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Name
UKWUEGBU, ANTHONY CHIJIOKE
080203107
TOPIC
THE IMPACT OF QUALITY
MANAGEMENT, ON THE PROFITABILITY
OF THE NIGERIAN ROAD TRANSPORT
INDUSTRY (A CASE STUDY OF DANFO
BUSES).
SUPERVISOR:
DR E. O. OYATOYE.
THE IMPACT OF QUALITY MANAGEMENT ON THE
PROFITABILITY OF THE NIGERIAN ROAD
TRANSPORT INDUSTRY.
(A CASE STUDY OF DANFO BUSES).
A FINAL YEAR PROJECT REPORT SUBMITTED TO THE
DEPARTMENT OF BUSINESS ADMINISTRATION,
FACULTY OF BUSINESS ADMINISTRATION,
UNIVERSITY OF LAGOS, NIGERIA.
IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE
AWARD OF THE DEGREE OF BACHELOR OF SCIENCE (HONS) IN
BUSINESS ADMINISTRATION.
BY
UKWUEGBU, ANTHONY CHIJIOKE
080203107
OCTOBER, 2012
CERTIFICATION
This is to certify that the contents of this project are commensurate with and representative of the
work done by UKWUEGBU, ANTHONY CHIJIOKE during the course of his final year project
under my supervision.
…………………….. …………………..
Supervisor Date
DR. E. O. OYATOYE
……………………… …………………..
Head of Department Date
DR. O. KUYE
DEDICATION
To Almighty God, the Author and Finisher of my fate.
ACKNOWLEDGMENT
My heart-felt gratitude goes to YOU for picking up this report. I hope you find it useful in your quest
to transform our society.
ABSTRACT
The main focus of this project is to reveal the impact of quality management on the profitability of
the Nigerian mass transport industry.
In order to achieve the aim of this study; attributed quality management factors like maintenance,
accessibility, availability, safety, customer satisfaction and price were investigated. To this end, the
Lagos Danfo drivers were chosen as the body of study. For a purposeful study to be conducted, some
relevant books and research by many authors were reviewed. Research questions were formulated to
avoid any form of deviation from the main purpose of the topic. The use of questionnaires was
employed to gather the information needed from the respondents. This information was then
analysed using Spearman’s correlation to determine the type of association between the hypotheses.
The study revealed that the application of quality management to the Nigerian mass transport
industry would indefinitely boost their profitability.
TABLE OF CONTENTS
1. Introduction ......................................................................................................................................10
1.0 Background to the study ........................................................................................................10
1.0.1 Origin of Mass Transport in Lagos state ....................................................................11
1.1 Statement of the problem ......................................................................................................12
1.2 Objective of the study ............................................................................................................13
1.3 Relevant research questions .................................................................................................14
1.4 Statement of hypothesis ........................................................................................................14
1.5 Significance of the study .........................................................................................................15
1.6 Scope of the study ..................................................................................................................16
1.7 Limitations of the study ..........................................................................................................16
1.8 Definition of terms ..................................................................................................................17
2. Literature Review ............................................................................................................................18
2.0 Introduction ............................................................................................................................18
2.1 Historical background of the Lagos Danfo service .................................................................19
2.2 Impact of Quality Management ............................................................................................20
2.2.1 Quality Management and Organization of the Transport industry..........................23
2.2.2 Quality Management and Training of personnel ......................................................24
2.2.3 Quality Management and Procurement and Financing ............................................25
2.2.4 Quality Management and Unions..............................................................................26
2.2.5 Quality Management and Maintenance....................................................................26
2.2.6 Quality Management and Customer Satisfaction .....................................................27
2.3 Quality framework for mass transport ..................................................................................28
2.3.1 Availability .................................................................................................................30
2.3.2 Accessibility.................................................................................................................30
2.3.3 Affordability................................................................................................................31
2.3.4 Information.................................................................................................................31
2.3.5 Time.............................................................................................................................32
2.3.6 Customer care.............................................................................................................32
2.3.7 Comfort .......................................................................................................................33
2.3.8 Security .......................................................................................................................33
2.3.9 Environment ...............................................................................................................34
2.4 Profits ......................................................................................................................................34
2.5 Summary .................................................................................................................................36
3. Theoretical Framework and Research Methodology ..............................................................37
3.1 Theoretical framework ...........................................................................................................37
3.2 Research design strategy ........................................................................................................39
3.3 Sources of data ........................................................................................................................39
3.3.1 Primary data ...............................................................................................................40
3.3.2 Secondary data ...........................................................................................................41
3.4 Research instruments .............................................................................................................41
3.5 Research population ..............................................................................................................42
3.5.1 Determination of sample size ....................................................................................42
3.6 Restatement of research questions ......................................................................................43
3.6.1 Restatement of hypothesis ........................................................................................43
3.7 Conduction of the field work ..................................................................................................44
3.5 Limitation of methodology ....................................................................................................44
4. Data Presentation and Analysis ....................................................................................................46
4.0 Introduction ...........................................................................................................................46
4.1 Presentation of Data ...............................................................................................................46
4.1.1 Response rate by location..........................................................................................46
4.1.2 Response rate by Age category..................................................................................47
4.1.3 Response rate by Sex of Respondent.........................................................................47
4.1.4 Years of experience ....................................................................................................48
4.1.5 Highest educational qualification attained ...............................................................48
4.1.6 Do you own a Danfo ...................................................................................................49
4.1.7 Source of Financing ....................................................................................................50
4.1.8 How many days of the week do you work ................................................................50
4.1.9 How long do you work every day...............................................................................51
4.1.11 What is your busiest time of the day ........................................................................52
4.1.12 What do passengers usually demand for...................................................................53
4.1.13 Do you have a specific conductor ..............................................................................53
4.1.14 How long have you been with this conductor...........................................................54
4.1.15 How much fuel do you buy everyday ........................................................................55
4.1.16 How much do you make every day after expenses...................................................55
4.1.17 Would you accept a loan to expand your danfo business ........................................56
4.1.18 How often do you do maintenance ...........................................................................57
4.1.19 On average how much do you spend on the maintenance of the bus.....................57
4.1.20 Which union do you belong to...................................................................................58
4.1.21 Who gives you the most worry ..................................................................................59
4.1.22 How often have you been harassed by the Police/Lastma/VIO...............................59
4.1.23 How much do you have to pay to the police to let you go .......................................60
4.1.24 How much do you have to pay to Lastma/VIO to let you go....................................61
4.2 Test for Hypothesis .................................................................................................................62
5. Summary Conclusion and Recommendation ............................................................................64
5.0 Summary of Findings .............................................................................................................64
5.0.1 Operational Problems.................................................................................................64
5.0.2 Fragmentation of the industry...................................................................................64
5.0.3 Literacy Level ..............................................................................................................64
5.0.4 Union Activities...........................................................................................................64
5.0.5 Activities of Police/Lastma/VIO .................................................................................64
5.1 Conclusion ..............................................................................................................................65
5.2 Recommendations .................................................................................................................65
6. Appendix ............................................................................................................................................67
6.1 Questionnaire Form ...............................................................................................................67
6.1.1 Part A: Bio-Data ..........................................................................................................67
6.1.2 Part B: Work specific...................................................................................................68
6.1.3 Part C: Industry specific..............................................................................................69
6.1.4 Part D: Person specific................................................................................................71
7. References ..........................................................................................................................................72
CHAPTER ONE
INTRODUCTION
1.0 Background to the study
Of all the modes of transportation in Nigeria, road transportation handles the largest volume
of traffic in terms of users, weight and distance covered. Despite the importance of this, very
little research has been done on the impact of quality management in the road transport
industry. Presently in Lagos state, there is no effective organised mass transportation business
as it is in other developed cities like Hong Kong, London and New York to cater for the
transportation needs of the state. The management of this industry has been left at the hands
of the uneducated and the industry’s ownership structure is too fragmented. Various unions,
Nigerian Union of Road Transport Workers (NURTW), Nigerian Association of Road
Transport Owners (NARTO), and Road Transport Employers Association of Nigeria
(RTEAN) have sprang up to arrest these decay, but they too are plagued by the same evils –
low level of education, low quality management and political infighting. The government has
set up numerous regulatory agencies – Federal Road Safety Corps (FRSC), Lagos State
Transport Management Authority (LASTMA) and Kick Against Indiscipline (KAI) – but
these agencies stifle the industry’s profitability as they seek to generate revenue for the
government.
According to Rose (2005), Quality Management aims to ensure that an organization or
product is consistent. According to Peter and Waterman (1982), quality management focuses
on service quality and the means to achieve it. The objective of quality management is to
deliver consistent customer satisfaction by allocating resources in an effective and efficient
manner in order to realise optimal profit. Quality management has its root in Japan in the
1950s, when with the help of Shewhart, Deming and Juran, amongst others the Japanese
government sought to increase the demand for its good by creating superior and consistent
quality products.
There are three (3) basic management styles in the Lagos mass transport industry – The
‘Individual Ownership structure’ were a danfo driver owns and operate his own bus; The
‘Quasi-corporate structure’ were an Individual owns a fleet of about four (4) buses, sub-
leases them to different drivers who pay him a daily rent but the driver takes care of fuelling
but not the maintenance of the vehicle; and The ‘Corporate structure’ were a company owns,
maintains and operates its own buses while the bus drivers are just staffs of the transport
company. The Individual Ownership style is predominant in Lagos resulting in a haphazard,
un-patterned and non-effective mass transport industry.
In business, profit can be considered to be the difference between the revenue and the costs of
bringing to market whatever it is that is accounted as an enterprise. In this context,
profitability is the difference between the revenue and the cost incurred in delivering the
transport service. Profitability is a very elusive term to define. The transporters could measure
it in terms of Gross profit, Net profit, Return on Assets, Return on Investments, Market share
increases, revenue increase, and more. This research focuses on how quality management can
help mass transport operators maximise profit, i.e., operate at the point where the difference
between the total revenue and total cost is at its greatest (Lipsey, 1975).
1.0.1 Origin of Mass Transport in Lagos state
The history of publicly owned mass transport service within the Lagos Metropolitan Area has
been a very chequered one. With the take-over of the former Zarpas Bus Service by the
Lagos State Transport Corporation (LSTC) in the 1970s, total annual passengers carried by
the Corporation fluctuated from 90 million in 1978 to 53 million in 1983, 76 million in 1989
and less than 60 million in 1992 (The Guardian, 1994). Consequent upon the riots following
on the initiation of the structural adjustment programme in 1989, the Federal Government
introduced the Mass Transit Scheme. Under the scheme, buses were distributed to states,
including Lagos, to assist in both intra-urban and interstate transportation. The Lagos State
Government itself in 1991 bought some 90 buses and leased these to private operators to help
ease the acute transportation problem. Other bus operations were sponsored by local
governments within the metropolitan areas but the capacity they provided hardly equalled
more than half of that provided by the LSTC. However, given the general inefficiency and
corruption with which the LSTC operated, resulting in frequent breakdown of its buses, the
Corporation was dissolved in 1993 and its staff laid off. Molues and danfos which are
privately owned mass transit buses won the battle to transport Lagosians en-masse.
1.1 Statement of the problem
First, the operational problem will be considered – the danfo drivers’ fragmented
management pattern were different individual drivers own, operate and maintain their own
buses. Instead of one were a company owns a fleet of buses, maintains it, while the drivers
are just staffs of the company. Thus, the present informal and fragmented management style
doesn’t allow them to enjoy economies of scale.
Secondly, most of the danfo drivers are illiterates barely finishing primary schools. Though
they might be smart at collecting their transport fares, their literacy level hinders effective
level of communication with their customers. Because of this, they hardly deliver qualitative
services. Another consequence of their low literacy level is the overheads they carry. The
Danfo drivers engage in unproductive activities like drinking, sleeping around, and partying.
All these unnecessary overheads reduce their profitability.
Another problem that they face is that of Agbero’s (touts) who collect tolls from the danfo’s
at strategic locations. Collecting these tolls hampers the speedy movement of theses buses
and drivers who protest payment have one or two parts of their danfo’s forcefully removed.
The danfo driver thus incurs an unnecessary and greater cost to replace the damaged part.
Not having a standard price per journey like the BRT system causes too much delay as
passengers would have to constantly keep haggling over transport fares every time he or she
boards a danfo. This haggling leads to time wastage and high customer dissatisfaction.
Finally, the general problem of bad roads, non-availability of spare parts, government
regulation and so on would be given little attention in this research. Even though their effects
are wide spread, the danfo driver has very little control over them and their effect on the
danfo drivers’ short term profitability is very limited.
1.2 Objective of the study
The primary purpose of this study is to examine the impact of quality management on the
profitability of the Nigerian road transport industry. This will help to create a formal study in
the chosen area thereby improving the quality of service rendered by road transporters. The
objectives of the study are therefore itemised as:
1) Develop a management model that will be useful, understandable and applicable by
the danfo drivers.
2) Measure the profitability level of each individual danfo.
3) Properly motivate drivers and conductors to deliver superior services to customers
(passengers).
4) Harmonize Union and regulatory agencies activities to work optimally so that
profitability is increased.
5) Improve customer satisfaction through superior service delivery.
1.3 Relevant research questions
This project would take both a participatory and questionnaire approach. Participatory in the
sense that for one (1) month I will have to immerse myself with the danfo drivers – their ways
of life, typical business day, their unions and its activities in order to give this project depth,
content and relevance to their various needs. The relevant research questions would include:
 How is the present profitability level of each individual danfo measured?
 How can the driver and conductors be motivated to deliver superior services to their
passengers (customers)?
 How can Unions and other regulatory agencies be harmonised for optimal
performance and for increased profitability of the danfo drivers?
 How can customer satisfaction be improved and superior services delivered?
1.4 Statement of hypothesis
The following hypothesis will be raised in an effort to develop the finding about the variables
that relates.
: There is no correlation between how regular maintenance is done on the vehicle and the
profit of the drivers.
There is correlation between how regular maintenance is done on the vehicle and the
profit of the drivers.
HB0: There is no correlation between the amount spent on maintenance and the profit of the
drivers.
HB1: There is correlation between the amount spent on maintenance and the profit of the
drivers.
1.5 Significance of the study
This study is relevant because it seeks to provide quality management strategy guidelines and
implementation procedures that would lead to the attainment of optimal profitability within
the danfo industry.
This study would also serve as a verifiable source of information for High Net-worth
Investors (HNIs), business organisations and the government on how they can profitably
channel their investments into the mass transportation industry.
Finally, the major beneficiary of an efficient and effective transport system is the economy.
The economy benefits in the form of increased access to opportunities for achievement,
employment, goods and services; reduced cost of doing business; economic expansion;
efficient allocation of scarce resources; higher profitability; increased service delivery and
many more. The economy is just a broader term for the Customers (users of the transport
services), producers (providers of the transport services) and the ever present Government
(regulators of the services).
1.6 Scope of the study
The scope of this study is within Nigerian and Lagos state in particular as a case study,
though references would be made to other parts of the world. My research is purely based on
the Lagos danfo drivers in Ikorodu, Ikeja, Yaba, Oshodi and Obalende. My aim is to verify
the impact of quality management on their profitability and how we can maximise this.
To gather a qualitative sample, I intend having from my respondents at least 5 officials from
FRSC, 5 officials from LASTMA, 5 officials from LAMATA, 5 officials of The Nigerian
Police Force, 10 danfo drivers, 10 conductors and 50 danfo passengers from each of the
major transportation hubs of Ikeja, Ikorodu, Obalende, Oshodi and Yaba. This will generate a
total respondent size of 450. With this diverse range of respondents, this research would serve
its purpose of determining the quality management approach that will increase danfo driver’s
profitability.
1.7 Limitations of the study
Much as I would want this project to be hitch free, various problems are expected to rear their
heads. First would be limited finances which are expected to constrain my visitation and
participation in this research, but with the limited finances, I will conduct and in-depth
research that would more than suffice.
Time could be another limitation. I intend overcoming this by doing a large part of this
project during the first semester break and sacrificing some of my ‘friend time’. Another
limitation expected would be the ridicule provided by friends and family. The self-belief that
nothing good comes easy would keep my spirit strong.
The fact that the industry is heavily fragmented would make my research clumsy and
difficult. I intend interviewing a fair and qualitative sample of the major players in this
industry from the drivers, conductors, regulators and passengers. I also intend immersing
myself in their activities for at least a month.
Finally, the low literacy level of my respondents and their attendant fears could limit my
research. This I intend overcoming by learning their predominant Yoruba language and
communicating with them in Pidgin English.
1.8 Definition of terms
Agbero’s: Any member of either of NURTW, RTEAN or NARTO that doesn’t own or
operate a danfo but instead stays at either the motor parks or bus-stops to collect tolls from
the danfo drivers.
BRT: Bus Rapid Transit. A transport option, which relies on the use of dedicated
‘interference’ free segregated lanes to guarantee fast and reliable bus travel.
Conductor: One who assist the danfo drivers in operating their danfo’s by calling passengers
to enter into the danfo, collecting passenger transport fares, brings to the drivers notice
whenever a passenger has reached his/her destination, pays any tolls or charges incurred by
the danfo and performs other activities for the smooth running of the danfo.
Danfo: A shared mini-bus transport service with a capacity of fourteen (14) passengers that
commutes passengers across the Lagos metropolis.
Danfo drivers: Anyone who drives a danfo across the Lagos metropolis.
FRSC: Federal Road Safety Corps. A federal government transport regulator mandated to
ensure that safety on the road is strictly adhered to and to address any safety concern.
LAMATA: Lagos Metropolitan Area Transport Agency. The Lagos state government owned
transport operator providing shared passenger transport services through BRT, and the
proposed light rail project.
LASTMA: Lagos State Transport Management Authority. A Lagos state government
transport regulator mandated to ensure that safety on the road is strictly adhered to and to
address any safety concern.
Molues: An older version of the shared bus services popular in Lagos in the 80’s with a
capacity of 48 sitting and 50 standing passengers.
NARTO: National Association of Road Transport Owners. An association for the owners of
commercial transport owners.
NURTW: Nigerian Union of Road Transport Workers. The largest umbrella body for owners
of danfo, danfo drivers and conductors in Nigeria that aims to solve issues affecting the
industry.
Passengers: Customers and users of the shared bus transport services.
Quality management: An efficient model of operating the danfos with the customer as the
focus point in order to optimise safety, comfort and profit.
RTEAN: Road Transport Employers Association of Nigeria. An association for owners and
employers of danfos.
VIO: Vehicle Inspection Office. An organ of the Lagos state government that regulates the
activities of public transport in Lagos.
CHAPTER TWO
LITERATURE REVIEW
2.0 Introduction
This chapter will outline past studies related to the topic. The researcher will be able to
highlight the impact of quality management on the profitability of the Nigerian mass road
transport industry. Also, the empirical literature and theoretical framework will be defined to
suit the purpose of the research work.
