Ather Ayub - Employee Participation

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ICQI2000

Pakistans Sixth International Convention on

Quality Improvement

November 14-15, 2000, at Lahore

Employee Participationand Kaizen Activitiesin Packages Limited

MUHAMMAD ATHER AYUB KHAN

QUALITY & ENVIRONMENT SYSTEMS MANAGER

AYESHA AZIZ

QUALITY & ENVIRONMENT SYSTEMS ENGINEER

PACKAGES LIMITEDP.O. AMER SIDHU SHAHRAH-E-ROOMI

LAHORE - PAKISTAN


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EMPLOYEE PARTICIPATION ACTIVITIESAT PACKAGES LIMITED

by

Muhammad Ather Ayub KhanQuality & Environment Systems Manager

Ayesha Aziz

Quality & Environment Systems Engineer

Packages Limited

PACKAGES LIMITED, A BRIEF INTRODUCTION

Packages Limited was established in 1957 as a joint venture between the Ali groupof Pakistan and Akerlund & Rausing of Sweden.

Over the years, the Company continued to enhance its facilities to meet the growingdemand of packaging products. Additional capital was raised from sponsors,

International Finance Corporation and from the public in 1965.

As a first step, Packages commissioned its own paper mill in 1968 having productioncapacity of 24,000 tonnes of paper & paper board based on waste paper andagricultural waste i.e. wheat straw and kahi grass. As the demand continued to grow, it

led the Company to expand and by the middle of 1996 its annual capacity wasincreased to 65,000 tonnes of paper & paperboard and corresponding converting ability.

Since 1982, Packages Limited has a joint venture in Tetra Pak Pakistan Limited withTetra Pak International to manufacture paper for liquid food packaging and to sell Tetra

Pak packaging equipment.

In 1993, a joint venture agreement was signed with Mitsubishi Corporation of Japanfor the manufacture of polypropylene films at the Industrial Estate in Hattar, NWFP. Thisproject, Tri-pack Films Limited, commenced production in June 1995 with equity

participation by Packages Limited, Mitsubishi Corporation, Altawfeek Company forInvestment Funds, Saudi Arabia and General Public.

In July 1994, Coates Lorilleux Pakistan Limited, in which Packages Limited has 55%ownership, commenced production and sale of printing inks.

Packages has completed the process of implementing a Rs.2.7 billion balancing,

modernization, replacement and expansion programme in 1997. The programme is inline with the Companys strategy of minimizing capacity constraints on existingequipment, improving quality to meet local and foreign competition and improving its

environmental protection facilities


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Packages has two functions, firstly it should ensure that consumer receives goods in

as perfect a condition as possible i.e. by reducing spoilage, preventing damage duringtransportation and minimizing chances of adulteration. Secondly, surface of thepackage should act as a salesman.

In Packages, 95% of the total paper & board used is produced in its own Paper Mill.Main raw materials used are wheat straw, river grasses and waste paper, which are allavailable locally.

Corrugated cartons for shipping consumer products from the manufacturer to retail

outlets, are also produced by us.

Standard products like paper cups for ice cream & soft drinks, tissue paper bothfacial & toilet, paper napkins etc. are also manufactured and marketed under the brandname of Rose Petal.

PACKAGES A FAMILY

Packages hires people fresh from schools, colleges and university who form the

culture of the company in the long run. 99 percent of the people working here have thisas their first job. These fresh people are trained accordingly and as a result ourcompanys culture gives the feeling of a family.

Training and Development Policy of Packages Limited

The objective of this policy is:

1. To identify the training and development needs of the companys employees

2. To arrange for the right training for the right employee thus ensuring maximumbenefit from the training

3. To ensure continuous learning through focus on the job training and development4. To maintain proper records and accounts for the training imparted

5. To conduct post training evaluation where relevant

Whats the companys mission behind training and development?

The mission of all training and development at Packages Limited is not only to

inform, but also to transform the concerned employee thus resulting in a more motivatedand therefore more productive employee who ensures that the company produces

quality products and the customers are delighted.

Training Procedure

The training procedure starts with the identification of training and development

needs which is done collectively by the concerned employee and his/her manager. Thisis done once every year, normally at the beginning of the year. Based upon this, theHRD manager devises training plan for executives which incorporates as much as

possible the needs of the individual executives as identified earlier. The executives arethen nominated for training programs and are provided the relevant training.


