AN EVALUATION OF THE ROLES OF MANAGERS IN IMPLEMENTATION OF ISO 9001 QUALITY MANAGEMENT SYSTEM IN SELECTED NIGERIAN COMPANIES

BY ONWUKA ,WILLIAM EBERE EAA/040/318

A RESEARCH PROJECT SUBMITTED TO THE DEPARTMENT OF MANAGEMENT SCIENCES, FACULTY OF ENGINEERING TECHNOLOGY LADOKE AKINTOLA UNIVERSITY OF TECHNOLOGY, OGBOMOSO, NIGERIA, IN PARTIAL FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER IN BUSINESS ADMINISTRATION (MARKETING SPECIALIZATION)

DECEMBER 2006
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CERTIFICATION
This thesis with the title An Evaluation of the Roles of Managers in Implementation of ISO 9001 Quality Management System In Selected Nigerian Companies submitted by Onwuka William Ebere Has satisfied the regulations governing the award of the degree of Master Business Administration, Ladoke Akintola University of Technology, Ogbomoso.

Name and Signature

Date..

. Major Supervisor Name and Signature

Head of Department

Date.

ACKNOWLEDGMENT

In writing this project I have had to recount our experiences that have been made possible by God, and mentors, especially, HRH (Dr.) E. E. Okolie of the Pan African University Lagos, Nigeria and Mr. Mic Osu.

I am also appreciative of the ever supportive roles of my wife and friends, Ngozi Onwuka and our exciting children Divine and Victor. You all are a blessing.

I remain deeply indebted to you all while the Almighty God receives all the glory.

DEDICATION

I dedicate this work to my wife, kids and siblings.

ABSTRACT

The ever increasing demand of customers and the challenges of globalization put a pressure on Nigerian companies to adopt proven frameworks for organizational excellence. On of the frameworks used by Nigerian companies today is the implementation of ISO 9001 Quality Management System. Currently about 146 companies have been certified by the Standards Organization of Nigeria as having developed a Quality Management System that conforms to the requirements of the International Standard. This study has sought to evaluate the roles of Managers in the implementation of ISO 9001 in selected Nigeria companies. It has also sought to determine the impact of training in the effective implementation of the requirements in the concerned firms. To a large extent this study brings to forefront the challenges managers meet as a consequence of inadequate resources and the areas of success.

The field work had involved the administration of a questionnaire to managers in three manufacturing firms in Lagos. One of the companies has been certified since 2004 while the other two are in various stages of achieving certification. Simple statistics were used in analyzing the data obtained.

The outcome of the work shows that majority of managers in Nigeria companies implementing ISO 9001 do not have an accurate knowledge of the main reasons while ISO 9001 is created. Most of the trainings on Quality Management systems are provided by Quality Management consultants and the Standard Organizations of Nigeria. Most of these companies have been able to establish processes and procedures that are capable to delivering quality products and services. The major

constraints are in getting adequate resources to run their systems in certain organization as well some managers nit showing adequate commitment to the certification process.

It is recommended that managers get further training and use effective resources as books a, journal and the Internet to keep abreast of best practices in implementing ISO 9001 so that their organization can maximize he derivable benefits.

TABLE OF CONTENTS

Title page Certification Acknowledgement Dedication Abstract

CHAPTER 1 INTRODUCTION

1.1 Background Across the globe, the business environment is getting fiercer as customers expectations increase. Thus organizations are daily seeking frameworks to help them achieve their corporate objectives more competitively. In Nigeria, with the increasing challenge of globalization the need for local companies to remain relevant makes the adoption of some of the proven frameworks used by successful companies in other parts of the world expedient.

One of the proven frameworks that has won world-wide acceptance is the implementation of a Quality Management System based on the guidelines of ISO 9001. This is a Standard issued by the International Standards Organization based in Geneva. Switzerland. The current versions of the ISO 9000 series of standards are as follows: ISO 9000, Quality management systems Fundamental and vocabulary; ISO 9001, Quality management systems Requirement; ISO 9004, Quality management system-Guidelines for

performance improvements. Because the requirements of ISO 9001 are generic, they can be used by any type of organization to help it create a system that will consistently meet its customers needs.

A Quality Management System is defined in BS EN ISO 8402 (1995) as Organizational structure, procedures, processes and resources needed to implement quality management.

The purpose of a quality management system according to Dale, B and Bunney, H. (1999) is to establish a framework of reference points to ensure that every time a process is performed the same information, methods, skills and controls are used and applied in a consistent manner. They also say that the quality management system should define and cover all facets of an organizations operation from identifying and meeting the needs and requirements of customers, design, planning, purchasing, manufacturing, packaging, storage, delivery, installation and service, together with all relevant activities carried out within these functions.

In general the benefits derivable from implementing ISO 9001 are clarification of tasks so that everyone knows what they are doing and how to do them best;

aids the pursuit of value for money from suppliers; creation of an integrated system aligned to business objectives; derivation of greater impact of human resource contribution and the setting of a measurable target for a quality improvement programme. Onwuka W. E. (2006)

Nigerian companies began implementing ISO 9001 in the early 90s. One of the first companies to implement the system was Wellcome Nigeria Limited, but the first company to be awarded the certificate of conformity was Nigerian Cash Register, a computer services firm. As a testimony of the values gained in implementing the system, to date about 146 companies in Nigeria have current registration with the Standards Organization of Nigeria.

The Standards Organization of Nigeria (SON) was established by Act No. 56 of 1971 and was solely vested with the responsibility of preparing standards for products and processes and for ensuring compliance with the Federal Government policies on Standards Metrology and Quality Assurance of both locally manufactured and imported products and services throughout the country. Act No. 18 of 1990 excised the organization from being an integral part of the Federal Ministry of Industry, and granted the Organization the status of a body corporate with perpetual succession and common seal, which may sue and

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be sued in its corporate name. Apart from Quality System certification the organization also certifies systems for environmental management and Laboratory testing and calibration amongst other services.