2.1 Historical background of the Lagos Danfo service.
The history of publicly owned mass transport service within the Lagos Metropolitan Area has
been a very chequered one. With the take-over of the former Zarpas Bus Service by the
Lagos State Transport Corporation (LSTC) in the 1970s, total annual passengers carried by
the Corporation fluctuated from 90 million in 1978 to 53 million in 1983, 76 million in 1989
and less than 60 million in 1992 (Oni, Okanlawon and Asenime, 2006). Consequent upon the
riots following the initiation of the Structural Adjustment Programme in 1989, the Federal
Government introduced the Mass Transit Scheme. Under the scheme, buses were distributed
to states, including Lagos, to assist in both intra-urban and interstate transportation. The
Lagos State Government itself in 1991 bought some 90 buses and leased these to private
operators to help ease the acute transportation problem. Other bus operations were sponsored
by local governments within the metropolitan areas but the capacity they provided hardly
equalled more than half of that provided by the LSTC. However, given the general
inefficiency and corruption with which the LSTC operated, resulting in frequent breakdown
of its buses, the Corporation was dissolved in 1993 and its staff laid off. Molues and danfos
which are privately owned mass transit buses won the battle to transport Lagosians en-masse.
While it is true that transport management has been a sadly neglected subject in the past, the
matter has now taken a turn in the eyes of the Lagos state government. The government has
realised that in order to achieve its megacity status, it must have a qualitatively managed
transport system. Lately, it has introduced the BRT service, Mega-city Ferry service, Cab
service and the proposed Light rail service to the commercial transport industry to increase
the transportation options available to Lagosians.
2.2 Impact of Quality Management
The concern for quality has a long and rich history, extending back to artisans and craftsmen,
when master tradesmen inspected the work of apprentices to ensure quality craftsmanship.
The introduction of mass production at the beginning of the 20th century was the dawn of a
new age. The high numbers of poorly made and non-interchangeable parts, breakdowns, and
loss of sales because of unreliable products forced companies to make improvements.
Initially, quality management was a manufacturing concept intended to ship non-defective
products. It was the viewpoint of G.S. Radford that inspectors should examine, weigh, and
measure each item prior to its leaving the factory. Inspection, measurement, and statistical
analysis were the early foundations of quality control. Mistakes were not necessarily
prevented, but they were not shipped. Inspection became an industrial safety net.
Quality management advanced, largely, through the writings and teachings of so-called
Quality Pioneers or TQM gurus. The pioneers focused on quantitative techniques and
methods to control the quality of manufactured products. From its beginnings at Bell
Laboratories, TQM evolved and developed while the most renowned pioneers created and
promoted the philosophy. Five of the more notable proponents and leaders of TQM are
Williams Edward Deming, Joseph Juran, Kaoru Ishikawa, Armand Feigenbaum, and Philip
B. Crosby.
While various experts differ with each other in specific areas, a review of TQM principles
espoused by experts identified the following areas of general agreement:
 TQM is a fundamental change in how most enterprises manage their business. The
change is difficult and takes time.
 Management must lead the total quality initiative.
 All employees must be involved in total quality management.
 Continuous quality improvement is a business imperative.
 Quality control and improvement apply throughout the organization.
 Ongoing education and training are essential for all employees.
 Quality requires an environment of teamwork, respect for the individual, trust, and
professional growth.
 Quality has a double benefit. It increases customer satisfaction and revenue by
improving the quality of products and services; it reduces costs by improving the
quality of processes.
Quality management is an organisation-wide approach to understanding precisely what
customers need and consistently delivering accurate solutions within budget, on time and
with the minimum loss to society (Chartered Quality Institute, 2012). Quality management
refers to all activities of the overall management function that determine the quality policy,
objectives and responsibilities, and implement them by means such as quality planning,
quality control, quality assurance and quality improvement within the quality system (ISO
8402). The ultimate objective of quality management is to deliver consistent customer
satisfaction by allocating resources in an effective and efficient manner in order to realise
optimal profit (Rose and Kenneth, 2005). To deliver consistent superior services in the danfo
industry, all functions involved in the service delivery need to contribute their own quota –
from the organisation of the danfo industry, to the capacity of personnel available, to the
financing options available for vehicle procurement, to the Unions that represent the industry
and down to the maintenance culture in the industry. All these factors have an influence on
the quality of management and thus overall profitability that can be generated by the Nigerian
mass road transport industry.
Quality management in the transport service has now taken a new turn. Everything is now
being done to enforce this standard in the transport industry, to the point that an entirely new
faculty – School of Transport, at the Lagos State University has been created to meet the
manpower needs of the transportation industry in Lagos State. Quality management in the
mass transport industry is not different form its counterparts in other industries. The role of
quality management in the Nigerian road transport industry is to promote comfortable and
flexible interaction through accessibility between places and people and therefore aid the
economic development of Nigeria. It is widely acknowledged that transport has a crucial role
to play in economic development (Curt Carnemark, Jamie Biderman and David Bovet, 1976).
Thus transportation is a connector that aids the economic advancement of any given nation.
This is more evident when one looks at the 2011 budget, which allocates N 55,954,636,803 to
the Ministry of Transport (Nigeria Bureau of Statistics, 2011). But the transport industry can
only play a leading role when the industry is effectively managed – in terms of organisation,
personnel, financial resources, regulation, etc. The success of the Asian tigers has been
hinged on the investment made by their respective countries. Weisbrod and Reno (2009)
explains that for every $1 dollar invested in mass transport industry, $4 is generated in
economic growth. In 2000, Zeithaml Valerie conducted a research to prove the existence of a
positive correlation between the aggregate profitability generated by an industry and the
quality of management present in that industry.
2.2.1 Quality management and Organisation of the transport industry.
For any big business like the transportation industry to achieve a high level of profitability,
there needs to be a well-structured organisation set-up to manage its operations. Take the
Nigeria banking industry circa 2004, there were 89 banks each controlling a small but
significant market share of the industry (Central Bank of Nigeria Financial Publication,
2004). Prior to 2004, none of the banks had ever made a profit in excess of $100m in any
given financial year, but they still thrived. Just three years after the consolidation, in 2008,
five of them (First Bank, UBA, Zenith, Union and Intercontinental Bank) made profit in
excess of $100m.
The rationale was that a number of banks were made to consolidate and merge their
operations. The Lagos danfo service can also be induced to consolidate. Consolidation allows
an industry to earn a higher profit, to increase revenue and achieve low cost. With twenty (20)
danfos being the minimum number of fleet one must have before one is given the licence to
operate a mass transport service in Lagos. The owners of these fleets would have to employ
managers, drivers, mechanics, and support staff to boost the efficiency of their danfo venture.
As they compete to boost their profitability, they would deliver consistent customer
satisfaction and thus entrench the principles of quality management in the Nigerian mass
transport industry. Heskett (1994) developed the service profit chain which hypothesizes that:
“Customer satisfaction --> Customer loyalty --> Profitability”
His findings support the theory that customer satisfaction is related to customer loyalty,
which in turn is related to profitability (Heskett et al., 1994).
2.2.2 Quality Management and Training of personnel
In 2001, the French Ministry of Transportation (CERTU) in collaboration with the Obasanjo
regime conducted a research and concluded that one of the most undeveloped skills in the
Nigerian Urban Passenger Transport sector is the Human Resource factor. The average
educational attainment of a danfo driver is JSS3 or Basic 9, this could be far worse in some
Local governments. Most drivers aren’t fluent in English, resorting to their native Yoruba
language or the street “Pidgin English”. Because of this, many passengers find it difficult
communicating with the danfo drivers, thus customer satisfaction becomes terribly low.
Heskett et al (1994) has shown a positive correlation between customer satisfaction and profit
margins of businesses.
With increased training of personnel, the mass transport industry would become more
professional. Chartered Institutes could even develop around the transportation industry. With
this, passengers would be able to measure the level of safety and quality of service they
would get on boarding a bus. Take the Chartered Institute of Personnel Management (CIPM)
as a reference point, everyone knows that a Fellow of the Institute (FCIPM) is expected to
deliver superior service when compared to what an Associate (ACIPM) would, an Associate
of the Institute is expected to still deliver superior service compared to an ordinary Member
of the Institute (MCIPM). Increase in professionalism would serve as a measure of service
delivery and is usually a basis for service differentiation in order to charge premium prices.
It is also very important to train the drivers of the danfo on basic mechanic functions, safety,
customer relations and other relevant operational skills regularly, to increase the operating
lifespan of the danfos’ and increase the safety of passengers. If you train the driver, you have
changed his habit and response to situations. The Lagos State government has set up Drivers’
Institute (Lagos State Drivers’ Institute) with centers each in five selected districts of the
state i.e. Ikorodu, Badagry, Ikeja, Lagos and Epe with the aim of:
 retraining of all professional drivers in the State
 Standardizing the driving profession in the State.
 registering and creating a database for all professional drivers in the State
2.2.3 Quality management and Procurement and Financing
Virtually all vehicles used for the danfo service are self-purchased and procured second-hand.
The drivers who can’t afford the initial start-up cost of a danfo lease from an “Oga” who has
more than one danfo. Volkswagen Varagon - adjusted with some fittings, is the most
preferred vehicle brand for danfo because of its engine ruggedity, passenger carrying capacity
(it can seat up to 13 passengers) and ease of manoeuvrability. The initial start-up cost for a
Second-hand Volkswagen 1993 Varagon model is N700,000, inclusive of taxes and
registration fees. Financing options by the commercial banks is very limited to the danfo
industry, mainly because of the fragmented nature of the industry and as such danfo drivers
are force to depend on their personal savings, family savings, friend’s loans, and Sherlock
moneylenders. The Microfinance banks that consider lending to this industry, charge 6%
interest rate per month on a reducing balance (Moses-Ashike , 2012).
Empirical research supports entrepreneurs’ views and indicates that lack of finance is
negatively correlated with SME firm growth (Ayyagari and Demirgüç-Kunt, 2007). The
Lagos danfo industry emphasises his research. Commercial banks are more willing to lend to
industries with minimal risk exposure. Cheap external financing is one of the foundations on
which quality management is built. To deliver consistent superior services, organisations
must have access to adequate financial resources.
2.2.4 Quality management and Unions
NARTO, NURTW and RTEAN are the major unions representing the danfo industries. These
unions are basically employee unions. Employee unions, in this context, are trade unions
which are more concerned with the welfare of their members rather than the maximisation of
industry gains. NARTO, NURTW and RTEAN liaise with governments (Federal and State)
on how to improve the well-fare conditions of their members. While they represent the
interest of their members, the danfo drivers are given autonomy on the affairs concerning
their buses. These unions need to be strengthened to enable them enforce the minimum level
of quality obtainable in the industry.
In New York, with its fragmented yellow-taxi service, the largest Cab union - the New York
Taxi Workers Alliance (NYTWA) numbering over 11,000 members and the Taxi and
Limousine Commission (TLC), has a set quality of standard for operation – vehicle type to be
used as taxi, fare rate, and passenger carrying capacity. With these passengers are assured of
the quality of service obtainable and thus patronize the yellow-taxi instead of other competing
mass transport service. NARTO, NURTW and RTEAN could take their cue from the New
York Taxi Workers Alliance (NYTWA) and the Taxi and Limousine Commission (TLC) of
New York City.
2.2.5 Quality management and Maintenance
To attain optimal profit, danfos need to have a life span long enough to generate sufficient
revenue at minimal cost. Oni (2004) has proved that a Second-hand vehicle has a useful life
span of five (5) years if taken regularly for tune-ups at a well-qualified mechanic and just
three (3) years if not. The average danfo driver doesn’t ever visit the mechanic for routine
maintenance, only visiting when his vehicle develops a visible fault. Because of this poor
maintenance culture, the danfo driver loses up to two (2) years of potential profits from his
danfo.
Auto maintenance is the process of inspecting or testing the condition of car subsystems (e.g.,
engine) and servicing or replacing parts and fluids. Regular maintenance is critical to ensure
the safety, reliability, drivability, comfort and longevity of a car. During preventive
maintenance, a number of parts are replaced to avoid major damage or for safety reasons,
e.g. timing belt replacement. Regular maintenance involves checking to see if the engine oil
is sufficient, the wheels are properly aligned, the air pressure in the tyres are right, the vehicle
isn’t making any unusual sound, the spark plugs are in proper working conditions, etc.
Regular maintenance is visiting a qualified mechanic and not the ordinary mechanic we see
on the road side. Though it costs money to visit a qualified mechanic, the extended lifespan
more than compensates for the cost.
2.2.6 Quality management and Customer Satisfaction
The central focus of quality management is consistent superior customer satisfaction. To
deliver this in the mass transport industry, the following dimensions must be given important
attention – the responsiveness of the transport service to passenger’s needs, the reliability of
the transport service in terms of availability, the accuracy of service delivery, the knowledge
of operators of the transport service, the courtesy displayed to the customers, the consistency
of service delivery and the speed at which this service is delivered.
Consistent superior customer satisfaction begins by identifying customer expectations for all
key "moments of truth" - the critical interactions customers have with the transport service.
The best way to understand customer expectations is to listen to customers using qualitative
research techniques. After identifying expectations, customer satisfaction can readily be
measured. Measuring passenger satisfaction requires the passenger to answer specific
questions about how he or she feels about the transport service's performance. This is why it
is so important to capture their interest and build the credibility needed to gain their
cooperation. The task is made considerably easier by speaking the customer's language and
presenting only issues that are truly significant.
Customers define quality by judging them in relation to competitors. The best performing
organizations allow customer expectations to drive their quality initiative. Once a mass
transport operator measures itself in relation to its competitors (benchmarking), it would be
able to quickly capitalize on their emerging strengths and address weaknesses before they
become problems. In fact, the whole success of a customer-orientated business is people
(Vincent, 2001)
2.3 Quality framework for mass transport
The European Commission in 1999 under the 4th
framework for Research, Technological
Development and Demonstration funded an extensive research that developed a quality
matrix – QUATTRO, which offers a comprehensive framework for analysing both functional
and technical quality determinants in mass transport. The table below is an adapted version.
Quality 1. Availability 1.1 Network
1.2 Timetable
2. Accessibility 2.1 External Interference
2.2 Internal interference
2.3 Ticketing
3. Affordability 3.1 Fare levels
3.2 Socially desirable services (concession fares).
4. Information 4.1 General Information
4.2 Travel Information in normal conditions
4.3 Travel Information in abnormal conditions
5. Time 5.1 Length of travel time
5.2 Punctuality and reliability
6. Customer care 6.1 Commitment
6.2 Customer Interference
6.3 Staff
6.4 Physical assistance
6.5 Ticketing options
7. Comfort 7.1 Ambient conditions
7.2 Facilities
7.3 Ergonomics
7.4 Ride comfort
8. Security 8.1 Safety from crime
8.2 Safety from accident
8.3 Perception of security
9. Environment 9.1 Pollution
9.2 Natural resources
9.3 Infrastructure
2.3.1 Availability
Public transport users want to be certain that the transport service would be at hand whenever
they need the service. They don’t want to get to the bus-stop and have to queue long hours
before they use the service. The average danfo user can wait at the bus-stop for an average of
ten (10) minutes before his/her patience runs thin. Making the mass transport service
available round the clock should be what the transport service providers should aspire to. As
once the customer is certain that the service would always be available, he increases his
patronage as he sees the service as reliable. The average danfo driver operates from 5:30am to
10:00pm on a single shift, while the BRT service operates two shifts of 6:00am to 2:00pm
and 2:00pm to 10:00pm. Between 10:00pm and 5:30am, transport service demand becomes
negligible. The traffic jams during peak periods and rainy season disrupts the availability of
mass transport and as such passengers resort to alternative means of transport – Okada, train
and by foot. For the young and elderly, mass transport is often the only motorised transport
option available to them.
2.3.2 Accessibility
This refers to the ease or convenience of getting a transport service. This also refers to the
convenience with which people with special requirements (physically disabled) can get on the
transport service. Virtually all danfos in Lagos state aren’t designed to accommodate people
with special requirement and as such these people are discouraged from using the danfo
service. In Lagos, there are over 200,000 disabled people and thus this potential market
becomes untapped. It also involves the ease with which the mass transport can access
passengers transport routes. Can the danfos access the periphery of Lagos and how terrain
serves as a constraint of choosing a public transport services? To achieve this, the
government has to construct motorable roads to improve accessibility.
2.3.3 Affordability
The cost of using the mass transportation service must be so minimal in the transport users’
eyes, but sufficient enough for the transport operator to cover the costs of delivering the
transport service plus a profit margin adequate to encourage further investment. Also the
transport fares should be charged in readily available denominations (N20, N50, or N100) to
allow for ease of payment. E – payment channels could also be implemented, especially for
frequent riders. This would be done through customer loyalty programs that encourage
customers to stick to a particular brand, rather than hover across different service providers.
2.3.4 Information
Information they say is power. Passengers need to have complete information of the vehicle
before they embark on a journey. On getting to the bus-stop they want to know what time is
the next bus coming, how many seats are available, how much is the transport fare going to
cost, route to be plied, what is the status of the driver – drunk or not, etc. Simply put, they
want to be provided with real time information of the status of their journey. During unusual
situations like emergencies, they want to be aware of the emergency procedures, the nearest
emergency exit, the insurance cover taken, and much more. Danfo drivers hardly ever care
about the importance of making information available to the passengers. In fact, the only
information they will provide for you is that which displays their destination. Worst of all
during emergencies, passengers are left at their own mercy as most of the danfos don’t have a
pre-planned emergency response procedure. Because of the dearth of information and poor
service delivered, frequent passengers of the danfo service are school children, youths,
women, and the poor primarily because they are helpless and can’t afford a private car. The
middle class who own a car rarely ever patronize the danfo services.
2.3.5 Time
As one considers embarking on a journey, one of what comes to mind is the issue of time –
what is the length of the journey, will the vehicle arrive on time, how much of the travel time
would be taken by traffic jam, etc. Passengers need to be certain that if they board a danfo
from Yaba that they would be in CMS in exactly 15minutes; nothing more, nothing less.
Because of the numerous stops for touts, police officers, traffic jams, etc the length of the
journey by a danfo is hardly ever certain. Some danfo drivers have been able to minimise the
effect of traffic jams by plying the opposite lane or manoeuvring through residential streets.
This at most times puts them in the nets of LAMATA and against the law. The BRT is the
only service that its time of travel is predictable. The longest time interval before a BRT bus
arrives at a bus-stop is 10minutes. The segregated lane for BRTs has made BRT rarely
affected by traffic jams and thus a Yaba-CMS journey by BRT is just 15minutes.
