The use of TQM to measure and improve Supply Chain Management quality in the Nigeria Oil and Gas Sector

Running head: SUPPLY CHAIN
Supply Chain
Name of the student
Name of the university
Author note

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Abstract
This study examined the role of total quality management in measuring and improving the
supply chain practices. The Nigerian oil and gas industry have been chosen as the case study
for evaluation. In international markets, only quality is not enough; supplying products at
appropriate cost, time and place is critical to developing sustainable competitive advantage.
The objectives, research questions and hypothesis has been developed effectively in the
research. The literature review had critically analysed past literature to understand the
importance of supply chain management and total quality management in oil and natural gas
industry. The research methods, frameworks and tools had been developed based on the goals
of the research. The data had been collected from 100 employees and 12 managers working
in NNPC and SPDC. The research used a mixed method analysis to find out that there is
significant positive relationship between total quality management and supply chain
management. The qualitative analysis of the data also showed that elements of quality
management are essential for developing effective supply chain.

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Table of Contents
CHAPTER 1: INTRODUCTION..............................................................................................4
1.1 Introduction......................................................................................................................4
1.2 Background and need for this research............................................................................4
1.3 Objectives of the research................................................................................................5
1.4 The importance of the research........................................................................................6
1.5 Research Questions..........................................................................................................6
1.6 Contribution of the study.................................................................................................6
1.7 Research Methodology.....................................................................................................6
1.8 Dissertation structure.......................................................................................................7
Chapter 2: Literature review......................................................................................................9
2.1 Introduction......................................................................................................................9
2.2 total quality management.................................................................................................9
2.2.1 Critical success factors and Total Quality Management.............................................11
2.3 Supply chain management.............................................................................................11
2.4 impact of total quality management on supply chain management...............................13
2.5 conceptual framework....................................................................................................14
2.6 literature gap...................................................................................................................15
2.7 Summary........................................................................................................................15
Chapter 3: Research methodology...........................................................................................31
3.1 introduction....................................................................................................................31
3.2 Research Philosophy......................................................................................................31
3.3 Research Approach........................................................................................................31
3.4 Research Design.............................................................................................................32
3.5 Data Collection and Analysis.........................................................................................32
3.6 Sampling techniques......................................................................................................33
3.7 Reliability and Validity..................................................................................................33

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3.8 Ethical consideration......................................................................................................33
Chapter 4: Findings and Analysis............................................................................................34
4.1 Introduction....................................................................................................................34
4.2 Quantitative Analysis.....................................................................................................34
4.2.1 Reliability And Validity..............................................................................................34
4.2.2 Frequency Tables........................................................................................................36
4.2.3 Correlation Matrix.......................................................................................................49
4.2.4 Regression Analysis....................................................................................................50
4.3 Qualitative Analysis.......................................................................................................52
4.3.1 Data.............................................................................................................................52
4.3.2 Analysis.......................................................................................................................60
Chapter 5: Conclusion..............................................................................................................61
5.1 Conclusion......................................................................................................................61
5.2 Recommendation............................................................................................................62
References................................................................................................................................63
Appendices...............................................................................................................................67
Appendix 1...........................................................................................................................67

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Topic: The use of TQM (Total Quality Management) to measure and improve Supply Chain
Management (SCM) quality in the Nigeria Oil and Gas Sector
CHAPTER 1: INTRODUCTION
1.1 INTRODUCTION
This study has aimed to examine the role of total quality management in measuring
and improving the supply chain practices. The Nigerian oil and gas industry have been
chosen as the case study for evaluation. In international markets, only quality is not enough;
supplying products at appropriate cost, time and place is critical to developing sustainable
competitive advantage. The organizations are competing through their effective supply chain
management to increase their competitive advantage. The leading companies in the market
have been using effective supply chain management and total quality management to
strengthen the performance of their organizations. Companies face tremendous challenges in
implementing supply chain management and total quality management simultaneously as it
increases the scope of operations and requires additional resources in order to address both
internal and external business functions.
1.2 BACKGROUND AND NEED FOR THIS RESEARCH
The companies in the oil and gas industry have been facing challenges in developing
effective supply chain management practices due to the complexity in the three stages of oil
production, extractions, transportation and refining. The oil and gas companies have been
under the scrutiny for being the primary industries to contribute to the pollution in the
surrounding environment and causing harm to the society at large (Psomas & Jaca, 2016).
Moreover, there have several accidents in upstream, downstream and midstream activities in
various oil and gas companies which has had hazardous effect on the society and
environment as a whole. Niger Delta can be considered the most crucial region for the
production of oil in Nigeria and at the same time, it can be considered as one of the most
polluted regions all over the world. A report made by UNDP suggested that the number of
oil spills from 1976 to 2001 is 6817 which accounted for the loss of more than three million
oil barrels. The shocking fact was that the 70% of the spill was not recovered (Amnesty.org.
2019). The report also stated that 69% of the spills occurred offshore, 6% on land and
remaining on swamps.
The analysis of the incidents shows that 50% of these spills were result of tanker and
pipeline accidents and out of the remaining 50%, oil production operation, sabotage and non-