Implementing ISO 9001:2000 requires every one in the organization to take personal responsibility for the quality of the processes for which they are accountable. It therefore becomes a necessity that managers in organizations implementing ISO 9001:2000 should have adequate knowledge of the Standard so that they can be effective in their roles as managers.

The classical roles of management include controlling, directing, executing, leading and planning amongst others. Hence the roles of managers in successful implementation of ISO 9001 are closely related to their operational duties.

Because the decision to implement ISO 9001:2000 is a strategic management initiative it becomes very necessary that for it to be successfully implemented certain critical success factors be managed effectively. Dale and Bunney (1999) have listed these factors to include having a clear focus for seeking ISO 9001 registration, managing the process of achieving certification as a project, performing a gap analysis of the existing quality management system before the

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implementation of ISO 9001 and the formation of a steering committee. They also recommended the establishment of a conducive environment for the

development of a quality management system in the organization, provision of training on the importance of product and service quality, in general and the reasons for the quality management system and its benefits, in particular at all levels of the organization. It is crucial that in writing the standard operating procedures that drive the quality management system that the personnel who writes them ensure that they are accurate, practical and verifiable. The procedures should document what employees are currently doing as this eases the difficulty in achieving certification.

It is therefore evident that organizations that have managers who are very conversant with the requirements of the standard and have ownership of the implementation process are most likely to develop systems that are effective.

1.2

Statement of the problem

Many managers in organizations implementing IS0 9001 in Nigerian companies do not have sufficient knowledge of the requirements of the standard. Consequently the companies do not derive full benefits from implementing the system as they are not able to use the process of implementation and

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certification in improving employees motivation. Well motivated staff are able to contribute to the financial bottom-line by reducing wastes in operation thus increasing productivity. The present study therefore attempts to seek an answer to the question; How could managers in organization implementing ISO 9001 maximize their roles so that the framework can deliver the best outcomes?

1.3

Purpose of study

Implementing ISO 9001 successfully requires that managers, who plan, control and direct the system requirements should have a good knowledge of Quality Management Systems and the requirements of the standard so that their responsibilities can be effectively executed at the workplace. To have sufficient knowledge of the ISO 9001 standard requires adequate training while effective implementation in a company requires commitment by top management, shared ownership of the project by employees, as well as continual monitoring and improvement of the system.

The objectives of this study therefore include: 1. Determination of the extent of Quality Management Systems training received by managers in Nigerian organizations implementing ISO 9001

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2. Determination of the impact of training on the commitment of managers to the successful implementation of the certification process 3. Evaluation of the roles of managers in selected Nigerian companies implementing ISO 9001 4. Identification of areas that needs improvement so that companies can take better advantage of the strategic decision to implement ISO 9001

1.4

Research questions

The following research questions were raised:1. In what way can Mangers get useful information concerning best practices in ISO 9001 implementation? 2. What is the main reason why companies implement ISO 9001? 3. Are managers given adequate training on Quality Management System? 4. Have managers job description been effectively developed? 5. Do top managers give adequate commitment to the promotion of quality in the workplace?

1.5

Relevance of study

With the increasing number of Nigerian companies seeking certification of their quality management system to ISO 9001, it is has become more expedient that

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managers understand better the requirements of the standard and the best practices in its implementation.

This study is therefore relevant in the following areas; Identification of areas of weakness in the implementation of ISO 9001 in Nigerian companies Identification of ideas that will promote a better understanding and

implementation of ISO 9001 Generating a basis for further study of issues related to quality management amongst others.

1.6

Scope of study

This study has been limited by time and resources. Consequently the study is limited to (a) the issue of impact of training, (b) level of motivation (c) commitment of top management and (d) communication of quality to employees in three manufacturing firms in Lagos, namely: 1. Swiss Pharmaceuticals Nigeria Limited, Lagos, Dangote Salt Refinery Plc, Ikeja Lagos and Fidson Healthcare Limited Lagos. The first company is already ISO 9001:2000 certified whereas the other two are in various stages of implementation of the standard.

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CHAPTER 2 LITERATURE REVIEW

2.1 What is ISO 9001? ISO 9001 is a quality system standard developed by Technical Committee 176 of the International Standards Organization. The International Standards Organization is based in Geneva Switzerland and consists of about 170 member nations. Nigeria is represented in the organization by the Standards Organization of Nigeria (SON). According to Sprow (1992), it is short for isos, the Greek term for equal, homogenous, or uniform, which is a transformation of the acronym for the International Organization for Standardization.

The makers of the ISO 9000 series of standards intend them to be a high-level set of quality criteria that regardless of the size of the company are worth implementing to some degree or another generically, the standards can be interpreted to fit the particular business. They can be applied both by a company that is a single individual selling consulting services and for a large, multi-

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location, high risk, high profile, organization making product used by multiple organizations and whose production and use is authorized by a high-level executive like a steel making firm. Pasterczyk C. E (2001)

The primary benefit gained from implementing the ISO 9001 Quality Management System, which stands above all the rest, is building a better organization. (Fray, P. 2006)

In fact, ISO 9001 is arguably the most influential standard of its kind in the world. This rapid acceptance of ISO 9001 suggests that many firms find that the standard is well written and worth implementating.

The 1994 versions of the ISO 9000 family were revised by ISOs technical committee TC 176 in the end of year 2000. This new ISO 9001:2000 repositions the 20 elements of the old ISO 9001:1994 into five main chapters. The ISO 9000:2000 family of standards is based on the process approach to management. This approach recognizes that all work is performed to achieve some objective and that the objective is achieved more efficiently when related resources and activities are managed as a process. Hoyle, D, and Thompson, J. (2001)

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The ISO 9001:2000 is based on eight fundamental principles. Hoyle, D, and Thompson, J. (2001), list these principles as customer focus; leadership; involvement of people; process approach; systems approach to management; continual improvement; factual approach to decisionmaking and mutually beneficial supplier relationship.

