Supply Chain Quality in Nigeria Oil and Gas Industry

Running head: RESEARCH PROPOSAL
Business Research Method Research Proposal
Name of the Student:
Name of the University:
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1RESEARCH PROPOSAL
Abstract
Nigeria is the largest oil and gas producer in the African continent. Since 1956, after oil was
discovered by Shell in Nigeria, the industry has grown rapidly and has become the most
important sector in the Nigerian economy and contributes in its growth. Supply chain
management and total quality management are very important concepts in this industry as that
influences the business performances. The purpose of this research proposal is to evaluate the
impact of TQM in enhancing the quality and performance of the SCM in the Nigerian oil and gas
industry. Extensive research has been done on the available literatures to gain an understanding
on the topic. The researcher has proposed to use mixed methodology of study for data collection
and analysis. Both the primary and secondary data will be collected and will be analysed using
quantitative and qualitative methods.

2RESEARCH PROPOSAL
SUPPLY CHAIN QUALITY IN NIGERIA OIL AND GAS INDUSTRY-With emphasis on
how TQM (TOTAL QUALITY MANAGEMENT) CAN BE USED TO MEASURE AND
IMPROVE QUALITY ACROSS SUPPLY CHAIN
Chapter 1: Introduction
1.1 Introduction
Many studies have been conducted to highlight different aspects the supply chain
management and quality in the context of oil and gas industry in various parts of the world. For
example, Chima & Hills (2007) addressed the supply chain management issues in the oil and gas
industry and it has been found that as the global oil and gas industry is dependent on a global
supply chain consisting of international transportation, inventory control, handling of materials,
exports and imports and information technology, it is highly important to control the quality and
network of the supply chain. Regarding the Nigerian oil and gas industry, there are quite a few
research works that addressed various aspects of this industry. The oil industry of Nigeria earns
around 95% of the total foreign exchange earnings (Ngex.com, 2019). It is one of the largest oil
and gas producing countries in the African continent. Similarly, Total Quality Management
(TQM) is a recent trend that is being used by the organizations to improve their quality of every
type of organizational activities, functionalities and departments. This research study aims to
explore the impact of supply chain quality in the Nigerian oil and gas industry with a special
emphasis on the implementation of TQM for improving the performance of the company. It is
assumed that this paper would make significant contribution in the field of academics and also in
the operational area of oil and gas industry of Nigeria in regards to the implementation of TQM

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to improve the supply chain activities and quality. This chapter will commence with the research
aim, objectives, and questions, background of the study and research rationale.
1.2 Background of the study
Nigeria is the biggest oil and gas producer in the African continent and a member of the
OPEC since 1971 (Ajugwo, 2013). The oil and gas industry is a major contribution in the
economic growth of Nigeria. As per the data by International Energy Agency, in 2011, around
33% of the crude exports of Nigeria were sent to the USA, which made Nigeria the fourth largest
oil supplier to the USA (Government Publications Office, 2016). There are many oil and gas
companies in the country that are engaged in natural resources exploration and production.
Supply Chain Management (SCM) is an integral part of the oil and gas companies. In many oil
and gas companies, currently the management is opting for automotive SCM, which is time and
cost effective. As highlighted by Chima & Hills (2007), supply chain link is established in all the
chain activities, that is, exploration, production, refining, marketing and supply to the consumers.
These activities involve various types of different functions and actions and using supply chain
management the companies can weigh the benefits and costs along the chain and take according
actions to maximize their profitability.
Christopher (2016) stated that improvement in the supply chain activities needs a
continuous assessment of the decisions and actions and implementation of required changes,
configuration and/or coordination approach to improve the performance of the total supply chain.
It is applicable in the oil and gas industry also. Total Quality Management (TQM) is a process
that consists of the actions that provide a supportive and encouraging environment that assist in
improving the quality and skills of the employees as well as for the entire operations of the
companies (Ross, 2017). However, it is to be noted that whether the TQM improves the

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efficiency of the supply chain management in the oil and gas companies in Nigeria. This research
study will be undertaken to explore this area of impact of TQM on the quality and cost
effectiveness of SCM in the Nigerian oil and gas industry.
1.3 Research aim and objectives
The aim of the research study is to evaluate the effectiveness of TQM in improving the
performance and quality of supply chain management in the oil and gas industry of Nigeria.
The research objectives are:
 To explore the scope of supply chain management in the oil and gas industry of Nigeria
 To evaluate the effectiveness of TQM in improving the supply chain quality in the oil and
gas industry of Nigeria
 To provide recommendations to the Nigerian oil and gas industry for effective
implementation of the TQM in supply chain management.
1.4 Research questions
1) What are the factors that improve the efficiency of supply chain quality in the oil and gas
industry?
2) How does TQM contribute in improving the supply chain quality in the oil and gas
industry of Nigeria?
3) How the business performance of the oil and gas industry of Nigeria can be improved by
applying TQM in the supply chain management?
1.5 Significance of the research
This research study is significant for both the academic and management perspective.
The findings of the study will contribute further information regarding the impact of TQM on

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measuring the effectiveness of the supply chain and also improving the quality of supply chain I
the oil and gas industry. There are many factors that influence the quality of the SCM in the oil
and gas industry, and with this study, the contribution of the TQM will be evaluated. At the same
time, this study will be beneficial for the oil and gas industry as the management of the
companies can take decisions accordingly by integrating the TQM to enhance the quality of the
SCM in the business operations to increase their profitability. This study aims to help the oil and
gas industry of Nigeria to evaluate the appropriateness of TQM in enhancing the effectiveness of
the supply chain to improve their performance.