Abstract:
The purpose of this study was to investigate the influence of using Hard TQM methods on
organizational performance in order to minimize cigarette reject rates and increase material
consumption yields in the Case of National Tobacco Enterprise (Eth.) S.C. Several technological
and operational issues influence production performance in the company's manufacturing process,
diminishing machine efficiency and increasing cigarette rejection amounts.This cigarette waste rate
covers the price of low-quality cigarettes as well as the costs of producing defective cigarettes. In
the case of the company, the cost of poor quality in the cigarette production process comprises
rework, repair, internal scrap, re-testing, failure analysis efforts, raw material rejection, and inprocess rejection. The case company must now save money and resources to compete in global
marketplaces against other JTI enterprises. Waste elimination during the production of cigarettes is
crucial for the corporation wanting to save costs and use resources more efficiently.
Hard TQM practice is responsible for recording processes, tasks, and procedures to satisfy quality
goals and enforce regulations as one of the elements of contemporary production systems and one
component of a quality management System (QMS). Theses Hard TQM techniques and processes
in the manufacturing process are critical tool for improving product quality, reducing waste,
shortening production times, and lowering overall costs. Variation reduction helps to maintain
operations steady and accurate while also minimizing the cost of poor quality by reducing the
number of defective products produced in the instance of the company's cigarette production
process. Continuous Improvement Statistical Process Control tools, Process Management tools,
Quality control tools and procedures, and Product design tools are utilized as fundamental
performance improvement tools in the manufacturing process. Throughout the course of this thesis,
To evaluate the impact of Hard TQM on the National Tobacco Enterprise (Eth.) S.C., an explanatory
research design and a mixed technique were used. Secondary data include financial statements and
performance reports, whereas primary data are questionnaires and interviews. These data were
gathered from case company managers, division leaders, experts, and employees. Purposive
sampling was employed to pick interviewers and questionnaire responders. The acquired data were
analyzed using descriptive and inferential statistics, as well as significance testing and Structural
Equation Modeling. IBM SPSS version 26 and IBM AMOS 24 software were used. The findings
revealed that using Hard quality management system tools and procedures had a good influence on
the company's performance by lowering cigarette rejection rates, boosting machine OEE, and
increasing NTM consumption yield.
Key Words: Quality Management system (QMS), Hard TQM practice, Cigarette Reject rate, NTM
yield, Organization