Adopted by an increasing number of organizations around the world, the ISO 9000 standards have become a growing concern for more and more managers who are often compelled to adopt this system without really knowing its requirements and implications for employees (Olivier Boiral, 1996). Though the effects of this standard on quality management and on performance improvement have been widely debated, there is little knowledge of how the managers and employees who are asked to implement and maintain it perceive the ISO 9000 standards or resist its use.

In implementing ISO 9001, an organization may seek to certify its Quality Management System by seeking a third party certification. This also offers some form of validation and carries a recognized completeness, consistency, and commitment to continuous improvement for the certified business (Wilkins, R. H. 1994). In Nigeria the Standards Organization of Nigeria has so far certified

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146 Nigerian companies. The certification process involves a sequence of processes starting from the performance of a gap analysis, to documenting and improving the system and then performing quality audits to verify the status of the organization with respect to compliance with the requirements of the standard.

2.2

ISO 9001 as a strategic management tool

As a strategic management tool, the implementation of ISO 9001 involves the introduction of institutional change through the introduction of policies and procedures. Onyene Virgy (1999) explains that in formulating policies, enterprises should ensure that specific issues are given fundamental consideration. Thus the formulation of a quality policy in firms implementing ISO 9001 requires a fundamental scanning of the environment and the commitment to actualizing the corporate mission statement.

2.3 An overview of the requirements of the standard The ISO 9001 Quality Management System standard is in its third generation. The requirements are subdivided into 5 parts. Section four deals with the establishment of a documented quality system following a process approach while Section five stipulates requirements for management responsibility.

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Section six defines necessities for resource management; Section 7 aptly states requirements for product realization while Section 8 states requirements for measurement, analysis and improvement.

According to Deming, W. E. in Hoyle, D, (2002): A system must have an aim. A system must create something of value, in other words results. Management of the system requires knowledge of the interrelationships between all the components within the systems and of the people that work in it

Section 4 of ISO 90001 contains the basic requirements for establishing a management system rather than any particular component of the system. Key issues that managers must put in place in an organization include the organizations purposes from which are developed objectives. In planning to meet these objectives the processes are identified and their sequence and interaction determined. Once the relationship is known, the criteria and methods for effective operation and control can be developed and documented. The processes are described in terms that enable their effective communication and a suitable way of doing this would be to compile the process descriptions into a quality manual that not only references the associated procedures and records

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but also shows how the processes interact. Before implementation the processes need to be resourced and the information necessary to operate and control them deployed and brought under document control. Once operational the processes need to be monitored to ensure they are functioning as planned. Measurements are taken to achieve the planned results. The data obtained from monitoring and measurement that is captured on controlled records needs to be analysed and opportunities for continual improvement identified and the agreed actions implemented.

Meeting customers requirements is the ultimate goal of implementing ISO 9001 and Peters, T. (1995) aptly describes the expectation from managers, Attention to quality can become the organizations mindset only if all its managers indeed all of its people- live it

Hoyle, D. (2002), explains that While the implementations of all requirements in ISO 9001 are strictly managements responsibility, those in section 5 of the standard are indeed the responsibility of top management. The first four clauses clearly apply to the strategic planning processes of the organization rather than to specific products.

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An effective approach to this section requires that an organization top management must define clearly its Vision, and then focus on customers for it is the customers that will decide whether or not the organization survives. It also requires the establishment of a Purpose or Mission Statement of the organization. From these Mission come the Policies or Values that will guide the organization in its journey. These policies help frame the objectives, the milestones en route an organizations journey. The policies will not work unless there is Commitment so that everyone pulls in the same direction. Plans have to be made to achieve the objectives and these plans need to identify and lay out the Processes that will be employed to deliver the results- for all work is a process and without work nothing will be achieved. The plans also need to identify and layout the Responsibilities and Authority of those engaged in the endeavour. As a consequence it is essential that effective channels of internal communication be established to ensure that everyone understands what they are required to achieve and how they are performing. Management reviews are performed to determine what action is required to keep the organization on course or whether any change is necessary to the course or the capacity of the organization in order to fulfil its purpose and mission.

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Resource management is a key business process in all organizations. In practice, resource management is a collection of related processes that are often departmentally oriented. Whatever the resource, it firstly has to be planned, then acquired, deployed, maintained and eventually disposed of.

In managing the human factors, the role of the manager in enabling a person to be motivated is that of removing barriers to work motivation. The manager will need to also empower employees to perform specific tasks by delegation and trust to use resources wisely. Consequently, it can be deduced that product quality depends upon maintaining a motivated workforce and that motivation is affected by both human and physical factors that can be identified and managed. Effective management of human resources therefore arises from deploying competent personnel into a work environment in which they are motivated to achieve the organizations goals.

Section 7 of the standard deals with requirements for Product realization and involves the sub-process customer communication so as to ascertain their needs. These customers requirements are invariably reviewed to ensure they are understood and confirm the organizations ability to meet them. It is also required that organizations plan product realization and in so doing use

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preventive action methods to ensure the success of the project and take care of customer property in their possession

The last section of the standard specifies guidelines for measurement, analysis and improvement processes which are vital to the achievement of quality. These measurements have to be done with instruments that are fit for the purpose. With results of valid measurements judgement can be made on the basis of facts. A very significant tool in improvement processes is the use in internal quality audits.

