals.
Thus, TQM involves any attempt to improve quality at every phase of an organisation’s work whether it is on corporate plan initiation, implementation, personnel selection or customer satisfaction. Therefore, the ability to meet customer requirement is vital not only between two separate organisations but also within the same organisation.
Ryan (1998:68) argues that quality has to be managed, it will not just happen. Clearly it must involve everyone in the process and be applied throughout an organisation. Failure to meet the requirements in any part of the quality chains has a way of multiplying, as failure in one part of the system creates problems elsewhere leading to a cycle of yet more failures and more problems. The price of quality is the continued examination of the requirements and the ability to meet them. This will lead to a continuous improvement.
PROFILE OF POWER HOLDING COMPANY OF NIGERIA (PHCN)
Major energy product which has emerged from the development of Nigeria’s energy resources is electricity. Although at independence in 1960 the country inherited a rudimentary electric power generation and distribution system under the Electricity Corporation of Nigeria (ECN) and later changed to NEPA.
Nigeria’s Electricity Grid is being run on hydroelectric and thermal plants. The former are predominantly utilized in the northern part of Nigeria while the later which are fueled by petroleum appear to be largely favoured in the southern parts. The disadvantages of these approaches become evident in the harmattan seasons when the water level drops and in the chronic spate of fuel scarcity.
Nigeria has about 5,900 megawatts of installed electric generating capacity consisting of 3 hydro-based stations and 5 thermal power plants (Imoke, L.). Nigeria faces a serious energy crisis due to declining electricity generation from the power plants. Power outages are frequent and the power sector operates well below its capacity. NEPA is in charge of a sector which is grossly inefficient.
The previous Nigerian government set a 10,000MW target capacity for electricity generation by 2007 as a way of increasing power supply which has been epileptic over a long period.
When Chief Obasanjo administration came on board in May of 1999 one of the first tasks it undertook was to charge the then Minister of Power and Steel to put an end to power outages. The minister wasted no time in making some necessary changes in the composition of PHCN. PHCN was reconstituted and new appointments were made bringing a team of specialists and technocrats to replace most of the politically appointed members of the management board. Yet the country recorded no significant improvement in its power sector. Indeed somewhat that the situation got more worse.
A new technical board directly answerable to Mr. President under the chairmanship of Senator Liyel Imoke was appointed in 2006 to oversee the administration of PHCN and its eventual privatization. An improvement is still yet to be seen.
On July, 1st 2006, NEPA was transformed to PHCN in line with the on- going government power sector reform programme.
The Nigeria Electricity Regulatory Commission (NERC) was thereby established under the Electric Power Sector Reforms Act 2005 to provide
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regulatory oversight in electricity sector. PHCN was set up to have a life span of one year after which successor companies owned by private operations would take over from the firm. But, however, exactly a year after the company was established and the exact date it was scheduled to cease to exist, nothing happened.
Part of the efforts to realize this ambition is the on-going power plants construction in different parts of the country. Ten power stations are in the pipeline. They include the 414MW Geregu power station in Kogi State,
335MW Omotosho Gas Turbine Power Station in Ondo State, 335MW Papalanto Thermal Station in Ogun State, others include the Mambilla Station in Taraba State, a 250MW in Calabar, a 500MW plant in Eyaea, Edo State, a 270MW in Ikot Abasi, Akwa Ibom State, a 500MW in Sapele, Delta State and a 230MW plant in Omoku, River State. The existing power stations and their installed capacities are Egbin Thermal Station, Lagos (1320MW) Afam Thermal Station, Delta State (1020MW) Ijoro Thermal Plant, Lagos (40MW), Kainji Hydro Station, Niger State (760MW), Jebba Hydro Station, Niger State (578MW) and Shiroro Hydro, Niger State (600MW). But the actual power capacity currently generating in the country is presumed to be below 4000MW.
The country’s power generating potential is said to be the highest in Africa. This is attributed to her abundant natural resources (Imoke, Ibid). With natural gas reserve of about 188 trillion cubic feet, the country has enough associated gas potential to power the biggest thermal station in Africa. While other countries are busy encouraging investment in nuclear power in addition to the sources of energy, Nigeria is still struggling to exploit the areas other countries have left behind. South Africa for instance has hit a power generating capacity of 26,000MW and is planning to construct additional 5,000MW by 2010. 4000MW is not enough for the country and the projected target of 10,000MW of electricity in 2009 might be hampered. There is still over dependence on the aged plants and obsolete equipment, and also the incessant vandalization of election cables nationwide.
1.2 THE STATEMENT OF THE PROBLEM
The role played by the power sector, as a vital input in the socio-economic and welfare development of any nation cannot be overestimated. Nigeria is blessed with abundant energy resources, but suffers from perennial energy crisis that has so far defied every solution.
