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Competitiveness in the global market is becoming fierce. The importance of total quality management is
growing to increase customers’ satisfaction and as a result to win the market in the long term. However,
developing economies like Ethiopia is challenged in their quality of products and services. Based on
the Ethiopian Quality Award (EQA) self-assessment model and the 2009 award participants, quality
management practice in Ethiopian manufacturing and service industries is studied. The result justifies
that quality will be the future challenges of competitiveness. The root causes of the quality problem are
investigated and revealed in the study to give directions for the policy makers, the industries and
researchers.
INTRODUCTION
Ethiopia has registered development in the past five Tessema, 2008; Dagne, 2009; Yitagesu, 2009; Amanuale,
years. According to government’s reports two digit rates 2009; Asrat, 2011; Negalign, 2011; Wondifraw, 2010) and
of economic development have been achieved. Develop- public service (Mihret, 2008; Freselam, 2010; Rahil, 2009;
ment, progresses, changes and mainly the efforts are Birhan, 2009; Haftom, 2010). These researches studied
clearly seen. However, relative to where the country is so far are either at organizational or sector level. More-
going to reside, its achievements are far behind. Many over, most of the research was conducted on the
researches have been done to identify and explore the consecutive results and effects of quality related
means towards fast and sustainable development. Now, problems. So far there is no effort to investigate the
it is understandable by most of the stakeholders that causes of poor quality product/services.
quality related problems are the stumbling block for the As a response to this problem, at national level, the
majority of the industries. Furthermore, quality related Government of Ethiopia has considered quality as a
problems were apparent in all the sectors. There were development infrastructure since 1940s when agricultural
many research conducted to alleviate the problems. products export market began to expand. Efforts made to
Some of these are on: healthcare (Ermiyas, 2009; Shewit, disseminate quality in the country can be classified into
2009; Marta, 2010), education (Jelalo, 2009; Birhane, five periods. Pre-Ethiopian Standard Institute, Ethiopian
2010), construction industry (Samson, 2008; Wondifraw, Standards Institute, Ethiopian Authority for Standardi-
2009; Alemnew, 2010), manufacturing industry (Haben, zation, Quality and Standards Authority of Ethiopia
2008; Netsanet, 2008; Mesafint, 2008; Birhan, 2008; (QSAE) and post-QSAE. Moreover, international
Authors agree that this article remain permanently open access under the terms of the Creative Commons
Attribution License 4.0 International License
690 Afr. J. Bus. Manage.
The Australian Quality Award The European Quality Award The Malcolm Baldrige National Quality Award The Ethiopian Quality Award (EQA)
Leadership 17% Leadership 10% Leadership 9% Leadership 15%
Information and analysis 13% People management 9% Information and analysis 8%
Policy and Planning 8% Policy and strategy 8% Strategic quality planning 6% Policy and strategy 8%
People 20% Resources 9% Human resources development 15% Resource management 12%
Quality of process, products and service 22% Processes 14% Management of process quality 14% Processes 15%
Customer focus 20% People satisfaction 9% Quality and operational results 18% Customer focus 25%
Customer satisfaction 20% Customer focus and satisfaction 30%
Impact on the society 6% Impact on society 10%
Business results 15% Business performance 15%
partners such as United Nations Industrial Deve- described to verify the accuracy of the data and at as an input (EQA, 2009).
lopment Organization (UNIDO), engineering the same time, the reliability of the research Since all quality award models are derived from
capacity building program (ecbp) and the Japan outcomes. the tenets of quality management, they look alike.
International Cooperation Agency (JICA) played A quality award is designed to support in the However, they have some differences in their
measureable roles. Despite the efforts made, the development of organizational excellence and to focus area and weight of criteria. Table 1 com-
deployment of the quality concept in practice is recognize organizations for their achievements in pares criteria weight of main quality awards.