2.4 The roles of managers in implementing strategies in organizations A manager is one with certain fundamental skills and training that would enable him/her to perform a gamut of management functions like planning, organizing, staffing, directing, controlling amongst others. In answering the question, what do managers do one is brought to bear with the fact that the managerial work according to Hersey, P. and Blanchard, K. H. (1992) in Onyene, V. E. (2000) open-ended and that the manager is solely responsible for the success and, or failure of the organization.

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The roles of managers are strongly linked with their status in the organization. Akinola, C. (1999), classifies managers into three types; upper-level (top) managers; middle-level and lower-level (first-line) managers. The top managers are members of the management team and determine the companys objectives, plan and establish policies and procedures, develop organisational structure, coordinate and control the enterprise activities, performance appraisal etc. In this same vein, middle-level managers include departmental heads, branch managers and territorial managers amongst others. They prepare plans and programmes for their department and branches, execute such programmes, supervise and monitor activities in their department, assist top management group, serves as a link between the top management team and the lower management class. First-line managers include supervisors, foremen etc; Their functions include planning work for their sections, maintain records, train and deal with workers under them, helping recruiting amongst others.

The implementation of ISO 9001 by an organization is a strategic decision; hence the key strategists include the board of directors, the chief executive officer, executives (top management) at strategic business units and middlelevel managers who have responsibility for operational matters. According to Togun, A. (2005), these middle-level managers generate information on

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departmental plans; implement decisions taken above, follow policy guidelines and passively receive communication regarding strategic plans. They are basically involved in the implementation of functional strategies.

Edwards, J. and Hodgson, A. (1994) in explaining the vital contributions of managers in implementing a successful quality system quotes Dr. Juran, a quality management guru as having said in London in 1990 that if only 20 per cent of managers are in involved in projects related to the quality system, it indicates an evolutionary rate; whereas 80 per cent or more denotes a revolutionary rate.

However the above factors may be largely influenced by the current level of quality management system existing in the company at the time of implementation. Areas where investments may be made are instrumentation, infrastructure, method development, training, manpower, auditing and the certification process. Okolie, E. E. (2002)

2.6 Key success factors in implementation of ISO 9001 Togun, A, (2005) recommends that the implementation of a quality system should be managed as a major project and that the reasons for implementation

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must be clear, e.g. to satisfy customers. A good plan for arriving at certification is a useful tool in measuring performance and this tactics is affirmed by Naumann, E. and Hoistington, S, (2001) comments, No matter how good a job the team does in determining potential opportunity associated with a change, unless an implementation plan is developed and accepted, the change becomes only an idea or a plan, never a reality.

Training for quality is seen as an important way of ensuring that an organization is successful with its quality system implementation (Edwards, J. and Hodgson, A. 1994). In an organization where there are no formal planning for education and training the quality programme may not be successful. In Section 6.2, the ISO 9001 standards specifies requirement for training or other actions taken to satisfy these needs. For managers to satisfactorily meet this requirement they have to map competencies of employees in performing their job roles and consequently provided training to meet the identified gaps. Hoyle, D. (2001)

Managers must develop leadership skills so that employees can make greater impact in meeting customers needs. Martin William B (1989) thus recommends that managers be good communicators; provide the right reward systems for employees; use power positively; make factual decisions and act as a positive

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force. The role of the manager in enabling a person to be motivated is that of removing barriers to work motivation. Hoyle, D. (2001) lists some f the barriers to include: Fear of failure, of reprisals, of rejection, of losing, of conflict, of humiliation, of exploitation; distrust of management, favouritism, discrimination; work is not challenging or interesting; little

recognition, respect, reward for a job well done; no authority and responsibility

Another salient issue is effective communication, which is buttressed by the views of Machin J. L. J. (1980) with regards to the development of a communication improvement programme that enables managers to work at the improvement of their own communication. This programme enables managers to be able to deal with the complexities of the communication channels in the workplace. Closely related to communication is the need to have a well defined organisational chart. They are useful in defining lines of controls and responsibility which is a useful input in the quality planning process.

For a management system not to become another bureaucratic exercise in futility, Waller, J., Allen, D., and Burns, A. (1993) identifies the change

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mechanisms incorporated in ISO 9001 that must be effectively implemented. These include quality records, audit, corrective actions and management review. These change mechanisms require that managers must be able to consistently review the quality management system, perform scheduled audits using trained auditors and mistake proof processes where non-conformities had been identified.

The audit process is a systematic, independent and documented processes for obtaining audit evidence and evaluating it objectively to determine the extent to which audit criteria are fulfilled. (ISO 9000:2000) It is a key in improving a quality management system, Managers who able to execute effective internal quality audits are playing useful roles in driving quality improvement. In measuring effectiveness, the auditor determines if the system is enabling the organization to achieve its objectives, and the needs and expectations of the stakeholders (OHanlon, T, 2002).

In as much as Nigerian companies have been implementing ISO 9001 for more than a decade relatively little work has been done by researchers within the framework of this present study. It is however evident, that managers are the most important variable in implementing a quality management system as they

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define the processes and procedures needed in actualizing the goal of meeting customers requirements consistently.

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CHAPTER 3 RESEARCH METHODOLOGY AND DESIGN

3.1 Introduction This chapter discusses the procedures and strategies employed by the researcher to carry out the study. It consists of the samples and sampling techniques and method of analysis.

This study has used an evaluation type approach with the objective to ascertain how well managers perform in the measured variables. The sample population consists of companies in Nigeria that are implementing ISO 9001 Quality Management System.

The research variable include knowledge of ISO 9001, participation in ISO 9001 trainings, number of years firm has been implementing ISO 9001, and various criteria expedient in successful implementation of ISO 9001

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3.2 The study sample The study was carried out in two parts: the first being an observation of managers in the organization with emphasis on how they respond to instruction on best practices in implementing change. The second phase involves the administration of a questionnaire to a convenience/accidental sample of managers in three selected companies (Appendix 1). The subjects were chosen based on availability. The sampling was based on readiness to give response within the very short time available to obtain the feedback. In one company though, the number of sample was more than 80% of the total number of managers. Thus mitigating errors usually associated with such sampling tool.