2.3.6 Customer care
The focal point of every customer oriented business is the customer. Customers need to be
treated with care from the moment they decide on the bus they want to board till they finally
alight the bus. Some schools of thought believe that customer care extends even after he
alights – this is a welcome development. The danfo driver and his conductor need to show the
passengers how committed they are to ensure that the passengers get to their destination on
time and safely. Anytime they come in contact with a (potential) passenger, they need to
inspire safety and reliability, while giving the passengers the reassurances that they are in the
safest hands possible. They should also provide special assistance to the elderly, school
children and pregnant and nursing mothers. The underlying premise in a customer oriented
business is that customer satisfaction should be the only objective of a business and profits
can only be generated from a satisfied customer. Because of the danfo driver’s educational
background, they believe that their major objective is to maximise transport fares, even at the
expense of customer satisfaction, as passengers will always come.
2.3.7 Comfort
This refers to how relaxing one feels in a public transport service. It includes the passengers
comfort in terms of leg room, upholstery of the chairs, luggage space, fresh air flow,
ambience and much more. Passengers want to enter a public transport and feel like they are in
the back seat of their car and not fishes parked in a Sardine can. The Volkswagen Type 2 (T3)
– typically used for danfo in Lagos, was designed to carry goods and not passengers. And as
such doesn’t have any sitting arrangement besides the driver’s row. It is when the vehicle
lands in Apapa that it gets fitted with wooden chairs, usually covered in two (2) cm of foam,
making comfort in a danfo bus poor. The only comfortable place is the driver’s row where
you have two (2) or three (3) passengers as against the average four (4) passengers on the
other rows.
2.3.8 Security
Anytime a passenger boards a mass transport, three main security issues comes to mind –
safety from crime, safety from accident and one’s perception of security. Safety from crime
refers to how secure is one and one’s belongings from pick pocketing, theft, being mugged
and armed robbery on entering the danfo. Safety form accident refers to the how certain that
he would arrive at his destination unharmed and in the event of an accident, the speed at
which medical personnel would attend to him. The perception of security refers to his
subjective feeling of his security in the public transport. Empirical research has discovered
that besides accessibility, security is a major concern on passengers mind in deciding to use a
public transport. Regardless of their drinking habits, danfo drivers are the safest means of
travel from ghastly motor accidents, but their records with regards to safety from crime is
abysmal.
2.3.9 Environment
This measures the impact of the danfo and their activities on our environment. How much
they contribute to global warming, noise pollution, breaking of law and order how they
damage our roads. Public transport cuts down our per capita carbon footprint, but this savings
could be reversed especially when the danfo used is rickety. The danfos incessant honking
causes a lot of noise pollution. The danfo drivers in Lagos are known to be the most reckless
in the world with regards to their constant and utter disregard for traffic rules and regulation.
2.4 Profits
Measuring customer retention, relates directly to the bottom line. Long term customers spend
more, refer new clients and are less costly to do business with. Ironically, past customers
present every company with an opportunity. They can tell the organization exactly what parts
of the business to fix in order to reduce the number of customers at risk. This improves
customer retention and, subsequently, profitability. An average organization loses about 15%
of its customers every year. But if this can be reduced to 10%, bottom line profits improve
35% to 85% (Heskett, 1994). Finding out why customers leave can often be difficult since the
majority of unhappy customers don't complain, they simply quit. Exit interviews solve this
problem.
Concern for performance and interest in customers are not new to the public transportation
industry. As the operators of private businesses and later public services, public transportation
managers have sought to maximize ridership and revenues by providing clean, safe, and
reliable service, while carefully managing costs.
Figure 1 The willingness to pay circle. Source QUATTRO
The figure above is “The willingness to pay circle” developed by Quattro. This figure explains
how with improved quality management performance, the firm can deliver better service at a
premium. Because of the better quality of service delivered, new customers would be gotten and
some old customers would be lost. The underlying premise is to make the net gain of customers
positive. Because of the transports company’s improved financial capacity, he would be able to
deliver more improved services. This cycle continues on and on as service in the transport
industry improves.
Better service
quality
Higher
effectiveness of
service
Higher
willingness to
pay
Higher fares
Higher revenues
Increased financial
capacity to improve
service quality.
Performance of
Quality management
New Customers
Lost customers
Summary
A review of the history of the mass transport industry shows that it is predominantly dominated
by the danfos. They have their history dating back to the seventies and are characterised by their
disorderliness, poor organisation, illiteracy, low maintenance culture, poor quality of service
delivery. While the Bus Rapid Transit (BRT) was designed to solve the excesses of these danfos,
the danfos still have a strangle hold of the Lagos mass transport industry.
We use the Quattro model to explain how we can implement quality management in the
transport industry. We start by explaining the nine (9) quality matrix as they form the building
blocks to implement the quality management in the transport industry. Quattro also provides us
with the willingness to pay circle. The willingness to pay circle describes how with improved
quality of service delivered, the transport firm can maximise its profits.
CHAPTER 3
THEORECTICAL FRAMEWORK AND RESEARCH METHODOLOGY
This chapter introduces the general method by which the data used in this research was gathered and
also analyses the way the research instruments were developed. Each section provides an insight into
the methodology adopted in the collection, analysis and interpretation of the data collated for the
study. It attempts to provide a detailed analysis of the research plan and tools utilized in the
actualization of this study.
3.1 Theoretical framework
Quality management is a management approach to increase the efficiency and effectiveness of an
organization. Quality management is not an easily visible management approach. But an increase in
long term profitability is just one of the signs of the positive impacts of quality management. This
change could be positive or negative depending on the Human and financial resources and
implementation procedures. Therefore, it is important to understand the channel through which
quality management approach influences the organizations long-term profit as well as the time it
takes for this approach to have industry wide impact. The basic theoretical framework for analyzing
the success or failure of the quality management approach is the Year-on-Year change in the Net
profit levels over a period of three (3) years. The mechanism is such that changes in the management
approach affect the organizational productivity and efficiency which increases the revenue accruable
to the industry.
The Total Quality Management literature, pioneered by Shewart, Deming and Juran in the 1950s,
based Total Quality Management on the quest for progress and continual improvement in the areas of
cost, reliability, quality, innovation, efficiency and business effectiveness. According to Bubsait
(2007), "Total Quality Management has been an approach for continuously improving the quality of
goods and services delivered through the participation of all levels and functions of the
organization". Organizations have viewed Quality management as the totally integrated efforts of
organizational members for gaining and sustaining competitive advantage by continuously
improving every facet of organizational culture. The increased reliability, quality and efficiency
leads to a simultaneous drop in cost. A reduction in cost - it being an outflow to the organization,
would lead to an increase in Net profit.
Another channel through which the application of quality management tends to affect Net profit is
the increased revenue. To an economist, the improved efficiency in the transport industry attracts
more ridership - more people would begin to use the public transport as a means to travel compared
to other available modes of transport. Also the improved efficiency is very crucial as it attracts
creditors into this industry. The creditors begin to offer more and cheaper financing to the transport
industry. Not only would they reduce the cost of borrowing in this industry, but the improved ease of
access to low cost financing encourages the transport industry to consolidate and enjoy economies of
scale.
However, since quality management was born and developed in the manufacturing industry,
obstacles can arise if the Quality Management philosophy is not adjusted enough to put the nature of
the transport industry - a service industry. According to Stanton, services are those separately
identified and essentially intangible activities that provide want satisfaction and that are not
necessarily tied to the sale of a product or another service. Dr Abdulaziz (2007) further emphasized
by saying, "implementing quality management in the transport industry can be difficult due to the
fact that quality of services cannot be defined objectively because of the higher level of external
uncertainty. Another difficulty is the fact that services are intangible which makes it difficult to set
standards to confirm to them and to measure them. High quality services are subject to the individual
customer expectations which may be unknown or unstated, and may vary from customer to customer
and also time to time.
But the European Commission in 1999, under the 4th Framework program for Research,
Technological Development and Demonstration funded an extensive research called QUATTRO that
outlines the effects of Quality management, how to measure this quality, how quality management
affects cost in the public transport industry and the public transport quality matrix. The project,
called QUATTRO, emphasized the conventional wisdom that Quality management has a positive
correlation with profitability in the transport industry. These studies also represent an advance in our
understanding of the effects of the quality management on profitability.
3.2 Research design strategy
This research is designed to critically investigate the impact of quality management on the
profitability of the Nigerian public road transport industry. Research design provides the glue that
holds the research project together. A design is used to structure the research, to show how all of the
major parts of the research project — the samples or groups, measures, treatments or programs, and
methods of assignment — work together to try to address the central research questions.
There are various research designs but the one adopted for the purpose of this study is a cross-
sectional survey. In a cross-sectional survey, data is collected at a point in time from a sample
selected to describe some larger population.
3.3 Sources of data
To ensure the reliability of the information resulting from the research, this research work will be
based on secondary and primary data collection methods the researcher deployed the use of the two
data types. The data used in this study was thus derived from both primary and secondary sources.
3.3.1 Primary data
Primary sources are the materials on a topic upon which subsequent interpretations or studies are
based, anything from first hand documents such as poems, diaries, court records, and interviews to
research results generated by experiments, surveys, and so on. Primary sources are records of events
as they are first described, without any interpretation or commentary. Primary data has the advantage
of giving the researcher the opportunity to conduct an unbiased and extensive study on the research
problem set-out to solve.
For the purpose of this research, the researcher used the underlisted primary research data
i. Questionnaires: A structured questionnaire was used, which contained a series of
questions. A structured questionnaire has the advantage of presenting questions in
sequence. It standardises the research instruments and equally removes the chances of the
respondent tele-guiding the researcher. The researcher used scaled questions.
ii. Observation: Observation means that the situation of interest is checked and a person or
some mechanical device records the relevant facts, actions, or behaviours. Accurate data
about what consumers do in certain situations is provided by observation. Observation
does not tell why it happened.
We intend to carry out a study to determine the impact of quality management on the profitability of
the Nigerian public road transport industry. To facilitate this process, a population size of four
hundred and fifty people was chosen. The distribution of the respondents was on the danfo drivers,
their conductors, passengers and regulatory agencies like LASTMA, the Police, NURTW, etc. The
questionnaires will be administered in the Ikeja, Ikorodu, Obalende, Oshodi and Yaba motor parks of
Lagos based on the fact these areas are the major transport hubs of Lagos.
3.3.2 Secondary Data
Secondary sources, on the other hand, offer an analysis or are statement of primary sources. They
often attempt to describe or explain primary sources. Some secondary sources not only analyse
primary sources, but use them to argue a contention or to persuade the reader to hold a certain
opinion.
A lot of materials used, especially for the theoretical framework of this study was obtained from
articles, internet, journals, magazines, newspapers and textbooks. All these served as the secondary
source of data.
3.4 Research instruments
The instruments of research are determined in line with the nature and objective of the research. This
study was designed to be facilitated using a survey format hence the use of a carefully designed and
standardised questionnaire that allows respondents to answer certain collated questions. Questioning
involves using a questionnaire (data collection instrument) to ask respondents questions to secure the
desired information. The result of the questionnaire was combined with data collated from secondary
sources as well as observations, to draw concluding inferences.
3.5 Research population
According to Asika (1991), the population of a research study is defined as the census of all items or
objects that possess the characteristic or that have the knowledge of the phenomenon being studied.
The population of the study consists of the entire transport operations in Lagos.
To reduce the laborious process of distributing questionnaires and conducting personal interviews
with the entire population in the various institutions, a random selection of players in the Lagos
public transport industry was carried out. Our sample size is drawn from this population and consists
of two hundred and fifty (250) respondents.
3.5.1 Determination of sample size
A sample size is defined as the subject or part of the entire population of the study from which we
select a few objects (people) in the population for observation and then apply what was observed to
the entire population of the study. The population of this study is a finite one.
A sample size of 250 respondents was used and adequate care was taken to accommodate all
categories of respondents in the analysis of data. To optimize the outcome of the research the
researcher restricted the distribution of the questionnaires to aforementioned categories of people.
The drivers and conductors are the ones who have more dealings with customers and are experts in
the field, hence making them more experienced in developing tailored superior services to their
customers.
Other regulatory agencies like LASTMA, KAI, The Police, NURTW, etc. are also included in this
sample because they develop and implement the policy framework that would affect the profitability
of the public transport industry. Also, the customers (passengers) are also included in this research as
they are the users of the public transport services.
3.6 Restatement of research questions
The research questions will focus on the impact of quality management on the profitability of the
Nigerian road transport industry and how the profitability of the industry can be improved.
i. How is the present profitability level of each individual danfo measured?
ii. How can the driver and conductors be motivated to deliver superior services to their
passengers (customers)?
iii. How can Unions and other regulatory agencies be harmonised for optimal
performance and for increased profitability of the danfo drivers?
iv. How can customer satisfaction be improved and superior services delivered?
3.6.1 Restatement of hypothesis
: There is no correlation between how regular maintenance is done on the vehicle and the
profit of the drivers.
There is correlation between how regular maintenance is done on the vehicle and the
profit of the drivers.
HB0: There is no correlation between the amount spent on maintenance and the profit of the
drivers.
HB1: There is correlation between the amount spent on maintenance and the profit of the
drivers.
3.7 Conduction of the field work
The field work involved the administration and collection of the questionnaires. Efforts were made to
avoid much use of technical terms as the questions were simple and straight forward. The
administration of questionnaire was done in locations at Ikeja, Ikorodu, Obalende, Oshodi and Yaba
in Lagos. A total of two hundred and fifty (250) copies of questionnaires were distributed.
In order to obtain data from the sample respondents, Likert scale questionnaire was designed and
administered among the chosen sample size. The success in the number of respondents to the
administered questionnaire was ensured through the deployment of the assistance of fellow
colleagues and friends who are resident in these cities. Interviews were conducted on the research
topic.
3.8 Method of data analysis
This involves the use of some statistical tools such as percentages, mean score and Correlation co-
efficient in order to make comparison, test the hypotheses and draw conclusions. Correlation
coefficient helps test the relationship between variables.
3.9 Limitation of methodology
The followings, so far projected might be encountered in the conduct of the research work and these
include: the rate of response rate of the respondents, the availability of data in relation to their
profitability and the respondent’s literacy level.
Summary
The aim of this chapter would be to validate empirically our research hypothesis and gather as much
insight into the impact of quality management on the profitability of the Nigerian road transport
industry using the Lagos state danfo drivers as a case study.
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.0 Introduction
The findings of the research are presented as they relate to the research hypothesis. A tabular format
is used to present the data, results and findings of the study with appropriate explanations.
Prior to the actual administration of the questionnaire, the investigator carried out some exercise
among few operators of the danfo service in order to determine whether the questions were ordered
or structured in such a manner as to elicit the desired information.
4.1 Presentation of Data
TABLE 4.1.1: RESPONSE RATE BY LOCATION
REGION No. of Questionnaire given Properly filled
Ikeja 45 38
Ikorodu 45 35
Obalende 45 39
Oshodi 45 36
Yaba 45 37
Total 225 185
From the table above, a total of 185 questionnaires were returned out of 225 questionnaires given.
The questionnaires were fairly distributed around the major transport hubs of Ikeja, Ikorodu,
Obalende, Oshodi and Yaba with 38, 35, 39, 36 and 37 respectively.
TABLE 4.1.2: RESPONSE RATE BY AGE CATEGORY
Age category Number Response
17 – 23 18 9.7
24 – 30 51 27.6
31 – 40 41 22.2
41 – 50 50 27.0
51 and above 25 13.5
Total 185 100.0
As could be read from the table, out of 185 respondents 18 were between the ages of 17 to 23years,
51 were between 24 and 30years, 41 were between 31 and 40years, 50 were between 41 and 50years
and 25 were above 51 years representing 9.7%, 27.6%, 22.2%, 27.0% and 13.5% respectively.
The labour force participation rate is highest among the broad age category of 24 to 50 which
constitute 76% of the total sample. Age category 17 to 23 years constitutes 9.7% while 51 and above
constitutes 13.5%. The study of age distribution enables the researcher to know the percentage that is
within the various age group of the workforce.
TABLE 4.1.3: DISTRIBUTION BY SEX OF RESPONDENT
Variable Number Percentage
Male 185 100.0
Total 185 100.0
A total of the 185 respondents were all male. This represents the realities on ground. The danfo
business is a predominantly male dominated business.
TABLE 4.1.4: YEARS OF EXPERIENCE
Years of Experience Number Percentage
Less than 1year 38 20.5
1 – 5years 28 15.1
6 – 10 years 39 21.1
11 -15 years 39 21.1
Above 15 years 41 22.2
Total 185 100.0
Table 4.14 shows the years of experience possessed by the drivers. This is so important to this study
for the fact that, the more experience you acquired the more likely you would deliver quality service.
TABLE 4.1.5: HIGHEST EDUCATIONAL QUALIFICATION ATTAINED
Degree Qualification Number Percentage
Primary 80 43.2
JSCE 57 30.8
SSCE 42 22.7
HND/DIPLOMA 6 3.2
Total 185 100.0
An examination of this table would reveal that 43.2% have attained a maximum of primary school
qualification, 30.8% have a maximum of JSCE and 22.7 have a maximum of SSCE qualification.
And 3.2% have a maximum of HND/Diploma qualification. None of the danfo operators has attained
B.Sc. our Masters qualification. This is important to this study because, one’s educational
qualification influences one’s exposure which determines the quality of service one could offer. And
as such, the more educational qualification one has attained the better quality of management one
would offer.
TABLE 4.1.6: DO YOU OWN A DANFO
Response Number Percentage
Yes 130 70.3
No 55 29.7
Total 185 100
From the table above, 130 representing 70.3% of the operator own their danfo’s and 55% either
rented theirs or leased the danfo buses they use. Of those who own their own danfo’s, 89 of them
own just one Danfo, 18 own just two buses, 10 own three buses while the remaining 13 own above 4
buses. This shows how fragmented the industry as 48% of the Danfo drivers own just one danfo bus.
They are thus not able to maximise the economies of scale.
TABLE 4.1.7: SOURCE OF FINANCING
Frequency Percentage
PERSONAL SAVINGS 100 54.1
LOAN FROM RELATIVES 31 16.8
LEASED THE DANFO 54 29.2
Total 185 100.0
From the table above, 54.1% of the danfo drivers use their personal savings to operate their danfo,
16.8% get their financing from relatives and loved ones. The other 29.2% get their financing from
some other form of informal financing – retirees, loan sharks, etc. Despite the fact that 76.8% of the
Danfo drivers are open to loan from commercial banks (Table: 4.16 ), Commercial banks provide
0% financing to the danfo service possibly because of the perceived risk.
TABLE 4.1.8: HOW MANY DAYS OF THE WEEK DO YOU WORK
Frequency Percentage
5 DAYS 44 23.8
6 DAYS 112 60.5
7 DAYS 21 11.4
Invalid 8 4.3
Total 185 100.0
From the table above, 60.5% of the danfo drivers operate for 6-days out of a possible. This is very
important as it is a fact that the more work hours, the higher the chances of fatique setting in and the
lower the quality of service that could be delivered.