questionable. quality and performance. It is also amid at raising Customer focus and policy and strategy have
This research aims at diagnosing quality mana- awareness about the importance of quality and been given the highest and the lowest weight in all
gement practice in Ethiopia in general to identify performance excellence as a global competitive the awards respectively. Very recent researches
the root causes of quality problems in Ethiopia. edge. Recognizing the need for implementation are focused on: Effective implementation of
The outcome will also benefit the government to and integration of quality concepts in the quality in organizations (Yasin et al., 2011;
device a policy and/or a program for further operations of Ethiopian manufacturing and service Srivastav, 2011), the importance of quality con-
improvement of quality in the country’s product/ industries, the Addis Ababa University (AAU) and cepts (Parast et al, 2011), uses and applications
service. Walta Information Center (WIC) had initiated the of quality tools and techniques (Parajapati, 2011;
EQA in 2007. Ghosh and Roy, 2011) etc. Root cause analysis
Then after, EQA has developed a self-assess- has not got attention in the quality improvement
Research approach ment manual which is carefully designed to effort at national level.
accommodate total quality management tenets. The EQA model’s main criteria used to evaluate
The authors of this paper were leader and mem- The manual is also in parallel with major quality industries were leadership, policy and strategy,
ber of the Ethiopian Quality Award (EQA) tech- awards such as: Deming Prize (1951) in Japan resources management, process management,
nical team which prepared the self-assessment and the Malcolm Baldrige National Quality Award customer satisfaction, business performance and
manual, evaluated the participants’ document and (1987) in USA. The European Foundation for impact on the society (Figure 1). Under these
proposed award winners to the jury. In due Quality Management (EFQM) (1988), the Austra- seven criteria, there are 28 sub-criteria, 65 sub-
course, the data for this research was acquired. lian Quality Award (1993) and developing coun- sub criteria and 361 questions. Overall weight of
Background to the EQA and its manual, tries models are also reviewed. Furthermore, ISO EQA is 1000 points which is divide into Leader-
evaluation process and evaluators are briefly 9000:2000 Quality Management System is used ship—150 points, policy and strategy—80 points
Beshah and Kitaw 691
Customer focus
Policy and
Strategy
Leadership
Processes
Business
Performance
Resources
management Impact on
society
Enablers/Drivers Results
resources management—120 points, process manage- This study is undertaken by taking the first EQA
ment—150 points, business performance—150 points, participants.
customer focus—250 points and impact on society—
100points. Furthermore, sub-criteria weights are shown in
Table 2. The weight of sub-sub-criteria and questions’ Data and its analysis
scoring system is well-defined and the examiners will
conduct a consensus process to agree on a percentage In the first Ethiopian Quality Award program, which was conducted
in 2009, there were 43 participants. According to Ethiopian Quality
band within which scores will be given in each category in Award classification of industries, 18 were from manufacturing and
the application. process industry category, 20 from service for profit-making
The evaluation process of the EQA starts from appli- category, three from construction industry category, and two from
cation and ends in award winners’ selection. It has eight service (not-for-profit) category. Participants’ specific industrial
stages. These are: (1) application, (2) self-assessment, classification is shown in Table 3.
The organizations’ data were fed into the SPSS soft-ware for
(3) submission of self-assessment report, (4) indepen- analyses. Preliminary analysis indicated that Code-SMG-036 and
dent and subsequent consensus review by the technical Code SMG-037 are outliers because they did not properly follow
committee, (5) Short-listing, (6) second registration, (7) the self-assessment manual in accordance with the instruction.
site visit review, (8) recommendation by technical Thus, the two organi-zations coded SMG-036 and SMG-037were
committee (9) recommendation by judges’, and (10) EQA excluded from further analysis.
board approve. Similarly, Code SMG-013 was rejected from further analysis, as it
was a new organization whose perfor-mance results being of a
Since the self-assessment manual is filled by a team short term nature would be difficult to judge. In addition, the self-
which includes top management of the organizations, the assessment report was not supported by evidence as it is proved in
data are reliable. Even if there are unreliable data, they the site visit.
were verified in the site-visit stage of the evaluation Hence, three organizations were rejected and 40 orga-nizations
process. were used for statistical analyses. According to the EQA model the
The technical team is organized from different depart- analyses were conducted at overall result, criteria and sub-criteria
level. In all the cases, after actual data analyses, transformed data
ments of Addis Ababa University. Every organization is analyses followed. Furthermore, quality management practices in
first evaluated individually and there was a consensus the manufacturing industries and service industries will be
review to avoid any bias in evaluation, making the data separately analyzed to reveal their unique characteristics.
reliable for analysis.