The subjects were made up of male and females and they all fall in to the brackets of managers (first-line to top management) working in organizations implementing ISO 9001.

3.3 Research instrument A questionnaire was used to collect information for the study. The questionnaire was divided into three sections:

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Section A: Personal and Company data- was designed to capture respondents personal data with respect to current job title, years of experience as a manager, number of Quality Management System training attended and the providers of such training. Questions 1-6 of Section were designed to capture direct responses; Questions 7-8 were objective type (multiple choices) test while Question 9 was a Yes or No type.

Section B: General knowledge of ISO 9001- was designed to capture respondents source of inform regarding ISO 9001 and uses a simple short essay to determine respondents understanding the reason why their company top management decided to implement ISO 9001.

In Section C: Evaluation of roles, respondents were asked to evaluate their collective roles as managers in implementing ISO 9001 using a Likert 5-point measurement system. The items in this section seek to evaluate the notion and perception of respondents of the managers in their organization in following areas: 1. Ensuring that the actions necessary to achieve planned results and the continual improvement of the companys processes are implemented 2. Ensuring that documents used in our quality system are controlled

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3. Contributions toward the definition of the quality policy 4. Quality policy communication to employees 5. Top management commitment to the implementation process 6. Line management equal commitment to ISO 9001 implementation 7. Measurement of customer satisfaction in the last one year 8. How the companys internal structure affects the way the quality management system operates 9. Provision of resources needed to implement the Quality Management System 10.Removal of factors that tend to de-motivate staff in the work place 11.How the organization is structured 12. Evaluation of the effectiveness of the actions taken to develop personnel competence 13. Provision of training after a training needs assessment has been done 14. Improvement of product planning process after ISO implementation began 15. Development of competency in the use of statistical techniques in the monitoring, measurement, analysis and improvement of products and processes

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Subjects were required to indicate how their perceived their collective roles as managers implementing ISO 9001. They were to score each criteria using a range of 1-5, were a score of 1 meant that their effectives as being very poor, a Score of 2 as being poor, a score of 3 as being fair and a score of 4 as good while 5 indicated very good. The subjects were expected to respond by selecting alternative responses of their evaluation of managers on a particular item by ticking ( ) in the appropriate columns provide beside the alternative responses.

3.4 Sources of data The data for this work was collected, mainly from questionnaires administered to managers in three manufacturing firms in Lagos. One of the companies has been certified for conformance to ISO 9001 for more than two years and the other two are in various stages of implementation.

3.5 History of companies 3.5.1 Swiss Pharmaceutical Nigeria Limited Swiss Pharmaceutical Nigeria Limited started operations in Nigeria as Roche Nigeria Limited thirty-one years ago. It is one of the leading pharmaceuticals companies in Nigeria with an annual turnover of more than three billion naira. As a result of the diversification of the shares of Roche AG Switzerland in 1999,

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the company changed its name to Swiss Pharma Nigeria limited. Nigerians own less than 40% shares of the company

In January 2003, the company contracted the researcher as consultant for the implementation and certification of its Quality Management System to NIS ISO 9001:2000. By July 2004, the company was awarded the certificate by the Standards Organization of Nigeria (Appendix 2 ). The firm is currently the only Nigerian pharmaceutical company with the NIS ISO 9001:2000 certificate. It employs about three employees and about twenty-five of them are managers.

3.5.2 Dangote Salt Plc Oregun Refinery Dangote Salt Refinery Orgeun, Ikeja, Lagos is one of the two salt refineries owned by the Dangote Group. The company is situated at Oregun Industrial Estate Ikeja Lagos State. It employs about 100 staffs and six are managers. The head office of the Salt Division is based in Apapa Lagos. The refinery based in Apapa is already certified to the NIS ISO 9001:2000 standard.

In February 2006, the researcher was engaged to facilitate the refineries certification of its Quality Management System. As at the time of this study the Plant has completed the pre-assessment audit by Standards Organization of

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Nigeria. It is expected that by the end of December 2006, the Plant will be awarded the certificate of conformance to The NIS ISO 9001:2000 standard.

3.5.3 Fidson Healthcare Limited Lagos Fidson Healthcare limited is a firmly whole owned by a Nigerian entrepreneur. Though it has been in operations for about eleven years, it only began local manufacturing three years ago in an ultra-modern facility in Sango Ota, Ogun State.

The staff strength is about three hundred and these include three executive directors, and about twenty-five managers based in Ota and Ilupeju. The company contracted the researcher in April 2006 to facilitate their implementation of ISO 9001:2000. It is expected that the company will

complete the certification project by March 2007.

3.5 Data collection The researcher, through conscious and concerted efforts, personally distributed the questionnaires by hand to the managers. The responses were obtained as

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soon as there were completed in the researchers presence. Any clarification was provided by the researcher. The researcher has been closely associated with the managers in each of the firms from the inception of ISO 9001 implementation in their companies.

3.6 Validity To ensure the content validity of the instrument, items capable of measuring the different variables were drawn in line with the research questions. The contents of the questionnaires were discussed a sample of the respondents to ascertain relevance and adequacy.

3.7 Methods of data analysis Items on the questionnaire were structured in three different forms. Responses to Questions 4-9 of Section A were analysed qualitatively using simple statistics as pie chart, mean percentages. Also Questions 1 and 2 of Section D was analysed qualitatively using simple statistics as pie chart, mean percentages. Items on Section C were structured on the Likert method of five alternatives, Poor (1), Fair (2), Good (3), Very Good (4) and Excellent (5).

