Quality management and customer value: a case of Nyeri and Nanyuki water and sewerage companies in Kenya

Abstract

Adoption of Total Quality Management principles are very essential in enhancing profitability, growth and driving customer satisfaction at either firm or institutional level. Creation of customer value in service delivery is very dependent on adoption of total quality management principles. This research proposal examined the extent to which total quality management principles have been adopted at Nyeri and Nanyuki Water and Sewerage Companies. Additionally, it assessed the relationship between quality management principles of top leadership and team commitment, continuous improvement and customer focus and customer value operationalized through service reliability, quality of services and level of satisfaction. The research had a total sample size of sixty consumers with thirty consumers being interviewed at each company. Research data was further collected through, self-administered questionnaires with 9 top managers of the two companies and in-depth discussions with selected managers. The research determined that the two companies have different levels of appreciation of total quality management principles with Nyeri Water having a strong inclination and understanding of the concept. Additionally, adoption of total quality management principles was more evident in Nyeri than in Nanyuki water. The principle of continuous improvement was noted to be weak in both companies. However, from observation, the adoption of continuous improvement was highly evident. The research found that there is a significant relationship between quality management and customer value. The study also establishes that the two companies are faced with challenges such as financial limitations, supply constraints and heterogeneous natures of customers that hinder effective delivery of total quality management. In conclusion, the study recommends the incorporation of total quality management in management training at the water companies, the development of guidelines for adoption of total quality management by the Water Services Regulatory Board(WASREB) and county and national water departments support of the water companies in the ISO certification process