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Kaizen is a Management System Well Matched with Time

Traditionally, employees, in particular first line workers, are not expected toparticipate in improvement activities because of the strictly defined job demarcation; thelines drawn between different jobs. Employees are forbidden to cross the lines to work

as a team. Today, people are more educated and potentially capable of doing a variety

of things than before. Any employee is consciously interested in getting involved inmore varied ranges of jobs (job-enlargement) and in more specialized professionalfields (job-enrichment), so that the employee will feel satisfied at work.

EMPOWERMENT

In the conventional management system, workers and employees are to workexactly as they are instructed in narrowly restricted job areas. Strict inspection andsupervision are necessary to ensure the conformance to all standards. Employees are

not expected to go beyond the job description and to improve their job. They areprohibited to do so. Worse than that, they are not trained at all.

In order to destroy the conventional management system, there are at least twothings that management should keep in mind. First is to empower the employees: giving

maximum delegation of power to workers so that they can participate in problem-solvingactivities. Second, is to show them how to identify and solve problems.

MANAGEMENT COMMITMENT

Management should make themselves visible on the shop floor, so that people cansee their management is actually committed to supporting the KAIZEN process. It is

management, not employees that change the corporate culture in the first place.

OWNERSHIP

The work place is not considered to be a pleasant place by many people. Ownership

plays an important role to make employees feel their work place comfortable. As manybehavioral science experiments explain, the more pleasant and comfortable theworkplace is, the higher the productivity the employees give.

RECOGNITION

Recognition is one of the most powerful mental impetus to make people moveforward. People want to be recognized by people. Prizes, plaques, certificates,

ceremonies, and newsletters are designed and used by management in manycompanies to recognize people for their outstanding efforts and contributions.

There are usually two types of recognition: money (reward) and personal recognition(award). Usually, the latter has a more long lasting effect.

Here is something to think about; what is the manager responsible for, and why is he

employed, for his specialized knowledge or skills? One of the most importantrequirements for managers is the ability to let people work, not make people work, on acontinuous basis. People are prone to getting tired of the same type of stimuli, so

management should change and improve the ways of recognition on an ongoing basis.


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THE CONCEPT OF UPSTREAM AND DOWNSTREAM IN A COMPANY

It is very important to understand the concept of upstream and downstream in acompany, as the upstream line or the production/raw material supplier transfers good or

bad quality product onwards. The upstream should be held most responsible for the

product quality, because if there is a problem in the product quality from the upstream ithas a possibility to be transferred through the conversion and stores, which is themiddle stream, to the customers, which is the downstream. The following flow diagramwill explain the concept clearly.

Figure 1

QC CIRCLES OR QUALITY IMPROVEMENT TEAMS

QC Circles are small groups consisting of first line employees who continually

control and improve the quality of their work, products and services. These small groupsoperate autonomously, utilize quality control concepts and techniques and other

improvement tools, tap members creativity and promote self and mutual development.

QC Circle activities aim to develop members capabilities and approach self-

actualization, make the work place more pleasant, vital and satisfying, improvecustomer satisfaction and contribute to society.

Executives and managers ensure that QC Circle activities contribute to improvingthe health of the enterprise by treating QC Circle activities as an important part of

employee development and workplace vitalization, personally practicing company wideimprovement activities such as TQM and providing guidance and support or total

participation while respecting the humanity of all employees.

Basic principles of QC circle activities

Fully reveal human capabilities and eventually draw out infinite possibilities

Respect humanity and build a pleasant, vital and satisfying workplace

Contribute to the improvement and development of the enterprise

KAIZEN / EMPOWERMENT ACTIVITIES IN PACKAGES

KAIZEN activities started here in Packages in 1996. Brainstorming with concerned

personnel and department heads resulted in the formation of its first qualityimprovement team named Al-Badr, in August 1999. Till date, more than a hundred

members in 14 teams have been involved in improving their performance and job

UpstreamMiddle Stream Down Stream

Production Conversion Stores Sales


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environments. A team of facilitators led by the Quality and Environment SystemsEngineer supports the teams.