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The respondents were asked to indicate their suitable alternatives from the fivepoint scale. The questions were evaluation-rating type.

The mean rating for each item was analysed as the rating for the managers in that firm for the particular criteria.

The only constraint encountered in data collection was the difficulty in reaching some managers at the time of administering the questionnaire.

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CHAPTER FOUR

ANALYSIS, INTERPRETATION AND DISCUSSION OF FINDINGS

4.0 General This chapter presents the analysis of the data obtained from the questionnaire administered on the respondents. Each questionnaire was randomly numbered since the names of the respondent were not captured. In all 13 subjects are used in the study.

The researcher presents each variable being measured using simple statistics. The samples were obtained from three manufacturing firms in Lagos that are implementing ISO 9001:2000.

The following tables represent the responses to the questionnaire;

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4.1 Measure of dependent variable of managers

Tag No. 1 2 3 4 5 6 7 8 9 10 11 12 13

Company Dangote Swipha Fidson Swipha Swipha Fidson Dangote Fidson Fidson Dangote Fidson Dangote Fidson

Department QA Production HR General Production QA General Operations Finance HR QA Purchasing Q.A

Years Of Management Experience. 2 4 6 2 5 4 10 4 10 5 1 5 6 Average 5

No. Of QMS Trainings Attended 2 3 3 4 1 1 3 1 2 2 4 4 2 Average 3

Management Representative Role Yes No Yes No No No No No No No No No Yes

Table 1: Measure off dependent variable of managers

From the above table, it is evident that the managers represented a wide range of departments in the organizations; four from Quality Assurance (QA) -30.8%, two from Production -15.4%, two from Human Resources-15.4%, two from Operations -15.4%, two from General Management -15.4% and one from Purchasing -7.6%.

The average years of management experience is five years which entails that the subjects are sufficiently experienced to understand and make informed declaration on the status of their Quality Management System.

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The average number of Quality Management System trainings attended was three. However there is no indication that the more experienced managers had actually had more training on ISO 9001. This could be explained by the fact that one may have worked for a longer time as manger in organizations not implementing ISO 9001.

Only two of the thirteen respondents (15%) currently serve as Management Representatives. The ISO 9001 standard requires that the top management must appoint one person who in addition to other roles in the organization must have the responsibility and authority that include 1. Ensuring that processes needed for the quality management system are established, implemented and maintained, 2. Reporting to top management on the performance of the quality management system and any need for improvement 3. Liaising with external parties on matters relating to the quality management system

The ration is however higher than what may exist in the workplace, as the average number of management representative is often one per site. The impact on the study is favourable as they are the more ISO 9001 knowledgeable

42

employees in an organization as the role exposes them to more training and challenges in understanding how their workplace system work.

From the history of the companies in Chapter is be assumed that since Swiss Pharmaceuticals Nigeria Limited (SWIPHA) has about three years experience in ISO 9001 implementation, its managers should have more trainings on ISO 9001 than the other respondents. However the data above does not confirm that. The higher number of training (four) returned by respondents 11 and 12, is due to the fact that they had earlier in organizations implementing ISO 9001 before joining their present companies 4.2 Measure of ISO 9001 training variable

31%

31%

Private Training firms ISO Consultant

38% 1%

Standards Orgaization of Nigeria

Figure 1: Sources of ISO 9001 training attended by managers

43

The various training attended by subjects was provided by private training companies (31%), Standards Organization of Nigeria (31%) and the ISO consultant (38%).

The impact of training on the successful implementation of ISO 9001 is critical. Apart from number of trainings attended, the quality of training provided is also a major critical factor. In this study, it is identified that the ISO consultant was a major provided of training to the organizations. It is important therefore that such consultants must have superior knowledge of the subject matter and adequate experience so as to add value to the implementation project.

4.3 Measure of ISO 9001 information

Source of information Trainings attendance Internet websites Reading books and journals Newspapers and other mass media Interactions with management and colleagues System documentation ISO 9001 Standard -Requirements 7 5 5 3 2 1 1 No of listing Percentage 29.2 20.8 20.8 12.5 8.3 4.2 4.2

Table 2: Sources of ISO 9001 information

44

Though an organization may engage a consultant in its bid to implement ISO 9001, there are yet various sources of useful information on ISO 9001. This information could go a long way in expanding the benefits that a firm could derive from the implementation of the standard.

From Table 2, it is clear that training provides the commonest source of information (29.2%), Internet websites (20.8%), books and journals (20.8%), newspapers (12.5%), interactions with management and colleagues (8.3%), System documentation (4.2%) and the ISO 9001 standard (4.2%).

The role of training is once again highlighted by the trend. The impact of emerging technology especially the Internet is noted. Incidentally, the subjects from the firm with a higher number of years in ISO 9001 implementation were actively engaged in the use of Internet as well as reading of appropriate books and journal in sourcing information on Quality Management System.

Newspapers and other media accounted for 12.5%, which is remarkable especially since the media is primarily dedicated to news and information that may not offer technical advantage. The use of newspapers was more common

45

among managers from those firms at younger stages of ISO 9001 implementation.

Interestedly, only 4.2% of the respondents use the standard as a source of information on the requirements of ISO 9001. The inference is that many managers may not have a global picture of the standards requirement and consequently may not be totally committed as there as dedicated to those processes they own.

4.4 Reasons for implementing ISO 9001

Reasons for implementing ISO 9001 No of listing Marketing purposes-to enhance sales/ improve customers perception Improve Productivity Standardization of processes and procedures 6 5 2 13 46.2 38.5 15.3 100.0 Percentage

Table 3: Respondents understanding of the reasons companies implement ISO 9001

The main reason companies implement a Quality Management System as ISO 9001 is to ensure that every time a process is performed the same information, methods, skills and controls are used and applied in a consistent manner. This normally will deliver products and services that meet customers requirement.
46

Every other derivable from implementation of ISO 9001 must be seen to emanate from having systems that deliver the right products and services.