Therefore, since the EQA manual is carefully designed
to accommodate different type of industries and it is a RESULT AND DISCUSSION
way to diagnoses total quality of an organization, it is
possible to conclude that EQA model represent all Overall result level
concepts of quality management. It can also review
quality management performances of any organization. Using SPSS software, EQA self-assessment overall
692 Afr. J. Bus. Manage.
results were analyzed based on the actual quantitative the service industries show positive skewness. But, since
value and then the transformed qualitative grades. the service sector mean is lower than that of the manu-
The minimum and maximum results were 322 and 882, facturing industries it does not reflect good quality
respectively. The range is very high, which explains un- management practices in the service sector (Table 4).
certainty in the industries’ quality practice. Again, the EQA quantitative values were changed into qualitative
mean is 642. Based on 1000 points, it explains the grades. The evaluation scale was divided into six
performance is about 65% regarding quality. Both the categories: Above 90 — excellent; 83—89.9 — very
skewness and kurtosis are negative which also indicates good; 75—82.9 — above average; 60—74.9 — average;
weak quality management practices. 50—59.9 — below average, and below 49.9 — is
The range and mean of manufacturing industry are better considered as poor. For the purpose of analysis, these
than service industries that show relative stability of the qualitative values are again changed into quantitative
former sector in its practice. On the contrary, the values. Excellent is labeled as — 1; very good as— 2;
manufacturing industries have negative skewness and above average — 3; average — 4; below average — 5
Beshah and Kitaw 693
are analyzed and the descriptive statistics is shown in independently and resources management, processes
Table 6. management and customers’ satisfaction of the manu-
The ranges of all criteria results are very high, which facturing and service industries are significantly different.
shows uncertainties of quality management practices. By implication, the other four criteria showed similar
The mean of all criteria is less than 70% of their weight. mean.
Business performance and impact on the society are the Since criteria of EQA have been weighted differently, it
least in their mean. Similar to the overall performance of is difficult to compare their results. In order to conduct
the EQA, all the criteria are also negatively skewed. What comparative analysis, all the criteria’s results are
is unique in the analysis is that, policy and strategy is the transformed into the same scale to ensure normalization.
highest in its negative skweness, which depicts the EQA total weight is 1000 marks. When it is divided by
problem of policy and strategy. seven criteria each criterion will have about 143 marks.
The ranges of manufacturing industries are smaller All results are transformed into this scale and statistical
than those of the service industries in all the criteria. analysis has been conducted. Business performance and
Similarly, the standard deviations of the manufacturing impact on society becomes the category with the least
industry are lesser than those of the service industry in all mean. In addition, process management’s mean is also
criteria except on impact of the society which is among the least in the service industry particularly. The
approximately equal. mean in manufacturing industry is better than that in the
The mean of the manufacturing industry is greater than service industry (Figure 3).
that of the service industry in all the criteria. This shows The analysis in all the criteria shows the performance of
relative stability and awareness of quality management in Ethiopian industries is low, and more so is that of the
the manufacturing industry. service industries performance is below average in all the
Similar to the overall result, all criteria in the manu- criteria. Furthermore, policy and strategy is the least
facturing industry as well as in the service industries have visible in the practiced criteria. This indicates that policy
negative skeweness. But resources management, and strategy is the most problematic area among all the
customer satisfaction and business performance from criteria. The EQA manual gives light weight for policy and
manufacturing industry and policy and strategy from strategy. According to Deming, consistency of purpose in
service industries are significantly skewed. policy and strategy is the first principle where quality
The analysis clearly indicates that all the industries starts and it is there where Ethiopian industries are found
have poor performances in all EQA criteria. Similarly, to lacking.
the overall result, manufacturing industry has a relatively
higher performance in all quality criteria
In the overall variance analysis above manufacturing Sub-criteria level
industry’s mean is significantly different from that of the
service industry. Similarly, every criterion is analyzed The overall result shows poor practices of quality
Beshah and Kitaw 695
management in Ethiopian industries. In addition, with all the criteria. At the sub-criteria level the In fact, almost all the sub-criteria are negatively
in the criteria analysis, the problem is associated root causes for the problem are clearly identified. skewed which practically shows weak quality
696 Afr. J. Bus. Manage.
management practices in Ethiopian industries. However, maximum information out of the actual data, all the sub-
the most critical problems for both the manufacturing and criteria have to be changed into one scale. That means
service industries are discriminated as follows and similar weight is given for all the sub-criteria and all the
summarized in a fish-bone diagram at the end. scores of the organization is transformed into one scale
Under leadership, there are seven sub-criteria. Among as has been attempted above at the criteria level
these development and deployment of policies and analyses.