TABLE 4.1.9: HOW LONG DO YOU WORK EVERY DAY
Duration Frequency Percentage
BELOW 8 HOURS 13 7.0
8 -10 HOURS 42 22.7
10 - 12 HOURS 83 44.9
ABOVE 12 HOURS 47 25.4
Total 185 100.0
From the Table above, 60.5% of the danfo drivers work for six times a week resting mostly on
Sundays. 23.8% of them work for five days in a week and 11.4% work 7 Days in a week. The
median hours of operation are 10 – 12 hours as 44.9% of the drivers affirmed to this. This is
important because we now that the longer a person works, the more fatigue sets and his frustration
begins to rise. He thus becomes unable to deliver appropriate quality service to his customers.
TABLE 4.1.11: WHAT IS YOUR BUSIEST TIME OF THE DAY?
The busiest time of the day is between the hours of 6a.m. and 9a.m. and between the hours of 6p.m.
and 9p.m. in the evening. These hours represent rush hours when workers and students are going
and returning from their areas of work and schooling respectively. During this peak period, pressure
is on the danfo drivers to deliver quality service.
Frequency Percentage
6AM - 9AM 98 53.0
9AM - 12NOON 12 6.5
12NOON - 3PM 10 5.4
3PM - 6PM 9 4.9
6PM - 9PM 56 30.3
Total 185 100.0
TABLE 4.1.12: WHAT DO PASSENGERS USUALLY DEMAND FOR
Frequency Percentage
CHEAPER TRANSPORT FARES 39 21.1
COMFORT 12 6.5
TIMELINESS 100 54.1
SAFETY AND SECURITY 34 18.4
Total 185 100.0
According to the drivers, 54.1% of their passengers demand that the driver arrives to their point of
destination on time; 21.1% of their passengers demand for cheaper transport fares; 18.4% are more
concerned about their safety; and just 6.5% demand for an improvement in the comfortability of the
danfos. Knowing what passengers demand for is very important as it would enable the researcher
develop an effective quality management framework that would be relevant to the industry.
TABLE 4.1.13: DO YOU HAVE A SPECIFIC CONDUCTOR
Frequency Percentage
YES 111 60.0
NO 74 40.0
Total 185 100.0
From the table above, 40% of the drivers attested to the fact that they do not have a permanent
conductor. A high labour turnover of this magnitude limits their ability to consistently deliver quality
service to their passengers. Frequent changing of passengers would require continuous enlightenment
and this would hinder the danfo service from delivering superior quality service.
TABLE 4.1.14: HOW LONG HAVE YOU BEEN WITH THIS CONDUCTOR
Frequency Percentage
LESS THAN 2 WEEKS 33 17.8
2 WEEKS - 2 MONTHS 32 17.3
2 MONTHS - 6 MONTHS 46 24.9
6 MONTHS - 1 YEAR 33 17.8
OVER 1 YEAR 41 22.2
Total 185 100.0
From the table above, 60% of the drivers attested to the fact that they have spent less than 6 months
with their conductors. This high labour turnover doesn’t encourage the delivery of quality service to
the customer.
TABLE 4.1.15: HOW MUCH FUEL DO YOU BUY EVERYDAY
Cost Frequency Percentage
N751 - N1,500 12 6.5
N1,501 - N2,300 30 16.2
N2,301 - N3,000 115 62.2
ABOVE N3,000 16 8.6
Total 185 100.0
From the table above, the median expenses spent on fuel lies between N2,301 – N3,000. As fuel is a
major operational cost, a spike in the cost of fuel would lead to higher transport fares or the reduction
in the already low maintenance culture of the drivers.
TABLE 4.1.16: HOW MUCH DO YOU MAKE EVERYDAY AFTER EXPENSES
Frequency Percentage
LESS THAN N2,000 10 5.4
N2,001 - N4,000 63 34.1
N4,001 - N6,000 94 50.8
N6,001 - N8,000 18 9.7
Total 185 100.0
This table is very important as it shows the average daily profit of the danfo drivers. It can be seen
that 34.1% of them make between N2,000 and N4,000 profit. While 50.8% of them make between
N4,001 and N6,000. This table is also important as it will also help us test our hypothesis.
TABLE 4.1.17: WOULD YOU ACCEPT A LOAN TO EXPAND YOUR DANFO BUSINESS
Frequency Percentage
YES 142 76.8
NO 36 19.5
INVALID 7 3.8
Total 185 100.0
From the table above, 76.8% of the danfo drivers are open to accept a loan from financial institutions
to invest into and expand their business. Lack of funds could also be a factor that hinders their
capacity to deliver quality management.
TABLE 4.1.18: HOW OFTEN DO YOU DO MAINTENANCE
Duration Frequency Percentage
WEEKLY 15 8.1
MONTHLY 66 35.7
WHEN THE PERFORMANCE OF THE VEHICLE DROPS 89 48.1
RARELY 15 8.1
Total 185 100.0
The maintenance culture among danfo drivers is poor. This is because 48.1% of the danfo drivers
only report going for maintenance only when their bus performance drops. Effective quality
management requires that maintenance be done on a regular basis and not once in a while.
TABLE 4.1.19: ON AVERAGE HOW MUCH DO YOU SPEND ON THE MAINTENANCE
OF THE BUS
Frequency Percentage
LESS THAN N2,000 8 4.3
N2,000 - N5,000 58 31.4
N5,001 - N10,000 98 53.0
ABOVE N10,000 21 11.4
Total 185 100.0
From the table above, 53.0% of the drivers spend between N5,000-N10,000 on maintenance. While
31.4% spend between N2,000 and N5,000 on maintenance.
TABLE 4.1.20: WHICH UNION DO YOU BELONG TO?
Frequency Percentage
NURTW 89 48.1
RTEAN 55 29.7
NONE 41 22.2
Total 185 100.0
NURTW happens to be the union with the largest membership strength with 48.1% of the drivers,
while RTEAN is second with 29.7%. 22.2% belonged to no union at all. With 77.8% of the drivers
unionised, the concept of quality management would be more accepted with the involvement of the
unions.
TABLE 4.1.21: WHO GIVES YOU THE MOST WORRY
Frequency Percentage
AGBERO'S 66 35.7
LASTMA/VIO 75 40.5
NURTW/NARTO/RTEAN 17 9.2
POLICE 27 14.6
Total 185 100.0
LASTMA/VIO, Agberos, police and the union, in this order, happened to give the danfos more
worry as they exhibit 40.5%, 35.7%, 14.6% and 9.2% of the survey report.
TABLE 4.1.22: HOW OFTEN HAVE YOU BEEN HARRASSED BY THE
POLICE/LASTMA/VIO
Frequency Percentage
DAILY 87 47.0
WEEKLY 47 25.4
MONTHLY 26 14.1
RARELY 25 13.5
Total 185 100.0
From the table above, the danfo drivers are on a regular basis harassed by the Police, Lastma or VIO.
This frequent harassment causes a strain on the danfo drivers ability to deliver quality service.
TABLE 4.1.23: HOW MUCH DO YOU HAVE TO PAY TO THE POLICE TO LET YOU GO
Frequency Percentage
LESS THAN N50 62 33.5
N51 - N100 77 41.6
N101 - N200 20 10.8
ABOVE N200 26 14.1
Total 185 100.0
To get themselves free from Police harassment, 41.6% attested to the fact that they pay between N51
and N100; 33.6% pay between N0 and N50, 10.8% pay between N101 and N200 while 14.1% claim
to pay above N200.
TABLE 4.1.24: HOW MUCH DO YOU HAVE TO PAY TO LASTMA/VIO TO LET YOU
GO
Frequency Percentage
LESS THAN N2,000 8 4.3
N2,001 - N5,000 24 13.0
N5,001 - N10,000 114 61.6
N10,001 - N20,000 36 19.5
ABOVE N20,000 3 1.6
Total 185 100.0
From the table above, 61.6% of the danfo drivers pay between N5,000 and N10,000 to get
themselves free from the clutches of lastma or VIO, 19.5% pay N10,000 and N20,000, 13.0% pay
between N2,000 and N5,000; 4.3% pay less than N2,000 and just 1.6% pay above N20,000.
4.20: Test for hypothesis
This section presents the test of the hypothesis formulated for the study using Spearman’s correlation
statistical tool which is shown in Table 4.30
Table 4.20: Correlations
PROFIT MAINTENANCE EXPENSE ON
MAINTENANCE
WORK TIME
PROFIT 1.000 .745** .730** .165
MAINTENANCE .745** 1.000 .574** .120
EXPENSE ON
MAINTENANCE
.730** .574** 1.000 .107
WORK TIME .165 .120 .107 1.000
**. Correlation is significant at the 0.05 level (2-tailed).
Hypothesis 1:
: There is no correlation between how regular maintenance is done on the vehicle and the
profit of the drivers.
There is correlation between how regular maintenance is done on the vehicle and the
profit of the drivers.
From the Table 4.4 when profit (daily take home by the danfo drivers) was correlated against
maintenance visits, the coefficient was 0.745. This shows that there is a high relationship between
the daily take home (profit) of the drivers and how regular maintenance was done on the danfo
because correlation coefficient is closer to one (1). Thus, is rejected at the 0.05 level of
significance because the SPSS flagged the result with two stars (**) indicating that correlation is
significant at the 0.05 level (2-tailed).
Hypothesis II
HB0: There is no correlation between the amount spent on maintenance and the profit of the
drivers.
HB1 There is correlation between the amount spent on maintenance and the profit of the
drivers.
From Table 4.4, when the expenses were tested with the profit of the danfo drivers, the coefficient of
correlation was 0.730(**). This shows that there is high relationship between the amount spent on
maintenance and profit levels because the coefficient of correlation is closer to one (1). Thus, 𝐻 𝐵0 is
rejected at 0.05 level of significance because the SPSS output flagged the result with two stars (**)
indicating that correlation is significant at the 0.05level (2-tailed).
In order to test this hypothesis, question seven in the questionnaire solicited to know what the
respondents felt about good incentive and achievement in relation to their needs, want and desire.
CHAPTER FIVE
SUMMARY, CONCLUSION AND RECOMMENDATION
5.0 Summary of Findings
There is no doubt that this study has proved the impact of quality management on mass
transportation in Nigeria. This has been achieved by actually interacting with the danfo drivers who
are the subject matter of this research. Among some of the findings made from the study are:
5.0.1 Operational Problems
Firstly, the operational problems which were related to bad roads and lack of garages does not
encourage profitability and effective transportation business because these operational problems add
to maintenance cost of the vehicles and shorten the life span of the vehicles thereby making business
susceptible to failure. And problem of getting genuine spare parts make it difficult to operate
effectively.
5.0.2 Fragmentation of the Industry
Since the organised mass transport industry is highly fragmented. It does not benefit from economies
of scale and efficiency as a result of specialisation. With every owner of a danfo business also being
his driver, his mechanic, his administrative staff, etc., he thus doesn’t maximise profit accruable.
5.0.3 Literacy Level
The low literacy level of the danfo drivers is also a hindering factor. Many of them are not able to
speak “standard English”, choosing instead to communicate in their local dialect or pidgin. This thus
hampers how effective they would be in communicating with their customers.
5.0.4 Union Activities
The persistant taxation and toll taking by the unions, agberos and touts has been a strain on the
profitability of the danfo drivers. Having to always contend with paying these levies or see one part
of their vehicles damaged forces them to pay. They are even more angered since these unions,
agberos or touts aren’t helping them to solve their operational problems, but more interested in lining
their own pockets.
5.0.5 Activities of Police/VIO/LASTMA
These government agencies have virtually started living off the mass transport industry. They make
laws that would always make the danfo drivers at their mercy so that they could charge him a fine.
Some even believe that collecting bribe is their birth right and have been known to shoot at any
slightest provocation. The activities of the Police, LASTMA and VIO have thus hindered the
profitability of the mass transport industry.
5.1 Conclusion
Having gone this far on mass transportation in Nigeria, it is considered an understatement to observe
that mass transportation has become an integral part of the Nigerian economic system. Thus, the
effective management of the mass transportation industry is essential for Economic build up, or
excellence.
The increasing awareness of the business prospect having dawn on prospective transportation
operators and the need for positive orientation along this line is in no doubt putting transportation in
the fore-front of the economic reconstruction. The role of effective transportation therefore cannot be
over-emphasised or over-looked in an economy.
5.2 Recommendations
Giving the rightful backing, by government and investors, over hauling the whole transportation
system of the country will go a long way in helping the business to grow.
This should include the construction of all season road network across the country’s landscape as
every dollar spent on transportation contributes to the overall GDP.
 The public transport operators should be made to consolidate and organise themselves into
corporations.
 The activities of the Unions, Agberos and touts should be curtailed and overtime restrained as
they have no positive contribution to the industry.
 The Police, VIO and LASTMA should stick to their traditional functions of maintaining law
and order and not revenue generation.
 Parties involved (Government, Drivers and Unions) should promote the best possible service
to public transport customers in urban areas by applying adapted quality management
practices and procedures, so as to optimise the use of physical and financial resources in a
market driven environment
 Transform the public transport experience from “an obstacle course” to a “seamless journey”,
which means proposing a door to door service to the users;
 Use quality and quality management to attract customers by offering services which compete
with the private car;
 Develop a customer-orientated approach. Think “Customer”, “Customer”, and “Customer”
 Drivers should consider their activity as more than a business: the impact of passenger
transport activities on the local community and on the quality of life must be taken into
consideration in urban public transport strategies, objectives and priorities
 That the people who ultimately influence service quality in public transport are the bus driver,
the traffic warden, the person in charge of complaints or vehicle maintenance. Their working
conditions will influence directly their willingness and capacity to provide good service.
Listening to the staff, communicating with them on their working conditions, on the firm’s
traffic management strategy, on the results of their work and on the practical consequences
for them of the management’s decisions is therefore essential.
QUESTIONNAIRE FORM
INSTRUCTION: Please tick the most appropriate option as provided below.
PART A
BIO - DATA
1) Sex:
Male ( ) Female ( )
2) Marital Status:
Single ( ) Married ( )
3) Age:
17 – 23 ( ) 24 – 30 ( ) 31 – 40 ( ) 41 – 50 ( ) 51 and above ( )
4) Education qualification;
Primary ( ) JSCE ( ) SSCE ( ) Diploma ( ) HND/B.Sc. ( )
M.Sc. ( )
5) Do you own a Danfo bus:
Yes ( ) No ( )
6) Do you have a Driver’s license?
Yes ( ) No ( )
7) How did you get the money to purchase this danfo:
Personal savings ( ) Loan from relatives ( )
Loan from Microfinance banks ( ) Loan from banks ( ) Rented the danfo ( )
8) Indicate your years of experience in the Danfo industry:
Less than 1year ( ) 1 – 5 years ( ) 6 – 10 years ( )
11 – 15years ( ) Above 15 years ( )
9) How many Danfo’s do you own:
0 ( ) 1 ( ) 2 ( ) 3( ) 4 and above ( )
PART B – Work specific
10) How many days of the week do you work:
5days ( ) 6 days ( ) 7 days ( )
11) How long do you work every day:
Below 8hrs ( ) 8 – 10 hrs ( ) 10 – 12 hrs ( )
Above 12hrs ( )
12) After work, how do you relax:
Beer parlor ( ) Watch a match ( ) At Home ( )
Visit a girlfriend ( )
13) How much money do you charge per journey:
less than N50 ( ) N51 – N100 ( ) N101 – N150 ( )
N151 – N200 ( ) Above N200 ( )
14) What time of the day is the MOST profitable:
6am - 9am ( ) 9am – 12noon ( ) 12noon – 3pm ( )
3pm – 6pm ( ) 6pm – 9pm ( )
15) What time of the day is the LEAST profitable:
6am - 9am ( ) 9am – 12noon ( ) 12noon – 3pm ( )
3pm – 6pm ( ) 6pm – 9pm ( )
16) What do passengers usually demand for:
Cheaper transport fares ( ) comfort ( ) Timeliness ( )
Safety and security ( )
17) Do you have a specific conductor:
Yes ( ) No ( )
18) How long have you been with this conductor:
less than 2 weeks ( ) 2weeks – 2 months ( ) 2months – 6 months ( )
6months – 1 year ( ) Over 1 year ( ).
19) How many conductors have you had in the past 2years:
less than 2 ( ) 3 – 4 ( ) 5 – 6 ( ) Above 7 ( )
20) How much money do you pay your conductor daily:
less than N200 ( ) N201 – N500 ( ) N501 – N1000 ( )
N1,001 – N2,000( ) Above N2,000 ( )
21) Is it cheaper to work without conductor:
Yes ( ) No ( )
22) If yes, why is it cheaper to work without conductror:
Theft ( ) Wage ( )
PART C – Industry specific
23) How much fuel do you buy everyday:
Less than N750 ( ) N751 – N1,500 ( ) N1,501 – N2,300 ( )
N2,301 – N3,000 ( ) Above N3,000 ( )
24) How much do you make every day:
less than N2000 ( ) N2,001 – N4,000 ( ) N4,001 – N6,000 ( )
N6,001 – N8,000 ( ) Above N8,000 ( )
25) Would you accept a loan to expand your Danfo business:
Yes ( ) No ( )
26) How often do you visit the mechanic:
Weekly ( ) Monthly ( )
Only when the car develops fault ( ) Rarely ( )
27) On average how much do you spend on the maintenance of the bus:
Less than N2,000 ( ) N2,000 – N5,000 ( ) N5,001 – N10,000 ( )
Above N10,000 ( )
28) Which Union do you belong to:
NURTW ( ) RTEAN ( ) NARTO ( ) None ( )
29) How do you pay your Union dues:
Per journey ( ) Daily ( ) Weekly ( ) Monthly ( )
Yearly ( )
30) How much do you pay daily to the Unions:
N500 – N1,000 ( ) N1,001 – N1,500 ( ) N1,501 – N2,000 ( )
Above N2,000 ( )
31) Who gives you the most worry:
Agbero’s ( ) LASTMA/VIO ( )
NURTW/NARTO/RTEAN ( ) Police ( )
32) How often have you been harassed by the Police/LASTMA:
Daily ( ) Weekly ( ) Monthly ( ) Rarely ( )
33) How much do you have to pay for the Police to let you go:
Less than N50( ) N51 – N100 ( ) N101 – N 200 ( ) Above N200 ( )
34) How much do you have to pay for LASTMA/VIO to let you go:
Less than N2,000( ) N2,001 – N5,000 ( ) N5,001 – N 10,000 ( )
N10,001 – N20,000 ( ) Above N20,000 ( )
34) What is the biggest challenge facing you in this industry:
Passengers ( ) Agberos/Touts ( ) LASTMA/VIO ( )
Police ( ) Fellow drivers ( )
PART D – Person specific
35) How many children do you have:
2 and below ( ) 3 – 5 ( ) 6 – 8 ( ) 9 and above ( )
36) How many Girlfriends/ wives do you have:
1( ) 2 – 3 ( ) 4 – 5 ( )
6 – 7 ( ) Above 8 ( )
References
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The free press.
Bubsait, A. (2007). Application of TQM to Financial Services. Abu Dhabi: King Fahd University
Press.