From Table 3, a large number (46.2%) of the subjects said companies implement ISO 9001:2000 for marketing related purposes increasing sales and customers appeal. While making good products and services will ultimately increase sale it is important to note that the emphasis is on the system that delivers the product. From practice, the researcher has experience situation where firms paying consultant fess to facilitate their ISO certification process are unable to provide basic resources that will facilitate product delivery. Only 15% of the respondents have a clear understanding of the reason companies implement ISO 9001.

4.5 Evaluation of managers role in companies implementing ISO 9001

The managers rating of how well certain criteria are implemented is used as a basis of evaluating their roles on a Likert-5 points scale. The perceptions of the 13 subjects are as shown below:

47

S/N
1.

Particulars

1 How well we have ensured that the actions necessary to 0

achieve planned results and the continual improvement of the companys processes are implemented

2 0

3 0

4 6

5 7

AV. 5

2. 3.

How well we have ensured that documents used in our 0 quality system are controlled How well we have contributed towards the definition of 0 the quality policy How well our quality policy has been communicated to 0 employees How well our top management is committed to the 0 implementation process How well the management team show equal commitment 0 to ISO 9001 implementation How well we have been involved in performing customer satisfaction survey in the last one year

0 0 0 0 0 0 0 0 0 0 0 0 0 0

0 0 0 0 0 3 1 0 2 3 2 3 3 3

5 5 8 8 8 9 11 11 7 10 11 10 9 7

8 8 5 5 5 1 1 2 4 0 0 0 1 2

5 5 4 4 4 4 4 4 4 4 4 4 4 4

4.

5.

6.

7.

8.

How well our internal structure has affected the way we 0 run our quality management system

9.

How well we provided resources needed to implement the 0 Quality Management System 10. How well we have removed all factors that tend to de- 0 motivate staff in the work place 11. How well we have defined our organizational structure 0 12. How well we provide trainings after a training needs 0 assessment has been done 13. How well training received impacted on your ability to 0 meet customers requirements 14. How well we have improved our product planning 0 process since we began ISO implementation 15. How well we have developed competency in the use of 0 statistical techniques in the monitoring, measurement, analysis and improvement of products and processes

Table 4: Managers evaluation of performance on certain criteria

48

From Table 4, it is evident implementing ISO 9001 helps an organization to set up the actions necessary to achieve planned results and the continual improvement of the companys processes which are critical to meeting customers requirement.

The managers are also effective communicating the quality policy and other quality programmes. Essentially, they were involved in establishing the quality policies.

Areas of weakness were not easily discerned because of the statistics used. The researcher has not compared the differences in scores because of the duration of ISO 9001 implementation. It would also be interesting to compare scores of managers in these criteria against those who are working in organizations not implementing ISO 9001.

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CHAPTER FIVE SUMMARY, CONCLUSIONS AND RECOMMENDATIONS

5.1 Summary From the findings of this study it can be appreciated that companies that implement ISO 9001 are able to improve their processes by defining a quality policy and getting it communicated to employees. As part of the implementation process companies engage consultants and these professionals are major providers of Quality Management System training in addition to facilitating the development of documents amongst others.

Training was found to help in developing competencies to run processes and procedures that deliver customers needs, but incidentally, the number of trainings attended was not a function of how long an employee had been a manager. In such instances employees who had worked in other firms. Implementing ISO 9001 had attended more IS0 9001 training than more experienced managers in the companies under study.

50

Apart from training, Internet search and the reading of books and journals provides the highest means of obtaining information on Quality Management System implementation. Unfortunately, only a few managers actually bother to read the contents of the ISO 9001 standard itself.

From this work, it is also revealed that managers do not have a unified opinion of the reason why companies implement ISO 9001. The benefits derivable from enhanced perception at the marketplace seem to be widely accepted as reasons for implementing ISO 9001.

In rating the manager roles collectively, areas of strength include setting up the system and communicating policies to employees. Areas of weakness include not been able to sufficiently remove factors that de-motivates employees and low level in the use of statistical techniques.

In all, Nigerian managers are on track in their roles in implementing ISO 9001 but could further maximise the benefits their companies get by increasing their working knowledge of the standard and striving to obtain total ownership of the system by the management team and employees alike. It is also necessary that

51

managers learn to use statistical tools in improving their process and products quality.

5.2 Implications for further research The researcher believes that this study has some tremendous implications. These include the following:

Firstly, it sets a basis for interest for other researchers to work on how quality management systems work in Nigeria. A particular research thought could be the Nigeria factor in the certification process. It also provides an opportunity to research on how top management commitment to ISO 9001 approaches as many companies line in for certification.

Secondly, it provides opportunity curriculum planners in tertiary institutions to develop new professional courses in Quality Management Systems as operates in many developed nations.

5.3 Conclusions The data collected, collated, and analysed and interpreted shows that implementing ISO 9001 is a good strategic decision, but it should be taken for

52

what it is creating a system that delivers products and services that meet customers needs.

Managers in Nigerian companies must enhance their knowledge of the concept and principles involved in Quality Management System. This could be done by reading appropriate textbooks and journals as well as taken advantage of the opportunities from the Internet. The right training should be developed and administered to all managers.

5.4 Recommendation The researcher makes the following recommendation based on thhe outcome of this work and experience gained in the filed helping organization develop ISO 9001: 1. Managers should seek further training and education on Quality Management 2. Top management of Nigeria companies should begin to see the real reason for ISO 9001 implementation and thus provide the required resources to develop the their quality management system 3. Managers should remove all factors that de-motivates employees so that their systems could work better

53

4. Educational institutions should develop new courses in Quality Management System to help develop local manpower necessary for national development 5.5 Suggestion for further research This work has been based on three firms in Nigeria, with about 146 companies already certified the opportunities for further research is evident in the following areas: 1. Measurement of contribution derived from certification of companies 2. Evaluation of the role of consultants in the implementation process 3. The extent of developing systems that are ready for additional intervention e.g., introduction off Total Quality Management, Six-sigma and Excellence Models (Malcolm Baldbrige Quality Awards, Deming Prize etc.)