strategies, and customer relationship management are Comparative analyses are conducted by skewness,
exceptionally skewed negatively (Table 7). mean and standard deviations of the sub-criteria. Those
Under policy and strategy, there are three sub-criteria. sub-criteria that have higher skewness and lesser mean
All of them are significantly skewed negatively. However, with minimum standard deviation are listed out and cross
the weakness of the manufacturing industry and the checked from the above results. In this way, the root
service industry are a little bit different. Manufacturing cause of quality problems in the Ethiopian industries is
industries have relevant policy and procedures there identified and represented by a fish-bone diagram (Figure
problems are lack of sound and focused strategy, and 4).
deployment of policy and strategy. While the service
industries are devoid of relevant policy and procedures.
Under such circumstances in the case of the service Conclusion
industries, it is impossible to deal with sound and focused
strategy and deployment of policy and strategies. Through analyses of the EQA self-assessment report
Under resources management, there are five sub- evaluation, generally, quality management practices in
criteria. Targeted human resources management and Ethiopia was found to be low in all the tenets including
efficient facilities management are significantly negatively leadership, policy and strategy, resources management,
skewed. Facilities management is not as such a problem process management, customer satisfaction, business
in the service industry as it is in the manufacturing performance and impact on society. Among these
industry. factors, policy and strategy is the most critical problem
Under process management, there are five sub-criteria. area despite the least weight given by the EQA.
Optimized product/service process is the only criterion Comparatively, the service industries quality management
that is common problem of both manufacturing and practice is weaker than that of the manufacturing
service industries. However, it is more serious in the industries as measured by all the quality parameters.
manufacturing industry than in the service industry. Therefore, the quality promoters, particularly the govern-
Processes planning and control and integrated business ment should give special attention to the service
processes are also negatively skewed sub-criteria in both industries quality. However, both manufacturing and
the manufacturing and service industries. Synergic service industries should be supported to laydown their
supporting processes are a problem related to the day-to-day activity on a long term strategy and also to
manufacturing industry. improve the root causes for the poor quality management
Under customer satisfaction criteria there are four sub- practice.
criteria. The first two sub-criteria, namely, exceeding It is necessary to propose intervention points for the
internal customers' and meeting internal customers' satis- consideration of the industries. There are a number of
faction are significantly negatively skewed in all industries. literatures that advise about the means and mechanism
In the manufacturing industry, however, the skewness is for improvement. Often the literatures lack clarity and
more amplified. In the service industry meeting internal consistency on the measures to be implemented at the
customers’ satisfaction is the most skewed sub-criteria. shop floor level. Sometimes, the literature mixes-up the
Under Business performance, there are three sub- cause and effect, thereby making it difficult to decide on
criteria. Degree of financial performance is negatively the measures to be implemented. For example, in all
skewed in both the manufacturing and service industry. quality awards including that of EQA both the causes and
Under impact on society, there are two sub-criteria, the effects of quality improvement efforts are evaluated.
namely, significant socio-economic impact and enhanced But, when an organization needs to improve its
environmental impact. They are both negatively skewed performance, the starting point of the analysis and
in manufacturing and service industries. In the service intervention should be only on the side of the causes. In
industry in particular socio-economic impact is highly the EQA manual, the causes are leadership, policy and
skewed. strategy, resources management and processes mana-
As explained previously, every criterion, sub-criterion gement. Leadership is intertwined with all the other
and question has its own weight in the Ethiopian Quality causes and hence it is difficult to consider it indepen-
Award evaluation process. So far, actual data with dently. Therefore, the research proposes to consider
different weights have been used for analysis but without policy and strategy, resources management and
equal weights it is difficult to carry out comparative processes management within the industries.
analyses. In order to avoid this problem and extract As a whole future research should be conducted in the
Beshah and Kitaw 697
field of quality management in Ethiopia to increase markets. Specifically, research endeavors should administration. Identification and the knowledge of
effectiveness and efficiency of the industries and concentrate on quality improvement in the service customers’ expectation are the starting points for
make them more competitive in international industries and in the sector of public embarking upon quality improvements.
698 Afr. J. Bus. Manage.
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