Out of 14, five teams are formed in Carton Line, three in our Tissue ManufactureDivision, two in Flexible Line, two in Consumer Products Division (CPD) and one team

in Corrugated Cartons Division. Each team holds its own weekly meeting in one of our

boardrooms, and library if required, and decides on the action plan for the week,discusses the problems faced by the team on the floor and suggests solutions. Ourteam of facilitators is always there to provide guidance and help when and where theyrequire.

Hurdles and Obstacles

Even though KAIZEN is basically fairly simple to practice, there were a number ofobstacles to be overcome before the method could be implemented. It was a completely

new approach for all of us. Although it might seem very simple now, but when westarted, it was not so easy. The most difficult part was to convince people to change. No

one wants to change himself/herself. Everyone had vague ideas about KAIZEN; mostpeople thought that they would lose their control over their subordinates, becauseKAIZEN empowers the employees.

Some people thought it to be extra workload on their subordinates and that these

people might not be able to perform their regular duties as well as they used to do.Some people thought that this new concept might mislead the workers into thinking thatthey know everything and no one else knows it better.

As a step further, our General Manager, Mr. Rafi Iqbal Ahmed, arranged for the

production managers of all divisions at Packages to visit the Hasanabdal factory of KSBpumps, where this system is already in operation, to observe how they function withteams there, and then implement it here in Packages. We are extremely thankful to their

Technical Director, Mr. Pervaiz Iqbal Mughal for his help and cooperation with us on thisvisit. We still keep in touch with them in this regard.

We had to go through stressful meetings with department heads in some areas justto convince them to form teams. There was a time when it seemed like mission

impossible, people told us to quit the idea of Quality Improvement Teams. It was ourquality objective for almost three years, and it didnt seem to work out. This was the

FORMING stage.

When the teams were formed, the most difficult part of the journey began

convincing the team members and motivating them to do it. They were not ready for it;they were frustrated with the thought of having an extra duty to perform along with what

they were doing for so many years. They had to take time out of their schedules toattend the team meetings; they had to read what they were taught in the trainingsessions.

Usually the first line workers are not encouraged to use their own mind to solve

every day problems at the work place, they are used to following instructions from the incharge. It was very difficult to make them think on their own and develop the habit of notlooking up to someone for every little thing, and at the same time not forgetting that their

superiors are there to guide them, but when the problem is out of their own scope. The


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team members had to start from scratch, they had to learn how to organize meetings,discuss problems in a constructive manner, prepare checklists and analyze the data

collected over time.

Initially people were disinterested, irregular and angry with us for increasing their

workload. This was the STORMING stage of these teams. After a few meetings, they

began realizing that this was not extra work, but exactly in line with what they arealready doing and in a much better way than ever before. They appreciated the trainingbeing given to them and applied all the tools on their work. The attendance of themeetings improved and the general attitude towards this concept improved as well. This

was the NORMING stage of the teams.

These teams were given training on the tools of Statistical Quality Control by theirfacilitators. A seven-step module for problem solving was taught to these teams beforethey started working. The seven steps of the module are:

Theme selection

Collection and analysis of data

Identification of root cause of the problem Finding and implementation of the solution

Confirmation of results

Standardization of the solution

Reflect on the process

After this training session, these teams are required to fill out animplementation/activity plan, roughly giving an estimate of the time required forcompleting each step in weeks. Normally it should be about 12 to 24 weeks (3 to 6

months). Only then these teams are registered as Quality Improvement Teams.

Over the period of eleven months the teams have shown tremendous improvementin the workplace atmosphere and the work methods. Our teams have put up theirplacards on their machines showing their themes and their progress. It is a very

encouraging sight to see these people working together with a totally different attitudetowards workplace problems. The KAIZEN philosophy should not be judged only byshort-term results. The idea of continuous improvement should take root and become

part of the general attitude towards work.

To bring these activities in the spotlight, the first Quality Improvement TeamsConference was held in March 2000, in which all the teams gave their presentations tothe management. This was the PERFORMING stage. It was the first time ever, that the

first line employees gave presentations of their work to the higher management. Ourfirst Quality Improvement Teams Conference boosted the morale of the teams and

encouraged other people to form this type of teams. People started coming to us ontheir own initiative and offered to make new teams.