54

REFERENCES AND LINKS

Akinola, C. (1999): Office Administration for Managers and Secretaries Lagos Vision-Plus Ventures ISO 9000: Outside the Iron Cage in www.daesgisq,com

Boiral, O (1996):

Dale, B & Bunny, H. (1999) Total Quality Management Blueprints, Oxford, Blackwell Publishers Limited Edwards, J. & Hodgson, A. (1994) Amersham International Plc: Stimulating participation in quality improvement in Teare, R., Atkinson, C. & Westwood, C. (Ed) Achieving Quality PerformanceLessons from British Industry, Cassel, London p19 Fray, P (2006): Benefits of ISO 9001 www.iqc.bz/html

Hoyle, D, & Thompson, J. (2001) Converting a Quality Management System using the Process Approach United Kingdom, Transition Support Limited Hoyle, D. (2001): ISO 9000 Quality Systems Handbook London, Butterworth-Heinemann The Expectations Approach- Improving managerial communication and performance London, McGraw-Hill Book Company (U K) Limited Managing Quality Customer Service London, Kogan Page Ltd.;

Machin J. L. J.(1980):

Martin, W. B. (1989):

Naumann, E. & Hoistington, S, (2001): Customer Centered Six Sigma Linking Customers, Process Improvement, and Financial Results, Wiscosin, American Society for Quality Press OHanlon, T, (2002): Quality Audits for ISO 9001:2000: Making compliance value-added Wisconsin, Quality Press, Upgrading Your Quality System to ISO 9000 Standards- A practical Approach Ibadan, Spectrum Books Limited

Okolie, E. E. (2002):

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Onwuka W. E. (2006):

Implementing ISO 9001:2000 An unpublished training document Dynamics of Institutional Management Towards Strategic Administrative Competence Lagos; Sam Orient Publishers A Graded Approach to ISO 9000 Implementation for Records Managers in www..sandia.gov/html

Onyene, V. E. (2000):

Pasterczyk, C. E (1999):

Peters, T. (1995):

In search of Excellence, New York, Harper Collins

Simmons, B. L. &White, M. A. (1999): The Relationship between ISO 9000 and Business Performance: Does Registration Really Matter? Journal of Managerial Issues, Vol. 11, 1999 Sprow; E. (1992): Insights into ISO 9000 Manufacturing Engineering, p 73, September 1992.

Standards Organisation of Nigeria. SON Import/Export Inspection Guidelines, Lagos

Togun, A. (2005):

Business Policy for Graduates and Professionals, An instruction manual for LAUTECH MBA programme, Ogbomoso

Waller, J., Allen, D., & Burns, A. (1993) The Quality Management Manual- How to write and develop a successful manual for Quality Management System, London, Kogan Page Limited Wilkins, R. H. (1994): The Quality Empowered Business: Creating a circle-4 Quality System for Success, New Jersey, Prentice Hall, Inc.

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APPENDIX 1: QUESTIONNAIRE FOR MANAGERS DEPARTMENT OF MANAGEMENT SCIENCES FACULTY OF ENGINEERING TECHNOLOGY LADOKE AKINTOLA UNIVERSITY OF SCIENCE AND TECHNOLOGY OGBOMOSHO, NIGERIA Dear Respondent, This questionnaire is designed to support the evaluation of the roles of managers in the implementation of ISO 9001 in selected Nigerian companies. You are not expected to write your name on the questionnaire, your response will be kept in absolute confidence. SECTION A Personal and Company data Pleases complete this information as precise as possible 1. Company 2. Department 3. Current job title: 4. How many years have you been in management position: 5. For how long have your company been implementing ISO 9001 6. Have you attended a training programme on Quality Management Systems 7. If yes. who provided the training a) Private training firm, b). ISO consultant c). Standards Organization of Nigeria d). In-house facilitator 8. How many times have you attended a training related to Quality Management Systems? a). once b). twice c). thrice d). four or more 9. Do you perform the role of a Management representative? Yes or No

SECTION B: General knowledge of ISO 9001 a. In what ways do you get information concerning ISO 9001

b. What is the main reason why companies implement ISO 9001

57

SECTION C Evaluation of roles In this section, evaluate the roles of managers (collectively) in your company towards your companys implementation of ISO 9001. Note that a score of 1 means that you perceive their roles as being very poor, a Score of 2 as being poor, a score of 3 as being fair and a score of 4 as good while 5 indicates very good. S/N
1.

Particulars
How well we have ensured that the actions necessary to achieve planned results and the continual improvement of the companys processes are implemented How well we have ensured that documents used in our quality system are controlled How well we have contributed towards the definition of the quality policy How well our quality policy has been communicated to employees How well our top management is committed to the implementation process How well the management team show equal commitment to ISO 9001 implementation How well we have been involved in performing customer satisfaction survey in the last one year How well our internal structure has affected the way we run our quality management system

2. 3.

4.

5.

6.

7.

8.

9.

How well we provided resources needed to implement the Quality Management System 10. How well we have removed all factors that tend to demotivate staff in the work place 11. How well we have defined our organizational structure 12. How well we provide trainings after a training needs assessment has been done 13. How well training received impacted on your ability to meet customers requirements 14. How well we have improved our product planning process since we began ISO implementation 15. How well we have developed competency in the use of statistical techniques in the monitoring, measurement, analysis and improvement of products and processes

58

59