Budget, L. S. (2004). State of Lagos Megacity and other Nigerian Cities. Ikeja: Lagos Indicator.
Central Bank of Nigeria, (2004). Annual Financial Publication. Abuja: Nigerian Security Printing
and Minting Company .
CERTU (2001). Quality Management in Public Transport. Brussels. APTA Press
Chartered Quality Institute, (2012). What is Quality Management. European Union Journal of
Transportation, 69 - 73.
Curt Carnemark, Jamie Biderman, David Bovet. (1976). The Economic analysis of rural road
projects. Washington: International government publication.
Curt, C. (January 1979). Social and Technical Aspects of Rural Roads. Dhaka: ESCAP .
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Deming, W. (1993). The New Economics. Cambridge, MA: MIT Center for Advanced Engineering
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Prentice-Hall Inc.
ISO 8402:1994, (2011, May 21). Quality Management and Quality Assurance . Retrieved from ISO:
www.iso.org/iso/iso_catalogue_detail_ics.htm?csnumber=20115
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Press.
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http://www.thecqi.org/Knowledge-Hub/What-is-quality/Making-business-better/
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Nicolson.
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MEGACITIES. Ikeja: Lagos Metropolitan Area Authority.
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The impact of quality management on the profitability of the nigerian road transport industry
The impact of quality management on the profitability of the nigerian road transport industry

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The impact of quality management on the profitability of the nigerian road transport industry

  • 1. Name UKWUEGBU, ANTHONY CHIJIOKE 080203107 TOPIC THE IMPACT OF QUALITY MANAGEMENT, ON THE PROFITABILITY OF THE NIGERIAN ROAD TRANSPORT INDUSTRY (A CASE STUDY OF DANFO BUSES). SUPERVISOR: DR E. O. OYATOYE.
  • 2. THE IMPACT OF QUALITY MANAGEMENT ON THE PROFITABILITY OF THE NIGERIAN ROAD TRANSPORT INDUSTRY. (A CASE STUDY OF DANFO BUSES). A FINAL YEAR PROJECT REPORT SUBMITTED TO THE DEPARTMENT OF BUSINESS ADMINISTRATION, FACULTY OF BUSINESS ADMINISTRATION, UNIVERSITY OF LAGOS, NIGERIA. IN PARTIAL FULFILLMENT OF THE REQUIREMENT FOR THE AWARD OF THE DEGREE OF BACHELOR OF SCIENCE (HONS) IN BUSINESS ADMINISTRATION. BY UKWUEGBU, ANTHONY CHIJIOKE 080203107 OCTOBER, 2012
  • 3. CERTIFICATION This is to certify that the contents of this project are commensurate with and representative of the work done by UKWUEGBU, ANTHONY CHIJIOKE during the course of his final year project under my supervision. …………………….. ………………….. Supervisor Date DR. E. O. OYATOYE ……………………… ………………….. Head of Department Date DR. O. KUYE
  • 4. DEDICATION To Almighty God, the Author and Finisher of my fate.
  • 5. ACKNOWLEDGMENT My heart-felt gratitude goes to YOU for picking up this report. I hope you find it useful in your quest to transform our society.
  • 6. ABSTRACT The main focus of this project is to reveal the impact of quality management on the profitability of the Nigerian mass transport industry. In order to achieve the aim of this study; attributed quality management factors like maintenance, accessibility, availability, safety, customer satisfaction and price were investigated. To this end, the Lagos Danfo drivers were chosen as the body of study. For a purposeful study to be conducted, some relevant books and research by many authors were reviewed. Research questions were formulated to avoid any form of deviation from the main purpose of the topic. The use of questionnaires was employed to gather the information needed from the respondents. This information was then analysed using Spearman’s correlation to determine the type of association between the hypotheses. The study revealed that the application of quality management to the Nigerian mass transport industry would indefinitely boost their profitability.
  • 7. TABLE OF CONTENTS 1. Introduction ......................................................................................................................................10 1.0 Background to the study ........................................................................................................10 1.0.1 Origin of Mass Transport in Lagos state ....................................................................11 1.1 Statement of the problem ......................................................................................................12 1.2 Objective of the study ............................................................................................................13 1.3 Relevant research questions .................................................................................................14 1.4 Statement of hypothesis ........................................................................................................14 1.5 Significance of the study .........................................................................................................15 1.6 Scope of the study ..................................................................................................................16 1.7 Limitations of the study ..........................................................................................................16 1.8 Definition of terms ..................................................................................................................17 2. Literature Review ............................................................................................................................18 2.0 Introduction ............................................................................................................................18 2.1 Historical background of the Lagos Danfo service .................................................................19 2.2 Impact of Quality Management ............................................................................................20 2.2.1 Quality Management and Organization of the Transport industry..........................23 2.2.2 Quality Management and Training of personnel ......................................................24 2.2.3 Quality Management and Procurement and Financing ............................................25 2.2.4 Quality Management and Unions..............................................................................26 2.2.5 Quality Management and Maintenance....................................................................26 2.2.6 Quality Management and Customer Satisfaction .....................................................27 2.3 Quality framework for mass transport ..................................................................................28 2.3.1 Availability .................................................................................................................30 2.3.2 Accessibility.................................................................................................................30 2.3.3 Affordability................................................................................................................31 2.3.4 Information.................................................................................................................31 2.3.5 Time.............................................................................................................................32 2.3.6 Customer care.............................................................................................................32 2.3.7 Comfort .......................................................................................................................33 2.3.8 Security .......................................................................................................................33
  • 8. 2.3.9 Environment ...............................................................................................................34 2.4 Profits ......................................................................................................................................34 2.5 Summary .................................................................................................................................36 3. Theoretical Framework and Research Methodology ..............................................................37 3.1 Theoretical framework ...........................................................................................................37 3.2 Research design strategy ........................................................................................................39 3.3 Sources of data ........................................................................................................................39 3.3.1 Primary data ...............................................................................................................40 3.3.2 Secondary data ...........................................................................................................41 3.4 Research instruments .............................................................................................................41 3.5 Research population ..............................................................................................................42 3.5.1 Determination of sample size ....................................................................................42 3.6 Restatement of research questions ......................................................................................43 3.6.1 Restatement of hypothesis ........................................................................................43 3.7 Conduction of the field work ..................................................................................................44 3.5 Limitation of methodology ....................................................................................................44 4. Data Presentation and Analysis ....................................................................................................46 4.0 Introduction ...........................................................................................................................46 4.1 Presentation of Data ...............................................................................................................46 4.1.1 Response rate by location..........................................................................................46 4.1.2 Response rate by Age category..................................................................................47 4.1.3 Response rate by Sex of Respondent.........................................................................47 4.1.4 Years of experience ....................................................................................................48 4.1.5 Highest educational qualification attained ...............................................................48 4.1.6 Do you own a Danfo ...................................................................................................49 4.1.7 Source of Financing ....................................................................................................50 4.1.8 How many days of the week do you work ................................................................50 4.1.9 How long do you work every day...............................................................................51 4.1.11 What is your busiest time of the day ........................................................................52 4.1.12 What do passengers usually demand for...................................................................53 4.1.13 Do you have a specific conductor ..............................................................................53
  • 9. 4.1.14 How long have you been with this conductor...........................................................54 4.1.15 How much fuel do you buy everyday ........................................................................55 4.1.16 How much do you make every day after expenses...................................................55 4.1.17 Would you accept a loan to expand your danfo business ........................................56 4.1.18 How often do you do maintenance ...........................................................................57 4.1.19 On average how much do you spend on the maintenance of the bus.....................57 4.1.20 Which union do you belong to...................................................................................58 4.1.21 Who gives you the most worry ..................................................................................59 4.1.22 How often have you been harassed by the Police/Lastma/VIO...............................59 4.1.23 How much do you have to pay to the police to let you go .......................................60 4.1.24 How much do you have to pay to Lastma/VIO to let you go....................................61 4.2 Test for Hypothesis .................................................................................................................62 5. Summary Conclusion and Recommendation ............................................................................64 5.0 Summary of Findings .............................................................................................................64 5.0.1 Operational Problems.................................................................................................64 5.0.2 Fragmentation of the industry...................................................................................64 5.0.3 Literacy Level ..............................................................................................................64 5.0.4 Union Activities...........................................................................................................64 5.0.5 Activities of Police/Lastma/VIO .................................................................................64 5.1 Conclusion ..............................................................................................................................65 5.2 Recommendations .................................................................................................................65 6. Appendix ............................................................................................................................................67 6.1 Questionnaire Form ...............................................................................................................67 6.1.1 Part A: Bio-Data ..........................................................................................................67 6.1.2 Part B: Work specific...................................................................................................68 6.1.3 Part C: Industry specific..............................................................................................69 6.1.4 Part D: Person specific................................................................................................71 7. References ..........................................................................................................................................72
  • 10. CHAPTER ONE INTRODUCTION 1.0 Background to the study Of all the modes of transportation in Nigeria, road transportation handles the largest volume of traffic in terms of users, weight and distance covered. Despite the importance of this, very little research has been done on the impact of quality management in the road transport industry. Presently in Lagos state, there is no effective organised mass transportation business as it is in other developed cities like Hong Kong, London and New York to cater for the transportation needs of the state. The management of this industry has been left at the hands of the uneducated and the industry’s ownership structure is too fragmented. Various unions, Nigerian Union of Road Transport Workers (NURTW), Nigerian Association of Road Transport Owners (NARTO), and Road Transport Employers Association of Nigeria (RTEAN) have sprang up to arrest these decay, but they too are plagued by the same evils – low level of education, low quality management and political infighting. The government has set up numerous regulatory agencies – Federal Road Safety Corps (FRSC), Lagos State Transport Management Authority (LASTMA) and Kick Against Indiscipline (KAI) – but these agencies stifle the industry’s profitability as they seek to generate revenue for the government. According to Rose (2005), Quality Management aims to ensure that an organization or product is consistent. According to Peter and Waterman (1982), quality management focuses on service quality and the means to achieve it. The objective of quality management is to deliver consistent customer satisfaction by allocating resources in an effective and efficient manner in order to realise optimal profit. Quality management has its root in Japan in the 1950s, when with the help of Shewhart, Deming and Juran, amongst others the Japanese
  • 11. government sought to increase the demand for its good by creating superior and consistent quality products. There are three (3) basic management styles in the Lagos mass transport industry – The ‘Individual Ownership structure’ were a danfo driver owns and operate his own bus; The ‘Quasi-corporate structure’ were an Individual owns a fleet of about four (4) buses, sub- leases them to different drivers who pay him a daily rent but the driver takes care of fuelling but not the maintenance of the vehicle; and The ‘Corporate structure’ were a company owns, maintains and operates its own buses while the bus drivers are just staffs of the transport company. The Individual Ownership style is predominant in Lagos resulting in a haphazard, un-patterned and non-effective mass transport industry. In business, profit can be considered to be the difference between the revenue and the costs of bringing to market whatever it is that is accounted as an enterprise. In this context, profitability is the difference between the revenue and the cost incurred in delivering the transport service. Profitability is a very elusive term to define. The transporters could measure it in terms of Gross profit, Net profit, Return on Assets, Return on Investments, Market share increases, revenue increase, and more. This research focuses on how quality management can help mass transport operators maximise profit, i.e., operate at the point where the difference between the total revenue and total cost is at its greatest (Lipsey, 1975). 1.0.1 Origin of Mass Transport in Lagos state The history of publicly owned mass transport service within the Lagos Metropolitan Area has been a very chequered one. With the take-over of the former Zarpas Bus Service by the Lagos State Transport Corporation (LSTC) in the 1970s, total annual passengers carried by the Corporation fluctuated from 90 million in 1978 to 53 million in 1983, 76 million in 1989
  • 12. and less than 60 million in 1992 (The Guardian, 1994). Consequent upon the riots following on the initiation of the structural adjustment programme in 1989, the Federal Government introduced the Mass Transit Scheme. Under the scheme, buses were distributed to states, including Lagos, to assist in both intra-urban and interstate transportation. The Lagos State Government itself in 1991 bought some 90 buses and leased these to private operators to help ease the acute transportation problem. Other bus operations were sponsored by local governments within the metropolitan areas but the capacity they provided hardly equalled more than half of that provided by the LSTC. However, given the general inefficiency and corruption with which the LSTC operated, resulting in frequent breakdown of its buses, the Corporation was dissolved in 1993 and its staff laid off. Molues and danfos which are privately owned mass transit buses won the battle to transport Lagosians en-masse. 1.1 Statement of the problem First, the operational problem will be considered – the danfo drivers’ fragmented management pattern were different individual drivers own, operate and maintain their own buses. Instead of one were a company owns a fleet of buses, maintains it, while the drivers are just staffs of the company. Thus, the present informal and fragmented management style doesn’t allow them to enjoy economies of scale. Secondly, most of the danfo drivers are illiterates barely finishing primary schools. Though they might be smart at collecting their transport fares, their literacy level hinders effective level of communication with their customers. Because of this, they hardly deliver qualitative services. Another consequence of their low literacy level is the overheads they carry. The Danfo drivers engage in unproductive activities like drinking, sleeping around, and partying. All these unnecessary overheads reduce their profitability.
  • 13. Another problem that they face is that of Agbero’s (touts) who collect tolls from the danfo’s at strategic locations. Collecting these tolls hampers the speedy movement of theses buses and drivers who protest payment have one or two parts of their danfo’s forcefully removed. The danfo driver thus incurs an unnecessary and greater cost to replace the damaged part. Not having a standard price per journey like the BRT system causes too much delay as passengers would have to constantly keep haggling over transport fares every time he or she boards a danfo. This haggling leads to time wastage and high customer dissatisfaction. Finally, the general problem of bad roads, non-availability of spare parts, government regulation and so on would be given little attention in this research. Even though their effects are wide spread, the danfo driver has very little control over them and their effect on the danfo drivers’ short term profitability is very limited. 1.2 Objective of the study The primary purpose of this study is to examine the impact of quality management on the profitability of the Nigerian road transport industry. This will help to create a formal study in the chosen area thereby improving the quality of service rendered by road transporters. The objectives of the study are therefore itemised as: 1) Develop a management model that will be useful, understandable and applicable by the danfo drivers. 2) Measure the profitability level of each individual danfo. 3) Properly motivate drivers and conductors to deliver superior services to customers (passengers).
  • 14. 4) Harmonize Union and regulatory agencies activities to work optimally so that profitability is increased. 5) Improve customer satisfaction through superior service delivery. 1.3 Relevant research questions This project would take both a participatory and questionnaire approach. Participatory in the sense that for one (1) month I will have to immerse myself with the danfo drivers – their ways of life, typical business day, their unions and its activities in order to give this project depth, content and relevance to their various needs. The relevant research questions would include:  How is the present profitability level of each individual danfo measured?  How can the driver and conductors be motivated to deliver superior services to their passengers (customers)?  How can Unions and other regulatory agencies be harmonised for optimal performance and for increased profitability of the danfo drivers?  How can customer satisfaction be improved and superior services delivered? 1.4 Statement of hypothesis The following hypothesis will be raised in an effort to develop the finding about the variables that relates. : There is no correlation between how regular maintenance is done on the vehicle and the profit of the drivers.
  • 15. There is correlation between how regular maintenance is done on the vehicle and the profit of the drivers. HB0: There is no correlation between the amount spent on maintenance and the profit of the drivers. HB1: There is correlation between the amount spent on maintenance and the profit of the drivers. 1.5 Significance of the study This study is relevant because it seeks to provide quality management strategy guidelines and implementation procedures that would lead to the attainment of optimal profitability within the danfo industry. This study would also serve as a verifiable source of information for High Net-worth Investors (HNIs), business organisations and the government on how they can profitably channel their investments into the mass transportation industry. Finally, the major beneficiary of an efficient and effective transport system is the economy. The economy benefits in the form of increased access to opportunities for achievement, employment, goods and services; reduced cost of doing business; economic expansion; efficient allocation of scarce resources; higher profitability; increased service delivery and many more. The economy is just a broader term for the Customers (users of the transport services), producers (providers of the transport services) and the ever present Government (regulators of the services).
  • 16. 1.6 Scope of the study The scope of this study is within Nigerian and Lagos state in particular as a case study, though references would be made to other parts of the world. My research is purely based on the Lagos danfo drivers in Ikorodu, Ikeja, Yaba, Oshodi and Obalende. My aim is to verify the impact of quality management on their profitability and how we can maximise this. To gather a qualitative sample, I intend having from my respondents at least 5 officials from FRSC, 5 officials from LASTMA, 5 officials from LAMATA, 5 officials of The Nigerian Police Force, 10 danfo drivers, 10 conductors and 50 danfo passengers from each of the major transportation hubs of Ikeja, Ikorodu, Obalende, Oshodi and Yaba. This will generate a total respondent size of 450. With this diverse range of respondents, this research would serve its purpose of determining the quality management approach that will increase danfo driver’s profitability. 1.7 Limitations of the study Much as I would want this project to be hitch free, various problems are expected to rear their heads. First would be limited finances which are expected to constrain my visitation and participation in this research, but with the limited finances, I will conduct and in-depth research that would more than suffice. Time could be another limitation. I intend overcoming this by doing a large part of this project during the first semester break and sacrificing some of my ‘friend time’. Another limitation expected would be the ridicule provided by friends and family. The self-belief that nothing good comes easy would keep my spirit strong.
  • 17. The fact that the industry is heavily fragmented would make my research clumsy and difficult. I intend interviewing a fair and qualitative sample of the major players in this industry from the drivers, conductors, regulators and passengers. I also intend immersing myself in their activities for at least a month. Finally, the low literacy level of my respondents and their attendant fears could limit my research. This I intend overcoming by learning their predominant Yoruba language and communicating with them in Pidgin English. 1.8 Definition of terms Agbero’s: Any member of either of NURTW, RTEAN or NARTO that doesn’t own or operate a danfo but instead stays at either the motor parks or bus-stops to collect tolls from the danfo drivers. BRT: Bus Rapid Transit. A transport option, which relies on the use of dedicated ‘interference’ free segregated lanes to guarantee fast and reliable bus travel. Conductor: One who assist the danfo drivers in operating their danfo’s by calling passengers to enter into the danfo, collecting passenger transport fares, brings to the drivers notice whenever a passenger has reached his/her destination, pays any tolls or charges incurred by the danfo and performs other activities for the smooth running of the danfo. Danfo: A shared mini-bus transport service with a capacity of fourteen (14) passengers that commutes passengers across the Lagos metropolis. Danfo drivers: Anyone who drives a danfo across the Lagos metropolis.