THE PATH TO SUCCESS

Although only one of the teams have yet completed seven steps, but all the othersare heading in the right direction. One group in CPD has completed their project. Thetheme of this team was to control the waste of their machine. To solve this problem they

segregated and collected all the waste in different boxes. At the end of the shift they

weighed that waste and recorded the data in a check sheet. After two months they


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analyzed the data using a Pareto chart, showing the main cause of waste. They held ameeting with the concerned people and devised a solution for the problem. The current

data from this particular department shows that they have reduced their wastepercentage from 5.58 to 1.34, which is a remarkable difference. This team has beenable to save Rs. 196748 and they are expected to save Rs. 590244 annually. Similarly

some of the other teams have been able to project cumulative savings for a year

amounting to Rs. 10,568,617. The costing department and the department heads verifythese projections; therefore, these are realistic figures. Although, we have decided tomonitor these figures for at least one year and then decide upon their validity. Table 1shows the details of the projections made by seven of the teams. The rest of the teams

are still in the process of calculating their projections, therefore, the data is not availableright now.

Table 1: Projected savings by Quality Improvement Teams at Packages Limited

Team ThemeAchieved

SavingsProjected Savings

for one year

Commando Reduce Steam Consumption 575,400 1,380,960

Fighter Reduce Water Consumption 18,200 43,680

Inquilab Reduce Waste 196,748 590,244

Progressive Reduce Downtime 682,722 1,638,533

Challenger Reduce Paper Breakage 0 2,400,000

Shaheen Segregation of waste sheets 294,000 504,000

Al-Badr Segregation of waste sheets 294,000 500,000

Hamza Improvement in water base quality 418,000 3,511,200

Total 2,479,070 10,568,617

A very interesting point here is that the level of education in most members of theseteams is of high school only, aged approximately from 19 to 55, and all of them are first

line workers. Lack of high education was not a hurdle in the path of continuousimprovement here. What we learned here is that proper training, encouragement and

support from us as the management, could bring out the best in these people ofdifferent kinds, improving their relationships mutually and with the workplace, which hascreated a big difference in the workplace environment.

The current status of our 14 Quality Improvement Teams is given in Table 2.

Table 2: Current Status of Quality Improvement Teams at Packages Limited

Sr# Team Formed on Meetings Stage

1 Al-Badr 28/8/99 42Step # 5

Confirm the Results

2 Shaheen 28/9/99 38Step # 4

Plan and Implement Solution

3 Hamza 12/2/2000 21 Step # 4


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Plan and Implement Solution

4 Tipu 18/2/2000 15Step # 3

Identification of Root Cause

5 UNIQUE 9/6/2000 3Step #2

Data Collection

6 Performers 23/11/99 30Step # 4

Plan and Implement Solution7 Youth 26/11/99 31 Step # 6

Standardize the Solution

8 Progressive 19/1/2000 24Step #6


9 Inquilab 26/10/99 27Step # 7

Reflect on the Process

10 Commando 24/11/99 9Step # 6


11 Fighter 10/11/99 9Step # 6


12 Star 3/11/ 99 10 Step # 4Plan and Implement Solution

13 Challenger 8/6/2000 6Step # 2

Data Collection

14 Al-Jahad 30/6/2000 3Step # 2

Data Collection

On our way towards the path of continuous improvement, we were able to invite aJapanese expert on Quality Improvement Teams from APO to help us with our work,

make suggestions for improvement, and train our facilitators. During his stay with us fortwo weeks, he worked with us on the floor and with the teams.

As a result of the team activities in full boom, our 2ndQuality Improvement TeamsConference was held on June 21st 2000, in which the teams that have been able to

show considerable improvement in their projects gave their presentations. At the end,all the teams were given certificates of participation and the group that has completed

the seven steps was presented with the award for best team performance. After thesuccess of our previous two events, we are planning to hold this conference twice everyyear.

The abilities and potential in the first line workers should not be underestimated and

they should be given full support to create positive changes in the organization. After all,

growth of the employees is the growth of the company in the long run. It is veryimportant that the entire management should stand behind the idea and allow the team

members the necessary scope for their activities. This makes it easier to implement themethod when the employees can see that the Boss is backing this wholeheartedly.

REFERENCES:

Yoshida, Shuichi. KAIZEN thinking and KAIZEN Technology

The Team Handbook

Tanigawa, Koji. The basic idea of QC Circle activities and their promotion

Documents

Ather Ayub - Employee Participation