Evidence abounds that poor quality culture has been the bane of management in Nigeria. This record contrasts sharply with empirical evidence from developed nations, where tremendous improvement has been
recorded in almost all fields of human endeavour. Final delivery is still judged to fall below expectation in Nigeria and lack of customer focus has been given as the main reason for the suboptimal performance of many organisations. Many industries are said to believe in the concept of ‘sellers market’ which makes them start from the stand point that the customer has to look for them and not necessarily that managers look for the customer.
Nigeria faces a serious power crisis due to declining electricity generation from the power plants. Power outages are frequent and the power sector operates well below its capacity. Despite efforts by government to end the country’s chronic electricity problems, an assured power supply is still a distant dream. Even though the country is endowed with huge power generating potentials, the country’s power supply is still abysmally low.
Given the deteriorating power supply and unsatisfactory performance of the power sector, there is a strong feeling that the pursuit of quality has not been given its rightful place in the organisational scheme of things. The persistent power problem has tended to disrupt productive activities, especially in the industrial sector, where effective operation of machinery and equipment is energy dependent. The situation has become so usual that when there is uninterrupted supply of power for say, one week, people become really amazed.
One is therefore compelled to ask, in this period of TQM, what are the prospects of TQM in the Nigeria power sector?
1.3 THE OBJECTIVES OF THE STUDY
This study is aimed at examining the prospects of Total Quality Management in Nigeria power sector. This project seeks ways by which the quality of service rendered by the power sector can be improved. The epileptic nature of electricity supply calls for serious management effort. To this end, the following specific objectives will be pursued:
1. To ascertain the level of awareness and readiness of the management of PHCN.
2. To examine the prospects of TQM in PHCN in relation to the attitude of top management.
3. To ascertain if the culture of PHCN will favour the application of
TQM in the organisation.
4. To assess the effect of environmental factors on the application of
TQM in PHCN.
1.4 RESEARCH HYPOTHESES
In order to provide focus for the study, the following hypotheses have been proposed to guide the researcher in the pursuit of the objectives of the study.
1. There is a significant difference between the extent to which employees are ready and the swiftness for adoption of TQM.
2. There is a positive relationship between top management support for quality and prospects of TQM in PHCN.
3. There is positive relationship between the culture of PHCN and the application of TQM.
4. External environmental factors exert positive influence on the application of TQM.
1.5 SCOPE OF THE STUDY
This research work is confined to the prospects of Total Quality Management in the Nigeria power sector, a study of PHCN Kaduna Zonal Office, as a management paradigm based on the principles of total customer satisfaction, employee involvement, and continuous improvement in Nigeria power sector.
In a nutshell, emphasis was focus on TQM, as a concept that holds that, no matter how well you are already doing you can always do better.
1.6 LIMITATION OF THE STUDY
There is no doubt that researchers experience some difficulties in the course of undertaking a research. It is noteworthy to mention that the researcher
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encountered some difficulties, among which included bureaucratic bottlenecks in the administrative procedures of the case study, obtaining all the necessary information needed in producing a comprehensive research work was not an easy task.
Also the process of going through some records to obtain data was very tedious and herculean task as some materials needed were labeled “Top Secret”. Cooperation from the staff of the case study limited the research to some vital documents and information, necessary to support this study were withheld as either confidential matter or the uncertainty of the information.
1.7 SIGNIFICANCE OF THE STUDY
The study is important because it will make tremendous contribution towards improving the power sector.
It is in the light of the aforementioned that it becomes paramount to carry out this study because it will help in determining the prospects of TQM in the Nigeria power sector. This will in no small measure, increase performance in terms of profitability and customer satisfaction and thus contribute to knowledge in the field of quality management.
It is hoped that this study will serve as an avenue to managers of PHCN to have a better understanding on ways of handling the power sector for better economic development which will invariably lead to customer satisfaction.
The study will also be of immense significance to managers and future researchers who may wish to probe further on the topic.
1.8 DEFINITION OF TERMS
Deregulation Economics: This refers to those economies whose political superstructure is based on capitalist ideology.
TQM: This is an abbreviation for Total Quality Management
TQM Principles: This refers to doing things right the first time, be customer-centered, build term work and staff empowerment.
PIMS: This is defined as the Profit Impact of Market Strategy, one of the first solid pieces of evidence linking TQM.
NERC: This is an abbreviation for Nigeria Electricity Regulatory Commission, which was established under the Electric Power Sector Reforms Act of 2005.
PHCN: This is acronym for Power Holding Company of Nigeria.
ZEST: This refers to good service delivery as the special emotional plus that keeps the customer coming back time and time again.
This material content is developed to serve as a GUIDE for students to conduct academic research
THE PROSPECTS OF TOTAL QUALITY MANAGEMENT IN THE NIGERIA POWER SECTOR
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