  • 18. FRSC: Federal Road Safety Corps. A federal government transport regulator mandated to ensure that safety on the road is strictly adhered to and to address any safety concern. LAMATA: Lagos Metropolitan Area Transport Agency. The Lagos state government owned transport operator providing shared passenger transport services through BRT, and the proposed light rail project. LASTMA: Lagos State Transport Management Authority. A Lagos state government transport regulator mandated to ensure that safety on the road is strictly adhered to and to address any safety concern. Molues: An older version of the shared bus services popular in Lagos in the 80’s with a capacity of 48 sitting and 50 standing passengers. NARTO: National Association of Road Transport Owners. An association for the owners of commercial transport owners. NURTW: Nigerian Union of Road Transport Workers. The largest umbrella body for owners of danfo, danfo drivers and conductors in Nigeria that aims to solve issues affecting the industry. Passengers: Customers and users of the shared bus transport services. Quality management: An efficient model of operating the danfos with the customer as the focus point in order to optimise safety, comfort and profit. RTEAN: Road Transport Employers Association of Nigeria. An association for owners and employers of danfos. VIO: Vehicle Inspection Office. An organ of the Lagos state government that regulates the activities of public transport in Lagos.
  • 19. CHAPTER TWO LITERATURE REVIEW 2.0 Introduction This chapter will outline past studies related to the topic. The researcher will be able to highlight the impact of quality management on the profitability of the Nigerian mass road transport industry. Also, the empirical literature and theoretical framework will be defined to suit the purpose of the research work. 2.1 Historical background of the Lagos Danfo service. The history of publicly owned mass transport service within the Lagos Metropolitan Area has been a very chequered one. With the take-over of the former Zarpas Bus Service by the Lagos State Transport Corporation (LSTC) in the 1970s, total annual passengers carried by the Corporation fluctuated from 90 million in 1978 to 53 million in 1983, 76 million in 1989 and less than 60 million in 1992 (Oni, Okanlawon and Asenime, 2006). Consequent upon the riots following the initiation of the Structural Adjustment Programme in 1989, the Federal Government introduced the Mass Transit Scheme. Under the scheme, buses were distributed to states, including Lagos, to assist in both intra-urban and interstate transportation. The Lagos State Government itself in 1991 bought some 90 buses and leased these to private operators to help ease the acute transportation problem. Other bus operations were sponsored by local governments within the metropolitan areas but the capacity they provided hardly equalled more than half of that provided by the LSTC. However, given the general inefficiency and corruption with which the LSTC operated, resulting in frequent breakdown of its buses, the Corporation was dissolved in 1993 and its staff laid off. Molues and danfos which are privately owned mass transit buses won the battle to transport Lagosians en-masse.
  • 20. While it is true that transport management has been a sadly neglected subject in the past, the matter has now taken a turn in the eyes of the Lagos state government. The government has realised that in order to achieve its megacity status, it must have a qualitatively managed transport system. Lately, it has introduced the BRT service, Mega-city Ferry service, Cab service and the proposed Light rail service to the commercial transport industry to increase the transportation options available to Lagosians. 2.2 Impact of Quality Management The concern for quality has a long and rich history, extending back to artisans and craftsmen, when master tradesmen inspected the work of apprentices to ensure quality craftsmanship. The introduction of mass production at the beginning of the 20th century was the dawn of a new age. The high numbers of poorly made and non-interchangeable parts, breakdowns, and loss of sales because of unreliable products forced companies to make improvements. Initially, quality management was a manufacturing concept intended to ship non-defective products. It was the viewpoint of G.S. Radford that inspectors should examine, weigh, and measure each item prior to its leaving the factory. Inspection, measurement, and statistical analysis were the early foundations of quality control. Mistakes were not necessarily prevented, but they were not shipped. Inspection became an industrial safety net. Quality management advanced, largely, through the writings and teachings of so-called Quality Pioneers or TQM gurus. The pioneers focused on quantitative techniques and methods to control the quality of manufactured products. From its beginnings at Bell Laboratories, TQM evolved and developed while the most renowned pioneers created and promoted the philosophy. Five of the more notable proponents and leaders of TQM are
  • 21. Williams Edward Deming, Joseph Juran, Kaoru Ishikawa, Armand Feigenbaum, and Philip B. Crosby. While various experts differ with each other in specific areas, a review of TQM principles espoused by experts identified the following areas of general agreement:  TQM is a fundamental change in how most enterprises manage their business. The change is difficult and takes time.  Management must lead the total quality initiative.  All employees must be involved in total quality management.  Continuous quality improvement is a business imperative.  Quality control and improvement apply throughout the organization.  Ongoing education and training are essential for all employees.  Quality requires an environment of teamwork, respect for the individual, trust, and professional growth.  Quality has a double benefit. It increases customer satisfaction and revenue by improving the quality of products and services; it reduces costs by improving the quality of processes. Quality management is an organisation-wide approach to understanding precisely what customers need and consistently delivering accurate solutions within budget, on time and with the minimum loss to society (Chartered Quality Institute, 2012). Quality management refers to all activities of the overall management function that determine the quality policy, objectives and responsibilities, and implement them by means such as quality planning, quality control, quality assurance and quality improvement within the quality system (ISO 8402). The ultimate objective of quality management is to deliver consistent customer satisfaction by allocating resources in an effective and efficient manner in order to realise
  • 22. optimal profit (Rose and Kenneth, 2005). To deliver consistent superior services in the danfo industry, all functions involved in the service delivery need to contribute their own quota – from the organisation of the danfo industry, to the capacity of personnel available, to the financing options available for vehicle procurement, to the Unions that represent the industry and down to the maintenance culture in the industry. All these factors have an influence on the quality of management and thus overall profitability that can be generated by the Nigerian mass road transport industry. Quality management in the transport service has now taken a new turn. Everything is now being done to enforce this standard in the transport industry, to the point that an entirely new faculty – School of Transport, at the Lagos State University has been created to meet the manpower needs of the transportation industry in Lagos State. Quality management in the mass transport industry is not different form its counterparts in other industries. The role of quality management in the Nigerian road transport industry is to promote comfortable and flexible interaction through accessibility between places and people and therefore aid the economic development of Nigeria. It is widely acknowledged that transport has a crucial role to play in economic development (Curt Carnemark, Jamie Biderman and David Bovet, 1976). Thus transportation is a connector that aids the economic advancement of any given nation. This is more evident when one looks at the 2011 budget, which allocates N 55,954,636,803 to the Ministry of Transport (Nigeria Bureau of Statistics, 2011). But the transport industry can only play a leading role when the industry is effectively managed – in terms of organisation, personnel, financial resources, regulation, etc. The success of the Asian tigers has been hinged on the investment made by their respective countries. Weisbrod and Reno (2009) explains that for every $1 dollar invested in mass transport industry, $4 is generated in economic growth. In 2000, Zeithaml Valerie conducted a research to prove the existence of a
  • 23. positive correlation between the aggregate profitability generated by an industry and the quality of management present in that industry. 2.2.1 Quality management and Organisation of the transport industry. For any big business like the transportation industry to achieve a high level of profitability, there needs to be a well-structured organisation set-up to manage its operations. Take the Nigeria banking industry circa 2004, there were 89 banks each controlling a small but significant market share of the industry (Central Bank of Nigeria Financial Publication, 2004). Prior to 2004, none of the banks had ever made a profit in excess of $100m in any given financial year, but they still thrived. Just three years after the consolidation, in 2008, five of them (First Bank, UBA, Zenith, Union and Intercontinental Bank) made profit in excess of $100m. The rationale was that a number of banks were made to consolidate and merge their operations. The Lagos danfo service can also be induced to consolidate. Consolidation allows an industry to earn a higher profit, to increase revenue and achieve low cost. With twenty (20) danfos being the minimum number of fleet one must have before one is given the licence to operate a mass transport service in Lagos. The owners of these fleets would have to employ managers, drivers, mechanics, and support staff to boost the efficiency of their danfo venture. As they compete to boost their profitability, they would deliver consistent customer satisfaction and thus entrench the principles of quality management in the Nigerian mass transport industry. Heskett (1994) developed the service profit chain which hypothesizes that: “Customer satisfaction --> Customer loyalty --> Profitability” His findings support the theory that customer satisfaction is related to customer loyalty, which in turn is related to profitability (Heskett et al., 1994).
  • 24. 2.2.2 Quality Management and Training of personnel In 2001, the French Ministry of Transportation (CERTU) in collaboration with the Obasanjo regime conducted a research and concluded that one of the most undeveloped skills in the Nigerian Urban Passenger Transport sector is the Human Resource factor. The average educational attainment of a danfo driver is JSS3 or Basic 9, this could be far worse in some Local governments. Most drivers aren’t fluent in English, resorting to their native Yoruba language or the street “Pidgin English”. Because of this, many passengers find it difficult communicating with the danfo drivers, thus customer satisfaction becomes terribly low. Heskett et al (1994) has shown a positive correlation between customer satisfaction and profit margins of businesses. With increased training of personnel, the mass transport industry would become more professional. Chartered Institutes could even develop around the transportation industry. With this, passengers would be able to measure the level of safety and quality of service they would get on boarding a bus. Take the Chartered Institute of Personnel Management (CIPM) as a reference point, everyone knows that a Fellow of the Institute (FCIPM) is expected to deliver superior service when compared to what an Associate (ACIPM) would, an Associate of the Institute is expected to still deliver superior service compared to an ordinary Member of the Institute (MCIPM). Increase in professionalism would serve as a measure of service delivery and is usually a basis for service differentiation in order to charge premium prices. It is also very important to train the drivers of the danfo on basic mechanic functions, safety, customer relations and other relevant operational skills regularly, to increase the operating lifespan of the danfos’ and increase the safety of passengers. If you train the driver, you have changed his habit and response to situations. The Lagos State government has set up Drivers’
  • 25. Institute (Lagos State Drivers’ Institute) with centers each in five selected districts of the state i.e. Ikorodu, Badagry, Ikeja, Lagos and Epe with the aim of:  retraining of all professional drivers in the State  Standardizing the driving profession in the State.  registering and creating a database for all professional drivers in the State 2.2.3 Quality management and Procurement and Financing Virtually all vehicles used for the danfo service are self-purchased and procured second-hand. The drivers who can’t afford the initial start-up cost of a danfo lease from an “Oga” who has more than one danfo. Volkswagen Varagon - adjusted with some fittings, is the most preferred vehicle brand for danfo because of its engine ruggedity, passenger carrying capacity (it can seat up to 13 passengers) and ease of manoeuvrability. The initial start-up cost for a Second-hand Volkswagen 1993 Varagon model is N700,000, inclusive of taxes and registration fees. Financing options by the commercial banks is very limited to the danfo industry, mainly because of the fragmented nature of the industry and as such danfo drivers are force to depend on their personal savings, family savings, friend’s loans, and Sherlock moneylenders. The Microfinance banks that consider lending to this industry, charge 6% interest rate per month on a reducing balance (Moses-Ashike , 2012). Empirical research supports entrepreneurs’ views and indicates that lack of finance is negatively correlated with SME firm growth (Ayyagari and Demirgüç-Kunt, 2007). The Lagos danfo industry emphasises his research. Commercial banks are more willing to lend to industries with minimal risk exposure. Cheap external financing is one of the foundations on which quality management is built. To deliver consistent superior services, organisations must have access to adequate financial resources.
  • 26. 2.2.4 Quality management and Unions NARTO, NURTW and RTEAN are the major unions representing the danfo industries. These unions are basically employee unions. Employee unions, in this context, are trade unions which are more concerned with the welfare of their members rather than the maximisation of industry gains. NARTO, NURTW and RTEAN liaise with governments (Federal and State) on how to improve the well-fare conditions of their members. While they represent the interest of their members, the danfo drivers are given autonomy on the affairs concerning their buses. These unions need to be strengthened to enable them enforce the minimum level of quality obtainable in the industry. In New York, with its fragmented yellow-taxi service, the largest Cab union - the New York Taxi Workers Alliance (NYTWA) numbering over 11,000 members and the Taxi and Limousine Commission (TLC), has a set quality of standard for operation – vehicle type to be used as taxi, fare rate, and passenger carrying capacity. With these passengers are assured of the quality of service obtainable and thus patronize the yellow-taxi instead of other competing mass transport service. NARTO, NURTW and RTEAN could take their cue from the New York Taxi Workers Alliance (NYTWA) and the Taxi and Limousine Commission (TLC) of New York City. 2.2.5 Quality management and Maintenance To attain optimal profit, danfos need to have a life span long enough to generate sufficient revenue at minimal cost. Oni (2004) has proved that a Second-hand vehicle has a useful life span of five (5) years if taken regularly for tune-ups at a well-qualified mechanic and just three (3) years if not. The average danfo driver doesn’t ever visit the mechanic for routine maintenance, only visiting when his vehicle develops a visible fault. Because of this poor
  • 27. maintenance culture, the danfo driver loses up to two (2) years of potential profits from his danfo. Auto maintenance is the process of inspecting or testing the condition of car subsystems (e.g., engine) and servicing or replacing parts and fluids. Regular maintenance is critical to ensure the safety, reliability, drivability, comfort and longevity of a car. During preventive maintenance, a number of parts are replaced to avoid major damage or for safety reasons, e.g. timing belt replacement. Regular maintenance involves checking to see if the engine oil is sufficient, the wheels are properly aligned, the air pressure in the tyres are right, the vehicle isn’t making any unusual sound, the spark plugs are in proper working conditions, etc. Regular maintenance is visiting a qualified mechanic and not the ordinary mechanic we see on the road side. Though it costs money to visit a qualified mechanic, the extended lifespan more than compensates for the cost. 2.2.6 Quality management and Customer Satisfaction The central focus of quality management is consistent superior customer satisfaction. To deliver this in the mass transport industry, the following dimensions must be given important attention – the responsiveness of the transport service to passenger’s needs, the reliability of the transport service in terms of availability, the accuracy of service delivery, the knowledge of operators of the transport service, the courtesy displayed to the customers, the consistency of service delivery and the speed at which this service is delivered. Consistent superior customer satisfaction begins by identifying customer expectations for all key "moments of truth" - the critical interactions customers have with the transport service. The best way to understand customer expectations is to listen to customers using qualitative research techniques. After identifying expectations, customer satisfaction can readily be measured. Measuring passenger satisfaction requires the passenger to answer specific
  • 28. questions about how he or she feels about the transport service's performance. This is why it is so important to capture their interest and build the credibility needed to gain their cooperation. The task is made considerably easier by speaking the customer's language and presenting only issues that are truly significant. Customers define quality by judging them in relation to competitors. The best performing organizations allow customer expectations to drive their quality initiative. Once a mass transport operator measures itself in relation to its competitors (benchmarking), it would be able to quickly capitalize on their emerging strengths and address weaknesses before they become problems. In fact, the whole success of a customer-orientated business is people (Vincent, 2001) 2.3 Quality framework for mass transport The European Commission in 1999 under the 4th framework for Research, Technological Development and Demonstration funded an extensive research that developed a quality matrix – QUATTRO, which offers a comprehensive framework for analysing both functional and technical quality determinants in mass transport. The table below is an adapted version. Quality 1. Availability 1.1 Network 1.2 Timetable 2. Accessibility 2.1 External Interference 2.2 Internal interference 2.3 Ticketing
  • 29. 3. Affordability 3.1 Fare levels 3.2 Socially desirable services (concession fares). 4. Information 4.1 General Information 4.2 Travel Information in normal conditions 4.3 Travel Information in abnormal conditions 5. Time 5.1 Length of travel time 5.2 Punctuality and reliability 6. Customer care 6.1 Commitment 6.2 Customer Interference 6.3 Staff 6.4 Physical assistance 6.5 Ticketing options 7. Comfort 7.1 Ambient conditions 7.2 Facilities 7.3 Ergonomics 7.4 Ride comfort 8. Security 8.1 Safety from crime 8.2 Safety from accident 8.3 Perception of security 9. Environment 9.1 Pollution 9.2 Natural resources 9.3 Infrastructure
  • 30. 2.3.1 Availability Public transport users want to be certain that the transport service would be at hand whenever they need the service. They don’t want to get to the bus-stop and have to queue long hours before they use the service. The average danfo user can wait at the bus-stop for an average of ten (10) minutes before his/her patience runs thin. Making the mass transport service available round the clock should be what the transport service providers should aspire to. As once the customer is certain that the service would always be available, he increases his patronage as he sees the service as reliable. The average danfo driver operates from 5:30am to 10:00pm on a single shift, while the BRT service operates two shifts of 6:00am to 2:00pm and 2:00pm to 10:00pm. Between 10:00pm and 5:30am, transport service demand becomes negligible. The traffic jams during peak periods and rainy season disrupts the availability of mass transport and as such passengers resort to alternative means of transport – Okada, train and by foot. For the young and elderly, mass transport is often the only motorised transport option available to them. 2.3.2 Accessibility This refers to the ease or convenience of getting a transport service. This also refers to the convenience with which people with special requirements (physically disabled) can get on the transport service. Virtually all danfos in Lagos state aren’t designed to accommodate people with special requirement and as such these people are discouraged from using the danfo service. In Lagos, there are over 200,000 disabled people and thus this potential market becomes untapped. It also involves the ease with which the mass transport can access passengers transport routes. Can the danfos access the periphery of Lagos and how terrain serves as a constraint of choosing a public transport services? To achieve this, the government has to construct motorable roads to improve accessibility.
  • 31. 2.3.3 Affordability The cost of using the mass transportation service must be so minimal in the transport users’ eyes, but sufficient enough for the transport operator to cover the costs of delivering the transport service plus a profit margin adequate to encourage further investment. Also the transport fares should be charged in readily available denominations (N20, N50, or N100) to allow for ease of payment. E – payment channels could also be implemented, especially for frequent riders. This would be done through customer loyalty programs that encourage customers to stick to a particular brand, rather than hover across different service providers. 2.3.4 Information Information they say is power. Passengers need to have complete information of the vehicle before they embark on a journey. On getting to the bus-stop they want to know what time is the next bus coming, how many seats are available, how much is the transport fare going to cost, route to be plied, what is the status of the driver – drunk or not, etc. Simply put, they want to be provided with real time information of the status of their journey. During unusual situations like emergencies, they want to be aware of the emergency procedures, the nearest emergency exit, the insurance cover taken, and much more. Danfo drivers hardly ever care about the importance of making information available to the passengers. In fact, the only information they will provide for you is that which displays their destination. Worst of all during emergencies, passengers are left at their own mercy as most of the danfos don’t have a pre-planned emergency response procedure. Because of the dearth of information and poor service delivered, frequent passengers of the danfo service are school children, youths, women, and the poor primarily because they are helpless and can’t afford a private car. The middle class who own a car rarely ever patronize the danfo services.
