Influence of Quality Costs on Performance of the National Cereals and Produce Board in Kapenguria, West Pokot County Kenya

Abstract

patrick simiyu cheben A project regardless of its size or magnitude must be completed under three constraints of cost, time and scope. The fourth constraint is usually quality which has become increasingly important as a result of globalization and the rise in business operating costs as well as competition at the global level. Quality comes at a price and project organization should embrace and recognize these costs and how they influence project performance. Cost of quality is simply the costs of conformance and the costs of nonconformance. The American Society for Quality identified four classes of costs of quality as Appraisal costs, Prevention costs, internal failure costs and external failure costs. Although most organizations have embraced the total quality management, very few have embraced the cost of quality concept which influences their performance largely. This study was aimed at investigating the influence of costs of quality on performance of state corporations a case of the National cereals and Produce Board. The study was guided by four objectives: To establish the extent to which internal failure costs influences performance of the NCPB, to assess the extent to which external failure costs influences performance of the NCPB, To determine the extent to which prevention costs influences performance of NCPB and to establish the extent to which appraisal costs influences performance of the NCPB in Kapenguria West Pokot county. Descriptive research design was used and before the actual study, a pilot study was conducted to ascertain content validity and the reliability of the questionnaires was tested through the split half technique. Data was collected from 225 sampled farmers out of 517 registered farmers. The questionnaire return rate was 77% and both descriptive and inferential analysis were used in analyzing data. From the study findings It was established that all the four costs of quality influences performance of the NCPB and failure to maintain quality of products was as a result of failing to implement the cost of quality approach. While the study findings indicated that Prevention costs had a higher influence with unstandardized coefficient of 13.0208, it was observed that NCPB was not paying attention to prevention costs activities due to logistical challenges. In this regard, the researcher recommends that NCPB should invest more in prevention costs activities for a favorable influence to be achieved.