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functional production equipment are the major reasons for oil spills (Amnesty.org. 2019).
Global organizations like Shell and Eni had been operating in this region where they claim
that the majority of the oil spill is result from vandalism and theft but there are no credible
sources to support their claim (Amnesty.org. 2019). These activities have heavily affected the
surrounding environment and it would take up couple of decades to clean up the mess created
due to these various activities.
In respect to supply chain and total quality management, Nigerian oil and gas industry
suffers from the rise in oil prices in the global market as they lack the capability of producing
their domestic consumer and have to import fuel products resulting in more expenditure than
income. There are four major refineries in Nigeria, the Kaduna Refinery, Petrochemical
Company limited and two in Port Harcourt (Udo, 2019). However, none of these refineries
have been able to reach 50% of their capacity in the year of 2017 (Udo, 2019). The refineries
in Nigeria have suffered from the lack of adequate maintenance for decades and this has
resulted in gross poor performance. NNPC have been trying to address this issue by seeking
financial advice in order to rehabilitate the plant so that they can atleast reach 90% of their
full capacities by the end of 2019 (Udo, 2019). However, it is unlikely and almost impossible
achieve this feat within such short time frame. Some experts suggested that revamping and
refurbishing of the refineries would almost a decade. This shows that the supply chain
management and total quality management is highly critical for the companies in Nigeria to
not only develop sustainable practices but improving the efficiency and quality of services.
1.3 OBJECTIVES OF THE RESEARCH
The objective of the current research are as follows:
 To examine the impact of total quality management on improving the supply chain
practices in Nigerian Oil and gas Industry
 To evaluate the different aspect of total quality management in oil and gas industry
 To recommend suitable strategies to improve the supply chain management quality in
Nigerian Oil and gas industry
This objectives in the research has been dealt with individually where different methods
have been used to achieve each of the objective in the research. In order to evaluate the
impact of total quality management practices on improving the supply chain practices, it has
to be evaluated at all levels, upstream, downstream and midstream. However, evaluating the
impact at all levels broaden the scope of the research and it is difficult to cover everything

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within the specified time. The research focuses on Shell which focus on extraction and
transportation of oil. On the contrary, NNPC has been chosen as it consists of the four major
refineries that have not even managed to reach half of their efficiency. In case of the second
objective, the different elements discussed in the literature review has been evaluated by
conducting interviews with experts and managers of both the companies. The
recommendation have also been provided based on the interviews conducted and the
elements identified having significant impact on supply chain management.
1.4 THE IMPORTANCE OF THE RESEARCH
This research is highly significant for the oil and gas companies in Nigeria as it aims
to increase the awareness of the management if different organization by providing them with
valuable insights of implementing total quality management and improve supply chain
quality. This research has also aimed to highlight suitable sustainable measures for reducing
oil spills and improve the operational efficiencies of the refineries.
1.5 RESEARCH QUESTIONS
How does total quality management can be used to improve the supply chain management
quality in Nigerian Oil and gas industry?
What factors improve the efficiency of supply chain quality in the oil and gas industry?
1.6 CONTRIBUTION OF THE STUDY
The study has aimed to develop a paper that address both the aspects of supply chain
management and total quality management which is a gap from the majority of the researches
conducted in the past. Moreover, the few researches that have addresses supply chain quality
management and total quality management has measured the impact of supply chain
management on total quality management. This study has taken a different perspective
whether total quality management has been used to understand its impact of supply chain
quality management.
1.7 RESEARCH METHODOLOGY
This research has used a mixed method research design to conduct both qualitative
and quantitative data analysis. In this research, survey and interview questionnaire has been
used as research instruments to collect data and analyse it. The questionnaires have been
developed based on the models and theories discussed in the literature review section. The
research has taken the pragmatism as the view for addressing the research questions by using
different approaches. Deductive and inductive approach both has been used to assist in testing

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hypothesis and developing generalisations from qualitative questions. The research has taken
100 employees and 12 managers as the sample size for the quantitative and qualitative
analysis respectively. These employees and managers have been chosen from NNPC
(Nigerian National Petroleum Corporation) and SPDC (Shell Petroleum Development
Company of Nigeria Limited) so that importance of total quality management at all levels can
be accessed.
1.8 DISSERTATION STRUCTURE
The dissertation is divided into five chapters, Introduction, Literature review, research
methodology, findings and analysis and conclusion. The first chapter has provided a brief
outline of the overall research. The introduction chapter has provided a brief introduction on
total quality management and supply chain quality management. The research problem has
been identified and the objectives have been developed based on it. The research question
and hypothesis has been formulated and the overall research has been performed based on it.
The next chapter of the dissertation is the literature review which evaluated past
literature total quality management and supply chain quality management. This chapter has
conducted a critical analysis on the arguments and opinions provided by past authors. The
research has also conducted an empirical analysis to understand the results obtained in
different operating circumstances using different research methods and instruments.
The third chapter of the dissertation is the research methodology which has developed
research methods, instruments and frameworks based on the research questions. The research
methodology has stated the systematic process of collecting data and analysing in a distinct
so that future researches can use it to obtain similar results. This chapter has assisted in
developing the reliability and validity components of the research.
The next chapter is the data analysis and findings section which has evaluated the data
collected based on the suggested methods in the chapter three. The findings have been linked
to the literature review to provide valid discussion on the research topic.
The final chapter of the dissertation is the conclusion and recommendation chapter
which has linked the objectives to the findings based on the critical literature review. This
chapter has provided suitable recommendations based on the findings. The research limitation
and future scope has also been defined. It also provides a self-reflection on the knowledge
gained and challenges while conducting the research. These five chapters have been
instrumental in highlight the main issue faced by the oil and gas companies in Nigeria and