  • 32. 2.3.5 Time As one considers embarking on a journey, one of what comes to mind is the issue of time – what is the length of the journey, will the vehicle arrive on time, how much of the travel time would be taken by traffic jam, etc. Passengers need to be certain that if they board a danfo from Yaba that they would be in CMS in exactly 15minutes; nothing more, nothing less. Because of the numerous stops for touts, police officers, traffic jams, etc the length of the journey by a danfo is hardly ever certain. Some danfo drivers have been able to minimise the effect of traffic jams by plying the opposite lane or manoeuvring through residential streets. This at most times puts them in the nets of LAMATA and against the law. The BRT is the only service that its time of travel is predictable. The longest time interval before a BRT bus arrives at a bus-stop is 10minutes. The segregated lane for BRTs has made BRT rarely affected by traffic jams and thus a Yaba-CMS journey by BRT is just 15minutes. 2.3.6 Customer care The focal point of every customer oriented business is the customer. Customers need to be treated with care from the moment they decide on the bus they want to board till they finally alight the bus. Some schools of thought believe that customer care extends even after he alights – this is a welcome development. The danfo driver and his conductor need to show the passengers how committed they are to ensure that the passengers get to their destination on time and safely. Anytime they come in contact with a (potential) passenger, they need to inspire safety and reliability, while giving the passengers the reassurances that they are in the safest hands possible. They should also provide special assistance to the elderly, school children and pregnant and nursing mothers. The underlying premise in a customer oriented business is that customer satisfaction should be the only objective of a business and profits can only be generated from a satisfied customer. Because of the danfo driver’s educational
  • 33. background, they believe that their major objective is to maximise transport fares, even at the expense of customer satisfaction, as passengers will always come. 2.3.7 Comfort This refers to how relaxing one feels in a public transport service. It includes the passengers comfort in terms of leg room, upholstery of the chairs, luggage space, fresh air flow, ambience and much more. Passengers want to enter a public transport and feel like they are in the back seat of their car and not fishes parked in a Sardine can. The Volkswagen Type 2 (T3) – typically used for danfo in Lagos, was designed to carry goods and not passengers. And as such doesn’t have any sitting arrangement besides the driver’s row. It is when the vehicle lands in Apapa that it gets fitted with wooden chairs, usually covered in two (2) cm of foam, making comfort in a danfo bus poor. The only comfortable place is the driver’s row where you have two (2) or three (3) passengers as against the average four (4) passengers on the other rows. 2.3.8 Security Anytime a passenger boards a mass transport, three main security issues comes to mind – safety from crime, safety from accident and one’s perception of security. Safety from crime refers to how secure is one and one’s belongings from pick pocketing, theft, being mugged and armed robbery on entering the danfo. Safety form accident refers to the how certain that he would arrive at his destination unharmed and in the event of an accident, the speed at which medical personnel would attend to him. The perception of security refers to his subjective feeling of his security in the public transport. Empirical research has discovered that besides accessibility, security is a major concern on passengers mind in deciding to use a public transport. Regardless of their drinking habits, danfo drivers are the safest means of
  • 34. travel from ghastly motor accidents, but their records with regards to safety from crime is abysmal. 2.3.9 Environment This measures the impact of the danfo and their activities on our environment. How much they contribute to global warming, noise pollution, breaking of law and order how they damage our roads. Public transport cuts down our per capita carbon footprint, but this savings could be reversed especially when the danfo used is rickety. The danfos incessant honking causes a lot of noise pollution. The danfo drivers in Lagos are known to be the most reckless in the world with regards to their constant and utter disregard for traffic rules and regulation. 2.4 Profits Measuring customer retention, relates directly to the bottom line. Long term customers spend more, refer new clients and are less costly to do business with. Ironically, past customers present every company with an opportunity. They can tell the organization exactly what parts of the business to fix in order to reduce the number of customers at risk. This improves customer retention and, subsequently, profitability. An average organization loses about 15% of its customers every year. But if this can be reduced to 10%, bottom line profits improve 35% to 85% (Heskett, 1994). Finding out why customers leave can often be difficult since the majority of unhappy customers don't complain, they simply quit. Exit interviews solve this problem. Concern for performance and interest in customers are not new to the public transportation industry. As the operators of private businesses and later public services, public transportation
  • 35. managers have sought to maximize ridership and revenues by providing clean, safe, and reliable service, while carefully managing costs. Figure 1 The willingness to pay circle. Source QUATTRO The figure above is “The willingness to pay circle” developed by Quattro. This figure explains how with improved quality management performance, the firm can deliver better service at a premium. Because of the better quality of service delivered, new customers would be gotten and some old customers would be lost. The underlying premise is to make the net gain of customers positive. Because of the transports company’s improved financial capacity, he would be able to deliver more improved services. This cycle continues on and on as service in the transport industry improves. Better service quality Higher effectiveness of service Higher willingness to pay Higher fares Higher revenues Increased financial capacity to improve service quality. Performance of Quality management New Customers Lost customers
  • 36. Summary A review of the history of the mass transport industry shows that it is predominantly dominated by the danfos. They have their history dating back to the seventies and are characterised by their disorderliness, poor organisation, illiteracy, low maintenance culture, poor quality of service delivery. While the Bus Rapid Transit (BRT) was designed to solve the excesses of these danfos, the danfos still have a strangle hold of the Lagos mass transport industry. We use the Quattro model to explain how we can implement quality management in the transport industry. We start by explaining the nine (9) quality matrix as they form the building blocks to implement the quality management in the transport industry. Quattro also provides us with the willingness to pay circle. The willingness to pay circle describes how with improved quality of service delivered, the transport firm can maximise its profits.
  • 37. CHAPTER 3 THEORECTICAL FRAMEWORK AND RESEARCH METHODOLOGY This chapter introduces the general method by which the data used in this research was gathered and also analyses the way the research instruments were developed. Each section provides an insight into the methodology adopted in the collection, analysis and interpretation of the data collated for the study. It attempts to provide a detailed analysis of the research plan and tools utilized in the actualization of this study. 3.1 Theoretical framework Quality management is a management approach to increase the efficiency and effectiveness of an organization. Quality management is not an easily visible management approach. But an increase in long term profitability is just one of the signs of the positive impacts of quality management. This change could be positive or negative depending on the Human and financial resources and implementation procedures. Therefore, it is important to understand the channel through which quality management approach influences the organizations long-term profit as well as the time it takes for this approach to have industry wide impact. The basic theoretical framework for analyzing the success or failure of the quality management approach is the Year-on-Year change in the Net profit levels over a period of three (3) years. The mechanism is such that changes in the management approach affect the organizational productivity and efficiency which increases the revenue accruable to the industry. The Total Quality Management literature, pioneered by Shewart, Deming and Juran in the 1950s, based Total Quality Management on the quest for progress and continual improvement in the areas of cost, reliability, quality, innovation, efficiency and business effectiveness. According to Bubsait
  • 38. (2007), "Total Quality Management has been an approach for continuously improving the quality of goods and services delivered through the participation of all levels and functions of the organization". Organizations have viewed Quality management as the totally integrated efforts of organizational members for gaining and sustaining competitive advantage by continuously improving every facet of organizational culture. The increased reliability, quality and efficiency leads to a simultaneous drop in cost. A reduction in cost - it being an outflow to the organization, would lead to an increase in Net profit. Another channel through which the application of quality management tends to affect Net profit is the increased revenue. To an economist, the improved efficiency in the transport industry attracts more ridership - more people would begin to use the public transport as a means to travel compared to other available modes of transport. Also the improved efficiency is very crucial as it attracts creditors into this industry. The creditors begin to offer more and cheaper financing to the transport industry. Not only would they reduce the cost of borrowing in this industry, but the improved ease of access to low cost financing encourages the transport industry to consolidate and enjoy economies of scale. However, since quality management was born and developed in the manufacturing industry, obstacles can arise if the Quality Management philosophy is not adjusted enough to put the nature of the transport industry - a service industry. According to Stanton, services are those separately identified and essentially intangible activities that provide want satisfaction and that are not necessarily tied to the sale of a product or another service. Dr Abdulaziz (2007) further emphasized by saying, "implementing quality management in the transport industry can be difficult due to the fact that quality of services cannot be defined objectively because of the higher level of external uncertainty. Another difficulty is the fact that services are intangible which makes it difficult to set standards to confirm to them and to measure them. High quality services are subject to the individual customer expectations which may be unknown or unstated, and may vary from customer to customer
  • 39. and also time to time. But the European Commission in 1999, under the 4th Framework program for Research, Technological Development and Demonstration funded an extensive research called QUATTRO that outlines the effects of Quality management, how to measure this quality, how quality management affects cost in the public transport industry and the public transport quality matrix. The project, called QUATTRO, emphasized the conventional wisdom that Quality management has a positive correlation with profitability in the transport industry. These studies also represent an advance in our understanding of the effects of the quality management on profitability. 3.2 Research design strategy This research is designed to critically investigate the impact of quality management on the profitability of the Nigerian public road transport industry. Research design provides the glue that holds the research project together. A design is used to structure the research, to show how all of the major parts of the research project — the samples or groups, measures, treatments or programs, and methods of assignment — work together to try to address the central research questions. There are various research designs but the one adopted for the purpose of this study is a cross- sectional survey. In a cross-sectional survey, data is collected at a point in time from a sample selected to describe some larger population. 3.3 Sources of data To ensure the reliability of the information resulting from the research, this research work will be based on secondary and primary data collection methods the researcher deployed the use of the two
  • 40. data types. The data used in this study was thus derived from both primary and secondary sources. 3.3.1 Primary data Primary sources are the materials on a topic upon which subsequent interpretations or studies are based, anything from first hand documents such as poems, diaries, court records, and interviews to research results generated by experiments, surveys, and so on. Primary sources are records of events as they are first described, without any interpretation or commentary. Primary data has the advantage of giving the researcher the opportunity to conduct an unbiased and extensive study on the research problem set-out to solve. For the purpose of this research, the researcher used the underlisted primary research data i. Questionnaires: A structured questionnaire was used, which contained a series of questions. A structured questionnaire has the advantage of presenting questions in sequence. It standardises the research instruments and equally removes the chances of the respondent tele-guiding the researcher. The researcher used scaled questions. ii. Observation: Observation means that the situation of interest is checked and a person or some mechanical device records the relevant facts, actions, or behaviours. Accurate data about what consumers do in certain situations is provided by observation. Observation does not tell why it happened. We intend to carry out a study to determine the impact of quality management on the profitability of the Nigerian public road transport industry. To facilitate this process, a population size of four hundred and fifty people was chosen. The distribution of the respondents was on the danfo drivers,
  • 41. their conductors, passengers and regulatory agencies like LASTMA, the Police, NURTW, etc. The questionnaires will be administered in the Ikeja, Ikorodu, Obalende, Oshodi and Yaba motor parks of Lagos based on the fact these areas are the major transport hubs of Lagos. 3.3.2 Secondary Data Secondary sources, on the other hand, offer an analysis or are statement of primary sources. They often attempt to describe or explain primary sources. Some secondary sources not only analyse primary sources, but use them to argue a contention or to persuade the reader to hold a certain opinion. A lot of materials used, especially for the theoretical framework of this study was obtained from articles, internet, journals, magazines, newspapers and textbooks. All these served as the secondary source of data. 3.4 Research instruments The instruments of research are determined in line with the nature and objective of the research. This study was designed to be facilitated using a survey format hence the use of a carefully designed and standardised questionnaire that allows respondents to answer certain collated questions. Questioning involves using a questionnaire (data collection instrument) to ask respondents questions to secure the desired information. The result of the questionnaire was combined with data collated from secondary sources as well as observations, to draw concluding inferences.
  • 42. 3.5 Research population According to Asika (1991), the population of a research study is defined as the census of all items or objects that possess the characteristic or that have the knowledge of the phenomenon being studied. The population of the study consists of the entire transport operations in Lagos. To reduce the laborious process of distributing questionnaires and conducting personal interviews with the entire population in the various institutions, a random selection of players in the Lagos public transport industry was carried out. Our sample size is drawn from this population and consists of two hundred and fifty (250) respondents. 3.5.1 Determination of sample size A sample size is defined as the subject or part of the entire population of the study from which we select a few objects (people) in the population for observation and then apply what was observed to the entire population of the study. The population of this study is a finite one. A sample size of 250 respondents was used and adequate care was taken to accommodate all categories of respondents in the analysis of data. To optimize the outcome of the research the researcher restricted the distribution of the questionnaires to aforementioned categories of people. The drivers and conductors are the ones who have more dealings with customers and are experts in the field, hence making them more experienced in developing tailored superior services to their customers. Other regulatory agencies like LASTMA, KAI, The Police, NURTW, etc. are also included in this sample because they develop and implement the policy framework that would affect the profitability of the public transport industry. Also, the customers (passengers) are also included in this research as they are the users of the public transport services.
  • 43. 3.6 Restatement of research questions The research questions will focus on the impact of quality management on the profitability of the Nigerian road transport industry and how the profitability of the industry can be improved. i. How is the present profitability level of each individual danfo measured? ii. How can the driver and conductors be motivated to deliver superior services to their passengers (customers)? iii. How can Unions and other regulatory agencies be harmonised for optimal performance and for increased profitability of the danfo drivers? iv. How can customer satisfaction be improved and superior services delivered? 3.6.1 Restatement of hypothesis : There is no correlation between how regular maintenance is done on the vehicle and the profit of the drivers. There is correlation between how regular maintenance is done on the vehicle and the profit of the drivers. HB0: There is no correlation between the amount spent on maintenance and the profit of the drivers. HB1: There is correlation between the amount spent on maintenance and the profit of the drivers. 3.7 Conduction of the field work The field work involved the administration and collection of the questionnaires. Efforts were made to avoid much use of technical terms as the questions were simple and straight forward. The
  • 44. administration of questionnaire was done in locations at Ikeja, Ikorodu, Obalende, Oshodi and Yaba in Lagos. A total of two hundred and fifty (250) copies of questionnaires were distributed. In order to obtain data from the sample respondents, Likert scale questionnaire was designed and administered among the chosen sample size. The success in the number of respondents to the administered questionnaire was ensured through the deployment of the assistance of fellow colleagues and friends who are resident in these cities. Interviews were conducted on the research topic. 3.8 Method of data analysis This involves the use of some statistical tools such as percentages, mean score and Correlation co- efficient in order to make comparison, test the hypotheses and draw conclusions. Correlation coefficient helps test the relationship between variables. 3.9 Limitation of methodology The followings, so far projected might be encountered in the conduct of the research work and these include: the rate of response rate of the respondents, the availability of data in relation to their profitability and the respondent’s literacy level. Summary The aim of this chapter would be to validate empirically our research hypothesis and gather as much
  • 45. insight into the impact of quality management on the profitability of the Nigerian road transport industry using the Lagos state danfo drivers as a case study.
  • 46. CHAPTER FOUR DATA PRESENTATION AND ANALYSIS 4.0 Introduction The findings of the research are presented as they relate to the research hypothesis. A tabular format is used to present the data, results and findings of the study with appropriate explanations. Prior to the actual administration of the questionnaire, the investigator carried out some exercise among few operators of the danfo service in order to determine whether the questions were ordered or structured in such a manner as to elicit the desired information. 4.1 Presentation of Data TABLE 4.1.1: RESPONSE RATE BY LOCATION REGION No. of Questionnaire given Properly filled Ikeja 45 38 Ikorodu 45 35 Obalende 45 39 Oshodi 45 36 Yaba 45 37 Total 225 185 From the table above, a total of 185 questionnaires were returned out of 225 questionnaires given. The questionnaires were fairly distributed around the major transport hubs of Ikeja, Ikorodu, Obalende, Oshodi and Yaba with 38, 35, 39, 36 and 37 respectively.
  • 47. TABLE 4.1.2: RESPONSE RATE BY AGE CATEGORY Age category Number Response 17 – 23 18 9.7 24 – 30 51 27.6 31 – 40 41 22.2 41 – 50 50 27.0 51 and above 25 13.5 Total 185 100.0 As could be read from the table, out of 185 respondents 18 were between the ages of 17 to 23years, 51 were between 24 and 30years, 41 were between 31 and 40years, 50 were between 41 and 50years and 25 were above 51 years representing 9.7%, 27.6%, 22.2%, 27.0% and 13.5% respectively. The labour force participation rate is highest among the broad age category of 24 to 50 which constitute 76% of the total sample. Age category 17 to 23 years constitutes 9.7% while 51 and above constitutes 13.5%. The study of age distribution enables the researcher to know the percentage that is within the various age group of the workforce. TABLE 4.1.3: DISTRIBUTION BY SEX OF RESPONDENT Variable Number Percentage Male 185 100.0 Total 185 100.0
  • 48. A total of the 185 respondents were all male. This represents the realities on ground. The danfo business is a predominantly male dominated business. TABLE 4.1.4: YEARS OF EXPERIENCE Years of Experience Number Percentage Less than 1year 38 20.5 1 – 5years 28 15.1 6 – 10 years 39 21.1 11 -15 years 39 21.1 Above 15 years 41 22.2 Total 185 100.0 Table 4.14 shows the years of experience possessed by the drivers. This is so important to this study for the fact that, the more experience you acquired the more likely you would deliver quality service. TABLE 4.1.5: HIGHEST EDUCATIONAL QUALIFICATION ATTAINED Degree Qualification Number Percentage Primary 80 43.2 JSCE 57 30.8 SSCE 42 22.7 HND/DIPLOMA 6 3.2 Total 185 100.0
  • 49. An examination of this table would reveal that 43.2% have attained a maximum of primary school qualification, 30.8% have a maximum of JSCE and 22.7 have a maximum of SSCE qualification. And 3.2% have a maximum of HND/Diploma qualification. None of the danfo operators has attained B.Sc. our Masters qualification. This is important to this study because, one’s educational qualification influences one’s exposure which determines the quality of service one could offer. And as such, the more educational qualification one has attained the better quality of management one would offer. TABLE 4.1.6: DO YOU OWN A DANFO Response Number Percentage Yes 130 70.3 No 55 29.7 Total 185 100 From the table above, 130 representing 70.3% of the operator own their danfo’s and 55% either rented theirs or leased the danfo buses they use. Of those who own their own danfo’s, 89 of them own just one Danfo, 18 own just two buses, 10 own three buses while the remaining 13 own above 4 buses. This shows how fragmented the industry as 48% of the Danfo drivers own just one danfo bus. They are thus not able to maximise the economies of scale.
  • 50. TABLE 4.1.7: SOURCE OF FINANCING Frequency Percentage PERSONAL SAVINGS 100 54.1 LOAN FROM RELATIVES 31 16.8 LEASED THE DANFO 54 29.2 Total 185 100.0 From the table above, 54.1% of the danfo drivers use their personal savings to operate their danfo, 16.8% get their financing from relatives and loved ones. The other 29.2% get their financing from some other form of informal financing – retirees, loan sharks, etc. Despite the fact that 76.8% of the Danfo drivers are open to loan from commercial banks (Table: 4.16 ), Commercial banks provide 0% financing to the danfo service possibly because of the perceived risk. TABLE 4.1.8: HOW MANY DAYS OF THE WEEK DO YOU WORK Frequency Percentage 5 DAYS 44 23.8 6 DAYS 112 60.5 7 DAYS 21 11.4 Invalid 8 4.3 Total 185 100.0
  • 51. From the table above, 60.5% of the danfo drivers operate for 6-days out of a possible. This is very important as it is a fact that the more work hours, the higher the chances of fatique setting in and the lower the quality of service that could be delivered. TABLE 4.1.9: HOW LONG DO YOU WORK EVERY DAY Duration Frequency Percentage BELOW 8 HOURS 13 7.0 8 -10 HOURS 42 22.7 10 - 12 HOURS 83 44.9 ABOVE 12 HOURS 47 25.4 Total 185 100.0 From the Table above, 60.5% of the danfo drivers work for six times a week resting mostly on Sundays. 23.8% of them work for five days in a week and 11.4% work 7 Days in a week. The median hours of operation are 10 – 12 hours as 44.9% of the drivers affirmed to this. This is important because we now that the longer a person works, the more fatigue sets and his frustration begins to rise. He thus becomes unable to deliver appropriate quality service to his customers.
  • 52. TABLE 4.1.11: WHAT IS YOUR BUSIEST TIME OF THE DAY? The busiest time of the day is between the hours of 6a.m. and 9a.m. and between the hours of 6p.m. and 9p.m. in the evening. These hours represent rush hours when workers and students are going and returning from their areas of work and schooling respectively. During this peak period, pressure is on the danfo drivers to deliver quality service. Frequency Percentage 6AM - 9AM 98 53.0 9AM - 12NOON 12 6.5 12NOON - 3PM 10 5.4 3PM - 6PM 9 4.9 6PM - 9PM 56 30.3 Total 185 100.0
  • 53. TABLE 4.1.12: WHAT DO PASSENGERS USUALLY DEMAND FOR Frequency Percentage CHEAPER TRANSPORT FARES 39 21.1 COMFORT 12 6.5 TIMELINESS 100 54.1 SAFETY AND SECURITY 34 18.4 Total 185 100.0 According to the drivers, 54.1% of their passengers demand that the driver arrives to their point of destination on time; 21.1% of their passengers demand for cheaper transport fares; 18.4% are more concerned about their safety; and just 6.5% demand for an improvement in the comfortability of the danfos. Knowing what passengers demand for is very important as it would enable the researcher develop an effective quality management framework that would be relevant to the industry. TABLE 4.1.13: DO YOU HAVE A SPECIFIC CONDUCTOR Frequency Percentage YES 111 60.0 NO 74 40.0 Total 185 100.0
  • 54. From the table above, 40% of the drivers attested to the fact that they do not have a permanent conductor. A high labour turnover of this magnitude limits their ability to consistently deliver quality service to their passengers. Frequent changing of passengers would require continuous enlightenment and this would hinder the danfo service from delivering superior quality service. TABLE 4.1.14: HOW LONG HAVE YOU BEEN WITH THIS CONDUCTOR Frequency Percentage LESS THAN 2 WEEKS 33 17.8 2 WEEKS - 2 MONTHS 32 17.3 2 MONTHS - 6 MONTHS 46 24.9 6 MONTHS - 1 YEAR 33 17.8 OVER 1 YEAR 41 22.2 Total 185 100.0 From the table above, 60% of the drivers attested to the fact that they have spent less than 6 months with their conductors. This high labour turnover doesn’t encourage the delivery of quality service to the customer.
  • 55. TABLE 4.1.15: HOW MUCH FUEL DO YOU BUY EVERYDAY Cost Frequency Percentage N751 - N1,500 12 6.5 N1,501 - N2,300 30 16.2 N2,301 - N3,000 115 62.2 ABOVE N3,000 16 8.6 Total 185 100.0 From the table above, the median expenses spent on fuel lies between N2,301 – N3,000. As fuel is a major operational cost, a spike in the cost of fuel would lead to higher transport fares or the reduction in the already low maintenance culture of the drivers. TABLE 4.1.16: HOW MUCH DO YOU MAKE EVERYDAY AFTER EXPENSES Frequency Percentage LESS THAN N2,000 10 5.4 N2,001 - N4,000 63 34.1 N4,001 - N6,000 94 50.8 N6,001 - N8,000 18 9.7 Total 185 100.0
  • 56. This table is very important as it shows the average daily profit of the danfo drivers. It can be seen that 34.1% of them make between N2,000 and N4,000 profit. While 50.8% of them make between N4,001 and N6,000. This table is also important as it will also help us test our hypothesis. TABLE 4.1.17: WOULD YOU ACCEPT A LOAN TO EXPAND YOUR DANFO BUSINESS Frequency Percentage YES 142 76.8 NO 36 19.5 INVALID 7 3.8 Total 185 100.0 From the table above, 76.8% of the danfo drivers are open to accept a loan from financial institutions to invest into and expand their business. Lack of funds could also be a factor that hinders their capacity to deliver quality management.
  • 57. TABLE 4.1.18: HOW OFTEN DO YOU DO MAINTENANCE Duration Frequency Percentage WEEKLY 15 8.1 MONTHLY 66 35.7 WHEN THE PERFORMANCE OF THE VEHICLE DROPS 89 48.1 RARELY 15 8.1 Total 185 100.0 The maintenance culture among danfo drivers is poor. This is because 48.1% of the danfo drivers only report going for maintenance only when their bus performance drops. Effective quality management requires that maintenance be done on a regular basis and not once in a while. TABLE 4.1.19: ON AVERAGE HOW MUCH DO YOU SPEND ON THE MAINTENANCE OF THE BUS Frequency Percentage LESS THAN N2,000 8 4.3 N2,000 - N5,000 58 31.4 N5,001 - N10,000 98 53.0 ABOVE N10,000 21 11.4 Total 185 100.0
  • 58. From the table above, 53.0% of the drivers spend between N5,000-N10,000 on maintenance. While 31.4% spend between N2,000 and N5,000 on maintenance. TABLE 4.1.20: WHICH UNION DO YOU BELONG TO? Frequency Percentage NURTW 89 48.1 RTEAN 55 29.7 NONE 41 22.2 Total 185 100.0 NURTW happens to be the union with the largest membership strength with 48.1% of the drivers, while RTEAN is second with 29.7%. 22.2% belonged to no union at all. With 77.8% of the drivers unionised, the concept of quality management would be more accepted with the involvement of the unions.
  • 59. TABLE 4.1.21: WHO GIVES YOU THE MOST WORRY Frequency Percentage AGBERO'S 66 35.7 LASTMA/VIO 75 40.5 NURTW/NARTO/RTEAN 17 9.2 POLICE 27 14.6 Total 185 100.0 LASTMA/VIO, Agberos, police and the union, in this order, happened to give the danfos more worry as they exhibit 40.5%, 35.7%, 14.6% and 9.2% of the survey report. TABLE 4.1.22: HOW OFTEN HAVE YOU BEEN HARRASSED BY THE POLICE/LASTMA/VIO Frequency Percentage DAILY 87 47.0 WEEKLY 47 25.4 MONTHLY 26 14.1 RARELY 25 13.5 Total 185 100.0
  • 60. From the table above, the danfo drivers are on a regular basis harassed by the Police, Lastma or VIO. This frequent harassment causes a strain on the danfo drivers ability to deliver quality service. TABLE 4.1.23: HOW MUCH DO YOU HAVE TO PAY TO THE POLICE TO LET YOU GO Frequency Percentage LESS THAN N50 62 33.5 N51 - N100 77 41.6 N101 - N200 20 10.8 ABOVE N200 26 14.1 Total 185 100.0 To get themselves free from Police harassment, 41.6% attested to the fact that they pay between N51 and N100; 33.6% pay between N0 and N50, 10.8% pay between N101 and N200 while 14.1% claim to pay above N200.
  • 61. TABLE 4.1.24: HOW MUCH DO YOU HAVE TO PAY TO LASTMA/VIO TO LET YOU GO Frequency Percentage LESS THAN N2,000 8 4.3 N2,001 - N5,000 24 13.0 N5,001 - N10,000 114 61.6 N10,001 - N20,000 36 19.5 ABOVE N20,000 3 1.6 Total 185 100.0 From the table above, 61.6% of the danfo drivers pay between N5,000 and N10,000 to get themselves free from the clutches of lastma or VIO, 19.5% pay N10,000 and N20,000, 13.0% pay between N2,000 and N5,000; 4.3% pay less than N2,000 and just 1.6% pay above N20,000. 4.20: Test for hypothesis This section presents the test of the hypothesis formulated for the study using Spearman’s correlation statistical tool which is shown in Table 4.30
  • 62. Table 4.20: Correlations PROFIT MAINTENANCE EXPENSE ON MAINTENANCE WORK TIME PROFIT 1.000 .745** .730** .165 MAINTENANCE .745** 1.000 .574** .120 EXPENSE ON MAINTENANCE .730** .574** 1.000 .107 WORK TIME .165 .120 .107 1.000 **. Correlation is significant at the 0.05 level (2-tailed). Hypothesis 1: : There is no correlation between how regular maintenance is done on the vehicle and the profit of the drivers. There is correlation between how regular maintenance is done on the vehicle and the profit of the drivers. From the Table 4.4 when profit (daily take home by the danfo drivers) was correlated against maintenance visits, the coefficient was 0.745. This shows that there is a high relationship between the daily take home (profit) of the drivers and how regular maintenance was done on the danfo because correlation coefficient is closer to one (1). Thus, is rejected at the 0.05 level of significance because the SPSS flagged the result with two stars (**) indicating that correlation is significant at the 0.05 level (2-tailed).
  • 63. Hypothesis II HB0: There is no correlation between the amount spent on maintenance and the profit of the drivers. HB1 There is correlation between the amount spent on maintenance and the profit of the drivers. From Table 4.4, when the expenses were tested with the profit of the danfo drivers, the coefficient of correlation was 0.730(**). This shows that there is high relationship between the amount spent on maintenance and profit levels because the coefficient of correlation is closer to one (1). Thus, 𝐻 𝐵0 is rejected at 0.05 level of significance because the SPSS output flagged the result with two stars (**) indicating that correlation is significant at the 0.05level (2-tailed). In order to test this hypothesis, question seven in the questionnaire solicited to know what the respondents felt about good incentive and achievement in relation to their needs, want and desire.
  • 64. CHAPTER FIVE SUMMARY, CONCLUSION AND RECOMMENDATION 5.0 Summary of Findings There is no doubt that this study has proved the impact of quality management on mass transportation in Nigeria. This has been achieved by actually interacting with the danfo drivers who are the subject matter of this research. Among some of the findings made from the study are: 5.0.1 Operational Problems Firstly, the operational problems which were related to bad roads and lack of garages does not encourage profitability and effective transportation business because these operational problems add to maintenance cost of the vehicles and shorten the life span of the vehicles thereby making business susceptible to failure. And problem of getting genuine spare parts make it difficult to operate effectively. 5.0.2 Fragmentation of the Industry Since the organised mass transport industry is highly fragmented. It does not benefit from economies of scale and efficiency as a result of specialisation. With every owner of a danfo business also being his driver, his mechanic, his administrative staff, etc., he thus doesn’t maximise profit accruable. 5.0.3 Literacy Level The low literacy level of the danfo drivers is also a hindering factor. Many of them are not able to speak “standard English”, choosing instead to communicate in their local dialect or pidgin. This thus hampers how effective they would be in communicating with their customers. 5.0.4 Union Activities The persistant taxation and toll taking by the unions, agberos and touts has been a strain on the profitability of the danfo drivers. Having to always contend with paying these levies or see one part of their vehicles damaged forces them to pay. They are even more angered since these unions, agberos or touts aren’t helping them to solve their operational problems, but more interested in lining their own pockets. 5.0.5 Activities of Police/VIO/LASTMA
  • 65. These government agencies have virtually started living off the mass transport industry. They make laws that would always make the danfo drivers at their mercy so that they could charge him a fine. Some even believe that collecting bribe is their birth right and have been known to shoot at any slightest provocation. The activities of the Police, LASTMA and VIO have thus hindered the profitability of the mass transport industry. 5.1 Conclusion Having gone this far on mass transportation in Nigeria, it is considered an understatement to observe that mass transportation has become an integral part of the Nigerian economic system. Thus, the effective management of the mass transportation industry is essential for Economic build up, or excellence. The increasing awareness of the business prospect having dawn on prospective transportation operators and the need for positive orientation along this line is in no doubt putting transportation in the fore-front of the economic reconstruction. The role of effective transportation therefore cannot be over-emphasised or over-looked in an economy. 5.2 Recommendations Giving the rightful backing, by government and investors, over hauling the whole transportation system of the country will go a long way in helping the business to grow. This should include the construction of all season road network across the country’s landscape as every dollar spent on transportation contributes to the overall GDP.  The public transport operators should be made to consolidate and organise themselves into corporations.  The activities of the Unions, Agberos and touts should be curtailed and overtime restrained as they have no positive contribution to the industry.  The Police, VIO and LASTMA should stick to their traditional functions of maintaining law and order and not revenue generation.  Parties involved (Government, Drivers and Unions) should promote the best possible service to public transport customers in urban areas by applying adapted quality management
  • 66. practices and procedures, so as to optimise the use of physical and financial resources in a market driven environment  Transform the public transport experience from “an obstacle course” to a “seamless journey”, which means proposing a door to door service to the users;  Use quality and quality management to attract customers by offering services which compete with the private car;  Develop a customer-orientated approach. Think “Customer”, “Customer”, and “Customer”  Drivers should consider their activity as more than a business: the impact of passenger transport activities on the local community and on the quality of life must be taken into consideration in urban public transport strategies, objectives and priorities  That the people who ultimately influence service quality in public transport are the bus driver, the traffic warden, the person in charge of complaints or vehicle maintenance. Their working conditions will influence directly their willingness and capacity to provide good service. Listening to the staff, communicating with them on their working conditions, on the firm’s traffic management strategy, on the results of their work and on the practical consequences for them of the management’s decisions is therefore essential.
  • 67. QUESTIONNAIRE FORM INSTRUCTION: Please tick the most appropriate option as provided below. PART A BIO - DATA 1) Sex: Male ( ) Female ( ) 2) Marital Status: Single ( ) Married ( ) 3) Age: 17 – 23 ( ) 24 – 30 ( ) 31 – 40 ( ) 41 – 50 ( ) 51 and above ( ) 4) Education qualification; Primary ( ) JSCE ( ) SSCE ( ) Diploma ( ) HND/B.Sc. ( ) M.Sc. ( ) 5) Do you own a Danfo bus: Yes ( ) No ( ) 6) Do you have a Driver’s license? Yes ( ) No ( ) 7) How did you get the money to purchase this danfo: Personal savings ( ) Loan from relatives ( ) Loan from Microfinance banks ( ) Loan from banks ( ) Rented the danfo ( ) 8) Indicate your years of experience in the Danfo industry: Less than 1year ( ) 1 – 5 years ( ) 6 – 10 years ( ) 11 – 15years ( ) Above 15 years ( )
  • 68. 9) How many Danfo’s do you own: 0 ( ) 1 ( ) 2 ( ) 3( ) 4 and above ( ) PART B – Work specific 10) How many days of the week do you work: 5days ( ) 6 days ( ) 7 days ( ) 11) How long do you work every day: Below 8hrs ( ) 8 – 10 hrs ( ) 10 – 12 hrs ( ) Above 12hrs ( ) 12) After work, how do you relax: Beer parlor ( ) Watch a match ( ) At Home ( ) Visit a girlfriend ( ) 13) How much money do you charge per journey: less than N50 ( ) N51 – N100 ( ) N101 – N150 ( ) N151 – N200 ( ) Above N200 ( ) 14) What time of the day is the MOST profitable: 6am - 9am ( ) 9am – 12noon ( ) 12noon – 3pm ( ) 3pm – 6pm ( ) 6pm – 9pm ( ) 15) What time of the day is the LEAST profitable: 6am - 9am ( ) 9am – 12noon ( ) 12noon – 3pm ( ) 3pm – 6pm ( ) 6pm – 9pm ( ) 16) What do passengers usually demand for: Cheaper transport fares ( ) comfort ( ) Timeliness ( )
  • 69. Safety and security ( ) 17) Do you have a specific conductor: Yes ( ) No ( ) 18) How long have you been with this conductor: less than 2 weeks ( ) 2weeks – 2 months ( ) 2months – 6 months ( ) 6months – 1 year ( ) Over 1 year ( ). 19) How many conductors have you had in the past 2years: less than 2 ( ) 3 – 4 ( ) 5 – 6 ( ) Above 7 ( ) 20) How much money do you pay your conductor daily: less than N200 ( ) N201 – N500 ( ) N501 – N1000 ( ) N1,001 – N2,000( ) Above N2,000 ( ) 21) Is it cheaper to work without conductor: Yes ( ) No ( ) 22) If yes, why is it cheaper to work without conductror: Theft ( ) Wage ( ) PART C – Industry specific 23) How much fuel do you buy everyday: Less than N750 ( ) N751 – N1,500 ( ) N1,501 – N2,300 ( ) N2,301 – N3,000 ( ) Above N3,000 ( ) 24) How much do you make every day: less than N2000 ( ) N2,001 – N4,000 ( ) N4,001 – N6,000 ( ) N6,001 – N8,000 ( ) Above N8,000 ( )
  • 70. 25) Would you accept a loan to expand your Danfo business: Yes ( ) No ( ) 26) How often do you visit the mechanic: Weekly ( ) Monthly ( ) Only when the car develops fault ( ) Rarely ( ) 27) On average how much do you spend on the maintenance of the bus: Less than N2,000 ( ) N2,000 – N5,000 ( ) N5,001 – N10,000 ( ) Above N10,000 ( ) 28) Which Union do you belong to: NURTW ( ) RTEAN ( ) NARTO ( ) None ( ) 29) How do you pay your Union dues: Per journey ( ) Daily ( ) Weekly ( ) Monthly ( ) Yearly ( ) 30) How much do you pay daily to the Unions: N500 – N1,000 ( ) N1,001 – N1,500 ( ) N1,501 – N2,000 ( ) Above N2,000 ( ) 31) Who gives you the most worry: Agbero’s ( ) LASTMA/VIO ( ) NURTW/NARTO/RTEAN ( ) Police ( ) 32) How often have you been harassed by the Police/LASTMA: Daily ( ) Weekly ( ) Monthly ( ) Rarely ( ) 33) How much do you have to pay for the Police to let you go: Less than N50( ) N51 – N100 ( ) N101 – N 200 ( ) Above N200 ( )
  • 71. 34) How much do you have to pay for LASTMA/VIO to let you go: Less than N2,000( ) N2,001 – N5,000 ( ) N5,001 – N 10,000 ( ) N10,001 – N20,000 ( ) Above N20,000 ( ) 34) What is the biggest challenge facing you in this industry: Passengers ( ) Agberos/Touts ( ) LASTMA/VIO ( ) Police ( ) Fellow drivers ( ) PART D – Person specific 35) How many children do you have: 2 and below ( ) 3 – 5 ( ) 6 – 8 ( ) 9 and above ( ) 36) How many Girlfriends/ wives do you have: 1( ) 2 – 3 ( ) 4 – 5 ( ) 6 – 7 ( ) Above 8 ( )
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